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The bindingness of social and psychological contracts: Toward a theory of social responsibility in downsizing

Downsizing has become a significant public issue that has not yet been significantly studied by business ethicists. It is proposed that reasonable social and psychological contracts bound the moral free space of managers contemplating downsizing; the degree of constraint is also dependent on the organization's resource munificence. A framework for considering the extent of managerial moral free space and implications thereof for managerial practice are offered.
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Michal F. Settles (1988). Humane Downsizing: Can It Be Done? Journal of Business Ethics 7 (12):961 - 963.

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