The impact of downsizing on the corporate reputation for social performance

Zyglidopoulos, S. C. (2004) The impact of downsizing on the corporate reputation for social performance. Journal of Public Affairs, 4(1), pp. 11-25. (doi: 10.1002/pa.168)

Abstract

This paper investigates the impact of downsizing on a firm's reputation for corporate social performance (RCSP). Drawing on the downsizing, corporate reputation and social responsibility literatures, a number of hypotheses concerning the impact of downsizing, and particularly the types of downsizing, on a firm's reputation for corporate social performance are developed and empirically tested. The main findings of this study are that, while downsizing seems to have a negative impact on the firm's RCSP, when one takes into account the kind of managerial action that led to downsizing (layoffs and/or divestitures), this impact differs between the two stakeholder groups, industry executives and financial analysts, which were investigated. This study also found that a high financial performance prior to downsizing led to a greater negative impact on the firm's RCSP.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Zyglidopoulos, Dr Stylianos
• Authors: Zyglidopoulos, S. C.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Journal of Public Affairs
• ISSN: 1472-3891
• ISSN (Online): 1479-1854