Question
Read During the recession of 20082009, many reputable companies suffered bankruptcies while others struggled to survive. Of those that did remain, some chose to reduce
Read During the recession of 20082009, many reputable companies suffered bankruptcies while others struggled to survive. Of those that did remain, some chose to reduce the size of their workforces significantly. Imagine yourself helping run a company during such a recession. Imagine the company that has been doing well, posting profits every quarter, and showing a sustainable growth expectation for the future; however, the general uneasiness in the market has caused the companys stock price to fall. In response to this problem, the CEO decides to lay off some of her employees, hoping to cut costs and to improve the bottom line. This action raises investor confidence and, consequently, the stock price goes up.
- Was there any kind of ethical lapse in laying off the employees, or was it a practical decision necessary for the survival of the company?
- Why or why not?
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