PREVALENT MORAL ISSUES AND DUBIOUS PRACTICES IN THE

WORKPLACE
Unethical Practices on the Part of Employers
1.

Sexual Harassment

2.

Bribing Government Officials

3.

Paying Employees below Minimum Wage

4.

Tax Evasion

5.

Resisting and Interfering with Trade Unions

6.

Cutthroat Competition

a.

Business Espionage

b.

Infringement

c.

Negative Advertising

d.

Pirating Employees

7.

Employing Children

8.

Double Standard

a.

Gender Discrimination

b.

Age Discrimination

c.

Disability Discrimination

d.

Discrimination Against Gay and Lesbian Workers

e.

Religious Discrimination

9.

Favoritism

10. Entertaining Gossip/ Malicious Talk/ Backstabbing

11. Insulting Employees in Public
Unethical Practices on the Part of Employers
1.

Lagay, Lusot and Lakad

2.

Palakasan

3.

Discourtesy

4.

Improper Use of Office Materials

5.

Pilferage

6.

Gossiping and Bootlicking

Other Ethical Issues in Focus

1.

Strikes

2.

Bluffing

3.

Whistle-Blowing

Introduction
Labor unions are employee-organized associations that protect employees
rights and further their interests within an organization. Labor unions
typically require membership in which employees pay union dues to receive
union representation.
In 2008, about 12% of Americas workforce was unionized and 50% of
working individuals were interested in working for a union (Macaray,
2008). However, depending on the prominent industry of an area, union
represented workers may be much more common. For example, in The
Motor City, metro Detroit, the United Auto Workers (UAW) represents
hundreds of thousands of employees of from Ford, Chrysler and General
Motors.
Aside from the automotive industry, other heavily unionized professions
exist in both the private and public sector. These professions include
teachers, police officers/firefighters, railroad workers and construction
workers.
Labor Union History & Membership
Unions began to form after the industrial revolution in the mid-nineteenth
century. Original labor unions were not successful because they lacked
communication and leadership. In 1947, Taft-Hartley Act was passed into
law, which to this day is the code of conduct for unions. It gave workers the

right to organize and join labor unions, to bargain collectively through

representatives of their own choosing, and to strike (Jackson, H. J., &
Mathis, L. R., 2009). Today, the government strictly regulates unions and
certifies every newly formed union.
Union membership in the United State has been decreasing at a steady rate
over the past five years. When individuals are hired at organizations with
union representation they have the option to pay union dues. Union dues
are typically collected monthly and are used towards the salaries of union
leaders, legal representation, political campaigns, strike funds, and other
purposes. With union membership comes the opportunity to vote on
candidates who campaign to represent the employee body as a whole.
Pros
Working for a labor union comes with many benefits for employees that are,
in most cases, not always experienced by nonunion workers. Benefits of
working for a union-backed company include the following:

Employees who work for a union cannot be fired just because.

Termination within unions requires serious misconduct. Before a unionized

employee can be fired they must go through a grievance procedure.
Needless to say, there is a higher level of job security for union employees.

Union workers typically receive better wages than nonunion workers.

The median weekly income of full-time wage and salary workers who were
union members in 2010 was $917, for nonunion workers it was two hundred
dollars less at $717 (Union Membership, 2012).

Union workers typically have more access to benefits. About 93% of

unionized workers were entitled to medical benefits compared to 69% of

their nonunion peers (Union Membership, 2012).

Unionized workers have more power to negotiate wages, benefits and

working conditions. By approaching issues as a group there is a better

chance for a positive outcome than approaching issues individually.

Cons
There are disadvantages of union representation also. For someone who
would prefer to act individually rather than have someone negotiate on his
or her behalf may not see the benefit of being union-backed. Other
disadvantages include:

Union representation does cost money. Union dues can be up to

several hundred dollars per year and there is sometimes a one-time

initiation fee as well (Todate, M., 2010). Not only is the cost a disadvantage
but also the fact that the individual member has no control over how the
union dues are spent.

For employees hoping to move up quickly within an organization they

may be prevented from doing so due to importance of seniority. Employee

perks are in most cases offered based on seniority rather than merit. Some
union agreements enable displaced workers to bump another worker with
less seniority and take his or her job (Macaray, 2008).
Conclusion
Generally, when it comes to ethical and moral issues within a workplace,
those employees that are union-backed have a greater piece of mind than
those that arent union-backed. There is strength in numbers and when it
comes to fighting for fair employee relations it can be a great benefit to be
union backed. It is important for the union leaders to represent and act in
the best interests of the entire employee body. Cooperation between an
organizations management and union can result in a very prosperous
company.

Todate, M. (2010). Economic Effect of Labor Unions. Japanese Economy,

37(1), 111-129. doi:10.2753/JES1097-203X370104
Macaray, David. (2008). "Labor unions and Taft-Hartley."
Synthesis/Regeneration. General OneFile. Retrieved April 16, 2013.
Household data series union membership tables. (2012, June 21). U.S.
Bureau of Labor Statistics. Retrieved April 17, 2013,
fromhttp://www.bls.gov/cps/cpslutabs.htm
Jackson, H. J., & Mathis, L. R. (2009). Human Resource Management, 13th
Edition. South Western: Cengage Learning.
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Child Labor
Written by: Gjergji Gega
History
If child labor as a mass phenomenon occurs not because of parental
selfishness but because of the parents concern for the household survival,
the popular argument for banning child labor loses much of its force.
However this assumption about parental decision-making coupled with the
assumption of substitutability in production between child and adult labor
could result in multiple equilibria in the labor market, with one equilibrium
where children work, and another where adult wage is high and children do
not work. (Basu, Van, 1998).
Child labor has been a persistent problem throughout the world. Though
restrictions on child labor exist in most nations, many children that live in
undeveloped countries do work and leaves them open to exploitation from
foreign corporations. The International Labour Office reports that children

work the longest hours and are the worst paid of all laborers (Sadiqi and
Patrinos, 1998)
Africa and Asia together account for over 90 percent of total employment
(Basu and Van, 1998). Underdeveloped countries such as Ghana, Tunisia,
Burma, and Cambodia have a really high unemployment rate and a corrupt
government that does not enforce child labor laws. This makes it very
appealing for companies that want to cut costs down and increase revenue.
Companies such as Hersheys, one of the largest companies in North
America are raking in over $6 billion in annual revenues (Bloxam, 2012).
After looking at the revenues of these companies, it is not surprising that
they are paying workers at an extremely low rate and using child labor.
Attributes to Child Labor
Child labor is especially common in rural areas. For example, 66 percent of
the officially employed children aged 6 to 14 years in Peru work in the
countryside (Basu and Van, 1998). There are many reasons why child labor
occurs in undeveloped countries. The most important reason for child labor
is poverty, and the induced pressure upon them to escape from this world of
slavery. Schooling is another contributing factor to child labor. All parents
would like their children to get an education. When there is no access to
school, or there might be a low quality of education, parents will want their
children to find ways to make money or learn new skills such as agriculture
to bring income to the family. This vulnerable state leaves children prone to
exploitation.

Exploitation of underdeveloped countries

During the past decade the economics of the whole world has been in a
declining state. Due to the declining state of our economics and prices have
kept rising. Companies have found different ways to cut costs down. Some
ways that companies have been able to cut costs down are outsourcing and

using child labor. Even though this may not be legal or ethical in the United
States some companies do capitalize on child labor. Companies such as
Nike, Apple, Microsoft, and Hersheys exploit the lack of laws from
underdeveloped countries.
Just this month Whole Foods Market said it has halted orders of Scarffren
Companys artisan chocolate brands over concerns about child labor in
Hersheys West Africa supply chain (Stevens, 2012). Another example of a
famous company exploiting child labor is Nike. One of the plants (Subakumi
Plant) in Indonesia, say that supervisors frequently throw shoes of them,
slap them in the face, kick them, and call them dogs and pigs. Its
understandable that child labor laws are not the same throughout the world.
This fact does not mean that companys such as Hershey and Nike dont
have responsibility for every supply chain or plant managers that break
those laws. These companies have to be held responsible, but at the same
time need to find solutions and ways to reduce or completely abolish child
labor. Most companies have begun to work to find ways to make life better
and fair for workers in underdeveloped countries.
Solutions for Child Labor
Abusing human rights can be costly and can have a negative image on a
company. Most companies are changing policies and trying to find ways to
help workers. Nike is one of the companies that is taking a big step forward
and is allowing outsiders from labor and human rights groups to join the
independent auditors who inspect the factories in Asia, interviewing workers
and assessing working conditions (Cushman, 1998). Another company that
is committed to eliminating child labor is Hersheys. Hersheys has
committed to sourcing 100 percent certified cocoas for all its products by
2020 (Stevens, 2012). Hersheys also introduced a program called
COCOALINK. COCOALINK distributes information about climate and pest
control (DuBois, 2012). . Programs such as COCOALINK help farmers
double their crop yield in a couple of years (DuBois, 2012). All these

different programs and solutions will educate managers to provide better

conditions for workers and at the same time, eliminate child labor.
Conclusion
Employers have always capitalized in underdeveloped countries where they
know that laborers cannot legally form unions, and where child labor laws
are not enforced. This does not make it morally or ethically right for
companies to exploit children in poor rural areas. Companies such as Nike
and Hersheys need to lead by example, by following not only the laws of
that country but also international laws of child labor. If laws are not forced,
then child slavery will continue and these children will be deprived of the
simple joys of childhood.
Reference
Siddiqiq, Faraaz, Patrinos A., Harry (June 1998). Child Labor: Issues,
Causes, and Interventions.
-

http://storage.globalcitizen.net/data/topic/knowledge/uploads/201110

0611931705.pdf
Basu, Kaulshik, Van H., Pham. The Economics of Child Labor. Vol. 88, No 3
(June., 1998), 412-427.
-

http://myweb.lmu.edu/ahealy/474_psets/articles/article3_childlabor.p

df
Fallon, Peter,Tzannatos, Zafiris. (February, 1998). Child Labor: Issues and
Directions for the World Bank.
-

http://info.worldbank.org/etools/docs/library/74184/winter2002/procee

dings/pdfpapers/mod10pf.pdf
Stevens, Harry (October 19,2012). Child Labor Concerns Across Hersheys
Supply Chain Prove it Pays to be Proactive .GreenBiz.

http://www.greenbiz.com/blog/2012/10/18/child-labor-concerns-

hershey-supply-chain
Cushman, H., John, (May13, 1998). International Business; Nike pledges to
End Child Labor and Apply U.S. Rules Abroad.
-

http://www.nytimes.com/1998/05/13/business/international-business-

nike-pledges-to-end-child-labor-and-apply-us-rules-abroad.html
DeBois, Shelley. (February 7, 2012). How Big Chocolate Plans to Save its
Cocoa Supply. CNN Money.
http://management.fortune.cnn.com/2012/02/07/big-chocolate-cocoasupply/
Posted by Gjergji Gega at 9:53 AM No comments:
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Legal Compliance

Written by: Christine Marah

Legal Compliance
Overview
Ethics, what is it? Everyone perceives it differently. What might be
considered ethical to one individual may be considered unethical to
someone else. An issue that organizations often encounter is determining
whether an employees actions are ethical or unethical. Ethics Resource
Center (ERC) is a nonprofit research organization that has been focusing on
the ethics department in both public and private organizations for over 88
years (Harned, 2012). A conclusion that was drawn from one of ERC recent
surveys was that within the past year, about 3,000 United States employees
witnessed ethical misbehavior (Millage, 2005). Another observation that
was drawn from the same survey, was that there is a strong connection
between an organizations overall ethical culture, and the conduct of its

employees. Seventy percent of employees employed within an organization

with a weak ethical culture either witnessed and/or experienced ethical
misbehavior in the past year, while only 34% of employees within
organizations with a strong ethical culture reported witnessing ethical
misbehavior (Millage, 2005).
Every organization has an obligation to make sure they are legally compliant
with the current laws. Teaching what is considered ethical and unethical
can be nearly impossible. The Chairman of the Board of Lockheed Martin,
Norm Augustine, stated We dont teach ethics, we teach ethics awareness
(Trevino, Weaver, Gibson, & Toffler, 1999). A challenge that knowledgeable
managers are beginning to face is how to create awareness about ethical
and legal matters (Trevino et al., 1999). Unfortunately, organizations can
not expect that every employee is knowledgeable with the current laws and
regulations that are related to their job title (Trevino et al., 1999). Since
organizations understand that not every employee is knowledgeable of the
current laws and regulations, they began to create an ethics and legal
compliance program (Trevino et al., 1999).
Ethics and Legal Compliance Program
About 10,000 employees who are employed by one of the six largest
American companies were sent a questionnaire to their home
asking: What works and what hurts in corporate ethics/compliance
management? (Trevino et al., 1999). According to the results from the
survey, the best approach to the ethics and legal compliance program was a
values-based approach (Trevino et al., 1999). A values-based approach
includes making sure every employee is being treated equally, rewards for
ethical behavior, and making sure leaders are following through with
policies, actions, and proceeding with the proper consequences for
unethical behavior (Trevino et al., 1999). With the values-based approach,
leaders of the organization have seen a positive change in the employee
attitudes and behaviors (Trevino et al., 1999). The main observed outcome
from the positive change in the employee attitudes and behaviors were an

increase in commitment to the organization, awareness of ethical issues,

reporting ethical and unethical behaviors amongst co-workers (Trevino et
al., 1999). Also, when employees are aware of the current ethical and legal
issues taking place, they are more prone to follow the proper procedure
when they either witness or experience any illegal or unethical behaviors
(Trevino et al., 1999).
Bullying in the Workforce
Should there be legal actions against bullying? By definition bullying is
considered to be a person that treats a smaller/weaker person in a hostile,
overbearing, or threatening manner (Bullying, 2003). Sadly, we hear of
bullying becoming more common with the younger generation. With the
results of the younger generation bullying their classmates at school, more
children to young adults are committing suicide over it. Sadly however, who
would have thought that bullying would continue from grade school to the
workforce. Sexual harassment, discrimination, and favoritism, are the most
common types of bullying that employees tend to worry about in the
workforce. When sexual harassment comes to mind, we automatically think
about how horrifying the situation is along with the health and mental issues
this may cause. Over the past 21 years, there were 110 studies conducted
comparing the effects of employees well-being after experiencing bullying
and sexual harassment in the workforce (Zeidner, 2008). The study found
that employees who experienced bullying had a decrease of commitment to
the organization and an increase in stress, anger, and anxiety compared to
employees who experienced sexual harassment (Zeidner, 2008). Any type
of unethical behaviors will cause a rippling effect on an individual, whether
the action is committed in the workforce or outside. Since, there are no
legal ramifications against bullying, a consequence of an employee bullying
their co-worker would be that the co-worker will become less committed to
the organization, which will decrease their job performance and eventually
end up quitting (Zeidner, 2008). Every employee works differently under

certain circumstances. Some employees job performance increases while

under stress and some employees job performance decreases while under
stress. But, the cause of stress is different. With a co-worker being bullied
by an employee, the co-worker will experience an increase in stress, anger,
and anxiety levels, ultimately harming the co-workers physical and mental
health conditions (Zeidner, 2008). Some types of physical health conditions
the co-worker may encounter are an increase in blood pressure and heart
rate. A decrease in mental health caused by stress could eventually turn
into depression. Although, there are currently no legal consequences
against bullying, every organization must classify bullying as an unethical
and intolerable behavior and approach bullying in the ethics and legal
compliance program.a