Business law principles and applications

Business law, one of the biggest challenges everyone will face is ethical decisions. This is because the choices that are made, must take into account a company's best interests vs. those of the general public. The case involving Jackson Miller is showing how asbestosis is having a negative impact on their financial position. To address these issues, the firm is considering filing for bankruptcy. This will allow them to discharge their debts and negate any kind of claims made against them from the courts.

However, the management has a moral responsibility to those who were impacted by repeated exposure with these substances. To fully understand the best approach requires focusing on the different choices they have available to them. This will be accomplished by looking at their ethical dilemmas, possible rationalizations and various models for resolving the situation. Together, these elements will highlight the best approach and the long-term impact these decisions will have on stakeholders.

Categorize Applicable Ethical Dilemmas

In the case of Jackson Miller, the firm is facing a number of ethical dilemmas in the process of dealing with the asbestos claims. The most notable include: their duty to shareholders / managers, those to the employees and individuals who are affected by repeated exposure. In the case of the shareholders and managers, the company has a duty to protect their profit margins from excessive claims against them. This means that any kind of litigation will more than likely bankrupt the firm after the first round of settlements is complete. ("Resolution of Business Ethical Dilemmas," n.d.)

If this were to occur, Jackson Miller will be forced to file for bankruptcy protection. This will effectively wipe out any kind of equity in the company and the long-term debts on its balance sheet. For the shareholders, this means they will be taking substantial losses from accepting any kind of settlement. While the management, will more than likely lose their retirement savings and not have any kind of viable options for reducing the number of positions at the firm. ("Resolution of Business Ethical Dilemmas," n.d.)

Moreover, any kind of bankruptcy will result in these settlements being effectively negated. This is because they can use the bankruptcy laws to break the agreement and leave those who are impacted by repeated exposure with nothing. When this happens, it will effectively force the victims to waste their time and money going after the firm. ("Resolution of Business Ethical Dilemmas," n.d.)

In the case of the employees, they will lose their job either way. This will occur with the settlement leading to a reduction in claims. While there is the possibility that bankruptcy could lead to plants closing down in communities who are dependent upon them. This means that businesses inside the region will be adversely affected from the increase in unemployment and decrease in consumer spending. If this were to occur, there will be significant shifts in the population and standard of living inside the region. ("Resolution of Business Ethical Dilemmas," n.d.)

However, if the management were to try to remain in business through: fighting the settlements. There is a realistic possibility that layoffs will occur and tremendous amounts of downsizing at various facilities. This will negatively impact their ability to remain competitive inside the marketplace from taking this kind of approach. ("Resolution of Business Ethical Dilemmas," n.d.)

As far as individuals who are impacted from repeated exposure, there is a possibility that they could see a reduced settlement or none at all. This will take place with the company filing for bankruptcy protection and having any kind of judgments against them negated. At the same time, if they were to fight these issues it will lead to greater amounts of suffering from those who are impacted. This will have negative implications on their families and ability to seek out continuing treatment because of their condition. ("Resolution of Business Ethical Dilemmas," n.d.)

These different elements are showing how Jackson Miller is being placed in a no win situation. This is occurring based on the fact that any kind of actions will have negative impacts on different groups of stakeholders. The only way that they can avoid these consequences is to determine the varying degrees it will have on them. ("Resolution of Business Ethical Dilemmas," n.d.)

Describe any Possible Rationalization

The rationalization for the firm is that these challenges will have an effect on the company's bottom line results. This will make it more difficult for them to pay out any kind of claims made against them for defendants in the law suit. If this were to happen, Jackson Miller will be forced to file for bankruptcy protection in order to avoid these challenges. This is the point when all stakeholders will lose something to varying degrees. ("Resolution of Business Ethical Dilemmas," n.d.)

In the case of shareholders and management, this will result in them losing what they have invested in the company. At the same time, the bankruptcy will impact the ability of executives to raise new working capital inside the public markets. Instead, everyone will be forced to seek out solutions which may result in total losses for everyone. ("Resolution of Business Ethical Dilemmas," n.d.)

However, the ability to restructure in bankruptcy will negate any kind of legal claims made against the firm. In this aspect, the rationalization will support the continuing survival of the organization. This is taking place through forcing stakeholders to accept some kind of deal in order for the company to eliminate this problem once and for all. When this happens, management can create an entity which was able to work past these problems and continue to remain in business. At some point in the future, the firm will emerge from bankruptcy protection and can begin creating a strategy. That will help them to remain competitive over the long-term. ("Resolution of Business Ethical Dilemmas," n.d.)

Even though various shareholders will be harmed in the process, these actions will enable everyone to have the tools they need to effectively deal with these challenges. This is because Jackson Miller cannot afford wave after wave of continuing claims made against them. Instead, they must utilize a different strategy that is concentrating on eliminating the problem for good. The only way this can take place, is to address the inevitable by going into bankruptcy and forcing everyone to accept these realities. ("Resolution of Business Ethical Dilemmas," n.d.)

Moreover, this approach will ensure that the firm remains in business and has the ability to restructure. This will prevent these challenges, from negatively distracting the company's resources away from its operations. At the same time, this will help Jackson Miller to clean up its balance sheet and remain a viable entity well into the future. ("Resolution of Business Ethical Dilemmas," n.d.)

As a result, the rationalization for the best approach is that the firm must file for bankruptcy protection. This is designed to make certain any kind of negative effects from the asbestos law suits are dealt with. Anything that is concentrating on the short-term needs of stakeholders will only create even more challenges down the road. This will lead to adverse consequences, which will only be made worse by continuing litigation. ("Resolution of Business Ethical Dilemmas," n.d.)

If this option is selected, it will take into account the viability of the company and prevent even more claims. This will force everyone to change their thinking and move past something that occurred many years ago. At the same time, this strategy will allow the firm to maintain its competitive positions and remain economically viable in the process. When this happens, managers will be more responsive to the needs of stakeholders and can engage in practices that will support their long-term growth. This is the point they can introduce changes. That will lead to positive transformations in: the actions of the company and how it is trouble shooting a host of problems. ("Resolution of Business Ethical Dilemmas," n.d.)

Using the Ethics Modules Resolve the Situation in the Problem

The Blanchard and Peele model is focusing on several different questions to understand ethical behaviors and how it is influencing everyone. The most notable include:

Is it legal?

Is it balanced?

How does it make me feel?

These different elements are providing company officials with insights about how these challenges could be effectively resolved.

Utilizing this approach, it is clear that these issues will more than likely lead to a better outcome for stakeholders. This will occur with Jackson Miller using the bankruptcy laws (which are legal). To break any kind claims that is made against them. This will ensure that the firm is following the various regulations through utilizing a tool. That many other firms in the past have used to deal with these challenges. ("Resolution of Business Ethical Dilemmas," n.d.)

In this aspect, the model is being followed by ensuring that the company is utilizing various aspects of these ideas with this option. When this happens, the company will not have broken any kind of legal guidelines and engaged in tactics which are used to often address these issues. It is at this point, when the company will address these challenges over the long-term and become more economically viable in the process. ("Resolution of Business Ethical Dilemmas," n.d.)

At the same time, this strategy is very balanced. The only drawback is that there will be short-term pain (in varying degrees) for different stakeholders. This means that the firm can remain in business when the bankruptcy is occurring and maintain their competitive position inside the marketplace. This will help them to deal with any kind of negative effects and ensure that they are economically viable going forward. ("Resolution of Business Ethical Dilemmas," n.d.)

The way that this will make people feel, is to have mixed emotions about what is happening. This is occurring, with the bankruptcy hurting those who were harmed by repeated exposure to asbestos and the negative effects it will have on stakeholders. In this aspect, these issues will cause regret about the incident and the pain it is inflicting upon others. ("Resolution of Business Ethical Dilemmas," n.d.)

However, if the firm were to file for bankruptcy and reorganize, it will deal with the long-term consequences of the litigation that is taking place. This means that the company can move forward and will not harm employees or local communities (who depend upon it remaining in business). Over the longer term, this will ensure that company can continue to benefit these stakeholders and provide them with resources to help them. ("Resolution of Business Ethical Dilemmas," n.d.)