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Should I stay or should I go? How moral arguments influence decisions about offshoring production

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  • Martin Schröder

Abstract

How do trade unions and works councils influence what managements see as economically rational? Each of the two companies that this article studies planned to offshore its production to a low-cost country. Yet one of the two changed its plans after moral arguments were raised against this, whereas the other offshored in spite of similar arguments. Regardless of a similar economic situation, the two companies did the opposite of each other, yet each defended its action as economically optimal. This comparison of the two case studies therefore shows how moral arguments influence what actors define as economically rational.

Suggested Citation

  • Martin Schröder, 2013. "Should I stay or should I go? How moral arguments influence decisions about offshoring production," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 34(2), pages 187-204, May.
    • Handle: RePEc:sae:ecoind:v:34:y:2013:i:2:p:187-204
    DOI: 10.1177/0143831X12440465
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