Ethical Theory Business

1. Ethical Theory & Business Employee Rights & Responsibilities

2. Class Debates Thursday November 6 Thursday November 13 Thursday November 20 Thursday November 25

3. Do people have a right to a job? Two components: Workers believe they have a right to a job in the first place. As employees continue to work at a job, they believe they have a right to retain that job. This view is not widely held

4. Employment-at-will Principle �The freedom of the employee to quit, the freedom of the employer to fire, and the right of the employer to order the employee to do his bidding define the essence of the employment contract� (p. 256).

5. Employee Disobedience An employee�s job is protected under common law if an employee disobeys an employer on the grounds that the employer ordered him to do something illegal or immoral.

6. Bill of Rights Americans are protected against government infringements of the Bill of Rights, but they are not protected against corporate infringement of these rights. Why? Inefficient ? breakdown in discipline

7. The Right to Privacy Not explicitly listed in the Constitution Problem Areas Profiling Rising Cost of Health Insurance Genetic Testing Drug Testing Monitoring of Employees

8. The Right to Privacy When are Americans likely to sacrifice privacy? For gains in health, safety, or efficiency

9. Employee Responsibilities Employees have moral obligations to: respect the property of the corporation abide by employment contracts, and operate within the bounds of the company�s procedural rules. It is legally established that an employer has a right to loyalty

10. Law of Agency �An agent is subject to his principal to act solely for the benefit of the principal in all matters connected with his agency. Specifically, the agent is also under a duty not to act or speak disloyally, and the agent is to keep confidential any information acquired by him as an employee that might damage the agent or his business� (p. 264).

11. Werhane & Radin Due Process � means by which a person can appeal a decision in order to get an explanation of that action and an opportunity to argue against it. Procedural Due Process � the right to a hearing, trial, grievance procedure, or appeal when a decision is made concerning oneself.

12. Werhane & Radin Employment-at-will Justifications: Proprietary rights of employers Defends employee and employer rights equally An employee voluntarily commits to certain responsibilities and loyalty Due process rights interferes with efficiency and productivity Legislation and regulation of employment relationships undermine the economy.

13. Werhane & Radin Problems: Analogous to considering employees as a piece of property Arbitrary treatment of employees extends prerogatives to mangers that are not equally available to employees If there is an expectation of employee loyalty, this should be reciprocated

14. Werhane & Radin �The institution of due process in the workplace is a moral requirement consistent with rationality and consistency expected in management decision-making. It is not precluded by EAW, and it is compatible with the overlap between the public and private sectors of the economy� (p. 274).

15. Epstein National Labor Relations Act � set the basic structure for collective bargaining. Title VII of the Civil Rights Act � offers extensive protection to all individuals against discrimination on the basis of race, sex, religion, or national origin.

16. Epstein EAW is adopted not because it allows the employer to exploit the employee, but rather because over a very broad range of circumstances it works to the mutual benefit of both parties, where the benefits are measured at the time of the contract�s formation and not at the time of dispute.

17. Epstein The Fairness of the Contract at Will Freedom of contract is an aspect of individual liberty. The individual parties have better information about their preferences The contract is sought by both parties Rules out the use of force or fraud

18. Epstein The Utility of the Contract at Will The issue is how to maximize the gain form the relationship, which is dependent upon minimizing employee and employer abuse Monitoring Behavior Reputational Losses Risk Diversification and Imperfect Information Administrative Costs

19. Epstein Distributional Concerns Those who tend to slack off seem to be most vulnerable to dismissal under the at-will rule

20. Is an Employer Morally Entitled to Loyalty? The duty of loyalty is a prima facie duty When a corporation is engaged in activity that is seriously wrong, employees may have a higher obligation to be disloyal to their employer and blow the whistle.

21. Whistleblowing There are two sides: Those who view them as civic heroes, and Those who view them as finks

22. Duska Argues that employees do not have an obligation to the company, not even a prima facie duty, because companies are not objects of loyalty. Why? What binds people together in a business is not sufficient to require loyalty. A company feels no obligation of loyalty

23. Koehn Whistleblowing: �persons who sound an alarm from within the very organization in which they work, aiming to spotlight neglect or abuses that threaten the public interest� (p. 331).

24. Koehn Whistleblowing and its effect on trust They try to portray themselves as acting on behalf of an interest higher then their own � the public interest. Believe that there is a substantial audience who will attend to their disclosures. They are leveling an accusation of neglect or abuse at particular persons within the corporation.

25. Koehn The end, not the group per se, commands group members� loyalty. The wrongness in whistleblowing is found in acting to destroy workplace atmosphere if and when this destruction could have been avoided.

26. Koehn Responsibilities of the Corporation Provide a forum for free and open discussion Examine the tasks they impose on employees Grant employees access to information about company practices Critically examine their actions

27. Koehn Responsibilities of the Whistleblower Must be willing to come forward and be identified Critically examine the position they are being asked to assume Seek out and consider the implications of available information Critically examine their actions