Business & Society Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western, a part of Cengage Learning 1

Chapter 18 Employee Stakeholders: Privacy, Safety, and Health © 2012 South-Western, a part of Cengage Learning 2

Learning Outcomes © 2012 South-Western, a part of Cengage Learning 1.Articulate the concerns surrounding the employee’s right to privacy in the workplace. 2.Identify the advantages and disadvantages of polygraphs, integrity tests, and drug testing as management instruments for decision making. 3.Discuss the right to safety and the right to know, and summarize the role and responsibilities of OSHA. 4.Elaborate on the right to health and safety in the workplace, with particular reference to violence, smoke-free workplaces, and family-friendly workplaces. 3

Chapter Outline Right to Privacy in the Workplace Workplace Safety The Right to Health in the Workplace Summary Key Terms 4 © 2012 South-Western, a part of Cengage Learning

Right to Privacy, Safety, Health Right to privacy The status of workers’ rights is ill-defined. Right to safety Thousands injured on the job annually. Right to health Thousands suffer from work-related health problems.  In today’s uncertain work environment, employees are more hesitant to ask for their rights to be respected. © 2012 South-Western, a part of Cengage Learning 5

Right to Privacy Right to: Keep personal affairs to oneself Autonomy Determine when, how, and to what extent private information is communicated to others.  Privacy in the workplace is in flux as new technological options are introduced. © 2012 South-Western, a part of Cengage Learning 6

Right to Privacy (continued) Wired magazine’s best and worst firms for privacy at work 7 © 2012 South-Western, a part of Cengage Learning

Workplace Privacy Issues 1.Collection and use of employee information in personnel files. 2.Integrity testing. 3.Drug testing. 4.Monitoring employee’s work, behavior, conversations, and location by electronic means. 8 © 2012 South-Western, a part of Cengage Learning

Collection and Use of Employee Information  Privacy Act of 1974  USA Patriot Act  Background checks/screening  Fair Credit Reporting Act (FCRA) Two significant loopholes: Employers can opt to do the background checks themselves instead of using outside providers. FCRA does not cover the interview process.  Equal Employment Opportunity Commission (EEOC) 9 © 2012 South-Western, a part of Cengage Learning

Integrity Tests Polygraph Lie Detector Highly controversial in business Employee Polygraph Protection Act (EPPA) Banned most private-sector use of the lie detector Integrity tests Also controversial, but viewed as a substitute for polygraph tests 10 © 2012 South-Western, a part of Cengage Learning

Employee Polygraph Protection Act Exceptions Include: Security services Nuclear facilities Radioactive or toxic waste Public water supply facilities Public transportation Precious commodities Proprietary information Controlled substances Government employees 11 © 2012 South-Western, a part of Cengage Learning

Integrity Testing 12 © 2012 South-Western, a part of Cengage Learning

Arguments For Drug Testing High cost of drug abuse Increased rate of accidents and injuries Increased rate of theft Increased propensity to make poor decisions Ruined lives Ethical responsibility to employees and public to provide Safe workplaces Secure asset protection Safe places to transact business 13 © 2012 South-Western, a part of Cengage Learning

Arguments Against Drug Testing Violates due process rights Invades privacy rights False positives from common foods and medicines Ignores employee’s actual performance 14 © 2012 South-Western, a part of Cengage Learning

Guidelines for Drug Testing 1.Written company policy and procedure concerning substance abuse. 2.Requirements for drug testing program are documented. 3.Employees get advance notice and right to refuse screening. 4.Employee awareness if safety and security needs justify testing. 5.Tests done uniformly and impartially. 6.Specimen handling meets legal, technical, and ethical requirements. 7.Qualified review of positive results prior to employer notification. 8.Notification of employee or applicant prior to employer report. 9.Report to employer contains only the information needed for work placement purposes or as required for government regulations. 15 © 2012 South-Western, a part of Cengage Learning

Drug Testing: State and Federal Legislation State laws Restrict drug testing to reasonable cause and suspicion The U.S. Department of Labor maintains a website with state drug policies Federal laws Americans with Disabilities Act (ADA) Specific regulations for drug testing in organizations 16 © 2012 South-Western, a part of Cengage Learning

Employee Assistance Programs Employee Assistance Programs (EAPs) Extend into a variety of employee problem areas. A proactive way of dealing with employee problems 1.Employees are valuable members of the organization. 2.It is better to help troubled employees than to discipline or discharge them. 3.Recovered employees are better employees. 17 © 2012 South-Western, a part of Cengage Learning

Monitoring Employees on the Job  Employee monitoring occurs at the majority of mid- to large-sized firms. Technology changed the pervasiveness and nature of monitoring. Videotaping Recording phone calls and voice mail Reading computer files Monitoring s and web access GPS 18 © 2012 South-Western, a part of Cengage Learning

Effects of Employee Monitoring Invasion of privacy Treats employees unfairly Creates stress and tension Excessive pressure to be productive Produces low morale Creates a sense of job insecurity  The Electronic Communication Privacy Act of 1986 is the only privacy protection available for electronic monitoring. 19 © 2012 South-Western, a part of Cengage Learning

Policy Guidelines on the Issues of Privacy 1.Obtain informed consent before acquiring information. 2.Disclose the nature of any surveillance. 3.Set controls to avoid unauthorized spread of information. 4.Collect and use only job-relevant medical and health data. 5.Require reasonable suspicion before doing drug tests. 6.Respect and preserve the boundary between work and home. 20 © 2012 South-Western, a part of Cengage Learning

The Workplace Safety Problem Two events are forerunners of workplace safety initiatives 1.The death by cyanide poisoning of an employee of Film Recovery Systems. 2.The poisonous gas leak at the Union Carbide Plant in Bhopal, India. Right-to-know laws Employers have a duty to provide employees with information on the hazards of workplace chemicals and to make sure that workers understand what the information means in practical terms. 21 © 2012 South-Western, a part of Cengage Learning

Right-to-Know Laws OSHA’s hazard communication standards 1.Update inventories of hazardous chemicals in the workplace. 2.Assemble material safety data sheets. 3.Ensure that hazardous chemicals are properly labeled. 4.Train workers on the use of hazardous chemicals. 5.Prepare and maintain a written description of the hazard communication program. 6.Consider any problems with trade secrets from the disclosure requirements. 7.Review state requirements for hazard disclosure. 22 © 2012 South-Western, a part of Cengage Learning

The History of OSHA  Nitpicking rules Early on, promoted rules that were trivial in comparison to its larger mission of protecting health and safety.  Spotty record Employee injuries, illnesses, and deaths have not steadily decreased under OSHA rules.  Rejuvenated OSHA Post-Reagan, increased budget, more energy, new administrator.  The Future of OSHA Tougher government accountability for OSHA in the future. 23 © 2012 South-Western, a part of Cengage Learning

Workplace Violence A major problem posing challenges to management. Companies make few efforts to address workplace violence. Continued violence in the future because of: Greater tolerance for violence Easily available weapons Economic stress Difficult job market Insufficient support systems 24 © 2012 South-Western, a part of Cengage Learning

Who is Affected? Workers are most at risk who: exchange money with the public. deliver passengers, goods, or services. work alone or in small groups. work late at night or early morning. work in community settings with extensive public contact. work in high-crime areas. 25 © 2012 South-Western, a part of Cengage Learning

Prevention  OSHA’s “general duty clause” mandates that employers provide safe workplaces– is not specific to violent acts. Employers are held liable for an unsafe act when: 1.The employer neglected to keep the workplace free from a hazard. 2.The hazard was one that is generally recognized by the employer or the industry. 3.The hazard was already causing or likely to cause serious harm. 4.Elimination or removal of the hazard was feasible. 26 © 2012 South-Western, a part of Cengage Learning

OSHA’s Recommendations for Preventing Workplace Violence 1.Provide safety education. 2.Secure the workplace. 3.Provide drop safes. 4.Equip field staff with cell phones and alarms. 5.Instruct employees not to enter unsafe locations. 6.Develop policies and procedures covering visits for home health-care providers. 27 © 2012 South-Western, a part of Cengage Learning

Right to Health in the Workplace Smoking in the workplace Growing anti-smoking sentiment in the U.S. and globally Passive smoke kills thousands in the U.S. each year Benefits of smoke-free workplaces : Lower employee healthcare costs. Smoke-free workplaces help smokers to quite. 28 © 2012 South-Western, a part of Cengage Learning

Family-Friendly Workplace Work/Life balance A state of equilibrium where the demands of a person’s personal and professional life are equal. A desirable state for most workers, but difficult in recessionary economic times. Family-friendly benefits 1.Dependent care flexible spending accounts 2.Flextime 3.Family leave above time required Family and Medical leave Act 4.Domestic partner benefits 5.Adoption assistance 29 © 2012 South-Western, a part of Cengage Learning

Family and Medical Leave Act Family and Medical Leave Act (FMLA) Designed to make life easier for employees with family or health problems. FMLA employee rights 12 weeks of unpaid leave in 12-month period Reinstatement in old or equivalent jobs Health benefits during leave periods Protection from retaliation 30 © 2012 South-Western, a part of Cengage Learning

Family-Friendly Workplace (continued) FMLA employer rights Companies with fewer than 50 workers are exempt. Right to demand that employees obtain medical opinions or certifications; may require additional opinions. Do not have to pay employees, but must continue health benefits. If employee and spouse are at the same firm, the total leave for both may be limited to 12 weeks. 31 © 2012 South-Western, a part of Cengage Learning

Key Terms Background checks Broad brush EAP Chief privacy officer (CPO) Drug testing Electronic Communication Privacy Act of 1986 (ECPA) Employee Assistance Programs (EAPs) Employee monitoring Employee Polygraph Protection Act (EPPA) Fair Credit Reporting Act (FCRA) Family and Medical Leave Act (FMLA) Family-friendly © 2012 South-Western, a part of Cengage Learning 32

Key Terms (continued) Integrity tests Occupational Safety and Health Administration (OSHA) Polygraph Privacy Act of 1974 Privacy impact statement Privacy in the workplace Right-to-know laws Smoking in the workplace Type 1 error Type 2 error Work / life balance Workplace violence USA Patriot Act © 2012 South-Western, a part of Cengage Learning 33