NuComp Company operates in a state where corporate taxes and workers\' compensat
ID: 2375676 • Letter: N
Question
NuComp Company operates in a state where corporate taxes and workers' compensation
insurance rates have recently doubled. NuComp's president has just assigned you the task
of preparing an economic analysis and making a recommendation relative to moving the entire
operation to Missouri. The president is slightly in favor of such a move because Missouri is his
boyhood home and he also owns a fi shing lodge there.
You have just completed building your dream house, moved in, and sodded the lawn. Your
children are all doing well in school and sports and, along with your spouse, want no part of a move
to Missouri. If the company does move, so will you because the town is a one-industry community
and you and your spouse will have to move to have employment. Moving when everyone else does
will cause you to take a big loss on the sale of your house. The same hardships will be suffered by
your coworkers, and the town will be devastated.
In compiling the costs of moving versus not moving, you have latitude in the assumptions you
make, the estimates you compute, and the discount rates and time periods you project. You are in
a position to infl uence the decision singlehandedly.
Instructions
(a) Who are the stakeholders in this situation?
(b) What are the ethical issues in this situation?
(c) What would you do in this situation?
Explanation / Answer
a.President,coworkers are the stakeholder.
b. the ethical issues are:
1 childrens education will be hampered
2. loss from sale of house.
3. what is the guarantee that company will do well in missouri.
c. just because president boyhood home and fishing home is there it doesnot seems ethical to shift to missouri..if business is earning profit and is able to pay taxes and insurance rates and etc. i wouldnot have moved to missouri..
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