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MERCURY METALS CASE



             The primary stakeholders are:.
            
             • Employees at Mercury Metals.
            
             • Mercury Metals" Stockholders.
            
             • Mercury Metals" Suppliers.
            
             • Mercury Metals" Creditors.
            
             • Smalltown community.
            
             • General Public.
             Step 5: What are the ethics of the alternatives?.
             Discontinue selling guns and move to another product line.
             Eliminating the production of guns at Mercury Metals would most likely have a negative effect on the employees, stockholders, suppliers and creditors of Mercury Metals. In addition, it would have a negative effect on the Smalltown community. Mercury Metals moved to gun production after a careful investigation of the business to determine where a profit could be made. They previously struggled for decades trying to make a profit. Eliminating the production of guns could potentially reduce employee pension funds and cause employee layoffs. Management may no longer receive the sizable bonus checks the guns have enabled them to get. Stockholders are also potentially negatively impacted by this alternative. Sales from the guns are what caused the stock dividends to rise to an all time high. The suppliers for Mercury Metals could also be negatively impacted. If the guns are removed from the product line and a suitable replacement cannot be found then the suppliers will lose business and potentially need to lay off employees or even go out of business. This also puts the creditors of Mercury Metals at increased risk that they will not be paid back what was loaned to Mercury Metals. The credit may have been extended to Mercury Metals based the sales figures the guns provided. The Smalltown community may be negatively impacted also. Unemployment could rise in the area and the standard of living in the area could decline if the new product line was not successful. In turn this could impact other businesses in the community and have a downward spiral effect on the overall economy of the area.


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