The Quest for CSR in Closedowns

Abstract

This paper focuses on analysis of and suggestions for

Developing a framework for responsible downsizing through best fit: the importance of regulatory, procedural, communication and employment responsibilities

“…In addressing this, through comparative empirical studies, the extent to which responsible practices are embedded within organisational, societal and institutional norms will be further illuminated. For instance, some factors contributing to responsible downsizing are where unions are present at the workplace (Forde et al, 2009;McLachlan et al, 2021), where countries have social democratic traditions (Ahlstrand, 2010;Rydell & Wigblad, 2012;2013;Bergström & Diedrich, 2011) or where there is state influence on the process (McMahon, 1999;Snell & Gekara, 2020). Understanding the potential for responsible downsizing in situations where these factors are absent can help further explain the conditions that underlie the success or failure of organisations.…”

Corporate Social Responsibility in Connection with Business Closures and Downsizing: A Literature Review

“…The findings also recommend that companies develop business strategies for CSR orientation early in restructuring processes (Rydell & Wigblad, 2012). Coordination of CSR actions from the very beginning increases the scope of action and facilitates the adjustment of the business strategies and plans to develop HRM and local community activities.…”

“…The idea of providing assistance to employees is understood as being based on the perception that companies have a moral obligation to ease the pain of the affected workers (Rydell & Wigblad, 2012). Some of the identified studies used a psychological perspective and focused on social responsibility in connection with employees' reactions (Ramsey, 2014;Tang & Crofford, 1999).…”

“…Another important aspect that helps employees cope with closure as well as transition to new employment concerns the duration of the transition period (Millspaugh, 1990;Rydell & Wigblad, 2012). Longer transition periods give employees better opportunities not only to overcome the initial shock that the announcement may create, but also to undertake efforts to improve their skills and employability during the restructuring processes.…”

“…Longer transition periods give employees better opportunities not only to overcome the initial shock that the announcement may create, but also to undertake efforts to improve their skills and employability during the restructuring processes. Based on several CSR cases, Rydell and Wigblad (2012) argued that longer transition periods would ease the development of "outreach HRM", which includes, for instance, education, business startup education, re-training for new employment, job search assistance, transfer to other plants in the group, as well as cooperation with local community educational actors. Regardless of the duration of transition periods, research in the US found that offshoring outsourcing companies that were downsizing preferred to support public and private education instead of providing training programs for laid-off employees (Tesfom & Birch, 2008).…”