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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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