Discussion Scenario: The Johns Manville Corporation is a profitable company that

Question

Discussion Scenario: The Johns Manville Corporation is a profitable company that makes a variety of building and other products. It was a major producer of asbestos, which was used for insulation in buildings and for a variety of other uses. It has been medically proven that excessive exposure to asbestos causes asbestosis, a fatal lung disease. Thousands of employees of the company and consumers who were exposed to asbestos and contracted this fatal disease sued the company for damages. Eventually, the lawsuits were being filed at a rate of more than 400 per week. In response to the claims, Johns Manville Corporation filed for reorganization bankruptcy. It argued that if it did not, an otherwise viable company that provided thousands of jobs and served a useful purpose in this country would be destroyed and that without the declaration of bankruptcy, a few of the plaintiffs who first filed their lawsuits would win awards for hundreds of millions of dollars, leaving nothing for the remainder of the plaintiffs. Under the bankruptcy courts protection, the company was restructured to survive. As part of the release from bankruptcy, the company contributed money to a fund to pay current and future claimants. The fund was not large enough to pay all injured persons the full amounts of their claims. Discussion Questions: After reviewing the learning materials in this Module, prepare an Initial Post (by Thursday, 11:59PM) that incorporates these materials to answer the following questions. Also, your grade in this learning activity relies on your engagement in the discussion through your Peer Replies (TWO or more by Saturday, 11:59PM).

Topic Questions: Is Johns Manville liable for negligence? Is it ethical for Johns Manville to declare bankruptcy? Has it met its duty of social responsibility in this case?

Reflection Questions: What specific knowledge and information did you gain from the learning materials and activities that you can apply to your experiences now? In the future? What are the social and ethical issues involved with the subject matter of this assignment? Which topics were confusing, complicated or contradictory? Why? Did you ask the class or instructor for assistance?

Explanation / Answer

Unwrapping the discussion scenario of the Johns Manville corporation which is a major producer of asbestos used for installation of buildings and variety of other usage.

It is also learned that excessive exposure to asbestos has caused asbestosis a fatal lung disease to the consumers and company employees who were exposed to asbestos and got this fatal disease and they have also sued the company for acquiring such damages. Now coming to the topic question weather the Johns Manville is liable for negligence so the answer is yes Johns Manville is liable for negligence because it was known to the firm that the product which they are manufacturing is causing a fatal disease and it was already known to the product manufacturer that such a product which is manufactured by them shall definitely cause fetal lung disease to the consumer as well as people working in the factory or who are directly exposed to asbestos.

When the people suffering from fatal disease started fine filing lawsuits at more than 400 per week then in response to those claims Johns Manville corporation has filed a reorganize bankruptcy giving a reason that it provides thousands of jobs in the country and without the declaration of bankruptcy a few of the plaintiffs would win awards or hundreds of millions of dollars and under the bankruptcy code protection the company was restructure to survive.

Now coming to the question that it was ethical for Johns Manville to declare bankruptcy, in my opinion Johns Manville decision of declaring the company bankruptcy is ethical because the company was not having funds in hand to settle down any further claims which were arising at a higher rate.

As the firm was not left with anymore funds to settle claims. They did settle claims till they had funds to do so. Their conduct of declaring the organization bankrupt is morally justified.

So Johns Manville to declare bankruptcy under the bankruptcy code protection is justified and the company was restructure to survive so as to maintain their employees jobs with the company and also contributed money to settle current and future claims.

Now coming to reflection questions specific knowledge information we get from the learning materials and activities which we are experiencing till now that the company as a moral duty should have created an environment and taken corrective measures to avoid and to prevent fatal diseases which were arising when people are coming in contact with asbestos material. The company has the moral duty to provide their workers with appropriate personal protective equipment so as to protect their employees from getting such fatal disease and in the future also we should apply such knowledge when some material is causing fatal diseases then apart from thinking only business we should also look for the corrective measures so that human life are not endangered and such social and ethical issues are to be kept at priority for a company because ultimately we should not harm mother nature as well as our employees while doing our business. Some of the confusing and contradictory factors have arises while reviewing the literature that it was said that company has not taken preventive measures while doing the business and the employees were come in contact with asbestos got the fatal diseases. Finally when the lawsuits were being filed at a higher rate and company not having response to the claims and realized the conduct and then filed disorganization bankruptcy.

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