RadioShack: You've Got Mail RadioShack Corporation's reputation suffered in the past due to an ill-managed company-wide layoff that utilized e-mail to notify employees of their termination. The poor communication choices used while handling the mass layoffs brought national attention to RadioShack. Many people found e-mail a dehumanizing method to inform the employees that they were being terminated (RadioShack, 2006). The current share price of $13.21 for RadioShack indicates that the corporate turnaround implemented by the CEO at the time of the layoffs, Julian Day, was not successful (RSH, 2011). Due to the changes in economy and corporate strategy it is impossible to assign total blame to the e-mail layoffs as the culprit
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The lack of that detail in the press release can be viewed as an underhanded move. To improve public perception and potentially improve shareholder value RadioShack should offer both an individual and public apology for the impersonal manner in which employees were laid off. It has been shown that apologies from organizations improve their reputation. It is also noted that apologies do not necessarily implicate the organization as being liable of a crime (O'Rourke, 2011). In fact, “new academic research indicates that goodwill generated by such mea culpa could more that make up for the legal costs involved” (O'Rourke, 2011, p. 346). By apologizing RadioShack will gain the goodwill of the public again by attempting to right their wrong.
Corporate Policy Update To ensure that future lay-offs are handled in a manner consistent with positive public perception, RadioShack should incorporate the ethical treatment of employees into their corporate governance and also implement a procedure regarding employee layoffs. By creating high ethical standards within the organization a group conscience is instilled (O'Rourke, 2011). The financial pressure placed on Julian Day led him to layoff employees but it is the lack of moral judgment that is responsible for the manner in which he laid off the employees. By writing out RadioShack's ethical principles “the