Case Study of Northeastern Mutual Life Case Study

A presentation of a case study in ethics regarding the company of Northeastern Mutual Life.
# 144724 | 1,473 words | 3 sources | APA | 2010 | CA
Published on Sep 28, 2010 in Business (Companies) , Business (Human Resources) , Ethics (General)

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This paper presents a case study in ethics of Northeastern Mutual Life, a company that offers a full range of financial service products across the country and in many parts of the world. The paper focuses on the company's background, all stakeholders affected, the ethical dilemma in question, possible alternatives, and a recommended solution. The paper explores Northeastern Mutual Life's challenge of facing the possible need for layoffs while maintaining ethical practices. The paper questions whether or not employees should be laid off in the first place, asserting that it is unethical to downsize a company for the sole purpose of raising profits. The paper concludes with suggested solutions, including laying off younger employees first because of their generational tendency to change jobs frequently.

Table of Contents:
Company information
Pension plan
Ethical Issues
Identification of alternative
Solutions to the problem

From the Paper:

"Gordon Gillingham, president and CEO, is in charge of the layoffs. He is faced with difficult questions concerning the pension plan. Also involved is the Senior Management Partnerships (SPM), they are the ones who made the decision to cut 20% of the working staff. Also involved directly is the administration staff, 20% of them will have to be laid off while the other 80% have to deal with the stress and uncertainty of the future. There are also the shareholders; the "owners" of the company, which includes Calgary Insurance Group. If nothing is done to cut costs, then they will receive a lower return on investment and in turn may damage the company's reputation, a factor strongly influencing their sales. Other insurance companies may benefit from Mutual Life's decision, either by looking like a more stable company or they may try recruiting some of the experienced personnel that were laid off. There is also the Pension Commission of Alberta, if petitioned to, the employees can ask for a partial windup. Last but not least, the customers may also be affected. If not able to cover the costs, price of insurance might have to go up."

Sample of Sources Used:

  • Mark, Ken., (2003-06-04). Cases in Business Ethics, Northeastern Mutual Life: Preparing for Employee Terminations. California: Thousand Oaks.
  • Orlando, John., (1999-04). Honest Work, The Ethics of Corporate Downsizing. New York: Oxford University Press
  • Burns, James Macgregor. Wisdom Quotes. Jone Johnson Lewis. Retrieved [March 14th 2010] from [

Cite this Case Study:

APA Format

Case Study of Northeastern Mutual Life (2010, September 28) Retrieved March 28, 2020, from

MLA Format

"Case Study of Northeastern Mutual Life" 28 September 2010. Web. 28 March. 2020. <>