Amazing Heirlooms, Inc., is a manufacturing company that makes and sells replicas of popular antique furniture pieces.

Over a period of months, several events occur that raise issues with respect to ethical issues in management.

February: The company signed a distribution agreement with a national furniture distributor to carry a new line of furniture.

March: Equipment and materials are purchased, and two new production lines are established. Plans are made to hire thirty new employees to work these production lines.

April: The human resource department recommends to the top executives that credit histories, drug screens and criminal background checks be performed on all new employees prior to employment because some employees will be handling dangerous power equipment. The policy is approved. Thirty new workers are hired and trained.

June: Production slows because a supplier is slow in getting materials to the factory.

July: One of the new employees hired to work on the new production line is let go because of poor performance. His supervisor had been following the company policy on progressive discipline. He is given his final paycheck and is told not to show up for work at the next shift.

September: A new computerized manufacturing process is purchased and installed by upper management for one of the older production lines. The new computerized system uses 30 percent fewer employees.

November: Senior management purchases a new type of glue that contains a chemical that speeds up the drying process. The new chemical releases fumes that are irritating to some employees' skin and eyes.

February: An employee shows up to work impaired. The supervisor believes that he might be under the influence a drug. The employee is sent for drug testing. Members of the senior management team develop and implement a random drug testing program to deter other employees from using drugs.

April: The chief financial officer produces a list of telephone extensions in the company that shows how many long-distance calls were made at each extension and the dollar value of these calls. This list was sent to the appropriate supervisors.

August: Senior-level management establishes a new policy regarding smoking that requires cigarette smokers to smoke in a designated area outside the building. This change seems to be acceptable to employees until someone raises the question of what will happen in the winter. September: The supervisor for Employee A warns him that he must stop sending damaged materials to the next work station. Employee A explains that fellow employee B has repeatedly damaged some of the materials that employee A has worked on before sending it on to the next work station. Employee B also has damaged employee A's tools. Employee A identifies by name other employees who have seen this happen but have kept silent.

October: Sales are lower than expected for the products being made in the two new production lines. Senior management decides to cut its losses and shut down one of the new lines at the end of November. This will require laying off fifteen employees.

What are the ethical issues in this company? What rights does the company have with respect to employees? What rights do employees have with respect to management decisions?