BUSINESS ETHICS &

Corporate Governance
BS425
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PREPARED BY:
MRS B . MUCHENJE
(bzmuchenje@gmail.com ,0772815871)
FACULTY OF BUSINESS
MANAGEMENT SCIENCES &
ECONOMICS, TLH DEPARTMENT
OFFICE G10

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 Work Ethics
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Ethics on Employment
Employment contract is usually made of 2 types of
contract terms i.e. “express” and “implied” terms that
can be in the oral or written form.
Employment is an “ at will” relation that comes into
existence when two parties willingly enter into an
agreement and the relation continues to exist as
long as both parties wish that it does so.

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 At-will Employment
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It is a doctrine of American law that defines an
employment in which either party can immediately
terminate the relationship at any time with or
without any advance warning and with no
subsequent liability provided there was no express
contract for a definite term governing the
relationship.
Under this legal relationship:

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 Continued
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I. Any hiring is presumed to be “at will” i.e. the

employer is free to discharge individuals for good
cause or no cause at all.
II. The employee is equally free to quit, strike or
otherwise cease work.

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What is the justification of this doctrine in relation to the
rights that employees have against unjust treatment of
employers?
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There are 3 arguments used to justify this doctrine:

i. The rights of property owners that assumes that
employers and employees have property of some kind that
is tangible and intangible respectively.
Thus denial of each party to exercise his rights amounts to
violation of rights.
ii. Freedom of contract argument
Employment is a contractual agreement between 2 parties in which
employer states the terms under which he is willing to hire a
person and that person signifies by his/her acceptance and
willingness to work under those terms.
iii. Consideration of Efficiency
This is said to be utilitarian approach that relies on the importance
of efficient operation of business that depends on the efficient use
of resources including labor.
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 Occupational Health and Safety
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Introduction
This subject is all about the rights of workers in matters of
health and safety at workplaces.
The matter is not about the obligation of employers with
respect to the rights of workers but also the justification for
government regulation of the workplace especially
Occupational Safety and Health Administration (OSHA).

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 Why is the subject important?
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OSHA is done for the following reasons:

 To investigate the cause of accidents and to
prevent them from happening.
 To fulfill any legal requirements.
 To determine the cost of an accident.
 To determine compliance with applicable safety
regulations.
 To process workers’ compensation claims.

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 What is Occupational Health?
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This is:
 the promotion and maintenance of the highest degree of
physical, mental and social well-being of workers in all
occupations;
 the prevention amongst workers of departures from health
caused by their working conditions;
 the protection of workers from risks resulting from factors
adverse to health;
 the placing and maintenance of the worker in an occupational
environment adapted to his physiological and psychological
capabilities;
 and the adaptation of work to man and of each man to his job.

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 What is OSHA’s focus?
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There are three objectives to this subject:
1) The maintenance and promotion of workers’
health and working capacity.
2) The improvement of working environment and
work to become conducive to safety and
health.
3) Development of work organizations and
working cultures in a direction which supports
health and safety at work.

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 At secondary level there are:
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 the Protection from Smoking (Public Health)
(Control of Tobacco) Regulations S.I.264 of 2002
that prohibits smoking in enclosed public places
including workplaces
 the Labour Relations (HIV and AIDS) regulations
S.I.202 of 1998 which prohibits discrimination on
the ground of HIV/AIDS status, including:
 Prohibition of mandatory testing for HIV as a
precondition of employment.
 The duty to respect the confidentiality of HIV
status of employees.

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 Sectoral occupational health and safety laws
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These are laws specific to a particular sector whose

objective is to supplement the general laws.
These laws cover the construction, chemical, mining
and agricultural sectors and other equally dangerous
industries.

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 Occupational Health
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Health has been defined as “a state of complete
physical, mental and social well-being and not
merely the absence of disease or
infirmity”(WHO).
A wide array of workplace hazards also present
risks to the health and safety of people at work
such as chemicals, biological agents, physical
factors, adverse ergonomic conditions, allergens
and a broad range of psychosocial risk factors.

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 What Is “Voluntary Assumption of Risk" in a
Personal Injury Claim?
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 Assumption of Risk is a type of defense available

for most personal injury and negligence lawsuits.
 It arises when a plaintiff knowingly and voluntarily
assumes a risk of harm connected with the
negligence of the defendant.
 If the plaintiff has assumed such a risk, they cannot
recover damages for any harm resulting from the
defendant’s conduct, even if the defendant was
negligent or reckless.

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 Facts of Assumption of risk
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In order to prove the defense of assumption of risk, the
defendant must show that:
1. The plaintiff had actual knowledge of the risk
involved in the conduct or activity
2. The plaintiff voluntarily accepted the risk, either
expressly through agreement or implied by their
words and conduct (i.e., they cannot be forced to
perform the activity).
3. Also, it is usually necessary to prove that the
danger was obvious, or that the nature of the
conduct was inherently dangerous.

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 Cases where the law doesn’t apply
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A decision must be entirely voluntary, and not

constrained by circumstances.
Examples of when a choice may be constrained
include:
 Where the plaintiff was a rescuer.
 Where the plaintiff was under a disability (such as
a lack of mental capacity or being too old).
 Where the plaintiff was a minor.

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 Continued
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 Where the plaintiff was ill-informed.

 Where the plaintiff was ordered to do something
by his employer (and did not choose 'truly
freely').
 Where alternative choices were impracticable.
 Where the plaintiff had little time to consider the
risk.

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 Question to Contemplate on
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Considering the arguments for and against the

voluntary assumption of risk, is it ethically wise to
forewarn the prospective and current employees
about the dangers associated with the nature of their
jobs?????

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 Specific Examples of Occupational Health
and Safety
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1. Johns Manville Corporation a producer of

Insulation, construction products for commercial,
industrial and residential buildings.
Bankruptcy Status: Filed in 1982 and
reorganized in 1988.
2. The 1972 Hwange Colliary Kamandama
disaster

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 Thought Questions
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1. What are the obligations of the employer and

employee in an employment contract?
2. What options are available for an employee if
they are given a risky task.
3. Which ethical considerations must be observed
by employers in their employment contracts?
4. Which safety measures must be considered in
work environments?

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