Ethics

In the business world ethical behavior is often compromised to meet the profit motive. Companies often come under intense scrutiny when massive layoffs occur especially when workers who have been loyal to those companies for decades get their proverbial pink slip. Although loyalty is commendable, it is not in itself a lifetime pass to job security as companies must ensure the health of their bottom line. Often it is the employees who have worked the longest who earn the highest salaries, and as such when cost cutting measures are needed for companies to survive it is those workers like Holthausen and Sharlow who may be the first to be laid off. Some may question the ethics of such as it devalues the contribution they have made to the company over the years and reduces it to a numbers game, as they are often replaced with less experienced workers, instead of making those jobs redundant.
Layoffs may violate workers rights especially if those targeted for downsizing are selected by race, ethnicity, gender or socioeconomic background. Use of such criteria to downsize is clearly unethical and should rightly be frowned upon. Firms have also been known to target troublemakers for downsizing. Troublemakers may be those persons who may challenge authority they may not perfectly fit into the corporate mould, or who think outside the box. These workers are often laid off despite their commendable work ethic or intellect  a questionable practice.
There may be an area for regulating companies policies on downsizing and plant closures as often companies cannot be relied upon to conduct business ethically. Some guidelines could include a mandatory notification period before one is laid off as part of company restructuring, thus allowing workers to plan ahead. Firms who have received concessions to establish plants should not be able to close their doors without notice. The locale should be reimbursed as it in fact represents a breach of contract and employees given a mandatory payment for work lost.