11/30/2005

Ethics of Corporate Downsizing

So here we are all in our final days of college. Years have been spent in trying to get we hope to be considered a future of security in a profession. But startling enough corporate downsizing is becoming a trend that threatens this very job security that some value more than even money. As corporations and business in general try to come up with more and more ways to save money and boost stock prices through profits many of the corners have already been cut. So what is next? In an article that I found on internet it explains how companies are downsizing and laying off in order to save money. They are cutting upper managment and bringing in fresh blood at lower wages. Yes this does help the business financially but what about ethically? Here many of these people have devoted their lives at their jobs just to be let go for financial reasons. I find this a little startling. I guess the only upside for being close to graduation is that their will be a lot of job openings with these downsizing firms that are looking for fresh blood. But I still feel bad for those that lose their jobs. Downsizing

2 comments:

maddy said...

I can say that I can see this in my current job. Not so much downsizing, but the fact that younger people are being hired at lower wages and that upper management is getting cut. I work in the industry of ILC banks. Our new CFO is in his early 30’s and has worked for about 8 different ILCs and similar companies in his short career. People move in this business because they have to. When one bank is willing to pay more than the other even if it is just a few thousand more you take the job and keep moving up the ranks.

Dr. Tufte said...

-1 on Liz's post for errors of sentence structure.

I think the appropriate ethical response here depends on the extent of backloading of compensation. If there is backloading, then there has to be some higher threshold for retrenching of managment. If not, I don't see a problem with it.