patriotic organizations

A few weeks ago, Steven H. Korman published a provocative Open Letter to CEOs in the NYTimes and the Philadelphia Inquirer. Asking other CEOs to avoid layoffs, Korman urged corporate executives to focus less on protecting stock price, profits, and the short term, and focus more on protecting the people who are working hard trying to keep their jobs.

Having argued myself that layoffs often contradict an organization’s stated values and having explained the " One Truth and Three Lies" that keep managers from trying alternatives to layoffs, I can’t say I was surprised when others commented that Korman was basically naive. " "Layoffs are unavoidable," they claim. "This is a unique economic situation."

I agree that for some organizations, layoffs are unavoidable. The economic environment is so bad now that many organizations that could have pursued alternatives to layoffs months ago have missed their chance.

And yes, this economic situation is unique . (Korman tipped me off as to why it’s unique, by addressing his letter to CEOs and executives of any company and every company. Why should every CEO care about avoiding layoffs?)

Our unique economic situation calls for a new argument against layoffs.

Unlike previous situations where layoffs were considered by specific companies, in specific industries, or in specific regions in an effort to adapt to ‘local’ economic problems, the current situation is different in two ways:

1. Economic problems are confronting every organization, every industry and every region.
2. Layoff decisions made by one organization or one industry or in one region are affecting nearly every other organization, industry and region.

The evidence- based, business case against layoffs may not be enough for this unique situation. After all, the traditional case against layoffs has always been made from the perspective of the individual organization or industry, not the nation as a whole. We need an argument against layoffs that addresses the unique situation of our national economy.

The more I think about the collective, nation-wide implications of each individual organization cutting employees in an attempt to improve its own stock price, the more I wonder whether  these individual organizations- and their leaders- are making selfish choices that work against the interest of the US as an economy and as a nation. Said another way, I’m wondering:

Are Layoffs Unpatriotic? [click to continue…]

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