Chapter 17-1 Chapter 17 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Prepared by Deborah Baker Texas Christian University  EMPLOYEE STAKEHOLDERS: PRIVACY, SAFETY, and HEALTH

Chapter 17-2 What responsibilities do we have to our employees? Provide safe & healthy workplace Respect their right to privacy Provide support –Employee assistance plans –Family support

Chapter 17-3 Workplace Privacy Issues 1.Collection/ use of employee information in personnel files 2.Use of the polygraph 3.Honesty testing 4.Drug testing 5. Monitoring employees (work, behavior, location, conversations)

Chapter 17-4 Collection & Use of Employee Information  Privacy Act 1974  USA Patriot Act 2001  Department of Health and Human Services 2001 Health care providers release minimum info Health info can’t be used for non health reasons w/o authorization from patient  Americans with Disabilities Act (ADA) Employers must keep medical info confidential Illegal to make employment decisions based on medical conditions that don’t affect ability to perform job.

Chapter 17-5 Employee Polygraph Protection Act 1988 Banned use of lie detector by private employers Exceptions : –security services –protection of nuclear facilities –shipment or storage of radioactive or toxic waste –controlled substances –public water supply –public transportation –federal government. Polygraph

Chapter 17-6 Polygraph ProsCons  Employers have a right to protect property  95% accuracy  More reliable & less expensive than alternatives  Gathers only information the company has a legitimate right to know (if administered properly)  Inaccurate diagnoses in 50% of cases  Probes into zones of privacy that are personal & not job related

Chapter 17-7 Integrity Testing Avoid “negligent hiring” suits Screen employees cost-effectively Replace polygraphs Reduce employee theft Reasons for Use

Chapter 17-8 Integrity Testing Critics say:  They are unreliable  Causes employers to reject honest job applicants  Doesn’t always weed out dishonest applicants  They are intrusive & invasion of privacy.

Chapter 17-9 High cost of drug abuse  Increased injuries  Increased theft  Increased propensity to make poor decisions Ethical responsibility to employees & public to provide  Safe workplaces  Secure asset protection  Safe places to transact business For Drug Testing

Chapter  Violates due process rights (questionable accuracy)  Invades privacy rights  Reduces morale  Tests show use, not abuse (at home)  High cost  Grants greater weight to employers than employees  Ignores employee’s actual performance. Against Drug Testing

Chapter  Do not discipline someone for refusing to take drug test  Use only when there is legitimate suspicion of abuse  Focus on on-the-job performance  Employees should be informed of methods used & results  A confirmatory test should be conducted  Conduct in a way to respect employee dignity & privacy. Guidelines for Drug Testing

Chapter State Law  Some restrict drug testing to reasonable suspicion Federal Law  Americans with Disabilities Act Can’t order medical exam unless job offered Pre-hire drug testing allowed  Mandatory testing programs (yearly, random ) Federal workers Transportation workers (aviation, trucking, mass transit) Drug Testing Legislation

Chapter Why? 1.Employees are valuable 2.Better to help troubled employees than fire them 3.Recovered employees are better employees What do EAPs assist employees with? Employee Assistance Programs

Chapter Employee Monitoring At 82% of mid- to large-sized firms  video cameras  listening devices  Internet uses  telephone calls   GPS  camera phones

Chapter Right to Privacy  Invades privacy  Treats employees unfairly  Creates stress & tension  Produces low morale  Creates a sense of job insecurity Effects of Employee Monitoring

Chapter Chief Privacy Officer (CPO) High ranking executive responsible for monitoring & protecting the private information held by firms

Chapter What federal agency?  Reduces occupational hazards  Promotes a safe & healthy workplace Workplace Safety

Chapter OSHA  Inventories & labels hazardous chemicals in workplace  Train workers on use of hazardous chemicals

Chapter OSHA Employee Responsibilities and Rights Employees shall  comply with standards, rules, regulations  use safety equipment, protective equipment, & procedures provided  have the right to report unsafe or unhealthful working conditions  be authorized official time to participate in the activities.

Chapter Workplace Violence Statistics  Each workday… 16,400 threats 723 workers are attacked 43,800 workers are harassed  >1,000 homicides at work yearly  1 in 4 workers attacked, harassed or threatened! –Mostly by current coworkers

Chapter Workplace Violence Workers who…  exchange money with public  deliver (passengers, G/S)  work alone  work late at night or early morning  work in community settings with extensive public contact  work in high-crime areas. Who Is Affected?

Chapter Provide safety education (what to do if you see it?) 2. Secure the workplace (alarms, surveillance, guards, keys) 3. Provide drop safes (limit cash on hand) 4.Equip field staff with cell phones & alarms 5. Instruct employees not to enter unsafe locations (buddy system) 6.Develop policies & procedures for home health-care providers. Prevention of Workplace Violence

Chapter Family Friendly Workplace Rights 90% working adults feel they don’t spend enough home with family  Child care  Flextime, compressed work week  EAPs  Dependant care flexible spending accounts  Family care leave We are motivated by these things, our children will feel entitled to them!

Chapter Family & Medical Leave Act 1993 Problems?  Employee rights 12 wks unpaid leave in 12 mo for… Given old job or equivalent when return Provide health benefits during leave Protection against retaliation  Employer rights < 50 employees exempt Can demand 2 nd opinion Employee & same get total of 12 wks. Family-Friendly Workplace Federal Law