QUESTION 3

SebeyyaZ Bhd is a handbag manufacturer has decided to close its factory in a regional

Bangkok town and move its operation offshore to a country where they can employ

workers at a substantially reduced cost. Closing the factory will result in the loss of

500 jobs in the town.

Required:

(a) Outline the issues that the handbag manufacturer might face with regards to its

implied social contract. (use appropriate theory to support the issues).

(b) Identify the groups or people are likely to be concerned or affected by the decision

and whether the decision is likely to be seen as advantageous or disadvantageous to

these groups.

(c) Discuss actions that SebeyyaZ Bhd could take to reduce any potential negative

reaction to the decision.