In the case, “Facing a Fire” prepared by Ann Buchholtz, there are several problems and issues to identify in determining if Herman Singer should rebuild the factory due to a fire or retire on his insurance proceeds. I believe that this case is about social reform and self-interest. I think that Singer needs to ask himself, what is in the firm’s best economic interests. There are several things to question within this case, what should Herman Singer do and why, should he rebuild the factory or begin retirement, if he rebuilds, should he relocate the firm to an area where wages are lower and what provisions, if any, should Singer make for his employees as well as for the community?
The first issue to look at is what should Herman Singer do and why. The central fact or issue in this case is the fire and whether to rebuild the factory or retire. Due to the fire, profits has decreased, unemployment has increased, which could cause the community in a small New England town to suffer. So, what should Herman Singer do and why? Herman Singer has to take several issues into considerations in whether or not he should rebuild the factory or retire on his insurance proceeds. There are several issues that Singer needs to look at before making his decision. The first issue is the Corporate Social Responsibility (CSR). The Corporate Social Responsibility is where one considers the impact on the company’s action on society. Within CSR, you have four responsibilities, economic, legal, ethical and philanthropic. Herman Singer need to take a look at all these to make for sure that the action that his is going to take is an economic, legal, ethical and philanthropic approach in regards to his corporation and so ...