Ethics Ch 06

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Copyright 2003 by South-

Western, a division of ThomsonLearning 1

Chapter Six

Employee Stakeholders

AndThe Corporation

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Copyright 2003 by South-Western, a division of ThomsonLearning 2

Chapter Topics

1. Employee stakeholders: The workforce inthe 21st century

2. The changing social contract between

corporations and employees3. Employee and employer rights and

responsibilities

4. Discrimination, equal employment

opportunity, and affirmative action5. Sexual harassment in the workplace

6. Whistle-blowing versus organizationalloyalty

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Employee Stakeholders:The Workforce In The 21st Century

Within the context of the digital economy the followingchanges with employees and stakeholders occur: A shift to knowledge work

The concept of a job for life is dying

Compensation, income, and the social distribution ofbenefits are shifting

Quality of work life is not inherent in the uses of technology

Five predicted trends in the work-life of employeesinclude: Demographics will drive a growing focus on family,

personal, and spiritual matters

Employees will demand schedules that work for them

Internet-age values will take deeper root

A back-to-basics trend

It will get harder to tell work and home lifestyles apart

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Employee Stakeholders:

The Workforce In The 21st

Century Several demographic trends that were

predicted have been and are being realized: The workforce is aging (growing)

Managerial leadership positions are moredifficult to fill

Women entrants (new in profs.)are increasing

Workforce cultures are mixing

The education gap continues

The level of education lags (slow move) The number of employees with disabilities is

expanding

Gay couples are denied health careinsurance in most companies

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Century The trends in the workforce necessitate

accommodation from managers andemployees. Moral and legal conflict will

likely increase if action is not taken withregard to:

Age discrimination

Physical harassment

Health care provisions

Educational challenges

Paradigm shift toward a new work lifemodel

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Century The following values

were identified asmotivators forprofessionals:

Competitive pay

Benefits andopportunities

A fair deal Being valued

Decent relationships

Workforce 2000related valuesconsidered most

important include: Recognition

Respect and dignity

Personal choice

Involvement at work

Pride in work

Quality of lifestyle

Financial security

Self-development

Health and wellness

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Century Generational analysis looks at

differences among world views,

attitudes, and values of generationsof Americans:

GI generation

Silent generation

Baby boomers

Generation X

Generation Y

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The Changing Social ContractBetween Corporations and

Employees The social contract that has

historically defined theemployee/employer relationship isknown as the employment-at-will(EAW) doctrine.

The EAW remains the cornerstone

of U.S. labor law. At issue is the continuing debate

over the nature of property andproperty rights.

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Employee And Employer Rights

And Responsibilities The ideal relationship between employer and

employees is one based on mutual respectand trust.

A right can be understood as amoral claim. The moral foundation for employee rights is

based on the fact that employees arepersons.

The evolving social contract betweenemployers and employees still recognizesemployers power over physical and materialproperty, but the contractual relationshipaims in principle at balance, mutual respect,

integrity, and fairness.

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And Responsibilities Employers are obliged to:

Pay employees fair wages for work performed

To provide safe working conditions

Employees are responsible for: Fulfilling their contractual obligations to the

corporation

For following the goals, procedural rules, and workplans

For performing productively

Timeliness

Avoiding absenteeism

Acting legally and morally

Respecting the intellectual and property rights of theemployer

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And Responsibilities Major types of employee rights in

the workplace include:

Right not to be terminated without justcause

Right to due process

Right to privacy

Right to workplace health and safety

Right to organize and strike

Rights regarding plant closings

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And Responsibilities Employees right to privacy remains

one of the most debated andcontroversial rights. Areas centeredaround issues of privacy include: Technology use

Polygraph and psychological testing

Workplace surveillance

Internet use

Drug testing

Genetic discrimination

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Discrimination, EqualEmployment Opportunity, And

Affirmative Action Recently, discrimination has surfaced in a

number of categories including: Racial profiling

Income disparities

Ratio of female compensation compared to male

Examples of discriminatory practices havebeen found in: Recruitment

Screening Promotion

Termination

Conditions of employment

Discharge

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Affirmative Action Title VII of the Civil Rights Act of 1964 makes

discrimination on the basis of gender, race, color,religion, or national origin in any term, condition,or privilege of employment illegal.

The Civil Rights Act of 1992 extended punitivedamages to victims of employmentdiscrimination.

The Age Discrimination in Employment Actprohibits employers from discriminating againstindividuals based on their age.

The Equal Pay Act of 1963 prohibitsdiscriminatory payment of wages and overtimebased on gender.

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Affirmative Action Affirmative action programs are a

proactive attempt to recruit applicantsfrom minority groups to create

opportunities for those who would beexcluded from the job market.

Affirmative action as a doctrine isderived from several ethical principles

that serve as bases for laws: Principle of justice

Utilitarian principle

Rights principle

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Affirmative Action Reverse discrimination is alleged to occur when an

equally qualified woman or minority member is givenhiring preference over white males.

Notable court cases that illustrate how affirmativeaction and discrimination issues have been addressedinclude:

The Bakke case

The Weber case

The Stotts case

The Adarand Constructors v. Pena case

The Hopwood v. Texas case

The Grutter v. University of Michigan Law School case

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Sexual Harassment In The

Workplace Physical harassment remains among

the most prominent civil right issues inthe workplace.

Forms of sexual harassment include:

Unwelcome emotional (physical) advances

Coercion (force)

Favoritism Indirect harassment

Physical conduct

Visual harassment

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Whistle-Blowing Versus

Organizational Loyalty DeGeorge has identified five conditions

when whistle-blowing is morally justified.

Five instances when whistle-blowingis

not justified have been suggested. There have been twelve guidelines that

offer factors which should be consideredbefore deciding to blow the whistle on

an employer. Four managerial steps to prevent

external whistle-blowing have beensuggested.

Documents

Ethics Ch 06