Ethics in Business

There are certain ethical obligations that an organization has when downsizing. A company has an ethical responsibility to tell people inside the organization as well as outside the organization. On that same note, employees who plan to leave their job should let their employer know as soon as they possibly can. It is best to give at least two weeks notice so that the employer can try to recruit possible candidates for the position. These are situations most people find themselves in at least once in their life, And both employers and employees have to ask themselves what the ethical thing to do would be.

One of the most important ethical obligations that a company has is to tell their employees that a downsizing is nearing. Actually, federal law requires that any corporation with over one hundred employees give at least sixty days notice prior to a closure or lay offs affecting fifty or more full-time employees (Noe, Hollenbeck, Gerhart, & Wright, 2007, pp.327-328). It is best for the employees if they are informed soon so they can begin a serious job search. This may also lessen the amount of time they are unemployed. A layoff budget is also a good idea if a company can afford it (Noe et al. 2007, p.146). Severance pay should be given if it is at all financially possible. It is also ethical to let someone in the company who is close to the situation help make the decision about who is to be let go, so that informed layoffs are made. The corporation would also need to inform their shareholders that they are downsizing so that they could make an informed decision on if they want to reduce or sell all of their shares. The suppliers need to be told if there is going to be a reduction in the number of shipments of supplies and equipment. A companies downsizing affects each and every company that they are affiliated with, therefore it is truly necessary to let everone who will be affected by this change know about it as soon as it is decided.

It is the ethical thing to do. An employee who chooses to leave a job for whatever reason should give her employer as much notice as possible. It is ethical for an employee to give her boss as much time as possible to look for a replacement. Of course, not as many people will need to be informed of one employee voluntarily leaving a job as is with a company laying off employees. It is important for the employee to tell management and some co-workers who will be directly affected until a replacement is found, but there is no need to tell shareholders and suppliers about one employee leaving. There are not as many ethical obligations of an employee who is quitting compared with the ethical obligations that are needed to be taken care of if a company is downsizing. If an employee’s incentive for giving notice is not ethical, then maybe they will still give notice when they realize that if they quit without telling their company prior, it is very unlikely that the company will give the employee a good reference in the future (Noe et al. 2007, p.167). References are Necessary to get a good job, so it is necessary to leave your job on good terms so that they will give you an excellent reference later on.

Usually if you show commitment to an employee, they show it to you in return, so as an employer, you need to be in that frame of mind in any typeof situation. You have to judge a person on more than one point of view in order to make the best decision for everyone involved. Most employers know that eventually their employees will seek to move on to something bigger or just a new environment. All I would ask is for a little notice and respect in an instance like this one.

In conclusion, organizations have more obligation and responsibilities to their employees and others during a layoff as far as ethics go than an employee has to their employer. Employees do make mistakes but can learn from them, and employers need to review all aspects of a situation as far as employees are concerned. It is best for everone to make informed decisions in each topic above. Ethical obligations and ethical decisions are an extremely important aspect of business and human resource management, and responsibility and consequences fall upon every employer and employee involved.

Thinking Ethically

References

Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2007). Thinking Ethically: When Employees Leave. Fundamentals of Human Resource Management (2nd ed., chap. 5). New York: McGraw-Hill Irwin, p. 327-328, p. 146, and p.167.