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Social responsibility in connection with business closures: A study of the close-down of Ericsson Telecom facilities in Norrköping and Linköping

Author

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  • Roland Ahlstrand

    (University of Halmstad, Sweden, roland.ahlstrand@hh.se)

Abstract

The present article analyses why and how Ericsson Telecom assumed a greater responsibility than was legally required when it dismissed more than 23,000 employees in Sweden at the beginning of the 21st century. The analysis starts from neoinstitutional theory and is based on case studies of the company’s closures in Norrköping and Linköping. The article focuses, in particular, on the interaction between Ericsson, the trade unions, the County Administrative Board, the County Labour Board, the Public Employment Service, the Swedish Employment Security Council, the government and the respective municipalities. It is shown that the greater responsibility taken by Ericsson was based on its desire to maintain legitimacy by taking into consideration prevailing societal expectations regarding the company’s behaviour.

Suggested Citation

  • Roland Ahlstrand, 2010. "Social responsibility in connection with business closures: A study of the close-down of Ericsson Telecom facilities in Norrköping and Linköping," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 31(4), pages 537-555, November.
    • Handle: RePEc:sae:ecoind:v:31:y:2010:i:4:p:537-555
    DOI: 10.1177/0143831X10365926
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