Business Ethics Case of Malden Mills Essay example

2305 Words Nov 19th, 2010 10 Pages
MGMT – 368 Business Ethics
The Case of Malden Mills

Introduction
On December 11, 1995 a fire burned most of Malden Mills to the ground and put 3,000 people out of work. Most of the 3,000 thought they were out of work permanently. A few employees were with the CEO in the parking lot during the fire and heard him say “This is not the end.” With these words began a saga that has made Aaron Feuerstein a legend among American leaders and a hero to his employees, (Boulay, Art).
Central Facts about the case In the 1980’s Malden Mills had gone bankrupt when the market for the fake fur, (which they produced), dried up. Conversely, Mill’s continued its production of upholstery fabric and developed a new fleece product, Poalartec, and made a
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The moral of the Malden Mills story is that Mr. Feuerstein, his key managers and advisors, are engaged in the leadership and management of what might be called a “heritage company.” In heritage companies (which are most often family businesses) the owner-managers awake each day and think back two generations and forward two generations before their first cup of coffee. They are often curiously, quick-tempered, powerful and committed individuals who come in all ages, from all ethnic groups and races and in both genders. But their ethnic, cultural and gender differences are less important than their common desire to have both healthy families and profitable businesses. Their commitments are to legacies, offspring, tradition and community. They do not fit nicely into the American myth of the entrepreneur as lone wolf and successor icon to the pioneers of the American frontier. But they do dominate many markets and industries, hold our communities together and, with tenacity, manage to pass on both their legacy of values and heritage and assets to the next generation more often than one would believe possible, (Narva, Richard).
Analysis and Evaluation Communication is key at Malden Mills. The most important communication is not what you say but what you do. The first major test of Feuerstein’s convictions as a leader came during the bankruptcy. Many CEO’s and Leaders might conclude that a bankrupt textile mill in a 300 year old mill town in 1981 was the end

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