16-11 Employee Stakeholders and Workplace Issues Search the Web The Department of Labor maintains an online Corporate Citizenship Resource Center at:

16-22 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

16-3 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

16-4 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

16-5 The New Social Contract Business Organization’s Expectations Employee’s Expectations Understandings

16-6 Social Contract Reasons for the Change in the Social Contract Global Competition Technology advances Deregulation

16-7 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

16-8 Social Contract: New View

16-9 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.

16-10 Employee Rights Movement Sources of Employee Rights Statutory rights Collective bargaining rights Enterprise rights

16-11 Employee Rights Movement Models of Management Morality and their Orientation Toward Employees MoralAmoral Immoral End Law Means

16-12 Right Not to be Fired Without Just Cause Employment-at-Will Doctrine Public policy exceptions Contractual actions Breach of good faith actions

16-13 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

16-14 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

16-15 The Right to Due Process Procedure Visible Effective Institutionalized Equitable Easy to use Apply to all employees Employee Constitutionalism

16-16 Alternative Dispute Resolution Common Approach Open door policy Three concerns –Process is closed –One person review –Bias in favor of managers

16-17 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

16-18 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)

16-19 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

16-20 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

16-21 Whistle-Blowing Examples of Government Protection Civil Service Reform Act Whistle-Blowers Protection Act of Michigan False Claims Act

16-22 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.

16-23 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.

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

16-25 Selected Key Terms Implied contracts Ombudsperson Open-door policy Peer review panel Private property Public policy exception Social contract Statutory rights Whistle-blower