Collective Layoffs and Offshoring: A Social Contract Account

Autor(en)
Armin Granulo, Anne-Madeleine Kranzbühler, Christoph Fuchs, Stefano Puntoni
Abstrakt

Collective layoffs can occur for many reasons, often related to a firm’s pursuit of greater efficiency and cost reduction, and they tend to trigger negative reactions among the public. Anecdotal evidence suggests that offshoring, one of the most controversial and politicized aspects of globalization, evokes particularly negative reactions. We propose a social contract account of consumer reactions to collective layoffs and demonstrate differential consumer responses to collective layoffs due to offshoring versus other reasons, such as automation. Layoffs due to offshoring are perceived as an especially egregious violation of the normative expectation that firms should support members of their society. Data from nine experimental studies (N = 5,568; seven reported in the main paper and two in the General Discussion), public consumer responses to layoffs in a large online community (N = 29,045), and layoff announcements in the European Union (N = 1,261) show that consumers react more negatively to collective layoffs due to offshoring compared to other reasons. Supporting our social contract account, the negative effect of offshoring is stronger when offshoring affects workers in the consumers’ home (vs. foreign) country, when the firm is domestic (vs. foreign), and when most customers are domestic (vs. foreign).

Organisation(en)
Institut für Marketing und International Business
Externe Organisation(en)
Technische Universität München, Brand University of Applied Sciences, University of Pennsylvania
Journal
Journal of Consumer Research
Band
52
Seiten
526–546
Anzahl der Seiten
21
ISSN
0093-5301
DOI
https://doi.org/10.1093/jcr/ucaf001
Publikationsdatum
10-2025
Peer-reviewed
Ja
ÖFOS 2012
502019 Marketing, 502052 Betriebswirtschaftslehre
Schlagwörter
ASJC Scopus Sachgebiete
Marketing
Link zum Portal
https://ucrisportal.univie.ac.at/de/publications/2b09135a-8d1b-427d-986d-f3eca29987bf