Business Ethics_Lecture 9_050713

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BUSINESS ETHICS

EAST WEST UNIVERSITY

DHAKALecture# 09

Employees in an Organization

05 July 2013

Dr. Pallab Kumar Biswas


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Discrimination

Discriminatory practices in employer-employeerelationships include:

unequal or disparate treatment of indiv iduals or

groups based on irrelevant cr i ter ia, such as gender,

race, colou r, rel igion , national origin , or disabi l i ty.

Systematic and sys tem ic discr im ination is based on

histor ical and inst i tut ional ly ingrained unequal and

disp arate treatment against m ino ri t ies, the

disadvantaged, and women.

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Affirmative Action

Affirmative action programs are a proactive attempt torecruit applicants from minority groups to create

opportunities for those who, otherwise, because of past

and present discriminatory employment practices, would

be excluded from the job market.

These action programs attempt to make employment

practices blind to colour, gender, national origin, disability,

and age.

AAP are designed to set goals, quotas, and time frames

for companies to hire ad promote women and minorities inproportion to their numbers in the labor force and in the

same or similar occupational categories within the

company.

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Arguments Favouring Affirmative Action

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Ethics and Affirmative Action

The principle of justice can be used to argue foraffirmative action, by claiming that because white males

have historically dominated and continue to unfairly

dominate, others deserve to be compensated through

AAP.

The utilitarian principle can be used to support AAP by

claiming that such programs help the majority of people in

the society.

Using a rights principle, it is said that protected groups

have a right to different treatment because they did nothave equal or fair access to benefits.

All of the above arguments also have counter arguments.

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Reverse Discrimination: Arguments against AAP

AAP has been criticized on the grounds that non-discrimination requires discrimination (that is, reverse

discrimination). Opponents argue that AAP discriminates

against gender, race, and even age.

Individuals are held responsible for injustice for which

they were not and are not responsible.

Although these claims have some validity, proponents of

AAP argue that injustices from discrimination have been

institutionalized against minority groups. To compensate

and correct for the systemic disadvantages, socialaffirmative goals and programs must be implemented.

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Whistleblowing

Whistle-blowing is the attempt of an employee or formeremployee of an organization to disclose what he or she

believes to be wrongdoing in or by the organization.

It can be internal (reported to an executive in the

organization), external (reported to the external publicinterest groups, the media, or enforcement agencies),

personal (harm reportedly done only to the whistleblower),

and impersonal (harm observed as done to another).

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Metaphor of Whistleblowing

A train sounding its whistle to warn those on the track toget off (danger).

Referees blow a whistle to signal a foul, stopping play

(wrongdoing).

The police officer blows his whistle to stop wrongdoingbut, unlike the referee, also sounds an alarm. The alarm

should bring help, both ordinary citizens and other police,

so that the officer can, for example, catch a purse

snatcher. In ethics, a whistlebloweris like a member of the team

who suddenly calls a foul on his own teammates.

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Questions in Whistleblowing

Whether whistleblowing must be external to theorganization or may be internal instead?

Whether whistleblowing must serve the public interest orcan serve the organizations interest (when the publicinterest is not involved)?

Whether whistleblowing must be open or can beanonymous?

Whether the whistle-blower must have some chance ofsuccess if the whistleblowing is to be justified or can be

justified in the some other way? and Whether the whistle-blower must be seeking to serve the

public interest or the organizations interest alone or may(in addition to instead) be seeking to protect himself orserve his own interests in the some other way?

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Dilemma in Whistleblowing

A moral dilemma can occur when a loyal employeeobserves the employer committing or assisting in an

illegal or immoral act and must decide what to do.

The whistle-blower may not be lose his or her job but may

also experience negative and damaging repercussions inhis or her profession, marriage, and family life.

The risks to whistle-blowers can range from outright

termination to more subtle pressure, such as strong and

hidden criticisms, undesirable and burdensome workassignments, lost perks, and exclusion from

communication loops and social invitations.

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Dr. Pallab K Biswas 12


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Justification of Whistleblowing

When the firm, through a product or policy, will commitserious and considerable harm to the public, theemployee should report the firm

When the employee identifies a serious threat of harm, heor she should report it and state his or her moral concern.

When the employees immediate supervisor does not act,the employee should exhaust the internal procedures andchain of command to the board of directors.

The employee must have documented evidence that is

convincing to a reasonable to prove the claim. There must be valid reasons to believe that revealing the

wrongdoing to the public will result in the changesnecessary to remedy the situation.

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When Whistle-blowers Should not be Protected When divulging information about legal and ethical plans,

practices, operations, inventions, and other matters thatshould remain confidential

When an employees personal accusations are irrelevantto questions about policies and practices that appearillegal or irresponsible.

When the employees accusations do not show aconviction that a wrongdoing is being committed.

When employees complain against a mangerscompetence to make daily work decisions that are

irrelevant to the legality, morality, or responsibility ofmanagement actions.

When employees object to their discharge, transfer, ordemotion if management can show that unsatisfactoryperformance or violation was the reason for the decision.

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Factors to Consider before Blowing the Whistle

Make sure the situation warrants whistle-blowing.

Examine your motives. Verify and document your information.

Determine the type of wrongdoing and to whom it should bereported.

State your allegations specifically and appropriately.

Stay with the facts.

Decide whether to report to internal contacts or externalcontacts.

Decide whether to open or anonymous.

Decide whether current or alumni whistle-blowing is the bestalternative.

Follow proper guidelines in reporting the wrongdoing.

Consult a lawyer at every step of the way.

Anticipate and document relatiation.

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Managerial Steps to Prevent External Whistle-

Blowing

Develop effective internal grievance procedures and

processes that employees can use to report

wrongdoings.

Reward people for using these channels.

Appoint senior executives and others whose primary

responsibilities are to investigate and report

wrongdoing.

Assess large fines for illegal actions. Include executives

and professionals who file false or illegal reports, whoknowingly market dangerous products, or who offer

bribes to take kickbacks.

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Employer Responsibilities to Employees

Employers are obliged to pay employees fair wages forwork performed and to provide safe working conditions.

Fair wages are determined by factors such as what the

public and society support and expect, conditions of the

labour market, competitive industry wages in the specificlocation, and other factors.

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Safe Working Environment

Employers are obliged to provide workers with a safeworking environment and safe working conditions.

Employers should pay competitive wages commensurate

with the occupations risks associated with a profession,

job, or work setting. Employers are expected to provide full information on the

risks and health hazards related to the work, products,

and working environments to all employees exposed to

those risks. Employers should offer health insurance programs and

benefits to employees exposed to workplace hazards.

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Employee Responsibilities to Employers

Employees are responsible for: fulfilling their contracted obligations to the

corporations;

for following the goals, procedural rules, and workplans of the organization,

for offering competence commensurate with the workand job assignments; and

for performing productively according to the requiredtasks.

Other responsibilities include timeliness, avoidingabsenteeism, acting legally and morally in the workplaceand while on job assignments, and respecting theintellectual and private property rights or the employer.

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Employee Rights in the Workplace

Major types of employee rights in the workplace include: the right not to be terminated without just cause;

the right to due process;

the right to privacy;

the right to know;

the right to workplace health and safety;

the right to organize and strike;

rights regarding plant closings.

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Employment-at-Will Doctrine

The relationship between employer and employee is a

voluntary one and can be terminated at any time by either

party.

Just as employees are free to quit a company any time

they choose, this doctrine holds that employers can

discharge employees for any reason, or no reason, aslong as they do not violate local laws, or union contract.

This doctrine means that if you are not protected by a

union contract, or by one of the discrimination laws, your

employer is free to let you go anytime, for any reason.

This doctrine is eroded by court decisions that employers

have responsibilities to employees, from the standpoint of

fairness, not to fire an employee without a just cause.

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Due Process

Due process is the right to receive an impartial review of

ones complaints and to be dealt with fairly.

In the context of the place, due process is thought to be

the right of employees to have decisions that adversely

affect them be reviewed by objective, impartial third

parties.

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Right to Privacy

Right to privacy often means to be left alone.

It can also refer to employees right to autonomy and to

determine when, how, and to what extent information

about them is communicated to others,

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Business Ethics_Lecture 9_050713

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