1. 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

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

3. 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

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

5. 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

6. 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

7. 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. 7 © 2012 South-Western, a part of Cengage Learning

8. 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) 8 © 2012 South-Western, a part of Cengage Learning

9. 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 9 © 2012 South-Western, a part of Cengage Learning

10. 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 10 © 2012 South-Western, a part of Cengage Learning

11. Arguments Against Drug Testing Violates due process rights Invades privacy rights False positives from common foods and medicines Ignores employee’s actual performance 11 © 2012 South-Western, a part of Cengage Learning

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

13. 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. 13 © 2012 South-Western, a part of Cengage Learning

14. 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 emails and web access GPS 14 © 2012 South-Western, a part of Cengage Learning

15. 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. 15 © 2012 South-Western, a part of Cengage Learning

16. 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. 16 © 2012 South-Western, a part of Cengage Learning

17. 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 17 © 2012 South-Western, a part of Cengage Learning

18. 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. 18 © 2012 South-Western, a part of Cengage Learning

19. 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. 19 © 2012 South-Western, a part of Cengage Learning

20. 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 20 © 2012 South-Western, a part of Cengage Learning

21. 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 21 © 2012 South-Western, a part of Cengage Learning

22. 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. 22 © 2012 South-Western, a part of Cengage Learning

23. 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 23

24. 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 24