MG Rover Group’s Car Production and Business Ethics

MG Rover’s car production and loss reduction

MG Rover business was a very important economic pillar in the motor industry in Britain, contributing greatly to employment opportunities, governments’ revenue, and the company’s continuity. It is unfortunate therefore that despite all the efforts the company and the government put to safeguard the interests of the company, it finally collapsed. At the time of the collapse, the stakeholders of MG Rover included, the government in safeguarding employees’ interest, the employees for getting their livelihood, and the then investor; Phoenix group.

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Despite the phoenix efforts to diversify the variety of motor vehicle production and reducing the losses the company was incurring earlier, they were not able to make any profit, and therefore the remedy was to get a buyer which they succeeded in selling the intellectual property rights of two of its models to the shanghai Automotive Industrial Corporation to help in marketing it in China. These efforts were futile and the company was stopped production in 2005. The management and the government were in a position of rebranding and strategizing the business to avert the closure.

MG Rover’s Corporate Social Commitment Rovers

Corporate social responsibility (CSR) is the adherence by a company to carry out a business that is profitable economically, abide by the laws of the land, and support the ethical and social responsibility of the stakeholders. Rovers upheld part of the corporate social responsibilities though not to the expected levels. The legal responsibility was foregone when the company could not heed the governments’ plea to continue in production to safeguard massive employment opportunities.

The company’s top government is also said to have paid themselves massive salary amidst the economic situations of the industry. The economic responsibility was partly upheld when the company was geared towards the profitability of the company through diversification and looking for new investors to boost investment in the firm though this did not fully rejuvenate the company’s economic performance.

This however is not the only line of economic responsibility since they did not consider the larger picture of its contribution to the overall economy of the nation through job opportunities. Social responsibility was one of the areas which had loopholes in the company since there was no enough effort to promote the living standards of the involved parties instead emphasis was given to profitability only and that is why the company sparingly reduced its labor force.

Furthermore, the company did not involve in any philanthropic activity to help the society, and therefore it is evident that MG Rover was shot of the corporate social responsibility as expected of them. There was a potential for the company to motivate the employees ethically through incentives and better working conditions and as a result, the economic output of the company would have increased.

MG Rover’s fight against the government

MG Rover had gained immense power as a multinational and had outdone the government; therefore, their decisions were independent of the government’s wishes and advice. This was evident when the government decided to support the company by paying wages through loan awards. The company therefore had amassed great powers and went ahead to stop production and thus exposing the government to the critics.

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MG Rover saving jobs in Longbridge

The company directors in conjunction with the government and the involved investors are responsible for the preservation of jobs at Longbridge. This is because they are responsible for making decisions that lead to the sustenance of the company in operation. The employees therefore finally face the responsibility of losing jobs in such situations of industrial restructuring which is ethically wrong but have no choice since the responsible individuals have failed.

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StudyCorgi. (2021, April 30). MG Rover Group’s Car Production and Business Ethics. Retrieved from https://studycorgi.com/mg-rover-groups-car-production-and-business-ethics/

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StudyCorgi. 2021. "MG Rover Group’s Car Production and Business Ethics." April 30, 2021. https://studycorgi.com/mg-rover-groups-car-production-and-business-ethics/.

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StudyCorgi. (2021) 'MG Rover Group’s Car Production and Business Ethics'. 30 April.

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