The plant manager has been informed that 200 workers will soon be laid off. A rumor is circulating and one of the workers, an old friend, asks the plant manager if the plant is closing and if he will lose his job. This presents an ethical dilemma for the plant manager, as telling the truth would breach loyalty to the company but not telling the truth would mislead the friend who is concerned for supporting his family. The plant manager must find a way to address this dilemma between truth and loyalty.

1. MBA Corporate Ethics Forum
National Taiwan University of Science and Technology
Homework and Exercise
NTUST MBA Forum of “Managing Business Decision Ethically”
Topics: The Layoff: An Easy Job? Your Painful Decision Last to Come
Suppose:
‧ You’re the plant manager in one of ABC Company’s five plants. You’ve
worked for the company over 15 years, working your way up from the factory
floor after the company sent you to college.
‧ Your boss just told you in complete confidence that the company will have to
layoff 200 workers.
‧ Luckily, your job won’t be affected.
‧ But, a rumor is now circulating in the plant and one of your workers (an old
friend) asks you“Is the plant closing? Am I going to lose job? I’ve got a kid
in college,. I need to know! What will you say?
Question:
‧ This is a true ethical dilemma, because two values are in conflict. Two
“right＂ values that can create the significant conflicts are “truth and
loyalty”.
‧ Telling the truth to your friend means that you have to break your promise to
be loyal to the company that has treated you so well.
‧ Now, you are the manager, how will you deal with this ethical dilemma by
applying rational method or tools?
Note:
None of the approaches or solutions is perfect. The purpose of this case is to
get you to think carefully and to find a good way into a solution.
huang.prof@gmail.com 2008/10/4