BUSINESS ETHICS EAST WEST UNIVERSITY DHAKA

Lecture# 09 Employees in an Organization 05 July 2013

Dr. Pallab Kumar Biswas

Discrimination
Discriminatory practices in employer-employee

relationships include: unequal or disparate treatment of individuals or groups based on irrelevant criteria, such as gender, race, colour, religion, national origin, or disability. Systematic and systemic discrimination is based on historical and institutionally ingrained unequal and disparate treatment against minorities, the disadvantaged, and women.

Affirmative Action
Affirmative action programs are a proactive attempt to

recruit 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 in proportion to their numbers in the labor force and in the same or similar occupational categories within the company.

Arguments Favouring Affirmative Action

Ethics and Affirmative Action

The principle of justice can be used to argue for

affirmative 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 not have equal or fair access to benefits. All of the above arguments also have counter arguments.

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, social affirmative goals and programs must be implemented.

Whistleblowing
Whistle-blowing is the attempt of an employee or former

employee 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 public interest groups, the media, or enforcement agencies), personal (harm reportedly done only to the whistleblower), and impersonal (harm observed as done to another).

Metaphor of Whistleblowing
A train sounding its whistle to warn those on the track to

get off (danger). Referees blow a whistle to signal a foul, stopping play (wrongdoing). The police officer blows his whistle to stop wrongdoing but, 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 whistleblower is like a member of the team who suddenly calls a foul on his own teammates.

10

Questions in Whistleblowing
Whether whistleblowing must be external to the

organization or may be internal instead? Whether whistleblowing must serve the public interest or can serve the organizations interest (when the public interest is not involved)? Whether whistleblowing must be open or can be anonymous? Whether the whistle-blower must have some chance of success 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 or serve his own interests in the some other way?

11

Dilemma in Whistleblowing
A moral dilemma can occur when a loyal employee

observes 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 in his 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 work assignments, lost perks, and exclusion from communication loops and social invitations.

 Dr. Pallab K Biswas

12

13

Justification of Whistleblowing
When the firm, through a product or policy, will commit

serious and considerable harm to the public, the employee should report the firm When the employee identifies a serious threat of harm, he or 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 and chain 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 changes necessary to remedy the situation.

14

When Whistle-blowers Should not be Protected

When divulging information about legal and ethical plans,

practices, operations, inventions, and other matters that should remain confidential When an employees personal accusations are irrelevant to questions about policies and practices that appear illegal or irresponsible. When the employees accusations do not show a conviction that a wrongdoing is being committed. When employees complain against a mangers competence to make daily work decisions that are irrelevant to the legality, morality, or responsibility of management actions. When employees object to their discharge, transfer, or demotion if management can show that unsatisfactory performance or violation was the reason for the decision.

15

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 be

reported. State your allegations specifically and appropriately. Stay with the facts. Decide whether to report to internal contacts or external contacts. Decide whether to open or anonymous. Decide whether current or alumni whistle-blowing is the best alternative. Follow proper guidelines in reporting the wrongdoing. Consult a lawyer at every step of the way. Anticipate and document relatiation.

16

Managerial Steps to Prevent External WhistleBlowing

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, who knowingly market dangerous products, or who offer bribes to take kickbacks.

17

Employer Responsibilities to Employees

Employers are obliged to pay employees fair wages for

work 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 specific location, and other factors.

18

Safe Working Environment

Employers are obliged to provide workers with a safe

working 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.

19

Employee Responsibilities to Employers

Employees are responsible for:

fulfilling their contracted obligations to the

corporations; for following the goals, procedural rules, and work plans of the organization, for offering competence commensurate with the work and job assignments; and for performing productively according to the required tasks. Other responsibilities include timeliness, avoiding absenteeism, acting legally and morally in the workplace and while on job assignments, and respecting the intellectual and private property rights or the employer.

20

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.

21

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, as long 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.

22

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.

23

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,