Starting from humble beginnings in 2004, Shirin Shahsavand successfully built a mid-sized business assembling small electronic components in Cincinnati, Ohio. Her company, National Assembly Services, gained a reputation among those manufacturers that outsourced to her as a fast, reliable, and flexible assembler. But in 2020, the economy was changing, and so too were the expectations placed upon her firm. Quicker turnaround, faster delivery, and lower costs were all in demand. Competition was fierce, and National found itself with diminishing market share and revenues, along with increasing costs. In order to save the company, Shirin and her management team were forced to make some difficult decisions. It was clear to Shirin that she could operate from a somewhat distant location because her customers are spread all over the southern U.S. Cincinnati was becoming too expensive: Facility and overhead costs were high, as were wages in the immediate area. Thus, the hunt began for a new location, and contact was made with the economic development offices in certain targeted cities throughout the South in order to ascertain the types of incentives that might be available. Ultimately, National Assembly Services decided upon Hattiesburg, Mississippi. Hattiesburg offered the firm property tax breaks for 5 years, reductions in utility costs, financial support for training costs when hiring residents, and other considerations including minor relief for moving expenses. In addition, the new facility costs would be substantially less in Hattiesburg versus Cincinnati, as would be the wage rate for comparable work. Overall, the reduction in both capital and operating costs plus the municipal incentives contributed to making the decision to move to Hattiesburg justifiable. On July 20, 2021, Shirin advised her staff of the decision. She provided each of them the following letter: To: Employees of National Assembly Services From: Shirin Shahsavand, President Thank you for your dedication and service over the years. I sincerely appreciate your hard work and loyalty. It is with regret that I announce that National Assembly Services will discontinue operations at the Cincinnati location after November 1, 2021. Reduced revenues coupled with increased costs and unreasonable demands on the part of the union have forced us to make this decision. I extend to you best wishes for your future endeavors.

Discussion Questions
1. What are the ethical implications of such municipal incentives?
2. What are the challenges in relocating National’s senior management team to a small town such as Hattiesburg as opposed to staying in Cincinnati (a much larger city)?
3. Assess the notification made by Shirin to her employees. Are there aspects of this letter that are inappropriate? Would you rewrite this notice? If so, how?
4. Does a company in National’s position have a legal, moral, or ethical responsibility to its employees?