While downsizing has been widely studied, its connection to firm ownership status and the reasons behind it are missing from extant research. We explore the relationship between downsizing and family ownership status among Fortune 500 firms. We␣propose that family firms downsize less than non-family firms, irrespective of performance, because their relationship with employees is based on normative commitments rather than financial performance alone. We suggest that their actions are related to employee- and community-friendly policies. We find that family (...) businesses do downsize less irrespective of financial performance considerations. However, their actions are not related to their employee- or community-friendly practices. The results raise issues related to the motivations of large multinationals to␣downsize and the drivers of their stakeholder management practices. (shrink)

The purpose of our article is to present a qualitative empirical study from the ethical viewpoint. It aims at the theoretical conceptualization concerning the managers' decision-making of personnel dismissals in downsizing organizations. First we present and seek to motivate our research task. The importance of real business ethical issues as a starting point of business ethics research is emphasized. Second the main normative ethical theories and ethical decision-making models are presented. These form the loose framework for describing and interpreting (...) research interviews. After this the empirical findings are set forth. This part suggests that the managers explain the dismissals from different decision-making roles emphasizing different ethical orientation. The roles are called a rational and an independent manager, a marionette and an emotional individual. Our study suggests that the role of empathy in morality reveals an interesting and a necessary research topic for business ethics research. (shrink)

Downsizing is a process whereby human relations management emerges as a critical skill in its effective management. This paperis about perceptions of employees of a small-sized Turkish firm who survived successive downsizing decisions. It was found that downsizing affected the organizational justice-related perceptions of survivors. The questionnaire used to explore organizational justice-related perceptions involved three dimensions and was developed by Saunders and Thornhill (1999). Procedural, interactional and distributive justice-related perceptions of survivors were influenced by the way management (...) handled the process. Management credibility, communication and commitment were other variables studied. The findings supported the view that downsizing not only affects the victims but also the survivors. (shrink)

Package downsizing is a practice where the package content is reduced without changing the package or the price of the product. In a market that is defined by ‘hyper-competition,’ package downsizing is often practiced by marketers to effect an invisible price increase for their products. Although marketers may maintain that providing, the legally required, quantity indication on the package is adequate for customers to make logical and informed choices, research indicates that consumers often do not consult quantity indications (...) on packages but use alternative methods (e.g., visual impressions of the package size, total package price, or previous purchase experience) to judge product quantity and to calculate product value. As a subtle means, package downsizing therefore has the potential to mislead customers in the buying process due to an unfavorable balance of information within the dyad. This could give rise to serious moral and ethical consideration. In this paper, we examined various issues related to package downsizing, such as why sellers resort to this type of practice, consumer vulnerability to package downsizing, as well as the extent of protection offered to consumers by the existing laws and regulations with respect to product packaging. Finally, we examined the ethics of package downsizing using the existing legal, moral, and professional ethical standards as well as the principle of equivalence. Our analysis indicates that package downsizing, as it is practiced by the marketers and sellers today, is unethical as far as the consumers are concerned. (shrink)

American business have experienced numerous mergers and acquisitions in the 1980's. The downsizing of American companies has evolved as a way of business. Can the downsizing be humane? What are some alternatives to downsizing? Is there a downsizing model available? What role does outplacement have in the downsizing of American companies? These and other issues are addressed in the article.

What is the proper role for Theory in literary study? An aid to reading? Or source of insight into the world beyond the text? Half-heartedly apologizing for the political-theoretical excesses of the past two decades, Gayatri Chakravorty Spivak and Jean-Michel Rabaté offer up more of the same, with Spivak in particular recycling the ideas of others so as to revive literature as a source of political "Othering." Noting the ways in which Theory silences the sounds of "Others," I argue Valentine (...) Cunningham's placing of Theory permits both texts and others to speak, and in so doing, teaches us to listen. (shrink)

Downsizing due to COVID-19 and its consequences on laid-off employees has attracted the attention of many researchers, around the globe. However, the underlying mechanisms that explain the effects of COVID-19 downsizing on the employees who have survived cutoffs remain underexplored. Grounded in the conservation of resources theory, this manuscript aims to study the causal path through which COV-DS reduces the survivors’ affective commitment. The current study proposes the mediation of survivors’ job uncertainty, stress, and organizational identification between COV-DS (...) and survivors’ affective commitment. This study also posits the moderating role of transformational leadership between COV-DS and both the mediators. The extant study has employed WARPED partial least square WARP PLS 7 and Hayes Process Macro to test the hypothesized relationships. Using the sample of 274 employees from the private sector of Pakistan, it was found that job uncertainty’s stress strongly mediates the relationship between COV-DS and survivors’ affective commitment. While mediation of survivors’ organizational identification was not proven to be significant. However, with the moderation of transformational leadership, both the mediators were proven to be significant. (shrink)

Virtuousness refers to the pursuit of the highest aspirations in the human condition. It is characterized by human impact, moral goodness, and unconditional societal betterment. Several writers have recently argued that corporations, in addition to being concerned with ethics, should also emphasize an ethos of virtuousness in corporate action. Virtuousness emphasizes actions that go beyond the “do no harm” assumption embedded in most ethical codes of conduct. Instead, it emphasizes the highest and best of the human condition. This research empirically (...) examines the buffering and amplifying effects of virtuousness in organizations. The study hypothesizes that virtuousness has a positive effect on organizations because amplifying dynamics make subsequent virtuous action more likely, and buffering dynamics reduce the harmful effects of downsizing. The study reveals that two types of virtuousness – tonic and phasic – are associated with these effects. (shrink)

Within the context of employee rights and management social responsibility, this paper identifies and explores three ethical dimensions of downsizing. Using ANOVA and Scheffe post-hoc statistical techniques, groups involved in the downsizing decision making process were compared with groups affected by the process on each ethical dimension. Results indicated that those affected by the process attached greater ethical significance to these dimensions than those who were involved in formulating and implementing/communicating downsizing decisions.

Downsizing remains a topic of great interest to both academics and practitioners. Yet, the impact of layoff decisions on perceptions of corporate social responsibility (CSR) has hardly been studied. We examine the impact of responsibility of business leaders making these layoff decisions, and characteristics of the downsizing implementation on convergence and divergence in (1) CSR perceptions, (2) victims’ perceptions of fairness, and (3) survivor commitment, in four countries. Using an experimental design, sixteen scenarios were distributed to (1) 163 (...) managers in Estonia, (2) 152 MBA students in India and 125 MBA students in France, and (3) 186 (non-traditional) undergraduate students in the USA. Results suggest that when top managers are attributed with the responsibility for downsizing, the resulting perceptions of CSR are negative. A similar pattern of results is obtained for victims’ perceptions of fairness and survivor commitment. In addition, although there are differences in effect-size based on differences in power distance, these results hold good (are similar) across the four countries, from four different society clusters. We discuss implications, limitations, and future research directions. (shrink)

The twentieth century has marked transitions in the developed world from an agricultural to an industrial to an information-based society. As the primary work force has evolved from farmers to laborers to knowledge workers, the bases of wealth, power and social interaction have moved from land to mass production to e-commerce. Critical writings from Drucker''s The Age of Social Transformation to Fukuyama''s The Great Disruption, have discussed these transitions and their impact on values. This paper places the issue of (...) class='Hi'>downsizing in the context of those discussions, exploring the ethical impact and role in those transitions of the author''s Four Horsemen of Downsizing: Suspicion, Acquisition, Budget-cuts, and Termination. Finally, it discusses Western society''s predilection to use language to construct an epistemological Tower of Babel and the impact that may have on Fukuyama''s conclusion that a Great Reconstruction based on Western values will replace the Great Disruption. (shrink)

This essay examines the contemporary masculinity of straight, white men in the business classes of the United States as a category of identity. I argue that this form of masculine identity is currently in crisis, and, through a reading of the 1995 film Toy Story, develop an argument about the value of ‘downsizing’ masculinity in an era of diminished work expectations.

Business Ethics: A European Review, EarlyView.

This study explores the downsizing propensity of family and non-family firms by considering their territorial embeddedness during both periods of economic stability and financial crisis. By drawing on a panel dataset of Spanish manufacturing firms for the period 2002–2015, we show that, all things being equal, family firms have a lower propensity to downsizing than non-family firms. When considering the effect of territorial embeddedness, we found that territorially embedded family firms have an even lower propensity to downsizing (...) than their non-family counterparts. Furthermore, the concern of territorially embedded family firms for their employees’ welfare was particularly pronounced during the years of the global financial crisis. This result is explained by the existence of socially proximate relationships with the firms’ immediate surroundings, based on similarity and a sense of belonging, which push deeply rooted family firms to treat their employees as salient stakeholders during hard times. Overall, our study stresses the importance of local roots in moderating the relationship between family firms and downsizing. (shrink)

While studies have investigated the moral issue associated with downsizing, little research attention has been directed to leaders’ behaviors that result in organizational decline and eventually lead them to make a downsizing decision. This study tests a sequence-based model to assess (1) the impact of leaders’ risk-aversion and self-centeredness on organizational decline and downsizing and (2) the impact of organizational and industry decline on organizational downsizing. We address a gap in the decline literature that has only (...) implicitly alluded to leadership characteristics as forerunners of decline. Data collected from 85 firms indicate that both leadership risk-aversion and self-centeredness are significantly related to organizational decline. This results in intensified organizational downsizing. However, industry decline affects downsizing more significantly. (shrink)

Downsizing has become a significant public issue that has not yet been significantly studied by business ethicists. It is proposed that reasonable social and psychological contracts bound the moral free space of managers contemplating downsizing; the degree of constraint is also dependent on the organization's resource munificence. A framework for considering the extent of managerial moral free space and implications thereof for managerial practice are offered.

Downsizing has become a significant public issue that has not yet been significantly studied by business ethicists. It is proposed that reasonable social and psychological contracts bound the moral free space of managers contemplating downsizing; the degree of constraint is also dependent on the organization's resource munificence. A framework for considering the extent of managerial moral free space and implications thereof for managerial practice are offered.

This article discusses successive positions of the Frankfurt School, contrasts them to the unfolding ideas of Castoriadis and argues for a critical theory centred on a concept of autonomy, but aware of the obstacles and complications inherent in social–historical reality and its modern configuration. To clarify this perspective, we need a concept of society that distances itself from the Parsonian paradigm, more so than recent theorists of the Frankfurt School have done. The critique of over-integrated images of society, developed by (...) various sociologists in the 1970s and 1980s but not properly assimilated by the mainstream of the discipline and never taken on board by Frankfurt theorists, is an important source of reference, and it can be taken further in the light of Castoriadis’s reflections on the social–historical. The result is a definition of autonomy as a capacity of explicit and unlimited interrogation, confronted with its own hubristic temptations in the context of a multidimensional social world. (shrink)

The purpose of this study was to examine how employees’ experiences, in the wake of an organization’s downsizing, would influence employee–organization relationships and the employees’ decisions to remain with the organization. In investigating survivors’ responses to downsizing, informational justice was chosen as an antecedent of the survivors’ intentions to leave and Organization–Public Relationship (OPR) was hypothesized to function as a mediator between informational justice and turnover intentions. The results revealed significant associations between informational justice and OPR as well (...) as associations between OPR and turnover intentions in a downsizing context. Also, it was shown that OPR mediates the relationship between informational justice perceptions during the downsizing and turnover intentions after the downsizing. (shrink)

Open peer commentary on the article “A First-Person Analysis Using Third Person-Data as a Generative Method: A Case Study of Surprise in Depression” by Natalie Depraz, Maria Gyemant & Thomas Desmidt. Upshot: In my commentary, I try to examine whether, and how, the approach presented by Depraz, Gyemant & Desmidt lines up with Varela’s neurophenomenology. I focus on the neural and phenomenological dimensions, respectively, arguing that the end result is somewhat of a mixed bag: if it paves the way for (...) a fruitful expansion of the neuro-aspect, it seems to cast a dubious, perhaps even distortive, shadow on the phenomenological aspect. (shrink)

Abstract:By combining normative philosophy and empirical social science, we craft a research framework for assessing differential expectations embodied in normative conceptions of the economic social contract in the United States. We argue that there are distinct views of such a contract grounded in individualist and communitarian philosophical ideologies. We apply this framework to organizational downsizing, postulating that certain human resource practices, in combination with the respective ideological orientations, will affect perceptions of the justice of downsizing policies.

Fundamental theological and ethical themes of Luther's thought and tradition provide a basis for appreciating both the role of business in God's providential design and the importance of occupation for living out one's Christian vocation. These same insights establish the ethical basis for a critical appraisal of the current practice of downsizing and its negative impact on the quality of individual lives and whole communities. While Lutheran ethics is realistic about the ambiguities of life, it is also an ethic (...) of compassionate love seeking justice in the world of business as in all of life. (shrink)

Fundamental theological and ethical themes of Luther's thought and tradition provide a basis for appreciating both the role of business in God's providential design and the importance of occupation for living out one's Christian vocation. These same insights establish the ethical basis for a critical appraisal of the current practice of downsizing and its negative impact on the quality of individual lives and whole communities. While Lutheran ethics is realistic about the ambiguities of life, it is also an ethic (...) of compassionate love seeking justice in the world of business as in all of life. (shrink)

Fundamental theological and ethical themes of Luther’s thought and tradition provide a basis for appreciating both the role of business in God’s providential design and the importance of occupation for living out one’s Christian vocation. These same insights establish the ethical basis for a critical appraisal of the current practice of downsizing and its negative impact on the quality of individual lives and whole communities. While Lutheran ethics is realistic about the ambiguities of life, it is also an ethic (...) of compassionate love seeking justice in the world of business as in all of life. (shrink)

The paper attempts to provide a basis for exploring the continued relevance of Catholic social teaching to business ethics, by interpreting the historic development of a Catholic work ethic and the traditions of Catholic social teaching in light of contemporary discussions of economic globalization, notably those of Robert Reich and Peter Drucker. The paper argues that the Catholic work ethic and the Church's tradition of social teaching has evolved dynamically in response to the structural changes involved in the history of (...) modern economic development, and thus is well poised to speak to the ethical challenges implicit in the advent of a knowledge-based society. In order to test this thesis, the author sketches an approach to the ethicalchallenge of corporate downsizing that he believes illustrates the continued relevance of Catholic social teaching to business ethics. (shrink)

By combining normative philosophy and empirical social science, we craft a research framework for assessing differential expectations embodied in normative conceptions of the economic social contract in the United States. We argue that there are distinctviews of such a contract grounded in individualist and communitarian philosophical ideologies. We apply this framework to organizational downsizing, postulating that certain human resource practices, in combination with the respective ideological orientations, will affect perceptions of the justice of downsizing policies.Living up to one’s (...) word is a decisive measure of moral character. Within the microsocial realm of the family, promises and commitments derive their social force and cultural meaning from the idea that love or biology binds people together in an absolute way. But outside of this world, in the larger society, the only thing binding people together is a sense that there is a social contract, a set of common obligations held collectively by society as a whole. But today’s workers say no one seems to care whether these promises are kept. (shrink)

In a weak economy, both managers and scholars may seek an ethical framework to guide decisions about layoffs and downsizing. Agency and stakeholder theories offer limited practical guidance about ethical norms. This paper looks to the Talmud, an ancient compilation of law, legend, and critical analysis for insights into the modern employment relationship. In its method of analysis and in its specific discussion of the treatment of employees, the Talmud provides an approach and a framework for assessing the ethical (...) standing of particular layoff decisions. The article introduces readers to elements of Talmudic analysis and then applies that framework to particular kinds of corporate downsizing decisions. (shrink)

Corporate executives, at the behest of Wall Street, have embraced the heresy of upsizing short-term shareholder profits by downsizing the long-term work force. This restructuring of corporate America, which views the corporation as an investment organization rather than a social organization, has created an ethical quandary by removing from the equation a sense of larger-purpose. This paper proposes a new paradigm, LIFESIZING, to address the issues raised by this ethical quandary. The paper will explore the effect the creation of (...) fictitious personhood (Corporations, Government, Wall Street, Unions, etc.) has had on the concept of personal responsibility and common good when responsible individuals are but transient members of such a legal entity. It will briefly recap the history of downsizing, the practice of treating workers as an expense rather than a capital asset, stakeholder theory, and the rise of a "me-first" culture. It will then define and apply LIFESIZING to both the individual and the corporation in an attempt to provide a sense of balance missing from current discourse. (shrink)

. In an era of downsizing and disposable ethics, there is a need to redefine the role of business in society. Central to such a discussion is the frame of reference of the entrepreneur. A traditional business model defines entrepreneurship based on endowing resources with new wealth producing capabilities. This paper defines entrepreneurship as a calling to endow resources with new value. In support of the impact such a distinction would have on repositioning the role of business in society, (...) the paper weaves together writings from the Pope, Drucker, and Lonergan, with emphasis on applying Lonergan’s discussion of bias to the discussion of ethics in business. Adapting the term, “lifesizing”, which was coined by the author in a previous article, to entrepreneurship, the paper takes the position that lifesized entrepreneurship can act as a catalyst similar to Lonergan’s cosmopolis and play a key role in countering bias and repositioning the role of business in society. (shrink)

Although studies in organizational storytelling have dealt extensively with the relationship between narrative, power and organizational change, little attention has been paid to the implications of this for ethics within organizations. This article addresses this by presenting an analysis of narrative and ethics as it relates to the practice of organizational downsizing. Drawing on Paul Ricoeur's theories of narrative and ethics, we analyze stories of organizational change reported by employees and managers in an organization that had undergone persistent (...) class='Hi'>downsizing. Our analysis maintains that the presence of a dominant story that seeks to legitimate organizational change also serves to normalize it, and that this, in turn, diminishes the capacity for organizations to scrutinize the ethics of their actions. We argue that when organizational change narratives become singularized through dominant forms of emplotment, ethical deliberation and responsibility in organizations are diminished. More generally, we contend that the narrative closure achieved by the presence of a dominant narrative amongst employees undergoing organizational change is antithetical to the openness required for ethical questioning. (shrink)

Practical wisdom eliminativism has recently been proposed in both philosophy and psychology, on the grounds of the alleged redundancy of practical wisdom (Miller 2021 ) and its purported developmental/psychological implausibility (Lapsley 2021 ). Here we respond to these challenges by drawing on an improved version of a view of practical wisdom, the “Aretai model”, that we have presented elsewhere (De Caro et al. 2021 ; Vaccarezza et al. 2023 ; De Caro et al. forthcoming ). According to this model, practical (...) wisdom is conceptualized: (i) as virtuousness _tout court_, i.e., as the _ratio essendi_ of the virtues, and (ii) as a form of ethical expertise. By appealing to the first thesis, we counter the charge of psychological implausibility, while we rely on the second thesis to address the accusation of redundancy. In conclusion we argue that the Aretai model implies a significant paradigm shift in virtue ethics. Practical wisdom emerges as both necessary and sufficient for virtuousness, thereby downsizing – without eliminating entirely – the role that individual virtues play in our ethical lives. (shrink)

While facing cuts, downsizing and revenue losses, media organizations experience paradoxical demands in being organized for print or linear production with daily deadlines and simultaneously striving to be ‘digital first’ and produce and publish stories online on a continuous basis throughout the day. In this paper, we describe efforts applied when introducing the metaphor flowline in a medium-sized newspaper organization in Norway with the aim of aligning their production and publishing processes to readers’ consumption of online news. Both the (...) production volume of journalistic content, reader consumption and the newsroom workers’ experience of mastering their everyday work life increased dramatically in a very short time. The involvement of a temporary autonomous team in the planning and designing of a test pilot aiming to make flowline “as practice”, was integral to the digital transformation success, allowing for participative action across newsroom boundaries. Based on the empirical findings from the local newspaper organization and drawing on theories on liminality and metaphorical work, this article presents a set of six interrelated steps incorporating a structure for autonomous teams and their role in enabling lasting change in organizations facing digital transformation. (shrink)

This study analyses to what extend and under what circumstances layoffs are accepted in Germany. Principles of distributive justice and rules of procedural justice form the theoretical framework of the analysis. Based on this, hypotheses are generated, which are tested empirically in a telephone survey conducted between East and West Germans in 2004 (n = 3036). The empirical analysis accounts for the different points of views of implicated stakeholders and impartial spectators. Key findings are: (1) The management of a company (...) can increase the acceptance of layoffs if the employees get some participation rights. (2) For impartial spectators generous compensation for those made redundant leads to a higher degree of perceived fairness. But job alliances are not even preferred to layoffs without measures to soften the blow of job loss. (3) Implicated stakeholders accept job alliances and perceive wage cuts as more fair than layoffs. However, compensation does not have the expected impact. (shrink)

This paper presents the problem of workers lay off and loss along with their exit from the organization its key competencies - skills and knowledge. Importance of management of key competencies was described. The paper also presents outplacement as a way to maintain core competencies even during reducing the human resources within the enterprises.

This paper addresses the issue of the multiplicity of various grades of discernibility that can be defined in model theory. Building upon earlier works on the subject, I first expand the known logical categorizations of discernibility by introducing several symmetry-based concepts of discernibility, including one I call “witness symmetry-discernibility”. Then I argue that only grades of discernibility stronger than this one possess certain intuitive features necessary to individuate objects. Further downsizing of the set of non-equivalent grades of discernibility can (...) be achieved by stipulating that any relation of discernibility should be applied only to those pairs of objects which have been previously distinguished from the rest of the universe. Restricting discernibility to pairs of objects satisfying this condition gives an additional bonus in the form of restoring the transitivity of some types of indiscernibility which have been known to be non-transitive. (shrink)

In the aftermath of scandals such as those at Enron and WorldCom, there is a growing suspicion of the corporate world. For this reason it is more important than ever for firms to maintain a good reputation. In Building Reputational Capital, Kevin T. Jackson offers a practical guide to taking the high road--the only path that leads to lasting success. Based on extensive research and real-world experience, Building Reputational Capital reveals basic principles of integrity and fairness with which firms can (...) build an enduring reputation. More than image, a firm's reputation is a form of capital often neglected in the boardroom and overlooked in conventional analyses of financial statements. Speaking directly to the work experience of real people in practical business settings, Jackson couples each principle with straightforward actions that drive management systems, and he provides tested strategies--from downsizing techniques to e-commerce tips--that cultivate the hidden power of a good reputation. He outlines the advantages of a superior reputation, describes the vital role the firm's leader must play, offers ways to build and protect your reputation on the Internet, and shows how to rescue your reputation once disaster hits. Perhaps most important, he shows how to strike the right balance of virtues like authenticity, honesty, responsibility, and stewardship of the environment, employees, and the economy. Highlighted with real-life success stories--from giants like Hewlett-Packard to small firms like Thanksgiving Coffee Company, Building Reputational Capital offers a simple but effective guide for executives, managers, entrepreneurs, legal professionals, and corporate consultants. (shrink)

Although studies in organizational storytelling have dealt extensively with the relationship between narrative, power and organizational change, little attention has been paid to the implications of this for ethics within organizations. This article addresses this by presenting an analysis of narrative and ethics as it relates to the practice of organizational downsizing. Drawing on Paul Ricoeur’s theories of narrative and ethics, we analyze stories of organizational change reported by employees and managers in an organization that had undergone persistent (...) class='Hi'>downsizing. Our analysis maintains that the presence of a dominant story that seeks to legitimate organizational change also serves to normalize it, and that this, in turn, diminishes the capacity for organizations to scrutinize the ethics of their actions. We argue that when organizational change narratives become singularized through dominant forms of emplotment, ethical deliberation and responsibility in organizations are diminished. More generally, we contend that the narrative closure achieved by the presence of a dominant narrative amongst employees undergoing organizational change is antithetical to the openness required for ethical questioning. (shrink)

In his famous 1982 paper, Allen Newell [22, 23] introduced the notion of knowledge level to indicate a level of analysis, and prediction, of the rational behavior of a cognitive arti cial agent. This analysis concerns the investigation about the availability of the agent knowledge, in order to pursue its own goals, and is based on the so-called Rationality Principle (an assumption according to which "an agent will use the knowledge it has of its environment to achieve its goals" [22, (...) p. 17]. By using the Newell's own words: "To treat a system at the knowledge level is to treat it as having some knowledge, some goals, and believing it will do whatever is within its power to attain its goals, in so far as its knowledge indicates" [22, p. 13]. In the last decades, the importance of the knowledge level has been historically and system- atically downsized by the research area in cognitive architectures (CAs), whose interests have been mainly focused on the analysis and the development of mechanisms and the processes governing human and (arti cial) cognition. The knowledge level in CAs, however, represents a crucial level of analysis for the development of such arti cial general systems and therefore deserves greater research attention [17]. In the following, we will discuss areas of broad agree- ment and outline the main problematic aspects that should be faced within a Common Model of Cognition [12]. Such aspects, departing from an analysis at the knowledge level, also clearly impact both lower (e.g. representational) and higher (e.g. social) levels. (shrink)