Malden Mills
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Malden Mills
Antonio Almeida
Ethics and Corporate Social Responsibility
Prof. Paul S. Napolitano
November 10, 2011
The corporate culture of Malden Mills began in 1907 by Aaron Feuerstein 's grandfather. His legacy was to continue to provide high quality, well-paying jobs to the people of Massachusetts. When Aaron Feuerstein became CEO of the family business Malden Mills, he continued his grandfather 's legacy and continued to provide them with high quality and well-paying jobs for the people of Massachusetts and stability for the community (Laura P. Hartman and Joe Desjardins). Aaron Feuerstein believed that without the employees at Malden Mills, the company would not have been successful. In 1995, the company caught on fire and thousands of workers were displaced. However, keeping his grandfathers legacy, Aaron Feuerstein made an ethical management decision to keep paying the displaced workers their salaries for 90 days with full benefits forgoing the company 's bottom line. Malden Mills was able to rebuild a better and bigger factory and started to reopen sections within a year. The employees came back to work and the community seemed to recover. However, Malden Mills did not fully recover; Insurance proceeds covered only three-froths of the $400 million costs of rebuilding and by 2004 Malden mills filed for bankruptcy protection. During the summer of 2004, Malden mills emerged from bankruptcy; but its board of directors was now controlled by its creditors, led by GE Commercial Finance Division. The new board replaced the CEO, although Mr. Fieurstein retained the right to buy back the controlling interest, he was unable to raised sufficient financing and his offer was rejected (Laura P. Hartman and Joe Desjardins). Despite all of the efforts made to rebuild and keep employees and customers. Malden Mills management did not fully develop a strategic plan that would be successful.
Malden Mills
Antonio Almeida
Ethics and Corporate Social Responsibility
Prof. Paul S. Napolitano
November 10, 2011
The corporate culture of Malden Mills began in 1907 by Aaron Feuerstein 's grandfather. His legacy was to continue to provide high quality, well-paying jobs to the people of Massachusetts. When Aaron Feuerstein became CEO of the family business Malden Mills, he continued his grandfather 's legacy and continued to provide them with high quality and well-paying jobs for the people of Massachusetts and stability for the community (Laura P. Hartman and Joe Desjardins). Aaron Feuerstein believed that without the employees at Malden Mills, the company would not have been successful. In 1995, the company caught on fire and thousands of workers were displaced. However, keeping his grandfathers legacy, Aaron Feuerstein made an ethical management decision to keep paying the displaced workers their salaries for 90 days with full benefits forgoing the company 's bottom line. Malden Mills was able to rebuild a better and bigger factory and started to reopen sections within a year. The employees came back to work and the community seemed to recover. However, Malden Mills did not fully recover; Insurance proceeds covered only three-froths of the $400 million costs of rebuilding and by 2004 Malden mills filed for bankruptcy protection. During the summer of 2004, Malden mills emerged from bankruptcy; but its board of directors was now controlled by its creditors, led by GE Commercial Finance Division. The new board replaced the CEO, although Mr. Fieurstein retained the right to buy back the controlling interest, he was unable to raised sufficient financing and his offer was rejected (Laura P. Hartman and Joe Desjardins). Despite all of the efforts made to rebuild and keep employees and customers. Malden Mills management did not fully develop a strategic plan that would be successful.
Cited: Laura P. Hartman and Joe Desjardins. (n.d.). Business Ethics. Mcgraw-Hill Irwin.