Business Law Chapter 57 Homework I have become interested in this issue because

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subject Authors Dean Bredeson

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MODULE 57: Outsourcing Yourself
Core Module Issues:
Do people have any obligation to remain in communities?
If so, do poor economic times change those obligations?
Module Teaching Notes
“Outsourcing” was a hot topic in the 80s and 90s. Most textile jobs, for example, left the United
States as companies sought cheap labor in other countries.
Outsourcing is still common, but it seems to receive less media attention today.
Bad things can happen to communities when large numbers of jobs are lost, and a part of the
second unit of this book looked at those issues, especially whether or not corporation owed any
duty to communities.
This module looks at a novel issue: do PEOPLE owe a duty to their communities?
What if a person can get a “better deal” somewhere else? A better job, a better tax burden, better
weather, etc. Is a person ever obligated to stay loyal to a hometown?
I have become interested in this issue because there is an accelerating exodus out of some states
as millions of people relocate to the south and southwest. Texas just gained four seats in the
House. New York and Ohio lost seats.
The recession seems to be driving increasing numbers of people to make a regional move.
And if a town loses, say, 5000 residents as a result of a plant closure, is the impact really any
different than if 5000 residents leave over time for greener pastures?
And so I wonder whether there are any ethical principles to be divined here. I will admit that I am
being much more speculative with this module than with others in the book. If that bothers you,
there is no reason not to skip this module and just assign the next one. As I said early in this
guide, I have written more modules than I expect you will need for your course, and I encourage
you to pick and choose the modules that you find most interesting.
But if you would like to explore this new issue, which may boil down to whether or not stakeholder
theory can apply to a person, and not just to an organization, then the scenario in this module may
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make for an interesting discussion.
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Discussion Points for Scenario Questions
1. Do Tom and Meg have any ethical obligation to stay put and not move to Texas? Why or
why not?
A. YES WHAT ARE THE OBLIGATIONS? HOW FAR DDO THEY
STRETCH?
2. Would taxes ever drive you to consider moving to another state, or would it be a nonissue in
your own life?
A. YES HOW MUCH WOULD YOU HAVE TO “SAVE” IN THE NEW STATE
TO DRIVE A MOVE?
3. If Tom and Meg owned a small business that employed ten people, would they have an
obligation to stay put and not relocate the business to Texas?
A. YES WHY?
B. NO WHY NOT?
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4. Many states today are broke, or nearly so. If a state runs out of money from its usual sources,
how much should it raise taxes, and how much should it cut spending? Allocate 100 percent
between those two options. (In other words, fill in 50 percent and 50 percent if you think states
should do both evenly, 100 percent and 0 percent if you think states should entirely focus on
cutting spending, etc.)
_____ Cut Spending _____ Raise Taxes
5. Assume that you have a job offer from a large company that has branches all over America,
and the company will assign you to the branch location of your choice. Rank the following from
#1 (most important to you) to #7 (least important to you) in deciding where you will live.
_____ Low Taxes
_____ Good Weather
_____ Close to Family
_____ Low Crime Rate
_____ Good Public Schools
_____ Pleasant Scenery
_____ Entertainment Options/Nightlife

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