Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The COVID-19 pandemic has negatively impacted the global business. The automotive sector is projected to bounce back due to increasing disposable income and continued growth

The COVID-19 pandemic has negatively impacted the global business. The automotive sector is projected to bounce back due to increasing disposable income and continued growth in developed countries. Furthermore, enhanced technology and innovation are expected to appeal to environmentally conscious consumers, increase demand for fuel-efficient vehicles.The top three companies in the US automobile manufacturing sector are Honda, Toyota , and Ford who together account for 40% of the market share, with upstart RENREW having only a 3.8% share. Major players have centered their activities on developing hybrid and small cars as buyers become more ecologically concerned. As a result, RENREW's Model E has grown significantly in popularity over the last five years, and it is expected to earn the most significant proportion of revenue going forward.RENREW now manufactures all-electric automobiles, renewable energy generation, and scalable storage systems. RENREW operates a multitude of production facilities, including plants located in USA, the Netherlands, and China and employs over 15,000 workers worldwide. In 2019, the company generated about $33 billion in global revenue.As with any other industry, the automotive sector also faces various ethical issues. One of the ethical issues in the automotive industry that is relevant to this case is the health and safety of their workers. In pursuit of cost-cutting and increasing profit by maximizing production, lax health and safety protocols may endanger its workers' lives. They face a variety of hazards in their daily work, such as noise, chemicals, dangerous machinery, and body deterioration due to ergonomics of workers' tasks.Another ethical issue facing them is the issue with the environment, such as air pollution and sustainability issues in the supply chain.Mr. E. Rellek, the Chief executive of RENREW, is faced with an ethical dilemma. He had decided to reopen the factory despite the Covid-19 pandemic mandates from health officials, which has put employees of the corporation in a difficult position. As RENREW's California factory reopened, CEO E. Rellek reassured nervous workers that they would not have to report to work if they "feel uncomfortable" about showing up to the factory during the COVID-19 pandemic. According to media reports since then, RENREW has fired at least five workers for staying home due to COVID-19 fears. Three of those employees post on social media they were fired in the past week, contrary to Rellek's email sent sent to RENREW's employees whowere told if they chose not to go show up at work they would not be penalized.The two RENREW workers claimed they received termination notices alleging a "failure to return to work" after they opted to take unpaid leave to protect themselves and their family members when the factory restarted production the second week of May. The workers said they both received the notices from RENREW's human resources department, citing their apparent failure to show up at work. They believe they received notifications for speaking to media about their concerns over working conditions at the plant.They felt effectively forced to return to their jobs. Others complained that RENREW fails to follow social distancing guidelines, with lax enforcement of rules concerning masks and sanitation of machinery. They also complain of little transparency by the company about new cases of infection, as well as its response. Employees are "hovering over each other," one worker said. Another worker said that some workers disappear for two weeks, and their peers are told they are "sick" without further explanation. Supervisors cite health privacy law in not disclosing particular cases, but workers say RENREW has not even described broadly how widespread the novel coronavirus was at the plant.RENREW defied the local health government orders so it could restart production. Days later, many workers tested positive for the coronavirus. Rellek and the company have argued that RENREW's manufacturing is essential, something the government disputed. Some workers say that the RENREW's opaque approach is endangering their lives just to build cars.Shortly after, government enacted a sweeping stay-at-home order in mid-March, joining other counties in the state that were among the first in the country to take drastic measures aimed at curbing the spread of the coronavirus and Covid-19, the illness it causes. E. Rellek calls RENREW workers back to the factory (again), and the health officials say no (again). Since learning the cases, some workers say they have been beset by fear of coming down with Covid-19. It is a matter of particular concern on the vehicle production lines, where multiple workers touch components and share machinerysome pool into an outdoor tent where they assemble cars. As RENREW races to meet the Model E. delivery deadlines, factory pressures and suspicions grow.These concerns have prompted some workers to stay home, comforted by RENREW's promises that they could keep their job without pay in the interim. Two 2 employees who were told they were being fired last week, believe RENREW's actions were retaliation for their appearance this month at a news conference during which they spoke about conditions at the plant and their fear of returning to work. The company's HR department informed them they would be let go. Nevertheless, they also could dispute the matter and be brought back on but with the implication that they would have to return to work.One of the 2 employees who has opted not to return because her 6-year-old son was hospitalized with a respiratory illness this year, said that with distancing requirements only loosely followed, it is unthinkable for her to work in the resulting conditions: hours-long shifts with shared machinery, in close quarters with others. She said she took Rellek at his word in early May but thinks her job was threatened because she did so and then spoke out.Rellek's delivery promises and rushed production could get people hurt, and now he is doing it again during a pandemic." Is it right for E. Rellek to commit such act to his employees, defy government orders all because he is trying to meet up with RENREW Model E deadlines and make profits? A new wave of corona virus variant appears to be developing. What should RENREW decide?

Evaluate Alternative Actions FromVarious Ethical Perspectives. Apply ethical decision-making models from diverse perspectives by first identifying stakeholders and their interests in the scenario in the attached case. Give a detailed report offering advice on how best to deal with a specific ethics issue the company is facing.

1. Identify stakeholders and their interests in a table . What are the possible alternative choices the company has and impacts on stakeholders?

2. Apply each of the following to the case:

  1. Consequentialist --- Describe aUtilitarian Approach and its weaknesses and apply it to the case.
  2. Non-Consequentialist Approach Duties/Rights/Virtues--- apply at least one non-consequentialist ethical theory

3. Recommend a Decision.Considering all these perspectives, which of the options is the right or best? Give your reasons why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Operations Management Journal

Authors: Kris Safarova

1st Edition

9798734741054

More Books

Students also viewed these General Management questions