Profits, Layoffs, and Priorities

Journal of Business Ethics · 2011 · Volume 101 · Issue 1

Abstract

This study examines the deliberations of professional MBA students when presented with a dilemma that weighs the difference between commitments to profit- maximization against concerns for fired workers who would need to seek a new job during a recession. Using content analysis, accounting, economic, and ethically based rationales that differ from the profit-maximizing recommendation are categorized. Results also show that those who make non-profit-maximizing recommendations consider, but ultimately reject the profit-maximizing approach to layoffs.

Keywords

behavioral economics, business ethics, content analysis, downsizing, experimental economics, layoffs, profits, recession, self-interest, unemployment

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