1. Employee Stakeholders and Workplace Issues
Chapter 17
Employee Stakeholders and Workplace Issues
Employee Stakeholders and Workplace Issues
Chapter 17
Prepared by Deborah Baker Texas Christian University
Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning.  All rights reserved

2. Chapter 17 Learning Outcomes
Employee Stakeholders and Workplace Issues
Chapter 17 Learning Outcomes
Identify the major changes occurring in the workforce today.
Outline the characteristics of the new social contract between employers and employees.
Explain the employee rights movement and its underlying principles.
Discuss the employment-at-will doctrine.
Discuss the right to due process and fair treatment.
Describe the actions companies are taking to make the workplace friendlier.
Elaborate on the freedom-of-speech issue and whistle-blowing. 2

3. Chapter 17 Outline The New Social Contract
Employee Stakeholders and Workplace Issues
Chapter 17 Outline
The New Social Contract
The Employee Rights Movement
The Right Not to Be Fired Without Cause
The Right to Due Process and Fair Treatment
Freedom of Speech in the Workplace
Summary
Key Terms
Discussion Questions
Changes in the Workplace
Increased Technological Hazards
The Computer Invasion
Professional with Divided Loyalties
Increased Mobility of Employees
The New Social Contract
The Employee Rights Movement
The Meaning of Employee Rights
The Right to a Job/Not to Be Fired Without Cause
Employment-at-Will Doctrine
Management’s Response to Employees’ Job Claims
The Right to Due Process and Fair Treatment
Employee Constitutionalism
Alternative Dispute Resolution
Freedom of Speech in the Workplace
Whistle Blowing
Consequences of Whistle Blowing
Government’s Protection of Whistleblowers
The Whistle-Blowers Protection Act of Michigan
False Claims Act of 1986
Management Responsiveness to Potential Whistle-Blowing Situations
Summary

4. Introduction to Chapter 17
Employee Stakeholders and Workplace Issues
Introduction to Chapter 17
Consider how global competition has reshaped the social contract between organizations and their workers
Consider the trend toward more expansive employee rights
Right not to be fired without just cause
Right to due process and fair treatment
Right to freedom of speech in the workplace

5. The New Social Contract
Chapter 17
Employee Stakeholders and Workplace Issues
The New Social Contract
Reasons for Change in the Social Contract
Globalization
Shareholder Activism
Technology and
Automation
Deregulation

6. The Changing Social Contract
Chapter 17
Employee Stakeholders and Workplace Issues
The Changing Social Contract
Old Social Contract
New Social Contract
Job security
Few tenure arrangements
Life careers with one employer
Few life careers; changes common
Stable positions / job assignments
Temporary project assignments
Loyalty to employer
Loyalty to self
Paternalism
Relationships far less familial
Employee sense of entitlement
Personal responsibility for one’s job future
Stable, rising income
Pay for “value added”
Job-related skill training
Employees in charge of own education
Focus on individual accomplishments
Focus on team building and projects
Figure 17-1 6

7. The New Social Contract
Chapter 17
Employee Stakeholders and Workplace Issues
The New Social Contract
Outplacement
Assistance provided to laid-off employees

8. Employee Rights @ Employee rights provide workers with:
Chapter 17
Employee Stakeholders and Workplace Issues
Employee Rights
Employee rights provide workers with:
Desired outcomes or
Protection from unwanted outcomes @

9. Sources of Employee Rights
Chapter 17
Employee Stakeholders and Workplace Issues
Employee Rights
Sources of Employee Rights
Statutory rights
Collective bargaining rights
Enterprise rights

10. Models of Management Morality
Employees are a human resource that must be treated with dignity and respect.
Chapter 17
Employee Stakeholders and Workplace Issues
Models of Management Morality
Moral Management
Employees are treated as the law requires.
Amoral Management
Employees are viewed as factors of production to be used, exploited, and manipulated.
Immoral Management
Figure 17-2

11. Job-Related Rights The right not to be fired without just cause
Chapter 17
Employee Stakeholders and Workplace Issues
Job-Related Rights
The right not to be fired without just cause
The right to due process and fair treatment
The right to freedom, particularly freedom of expression and freedom of speech
The rights to privacy, safety, and health in the workplace

12. Right Not to be Fired Without Cause
Chapter 17
Employee Stakeholders and Workplace Issues
Right Not to be Fired Without Cause
Public Policy Exceptions
Contractual
Actions
Breach of Good Faith Actions
Employment-at-Will Doctrine
Protects employees from being fired for refusal to commit crimes
Protects employees who they believe have contracts or implied contracts
Employers are expected to hold to a standard of fairness and good faith dealings

13. Management’s Response to Job Claims
Chapter 17
Employee Stakeholders and Workplace Issues
Management’s Response to Job Claims
Objections to Employment-at-Will
Employees deserve respectful treatment.
Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility.
Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration.

14. Terminating an Employee
Chapter 17
Employee Stakeholders and Workplace Issues
Terminating an Employee
Fire employees in a private space.
Be mindful of employees’ logistics.
Preserve the employee’s dignity.
Choreograph the notification in advance.
Use transparent criteria for layoffs.

15. What Not to do When Terminating an Employee
Chapter 17
Employee Stakeholders and Workplace Issues
What Not to do When Terminating an Employee
Don’t fire on a Friday.
Don’t say that downsizing is finished.
Don’t terminate an employee via .
Stick to the topic and avoid platitudes.
Don’t rush through the meeting.

16. The Right to Due Process
Chapter 17
Employee Stakeholders and Workplace Issues
The Right to Due Process
Due Process
The right of employees to have decisions that adversely affect them to be reviewed by objective, impartial third parties.

17. The Requirements of a Due Process System
Chapter 17
Employee Stakeholders and Workplace Issues
The Requirements of a Due Process System
It must be a procedure and must follow rules.
It must be visible so that potential violators are aware of it.
It must be predictably effective.
It must be institutionalized.
It must be perceived as equitable.
It must be easy to use.
It must apply to all employees.

18. Alternate Dispute Resolution
Chapter 17
Employee Stakeholders and Workplace Issues
Alternate Dispute Resolution
Open-Door Policy
Hearing Procedure
The Ombudsman
The Peer Review Panel

19. Alternative Dispute Resolution
Chapter 17
Employee Stakeholders and Workplace Issues
Alternative Dispute Resolution
Concerns with the Open-Door Policy
Process is closed
One person is reviewing what happened
Tendency for a manager to support another manager’s decision

20. Alternative Dispute Resolution
Chapter 17
Employee Stakeholders and Workplace Issues
Alternative Dispute Resolution
Factors for a Successful Peer Review Panel
People in the process are respected members of the organization.
Elect, rather than appoint, committee members.
Provide training in dispute resolution, discrimination, fairness, legalities, and ethics for everyone involved.
Representatives of both employees and management should be involved in decision making.

21. Freedom of Speech in the Workplace
Chapter 17
Employee Stakeholders and Workplace Issues
Freedom of Speech in the Workplace
Whistle- Blower
An organization member who discloses illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action. @

22. Key Elements in the Whistle-Blowing Process
Chapter 17
Employee Stakeholders and Workplace Issues
Whistle-Blowing
Key Elements in the Whistle-Blowing Process
The whistle-blower
The complaint
The party to whom the complaint is made
The organization against which the complaint is made

23. Two Views of Employees Responsibility in Whistle-Blowing Situation
Chapter 17
Employee Stakeholders and Workplace Issues
Two Views of Employees Responsibility in Whistle-Blowing Situation
Corporate Employer
Loyalty Obedience Confidentiality
Employee
Traditional
(Has certain rights)
Public
Employee
Corporate Employer
Whistle blowing
Responsibility
Emerging
Figure 17-3

24. A Checklist to Follow Before Blowing the Whistle
Chapter 17
Employee Stakeholders and Workplace Issues
A Checklist to Follow Before Blowing the Whistle
Is there any alternative to blowing the whistle?
Does the proposed disclosure advance public interest rather than personal or political gain?
Have you thought about the outcomes of blowing the whistle for yourself and your family?
Have you identified the sources of support on which you can rely during the process?
Do you have enough evidence to support your claim?
Have you identified and copied all supporting records before drawing suspicion to your concerns?
Figure 17-4

25. Consequences of Whistle-Blowing
Chapter 17
Employee Stakeholders and Workplace Issues
Consequences of Whistle-Blowing
Firing
More stringent criticism of work
Less desirable work assignments
Pressure to drop charges against the company
Heavier workloads
Loss of perquisites
Exclusion from meetings previously attended

26. Examples of Government Protection
Chapter 17
Employee Stakeholders and Workplace Issues
Whistle-Blowing
Examples of Government Protection
1978 Civil Service Reform Act
Michigan Whistle-Blowers Protection Act of 1981
Sarbanes-Oxley Whistle-Blower Protections
False Claims Act

27. Sarbanes-Oxley Whistle-Blower Protections
Chapter 17
Employee Stakeholders and Workplace Issues
Whistle-Blowing
Sarbanes-Oxley Whistle-Blower Protections
Comprehensive coverage for all employees of publicly-traded companies
Comprehensive protection for discrimination or harassment
Any corporate conduct that could threaten shareholder value
Timely responses
The right to a jury trial
Lessened burden of proof on employee
Compensatory damages and judicial fees
Criminal felony penalties for retaliation
Audit committees required to have complaint response procedures

28. Management’s Responsiveness to Whistle-Blowing
Chapter 17
Employee Stakeholders and Workplace Issues
Management’s Responsiveness to Whistle-Blowing
Managers must be clear that they invite suggestions.
Managers must refute commonly held assumptions and organizational myths that discourage communication.
Managers should tailor rewards so that employees share more directly in cost savings or sales increase from ideas they offer.

29. Key Terms Alternative dispute resolution (ADR) Social contract
Chapter 17
Employee Stakeholders and Workplace Issues
Key Terms
Alternative dispute resolution (ADR)
Open-door policy
Hearing procedure
Ombudsman
Peer review panel
Mandatory arbitration
Whistle-blower
1978 Civil Service Reform Act
Michigan Whistle-Blowers Protection Act of 1981
False Claims Act
Social contract
Outplacement
Private property
Rights
Statutory rights
Collective bargaining
Enterprise rights
Employment-at-will doctrine
Public policy exception
Implied contract exception
Good faith principle
Due process