Utilitarianism is one of the major systems of ethics in which the ethical or right action is one that brings the greats good for the greatest number. It can be applied to achieve the total happiness for everyone in the organization, not just the larger corporation. By thinking about how major decisions will affect not only the employs, but the community as a whole.
Organizations should establish its own ethical standards and core values. Having certain rules and guidelines for how they will communicate with employees and how the employees should mirror those values and guidelines is a good start.
If there were to be any major changes, the organizations have an obligation to communicate to employees about the changes that can affect their lives, such as closing, relocation or a change in retirement or pension obligations.
When changes are made in the company that will result in possible job losses, for instance relocating an office or plant overseas, they will have to think about what the outcome of their decisions will be instead of the process.
By relocating the plant, jobs will be lost, which then could affect the economic status of the community. If the plant is a big revenue source for the community, it doesn’t just affect those that work there, but the community as a whole and that’s something the organization has to think about.
If management tells employees about the plan to close down, there could be a drop in productivity. The employs may not give their all, because they may feel they no longer have anything to work for. They’re going to be out of a job, so why should they produce for the company?
It will then be the organization’s responsibility to figure out how everyone will be happy as a result of the relocation and communicate that to its employees. Some of them may be...