is to provide them with the compensation they have freely and knowingly agreed to receive in exchange for their services. according to the rational view of the firm .FIRM s DUTY TO THE EMPLOYEES y The basic moral obligation that the employer has towards the employees. There are two main issues related to this obligation: y Fairness of wages y Fairness of employee working conditions . .

y How can a fair balance be struck between the employer s interests in minimising costs and the worker s interest in providing a decent living for themselves and their families? .WAGES: y From the employee s point of view. wages are a cost of production that must be kept down lest the product be priced out of the market. y From the employer s point of view. Therefore every employer faces the dilemma of setting fair wages. wages are the only means for satisfying the basic economic needs of the worker and the worker s family.

The term living wage is sometimes used to indicate what a wage earner would need to earn to support a family of four. y Wages in developing countries are too low relative to what the company can afford or relative to the revenues the company makes on the products assembled by workers in developing nations. developed nations where these companies are headquartered. y Wages in developing nations are too low relative to what a family needs to live.CRITICISMS: y Wages in developing countries are said to be too low relative to the wages of employees in the more advanced. .

Fair wages depend on: y y y y y y y Local wages Firm s ability to pay Burdens of the job Minimum wage laws Fair relations to other salaries in the firm Fair wage negotiations Local living costs. .Factors identified in determining the wages and salaries in countries.

textile fibre dust. arsenic.WORKING CONDITIONS: Health and safety y Workplace hazards include not only the more obvious categories of mechanical injury. skin irritants. noisy machinery. y In order to prevent these hazards in 1970 Congress passed the Occupational Safety and Health Act and created Occupational Safety and Health Administration (OSHA) to assure as far as possible every working man and woman in the nation safe and healthful working conditions. electrocution and burns but also extreme heat and cold. lead beryllium. poisons. chemical fumes. y . corrosives. mercury. radiation. rock dust.

y Thus fair working conditions require : y Studying and eliminating job risks y Compensating for risk y Informing workers of known risks y Insuring workers against unknown risks .Contd...

Jobs can be specialised horizontally by restricting the range of different tasks contained in the job and increasing the repetition of this narrow range of tasks. y Jobs can be specialised in two dimensions. When efficiency is achieved through specialization. . Jobs can be specialized vertically by restricting the range of control and decision making over the activity that the job involves.JOB SATISFACTION: y The rational parts of the organisation put a high value on efficiency. All jobs and tasks are to be designed so as to achieve the organisation s goal as efficiently as possible. the rational aspects of the organization tend to incorporate the highly specialized jobs.

dull. y Excessive job specialisation is undesirable because it places unjust burden on labours. Low-level clerical jobs tend to be fragmented. and closely monitored.y Job specialization is most obvious at the operating levels of the organisations. Assembly line work usually consists of closely supervised. It also doesn t contribute to efficiency . and simple tasks. repetitive. repetitive.

y Knowledge of results: he must be able to determine on some regular basis. y Experienced responsibility: he must believe that he is personally accountable for the outcome of his efforts. whether the outcomes of his work are satisfactory .There are three determinants of job satisfaction: y Experienced meaningfulness: the individual must perceive his work as worthwhile or important by some system of value he accepts.

jobs must be y y y y y expanded along five dimensions: Skill variety Task identity Task significance Autonomy Feedback .y For influencing these determinants.

y Freedom of conscience y Whistle blowing: y An attempt by a member or former member of an organisation to disclose wrong doing in or by the organization. consent. they are: y Right to privacy: y Deals with relevance.EMPLOYEE RI H S y There are certain rights of employees. . y Right to due process versus employment at will y Right to organise. and methods while collecting information.

.CORPORATE SOCIAL RESPONSIBILITY y The term CSR come into existence in 1970 y CSR is a form of corporate self-regulation integrated into business model y CSR is the deliberate inclusion of public interest into corporate decision making y Interest in business ethics accelerated dramatically during the 1980 s and 1990 s both within major corporations and academia.

y CSR is a subject to make a debate and criticism y The debates are.. y There is a strong business case for CSR in that corporation benefit in multiple ways y CSR distract from fundamental economic role of Business y It is titled to aid an organizations mission as well as a guide to what the company stands for and will uphold to its consumers .Contd..

Thank You .

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