Read the following case and then answer the questions listed after the case. Siemens is a multi-national firm producing electrical and electronic products and systems in 190 countries around the world employing 450,000 people. Siemens UK base in Berkshire employs about half of Siemens’ UK workforce (21,000 people) serving more than 100 sites and generating over £3 billion annually revenues. Siemens UK administration has to decide its production mix that maximises its market share. It offers the full spectrum of goods and services divided into three sectors: Primary (including mines, quarries, farming and fishing); Secondary (including finished electrical and electronic goods ranging from toasters and hearing aids to trains and power stations); and Tertiary (including banking, insurance, and healthcare services). 

Based on latest statistics, 48% of Siemens UK revenues are derived from the primary and secondary sector and 52% from the tertiary. Responding to consumer demand in the market, the subsidiary administration decided to substitute services with goods. In some cases, Siemens combines products and services in major projects. These contracts include producing superconducting magnets for MRI scanners to support new hospitals. However, responding to such new trends led to downsizing employment in primary and secondary sectors substituting them with more suitable new staff for delivering the company decision.

(A). Discuss the ethicality of the company decision through applying the ethical decision making stages then advise the Siemens UK administration on the most ethical decision that they need to make, showing them how they can reach this decision.

(B) Distinguish main types of the corporate social responsibility (CSR) then use the “economic model” and “social-web models” of CSR to criticise the ethicality of Siemens decision