Ethical Issues Flashcards
Business is viewed as
- Productive human activity
- Produces employment, fair deals, creativity, advancement of technology, customer satisfaction, etc.
- However, it also subject for abuse
- Employee-employer relationship
- Buyer-sellers relationship
Create hostile and unhealthy workplace for the employees
SEXUAL HARASSMENT
The State shall value the dignity of every individual, enhance the development of its human resources, guarantee full respect for human rights, and uphold the dignity of workers, employees, applicants for employment, students or those undergoing training, instruction or education. Towards this end, all forms of sexual harassment in the employment, education or training environment are hereby declared unlawful.
Anti-Sexual Act of 1995 (Philippines)
SECTION 2.Declaration of Policy.
“unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of sexual nature constitutes sexual harassment when submission to or rejection of this conduct explicitly or implicit affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates and intimidating, hostile or offensive work environment.”
Civil Rights Act of 1964 (US)
Why sexual harassment occurs
- Due to power struggle between men and women
- Some organizations and managers allow it to happen
- Industrial revolution. Balanced shift.
- Men and women used to work separately (women joined the workforce)
- Harassment committed by man to woman – response to real or imagined loss of power
- Harassment committed by woman to man – it may be an expression of retaliation or flexing of the new power
response to real or imagined loss of power
Harassment committed by man to woman
it may be an expression of retaliation or flexing of the new power
Harassment committed by woman to man
Two types of sexual harassment
“Quid Pro Quo”
Harassment that creates a hostile environment
“this for that” or “something for something”
Quid Pro Quo
Requiring a sexual favor or interaction as a condition for employment or in exchange for an employment benefit conduct
Quid Pro Quo
Includes abuse, verbal, physical & visual conduct & intimidating, offensive, or hostile environment in the workplace that interferes with work performance
Harassment that creates a hostile environment
Maybe based on religion, race, national origin, sex, age, marital status, veteran status, sexual orientation, disability
Harassment that creates a hostile environment
Examples of hostile environment
- Unwanted touching, patting, pinching or brushing up against a person
- Comments about your body, leering, wolf whistling, cat calls, insults, of a sexual nature, persistently pestering for a date
- Display or circulation of pornographic pictures with the intention of harassing someone
- Workplace blackmail
- Green jokes
- Obscene letters
- Sexual propositions
- Suggestive looks
____________ maybe a woman or a man. _____ does not have to be the opposite sex.
Harasser & victim
Victim
The _______ can be the victim’s supervisor, agent of the employer, supervisor in another area, co-worker or non-employee.
harasser
The ________ does not have to be the person harassed but could be anyone affected by the offensive conduct.
victim
The ________ conduct must be unwelcome
harasser’s
who made a study about how sexual harassment affects the workplace?
Redbook Magazine (1981)
how many men and women were asked by the redbook magazine? and what percentage of people believed that they were sexually harassed?
140,000 men and women were asked and 80% believed that they were sexually harassed
according to the redbook magazine, what is an example of a gesture that creates hostile environment?
jokes
How sexual harassment affects the workplace
- Lawsuits
- Unfavorable publicity or invasion of privacy
- Affects manager, employers, co-workers
- Affect the entire life of the organization
- Low morale for the employees
- costly
How to prevent sexual harassment
Create a safe, secure, positive working environment
Examples of policy development
- Statement that specifically addresses sexual harassment
- A separate sexual harassment policy that covers all organizational members
- One that addresses non-management employees & one that addresses management
in communicating the sexual harassment policy, what are the things that we can do to expose the policy regularly?
- posting it on bulletin boards
- Memos
- Articles
- Newsletters
- Meetings
- training
it is said to be for the purpose of obtaining economic gain for the laborer
work
its main objective is to create a system of reward that is equitable to the employer & employees
work
the essence of it is to be compensated for a work done or for services rendered
work
Promotion of life
work
it is the legitimate fruit of work according to the Church
just wage
it should not be below the level of subsistence of a worker
just wage
it is a compensation enough to support the wage-earner in reasonable and frugal comfort
just wage
it should assure that every man has the opportunity to provide a dignified livelihood for himself and his family
just wage
he says that members of the working class are citizens by nature and has the same rights as the rich
Pope Leo XXIII
he says that workers and employers should bargain on wages; wages bargained should not be in any way insufficient
Pope Leo XXIII
he says that if a worker is forced to accept harder conditions imposed by the employer, he is a victim of violence of injustice
Pope Leo XXIII
“Capital of Labor” by Pope Leo XIII was called as the “__________” by Pope John XXIII
Magna Carta of Social Reconstruction
“__________” by Pope Leo XIII was called as the “Magna Carta of Social Reconstruction” by Pope John XXIII
Capital of Labor
he shares on profit
Pope Pius XI
he’s giving workers a say in a company’s management
Pope Pius XI
he called on government to lead in business abuses and push full employment policies and attempted to focus on the widening gap between the rich and the poor
Pope John XXIII
he implemented just wages
Blessed Pope John Paul II
he implemented joint ownership
Blessed Pope John Paul II
he implemented employee share in profit and management
Blessed Pope John Paul II
he implemented employee benefits such as health care, suitable working condition and rest periods
Blessed Pope John Paul II
he implemented job trainings for disabled persons
Blessed Pope John Paul II
he implemented special protections for overseas workers
Blessed Pope John Paul II
he says that wages should be sufficient so that women with children will not be forced to work and will have time to devote themselves to the care of their children
Blessed Pope John Paul II
it focuses on just wage and welfare of workers
Catholic Bishops of the Philippines
it helps in formation of labor unions for wage negotiations and working conditions
Catholic Bishops of the Philippines
it rejects individualism
Catholic Bishops of the Philippines
Agencies concerned on just wage
- The International Labor Office Conventions (TILOC)
- The 1966 International Convention on Economic, Social, and Cultural Rights (1996 ICESCR)
- The 1984 Universal Declaration of Human Rights (1984 UDHR)
- The 1987 Philippine Constitution (1987 PC)
- The Wage Rationalization Act (RA No. 6727) (WRA RA 6727)
“Equal pay for men and women workers.”
The International Labor Office Conventions
(TILOC)
“The right to fair wages and equal compensation for work of equal value.”
The 1966 International Convention on Economic, Social, and Cultural Rights
(1996 ICESCR)
“The right to equal pay for equal work (Art. 23)”
The 1984 Universal Declaration of Human Rights
(1984 UDHR)
“That the workers are entitled to a living wage (Art. 13)”
The 1987 Philippine Constitution
(1987 PC)
“The state shall rationalize the fixing of minimum wages to ensure a decent standard of living for the workers and their families.”
The Wage Rationalization Act (RA No. 6727)
(WRA RA 6727)
Factors to consider in the Formulation of Just Wages
- External Market
- Laws and Regulations
- Cost of Living
- Industry Rate and Locality
- Organizational factors
- Job Factors
- Individual Performance
- Supply and demand of labor in the market
- Scarcity of labor or jobs
External Market
- Workers should be paid according to the law
- Minimum wage
Laws & Regulations
NWPC
National Wage and Productivity Commission
RTWPB
Regional Tripartite Wages and Productivity Board
- A fair wage should be sufficient to meet the increase of cost of living
- If COLA is up by 10% the wage should also be up by 10%
- Unfortunately it does not always happen
Cost of living
- Wage survey
- Not all companies have a minimum wage high enough
Prevailing rate
- Type of industry
- Size of the company
- Unionized or not/labor intensive or capital intensive
Organizational factors
- Nature of job
- The more difficult the job is the higher the pay rate should be
Job Factors
Some issues on just wage
- The minimum wage mandated by the government is not a guarantee of just and fair wage
- Mutually agreed wages of the different organizations may not be advantageous to the workers
- Geographic differences hinder the formulation of perfectly common definition of fair wage.
- Wage indexation to cost of living where wage is automatically adjusted with the increase of COLA is not usually met by majority of employers
- Companies have different interpretation of the justifiable pay for certain job positions, skills, & task
An act of extending goodwill to an individual in an effort to share something with particular others.
Gift-giving
it is a common practice in business community
Giving gifts to customers, clients & business partners
it normally observed during special occasions
Gift-giving
Reasons for gift-giving
- To show appreciation for a favor received
- To effectively establish goodwill with business partners
- To advertise
- To compete effectively against competitors
Common forms of gift-giving
- Samples
- Raffle coupons
- Rebates/cash refunds
- Padding expense accounts
- Premiums
- Prizes
- Patronage awards (rewards)
- Tie-up promotions
- Allowance
- Free goods/tips
- Difficult to determine the morality of gift-giving
- Most agree that accepting & receiving bribe is a violation of professional ethics
- However, it’s hard to determine what is and is not a bribe.
- Rules not clear
Is gift-giving ethical or unethical
Factors in determining the morality of gift-giving
- Value of gift
- Purpose of gifts
- Circumstances under which the gift was given or received
- Position between or relationship of the giver & receiver
- Acceptable business practice in the industry
- Company policy
- Laws & regulations
- Is the gift nominal or substantial enough to influence a business decisions?
- Valuable gifts are unethical
value of gift
- If the gift is not intended to be or received as bribe & remains nominal there does not appear any serious problem
- Gift with imprinted name of the giver maybe considered as a form of advertisement.
purpose of gifts
- Gift given during special occasions or events
- Unattached to special events
- Gifts given openly or secretly
Circumstances under which the gift was given or received
Could the recipients’ opinion influence decision result in favor of the donor
Donor-receiver
subordinate relationship
Superior
- Is the act considered acceptable in a particular business?
- Tips & gifts
Acceptable business practice in the industry
if the firm prohibits gift-giving to customers, vendors or suppliers, associates, et. Then it is wrong
company policy
- Practice of giving remuneration for performance of an act that is inconsistent with the work contract or the nature of the work one has hired to perform.
- Induce to make people inside the business or other organizations to make decisions that would not be justifiable according to normal business criteria
bribery
- Motorist offering money to police officer so as not to be given ticket for a violation
- Giving an expensive gift for a faster paperwork
- A construction company shared percentage of income to civil servant in order to win a contract
- Bribing a judge to lessen criminal penalties
Examples of bribery
Bribery is unethical because…
- It used to gain personal or corporate advantage
- It corrupts the concept of justice & equality
- It produces cynicism & a general distrust of institution
- It destroys people’s trust in the integrity of professional services of government, courts, law enforcement, religion, etc.
- It treats people as commodities whose honor can be bought & sold
- Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
- Paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience.
advertising
purpose of advertising
To inform potential buyers of the availability of a certain product by providing relevant information on its uses, benefits and how it might serve the needs and wants of individuals.
THE BENEFITS OF ADVERTISING
- economic benefits
- political benefits
- cultural benefits
- moral and religious benefits
- Informing people about the availability of products (new and improvements of existing ones)
- Helps consumer to make informed and prudent decisions
- Contributes to efficiency and lowering the prices
- Stimulating economic progress through the expansion of business and trade
- New jobs, higher income and more decent and humane way of life for all.
economic benefits
- Makes contribution to democracy analogous to its contribution to economic well-being in a market system guided by moral norms.
- Helps counteract tendency toward the monopolization of power on the part of oligarchies and special interests
- Informs people about the ideas and policy proposals of parties and candidates, including new candidates not previously known to the public.
political benefits
- Have an opportunity to exert a positive influence on decisions about media content
- Can contribute to the betterment of society
- Advertising can brighten lives
cultural benefits
- Helps generous social institutions to communicate their message (faith, patriotism, etc.)
moral and religious benefits
- False statement
- Lying or representing the product without any statement
deceptive advertising
deceptive advertising may occur through
- Sentences or propositions
- Pictures
- individual words
- Combination of objects which can deceive the mind & the eye
- Box of the product do not look the same as the contents of the product.
- Picture deceptive
Example of deceptive advertising
- Allowed in certain way to create a leeway in some products
- Products should be package in attractive way but should not be taken literally
- Ex. Shampoo, cosmetics with pictures of beautiful model
semantics in advertising
Use of weasel words
- Ambiguity in advertising
- Used to avoid or recoil from straightforward statement
- Ex. Help (aid or assist)
- Semantics
- Do not provide direct information
- unsure
Occurs when advertisement tend to make false claims of the benefits unsupported by evidence
exaggeration
- Arousing human emotional needs rather than reason
- Contains elements that satisfy subconscious desire
- Power, prestige, personal enjoyment, masculinity (ex. Axe)
- Plays a serious moral concern
psychological appeals
- Children are special group of consumers
- Advertising to children is effective & eventually became big business
- Average child is exposed to more than 40,000 tv commercials per year
- Kids are the most pure customers
- Not able to draw the line between children’s show & commercials
- Aim for children to pester their parents to buy things for them
Ads directed at children
The State shall protect the consumer from misleading advertisement and fraudulent sales and promotion practices.
Consumer Act of the Philippines (RA 7394)
ARTICLE 108. Declaration of Policy
it shall be unlawful for any false, deceptive or misleading advertisement by Philippine mail or in commerce by print, radio, television, outdoor advertisement or other medium for the purpose of inducing of which is likely to induce directly or indirectly the purchase of consumer products or services.
Consumer Act of the Philippines (RA 7394) ARTICLE 110. False, Deceptive, And Misleading Advertisement
An advertisement shall be considered false, deceptive, or misleading if not in conformity w/ the provisions of which Act?
Consumer Act of the Philippines (RA 7394) ARTICLE 110. False, Deceptive, And Misleading Advertisement
- No claim in the advertisement can be made if not approved by DOH.
- It is unlawful to advertise any food, drug, cosmetic, device or hazardous substance that is false, misleading or deceptive or is likely to create erroneous impression regarding its character, value, quantity, composition, merit or safety.
- Where a standard has been prescribed for, FDCD or H substance, no person shall advertise any article or substance in a manner that is likely to be mistaken for such product, unless the product actually complies with the prescribed standard.
- Advertisement of any FDCD or H substance may not make use of any reference to any laboratory report of analysis required to be submitted to the DOH, unless such laboratory report is duly approved by the DOH.
- No advertisements for any FDCD or H substance may be allowed unless such product is duly registered and approved by DOH.
Special requirement for Food, Drug, Cosmetic, Device or Hazardous Substances
- Good advertising…
recognizes both its economic & social responsibility to help reduce distribution costs & to serve the public interest. - Depends for its success on public confidence. Hence it cannot permit those practices that tend to impair this confidence.
- Aims to inform the consumer & help him by intelligently.
- Tells the truth. It is accurate, honest & trustworthy. It does not exaggerate.
- Conforms not only to the laws but also to the generally accepted standards of good taste & decency, & to moral & aesthetic sentiments of the country.
- Seeks public acceptance on the basis of positive & constructive statements, made on the merits of the product or service advertised.
- Does not allow activity that involves the exploitation of goodwill, attached to any other firm, product or services.
- Helps to dignify the individual and contribute to the building of a civilized society.
Philippine Association of National Advertisers (PANA): Code of ethics
Romance in the workplace is not a novelty. However, it is believed to have increased as a result of the influx of women into the labor force in the last 50 years. In 1950, less than 30 percent of the 64 million labor force participants were women. Between 1950 and 2001, six out of ten additions to the labor force were women. As of 2003, women composed 46.6 percent of the labor force (Kaufman & Hotchkiss, 2003).
workplace romance
The combination of a gender-mixed workforce and time spent at the workplace has the effect of conjuring up human emotions that often give birth to romance between co-workers and between subordinates and their supervisors.
workplace romance
it is defined as a mutually desired relationship that includes physical attraction between two members of the same organization (Quinn, 1977, Foley and Powell 1999).
workplace romance
it is consensual and mutually welcomed (Clarke 2006).
workplace romance
they are characterized by desiring to be with the other person and feelings of emotional and physical attraction, which may lead to a sharing of personal information, mutual caring and respect, and quite likely sexual behaviour such as touching, kissing and hugging, and sexual intercourse (Pierce, Byrne, and Aguinis 1996).
workplace romances
employers may be concerned about office romances for a variety of reasons. Office romance has the potential to negatively affect behaviour in the workplace in ways that conflict with both the business and legal interests of the employer.
employer’s interests
- A relationship between a supervisor and subordinate may lower the morale and productivity of other employees.
- Morale may suffer as a result of alleged favoritism, the extent of which may or may not arise to the level of a recognizable legal claim.
- Employees may also lose motivation to work harder or go the extra mile, because they believe that the supervisor has “blinders” when it comes to other employees’ accomplishments.
business interests
- A relationship between a supervisor and subordinate presents some legal issues. Is the subordinate truly a consenting party? Will it result in favoritism?
- If the elements support a legally recognizable claim, not only are there costs associated with defending the claim, but the employer may be found liable by a trier of fact and be subjected to an uncertain amount of damages.
legal interests
- When we ask whether the subordinate in a relationship with a supervisor is a consenting party, what we really mean and should ask is whether the supervisor’s advances were welcomed and whether the subordinate’s continued consent was voluntary.
Consent is not a synonym for welcome
Employees expect to be left alone in matters that are private and do not concern their work. While at work, they expect fairness and equity. It sounds simple enough. Of course, it is not. (privacy, fairness, and equity)
employees’ interests
Why Do So Many Romances Originate in the Workplace?
- Today’s worker spends more time with business colleagues than with his or her mate.
- It is not surprising that men and women develop close friendships with each other and turn to one another for emotional support. This is likely to happen both to married as well as single individuals.
A (POSSIBLE) BREEDING GROUND FOR ROMANCE?
the workplace
- In the 1950s researchers believed that opposites attract because they would complement each other’s needs, but there is little support for this proposition.
- Recent studies have consistently found that higher perceptions of similarity are associated with increased levels of relationship quality” (Hogg & Cooper, 2003). Physical attractiveness and reciprocity of liking are also factors of interpersonal attraction.
- Another factor is the exposure effect.
interpersonal attraction
In the Philippine setting, romances have likewise blossomed in the workplace resulting both as a challenge and success in the companies where they are happening (Reclusado-Nario, 2006).
workplace romance (philippine setting)
_______ while at work is indeed a great poser
To love or not to love
what are some tips on dealing with office romance?
- Decide in advance whether you will have a romantic relationship in the office.
- Don’t have a relationship with someone in your company unless you can stay far enough away from each other, so you won’t be influenced by the other person
- Do not have a romance with a married colleague!
- The more flirtatious a guy gets, the more business-like you should get.
- If you are in love, don’t get lightheaded because you feel great.
- If you marry a male colleague, consider keeping your own name.
- Consider keeping your relationship secret until you see how serious it is going to be.
- Make sure the corporation realizes you are spending your time on business even if you have a romance.
- Understand that there are two elements of career success: Actual Performance and How you are being perceived.
What do Employers Need to Control?
- It is important to note the difference between regulating professional behavior (the ethical dos and don’ts and acceptable etiquette within one’s profession) and regulating behavior that is searching to meet more instinctive human needs. There may be a natural conflict.
Employers Need to Control
- attraction
- behavior at work
- behavior/relationship out of work
- consequences of “bad” breakups
The best chances of controlling attraction would be to hire an all-male or all female heterosexual workforce. A firm could also attempt to physically separate its male employees from its female employees.
attraction
The employer can try to control the actual behavior that may lead to romantic feelings.
behavior at work
At will doctrine allows an employer to fire for any or no reason as long as it is not an unlawful reason (discrimination, etc.).
behavior/relationship out of work
Employers need to prevent sexual harassment claims arising from romantic relationships that have gone “sour.”
consequences of “bad” breakups
Types of Control (Concerning Workplace Romance)
- rules/policies
- corporate culture
- performance outcomes
The employer can establish a policy prohibiting it and list possible consequences for violating the policy.
rules/policies
The employer that may not want to bind itself to a written rule, yet minimize its risk for sexual harassment liability, may establish a corporate culture in which their behavior is frowned on, and “prohibited.”
corporate culture
If management frowns upon office romance and is aware of the romance, the employer may be encouraged to “punish” the employee by means of performance reviews.
performance outcomes
- Businesses and its employee’s primary interests must agree together. Both parties should maintain productivity and morale, and as much as possible avoid liability.
- Any company should know the importance of fairness and equity and the right to privacy of employees in their personal lives.
- Now whether or not workplace romance is moral, as rational people we are expected to know our limit and the consequences of our actions by getting involved in such situations.
critique
- Measure of value in exchanged.
- Maybe expressed in monetary terms (a sale) or in non-monetary terms (barter)
price
Covers the cost of producing the commodity including rate of profit obtainable in other markets (Adam Smith).
natural price
Price theories
- The Cost Theory of Prices
- Market Theory of Prices
Fair price of good depends on how much it costs for the seller to make the product available to the buyer & on calculation of a reasonable profit
The Cost Theory of Prices
- Value is a function of utility and scarcity
- The more useful the commodity the higher the price.
Market Theory of Prices
_________ affects the price
Law of supply and demand
it means acceptable and just
fair
A fair price is satisfactory
acceptable
Judgment that the price has been justified
just
Difference between fair price & just price is __________
personal and social fairness
A price is fair when…
- Buyer & seller must negotiate the terms of exchange voluntarily.
- Buyer & seller must agree to the exchange without unusual constraint.
- Buyer & seller must have adequate information about the things to be exchanged.
Why price for a product or service has to be established?
- man is entitled to enjoy the fruits of his labor
- Price depends on the law of supply and demand
Factors that determine a fair price
- Cost of materials
- Operating and marketing expenses
- Reasonable profit margin
Ethical issues in fair price
- The true cost of the product is concealed
- Suggested retail price
- Use of electronic scanners
- Promotional pricing
- Follow the leader pricing
- Price scratching
- Price fixing
- The market presupposes the setting of a fair price depending on its structure.
- Buyers and sellers’ bargain with each other in setting prices.
- Sellers would normally ask for a higher price and buyers offer less than they expect. Through bargaining, each would arrive at a fair market value reasonable to both parties.
market structure
who said this about just or unjust price?
“buying and selling were instituted for the common good of both parties since each needs the products of the other. Therefore, the contract between them should rest upon an equality of things to things. The measure of the value of a thing, which is exchanged, should be given by its money price. Hence, to sell a thing dearer or to buy a thing cheaper than it is worth is unjust.”
St. Thomas Aquinas, a brilliant Italian Dominican sets a price principle on what is considered as a just price
For a business venture to progress, it needs to have an _________
ample amount of profit
it can be narrowly defined as income less expenses; however, it is more broadly categorized on building a reputation for excellent products, services and business practices.
Profit
it provides owners with a return on their investment, to increase pay for workers, to buy additional resources, to research new products or services and to support their communities.
Profits
The price it pays to customers must also be equal to its _______ that run the whole business enterprise.
internal factors
Businesses therefore set prices high enough to make profit, but not too high or consumers may think the price is _____
unfair
