Entry # 6

      This entry is another case study – but this time, it is the case study of the Malden Mills Fire Incident. This is the case study we reported on. Malden Mills is a family-owned fabric business located at Lawrence, Massachusetts and when the fire broke out in the early evening of hours of December 11, 1995 the fire has cleared out many of the textile businesses in the said place. Aaron Feuerstein was running the business during that time. Due to the high labor costs and outdated factories, many of the manufacturing businesses relocated but Malden Mills stayed. With Malden Mills running, they contributed approximately $100 million a year into the local economy. It would seem too good to be true for this business that they were able to operate with such a good outcome after the disaster. It turns out that things didn’t work out after all as Malden Mills had to declare bankruptcy after a few years.

     I admire Feuerstein’s decision of staying and providing jobs to the locals instead of moving   overseas for greener pastures. If he did so, it will cost a lot to open another factory, hire new workers, arrange transportation expenses with their customers, but labor cost will be lower and there will be tax reduction. He may have been able to recover the losses that he incurred from the disaster. He also could’ve chosen to close the factory altogether – just pay the damages to the employees and customers and close indefinitely. But he decided to continue his business at Massachusetts. I think Feuerstein is really just a generous man. He risked losing profit just to continue his operations there. I think the reason why he decided to continue to operate there is because he feels empathy for the employees. What if that employee’s family have worked with his family for generations? What if he was raised by his family to treat their workers as family and fairly? That may be one of the factors that contributed to his decision.

      Further research told me that he was paying the unemployed workers while the factory was being rebuilt. I thought that decision was kind of stupid in his part, as there were no forms of revenue coming whatsoever but he continued to pay workers that have no use to him as of that moment. But because of that action, when he filed for bankruptcy, his creditors and some government subsidiaries helped him to achieve solvency. I guess good things really do happen to those who do good to others.

      If I were put in his shoes, I might’ve chosen to do the same, except pay the workers while the factory was being rebuilt. I am a businessman, after all. It is my goal to earn money and it is just not really logical for me to do something like that. I would’ve chosen to stay because I feel compassion towards my employees and I will always have that small part of me that will think “I can still revive the textile industry here in Massachusetts. After all, I’m the only one staying here so it would be easy for me since there are less competitors, right?” In the end, if it doesn’t work out after all, I will take responsibility. As long as I know that I’ve done something to help revive the industry and give jobs to the locals in my area, I’ll be happy.

     Of course, my views will change the more I learn about how businesses work but it will be hard to change my values. They were instilled unto me since I was young and I don’t think no amount of money or glory will immediately change my views about certain things.