Business Ethics Report: Analysis of GM's Oshawa Plant Closure

This report analyzes the business ethics surrounding the General Motors Oshawa plant closure. It explores the roles and responsibilities of employees, the business owner, and other stakeholders. The analysis examines the ethical implications of the closure, considering the impact on employment, the automotive sector, and the community. The report evaluates the ethicality of the owner's decisions, considering short-term profitability versus long-term sustainability. It proposes alternative actions for stakeholders, including forming coalitions and communicating with employees, to mitigate negative impacts. A stakeholder analysis is provided, outlining recommended actions for the owner, government, Unifor, and auto-part suppliers. The report is based on various news sources and provides a comprehensive overview of the ethical dilemmas presented by the case.

Running head: BUSINESS ETHICS
BUSINESS ETHICS
Name of the student
Name of the university
Author note

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Part 1
Answer to question 1
The employees play a major role in maintaining the efficiency of the organizational
performance through continuously supporting the productivity of the same. According to the
case of General Motors, the employees play a major role in maintaining the efficiency of the
automotive manufacturing units. It assisted the business in enhancing the rate of profitability and
corporate sustenance.
Answer to question 2
The owner of the business plays a major role in managing the different operations
through the delineation of the current market position and environmental trends. In the case
scenario, the owner of GM played a major role in devising the different processes that might be
utilized by the organization for maintaining consistent sustainable processes.
Answer to question 3
The owner of the organization being one of the major stakeholders acted unethically by
closing down the General Motors Oshawa facility as it provided employment to above 2500
employees1. On the other hand, the step that was undertaken by the owner compromised 15000
jobs on which the Canadians were employed in the different auto-parts suppliers. The total loss
of 17500 employment in the automotive sector, accounting to 14% of the overall job in the
1 Alini, Erica. 2018. "GM Oshawa Plant Closing Could Affect Nearly 15 Per Cent Of Auto Industry Jobs". Global
News. https://globalnews.ca/news/4698395/gm-oshawa-plant-closing-job-losses/.

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nation, would be affected through the decision2. Therefore, the decision that was undertaken by
the management was unethical.
Answer to question 4
The stakeholder was assured with the responsibility of maintaining the standards of the
operations in accordance to the needs of maintaining the equilibrium in the automotive sector.
However, the decision that was undertaken by the management of the organization resulted to
the market meltdown.
Answer to question 5
The self interest of the stakeholder was justifiable for adhering to the short term
profitability of the organization. However, the decision was unjustified while considering the
long term sustenance of the automotive sector.
Answer to question 6
The stakeholder could have communicated with the different unit and suppliers in order
to form a powerful coalition, which would have supported the concerned organization in
maintaining the efficiency of the operations in the context of USMCA agreement3. The coalition
would have helped the organization in maintaining the collaborative functioning of the systems
in order to maintain the long term sustenance of the automotive sector.
2 CBC. 2018. "GM's Oshawa Plant Is Closing: Here's What You Need To Know | CBC News". CBC.
https://www.cbc.ca/news/canada/gm-oshawa-closure-1.4921660.
3 May, E. 2018. "Elizabeth May: Would Canadian Politicians Have Fallen Over Themselves To Save The Horse
And Buggy?". National Observer. https://www.nationalobserver.com/2018/11/27/opinion/elizabeth-may-would-
canadian-politicians-have-fallen-over-themselves-save-horse.

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Answer to question 7
The government is responsible for controlling the different operations that are undertaken
by the businesses in the market place. However, in this scenario, Unifor, a general trade union in
Canada will be held responsible for controlling the marketplace4.
Part 2
Stakeholder analysis
Stakeholders Recommended actions
Owner of the concerned organization  Consultation with the different
suppliers and forming a powerful
coalition
 Communicating with the employees
before implementing change
 Creation of alternative job positions as
an alternative plan
Government  The consideration of the market
dynamics before implementing a
regulation
Unifor  Communication with the concerned
organization for safeguarding the
interests of the employees while
4 Unifor. 2018. "Unifor Calls On General Motors To Allocate Product To Oshawa | Unifor Local 222". Local222.Ca.
http://local222.ca/unifor-calls-on-general-motors-to-allocate-product-to-oshawa/.

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adhering to the changes made by the
concerned organization
Auto-part suppliers in Canada  Consultation with the concerned
organization and developing strategies
for alternative course of actions


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References
Alini, Erica. 2018. "GM Oshawa Plant Closing Could Affect Nearly 15 Per Cent Of Auto
Industry Jobs". Global News. https://globalnews.ca/news/4698395/gm-oshawa-plant-closing-job-
losses/.
CBC. 2018. "GM's Oshawa Plant Is Closing: Here's What You Need To Know | CBC
News". CBC. https://www.cbc.ca/news/canada/gm-oshawa-closure-1.4921660.
May, E. 2018. "Elizabeth May: Would Canadian Politicians Have Fallen Over Themselves To
Save The Horse And Buggy?". National Observer.
https://www.nationalobserver.com/2018/11/27/opinion/elizabeth-may-would-canadian-politicians-have-
fallen-over-themselves-save-horse.
Unifor. 2018. "Unifor Calls On General Motors To Allocate Product To Oshawa | Unifor Local
222". Local222.Ca. http://local222.ca/unifor-calls-on-general-motors-to-allocate-product-to-oshawa/.