Southern Recreational Vehicle Company Case Study

Southern Recreational Vehicle Company - Case Study Example The reasons by O’Brian for relocation of the company are justifiable as the company has been experiencing loss for the last five years and the present and incentives offered by the state would significantly reduce not only its spiraling production cost but also reduce the burden of rising taxes, increased labor and utility cost etc. that are associated with industrialized states which have strong labor union format. A firm has legal and ethical responsibility towards its workforce when it decides to cease its operation. Though employment and labor laws across states may differ, the basic employment contract ensures that employees are given far warning and compensation by the firm when it decides to cease its operations and relocate. Moreover, ethical and moral considerations are key issues that look at the wider welfare of the employees who have served the company with commitment and worked hard for its success. Thus, the firm must ensure that employees are given fair compensation and provided with opportunities to serve in its new location