Mr Feuerstein Ethical Principles Impact Discussion Paper

Question Description

I’m working on a business law discussion question and need an explanation and answer to help me learn.

Finding negative corporate role models is easy and discussion topics about them may be therapeutic. Who doesn’t like blasting Bernie Madoff, Wall Street, or the big banks?! Seems that is good for our collective soul. Take a bit of time to reread those passages.

The issue of corporate obligations to internal and external stakeholders could consume the balance of this term. However, the case of Malden Mills and its CEO, Aaron Feuerstein, an area that has been deeply impacted by the decline in the US textile industry and associated jobs. More than one mill owner has gone bankrupt trying to stay in business only to eventually close the plant doors for good. With Malden Mills, we have the luxury of hindsight, knowing how Aaron Feuerstein’s gamble paid off—striving to protect his employees but going into bankruptcy. Was he right; that is, was his decision-making sound? Knowing what you know, how would you have advised him?

As you ponder the case of Malden Mills, consider:

1. What was the problem being faced?

2. What personal values do you associate with this case?

3. Who are the stakeholders and what issues were the stakeholders facing?

4. How did Mr. Feuerstein’s ethical principles impact the outcome and how did the risks relate to the benefits?

5. What were the legal consequences?

6. What are other possible outcomes and would those other possible outcomes have been justified?

The link below is a bit old, published in 2009 but gives you the opportunity to hear Aaron Feuerstein in his own words.