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Chapter 11: Strategic advantage and social anathema?

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Abstract

The United States is at a crossroad in its treatment of Chapter 11 of the Bankruptcy Code, which deals with reorganization of “bankrupt” organizations. It is vital that the issues surrounding the debate be properly framed. This paper attempts to do just that by reviewing the evolution of bankruptcy law, assessing the impact of Chapter 11 leniency on societal stakeholders, considering bankruptcy as a strategic option, and addressing the ethical and societal issues that arise from the use of Chapter 11 to avoid massive litigation or to abrogate labor contracts. Serious threats to the underlying fibers of the American system of enterprise are exposed and an assessment of these threats is offered.

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Authors and Affiliations

  1. Area of Management, College of Business Administration, Texas Tech University, Box 4320, 79409, Lubbock, TX, USA

    Brad Johnson, B. R. Baliga & John D. Blair

Authors
  1. Brad Johnson
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  2. B. R. Baliga
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  3. John D. Blair
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Additional information

Brad Johnson is a consultant with FLR Health Resources, Dallas, Texas. His recent research has addressed health care strategic management, societal consequences of health care systems changes, and competitiveness of NFP organizations.

B. R. Baliga is Assistant Professor in Business Policy and International Business at the College of Business Administration at Texas Tech University. He has written two books on Strategies of Multinational Corporations and several articles, which have appeared in Strategic Management Journaland Journal of International Business Studies.

John D. Blair is Associate Professor of Management at the College of Business Administration at Texas Tech University. He is also Associate Professor of Health Organization and Management at the School of Medicine at Texas Tech University. He has written two coauthored books: The All-Volunteer Force: A Study of Ideology in the Military(University of Michican Press, 1977) and Leadership on the Future Battlefield(Pergamon Press, 1984).

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Johnson, B., Baliga, B.R. & Blair, J.D. Chapter 11: Strategic advantage and social anathema?. J Bus Ethics 5, 51–61 (1986). https://doi.org/10.1007/BF02116144

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  • DOI: https://doi.org/10.1007/BF02116144

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