Company downsizing and ethics Management Essay Paper (Essay Sample)

Company Downsizing and Ethics
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Introduction
Company downsizing involves restructuring of its activities so as to reduce costs of operations. It comes with reduction of labor force by terminating contracts of a number of workers to attain a manageable labor in terms of salaries and associated costs. Downsizing is usually caused by economic downturns and related factors and a company ought to go by this decision to remain operational.
Discussion
I support a view where downsizing is considered ethical in protecting future viability of a company and enhancing its going concern rather than a downsizing that is considered immoral and unethical to only protect psychological and social contracts between an employee and employer. A company as an artificial person possesses rights and obligations and in respect to this, it has powers to protect itself against actions of a natural man (Karfakis & Kokkinidis, 2019). As a normal natural person protect themselves against harm that may injure or kill them, companies also should protect from actions that may deny realizing profits or bring them to an end.
Companies are formed to improve the economic welfare of a country and that of human too and sound decisions need to be made to protect it from extortion by ethical views which seem to be coupled with personal interests. Among those views are as in second view that would be mainly directed towards protection employees and not the company. Downsizing is helpful and a sound moral corporate behavior which allows taking low the costs of operations and help a company restructure in a manner that it can shoot to profitability status (Bozionelos, 2018). It helps a firm fight the narrow chances of survival orchestrated by economic meltdown. When downsizing is understood in this view that a company is salvaging itself from collapsing, psychological and social contracts won’t be seen as being violated.