Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th Edition by Michael Hitt , R. Duane Ireland , Robert Hoskisson

Exercise 3

When shareholders increase their wealth through downsizing, does this come, to some degree, at the expense of loyal employees-those who have worked diligently to serve the firm in terms of accomplishing its vision and mission? If so, what actions would students take to be fair to both shareholders and employees if they were charged with downsizing or "smartsizing" a firm's employment ranks? What ethical base would they employ to make decisions regarding downsizing?