Ch. 15

Living wage:

Wage "that enables workers, for their labor during a standard work week, to support half the basic needs of an average-sized family, based on local prices near the workplace" (Ethical Trading Initiative).

Privacy in the Workplace: Alcohol Abuse at Work

Alcohol use and addiction causes twice the problems of all illegal drugs combined. About 9 percent of full-time employees are heavy drinkers. Up to 40 percent of all industrial fatalities and 47 percent of industrial injuries are linked to alcohol. U.S. businesses lose an estimated $88 billion per year in reduced productivity directly related to alcohol abuse. Employee Assistance Programs (EAPs) - offer counseling, rehabilitation programs, and follow up.

The U.S. False Claims Act 1986 (Lincoln Law)

Allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government.

More on Labor Unions

Although unions overall remain weak, some groups of workers continue to organize. Example: "Google buses" by Teamsters union A major legislative goal of unions:

Honesty Testing Controversy

American Psychological Association notes these tests have significant potential to generate false positives. Example: Test predicts employee would probably steal from the company, even though this is untrue. Tests may intrude on a person's privacy and discriminate disproportionately against minorities.

Privacy in the Workplace

An important right in the workplace as elsewhere, is privacy. Privacy rights: primarily protecting an individual's personal life from an unwarranted intrusion by the employer. Key workplace issues where privacy dilemmas often emerge include electronic monitoring, office romance, drug and alcohol abuse, and honesty testing.

The Right to Safe and Healthy Workplace

Annually, slightly more than 3 million workers in private industry are injured or become ill while on the job (U.S. Department of Labor Occupational Safety and Health Act, passed in 1970, gives workers the right to a job "free from recognized hazards that are causing or likely to cause death or serious physical harm." -This law is administered by the Occupational Health and Safety Administration (OSHA). -Since the agency's creation in 1970 the overall workplace death rate has fallen by more than two-thirds.

The right to choose

Assurance of access to a variety of products and services at competitive prices.

The right to be heard

Assurance that consumer interests will receive fair consideration in government policy and courts.

The right to privacy

Assurance that information disclosed in a commercial transaction is not shared with others.

Privacy in the Workplace: Employee Drug Use and Testing

Drug Testing Drug abuse costs U.S. industry and tax payers an estimated $193 billion a year. Drug-Free Workplace Act (1988) - required federal contractors to establish and maintain a workplace free of drugs. About two-thirds of companies test employees or job applicants for illegal substances, according to a 2015 study. Drug testing is typically used on three different occasions: -Pre-employment screening -Random testing of employees -Testing for cause

Privacy in the Workplace:Employee Theft and Honesty Testing

Employee theft has emerged as a significant economic, social, and ethical problem in the workplace. A 2015 survey of large retail stores in the United States showed that almost 35 percent of all inventory losses were due to employee theft. The retail value of goods stolen by employees was more than $15 billion. Employee Polygraph Protection Act (1988) Severely limited polygraph testing for employers and prohibited approximately 85 percent of all such test previously administered in the U.S.

The Employment Relationship

Employees are an important market stakeholder -Responsible for carrying out the work of the company -Dependent on the employer for their livelihood Nature of the employment relationship conveys rights and duties on both sides. -Right: someone is entitled to be treated a certain way; they confer duties on others.

Right to Organize and Bargain Collectively

Employees have a fundamental legal right to organize labor unions and to bargain collectively with employers. -workers have a right to hold an election to decide which union will represent them. Labor Unions Influence of labor unions has varied during periods in U.S. history:

Workplace Rights

Employees in the United States enjoy important legal guarantees. They have the right to: Organize and bargain collectively A safe and healthy workplace Job security

Whistle-blowing and Free Speech in the Workplace

Free speech in the workplace U.S. Constitution protects free speech; however, does not specifically protect freedom of expression in the workplace. Employees are not generally allowed to speak out against their employers, due to legitimate interests of the business. Whistle-blowing: when an employee believes his/her employer has done something that is wrong or harmful to the public, and he/she reports the alleged misconduct to the media, government, or high-level company officials.

Influence of labor unions has varied during periods in U.S. history:

In 2014, the median weekly pay of full-time workers who were members of unions was 27% higher than that of nonunion workers. In 2014, only about 11% of all U.S. workers were union members. The percentage was higher, 36%, in government employment (7% were unionized). In the wake of the Great Recession, elected officials in several states sought to weaken unions by limiting the rights of public sector workers. Example: In 2015, Wisconsin joined 24 other states in adopting right-to-work law

Special Issue: Wages and Income Inequality What can companies do to address income inequality?

Increase wages of their employees Reduce pay differentials within their organizations Living wage: Wage "that enables workers, for their labor during a standard work week, to support half the basic needs of an average-sized family, based on local prices near the workplace" (Ethical Trading Initiative). Companies that adopt such a "good jobs" strategy reap benefits from doing so.

4 conditions must be satisfied to justify whistle-blowing:

Organization is doing (or will do) something that seriously harms others Employee has tried and failed to resolve the problem internally Reporting the problem publicly will probably stop or prevent the harm The harm is serious enough to justify the probable costs of disclosure to the whistle-blower

Privacy in the Workplace: Romance in the Workplace

Issue requires careful balancing between legitimate employer concerns and employee privacy. A 2013 survey - 38% of workers said they had dated a co-worker at least once during their careers, and of these relationships almost a third had led to marriage. Companies today often draw distinctions, permitting some kinds of office relationships and not others. Sometimes consensual relationship agreements are required to protect against possible harassment lawsuits if the people involved later break up.

The federal Sarbanes-Oxley Act, passed in 2002

Makes it illegal for employers to retaliate in any way against whistle-blowers who report information that could have and impact on the value of a company's shares.

Employees as Corporate Stakeholders

Managers must aware of employee-imported features of today's workforce. The employment relationship is central -to getting a corporation's work done -to helping satisfy the aspirations of those who contribute their skills and talents to the company.

The Right to a Secure Job

Many union contracts say employees can be fired only "for just cause," and workers have a right to appeal the employer's decision through the union grievance procedure. European countries and Japan have laws that extend "just cause" protections to all workers (not only for union members). Cultural values, traditions, and norms of behavior also play important roles. Social contract: the implied understanding between an organization and its stakeholders. This is not a legal contract, but rather a set of shared expectations.

Privacy in the Workplace: Electronic Monitoring

New technologies enable companies to gather, store, and monitor information about employees' activities. A company's need for information, particularly about its workers, may be at odds with an employee's right to privacy. Management justifies the increase in employee monitoring for a number of reasons: -Employee efficiency -Fear of lawsuits if employees act inappropriately

Labor Union

Organizations that represent workers on the job. Labor unions have the right to negotiate wages, working conditions, and other terms of employment. Employers are required to bargain with unions in good faith. If agreement cannot be reached, a strike might occur.

The right to be informed

Protection against misleading advertising, labeling and to be given the facts to make an informed purchasing decision.

The right to safety

Protection against the marketing of good that are hazardous to health or life.

The Dodd-Frank Act of 2010

Requires the government to pay a reward to whistle-blowers who voluntarily provide information that leads to successful prosecutions for violations of federal securities laws.

The Right to a Secure Job

Since late 1800s, the legal basis for the employment relationship has been employment-at-will. Employment at will is a legal doctrine that means employees are hired and retain their jobs "at the will of" (i.e. at the sole discretion of) the employer. However, equal employment opportunity and other laws prevent discriminatory terminations.

Whistle-blowing - Laws

The federal Sarbanes-Oxley Act, passed in 2002 The Dodd-Frank Act of 2010 The U.S. False Claims Act 1986 (Lincoln Law)

Rights of Consumers

The right to safety The right to be informed The right to choose The right to be heard The right to privacy