Corporate Downsizing Corporate Downsizing Organizations in every segment of business, industry, government, and education are downsizing. Downsizing is and has been a controversial phenomenon in the last few years. The controversy that surrounds downsizing may be better described as a debate in organizational theory about whether change is adaptive or disruptive. The issues which establish the outcome of the controversy include why the downsizing is taking affect, how it is implemented, and what steps are taken to enhance its effects on organizational performance. The reasons for corporate downsizing are presented in many forms.
Running Head: Business Ethics Business Ethics name school The modern theory of the firm, which is central to finance and corporate law, views the corporation as a of contracts among the various corporate constituencies. Upon this foundation, finance theory and corporate law postulate shareholder wealth as the objective of the firm. Research in business ethics has largely ignored this contracts theory of the firm except to reject the financial-legal model as normatively inadequate. Philosophers generally bring philosophical theories of ethics to bear on problems of business, and they regard the contractual theory of the firm primarily as a subject for criticism using the resources of philosophical ethics. In particular, stakeholder theory, which stresses the importance of all groups that affect or are affected by a firm, has been proposed as a more adequate theory of the firm for studying business ethics.
WHAT IS ETHICS Ethics is a reflection on moral practice that concerns with customary practice and social in defining what is wrong and rights. Based on the public asking, ethics has to do with the feelings tell although it right or wrong or being ethical in what the law requires. Many meanings can use as long it good for the companies and other people. INTRODUCTION OF CORPORATE GOVERNANCE The global financial crisis starting in 2007 added further strands to corporate governance policy and practice. Based on the definition of corporate governance is corporate governance refers to a system that firms are directed and organized (Cadbury Report, 1992) or also define the connection between stakeholders, management, and board of directors of a company and effect how that company is working.
The failure of such business has seen an increased pressure to incorporate ethics in corporate governance. The result of corporate scandals has been eroding investor and public confidence. The entire economic system has experienced some form of stress from loss of capital, a falling stock market and business failures. The past scandals that failed the ethics test were characterized by lack proper disclosures on financial records. This paper will reveal the dubious accounting practices that contributed to the failure of some of the companies.
This reflection will address an outline created for the use of a corporate approach to introduce an Alternative Dispute Resolution program in the workplace. The first step that companies should take when integrating a conflict management system is to identify problems that an ADR can address. One major concern company’s face is the financial cost of employment litigation disputes. Some of the negative aspects of employment litigation are difficult to measure in dollars. Other concerns that arise during employment litigation disputes include man hours spent on cases, disrupting the workplace, and the negative impact it has on relationships.
While many factors greatly influence downsizing at a gr... ... middle of paper ... ...r new jobs and the lack of people to perform other jobs. Looking to the future needs to be continually stressed. Usually when a company downsizes, the results end up exactly the opposite of what they wanted, and it is usually because of the lack of planning. There are many issues involved in a corporate downsizing and with appropriate planning these issues can usually be resolved. While employees terminated usually get all the downfalls of a downsizing, the corporation had to downsize for a reason.
This is made more difficult by the pressures of organizational life. There are pressures surrounding us from all angles. (I.e. productivity, competition, bosses) Sometimes managers make decisions which conflict with their own or society’s values because of what they see as the pressures of the business world. But what is the right thing to do when it comes to social responsibility?
Briefly consider what constitutes “Responsible Business” Countless studies have tried to reach a definition of Responsible Business. Although it is hard to present a firm definition, much of the research done has identified many kinds of responsible / irresponsible business. The majority of major companies will decide for themselves if they are being a responsible business through the activities that they are doing. Furthermore the theory of Responsible Business is an ongoing developing idea, which means different things to different people. Archie Corroll (1999) observed that: "The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organisations at a given point in time."