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Chapter06-EthicalDecision-Making:EmployerResponsibilitiesandEmployeeRights

Copyright©McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.

IMChapter6:

EthicalDecision-Making:EmployerResponsibilitiesandEmployeeRights

ChapterObjectives

Afterreadingthischapter,youwillbeableto:

Distinguishbetweenthetwodistinctperspectivesoftheethicsofworkplacerelationships.

Explaintheconceptofdueprocessintheworkplace.

Defineemploymentatwill(EAW)anditsethicalrationale.

Describehowtodownsizeinanethicalmanner.

Explainthedifferencebetweenintrinsicandinstrumentalvalueintermsofhealthandsafety.

Illustrateanemployer’sresponsibilitywithregardtoemployeehealthandsafetyandwhythemarketisnoteffectiveatmanagingthisresponsibility.

Explainthebasicargumentsforandagainstregulationofthegloballaborenvironment.

Describetheargumentforamarket-basedresolutiontoworkplacediscrimination.

Definediversityasitappliestotheworkplace,aswellasitsbenefitsandchallenges.

Explainaffirmativeactionanddescribethethreewaysinwhichaffirmativeactionmaybelegallypermissible.

OpeningDecisionPoint

AmericanApparel:TheWorkplaceCulturethatJustWillNotGoAway

Arguably,theclothingcompanyAmericanApparel(AA)evolvedthroughthepersonalityandvisionofitsformerCEOandcreatorDovCharney.PromotedbyCharneyas“sweatshop-free,”AAhadbeenknownforprovidingitsUS-basedandmostlyLatinofactoryworkerswithhighwages,healthinsurance,andon-siteEnglishclasses;forkeepingitsclothingproductionwithintheUnitedStates—rareinanindustryinwhichupwardsof95percentofgoodsareimported;whileatthesametimeitalsowasknownforsellingitsproductsthroughprovocative,no-frillsadvertisingcampaignsthatfeature“realwomen,”manyofthemcompanyemployees.AA’sracyads,manyofwhichoriginallywerephotographedbyCharneyhimself,alongwithitsgenerousworkerbenefitpolicies,contributedtothebrand’spopularitywithyoungconsumers.

Asyouwillreadinthetimelineanddiscussionbelow,whilethisculturemayhaveresultedinplentyofvaluetoworkers,italsohadajarringandcomemightsaytoxiceffectonitsstakeholders-bothinternalandexternal.

DuringthetimehewasCEOofthecompany,ratherthantonedownhisadvertisingapproach(orchangehisbehavior),Charneyinsteadestablishedanemployeecontractclausethatstated:

AmericanApparelisinthebusinessofdesigningandmanufacturingsexuallychargedT-shirtsandintimateapparel,andusessexuallychargedvisualandoralcommunicationsinitsmarketingandsalesactivities.Employeesworkinginthedesign,sales,marketingandothercreativeareasofthecompanywillcomeintocontactwithsexuallychargedlanguageandvisualimages.Thisisapartofthejobforemployeesworkingintheseareas.7

Asjustoneexampleof"thejob,"in2010,CharneywaspicturedinanAAadvertisementinbedwithtwofemaleemployees.“Ifyou’reoffendedbysexualinnuendoormasturbationorsexualcoloringbooks—ifyou’reoffendedbyanyofthese,thendon’tworkhere,”Charneysaid.Hehasspokenopenlyininterviewsabouthavingsexualrelationswithemployees.8

Asaresult,andafteryearsofallegationsofillegalandunethicalconduct,plusmorerecentlacklusterfinancialperformancebyAA,itsboardofdirectorsfiredCharney,andlater,filedforbankruptcy.22

Havealookofsomeofthe(somewhatshocking)incidentsleadinguptothisdecisionbytheboardanditsultimatedemise:

2005–2006:FourformeremployeesfilledsexualharassmentlawsuitsagainstAA,chargingthattheyweresubjectedtoanunsafeworkingenvironmentinwhichfemaleemployeesfacedsexualmisconductandinnuendo.Twoofthecaseshavebeensettled;thethirdispendinginprivatenegotiations.Regardingthefourthcase,theEqualEmploymentOpportunityCommission(EEOC)determinedthatAAhaddiscriminatedagainst“women,asaclass,onthebasisoftheirfemalegender,bysubjectingthemtosexualharassment.”

2008:AformeremployeesuedAA,assertingthathehadbeenwrongfullyterminatedafterrefusingtopadinventoryreports.Thecompanydenieswrongdoing.

2009:AnimmigrationinvestigationfoundthatmanyofAA’s5,600factoryemployeeswerenotproperlydocumented.Charneywasforcedtolayoffmorethanaquarterofhisproductionworkforce.

2010:TheUSSecurities&ExchangeCommissionopensaninvestigationintoAAafterAA'sauditorsresigned,whentheauditorsinformedAAthatitsfinancialstatementsfor2009maynotbereliable.

2010:ApopularblogclaimedthatAArequiresjobapplicantsforretailpositionstosubmitafull-bodyphotographthatmustbeapprovedbyexecutivesbeforehiringandchargedthatonlymodel-thinwhiteorAsianapplicantstendtomakethecut.

2011:FivemorefemaleemployeesfilledsexualharassmentchargesagainstCharney.AllegationsincludedachargethatCharneypressuredsomeofthemtoperformsexactsagainsttheirwill.

2013:AApostedalossof$106millionanditsstockpriceplungedtojust$0.47fromitshighinprioryearsof$15ashare.AAalsolostsomeofitshigh-level,talentedexecutivesbecauseofCharney’s“relentlesslycontrolling”managementstyle.

2014:Informationemergedaboutanotherlong-runninglawsuitbyaformeremployeewhoclaimedthatCharneycalledtheemployeeahomophobicslurandalsoassaultedhimbychokinghimandrubbingdirtinhisfacebecauseCharneywasdispleasedbythestore’scondition.

2014(June):AA’sboardfinallyremovedCharneyasCEOinJune2014andeventuallyremovedallofhisremainingauthoritywiththecompanyinDecember2014.

2015:Immediatelythereafterthecompanyissuedarevisedcodeofethicsthatwasdesignedto“clarify,update,orenhancethedescriptionsofthestandardsofconductthatwereexpectedofalldirectors,officersandemployeesofthecompany.”ThenewcodeapparentlystrengthensAA’srulespreventingsexualharassmentamongitsemployeesandprohibitsdiscriminatoryslursagainstemployees.

2015:TheSecuritiesandExchangeCommissionopenedanewinvestigationintothecircumstancessurroundingCharney’sexit;andAAsharestookatumble.Atthatpoint,AAhadnotseenaprofitatthatpointforoversixyears.

2015:AAfilesforbankruptcy.

2017:CanadianfirmGildanActivewearpurchasesAAatauctionfor$88million.

Usingethicalanalysis,doyoufeelthatCharneydidanythingwrongbypromotinghispersonalvisionincorporatedecisions,fromadvertisingandproductiontohiringandcorporateculture?Whatarethekeyfactsrelevanttoyourdetermination?

Arethereethicalissuesinvolvedinyourdecision?Pleaseidentify.

Whoarethestakeholdersinthisscenario?Areanystakeholders’rightsabridgedbyCharney’sdecisions?Inwhatway?

Evenifyouanswerednotothefirstquestion,evidentlycertainstakeholdersbelievedthatAmericanApparelactedinappropriately.Wasthereanywaytohavepreventedthenegativepublicityfromhappeninginthefirstplace,withoutundercuttingAmericanApparel’sreputationasananti-corporate,provocativebrand?Whatalternativeswereoriginallyavailabletotheretailer?Howwouldeachofthesenewalternativeshaveaffectedeachofthestakeholdersyouhaveidentified?

DoyoufeelthattheAAboardmadeitsdecisiontofireCharneybasedonhisallegedunethicaland/orillegalconduct,orbecauseofthefinancialperformanceofthecompany?ImagineifAAdidnotpostlosses,butinfacthaddemonstratedfantasticfinancialperformance.Doyoubelievetheboardwouldhaveafiduciarydutytoprotectaleader’spositiondespitehisunethicalbehavior,iftheleaderisconsideredtobethesingular“creativeforce”andvisionaryforthecompany?

AsGildanmovesforwardfromthispoint,whatalternativesnowexistforGildantohealrelationshipswithpriorAAstakeholders?WhatrecommendationswouldyouoffertoGildan?

Introduction

Ethicsintheemploymentcontextisperhapsthemostuniversaltopicinbusinessethicssincenearlyeverypersonwillhavetheexperienceofbeingemployedoremployingsomeoneelse.

UnresolvedEthicalIssues:Whilelegislatorsandthecourtshaveaddressedmanyaspectsoftheworkingenvironment,countlessethicalissuesremainthattheseregulatoryandjudicialbodieshaveleftunresolved.

BeyondtheLaw:Thelawprovidesguidanceforthinkingaboutethicalissuesintheworkplace,butsuchissuesgowellbeyondlegalconsiderations.

Thischapterexploresareasofethicaldecisionmakingintheworkplacewherethelawremainsrelativelyfluidandwhereanswersarenoteasilyfoundbysimplycallingthecompanylawyer.

Thechapteralsoexaminesvariousethicalchallengestheemployeefacesandthenatureofemployerresponsibilities.Althoughindividualperspectivesmaychange,similarconflictsandstakeholderspresentthemselvesacrossbusinesssettings.

UtilizingtheEthicalDecision-MakingProcess:Considerhowyoumightemploytheethicaldecision-makingprocesswehavediscussedtoreachthebestpossibleconclusionforthestakeholdersinvolvedinthesituationsdescribedinthischapter.

Usingtheethicaldecision-makingprocessmayseemcumbersomeattheoutset,butoncetheprocessbecomesembeddedintheprofessionallandscapeandculture,itseffectivenessandefficiencyinresolvingtheseissueswillbecomeapparent.

EthicalIssuesintheWorkplace:TheCurrentEnvironment

EthicsinHumanResources:isaboutourrelationshipswithothersandwithourorganizations.

Researchdemonstratesthat“companiesthatplaceemployeesatthecoreoftheirstrategiesproducehigherlong-termreturnstoshareholdersthandoindustrypeers”–practicallydouble!

DATA:50%ofU.S.workersfeelaverystrongsenseofloyaltytotheiremployer.Whenaskedaboutthegreatestinfluenceontheircommitment,workersrespondedthatthemostimportantfactoristofeelvaluedbyelementssuchasbenefitslikehealthcarecoverageandalsoopportunitiesforprofessionalgrowth—keycomponentsofanethicalworkingenvironment.

DATA:Theseinfluencesplayoutinpracticalwaysforbusinessessinceresearchshowsthat47%ofU.S.workershaveobservedmisconductintheworkplaceduringtheprevioustwelvemonths.

DATA:Seventy-eightpercentofemployeeswhohaveexperiencedunethicaloruncivilbehavioratworkreportthattheircommitmenttotheorganizationdeclined,and66percentreportthattheirperformancedeclined.

DATA:Atthesametime,whenemployeesdonotperceiveapositiveethicalcultureintheworkplace,theytendnottoreportmisconduct.ThatisabigproblemsincetheEthicsResourceCenter'sGlobalBusinessEthicsSurveyfor2018foundasignificantincreaseoverprioryearinpressureonemployeestoengageinmisconduct!

Morethanoneineverysixemployeeshasfeltpressuretodosomethingwrong,andthatisanincreaseofalmost25%since2013.Infact,almosttwo-thirdsofemployeesreportthattheyseebadconductrewardedsotheseviolationsaregoingtohappenoverandoveragain.

*ChapterObjective1AddressedBelow*

PerspectivesonWorkplaceRelationships:Therearetwoverydistinct,andsometimescompeting,perspectivesontheethicsofworkplacerelationships(utilitariananduniversalist,pleaseseebelow):

UTILITARIAN:Employersmightdecidetotreatemployeeswellasameanstoproducegreaterworkplaceharmony,productivity,andinnovation.

Thisraisesaquestionaboutmoralmotivationandinstrumentalist,self-interestedreasonsfordoinggood,whichissimilartoourdiscussionofcorporatesocialresponsibilityinChapter5.

DATA:Contrarytothesecondargument(below),thisperspectivedoesnotclaimthatemployeeshavesomeuniversalrighttoa“happy”workplace.But,acomprehensivereviewofresearchbyJeffreyPfeffersuggeststhatmoreeffective,productivefirmsareindeedcharacterizedbyasetofcommonpractices,allofwhichinvolvetreatingemployeesinhumaneandrespectfulways.

DATAontheRoleofEmotionintheWorkplace:Studiesalsosuggestthatmanagerscanhaveasignificantimpactontheemotionsoftheirworkers,andthisimpactalsocangreatlyaffectproductivityandloyalty,aswellasperceptionsoffairness,care,andconcern.Bottomlineisthat,ifemployeesfeelbetterabouttheirwork,theyaregoingto“workbetter.”

ScholarsNealAshkanasyandCatherineDaussuggestthatmanagersshouldpayattentiontotheemotionalimpactofvariousjobswithintheirworkplaceandmodelapositiveemotionalenvironment.

Rewardsandcompensationstructurescanclearlyimpacttheemotionsofworkers,ascanthecompositionofteamsorthepowerrelationshipswithintheworkplace.

Whenemployeesseethatafirmvaluestheiremotions,aswellasexhibitsvaluessuchashonesty,respect,andtrust,theyfeellesspressure,morevaluedasemployees,andmoresatisfiedwiththeirorganizations.

Sincereportingtoexternalstakeholdershasbecomesuchakeyissueinrecentscandals,onemightalsowanttoconsiderwhetheramoresatisfiedemployeeismoreorlesslikelytoreportmisconducttooutsideparties.

UNIVERSALISM:thesecondperspectiveisthatemployersmighttreatemployeeswelloutofaKantiansenseofdutiesandrights,regardlessoftheeitherutilitarianorself-interestedproductivityconsequences.

Thisdeontologicalapproachemphasizestherightsanddutiesofallemployees,andtreatingemployeeswellsimplybecause“itistherightthingtodo.”

Defendersofemployeerightsarguethatrightsshouldprotectimportantemployeeinterestsfrombeingconstantlysubjectedtoutilitarianandfinancialcalculations.

Thissenseofdutymightstemfromthelaw,professionalcodesofconduct,corporatecodesofconduct,orsuchmoralprinciplesasfairness,justice,orhumanrightsonthepartoftheorganization’sleadership.

*Reference:“RealityCheck–ProtectingEmployeeRightsthroughUnions”*

DefiningtheParametersoftheEmploymentRelationship

LegalandEthicalBoundaries:Theemploymentrelationshipraisesissuesofpower,obligation,responsibility,fairtreatment,andexpectations.Thelivelihoodsofbothpartiesrelyoneachother’scontributionstotherelationship,soitisimportantthatclearboundariesbeestablishedtomaintaintherelationship.

LegalRequirements:Thoughlegalrequirementsmightservetoprotectsomeinterest,theycanonlygosofarandonlycoversomanybases.

Theethicsunderlyingtheconceptsofdueprocessandfairnesscanhelpdeterminewhatisorisnotacceptablebehaviorintheworkplace.

Challengingcircumstances,suchasreductioninforce,maythreatenemployers’abilitytoremaintruetotheprinciplesofdueprocessandfairness.

Theemploymentrelationshipisfurtherdefinedbytheapplicationoftheseprinciplestoworkingconditionssuchashealthandsafety,bothindomesticoperationsandabroad.

Theissuesinthefollowingsections:arepredominantlysettledfromanethicalperspectivebytheirjustification.Inotherwords,forexample,peopleofgoodwillwouldbelikelytoagreethatanemployeehasarighttoasafeandhealthyworkplace.

Disagreementsremain,however,indiscussionssurroundingtheimplementation,interpretation,orextentofthatright.

Thesecondsectionofthischapterexploresseveralissuesthatarenotperceivedassettledfromeitheralegalorethicalpointofview.

Reasonablemindsmaydiffernotonlyastowhetherthemeanstoachievetheendsarejustifiedbutwhethertheendsthemselvesarejust,fair,orethical.Anexampleofthislatterissuewouldbeaffirmativeaction,athornymatterforcourts,managers,andphilosophersalike.

DueProcessandJustCause

*ChapterObjective2AddressedBelow*

Employmentsecurityisperhapsthemostsignificantaspectofworkfromtheemployee’sethicalperspective.

Fundamentalquestionsofjusticearisebecauseemployeesaresubjecttoconsiderableharmsfromalackofsecurityintheirjobsanddonothavemuchpowertocreatesecurity.

Remainingissues:Shouldemployers’rightsandabilitytohire,fire,ordisciplineemployeesberestrictedinordertopreventinjustices?Arethereanyothermeansbywhichtoprotectagainstunethicalbehaviororunjustresults?

TheRightofDueProcess:istherighttobeprotectedagainstthearbitraryuseofauthority.

Inlegalcontexts,dueprocessreferstotheproceduresthatpoliceandcourtsmustfollowinexercisingtheirauthorityovercitizens.Thestate’sauthoritytopunishcitizens,throughpoliceandcourts,createsasafeandorderlysociety.

Thestate’sauthorityisnotunlimited;itcanbeexercisedonlyincertainwaysandundercertainconditions.Dueprocessrightsspecifytheseconditions.

Dueprocessintheworkplaceacknowledgesandemployer’sauthorityoveremployees.Becauseoftheimmensevaluethatworkholdsformostpeople,thethreatoflosingone’sjobisapowerfulmotivationtocomply.

Basicfairness,implementedthroughdueprocess,demandsthatanemployer’spowerbeusedjustly.Thedefinitionofbasicfairnessremainsachallenge.

*Reference:“RealityCheck–ProtestsinSupportofEmploymentSecurityinEurope”*

DATA:Ina2017survey,19percentofworkersreportedthattheyhadexperiencedworkplace“bullying”firsthand,definedas“therepeated,malicious,health-endangeringmistreatmentofoneemployee…byoneormoreemployees,”andanother19percenthadwitnessedit.

Themistreatmentneednotbephysicallythreatening,ofcourse,butmightsimplyinvolveabosswhoisconstantlyyellingdictatesatworkers,oraco-workerwhospreadsrumorsaboutanotherinordertosabotagehisorherposition.

Thesebehaviorsleadnotonlytoemotionalabusebutacompletelossofpersonaldignity,intimidationandfear.

Evidencedemonstratesthat,notonlydoestheemployerhavesignificantbottomlineexpensesfromworkers’compensationclaimsbasedonstressandotheremotionalstimuli,butalsocostsrelatedtopotentiallitigationarisingfromclaimsofabusiveworksituations.

Thereisalsotheindirectimpactonemployeemorale,andcertainlythenegativeeffectsthatoccurwhenonewouldprefernottobeattheworkplace:turnover,absenteeism,poorcustomerrelationships,andactsofsabotage.

Theissueofworkplacebullyingisonethatwehearaboutmoreandmore,especiallyineconomiesbasedonstrongservicesectorswheretheworkreliessignificantlyoninterpersonalrelationshipsandinteraction.

*Reference:DecisionPoint:“BullyingintheWorkplace?”

DecisionPoint

BullyingintheWorkplace

ThisDecisionPointaddressesanti-bullyinglegislationthatwouldenablevictimsofworkplacebullyingtosuetheirharassersandholdtheiremployersaccountable.Advocatesofanti-bullyinglawsarguethattheextentoftheproblem,whenconsideredalongsideevidencethatbullyingcausessignificantphysical,emotionalandeconomicharmtoitsvictims,callsforalegislativeresponse.Ontheotherhand,criticsworrythatanti-bullyinglegislationwouldleadtoaspikeinemployeelawsuits,andpointtothedifficultyofdeterminingwhetherabusivebullyinghastakenplace,particularlyinhigh-pressureworkenvironments.

Surveysshowthatatleast38percentofU.S.workershaveexperiencedbullyingintheirplaceofemploymentorhaveseenothersexperiencebullying.

Since2003,30statesand2territorieshaveintroducedworkplacebullyinglegislationthatwouldallowworkerstosueforharassmentwithoutrequiringanyevidenceofdiscrimination.NewHampshire,forexample,beganconsideringabillin2013thatdefinesbullyingbroadlyandwouldinclude“therepeateduseofderogatoryremarks,insults,andepithets,aswellasconductthata‘reasonableperson’wouldfindthreatening,intimidatingorhumiliating.”ThebillpassedboththeNewHampshireHouseandSenate,onlytobevetoedbythegovernor.Asof2018,onlyoneUSstate—Tennessee—haspassedananti-bullyingstatuteintolaw.

OthercountrieshaveprogressedbeyondtheUnitedStatedintheirprotectionofemployeesinthisarea.Queensland,AustraliaprohibitsworkplacebullyingunderitsWorkplaceHealthandSafetyAct,whileQuebec,Canadaprotectsemployeesthroughthepsychologicalharassmentsectionofitslaborstandards.IrelandincludesapreventionandresolutionofbullyinginitsCodeofPracticetheworkplace,whileSwedencontainsspecificprovisionsagainstbullyinginitsProvisionsonmeasuresagainstVictimizationatWork.

Studentsareaskedtoconsiderthefollowingquestionsconcerninganti-bullyinglegislation:

Howwouldyoudefine“bullying”ifyouweretodesignananti-bullyinglaw?Whatstakeholdergroupsshouldbeconsideredincraftingyourdefinition?

Asamanager,whatstepsmightyoutaketopreventbullyingbehaviorinyourcompany?

Doyoubelievethatlegislationisneededtorespondtotheproblemofworkplacebullying?Whyorwhynot?

A2017studyrevealedthatthemajorityofworkplacebullyingisagainstwomen(two-thirds),withbasicallythesamelevelofbullyingcomingfrommenasfromwomen (65%frommenand67%fromwomen).Howdothesedataaffectyourviewsaboutanti-bullyinglegislation?Whyorwhynot?

*ChapterObjective3AddressedBelow*

EmploymentatWill:MuchemploymentlawwithintheUnitedStatesinsteadevolvedinacontextofalegaldoctrineknownasemploymentatwill.Employmentatwill(EAW)holdsthat,absentaparticularcontractualorotherlegalobligationthatspecifiesthelengthorconditionsofemployment,allemployeesareemployed“atwill.”

*Reference:“RealityCheck–Employing‘Employees’”

Unlessanagreementspecifiesotherwise,employersarefreetofireanemployeeatanytimeandforanyreason.

AnEAWworkermayopttoleaveajobatanytimeforanyreason,withoutofferinganynoticeatall;sothefreedomistheoreticallymutual.

TheEthicalRationaleforEAW:EmploymentatWillhasbothutilitariananddeontologicalelements.EAWwasthoughttobeanimportantmanagementtool.

Totaldiscretionoveremploymentgivesmanagertheabilitytomakeefficientdecisionsthatshouldcontributetothegreateroverallgood.

Itwasthoughtthatthemanagerwouldbeinthebestpositiontoknowwhatwasbestforthefirmandthatthelawshouldnotinterferewiththosedecisions.

AnotherbasisforEAWwastherightsofprivatepropertyownerstocontroltheirpropertybycontrollingwhoworksforthem.

LimitstoEAW:BothlegalandethicalanalysesdemonstratethattherearegoodreasonstolimitEAW.EvenifEAWprovedtobeaneffectivemanagementtool,justicedemandsthatsuchtoolsnotbeusedtoharmotherpeople.

Evenifprivatepropertyrightsgrantmanagersauthorityoveremployees,therightofprivatepropertyitselfislimitedbyotherrightsandduties.

Thefreedomtoterminatetherelationshipistheoreticallymutual,howevertheemployerisoftenresponsiblefortheemployee’slivelihood,whichcreatesanunbalancedpowerrelationshipbetweenthetwoparties.

ExceptionstoEAW:ManycourtsandlegislatureshavecreatedexceptionstotheEAWrule.Civilrightslaws,forexample,prohibitfiringsomeoneonthebasisofmembershipincertainprohibitedclasses,suchasrace,sex,disability,age,nationalorigin,religion,orethnicbackground.

Laborlawspreventemployersfromfiringsomeoneforunionactivities.

Whentheemployeristhegovernment,constitutionallimitationsongovernmentauthorityareextendedintotheworkplacetoprotectemployees.

*ReferenceTable6.1Here*

EAWHasPriority:AcrucialelementtorecognizewiththeseexceptionsisthefactthatEAWhaspriorityunlesstheemployeecanprovethatherorhiscasefallsunderoneoftheexceptions.Thatis,EAWisthedefaultpositiononwhichcourtswillrelyuntilandunlessanexceptioncanbedemonstrated.

Theburdenofprooflieswiththedismissedemployeetoshowthatsheorhewasunjustlyorillegallyfired.

Dueprocessandjustcause,whetherinstitutedaspartofinternalcorporatepolicyorthroughlegislation,wouldreversethisburdenofproofandrequireemployerstoshowcausetojustifythedismissalofanemployee.

DueProcessinOtherEmploymentContexts:Beingtreatedfairlyintheworkplacealsoinvolvesfairnessinareassuchaspromotions,salary,benefits,andworkconditions.

Becausesuchdecisionsaretypicallymadeonthebasisofperformanceappraisals,dueprocessrightsshouldalsoextendtotheseaspectsoftheworkplace.

EthicalQuestions:

IntheEAWenvironmenttheseethicalquestionsremain:

Isthisatmosphereonethatismostfairandjustforallstakeholders?

Doesitleadtothemosteffectiveemploymentoutcomes?

Doesitsatisfactorilyguardtherightsandinterestofbothemployersandemployees?

Considerthekeyfactsrelevanttoissuesofdueprocessandfairness.

EXAMPLE:Ifyouarestrivingtoservetheautonomyoftheemployer,couldyouperhapsservethedueprocessinterestoftheemployeebyofferingadditionalnoticeofterminationormoreinformationaboutalternatives?

Dueprocessistherighttobeprotectedagainstarbitraryuseofauthority,soitasthedecision-maker,itisyourroletoensureprotectionagainstthosearbitrarydecisions.

Theover-archingobligation,here,istomakesurethatdecisionsaremadeinlightofreasonsthatcanbedefendedfromanethicalperspective.

Downsizing:Terminatingmanyemployeesatoncecanhavebothemotionalandethicalimplications.

Terminatingworkersisnotnecessarilyanunethicaldecision,butitraisesethicalquandariessincealternativesmaybeavailabletoanorganizationinfinancialdifficulty.

Sinceahostofnegativeconsequencesmayresult,thesealternativesmayposeamoreeffectiveoptionfromtheperspectiveofallstakeholdersinvolved.

Themoreresponsibilitygiventoleadershipforthedownsizing,themorelikelythatstakeholdersalsowillhaveanegativeperceptionofafirm’scommitmenttocorporatesocialresponsibility.

*ChapterObjective4AddressedBelow*

Oncethedecisiontodownsizehasbeenmade,onemustconsiderwhethertherearewaysanorganizationcanactmoreethicallyintheprocess.

Importantfactorstoconsiderarerespect,dignity,transparency,andconsistency.Forinstance,whenafirmdecidestodownsize,itiscriticaltolessentheimpactasmuchaspossibleandtoallowtheterminatedemployeestodepartwithdignity.Itiscriticaltobeho

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