The purpose of preserving the employees jobs

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Apollo Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13–$15 million. Apollo owns three aluminum plants, which are profitable, and one plastics plant, which is losing $4 million a year. The plastics plant shows no sign of ever becoming profitable, because of its very high operating costs; and there is no evidence that the plant and the underlying real estate will increase in value. Apollo, Inc. decides to sell the plastics plant. The only bidder for the plant is Oliver, who intends to use the plant for a new purpose, to introduce automation, and to replace all present employees. Would it be ethical for Apollo Inc. to turn down Oliver’s bid and keep the plastics plant operating indefinitely, for the purpose of preserving the employees' jobs? Discuss and use analysis as the basis for your answer based on concepts studied during this course.

Reference no: EM131371056

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