GTX Corporation

The Company Man narrated a story during the economic recession, when GTX, a multi-billion-dollar publicly held shipbuilding company had to deal with the challenges of laying off more than three thousand employees. The story revolved around three employees on different strata of the company ladder and presented how GTX’s downsizing devastated their private lives.

This essay aims to provide a deeper reflection on GTX corporation, and it will be accomplished by examining the following questions:

1) organizational culture and the underlying values GTX corporation presented

2) an evaluation of downsizing from both stakeholder approach and ethical standpoint

3) impact of social capital mainly how the company’s decisions affect their social capital

Instead, he would rather exchange his stock for putting people back to work. Although the decision was unalterable, McClary as one of the few corporate men who still has a heart was trying his best to save as many employees as possible, even at the expense of the company’s bottom line. This brings us to further reflect the company’s downsizing from an ethical point of view. Is it ethical to announce a massive layoff just for building a new corporate building? Even employees who had most seniorities and had been worked in GTX for decades did not escape the result of being fired. To those employees, what struggled them most was their re-employment. Their perspectives to get a new job were very bad even though they were highly qualified. Phil Woodward could be regarded as their representative. He started from the bottom and worked all his way to the top. After being laid off, contracts became damp squids, his age and salary worked against him. As the backbone of his family, bills, daily expenses and daughter’s impending college tuition fees were all waiting for him to repaid. Finally, being frustrated and depressed, he committed suicide in his garage. Therefore, is it ethical to fire senior employees who had dedicated their lives to the

Phil Woodward, who worked his way up to the corporate ladder was fired. Finally, because of the misalignment on whether to spend money building new corporate headquarters while laying off employees, even McClary, the oldest friends and co-founder of GTX was fired by Salinger. And these were just three of thousands of people who were eliminated during the company’s downsizing. GTX’s vicious downsizing was doomed to severely impact their reputation. Organization’s attractiveness to future employees would be affected because even if the economy recovers, the ex-employees would not want to go back as they had very little emotional bond with the firm, and it might be even harder for the company to recruit any new talents, if their company’s philosophy of treating employees as working machines were spread out. Besides, consumers, nowadays are more and more concerned with social sustainability, and business people are more inclined to make deals with companies that are socially responsible and ethical. GTX might go through a hard time if they want to expand their business or find business partners in the