Northeastern Mutual Life: Preparing for Employee Terminations

Northeastern Mutual Life is a large insurance company. As a result of falling profitability, the chief executive officer has to evaluate the rights of various stakeholders as he plans to reduce staff. He must quantify in dollar terms the moral claims of shareholders and various other stakeholders, and apply ethical analysis where legal requirements are unclear. In particular, he must decide how to manage the layoffs and the implications to the company of the payout of pension benefits.