Business Case Study: Ardnak Plastics Inc.

The key factor to consider in the case “Something’s Rotten in Honda” (management A case) is that Justin, the manager of Ardnak Plastics Inc., has to contrive an idea on how to ease the fines the factory plant is being issued from the Environmental Protection Agency (EPA). There are two options to fix the issue: 1) scheduling the plant’s heavy emissions work at night so that during the day the reading can be within standards (Fraedrich, year). By scheduling the plant’s emissions at night, this strategy creates a loophole for Ardnak to maneuver around and pass the EPA readings. However, if this route is taken, this becomes an unethical decision because releasing the emissions at night will lead to an increase in air contamination levels. 2)
This decision can ease of the issue of failing the EPA guidelines; the Mexican air quality regulations are very permissive compared to the United States. At this point, there is an ethic, moral, and social quandary to overcome when trying to make the best decision.
Stake holder Decisions
Decision 1 in the stakeholder analysis is the factory plant scheduling their heavy emissions release at night, which will lead to an increase in air commination levels. Decision 2 is relocating the plant 15 miles into Mexico, which will have a negative impact on the Hondo community, the employees, and an unethical decision to pollute the air in Mexico. Employees were given a “+” in decision 1 because they are benefiting; they are benefiting because their job will be saved. Employees were given a “–“ because hundreds of Ardnak employees will lose their jobs if the plant relocates because the management will only hire Mexican workers. Customers were given a “+” for decision 1 because they will be indirectly effected by the company making an unethical decision. The customers are indirectly impacted because they are investing their money into a product manufactured by a company that is willingly
However, if the plant stays the people of the city will be breathing in contaminated air that can lead to health problem. Justin is negatively affected by both verdicts because his decision determines how the rest of the stakeholders are affected. The EPA has a “-“ because the plant has found a way to maneuver around passing regulations. By doing so, the plant is damaging the eco-system, which the EPA is trying to avoid. The Mexican government/environment is only affected if the plant relocates because now they have to deal with potentially hazardous air contamination. However, they have one “+” sign because the government economically benefits from the relocation because hundreds of jobs will be created for the Mexicans. There are three ethical angles that surround the issue that Ardnak Plastic Inc. encompasses. After analyzing the case and the Deckop chapter, there are three ethical theories that can be used to evaluate the issue the plant faces; profit maximization, utilitarianism, and universalism. Profit maximization is when maximizing profit is of importance; choosing the best solutions and making the best decisions that will increase