CASE 30
“Goodbye, Indiana --- Hello, Mexico: The Whirlpool Plant Closing*”
Ethics in Practice Case

1) Was the Whirlpool Plant Closing just another “business decision”, or did it carry with it social and ethical responsibilities and implications? Explain.
This was not only a business decision, but it carried social and ethical responsibilities with it because the company was thinking for the benefit of its shareholders and consumers by making more energy-efficient products while keeping consumer prices fair. By moving the operation to Mexico this allowed the company to do so. But their ethical and social responsibilities to the community and to their employees were not held up due to lay-offs and relocation. Whirlpool did not
This was an unfair labor practice because it is illegal to threaten any employee with benefits or their job because they sign onto a union or participate in organizing activities. The National Labor Relations Act was intended to protect the employees in the private-sector workplace. One of the objectives of the NLRV is to insure workers have the right to participate in union related activities.
5) What about the plant closing’s impact on the community and related stakeholders? Did the company have any responsibility to work with the community in this decision? What should it have done and how should it have done it?
The impact of the plants closing was devastating. Taxpayers had to shoulder the unemployment and other costs. The suppliers, transportations, and other third party jobs were destroyed. The housing market was affected and home foreclosures increased in that area. Local businesses were stressed due to the lack of money circulating which caused them to go out of business. The problems don’t stop here and could go on forever. This caused a ripple effect that is still causing a negative impact throughout the economy. It should have done everything in its power to prevent the plant from closing down, to keeping the local suppliers even if the plant had to be relocated. The community should have given input