Northeastern Mutual Life: Preparing for Employee Terminations

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Case

Reference no. 9B02C014

Subject category: Human Resource Management / Organisational Behaviour

Authors: David J Sharp (Ivey Business School, Western University); Ken Mark (Ivey Business School, Western University)

Published by: Ivey Publishing

Originally published in: 2002

Version: 2003-06-04

Length: 9 pages

Data source: Field research

Topics: Ethical issues; Employee termination; Productivity; Human resources management (HRM)

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Abstract

Northeastern Mutual Life is a large insurance company. As a result of falling profitability, the chief executive officer has to evaluate the rights of various stakeholders as he plans to reduce staff. He must quantify in dollar terms the moral claims of shareholders and various other stakeholders, and apply ethical analysis where legal requirements are unclear. In particular, he must decide how to manage the layoffs and the implications to the company of the payout of pension benefits.

Location:

Canada

Industry:

Insurance and pension funds

Size:

Large

Other setting(s):

2000