American Airlines Wins Approval of Cost-Cutting Contracts

When it comes to being ethical, businesses view it more as an increase in costs rather than a social responsibility. However, when a big business like the American Airlines goes bankrupt, the only way of getting out of it is through cost-cutting. American Airlines recently had a hearing about their bankruptcy and their cost-cutting contracts were approved. If cost-cuts are taking place, it means that  of all the stakeholders present in the company, labor will be affected the most. When cutting cutting costs, it can either mean cutting of wages of laying employees off. This is what American Airlines is doing. Though this order has been approved by the court, how ethical is to lay off employees in a bulk from the company? Like Edward Freeman said, you cannot just satisfy one stakeholder (in this case the owners) as it will mean that there will be a loss in what the other stakeholders could have had offered.

American Airlines Wins Approval of Cost-Cutting Contracts. http://www.businessweek.com/news/2012-09-12/amr-wins-court-approval-of-cost-cutting-labor-contracts