2. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-1 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues BA 385 - Business Environment Week 7 ~ Part 1 Fall 2003

3. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-2 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Agenda Midterm Review Chapter 16 Intro - Employee Stakeholders Current Event Presentations Search the Web The Department of Labor maintains an online employment and training resource at: www.doleta.gov www.doleta.gov

4. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-3 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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

5. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-4 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues The New Social Contract Business Organization’s Expectations Employee’s Expectations Understandings

6. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-5 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Social Contract Reasons for the Change in the Social Contract Global Competition Technology advances Deregulation

7. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-6 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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

8. Social Contract: New View

9. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-8 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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.

10. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-9 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Sources of Employee Rights Statutory rights Collective bargaining rights Enterprise rights

11. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-10 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Models of Management Morality And their Orientation Toward Employees MoralAmoral Immoral End Law Means

12. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-11 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Right Not to be Fired Employment-at-Will Doctrine Public policy exceptions Contractual actions Breach of good faith actions Without Just Cause

13. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-12 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Management’s Response 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

14. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-13 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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

15. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-14 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Employee Constitutionalism Procedure Visible Effective Institutionalized Equitable Easy to use Apply to all employees

16. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-15 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Alternative Dispute Resolution Common Approach Open door policy Three concerns –Process is closed –One person review –Bias in favor of managers

17. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-16 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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

18. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-17 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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)

19. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-18 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues 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

20. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-19 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Seven Stages 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

21. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-20 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Examples of Gov’t Protection Civil Service Reform Act Whistle-Blowers Protection Act of Michigan False Claims Act

22. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-21 BA 385 - Business Environment Chapter 16 Employee Stakeholders and Workplace Issues Management’s Preemptive Responses to Whistle-Blowing Assure employees that the organization will not interfere with their basic political freedoms. Streamline grievance procedure so that employees can direct complaints and not “blow the whistle.” Review the organization’s concept of social responsibility so that it more than giving to charity. Formally recognize respect for the individual consciences of employees. Realize that dealing harshly with whistle blowing can result in adverse public reaction.