Managing responsible restructuring means to minimize negative effects and take advantage of opportunities, taking into account all company stakeholders. Responsible restructuring isn’t just a requisite that responds to a CSR strategy, but it is also a necessary condition to ensure the economic success of the operation and to strengthen the company competitive position in the long term.
This approach influences in a positive way the company reputation, legitimacy to operate on a territory and on the internal/external relational assets.
MBS approach arises from guide lines and support instruments specified by the EU Employment, Social Affair and Inclusion department, which come from a collective bargaining between all social partners from member states.
- People First involves all stakeholders (company, trade union, employees, other companies/entrepreneurs, local and public administration) during key moments of the restructuring process
- Main elements that make this approach successful are: the ability to anticipate the need of restructuring, the possibility to develop partnership between public and private sector, the transparency and effectiveness with which the stakeholders are involved (when they are necessary to find a solution)
- During the critical phase of the restructuring, all possibilities are listed to help find other job possibility for employees involved in the downsizing, starting from those solution which will grant the lowest social impact: internal requalification, intermediate requalification (clients and suppliers), external requalification/outplacement, spin-off and start up for new businesses exploiting the assets and capabilities under review (also using workers buy out models) up to employing the traditional restructuring instruments (welfare safety net, early retirement, redundancy)
- Negative effect reduction for the company reputation
- Improvement of the “sense of belonging” for those employees who are not involved in the restructuring process
Responsible restructuring can be applied in situation when it is necessary to perform a relevant downsizing on assets and human resources due to a structural and persistent crisis in the company performance or in target market. Expertise specialisation and the possibility to have available physical assets during restructuring could help the creation of spin-off and workers buy out.