The impact of downsizing on the corporate reputation for social performance | Zendy

Zyglidopoulos Stelios C. | Zendy

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The impact of downsizing on the corporate reputation for social performance

Author(s) -

Zyglidopoulos Stelios C.

Publication year - 2004

Publication title -

journal of public affairs

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.221

H-Index - 20

eISSN - 1479-1854

pISSN - 1472-3891

DOI - 10.1002/pa.168

Subject(s) - reputation , divestment , corporate social responsibility , business , stakeholder , accounting , action (physics) , corporate action , marketing , public relations , industrial organization , economics , management , finance , corporate governance , shareholder , political science , law , physics , quantum mechanics

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. Copyright © 2004 Henry Stewart Publications

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