Is Downsizing ethical and socially responsible?

downsizing is ethical according to the utilitarian approach, if in times of recession it is the least harmful option. Comparing to the consequences of bankruptcy, should Boeing have not reduced its work- force, downsizing effect was less harmful.

Why laying off employees is bad?

Laying off employees can have a significant negative effect on customer retention. When a company lays off its employees it sends out a message to customers that it is undergoing some sort of crisis. Fewer employees could mean delays in the delivery of goods and services, further alienating customers.

Can downsizing be done ethically?

Ethical downsizing is, first of all, a refusal to deny the complexity of the issues and evidence of the organization’s commitment to justice and human dignity.

How do layoffs affect employees?

Layoffs tend to increase employees’ levels of stress, burnout, and insecurity and to decrease morale, job satisfaction, and trust. Such perceptual changes are linked to greater turnover, diminished willingness of employees to help one another, and poorer job and company performance.

How do you ethically downsize a business?

Here are seven ways to inject downsizing ethics into your layoff process.

1. Don’t discriminate: It goes without saying, right?
2. Consider alternatives:
3. Do your homework before downsizing:
4. Provide assistance:
5. Treat employees with respect:
6. Speak up on behalf of your employees:
7. Distribute work fairly among surviving employees:

Is it better to fire or layoff an employee?

The key difference between being laid off vs. getting fired is that a layoff is the fault of an employer while a firing occurs because of the employee’s fault. Most workers get laid off because the company is trying to cut costs, reduce the staff, or due to mergers and acquisitions.

What are the consequences of layoff?

These include severance pay; paying out accrued vacation and sick pay; outplacement costs; higher unemployment-insurance taxes; the cost of rehiring employees when business improves; low morale and risk-averse survivors’ potential lawsuits and sabotage.

Is the termination ethical?

Termination is defined as the “ethically and clinically appropriate process by which a professional relationship is ended” (Younggren & Gottlieb, 2008, p. 500). This clearly implies that how the termination process is carried out has significant clinical and ethical implications.

Do layoffs have ethical implications?

But layoffs can have a serious impact on morale for the remaining employees and the idled workforce. There are also ethical implications in the layoff decision that reflect, at the core, corporate culture and values.

Are layoffs a good or bad strategy?

In these challenging economic times, layoffs are an all-too-common strategy to engage in cost control and business realignment. Executives and managers sometimes feel as if they have few other options. Others see the process as a convenient way to remove surplus employees and get out of certain lines of business.

What should you do when laying off employees?

When laying off employees, it is useful to determine which motivation is in control. If human capital is the primary driver in a business, then one will do everything possible to retain the knowledge, skills and history of the employees to help face the challenges ahead.

Can a union employee be laid off from a job?

All employees hold their jobs at the will of the employer, wherever the buck may stop for specific decisions. Even employees under a union or other contract can be laid off, though with more stringent requirements placed on the employer to make the cuts in an equitable fashion.