Layoffs during a pandemic: Results from an experiment on the management practices of nonprofit organizations and business firms

Abstract

Given the challenges of the COVID‐19 pandemic, both business and nonprofit organizations were forced to respond quickly with regard to organizational operations, resources, and workplace safety. The pandemic offers a unique context through which to examine how the public perceives organizational responses to unexpected crisis situations and whether they view them as socially responsible. Using a mixed experimental design, this study investigates the influence of organizational decision‐making during COVID‐19 on the public's perceptions of the organization. It also examines whether the type of organization—nonprofit or for‐profit—influences these perceptions and the willingness of participants to support the organization either by purchasing the product or donating to the organization.