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Finding negative corporate role models is easy and discussion topics about them may be therapeutic. Who doesn't like blasting Bernie Madoff, Wall Street, or the big banks?! Seems that is good for our collective soul. However, for this week's DT, let's step back to Chapter 3 and consider the case of Malden Mills (Case 7, page 132, et seq.). You will find references to Aaron Feuerstein and Malden Mills in several sections of our textbook. Take a bit of time to reread those passages.
The issue of corporate obligations to internal and external stakeholders could consume the balance of this term. However, the case of Malden Mills and its CEO, Aaron Feuerstein, strikes close to home for the area of Alabama in which UNA is located; an area that has been deeply impacted by the decline in the US textile industry and associated jobs. More than one mill owner has gone bankrupt trying to stay in business only to eventually close the plant doors for good. With Malden Mills, we have the luxury of hindsight, knowing how Aaron Feuerstein's gamble paid off---striving to protect his employees but going into bankruptcy. Was he right; that is, was his decision-making sound? Knowing what you know, how would you have advised him?
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