Common Ethical Problems (2):Common Ethical Problems (2):Consumer Confidence IssuesConsumer Confidence Issues

HR (continued)HR (continued)

Geoffrey G. Bell, PhD, CAGeoffrey G. Bell, PhD, CAUniversity of Minnesota University of Minnesota

DuluthDuluthSeptember 2003September 2003

Consumer Confidence IssuesConsumer Confidence Issues Involves confidentiality, product Involves confidentiality, product

safety and effectiveness, and special safety and effectiveness, and special fiduciary responsibilities.fiduciary responsibilities.

Primarily, things that affect citizens Primarily, things that affect citizens in their role as consumers, but also in their role as consumers, but also can involve inter-firm relations.can involve inter-firm relations.

ConfidentialityConfidentiality Right to privacy is basic.Right to privacy is basic. Affects both individuals and firms.Affects both individuals and firms. Need to be careful what you say, even Need to be careful what you say, even

to representatives of client firms.to representatives of client firms. Generally, release of information to 3Generally, release of information to 3rdrd

parties needs to have specific client parties needs to have specific client permission, including what can be permission, including what can be disclosed.disclosed.

Product SafetyProduct Safety Many ethical issues have product safety Many ethical issues have product safety

issues at the core.issues at the core. See See PBS Frontline SUV showPBS Frontline SUV show

Includes both product & service dimensions.Includes both product & service dimensions. Truth in advertising – can organizations Truth in advertising – can organizations

exaggerate their product claims?exaggerate their product claims? Current US Supreme Court caseCurrent US Supreme Court case

Fiduciary responsibilities – do you have a Fiduciary responsibilities – do you have a special obligation to your customers, special obligation to your customers, especially certain types of customers? especially certain types of customers? What are they?What are they?

HarassmentHarassment All organizations with >15 employees must have a All organizations with >15 employees must have a

sexual harassment policy & train employees in sexual harassment policy & train employees in issues involved.issues involved.

Harassment involves quid pro quo and hostile work Harassment involves quid pro quo and hostile work environment.environment. Quid pro quo – sexual favors are, or appear to be, a Quid pro quo – sexual favors are, or appear to be, a

requirement for advancement.requirement for advancement. Hostile work environment – a worker feels uncomfortable Hostile work environment – a worker feels uncomfortable

because of unwelcome actions or comments related to because of unwelcome actions or comments related to sexuality.sexuality.

Hard to determine exactly what constitutes Hard to determine exactly what constitutes harassing behavior – even genuine complements harassing behavior – even genuine complements may be misconstrued.may be misconstrued. Determination of presence or absence of harassment based Determination of presence or absence of harassment based

on viewpoint of “reasonable” person, and perpetrator’s on viewpoint of “reasonable” person, and perpetrator’s intentions aren’t considered.intentions aren’t considered.

Why harassment mattersWhy harassment matters Unfairly focuses job satisfaction, Unfairly focuses job satisfaction,

advancement, and retention on advancement, and retention on factors other than ability.factors other than ability.

Also, simply hurts innocent people, Also, simply hurts innocent people, even though it may be innocuously.even though it may be innocuously.

An employer may be held liable for An employer may be held liable for employee behavior if employer knew employee behavior if employer knew about it & did nothing.about it & did nothing.