Employee’s Obligation to the Firm

Aica VichoKimberly Fama

Main Moral Duty

• Work towards the goals of the firm

• Avoid any activities that might harm these goals

Main Moral Duty• Deviate from these goals to serve one own’s interests

• In ways that, if illegal are counted as a form of “white collar crime”

• White collar crime = non-violent crime, generally for personal gain and often involving money (wikitionary)

Example

Argh@! So many China companies

to go through today

They will scream at me again

because I will always ask for

details that they are reluctant to

give!

ExampleHmm, I think I will just

slack for the week since our clients do

not understand Chinese anyway. I will

just submit an inaccurate report!

I will just FB the whole day and no

one will know what I did to manipulate

the report! Woohoo!

Law of Agency

• Law that specifies the legal duties of “agents” towards their “principals”.

• Employee must pursue the goals of the firm and must do nothing that conflicts with those goals while working for the firm.

Ways an Employee may Fail

• Act on a “conflict of interest”• Steal from the firm• Illicit benefits out of others through

extortion/bribery

Conflicts of Interest

• Engaged in carrying out a certain task on behalf of the company

• Employee has an interest in the outcome of that task

• Employee is obligated to exercise independent judgment on behalf of the company in performing that task

Conflicts of Interest

Objective Conflicts Subjective Conflicts

Based on financial

relationships

Based on emotional or relationships

Conflicts of Interest

Potential Conflict of Interest Actual Conflict of Interest

Employee has an interest that could influence the judgement of an employer.

Has not been given the task to perform

Employee has an interest that could influence the judgement of an employer.

Has actually been given the task to perform