– does a company have a greater responsibility to its employees or to its customer?
Very good question.
In the USA if a company goes broke owing money to its customers and also pay and benefits to its employees, which class of debt has priority for the limited company funds available to the liquidator.
I am not a lawyer, but I think that secured debt to financial institutions comes first, secured debt to suppliers second, customers third, then unsecured debts in the same order, and last of all, if there is any money left, back wages, overtime, holiday pay, etc. to employees.
Ist that true?
If so, Why? Why are debts to employees not considered to be the most important of all.
Does this answer the question?
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