John Challenger suggested that we should consider certain things in acting more ethically in downsizing. What things he sugegsted? A. Planning B. Pessimism about the future of the company C. Emotions D. Timing E. Stakeholder perception Choose the correct answer from the options given below:
A, C, D and E Only
A, C, D and E only — option 1. Pessimism about the future of the company is not a consideration Challenger recommends; it is a state of mind that ethical downsizing is meant to avoid creating.
The context. John Challenger, of the outplacement firm Challenger, Gray & Christmas, wrote on how firms can carry out unavoidable job cuts without behaving badly. His argument is that the manner of a downsizing matters as much as the decision, because it determines the damage to those who leave, to those who stay and to the firm’s reputation.
| Consideration | What it requires |
|---|---|
| A — Planning | Work out the whole process in advance — who is affected, on what criteria, with what severance, outplacement and notice. An improvised downsizing is where unfairness and legal exposure enter |
| C — Emotions | Recognise that redundancy is an emotional event, for those dismissed and for the survivors. “Survivor syndrome” — guilt, insecurity, falling morale and commitment — regularly destroys the productivity gain the cuts were meant to produce |
| D — Timing | When the announcement is made and how quickly it is carried out. Prolonged uncertainty is corrosive; so is an announcement made just before a festival or at the year end |
| E — Stakeholder perception | How employees, customers, investors, the community and the media will read the action. Reputational damage outlasts the saving |
Why B fails on its face. Every other item is something management should attend to in order to act well. Pessimism about the company’s future is not a thing to be considered but an attitude — and an ethical downsizing is precisely one that is explained clearly enough to prevent unwarranted pessimism from spreading. Recognising that B is different in kind eliminates options 2, 3 and 4 together.
The wider ethical questions in downsizing : whether the criteria for selection are objective and non-discriminatory, whether adequate notice and severance are given, whether alternatives such as redeployment, reduced hours or voluntary retirement were genuinely tried first, and whether the firm assists with re-employment. In India these are not only ethical questions — retrenchment of workmen is regulated by the Industrial Disputes Act, 1947, which prescribes notice, compensation and, in larger establishments, prior government permission.
Hence, the answer is A, C, D and E Only.
Similar Questions
Which one of the following is not a principle of corporate Governance ?
Match the items given in the List - I and List - II and suggest the correct code :
List - I List - II (a) Ethics (i) Right code of behaviour for a group or profession (b) Morality (ii) Prescribes right conduct for everyone (c) Moral standard (iii) Needs some inclination to follow morality (d) Meta Moral Standard (iv) Practical and pragmatic Code :
Assertion (A) : When a corporation acts ethically and socially responsible in its business decisions and strategic planning, then the corporation will be more sustainable.
Reason (R) : Socially responsible corporate behaviour is increasingly seen as essential to long-term survival of companies.
Social responsibility of business while appropriating natural resources by a corporate entity has been recommended in which one of the following?
Disclosure of corporate governance practice and its compliance has been stipulated in which one of the following?
Kumar Mangalam Birla Committee Report, Ramesh Chandra Committee Report, Cadbury Committee Report primarily focus on which one of the following?
'The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.'
This may be attributed rightly to which one of the following?
Read the following passage and answer the questions :
Jensen examines the dynamics of corporate takeovers and challenges prevailing misconceptions surrounding them. He argues that takeovers are not merely hostile disruptions but serve as a crucial mechanism of the market for corporate control. According to Jensen, inefficient management teams often fail to maximize shareholder value and takeovers act as disciplinary tool by transferring control to more competent managers. He emphasizes that while popular belief portrays takeovers as destructive to employees and communities, empirical evidence suggests that they frequently generate significant economic gains by reallocating resources to more productive uses. Jensen distinguishes between the folklore-emotional and political arguments against takeovers depicting as harmful to employees and society and the science, which demonstrates thier role in improving efficiency and shareholder wealth. He also addresses concerns about debt financing in leveraged buyouts, contending that high leverage can impose financial discipline on managers by reducing wasteful spending. Ultimately, Jensen frames takeovers as an essential corrective force within capitalism, countering managerial inefficiency and aligning corporate behavior with shareholder interests. His analysis laid the groundwork for modern corporate finance debates on governance, agency costs and the value-creating potential of mergers and acquisitions.
Statement (I) : The science of ethics is a normative science.
Statement (II) : Normative sciences judge the value of the facts in terms of an idea; concerned with judgements of ‘what ought to be’ but not with factual judgements.
Code :
Assertion (A) : Decisions in small matters largely tend to set a pattern for the more important ones you may make as managers.
Reasoning (R) : A multi-industry survey conducted in the USA indicated that 40% of the managers said that their superiors had at some time told them to do certain things unethical.
Code :
Important Questions from Corporate governance and business ethics
As per the Anglo-Saxon Model of Corporate Governance, the authority lies with the following. Arrange these in decreasing order of authority.
A. Board of Directors
B. Managers
C. Shareholders
D. Employees (Company)
E. Trade unions
Choose the correct sequence from the options given below
Assertion (A) : Corporate governance is an important instrument of investor protection.
Reason (R) : Strong corporate governance is indispensable to resilient and vibrant capital markets.
Which one of the following options is correct?
Which one of the following is not a norm of corporate governance ?
Which one among the following is not a true statement?
Ethics are moral principles and values which:
