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English Patient Chinese Takeaway

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Submitted By AmyTang
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Mg Rover Collapse
Seminar 1:

The English Patient and the Chinese takeaway: examining social responsibilities in the MG Rover collapse

1a. Main Stakeholders:
- Phoenix Group
-Longbridge site owners
- Employees (6500, at Longbridge
-Around 9-12,000 employees from West Midlands
-BMW/shareholders from BMW
-financial industry in general
-Unions
-Local communities
-Chinese state owned Shanghai Automotve Industrial Corporation (SAIC)
-Chinese company Nanjing Automotive
-Deloitte
-Creditors
-Media
-Government
-British Tax Payers
-Competitors
-Suppliers of Longbridge

Theory

Mitchell's framework of stakeholder salience:
‘Determines the importance of stakeholders and categorizes them on the basis of salience, defined with regard to the attributes Power, Legitimacy and Urgency’ (Grisseri & Seppala, 2010)

Stakeholder Power Legitimacy Urgency
‘Phoenix Group’ H H H
Employees at Longbridge L H L
BMW /Shareholders H H H
Deloitte L H L
Unions
MG Rover customers (dealers) L L L
SAIC H H H
Nanjing Automative M M M/H
British Government M/H H M/H
Creditors
Competitors of MG Rover
Media H H M/H
Local Community L L/M L
Suppliers of Longbridge L/M L/M L

2. MG Rover's actions in the case in terms of Carrol's Pyramid of CSR (responsibilities and ranking, appropriate or inappropriate in this situation, could it have done more to treat its employees ethically?)

Theory

Carrol's Pyramid of CSR:
‘Corporate social responsibility includes the economic, legal, ethical and philanthrophic expectations placed on organizations by society at a given point in time’ (Crane & Matten, 2010)

MG Rover's responsibilities in the case

a-Economic Responsibilities (Most important)
Provide work
Profit
RTS

b-Legal Responsibilities (second)
Pensions
Taxes
Loans to financial institutions (suppliers, banks, employers)

→In Rover’s case

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