1. Employee Stakeholders and The Corporation
Chapter SEVEN
Employee Stakeholders
and The Corporation

2. Trends in Employment Relationships
Shift to knowledge work
No ‘lifetime’ employment
Income shift (down for low-middle professionals; up for highly skilled)
Desired balance between work and personal life

3. Changing Workforce and Accompanying Issues
Aging workforce – age discrimination
Increased number of women – sexual harassment
GLBT issues – health care provisions
Increasing cultural mix – conflicting values and beliefs
Educational gaps, lack of skilled trade workers – educational and skill challenges
Disability issues – discrimination
Balancing work and life

4. Generational Issues GI Generation – born between 1901-1925
Great Depression, World War II
Silent Generation – born between
Patriotism and Self-sacrifice
Baby Boomers – born between
Vietnam, Civil Rights, Instant Gratification
Generation X – born between
Civil Rights, Diversity, value work/life balance
Generation Y/Millenials – born between
No significant wars, sense of entitlement, security

5. Solving Generational Issues
Identify problem areas
Get to know the individuals inside their roles and positions
Understand and anticipate expectations of different generations
Develop a personal growth and development plan for each employee
Engage and communicate
Be a leader, not a friend

6. Barriers and Success Strategies for Women
Lack of significant general management or line experience (47%)
Exclusion from informal networks (41%)
Stereotyping and preconceptions of women’s roles and abilities (33%)
Failure of senior leadership to assume accountability for women’s advancement (29%)
Commitment to personal/family responsibilities (26%)
Success Strategies:
Exceeding performance expectations (69%)
Successfully managing others (49%)
Developing a style with which male managers are comfortable (47%)
Having recognized expertise in a specific content area (46%)
Taking on difficult or highly visible assignments (40%)

7. Figure 7.2: Evolution of Work and Family Life Systems

8. Employment at Will Doctrine
The right of an employer to fire an employee without giving a reason and the right of an employee to quit when he or she chooses (47 states have EAW in some form)
Lack of Good Faith and Fair Dealing
Public Policy Exceptions
Implied Contracts
Other limits placed on EAW through:
Minimum wage laws
Discrimination laws
Sexual harassment laws
Workplace health and safety laws
Assembly laws

9. Employee Rights Rights based on a ‘moral claim’
Right to Freedom, including negative freedom
Right to Well-being, including health and safety
Rights based on a ‘legal claim’
The right not to be terminated without just cause.
The right to due process.
The right to privacy.
The right to know.
The right to workplace health and safety.
The right to organize and strike.
Rights regarding plant closings.

10. Just Cause Standards notification reasonable rule
investigation prior to discipline
fair investigation
proof of guilt
absence of discrimination
reasonable penalty

11. Due Process Requirements
Right to a public hearing
Right to have peer evaluations
Right to obtain external arbitration
Right to an open, mutually approved grievance procedure

12. Legally-Upheld Privacy Violations
Intrusion (locker room and bathroom surveillance)
Publication of private matters
Disclosure of medical records
Appropriation of an employee’s name for commercial uses
Eavesdropping on employee conversations and retrieving or accessing employee (if unauthorized)
Permissible inquiries (if job related):
Criminal history inquiries
Credit history inquiries
Access to medical records

13. Other Employee Issues Polygraph and psychological testing
Workplace surveillance
Internet usage
Dating in the workplace
Drug testing and privacy rights
Genetic discrimination
Smoking in the workplace
FMLA

14. Guidelines for Employee Monitoring Policies
Inform employees not to assume privacy in the workplace.
Require employees to acknowledge the company’s privacy policy in writing.
Use private information only for legitimate purposes.
Limit access to private information about employees to only those with a need to know.
Secure employee medical records separately from other personnel files.
Obtain signed permission releases and waivers before using an employee’s name or photograph in any commercial advertisement, promotional material or training film.

15. Drug Testing Guidelines
Tests should be administered only for jobs that have a clear and present potential to cause harm to others.
Procedural testing limitations should include previous notice to those being tested.
Employees tested should be notified of the results.
Employees tested should be informed that they are entitled to appeal the results.
The employer should demonstrate how the information will be kept confidential (or destroyed).

16. Four Steps for Managers to Use When Preparing Corporate Privacy Policies
Prepare a privacy impact statement.
Construct a comprehensive privacy plan.
Train employees who handle personal information.
Make privacy part of social responsibility programs.

17. Responsibilities Employer: Employee: Fair, competitive wages
Safe working environment
Working conditions that empower employees (Quality of Work Life)
Employee:
Fulfill contracted obligations
Follow goals, rules, policies, work plans
Offer competence in job assignments
Perform productively (timeliness, dependable, responsible, respectful)

18. Title VII of the Civil Rights Act of 1964
Outlaws discrimination on the basis of gender, race, color, religion, or national origin in any term, condition, or privilege of employment illegal
Applies to companies with 15 or more employees
The law prohibits discrimination in hiring, classifying, referring, assigning, promoting, training, retraining, conducting apprenticeships, firing, and dispensing wages and fringe benefits.
Created the Equal Employment Opportunity Commission (EEOC) to administer the law.

19. Civil Rights Act of 1991 Punitive and Compensatory Damages
$300,000 cap / 500 employees
Smaller firms face smaller fines
Burden of Proof
On employer (defendant) to prove no discrimination (disparate treatment or adverse impact) occurred
Job relatedness
Business necessity

20. Other Employment Laws Age Discrimination in Employment Act – 1967
Over age of 40
Protects against discrimination in hiring, firing, promotions, pay, job conditions, etc.
Equal Pay Act – 1963
Prohibits pay and benefit discrimination based on gender
Family Medical Leave Act – 1993
Up to 12 weeks unpaid leave per year
Have to work 1 year for employer before eligible
Coverage for illness or birth/adoption
Self, child, spouse, parent (not in-laws), legal dependent
50 employees within a 75 mile radius

21. Affirmative Action
Affirmative action does not require hiring unqualified minority group members over qualified white males. All individuals must be qualified for the positions in question.
Qualified women and minority members can be given preference morally, on the basis of gender or race, over equally qualified white males to achieve affirmative action goals.
Qualified women and minority members can be given preference morally over better-qualified white males, also, to achieve affirmative action goals.
Companies must make adequate progress toward achieving affirmative action goals even though preferential hiring is not mandatory.

22. Ethics of Affirmative Action
Principle of Justice
Utilitarian Principle
Rights Principle

23. Rulings Concerning Affirmative Action
Bakke v. University of California
Weber v. Kaiser Aluminum
Stotts v. City of Memphis
Adarand Constructors v. Pena
Hopwood v. State of Texas
U of M cases

24. Sexual Harassment
Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when:
submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment,
submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such an individual
such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.

25. Management Guidelines to Prevent or Correctly Handle Harassment
Develop an anti-harassment policy and a complaint procedure
Communicate the policy and complaint procedure to every employee
Quickly and effectively address all harassment complaints
Provide adequate education and training for all employees and managers

26. Five Conditions Under Which Whistleblowing is Justified
When the firm, through a product or policy, will commit serious and considerable harm to the public (as consumers or bystanders), the employee should report the firm.
When the employee identifies a serious threat of harm, he or she should report it and state his or her moral concern.
When the employee’s immediate supervisor does not act, the employee should exhaust the internal procedures and chain of command to the board of directors.
The employee must have documented evidence that is convincing to a reasonable, impartial observer that his or her view of the situation is accurate and evidence that the firm’s practice, product, or policy seriously threatens and puts in danger the public or product user.
The employee must have valid reasons to believe that revealing the wrongdoing to the public will result in the changes necessary to remedy the situation. The chance of succeeding must be equal to the risk and danger the employee takes to blow the whistle.

27. When Whistleblowers Should Not Be Protected
When divulging information about legal and ethical plans, practices, operations, inventions, and other matters that should remain confidential and that are necessary for the organization to perform its work efficiently
When an employee’s personal accusations or slurs are irrelevant to questions about policies and practices that appear illegal or irresponsible
When an employee’s accusations do not show a conviction that a wrongdoing is being committed and when such accusations disrupt or damage the organization’s morale
When employees complain against a manager’s competence to make daily work decisions that are irrelevant to the legality, morality, or responsibility of management actions
When employees object to their discharge, transfer, or demotion if management can show that unsatisfactory performance or violation of a code of conduct was the reason for the decision

28. Managerial Steps to Prevent the Need for Whistleblowing
Develop effective internal grievance procedures and processes that employees can use to report wrongdoings.
Reward people for using these channels.
Appoint senior executives and others whose primary responsibilities are to investigate and report wrongdoing.
Assess large fines for illegal actions. Include executives and professionals who file false or illegal reports, who knowingly market dangerous products, or who offer bribes or take kickbacks.