Was the promise legally enforceable? & was the promise morally enforceable?
A. Many ethical theories like Utilitarianism, Deontology and Feminism will not support the action of WAC and its HR as ethical. According to Utilitarianism theory, when such actions are taken against Thomson, the same is communicated to the dealers. This will let them know the lack of trust and the competitive mindset of the Management. This makes them demotivated, as a result, they would sooner or later want to leave the company. This is a huge loss to the Company. Applying Deontology, the actions of WAC and the HR represent that they are deciding on the basis of consequences (Thomson might try to hold WAC to Pending’s Promise). This violates the basic promise of the theory which is based on the good will of Humans and not the consequences. It also violates the categorical imperatives of Kant.
Is it right to downsize Thompson?
A. Considering the ethical theories as mentioned above, it is not morally correct to downsize Thomson.
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