Employee Stakeholders and Corporation

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Copyright © 2003 by South-

Western, a division of Thomson Learning 1

Chapter Six

EmployeeStakeholders

And

The Corporation



Copyright © 2003 by South-Western, a division of Thomson Learning 2

Chapter Topics

1. Employee stakeholders: Theworkforce in the 21st century

2. The changing social contract between

corporations and employees3. Employee and employer rights and

responsibilities

4. iscrimination! e"ual employment

opportunity! and a#rmati$e action%. &arassment in the workplace

'. (histle)blowing $ersusorgani*ational loyalty




The (orkforce ,n The 21st

Century

(ithin the conte-t of the digital economy/ the followingchanges with employees and stakeholders occur:

0 shift to knowledge work The concept of a ob for life is dying) ,5E T,6E 78 Compensation! income! and the social distribution of bene9ts

are shifting do!n for "o!-midd"e professiona"s# up for high"ys$i""ed%

uality of work life is not inherent in the uses of technology 5i$e predicted trends in the work)life of employees

include: emographics will dri$e a growing focus on family! personal!

and spiritual matters Employees will demand schedules that work for them ,nternet)age $alues will take deeper root 0 back)to)basics trend ,t will get harder to tell work and home lifestyles apart



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Employee +takeholders:The (orkforce ,n The 21st

Century +e$eral demographic trends that were

predicted ha$e been and are being reali*ed: The workforce is aging ;0<E ,+C=,6,0T,>

6anagerial leadership positions are moredi#cult to 9ll (omen entrants are increasing ;&0==0+6ET> (orkforce cultures are mi-ing ;Con?icting

$alues and beliefs> The education gap continues ;lack of skilled

trade workers! educational and skill challenges> The le$el of education lags The number of employees with disabilities is

e-panding ;discrimination>



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Century The trends in the workforce

necessitate accommodation frommanagers and employees. 6oral

and legal con?ict will likely increaseif action is not taken with regard to:

0ge discrimination

&arassment &ealth care pro$isions

Educational challenges

@aradigm shift toward a new work life

model



5igure '.2: E$olution of (orkand 5amily ife 6odels



easons $en y omen an6en> for the ack of

0d$ancement of

(omen in the (orkplace '2( be"ieved ma"e stereotyping and

pre)on)eptions of !omen !ere primary fa)tors inho"ding !omen ba)$ (25% of men supported this)

&*( be"ieved e+)"usion from informa" net!or$s of)ommuni)ation !as a primary reason (15% of mensupported this)

&( )hose their o!n "a)$ of genera" managementor "ine e+perien)e as a primary barrier to

advan)ement (82% of men supported this)



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Century The following

$alues wereidenti9ed as

moti$ators forprofessionals: Competiti$e pay 8ene9ts and

opportunities 0 fair deal 8eing $alued ecent relationships

(orkforce 2AAA/related $aluesconsidered most

important include: =ecognition =espect and dignity @ersonal choice ,n$ol$ement at work @ride in work uality of lifestyle 5inancial security +elf)de$elopment &ealth and wellness



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Century <enerational analysis looks at

diBerences among world $iews!

attitudes! and $alues ofgenerations of 0mericans:

<, generation

+ilent generation

8aby boomers

<eneration

<eneration D



<enerational ,ssues ./ .eneration born bet!een 1*011*2' .reat epression, Wor"d War //

Si"ent .eneration born bet!een 1*2

1*&& atriotism, se"f-sa)ri4)e

5aby 5oomers born bet!een 1*&'1*& 6ietnam, )ivi" rights, instant grati4)ation

.eneration 7 born bet!een 1*'1*1 /nse)urity, va"ue !or$8"ife ba"an)e

.eneration 9 born bet!een 1*22003 :mbitious, sense of entit"ement, team vs;

individua"




The Changing +ocial Contract8etween Corporations and

Employees The social contract that has

historically de9ned the

employeeemployer relationshipis known as the employment)at)will ;E0(> doctrine.

<The right of an emp"oyer to 4re an

emp"oyee !ithout giving a reason andthe right of an emp"oyee to =uit !henhe or she )hooses>



Employee =ights

?ights based on a <mora" )"aim> ?ight to freedom

?ight to !e""-being

?ights based on a prin)ip"esdetermined by "a!

?ights re"ated to@ Ainimum !age is)rimination based on ra)e, )reed, age,

nationa" origin, gender, or disabi"ity




Employee 0nd Employer

=ights 0nd =esponsibilities The ideal relationship between employer

and employees is one based on mutualrespect and trust.

0 right can be understood as a moralclaim./ The moral foundation for employee rights

is based on the fact that employees arepersons.

The e$ol$ing social contract betweenemployers and employees still recogni*esemployersF power o$er physical andmaterial property! but the contractualrelationship aims in principle at balance!

mutual respect! integrity! and fairness.



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Employee 0nd Employer=ights 0nd =esponsibilities

Employers are obliged to: @ay employees fair! competiti$e wages for work

performed To pro$ide safe working conditions

( Employees are responsible for:

5ul9lling their contractual obligations to thecorporation

5or following the goals! procedural rules! and workplans

5or performing producti$ely Timeliness 0$oiding absenteeism 0cting legally and morally =especting the intellectual and property rights of the

employer



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=ights 0nd =esponsibilities 6aor types of employee rights

in the workplace include:

=ight not to be terminated without ust cause

=ight to due process =ight to pri$acy

=ight to workplace health andsafety

=ight to organi*e and strike

=ights regarding plant closings



ue @rocess

=e"uirements ?ight to a pub"i) hearing

?ight to have peer eva"uations

?ight to obtain e+terna" arbitration

?ight to an open, mutua""yapproved grievan)e pro)edure





=ights 0nd =esponsibilities EmployeesF right to pri$acy

remains one of the most debatedand contro$ersial rights. 0reascentered around issues ofpri$acy include:

Technology use @olygraph and psychological testing (orkplace sur$eillance ,nternet use rug testing

<enetic discrimination



egally)Gpheld @ri$acy

Hiolations /ntrusion ub"i)ation of private matters

:ppropriation of an emp"oyeeBs name for)ommer)ia" uses avesdropping on emp"oyee )onversations

and retrieving or a))essing emp"oyee e-mai"if unauthoriDed%

ermissib"e in=uiries if Eob re"ated%@ Crimina" history in=uiries Credit history in=uiries



Employee

6onitoring @olicies /nform emp"oyees not to assume priva)y in the

!or$p"a)e ?e=uire emp"oyees to a)$no!"edge the

)ompanyBs priva)y po"i)y in !riting Fse private information on"y for "egitimate

purposes Limit a))ess to private information about

emp"oyees to on"y those !ith a need to $no! Gbtain signed permission re"eases and !aivers

before using an emp"oyeeBs name or photographin any )ommer)ia" advertisement, promotiona"materia" or training 4"m




iscrimination! E"ualEmployment pportunity!

0nd 0#rmati$e 0ction =ecently! discrimination has surfaced in

a number of categories including: =acial pro9ling

,ncome disparities =atio of female compensation compared to

male

E-amples of discriminatory practicesha$e been found in:

=ecruitment +creening @romotion Termination Conditions of employment

ischarge



5our +teps for 6anagersto Gse (hen @reparing

Corporate @ri$acy @olicies repare a <priva)y impa)t

statement>

Constru)t a )omprehensive priva)yp"an

Train emp"oyees !ho hand"epersona" information

Aa$e priva)y part of so)ia"responsibi"ity programs





0nd 0#rmati$e 0ction 0#rmati$e action programs are a

proacti$e attempt to recruitapplicants from minority groups to

create opportunities for those whowould be e-cluded from the obmarket.

0#rmati$e action as a doctrine isderi$ed from se$eral ethical principlesthat ser$e as bases for laws:

@rinciple of ustice Gtilitarian principle =ights principle



0#rmati$e 0ction :Hrmative a)tion does not Eustify hiring un=ua"i4ed

minority group members over =ua"i4ed !hite ma"es; :""individua"s must be =ua"i4ed for the positions in=uestion

Iua"i4ed !omen and minority members )an be givenpreferen)e mora""y, on the basis of gender or ra)e,over e=ua""y =ua"i4ed !hite ma"es to a)hieveaHrmative a)tion goa"s

Iua"i4ed !omen and minority members )an be given

preferen)e mora""y over better-=ua"i4ed !hite ma"es,a"so, to a)hieve aHrmative a)tion goa"s Companies must ma$e ade=uate progress to!ard

a)hieving aHrmative a)tion goa"s even thoughpreferentia" hiring is not mandatory

i i i i l



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0nd 0#rmati$e 0ction =e$erse discrimination is alleged to occur when

an e"ually "uali9ed woman or minority memberis gi$en hiring preference o$er males.



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&arassment ,n The

(orkplace &arassment remains among the

most prominent ci$il right issuesin the workplace.

5orms of harassment include: Coercion

5a$oritism

,ndirect harassment @hysical conduct

Hisual harassment

+e-ual harrasment




(histle)8lowing Hersus

rgani*ational oyalty e<eorge has identi9ed 9$e

conditions when whistle)blowing ismorally usti9ed.

5i$e instances when whistle)blowing is not usti9ed ha$e been suggested.

There ha$e been twel$e guidelinesthat oBer factors which should be

considered before deciding to blowthe whistle/ on an employer.

5our managerial steps to pre$ente-ternal whistle)blowing ha$e been

suggested.

(hi h (hi tl 8l i ,



(hich (histle)8lowing ,s 7usti9ed

When the 4rm, through a produ)t or po"i)y,!i"" )ommit serious and )onsiderab"e harm tothe pub"i) as )onsumers or bystanders%, the

emp"oyee shou"d report the 4rm When the emp"oyee identi4es a serious threat

of harm, he or she shou"d report it and statehis or her mora" )on)ern

When the emp"oyeeBs immediate supervisordoes not a)t, the emp"oyee shou"d e+haustthe interna" pro)edures and )hain of)ommand to the board of dire)tors



5i$e Conditions Gnder (hich(histle)8lowing ,s 7usti9ed

;conFt> The emp"oyee must have do)umented eviden)e

that is )onvin)ing to a reasonab"e, impartia"observer that his or her vie! of the situation is

a))urate and eviden)e that the 4rmBs pra)ti)e,produ)t, or po"i)y serious"y threatens and putsin danger the pub"i) or produ)t user

The emp"oyee must have va"id reasons tobe"ieve that revea"ing the !rongdoing to the

pub"i) !i"" resu"t in the )hanges ne)essary toremedy the situation; The )han)e of su))eedingmust be e=ua" to the ris$ and danger theemp"oyee ta$es to b"o! the !hist"e



(hen (histle)8lowers

+hould ot 8e @rotected When divu"ging information about "ega" and

ethi)a" p"ans, pra)ti)es, operations, inventions,and other matters that shou"d remain

)on4dentia" and that are ne)essary for theorganiDation to perform its !or$ eH)ient"y When an emp"oyeeBs persona" a))usations or

s"urs are irre"evant to =uestions about po"i)iesand pra)ti)es that appear i""ega" or irresponsib"e

When an emp"oyeeBs a))usations do not sho! a)onvi)tion that a !rongdoing is being)ommitted and !hen su)h a))usations disruptor damage the organiDationBs mora"e

(hen (histle 8lowers



(hen (histle)8lowers+hould ot 8e @rotected

;conFt> When emp"oyees )omp"ain against a

managerBs )ompeten)e to ma$e dai"y !or$de)isions that are irre"evant to the "ega"ity,

mora"ity, or responsibi"ity of managementa)tions

When emp"oyees obEe)t to their dis)harge,transfer, or demotion if management )an sho!

that unsatisfa)tory performan)e or vio"ation ofa )ode of )ondu)t !as the reason for thede)ision

6anagerial +teps to



6anagerial +teps to@re$ent the eed for

(histle)8lowing eve"op eJe)tive interna" grievan)e pro)edures

and pro)esses that emp"oyees )an use to report!rongdoings

?e!ard peop"e for using these )hanne"s :ppoint senior e+e)utives and others !hose

primary responsibi"ities are to investigate andreport !rongdoing

:ssess "arge 4nes for i""ega" a)tions; /n)"udee+e)utives and professiona"s !ho 4"e fa"se ori""ega" reports, !ho $no!ing"y mar$et dangerousprodu)ts, or !ho oJer bribes or ta$e $i)$ba)$s

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