PHL 323: Current Ethical Issues In Business Learning

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Current Ethical Issue in Business Learning Danielle Christine University of Phoenix Ethics in Management PHL 323 Laila Dabbagh Lambdin February 23, 2009 Current Ethical Issue in Business Learning Identify the ground rules manifested in the situation as well as which ethics theories apply. Circuit City is the nations 2nd largest retailer of consumer electronics, entertainment software and personal computers. On November 3, 2008, Circuit City announced that they would layoff and close 17% of it’s workforce by the end of the year. Due primarily to weakened economic environment and its potential impact on the timing of the overall sales of the companies inventory, cost and expenses. As a result of the companies deteriorating…show more content…
Because of these economics times that the world is currently in, the company found its business in disarray subsequently an action plan was put in place for the company could be saved. More than 34,000 of jobs were lost in the US and Canada alike at that time. As of January 16th 2009 a week after the motions were initiated in court, Circuit City decided to close all 567 remaining stores in the United States. The lost of these jobs have not only affected the company but their employees have suffered irreversible damage in these economic times. The communities were these jobs were lost have been devastated. Families’ lively hoods have been broken, retirement pensions are questionable, and the revenue this company generates for the city in which it resides. According to CNNMoney.com the company has asked for an extension for the liquidation of their inventory until March 31 and they are only waiting for the courts approval. If this does not succeed stakeholders, stockholders, investors, and suppliers would be affected alike. Ethically I found it hard to believe that this happening in the United States and that our economies have become so terrible that the Circuit City’s in Canada are not closing and their profits are up. The retail industry in general is slowly wasting away and our future and…show more content…
The first six stores opened in the Washington, D.C. market and in 1984, the company name changes to Circuit City Stores, Inc. As well, stocks listed on the New York Stock Exchange. In 2004, the company’s Board of Directors authorized a $200 million in the company’s stock repurchase authorization then followed up in years ’05 and ’06 with allowing a $400 million increase, raising the total repurchase capacity to $1.2 billion. Finally yet importantly, in 2008 the company’s board of directors authorized the exploration of strategic alternative to enhance shareholder values. They filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code and under the Company’s Creditors Arrangement Act in Canada. These things and many other points not mentioned, is truly what has given this company a track record of tremendous accomplishments and success in over its nearly six decades of sustaining in operation
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