Canadian Business and Society

ETHICS, RESPONSIBILITIES, AND

Fifth
SUSTAINABILITYAND
Edition

CHAPTER
12
Ethics and
Responsibilities in
the Workplace and
Marketplace
Prepared By:
Renée Majeau, NAIT

© 2020 McGraw-Hill Education Limited 12-1

 Learning Outcomes

1. Elaborate on key issues relating to employees and the

workplace.
2. Learn about the influence the consumer stakeholder
has on the marketplace and the influence the
marketplace has on the consumer.
3. Describe the dynamics and desirability of competition
in the marketplace.

© 2020 McGraw-Hill Education Ltd. 12- 2

 Learning Outcomes

4. Understand the changing influences on suppliers in a

product’s supply chain.
5. Explain the progression of the supply chain and the
influence of factors including sustainability
purchasing and fair trade.

© 2020 McGraw-Hill Education Ltd. 12- 3

 Issues Associated
with Key Stakeholders

• There are four stakeholders to be discussed:

 Employees
 Consumers
 Competitors
 Suppliers

© 2020 McGraw-Hill Education Ltd. 12- 4

 Employees in the Workplace
• Many issues relating to ethics and responsibilities
between employees and employers:
 Working conditions
 Workforce reduction
 Workplace privacy
 Fair compensation
 Employee Engagement
 Employee loyalties and duties
 Diversity management
 Right to due process
 Opportunity for advancement/training

© 2020 McGraw-Hill Education Ltd. 12- 5

 The Work Ethic

• Set of values which holds that work is important to

members of society
 Work influences the qualities or character of individuals
 Work is a purposeful activity requiring expenditure of energy with
some sacrifice of leisure
 Some gain is involved (e.g. money)
 Through work, a person contributes to society and becomes a
better individual

© 2020 McGraw-Hill Education Ltd. 12- 6

 The Work Ethic
• Today, many people are “backing off the fast track” and focusing more
on quality of life:
 Opting out of the labour force (e.g. early retirement)
 Collecting EI/welfare rather than accepting unattractive jobs
 Changing careers
 Refusing to work overtime
 Feeling alienation caused by pressure in the workplace
 Questioning traditional authority
• Gig economy  persons whose participation in labour force is via
short-term, temporary jobs, contracts, an self-employment

© 2020 McGraw-Hill Education Ltd. 12- 7

 Contemporary Implications
on the Work Ethic
• Workplace stress has increased, according to recent studies. The stress is created by a variety of
factors, including many of the items mentioned below.
• Increasing use of part-time or temporary workers has raised concerns about how they are
treated.
• Moonlighting has increased.
• Challenges presented by the gig economy. It may result in a strong work ethic, as workers are
totally dependent on their own efforts to earn a living. On the other hand, it may result in
feelings of insecurity and disappointment.
• Fringe benefits are changing in response to employee demands and efforts by some employers
to retain highly qualified workers; for example, elder care, working from home, job sharing, child
care, discount programs, and recreational facilities. On the other hand, benefits received from
health care and pension plans are declining as employers find them too costly.
• The makeup of compensation is changing, with greater emphasis on pay for performance
through cash bonuses, stock purchase, and grant plans.
• Employees are more concerned about being able to balance work and personal life
• Job insecurity has increased as employers are willing to lay off employees on short notice and
even when the corporation is profitable.
• Consensus that Canada is suffering a labour skills shortage and that shortage will become worse.
TABLE 12.1
© 2020 McGraw-Hill Education Ltd. 12- 8
 Employee Loyalty

• Commitment by employees to the organization they work

 Employers can also demonstrate loyalty to employees
 Measuring loyalty can be difficult
 Managers should be cautious of extreme loyalty
 Employees want to be entities unto themselves and seeking
challenging opportunities
 Intelligent HR management helps engender loyalty

© 2020 McGraw-Hill Education Ltd. 12- 9

 Employee Loyalty
• In order to improve loyalty:
 Managers must communicate persuasive corporate image to employees
 Employees who demonstrate loyalty must be appropriately rewarded
 Must be a corporate priority and start at top with CEO
 Persons at all levels of organization must be involved
 Process takes time
 Token, one-shot efforts must be avoided
 Mangers must distinguish between employee loyalty to individuals and
to the corporation

© 2020 McGraw-Hill Education Ltd. 12- 10

 Workplace Privacy
• Privacy of employee’s personal information
 Regulated by federal government’s Personal Information Protection and
Electronic Documents Act (PIPEDA) and other provincial legislation
• Workplace privacy challenged by emergence of electronic
technology and social media
 Appropriate use of electronic technology, particularly in relation to social
media
 Surveillance or monitoring of email and Internet usage
 Use of cameras

© 2020 McGraw-Hill Education Ltd. 12- 11

 Managing Employment
Diversity
• Discrimination  preferential (or less than preferential)
treatment on bases not directly related to qualification of
the job or job performance
 Based on grounds such as:
• Race • Marital status
• Gender • Physical appearance
• Nationality • Sexual orientation
• Age (young and old) • Health
• Disability

© 2020 McGraw-Hill Education Ltd. 12- 12

 Managing Employment
Diversity
• Employment equity  fair and equal treatment of
employees
• Legislation to address discrimination:
 Employment Equity Act
 Canadian Human Rights Act
• Diversity management  voluntary initiative beyond
what is required by law to eliminate discrimination

© 2020 McGraw-Hill Education Ltd. 12- 13

 LGBTQ+ and Business

• Lesbian, gay, bisexual, transgender, and queer or questioning

 Plus sign indicates the need to be inclusive of all identities to ensure
that none are left out
 Sometimes 2 is included to represent both masculine and feminine
spirits
• Used by some Indigenous people to describe their sexual, gender,
and/or spiritual identity
• Businesses increasingly recognizing LGBTQ+ individuals
 Commitment to inclusiveness at the top of the corporation
 Need to identify how employees experience inclusiveness

© 2020 McGraw-Hill Education Ltd. 12- 14

 #MeToo and Business

• #MeToo movement has raised awareness of sexual

harassment in society’s institutions
• Management and boards of directors must be proactive in
addressing sexual harassment and issues involved:
 Implementing procedures for reporting harassment
 Establishing independent helplines
 Increasing training programs and refreshing training materials
 Revising codes of conduct
 Including more diverse voices in executive and board positions

© 2020 McGraw-Hill Education Ltd. 12- 15

 Influence of Feminist Ethics
on Business Ethics and CSR

• Feminist ethics  diverse set of gender-focused

approaches to ethical theory and practice
 Objective to develop non-sexist ethical principles, policies, and
practices in society
 Places emphasis on three concepts that provide better approach
to recognizing, evaluating and addressing ethical concerns:
• Relationships
• Responsibility
• Experience
 Greater attention to role of interpersonal relationships in
business
© 2020 McGraw-Hill Education Ltd. 12- 16
 Employees and CSR

• Connection exists between CSR and employee

engagement  emotional and intellectual commitment of
an individual or group to an organization that supports
building and sustaining business performance
 Employers effectively communicating CSR within the
corporation are more likely to attract and retain employees
 Employees who give money or time to social causes are more
committed to their employers
• Students are searching for meaningful work as
demonstrated by a prospective employer’s involvement in
social issues

© 2020 McGraw-Hill Education Ltd. 12- 17

 Summary
• Canadian employers and employees face many challenges in their
relationship. Most Canadians still believe in the work ethic;
several factors affect the loyalty of the employee to the employer;
and employment diversity is a matter that employers must manage
in today’s workplace. Diversity management now includes the
LGBTQ groups and the #MeToo movement. (LO 12.1)
• According to consumer sovereignty, consumers should be
determining what goods and services are available in the
marketplace. In reality, this does not occur and consumers must
also rely on rights and government legislation and regulation. (LO
12.2)

© 2020 McGraw-Hill Education Ltd. 12- 18

 Summary Cont’d…
• It is desirable that competitive rivalry exists in the
marketplace, but many ethical and responsibility issues arise.
Government has enacted legislation to encourage honest, fair,
and open competition in the marketplace. (LO 12.3)
• Pressure on suppliers and the supply chain to consider ethics
and responsibilities in the marketplace has increased. In
general, the relationship between suppliers and their
customers has changed from an adversarial one to a co-
operative one including the emergence of supplier diversity
(LO 12.4)

© 2020 McGraw-Hill Education Ltd. 12- 19

 Summary Cont’d…

• The supply chain identifies the progress of a product from

raw material sources through to the consumer and
ultimately disposal. Sustainability purchasing takes into
consideration ethical, social, and environmental factors in
acquiring materials and products. Fair trade is a version of
this type of purchasing that attempts to improve the
economic well-being of people working in the upstream
component of the supply chain. (LO 12.5)

© 2020 McGraw-Hill Education Ltd. 12- 20