Socially sensitive enterprise restructuring in Asia country context and examples

(05-RP-GE-SUV-37-B) Report of the Joint APO/ILO Survey on Socially Sensitive Enterprise Restructuring—Asian Experiences

Edited by Mr. Nikolai Rogovsky and Dr. Randall S. Schuler

©APO 2007, ISBN: 92-833-7057-0 (joint ILO/APO publication)

Growing competition and globalization force business organizations to strive for greater efficiency and cost-effectiveness. In many cases, the desired results cannot be achieved without subjecting corporate strategies and structures to transformation. In this context, restructuring is no longer an option but a necessity for survival and growth. However, it is in the interest of society that restructuring be carried out in such a way that it does not jeopardize the high value of human capital. Good management practices, social partnerships, communication, and healthy industrial relations should be applied throughout the change process. This brings to the fore the issue of socially sensitive restructuring. The need for this is crucial for enterprises in Asian economies.

Over the years, the Asian Productivity Organization (APO) and the International Labour Office (ILO) have been involved in a number of joint productivity-related activities addressing not only economic but social dimensions, labor–management relations, and recently corporate social responsibility. In 2005, both institutions expressed interest in pursuing a joint project aimed at a better understanding of policy implications in the area of productivity and industrial restructuring. As a result, the joint APO–ILO Survey on Socially Sensitive Enterprise Restructuring (SSER) in Asia was undertaken. The purpose was to increase awareness of the need for SSER among Asian policymakers and enterprise managers. The main question the APO and ILO sought to answer was how an economy, a sector, or an enterprise can restructure with maximum economic benefit and minimum social cost.

The Coordination Meeting of the APO–ILO Survey on SSER in Asia was held in Vietnam, 19–23 December 2005. The meeting brought together a panel of distinguished experts from the Republic of Korea, the Republic of China, Vietnam, Malaysia, Singapore, and the Philippines. Professor Randall S. Schuler of the USA acted as the chief expert leading the team. That group of experts agreed upon the survey framework and project methodology. After returning home, the national experts from the selected APO member countries then prepared reports covering good examples of restructuring and the overall economic, legal, social, and political environments in which those examples occurred.

This book is a compilation of the country reports prepared by the members of the study team. We hope that the contents will provide useful information for governments, employers’ and workers’ organizations, and enterprise managers, as well as academics, lecturers, and consultants.

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