My ethical decisions to lay-off those three workers would be based on utilitarian approach that blends economic theory with philosophy. John Stuart Mill and Jeremy Bentham are the persons who are identified with developing utilitarian thinking (Boathright, 2003 To lay off the three workers, I would inform all employees of the pending company decision to reduce the work force. Having moral alternatives in mind: The pregnant employee can be reduced to part-time basis and eventually given leave of absence with pay and terminated if the company does not recover (a gradual process). The employee close to retirement would be given early-retirement. And my close friend would be considered for redeployment or give employee assistance package as a last resort and also keep options open for new business adventures. Somewhere down the line you have to be bold and say, “sorry due to the financial problems and other factors the company is not doing well and we have to let you go.” Utilitarianism also advocates or favor government regulations to protect workers so that employers do not exploit them as opposed to Kant’s assume the risk philosophy (Boathright, 2003 Considering other theories to apply in case: The rights and duties theory analysis shows that workers have no real right to a job and the owners have a duty to shareholders. This leads to the conclusion that managers indeed sometimes have a duty to conduct layoffs, and in fact it would be unethical not to lay off workers in some instances. However, it would have been difficult to prove that managers have a duty to do a layoff in the case of an already well performing company. The justice and fairness theory issue fails because no matter how you lay off a portion of the workers, it is not proportional and consistent. A worker who is doing well, yet is fired is not treated in a proportionate way. Laying-off some workers and not other similar workers is not consistent. Utilitarianism Reference: Boatright, John R. (2003). Ethics and The Conduct of Business Prentice Hall |
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