Disadvantages of high labor cost and healthcare expenses

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Due to competitive disadvantages of high labor cost and healthcare expenses, a manufacturing company is considering the relocation of its manufacturing plant from a small city in midwest to a border town in Mexico. Approximately 20% of the residents of the city are employed by the company, and many others are employed in businesses such as banks, restaurants, shopping centers, and grocery stores that would suffer a decline in business if the company decide to relocate. Does the company have a social responsibility to factor into its decision the impact that its move would have on the city? Explain your reasoning.

Reference no: EM132217661

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