Chapter Six

Employee Stakeholders
And
The Corporation
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 Employee Stakeholders:
The Workforce In The 21st Century
 The following values  “Workforce 2000”
were identified as related values
considered most
motivators for important include:
professionals:  Recognition
 Competitive pay  Respect and dignity
 Benefits and  Personal choice
opportunities  Involvement at work
 A fair deal
 Pride in work
 Quality of lifestyle
 Being valued  Financial security
 Decent relationships  Self-development
 Health and wellness

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 The Changing Social Contract
Between Corporations and
Employees
 The social contract that has
historically defined the
employee/employer relationship is
known as the employment-at-will
(EAW) doctrine.
 The EAW remains the cornerstone
of U.S. labor law.
 At issue is the continuing debate
over the nature of property and
property rights.
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Employee And Employer Rights
And Responsibilities
 The ideal relationship between employer and
employees is one based on mutual respect
and trust.
 A right can be understood as a “moral claim.”
 The moral foundation for employee rights is
based on the fact that employees are
persons.
 The evolving social contract between
employers and employees still recognizes
employers’ power over physical and material
property, but the contractual relationship
aims in principle at balance, mutual respect,
integrity, and fairness.
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Employee And Employer Rights
And Responsibilities
 Employers are obliged to:
 Pay employees fair wages for work performed
 To provide safe working conditions
 Employees are responsible for:
 Fulfilling their contractual obligations to the
corporation
 For following the goals, procedural rules, and work
plans
 For performing productively
 Timeliness
 Avoiding absenteeism
 Acting legally and morally
 Respecting the intellectual and property rights of the
employer
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Employee And Employer Rights
And Responsibilities
 Major types of employee rights in
the workplace include:
 Right not to be terminated without just
cause
 Right to due process
 Right to privacy
 Right to workplace health and safety
 Right to organize and strike
 Rights regarding plant closings
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Employee And Employer Rights
And Responsibilities
 Employees’ right to privacy remains
one of the most debated and
controversial rights. Areas centered
around issues of privacy include:
 Technology use
 Polygraph and psychological testing
 Workplace surveillance
 Internet use
 Drug testing
 Genetic discrimination
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 Discrimination, Equal
Employment Opportunity, And
Affirmative Action
 Recently, discrimination has surfaced in a
number of categories including:
 Racial profiling
 Income disparities
 Ratio of female compensation compared to male
 Examples of discriminatory practices have
been found in:
 Recruitment
 Screening
 Promotion
 Termination
 Conditions of employment
 Discharge
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Sexual Harassment In The
Workplace
 Sexual harassment remains among the
most prominent civil right issues in the
workplace.
 Forms of sexual harassment include:
 Unwelcome sexual advances
 Coercion
 Favoritism
 Indirect harassment
 Physical conduct
 Visual harassment
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 Whistle-Blowing Versus
Organizational Loyalty
 DeGeorge has identified five conditions when whistle-blowing
is morally justified:
 When product or policy of firm will serious and considerable
harm to the stakeholders
 When employee identifies a serous threat of harm statig his/
her moral concern
 When immediate supervisor does not act it should reported to
the higher authority
 Employee must have adequate documented evidence
 Employee must have valid reasons to believe that such
reporting and resultant action would ensure policy change
beneficial to all and is worth taking the risk as a whistle-
blower

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 Whistle blowing contd…..

 Four managerial steps to prevent external

whistle-blowing have been suggested:
 Develop effective internal grievance procedures and
processes that employees can use to report wrongdoings
 Reward people for using these channels
 Appoint senior executives to address such concerns
 Assess large fines or illegal actions ; include all wrong
doers who knowingly play on / break the rules

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