© prentice hall, 2001 chapter five rights and obligations of employers and employees ethical theory...

© Prentice Hall, 2001

Chapter Five

Rights and Obligations of Employers and Employees

Ethical Theory and Business, 6th EditionTom L. Beauchamp & Norman E. Bowie

© Prentice Hall, 2001 2

Objectives

٠After studying this chapter the student should be able to:

– Examine the advantages and disadvantages of the employment-at-will doctrine for both the employer and employee.

– Explain the concept of due process.– Discern the difference between public sector and

private sector employees.– Describe the concept of right to privacy.


Objectives

– Discuss the arguments supporting or opposing employee drug testing.

– Define the term discriminatory genetic screening.– Discuss the arguments supporting or opposing

genetic screening.– Describe the ethical dilemmas genetic screening

creates for insurance companies.– Argue the advantages and disadvantages of

electronic performance monitoring (EPM) for both the employer and employee.


Objectives

– Stress the importance of personal feedback in addition to the built-in feedback of the EPM system.

– Describe the argument supporting or opposing whistle-blowing.

– Contrast both sides of obligation of loyalty as it relates to whistle-blowing.


Overview

٠Employment-at-Will٠Workplace Drug Testing٠Genetics٠Electronic Performance Monitoring٠Whistle-blowing


Employment-at-Will

٠ “Employment at Will and Due Process”– Patricia H. Werhane & Tara J. Radin

٠The authors of this article argue in defense of due process and against EAW.

٠Employment-at-Will - The principle that an employer may hire, fire, demote, or promote an employee whenever the employer desires, in the absence of a specific contract or law.


Employment-at-Will

٠Due process٠Public policy exception٠Reasons used to justify employment-at-will

– The proprietary rights of employers guarantee that they may employ or dismiss whomever and whenever they wish.

– EAW defends employee and employer rights equally.


Employment-at-Will

– In choosing to take a job, an employee knows he or she is an at-will employee.

– Legislation and/or regulation of employment relationships further undermine an already overregulated economy.

٠Public/private distinction– Employees in the private sector of the economy

tend to be regarded as at-will employees.– Employees in the public sector have guaranteed

rights, including due process, and are protected from demotion, transfer, or firing without cause.


Richard A. Epstein

٠ “In Defense of the Contract at Will”٠Professor of Law, University of Chicago٠The author of this article discusses how

employment-at-will works to the mutual benefit of both parties.

٠Fairness of contract at will– Freedom of contract principle


Richard A. Epstein

٠The utility of contract at will– Monitoring behavior– Reputational losses– Risk diversification and imperfect information– Administrative costs

٠Distributional concerns


Workplace Drug Testing

٠ “Drug Testing in Employment”– Joseph DesJardins & Ronald Duska

٠The authors of this article argue against drug testing in that it violates the employee’s or applicant’s right to privacy.

٠Right to privacy involves a three-place relation between a person, some information, and another person.



٠Job relevance arguments– Affects on job performance– Harm to employee, other employees, the employer,

and consumers

٠Determining which jobs have a potential to cause harm

– Potential for harm should be clear and present.– Test employees only when they show a potential to

cause harm.



٠Limitations on drug testing policies٠Effectiveness of drug testing considerations

– Does the testing help prevent harm?– Does the testing provide relevant knowledge?– Are there more effective methods for preventing

harm?

٠Six testing possibilities٠Testing prospective employees


Michael Cranford

٠ “Drug Testing and the Right to Privacy: Arguing the Ethics of Workplace Drug Testing”

٠Completing a Ph.D. in Religion and Social Ethics, University of Southern California

– Dissertation focus is on ethics and technology

٠The author of this article argues in favor of workplace drug testing.


Michael Cranford

٠Privacy and performance of contract– Privacy – An individual’s right to be let alone

• A right to control information about themselves

٠Criteria for obtaining relevant information– Drug testing is not harmful or intrusive.– Drug testing is both efficient and specific.– Drug testing can be conducted in a way that

guarantees a high degree of precision.


Michael Cranford

٠Questions of justification٠Drug testing policy recommendations

– Testing should focus on a specifically targeted group of employees.

– When testing is indicated, it should not be announced ahead of time.

– Employees who test positive for drug abuse should be permitted the opportunity to resolve their abusive tendencies and return to work without penalty or stigma.


Joseph Kupfer

٠ “The Ethics of Genetic Screening in the Workplace”

٠Professor of Philosophy, Iowa State University٠What is genetic screening?٠Discriminatory genetic screening – A process

used to exclude workers from jobs based on their genetic make-up.


Joseph Kupfer

٠Technical limitations– Has the gene been located or just simply correlated

with other DNA material?– Is knowledge of other family members necessary to

determine the presence of the affecting gene?

٠Causal limitations– Does the affecting gene require other genes to

produce the disorder?– Does the gene cause the disorder with inevitability

or just create a vulnerability to the disorder?


Joseph Kupfer

٠Privacy considerations– Control of information– Autonomy

٠Justice considerations– Genetic screening indicates merely a predisposition

for a disorder• Not the inevitability of the onset of the disorder

– Unjust to penalize someone when it is not known they will contract the disorder


Joseph Kupfer

– Could be used to unjustly “weed out” people for employment, education, etc.

– Could be used to deny certain types of benefits.


Genetics

٠ “The Genetics Revolution, Economics, Ethics, and Insurance”

– Patrick L. Brockett & E. Susan Tankersley

٠Human Genome Project – A 26-year, six-billion-dollar international science project designed to completely map the entire genetic structure of the human species.


Genetics

٠Ethical dilemmas for insurance companies ٠Unfair discrimination and insurance

classification– Purpose of classification– Distinguishing between high- and low-risk

individuals– Ethics of insuring by classification


Genetics

٠Employer health care insurance– Community rating – The employer is charged an

amount per employee based on the average costs in the employer’s region.

– Experience rating – The insurer charges different rates to different employers based upon the experience of the employees over a rolling average.

– Self-insurance – The employer takes on the risks instead of the insurer.


Genetics

٠Recommendations to address genetic screening problems in the insurance industry

– Let the insurance industry continue as usual with the current laws and encourage these companies to use all available information to decide whether or not to accept an individual as a possible risk.

– Include passage of legislation which allows for some type of controlled discrimination, but which prohibits insurance companies from discrimination against individuals with specified genetic markers.


Genetics

– National health care in which the government would insure everyone, and simply allow no discrimination to occur.

٠Genetic information for preventive health care


Electronic Performance Monitoring

٠ “Ethical Issues in Electronic Performance Monitoring (EPM)”

– G. Stoney Alder– Management Professor, Western Illinois University

٠The author of this article argues that the difference between ethical or unethical electronic monitoring is found in the way the organization designs and implements the system.



٠Arguments for EPM– Used to protect consumer and worker safety– Safeguard company assets– Increased productivity– Improved quality and service– Gives the ability to evaluate effectiveness– Decreased costs– Can be a good tool for employee coaching and

training



٠Arguments against EPM– Invasion of privacy– Increased job stress and health problems– Dehumanizing– Decreases the employee’s quality of work-life

٠Two way communication during the design and implementation phases is important.



٠Rules for ethical monitoring– Involve those who will be subjected to monitoring in

the system design.– Inform employees of monitoring practices.– Supplement electronic feedback with human

interaction.– Make feedback supportive, non-punitive, and non-

coercive.


Ronald Duska

٠ “Whistleblowing and Employee Loyalty”٠Professor of Ethics, The American College ٠The author of this article argues that the

employee does not have an obligation of loyalty to a company and that whistle-blowing is permissible, especially when a company is harming society.


Ronald Duska

٠When, if ever, is whistle-blowing permissible?٠Purpose of whistle-blowing٠Employee loyalty to the company v. company

loyalty to the employee– 3 philosophical positions about loyalty

• Idealists• Social atomists• Moderate position


Daryl Koehn

٠ “Whistleblowing and Trust: Some Lessons from the ADM Scandal”

٠Cullen Chair of Business Ethics, University of St. Thomas in Houston

٠The author of this article focuses on whether whistle-blowing fosters or destroys personal, corporate, and public trust.


Daryl Koehn

٠Whistle-blowing – Persons who sound an alarm from within the very organization in which they work, aiming to spotlight neglect or abuses that threaten the public interest

٠Effects of whistle-blowing on trust٠Reasons why an employee would consider

whistle-blowing


Daryl Koehn

٠Whistle-blowing should be an option of last recourse

– Companies and employees need to work together (two-way communication) building trust to avoid situations where employees feel whistle-blowing is the only option to address their concerns.

© prentice hall, 2001 chapter five rights and obligations of employers and employees ethical theory...

Documents

prentice hall

bowie slide

overview employment

employee drug testing

employer rights

private sector employees

public sector

utility of contract