Fire 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 society. He needs to look into all the issues that could affect the company as well as the society when determining whether to rebuild or retire. Singer needs to look at the bottom line, as well as what is in the best interest of the company as well as the society and not what is in his best interest. The next issue to take into consideration is the stakeholders within the company. Who are the stakeholders? The stakeholders with in the corporation are the owners, which would be Herman Singer along with his family since the corporation is family owned, the employees, shareholders and consumers. Also, the employees families can be consider stakeholders because if they are going to be unemployed then they should have a right to say what they feel about the company. The community also plays a role as a stakeholder. Without the corporation, this community would be devasted due to economic factors. As with the stakeholders, one must ask what exactly the stakes are in the corporation. There are several stakes to take into consideration in determining if Herman should rebuild the factory. The corporation built a business in a small New England town that has brought light as well as employment to this community. Without the corporation, this community would be economically challenged. This corporation has helped the economically depressed area by paying employees above average wages compared to other companies with in the industry. However, if you rebuild, your continued supporters such as consumers, customers, community, etc will continue to help your business grow in the future. Also, this would look good in the public image and help your reputation grow with in your company. It also states that you and your stockholders feel that the corporation is financially stable and strong enough to rebuild and still be a profitable company. But on the other side, the competitors within the industry would love to see the corporation not rebuild because it would help their business and increase their profits. However, if Herman Singer decides not rebuild, stocks would decrease, the company would more than likely go under losing employees and hurt the community. So, what should Herman Singer do? Herman Singer needs to take all these things into consideration before determining if he should rebuild the factory. Also, he needs to take into consideration all the stakeholders and their thoughts on whether to rebuild the factory. He also has several supporters that are standing by him in rebuilding the factory and have verbal contracts that they will be committed to the corporation. Should he relocate the firm to an area where wages are lower if he rebuilds? If Singer rebuilds he should not relocate the firm because the community has been a supporter of his business for over 90 years. If the company decided to relocate the firm, the small town that once was economically depressed might be devasted. Most of the other textile factory moved south to lower wages. If Singer decided to relocate he could be faced with more competion for the corporation and loss employees due to that most have lived in the small town and would not want to relocate. But, on the other hand he could lower wages by relocating his firm to another area. I think Singer needs to make several provisions for not only the employees but for the community as well. First of all, Singer could always cut or decrease wages but at the same time increase the benefits or give employees stock options to help contribute to the decrease of their wages. Also, Singer could give incentatives or bonuses to employees. He should look at the other textile factories and compare wages to others in the industry and try to increase his by a little bit to keep employees. If Singer still pays his employees more than the average factory does then most employees will continue to stay on with the corporation and not leave. As long as Singer does not go below the average of other companies, then his employees should be happy. Plus, most of the employees have been there long-term or a member of their family has and they would want to continue to support the corporation as well as the community. As for the community, Singer needs to implement certain donations to the community yearly so that the community does not sole rely on the corporation. Singer needs to let the community know about the company and what plans he intend to do because if one day he does decide to move, that the community will not be economically challenge. As I have indicated, Herman Singer should rebuild his factory. However, Herman Singer is old enough to retire and might not care about his business and decides to retire because it is in best of his self interest. As stated in the case, he has plenty of money to retire as well as the money that he will get off of his insurance proceeds from the fire. If Singer did decide to retire he would cause several problems within the community. There would be several hundreds of employees unemployed which could decrease the economy in such a small town that depends on the corporation. Many businesses would love to see Singer retire as they would benefit and take advantage of the situation because their corporation would become more profitable. However, the small community as well as the customers that have supported the corporation for ninety years would be upset if this would happen. Besides rebuilding the factory, another issue that Singer could consider is selling the factory and let someone come in and rebuild. This would not make Singer look like a bad guy if he decide to retire and not rebuild. Overall, I feel that Singer should rebuild his factory. I feel that it would be in Singer’s best interest to rebuild the factory that has been a part of this family for ninety years. I feel that after running a business for 90 years, I would feel that I would have to continue on with the business not only for me but for my employees as well as my community. I feel that it would be a social responsibility and it would be in the firm’s best economic interest to rebuild the factory and build back an already strong corporation. I believe if Singer would retire right now, I think he would feel that he did not accomplish what he want to do and he would not be leaving a successful corporation. Also, I think if he would retire, I believe that he is doing for his self interest not for the company. I believe that Singer should rebuild the factory and get it back up on its feet again and then retire.