Case Study: When the Golden Rule Yields No Gold

Abstract

Zach Jordan (a real person but not his real name), the owner of a small business in Connecticut, may not be able to compete any longer in the spring manufacturing industry. Overseas competition has put him at a significant cost disadvantage, and the losses continue to mount year after year. At the same time, he’s deeply committed to care for his handful of employees — people who are dependent on him and who he considers “family.” Now at a crossroads, he faces an apparent dilemma: (1) gamble $200,000 on rent to extend the jobs of his employee family or (2) liquidate the business while it’s still worth something, sending his employees to the unemployment line during a bad economy. There may be other, more attractive options and identifying them and selecting from among them is largely what this case is about. Framed from a Christian worldview, the case comes down to this: In an intensely competitive environment, how can we faithfully serve employee needs while effectively stewarding the business?