Copyright © 2003 by South- Western, a division of Thomson Learning1 Chapter Six Employee Stakeholders And The Corporation

Copyright © 2003 by South-Western, a division of Thomson Learning2 Chapter Topics 1.Employee stakeholders: The workforce in the 21 st century 2.The changing social contract between corporations and employees 3.Employee and employer rights and responsibilities 4.Discrimination, equal employment opportunity, and affirmative action 5.Sexual harassment in the workplace 6.Whistle-blowing versus organizational loyalty

Copyright © 2003 by South-Western, a division of Thomson Learning3 Employee Stakeholders: The Workforce In The 21 st Century Within the context of the “digital economy” the following changes with employees and stakeholders occur: A shift to knowledge work The concept of a job for life is dying Compensation, income, and the social distribution of benefits are shifting Quality of work life is not inherent in the uses of technology Five predicted trends in the work-life of employees include: Demographics will drive a growing focus on family, personal, and spiritual matters Employees will demand schedules that work for them Internet-age values will take deeper root A back-to-basics trend It will get harder to tell work and home lifestyles apart

Copyright © 2003 by South-Western, a division of Thomson Learning4 Employee Stakeholders: The Workforce In The 21 st Century Several demographic trends that were predicted have been and are being realized: The workforce is aging Managerial leadership positions are more difficult to fill Women entrants are increasing Workforce cultures are mixing The education gap continues The level of education lags The number of employees with disabilities is expanding Gay couples are denied health care insurance in most companies

Copyright © 2003 by South-Western, a division of Thomson Learning5 Employee Stakeholders: The Workforce In The 21 st Century The trends in the workforce necessitate accommodation from managers and employees. Moral and legal conflict will likely increase if action is not taken with regard to: Age discrimination Sexual harassment Health care provisions Educational challenges Paradigm shift toward a new work life model

Copyright © 2003 by South-Western, a division of Thomson Learning6 Employee Stakeholders: The Workforce In The 21 st Century The following values were identified as motivators for professionals: Competitive pay Benefits and opportunities A fair deal Being valued Decent relationships “Workforce 2000” related values considered most important include: Recognition Respect and dignity Personal choice Involvement at work Pride in work Quality of lifestyle Financial security Self-development Health and wellness

Copyright © 2003 by South-Western, a division of Thomson Learning7 Employee Stakeholders: The Workforce In The 21 st Century Generational analysis looks at differences among world views, attitudes, and values of generations of Americans: GI generation Silent generation Baby boomers Generation X Generation Y

Copyright © 2003 by South-Western, a division of Thomson Learning8 The Changing Social Contract Between Corporations and Employees The social contract that has historically defined the employee/employer relationship is known as the employment-at-will (EAW) doctrine. The EAW remains the cornerstone of U.S. labor law. At issue is the continuing debate over the nature of property and property rights.

Copyright © 2003 by South-Western, a division of Thomson Learning9 Employee And Employer Rights And Responsibilities The ideal relationship between employer and employees is one based on mutual respect and trust. A right can be understood as a “moral claim.” The moral foundation for employee rights is based on the fact that employees are persons. The evolving social contract between employers and employees still recognizes employers’ power over physical and material property, but the contractual relationship aims in principle at balance, mutual respect, integrity, and fairness.

Copyright © 2003 by South-Western, a division of Thomson Learning10 Employee And Employer Rights And Responsibilities Employers are obliged to: Pay employees fair wages for work performed To provide safe working conditions Employees are responsible for: Fulfilling their contractual obligations to the corporation For following the goals, procedural rules, and work plans For performing productively Timeliness Avoiding absenteeism Acting legally and morally Respecting the intellectual and property rights of the employer

Copyright © 2003 by South-Western, a division of Thomson Learning11 Employee And Employer Rights And Responsibilities Major types of employee rights in the workplace include: Right not to be terminated without just cause Right to due process Right to privacy Right to workplace health and safety Right to organize and strike Rights regarding plant closings

Copyright © 2003 by South-Western, a division of Thomson Learning12 Employee And Employer Rights And Responsibilities Employees’ right to privacy remains one of the most debated and controversial rights. Areas centered around issues of privacy include: Technology use Polygraph and psychological testing Workplace surveillance Internet use Drug testing Genetic discrimination

Copyright © 2003 by South-Western, a division of Thomson Learning13 Discrimination, Equal Employment Opportunity, And Affirmative Action Recently, discrimination has surfaced in a number of categories including: Racial profiling Income disparities Ratio of female compensation compared to male Examples of discriminatory practices have been found in: Recruitment Screening Promotion Termination Conditions of employment Discharge

Copyright © 2003 by South-Western, a division of Thomson Learning14 Discrimination, Equal Employment Opportunity, And Affirmative Action Title VII of the Civil Rights Act of 1964 makes discrimination on the basis of gender, race, color, religion, or national origin in any term, condition, or privilege of employment illegal. The Civil Rights Act of 1992 extended punitive damages to victims of employment discrimination. The Age Discrimination in Employment Act prohibits employers from discriminating against individuals based on their age. The Equal Pay Act of 1963 prohibits discriminatory payment of wages and overtime based on gender.

Copyright © 2003 by South-Western, a division of Thomson Learning15 Discrimination, Equal Employment Opportunity, And Affirmative Action Affirmative action programs are a proactive attempt to recruit applicants from minority groups to create opportunities for those who would be excluded from the job market. Affirmative action as a doctrine is derived from several ethical principles that serve as bases for laws: Principle of justice Utilitarian principle Rights principle

Copyright © 2003 by South-Western, a division of Thomson Learning16 Discrimination, Equal Employment Opportunity, And Affirmative Action Reverse discrimination is alleged to occur when an equally qualified woman or minority member is given hiring preference over white males. Notable court cases that illustrate how affirmative action and discrimination issues have been addressed include: The Bakke case The Weber case The Stotts case The Adarand Constructors v. Pena case The Hopwood v. Texas case The Grutter v. University of Michigan Law School case

Copyright © 2003 by South-Western, a division of Thomson Learning17 Sexual Harassment In The Workplace Sexual harassment remains among the most prominent civil right issues in the workplace. Forms of sexual harassment include: Unwelcome sexual advances Coercion Favoritism Indirect harassment Physical conduct Visual harassment

Copyright © 2003 by South-Western, a division of Thomson Learning18 Whistle-Blowing Versus Organizational Loyalty DeGeorge has identified five conditions when whistle-blowing is morally justified. Five instances when whistle-blowing is not justified have been suggested. There have been twelve guidelines that offer factors which should be considered before deciding to “blow the whistle” on an employer. Four managerial steps to prevent external whistle-blowing have been suggested.