Is this an ethical desicion? ?

Question

I know a family who run a business. Because of the recent recession, they have been forced to lay off a number of staff. Because they are a family, they agreed to fire people who weren't part of the family, even though some of the people fired were multi talented. From 15 workers, they went down to a team of 3 and the 4 managers.

Answer 1

It is not really unethical unless they had previously agreed not to hire and fire based on family( agreed with the hirees.)

It is attrition based on blood being thicker than water.

Anytime you hire into a family business this is understood unless it is otherwise spelled out in your contract.

Answer 2

It may not be the right decision, but family is family. It may not be the best business move, but family comes first.

Answer 3

It's their business, the are free to hire and fire however they please.  The basic reality is that the company can't retain employees if it doesn't have the business coming in to pay for them.

You can argue that the business might have been better off with a different firing plan, but this isn't really an ethical issue.

Answer 4

Labor law is complicated, and it varies state by state. However since this is a private business, and assuming that the fired employees did not have an employment contract, they most likely were "at will" employees who can be let go for little or no reason.

I'd say that the owners were correct in keeping their family members employed.

It would be a different matter if this was a publicly funded organization.

Answer 5

I think its very commendable that you are worried about this being an ethical act or not.  In today's society most people look out for number one first, within even thinking about the other guy.  As you have probably read by now, the general consensus is this isn't unethical but may not be the best business move.  

You have a big heart to worry about the people who lost their jobs.  Good for you!!!

Answer 6

Yes...this is ethical...and I'm sure it was not easy for the family to lay off good workers; however, it is a family business and they need to keep the money within the family in order to survive this recession and stay afloat.  If they did not make this decision, their business might be lost all together and then there's no jobs for anyone.

Answer 7

The decision is entirely up to the family, whether it is ethical or not. In any business there will always be some sort of mishap where someone receives a pink slip or a promotion they clearly don't deserve, but there is nothing that you can really do about it.

Personally, I would think the best decision would be to fire the staff who were the most expendible. The lazier ones, those who just aren't as efficient. But, if it were my family, I would probably do the same and fire those who were not in my family because I do not want to have to continue paying other employees AND have to aid my unemployed family members.