Is Downsizing Ethical?

Position Paper Eleven

Is downsizing ethical?

I wouldn't necessarily say that downsizing is ethical or unethical. I think downsizing is sometimes necessary if it has to be done because every other option before downsizing was tried and did not work. I would say there is a ethical and a unethical way of downsizing. I believe that when a business has to downsize they need to have a plan well ahead of time and they need to implement the plan. I think if you have no other choice you should downsize and cut some jobs instead of wasting time and money that will eventually p ut you out of business and leave everyone jobless. Downsizing does have a dark side. The involuntary job loss experienced by terminated employees has a number of psychological, social, and financial effects on employees as well as their families.

The ethical approach to downsizing would be to document the reasons why downsizing is occurring. When you present the document to your employees it will help them understand why and by showing proof it should make it easier and it also lets your employees know that it's purely for business reasons (Duncan, Johnny 1999-2007). You should know the profile of your workforce. This will help employees know that it is not based on anything discriminating. You should be ready to defend the number of employees who are effected by downsizing (Duncan, Johnny 1999-2007). You need to know exactly how many and what positions in your company are being cut. Cost is also something you need to pay close attention to. This includes the cost of expert advice (including attorneys' fees), unemployment claims, severance pay, diminished employee productivity due to poor morale, and possible litigation costs (Duncan, Johnny 1999-2007). When downsizing you should determine if there are any contractual commitments or employee benefit plans that limit the employee's options (Duncan, Johnny 1999-2007). This includes employment contracts, collective bargaining agreements, written severance plans, and employee handbooks that may commit the employees following a particular procedure when undertaken a downsizing or termination (Duncan, Johnny 1999-2007). Before downsizing you should attempt voluntarily