Employees and the CorporationEmployees and the Corporation

The Employment Relationship Workplace Rights Privacy in the Workplace Whistle-Blowing and Free Speech in the Workplace Working Conditions Around the World Employees as Corporate Stakeholders

ChapterChapter

18

Figure 18.1

Rights and duties of employees and employers

Right to organize and bargain

Safe and healthy workplace

Privacy

Discipline fairly and justly applied

To blow the whistle

Equal employment opportunity

To be treated with respect for fundamental human rights

No drug or alcohol abuse

No actions that would endanger others

To treat others with respect and without harassment of any kind

Honesty; appropriate disclosure

Loyalty and commitment

Respect for employer’s property and intellectual capital

Employee rights/Employer duties Employee duties/Employer rights

The right to a secure jobThe right to a secure job

Restrictions on employers: An employer may not fire a worker because of race, gender,

religion, national origin, age, or disability. An employer may not fire a worker if this would constitute a

violation of public policy, as determined by the courts. An employer may not fire a worker if, in doing so, it would

violate the Worker Adjustment Retraining Notification Act. An employer may not fire a worker if this would violate an

implied contract, such as a verbal promise, or basic rules of “fair dealing.”

Privacy in the workplace: IssuesPrivacy in the workplace: Issues

Electronic monitoring

Companies can gather, store, and monitor information about employees’ activities. This may be at odds with an employee’s right to privacy.

Romance in the workplace

If office romance goes sour, one of the people may sue, charging sexual harassment. When one person in a relationship is in a position of authority, s/he may be biased in an evaluation of the other’s work.

Employee drug use and testing

Two-thirds of companies test employees or job applicants for drugs.

Privacy in the workplace: Issues (continued)Privacy in the workplace: Issues (continued)

Alcohol abuse at work

U.S. businesses lose an estimated $67 billion per year in reduced productivity directly related to alcohol abuse.

Employee theft and honesty testing

The U.S. Department of Commerce estimates that employee theft of cash, merchandise, and property costs businesses $40 billion to $50 billion a year.

Drug testingDrug testing

Drug testing is used on three occasions:

1. Pre-employment screening—Some companies test all job applicants or selected applicants before hiring.

2. Random testing of employees—In many companies, workers in particular job categories or levels are eligible for screening at any time.

3. Testing for cause—This test occurs when an employee is believed to be impaired by drugs and unfit for work.

Pros and cons of employee drug testingPros and cons of employee drug testing

Arguments Favoring Employee Drug Testing

Cooperates with U.S. “War on Drugs” campaign

Improves employee productivity Promotes safety in the workplace Decreases employee theft and

absenteeism Reduces health and insurance costs

Arguments Opposing Employee Drug Testing

Invades an employee’s privacy Violates an employee’s right to due

process May be unrelated to job performance May be used as a method of employee

discrimination Lowers employee morale Conflicts with company values of

honesty and trust May yield unreliable test results Ignores effects of prescription drugs,

alcohol, and over-the-counter drugs Drug use an insignificant problem for

some companies

Figure 18.2

Whistle-blowingWhistle-blowing

Whistle-blowing

When an employee believes his or her employer has done something wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials.

Conditions for whistle-blowing

The unreported act would do serious and considerable harm to the public.

Once such an act has been identified, the employee has reported the act to his or her immediate supervisor and has made their moral concern known.

If the immediate supervisor does nothing, the employee has tried other internal pathways for reporting the problem.

Fair labor standardsFair labor standards

Approaches to establish fair labor standards for multinational corporations:

Voluntary corporate codes of conduct Non-governmental organizations labor codes Industry-wide labor codes