Discussant Comment on the Expression of Espoused Humanizing Values in Organizational Practice: A Conceptual Framework and Case Study by Brian Shapiro and Michael Naughton

Excerpt

Reell has a history of over 40 years and “during its first 38 years the company did not implement any layoffs due to slack demand for its products…” During these first 38 years, Reell proudly celebrated and reinforced its values through various business practices that the authors effectively analyze. The recession that began in 2008 had a shattering impact on Reell profitably and raised concerns regarding the firm’s viability. While multiple factors contributed to the severe impact of the recession on Reell’s business model, the authors highlight the aggressive debt-financed expansion strategy undertaken by the firm in the years preceding the recession as a key factor. As the 2008 recession took hold, demand and credit dried up, and Reell was in serious financial straits. In this light, it is understandable that management decided that employee layoffs were necessary for the firm to survive. These developments are among the most compelling aspects of the paper and open the door to understanding how a firm, as committed to humanizing values as Reell, nevertheless found itself in the regrettable position of having to compromise core values and established business practices in order to survive. Reell continues to adapt its business practices to the new economic realities and a longer-term follow-up analysis that examines the link between altered business practices and the firm’s espoused values could be most enlightening and instructive. …