Case study in ethics

¶ … Ethics

I do believe that George's decision to be open about the layoff was the ethical thing to do, although it had some unfortunate consequences for himself. When a layoff is necessitated in business, it is vitally important that all interested parties know about this as soon as possible to enable them to begin making plans for an alternative future. Not telling them would be unethical, as it would significantly disadvantage them in both the practical and emotional sense. The shock of a layoff is mitigated when there is time to process it and subsequently make rational plans.

I do not believe that there are situations in which such information should be kept from interested parties. However, in a highly sensitive situation where the company is very prominent or where the information could result in harm, it could be treated differently. George could for example have called a meeting with all the employees and unions and emphasized the importance of keeping the information secret until a public announcement could be made. Although this does not guarantee a better outcome than the one related, at least an attempt is made to contain potential damage and certainly to keep the press at bay until a proper plan is formulated.

I do not think that the nationality of a workforce should play any role in job cuts. George was right to handle the situation as he did. It was a business decision. To favor Americans above their Mexican and Scottish counterparts would send a clear message of prejudice and severely damage the company's employee relations in the long-term. Furthermore, cutting jobs unnecessarily in these countries, while keeping jobs that should be cut in the United States would do nothing to solve the problem and indeed only create new problems.

I believe that George must have said something to this effect in his answer. He would have told the reporter that the company's philosophy absolutely prohibits prejudice on the basis of nationality or any other demographic factor. He would also have told her that no problems would be solved for the company by cutting jobs in branches where there were no problems. The final outcome shows that George had made the correct decision.

In order to inform my thinking, I used the ethical view of utilitarianism and the moral philosophy of Corporate Social Responsibility in terms of the economic dimension. Utilitarianism is a philosophy that favors an outcome that creates the most happiness for the most people involved in the decision (National American University, p. 34). Although job cuts are an unfortunate decision, doing nothing would be even worse. In the circumstances, timely disclosure of these plans is also optimal for those most severely affected by the decision. Although George incurred some damage in terms of the press and his car, his decision to disclose had the greatest benefit for most of the interested parties involved (Utilitarianism.org).

Early disclosure was also a good decision in terms of the economic dimension of Corporate Social Responsibility (National American University, p. 35). Global communication has made it impossible to keep any secrets for long, much less a prominent one such as layoffs. By disclosing his plans early, George has ensured an image of the company as one that is concerned with honesty, even to the detriment of George's personal well-being.