2. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-1 Chapter 16 Employee Stakeholders and Workplace Issues 1 Employee Stakeholders and Workplace Issues Search the Web The Department of Labor maintains an online Corporate Citizenship Resource Center at: www.ttrc.doleta.gov/citizen www.ttrc.doleta.gov/citizen

3. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-2 Chapter 16 Employee Stakeholders and Workplace Issues 2 Chapter Sixteen Objectives Identify the major changes occurring in the workforce today Outline the new social contract between employers and employees Explain the employee rights movement Discuss the employment-at-will doctrine Discuss the right to due process and fair treatment Describe the actions companies are taking to make the workplace friendlier Elaborate on the freedom-of-speech issue and whistle blowing

4. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-3 Chapter 16 Employee Stakeholders and Workplace Issues Chapter Sixteen Outline The New Social Contract The Employee Rights Movement The Right to a Job/Not to Be Fired Without Cause The Right to Due Process and Fair Treatment Freedom of Speech in the Workplace Whistle Blowing Summary

5. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-4 Chapter 16 Employee Stakeholders and Workplace Issues Introduction to Chapter Sixteen Consider how global competition has reshaped the social contract between organizations and their workers Consider the trend of expanding employee rights –Right not to be fired without just cause –Right to due process and fair treatment –Right to freedom of speech within the workplace

6. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-5 Chapter 16 Employee Stakeholders and Workplace Issues The New Social Contract Business Organization’s Expectations Employee’s Expectations Understandings

7. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-6 Chapter 16 Employee Stakeholders and Workplace Issues Social Contract Reasons for the Change in the Social Contract Global Competition Technology advances Deregulation

8. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-7 Chapter 16 Employee Stakeholders and Workplace Issues Social Contract: Changes Old Social ContractNew Social Contract Job securityFew tenure arrangements Life careers with one employerFew life careers; changes common Loyalty to employerLoyalty to self PaternalismRelationships far less familial Sense of entitlement Personal responsibility for one’s job future Stable, rising incomePay for “value added” Focus on individual accomplishments Focus on team building and projects

9. Social Contract: New View

10. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-9 Chapter 16 Employee Stakeholders and Workplace Issues Employee Rights Movement For nonunion workers, employee rights issue continues to be a problem... That is, the employees’ desires to be treated with dignity and respect, to have a right to due process, privacy, freedom of speech, and safety, and even a right to a job.

11. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-10 Chapter 16 Employee Stakeholders and Workplace Issues Employee Rights Movement Sources of Employee Rights Statutory rights Collective bargaining rights Enterprise rights

12. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-11 Chapter 16 Employee Stakeholders and Workplace Issues Employee Rights Movement Models of Management Morality and their Orientation Toward Employees MoralAmoral Immoral End Law Means

13. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-12 Chapter 16 Employee Stakeholders and Workplace Issues Right Not to be Fired Without Just Cause Employment-at-Will Doctrine Public policy exceptions Contractual actions Breach of good faith actions

14. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-13 Chapter 16 Employee Stakeholders and Workplace Issues Right Not to be Fired Without Just Cause 1.Stay on the right side of the law 2.Investigate complaints in good faith 3.Deal in good faith with employees 4.Fire only for good cause Management’s Response

15. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-14 Chapter 16 Employee Stakeholders and Workplace Issues The Right to Due Process Types of Due Process Substantive due process –Right to fair treatment Procedural due process –Right to a fair system of decision making

16. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-15 Chapter 16 Employee Stakeholders and Workplace Issues The Right to Due Process Procedure Visible Effective Institutionalized Equitable Easy to use Apply to all employees Employee Constitutionalism

17. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-16 Chapter 16 Employee Stakeholders and Workplace Issues Alternative Dispute Resolution Common Approach Open door policy Three concerns –Process is closed –One person review –Bias in favor of managers

18. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-17 Chapter 16 Employee Stakeholders and Workplace Issues Alternative Dispute Resolution: Ethical Ways for Due Process Peer Review Panel Peer Review Panel—Fellow workers in the same job family and at a grade level equal to or higher than the employee with a grievance Hearing procedure Hearing procedure—permits employees to be represented by attorney or neutral party Ombudsperson Ombudsperson—A “troubleshooter” investigates and helps achieve equitable settlements for employee complaints

19. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-18 Chapter 16 Employee Stakeholders and Workplace Issues Whistle Blowing (Has certain rights) Corporat e Employer Loyalty Obedience Confidentiality PublicPublic Employe e Corporat e Employer Whistle blowing Employe e Responsibility (Has certain rights)

20. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-19 Chapter 16 Employee Stakeholders and Workplace Issues Consequences of Whistle-Blowing Increased criticism of work Less desirable work assignments Pressure to drop charges against the company Heavier workloads Loss perquisites Exclusion from meetings

21. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-20 Chapter 16 Employee Stakeholders and Workplace Issues Whistle-Blowing Seven Stages of Life of a Whistle-Blower Discovery of the organizational abuse Reflection on what action to take Confrontation with superiors Retaliation against the whistle-blower Long haul of legal action Termination of the case Going on to a new life

22. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-21 Chapter 16 Employee Stakeholders and Workplace Issues Whistle-Blowing Examples of Government Protection Civil Service Reform Act Whistle-Blowers Protection Act of Michigan False Claims Act

23. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-22 Chapter 16 Employee Stakeholders and Workplace Issues Management’s Preemptive Responses to Whistle-Blowing The company should assure employees that the organization will not interfere with their basic political freedoms. Grievance procedure should be streamlined so that employees can direct complaints and not “blow the whistle.” Review the organization’s concept of social responsibility so that it is not simply corporate giving to charity.

24. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-23 Chapter 16 Employee Stakeholders and Workplace Issues Management’s Preemptive Responses to Whistle-Blowing Formally recognize respect for the individual consciences of employees. Realize that dealing harshly with whistle blowing can result in adverse public reaction.

25. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-24 Chapter 16 Employee Stakeholders and Workplace Issues 1978 Civil Service Reform Act Alternative dispute resolution (ADR) Collective bargaining Due process Employee constitutionalism Employee rights Employment-at-will doctrine Enterprise rights False Claims Act Good faith principle Hearing procedure Selected Key Terms

26. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 16-25 Chapter 16 Employee Stakeholders and Workplace Issues Selected Key Terms Implied contracts Ombudsperson Open-door policy Peer review panel Private property Public policy exception Social contract Statutory rights Whistle-blower