Work Place Health: Up in Smoke

By Dan McCauley

Overview

            Over the past few decades, the world has identified smoking as a hazard and has taken many steps in cleaning up the air in the workplace, public areas and other establishments. This topic of debate is a very controversial one and it has many different ethical issues that arise from it. For the most part there is no smoking in office buildings and government buildings. Though there are some privately owned businesses that still have employees smoking inside as well as establishments where food and drinks are served. Casinos are a large part of the cash flow in this country and most casinos fall in this category of smoking establishments. Human Resource Managers have to go through many ethically challenging decisions when it comes to this topic. It is the ethical struggle of someone’s well-being and profitability of the company. You would imagine this to be a no brainer but unfortunately it is not.

Relevance

            This relates to our course in a few different facets. The most obvious is the health and safety of people in the workplace. Another way the laws that work places and public establishments must follow. Finally, is the compensation for people who work in these hazardous environments.

Pro Smoking

            The Casino owners are in favor of smoking in the casinos. In 2009, the Mashantucket Pequot Tribal Nation and the government in Connecticut came into some very interesting ethical issues. The state government was trying to implement a no smoking policy on the casino on behalf of the workers and non-smoking patrons. The Tribal Nation is claiming that they cannot do this because it is a sovereign nation with their own set of laws. Furthermore, if the government put this ban into place then it would be able to withdraw from giving the state government the percentage of their revenues while this is being contested. Taking this action would result in a loss in the hundreds of millions of dollars (Pazniokas, 2009).

            In Las Vegas, people consider it a smoker’s oasis because you are free to smoke in all the casinos. Even with the majority of the people who live there voting to ban smoking, the casinos have too much political power (Nagourney, 2010). This is not very ethical but somehow it is legal. People do have their choice to smoke while in the casinos. If it were non-smoking they could be cutting out a big portion of their patrons and that is not ethically sound. It is still legal so it is still “ethical” to have it in the establishment.

Cons of Smoke

The U.A.W., who has many political ties, was also part of the negotiations for the working conditions for the 2,500 dealers at the Foxwoods casino in Connecticut. The whole reason they don’t want this to happen is it could hurt their bottom line. This same set of casinos had the idea to serve alcohol 24 hours because they saw a possible 5 million dollar increase in profits. That same month a drunk driver hit a bus with college kids going on a mission trip overseas. He was previously at the casino (Pazniokas, 2009). As you can see the moral compass and ethics of these establishments are not for the greater good but for the money.

Ms. Kastroll, a dealer for 20 years, said that dealers were often locked at tables for an hour at a time. ''We get every kind of direct cigarette smoke, sometimes intentionally blown on us because they are losing,'' she said. ''You're not allowed to fan, you can't blow it back on them. Forget the employee -- it's all about their bottom line.'' She is the lead plantiff in a class action lawsuit against the Las Vegas casinos (Nagourney, 2010). If they followed ethical decisions then they would be able to avoid situations like this. They feel that the amount of money they will pay in the settlement doesn’t outweigh the amount they would lose from banning smoking. The human element doesn’t cross their mind.

Since smoking bans have gone into place at restaurants and other public establishments the number of heart attacks, strokes, and respiratory disease has decreased by an alarming rate. These bans are the direct result of people in not only human resource positions but every day people having a good set of personal ethics. In 2007, a study in Minnesota showed that after an expanded ban of smoking was implemented to workplaces and other establishments that the number of heart attacks decreased by 33% (Szabo, 2012) The law is making workplaces and establishments safer and taking the difficult ethical dilemmas out of HRs hands.

Conclusion

            From going through these different situations and articles you should take away a number of different ideas and themes.

·        Money should not influence you own personal set of ethics.

·        Some things that are legal are not always ethical.

·        You should not perform unethical behaviors for the possibility of a profit because the risk reward for it is not there.

·        Someone’s health and well-being does not have a price.

·        Ethical decisions are not easy, but look at the outcome and what the greater good is.

References

Nagourney, A. (2010, November 12). Las vegas casinos are a last bastion for smokers. The New York Times, pp. 19.

Pazniokas, M. (2009, April 26). State weighs ban on casino smoking. The New York Times, pp. 1.

Szabo, L., & Today, ,Usa. (2012, October 30). Smoking bans cut number of heart attacks, strokes; analysis shows positive impact on health -- and on health care costs. Usa Today, pp. 4A.

HRM Ethics in Intellectual Property

By Dan McCauley

Overview

            Human Resource Managers put into place many different ethical rules and guidelines. From time to time, people go outside of these set rules and guidelines to make money. There are multiple cases where intellectual property has been acquired or copied unethically and illegally. Some of these cases are in the court systems still and others are done deals. This topic is hard to decipher which are ethical and which are not. I will give a few examples with the facts and divulge the outcomes in the end. See which ones you think are obtained unethically.

            Intellectual property is an item or idea that gives you a distinct competitive advantage in the market. Copyrights or patents are ways to protect these ideas. They are filed with the government to legally protect you from someone using or stealing this property. For example, if you were to use a part of a copyrighted song for some presentation it is legal and ethical. Now if you were to download the whole song in its entirety for personal use it would be illegal. That is just an elementary description of what it is.

Case #1

            Nestle, the worlds biggest food company, has produced a machine that takes a capsule to simplify making an espresso. They call this machine the Nespresso machine and they produce many different flavored capsules to use for their machine. Nestle had obtained a patent for this machine. Another company comes in and starts to produce capsules that work for this machine (News, 2012). Ethically, is this something you are able to do as a company? Is this something that is legal to do as a company? Is it both or one of the two?

Case #2

            Apple revolutionized the smart phone with the invention of the iphone as well as other industries with the ipod and ipad. They created the swipe technology and how you zoom in and out. They hold dozens of patents regarding these different systems to operate a touch screen. Now, Samsung has used some of these technologies in their phones and tablet devices. This case is currently in the court system for patent infringement (Nation, 2013) They only use parts of the technology in their products which they obtained from research. The way it works is almost identical. Is this ethical on the part of Samsung? Should this be legal?

Case #3

            Myriad Genetics Inc. has a patent on BRCA1 and BRCA2, which are commonly known as the breast cancer genes. Currently they are the only ones who are able to research and experiment with these genes. They have handed out many “stop notices” to others who are researching and experimenting with them. They are creating over half a billion dollars in revenue every year from this research (Darnovsky, 2013).  Is something this important to humanity as a whole ethically something that you can patent? Should they legally be able to patent something like that?

Case #1 Breakdown

            The Nestle case flirts with the boundaries of unethical behavior. I personally wouldn’t recommend it because of the risk of litigation. The company went ahead and did produce the capsules for the Nespresso machine. They did go to a court case and it was deemed that they were legally able to do this. According to the court ruling, ‘‘since the buyer acquires the right to use the machine, there is no patent violation when he uses capsules of other producers'' (News, 2012). Therefore it was ethical and legal to produce this product for the fraction of the cost that Nestle does. It is something you would have to look closely into before proceeding though.

Case #2 Breakdown

            In the Apple case it seems to be ethical and legal because it is part of the whole. In this situation the individual parts are actually complete ideas and pieces of technology. Therefore, they are each individually patented and are stolen intellectual property. The case is still in the court of appeals but the initial ruling was patent infringement. Currently Samsung has to pay Apple roughly 599 Million dollars (Nation, 2013) Apple is pursuing a stop on Samsung products being made with this technology. Even though it seems to be borderline ethical and legal it turns out that this is stolen intellectual property.

Case #3 Breakdown

            The genome patent case has many things that are in the gray area. In theory it seems that you would be able to patent something like this. Ethically, it seems that anyone should have access to cells that they could produce to experiment on and research. Right now it is technically illegal and unethical to research and test these genomes. The only reason I say it is unethical is because it is illegal. “Several international organizations have taken up these questions, declaring the human genome part of the "commons" -- akin to the moon and the air we breathe. The Universal Declaration on the Human Genome and Human Rights, ratified by the U.N. General Assembly in 1998, states that the human genome "is the heritage of humanity" and "in its natural state shall not give rise to financial gains." In 1999, the Parliamentary Assembly of the Council of Europe declared that "neither plant-, animal- nor human-derived genes, cells, tissue or organs can be considered as inventions, nor be subject to monopolies granted by patents." The World Medical Assn., an umbrella for 84 national medical associations, states that "human genes must be seen as mankind's common heritage"” (Darnovsky, 2013). This case is in the court systems right now.

Conclusion

            There are many different ethical issues you must decipher if you are a human resources manager dealing with intellectual property. Some of them are clear cut while others are much more difficult. Hopefully if you come across something that seems to be ethical and legal make sure you do your research because there are many things that seem ethical and legal but are sometimes neither.

References

Cohen, R. (2006, October 8). Copyright wrongs. The New York Times, pp. 28.

Genetics,Marcy Darnovsky, Karuna Jaggar, Marcy Darnovsky is executive director of the Center for, & Society. (2013, April 12). Who should own DNA? all of us. Los Angeles Times, pp. 17.

News, B. (2012, August 17). Nestlé loses bid to block rival coffee capsules. The New York Times, pp. 7.

The Nation. (2013, March 4). Samsung's $1-billion payment to apple cut by $450M. The Nation (Thailand)

Ethics of Workplace Safety- Paula Tomkiel

Ethics of Workplace Safety

Paula Tomkiel

    On a daily basis, employers will consider the tradeoff between costs and safety. As a business decision, workplace safety has implications of expenses and time. Managers must understand the importance of work safety, and not view it as a sunk cost, but as an investment for a business.

    Dr. Jan Wachter, professor of Safety Sciences at Indiana University of Pennsylvania, feels very strongly that management adopt a stronger approach to workplace safety. He says that the greatest economic reason to support an ethics-based approach to safety management within a business is that prosperity generates an environment where continuing improvement and reduced risk are affordable.

    A safety strategy that focuses on workers will require moral conviction and professionalism, despite pressures from higher management to control increasing costs. Safety programs based on ethics is better for sustaining and managing future safety issues. We will consider what role safety plays in helping managers and leaders meet the demands of business strategy, financials, and operational performance.

    Businesses that develop a workplace safety priority will produce ethical outcomes such as justice, open communication, sensitivity towards others, organizational support, and management credibility. (Krause 2007) These principles of business culture will drive an organization toward profitability and sustainability.

    Managers must lead a culture that values safe behavior for the sake of ethics, and not for the purpose of regulatory compliance. Currently, three Department of Labor (DOL) agencies have responsibility for the administration and enforcement of the laws enacted to protect the safety and health of workers in America.

    Occupational Safety and Health Administration

• Safety and health conditions in most private industries are regulated by OSHA or OSHA-approved state systems.
• Employers subject to the OSH Act also have a general duty to provide work and a workplace free from recognized, serious hazards.

    Mine Safety and Health Administration

• Responsibility for administration and enforcement of the Mine Safety and Health Act of 1977, which protects the safety and health of workers employed in the nation's mines.

    The Fair Labor Standards Act

• Intended to protect the health and well being of youth in America.
• Contains minimum age restrictions for employment, restrictions on the times of day youth may work, and the jobs they may perform. (Department of Labor)

    Federal safety procedures help to minimize risk and control hazards. Any violations may bring serious consequences, such as fines and penalties and even loss of a business license. Ethical principles demand that employers do more to protect its workers, and go beyond required legal rules.

    It has been argued that managerial decisions can result in either harm or benefit to others, thus managers are ethically obliged to use their authority to create benefit rather than cause harm. But proper attention to workplace safety can result in improved morale, increased job satisfaction, and greater health for the organization as a whole. (Ariss 2003)

    Employees expect management to act responsibly and to put employee health and safety first, far above and well beyond any other concern of the business. In order to create a safe environment, employers can use the following techniques:

•       Set up a safety incentive program to motivate workers to comply with workplace safety        guidelines
•       Adopt a zero-tolerance policy on workplace violence and safety violations
•       Ongoing safety training for employees

    These techniques in the long run will bring savings of time, money, and injuries. For optimal effectiveness, managers should note necessary steps for workers operating in the workplace. These notes should be followed up by an analysis for improvement at future date. Companies should have safety programs blended into their business plans and cultures. The results of having integrated safety programs include fewer accidents, waste, and downtimes. (White 2006)

    A safer workplace has healthier workers, less costs, more efficiency, and overall, higher quality. Employers must go above and beyond of what is required and create a culture of care and respect for their valuable assets, employees.

Works Cited

Ariss, S. Employee involvement to improve safety in the workplace: An ethical imperative. (2003). American Journal of Business, 18(2).

Krause, T. The ethics of safety. (2007). EHS Today.

United States Department of Labor, Workplace safety & health. Retrieved from website: www.dol.gov

Wachter, J. (2011, June). Ethics- the absurd yet preferred approach to safety management, Professional Safety.

White, D. (2006). Playing it safe to increase profit. Retrieved from www.sbnonline.com

Ethics Involving Privacy Issues

Ethics Involving Privacy Issues Related to Job Recruitment,

Surveillance, and Employee Lifestyle Choices

Margaret Johnson

Privacy Issues

          Privacy issues at the workplace have become a major concern because employees are unaware what is actually considered private of theirs. As I elaborated before, there is misinterpretations of what is considered ethical when "invading" the privacy of another. In an earlier post, I spoke about privacy issues dealing with technology, mainly with surveillance, e-mail, and social media privacy. In this blog post, I will be discussing other major concerns that involve ethics like:

• Recruitment Process
• Surveillance (at the workplace, not through technology)
• Employee Lifestyle Choices

Recruitment Process

          When applying for a new job, what information is the potential new employer allowed to obtain from you? During a typical recruitment process, potential employees will have to disclose a lot about themselves. There are many different things a employer could ask for from an applicant:

v  Background Information

v  Fingerprinting

v  Drug/Medical Testing

          Although most applicants wouldn't blink an eye to give over their social security number for a background check, they may be more hesitant towards getting fingerprinted or having different drug or medical screenings. Depending on the job that a person is applying for, some of these items may seem farfetched for an employer to ask for. I would feel like it's unethical of someone to ask me to get fingerprinted or have an AIDS test, even if I didn't have anything to hide, for a normal office job.

          Since drug use around the nation has continued to grow, so does drug testing at the workplace. When compared to other employees, drug abusers will have 3 and 1/2 times as many accidents on the job, will be absent for a week or more 2 and 1/2 times as often, will file 5 times as many workman's compensation claims and cost employers 3 times as much in medical benefits. (Wall, 2011) According to this data, I believe employers are being ethical when they ask an applicant for a drug test prior to employment. It doesn't necessarily mean that they will not choose that applicant, but it will allow them to gain knowledge and prepare for liabilities down the road.

         

Surveillance

          Surveillance is another major topic in privacy issues. Is it ethical or unethical for an employer to monitor their employees at any given time? Although technology is a big aspect of surveillance, in this post, we're dealing more with the surveillance of employees persons in the workplace. This could include, but not limited to:

v  Use of surveillance cameras

v  Searches

v  Monitoring on/off the job

v  Access to employee records

          In a 2006 survey of US companies, it found that nearly 75% of them monitor worker communications and on-the-job activities. (Ball, 2010) Surveillance at work is a necessity of working life. Controversies arise when:

£  Employee monitoring goes beyond what is reasonably or necessary

Ø  Employers use intrusive monitoring to delve into the lives employees lead outside of work

£  When they demand exacting and precise information as to how employees use their time

£  When the application of monitoring compromises working practices and negatively affects existing levels of control, autonomy and trust (Ball, 2010)

         

          Surveillance of an employee off their job is becoming a growing concern. It is acknowledged that the Internet is largely responsible for an increase in employee monitoring in the last five years. (Ball, 2010) Now that social media sites like Facebook and Instragram are becoming more popular, it's easier for pictures and posts to be made aware and become an issue with your employer.

          There are reasons that employers will monitor their employees. I believe that it is ethical if they are doing so for the following reasons:

£  To maintain productivity and monitor resource use by employees

£  To protect corporate interests and trade secrets

£  To protect themselves against legal liabilities (Ball, 2010)

Employee Lifestyle Choices

          Employees have personal lives out of work, but what they do out of the job, should that be reflected on their current position? As stated above, social networking sites have made it easy to access an employee's personal life without even asking them. What an employer finds on these sites, or in person, should they be able to hold that against the employee and reprimanded them in some way?

          In an article from the New York Times, it states that in recent rulings, the National Labor Relations Board says workers have a right to discuss work conditions freely and without fear of retribution, whether it's at the office or on a social networking site. (Greenhouse, 2013) This means that regardless of what an employee may say on their own time, they shouldn't be fired or reprimanded because of it. This has also opened up doors that employee's shouldn't be punished for positing things that damage their own reputation.

Conclusion

          In conclusion, there are several gray areas when it comes to a person's privacy during and once they enter the workforce. Although we are entitled to our own privacy, most of those issues are overlooked when it comes to background checks, drug testing, and surveillance on the job. Depending on the line of work that you are in or the type of reputation you must uphold outside of your job, surveillance of your lifestyle choices may come into effect as well. All of these issues raise the question of whether or not it's ethical to pry into someone's personal life like that. Although in most cases it is legal for an employer to do so, it can still fall under the gray area of ethical. I believe that it depends on the job to determine how much privacy should be invaded of an employee.

Works Cited

Ball, Kristie. (2010). Workplace surveillance: an overview. Labor History, Vol. 51, No. 1, 87-  106. Retrieved from   http://www.tandfonline.com/doi/abs/10.1080/00236561003654776

Greenhouse, Steven. (2013, January 21). Even if It Enrages Your Boss, Social Net Speech Is           Protected. The New York Times. Retrieved from        http://www.nytimes.com/2013/01/22/technology/employers-social-media-policies-         come-under-regulatory-scrutiny.html?pagewanted=all&_r=1&

Wall, Patricia S. (2011). Drug Testing in the Workplace: An Update. Journal of Applied          Business Research, Vol. 8, No. 2, 127-132. Retrieved from           http://www.cluteonline.com/journals/index.php/JABR/article/view/6175/6253

Bullying in the Workplace

Bullying in the Workplace

Sali Yakoub

Overview

Bullying has become one major concern in the United States. Bullying can occur in school, homes, and even in the workplace.  In order stop bullying, management law enforcement has created a policy that could possibly help with bullying in the workplace. Bullies tend to be jealous of others, which can lead to high inefficiency in an organization. According to Davis, a manager in the law enforcement, he recommends "including bullying as a prohibited behavior in workplace violence policies. He added that every applicant should be interviewed with an eye to observing how they interact with people."

The people that are most targeted to bullying are the ones who are considered subordinates. People who have a low ranking status, in other words, an inferior position in comparison to those in higher positions at an organization are usually less knowledgeable about the company. Randall implies that one-third of people in the workplace are possibly subjected to some form of bullying in their lifetime.Bullying can have negative effects on employees as well as organizational performance if it is not handled accordingly and in a timely manner.Bullying can be either verbal or non-verbal. An example of verbal bullyingis an exclusion of someone from a group. An example of non-verbal bullying includes avoiding a handshake or eye contact with another person (Khan, Anas, Khan, Riad, 2012).

Bullying

Bullying can accrue from different types of pressure that workers go through in the workforce. Pressure can be caused by several factors. Some of these include meeting the target market profit through struggling economics times, the increase of work hours, and the manager's demand for high effectiveness on workers in terms of quality of production and high performance.Bullying tends to have negative side effects on the victim. Some of these effects could be mental, emotional, and or physical.

Many of the victims of bullying tend to always live in fear, which makes them unable to communicate with others at work. The victims tend to experience health problems some of these problems consist of anxiety and panic attacks, headaches, loss of appetite, and depression.  According to Khan, Anas, Khan, Riad "On many occasions, organizations attribute bullying to natural workplace behavior amongst competitive workers."

In addition to the health problems, bullying could also cause its victims to be stressed. The stress comes from not only being bullied, but also the victim thinking about when they will be bullied again, which causes them to live in fear, feeling unsafe and extremely insecure. Some factors that could lead someone to become abusive are readily accepting good position and perks while not accepting responsibility, failing to see the damage done to others, denying responsibility of bullying behavior, and incapable of behaving in any other way (Khan, Anas, Khan, Riad, 2012).

Ways of managing bullying in the Workplace

There are many ways for managers to prevent bullying from occurring in the workplace. Some of these ways according to Khan, Anas, Khan and Riad include:

 Education and training: It is always a terrific idea to educate workers about bullying in the workplace. All types of bullying such as aggression, violence, conflicts, and harassments should be incorporated in training programs to help offset bullying (Hannabuss, 1998). In addition to the training programs, corporations should be able to educate their employees about what is considered an appropriate behavior versus unacceptable behavior. According to Khan, Anas, Khan and Riad, respect, professionalism, communication and cooperation should be the central behavioral guidelines in the workplace.

Corporate Responsibilities: A corporation’s chief responsibility is hiring the perfect manager for the company. The perfect manager needs to be one who holds great leadership skills. Many corporations tend to hire candidates who have poor leadership skills, which can result in bullying. Managers with poor leaderships skills tend to believe they are a huge asset to the company and for that they have the authority to bully their coworkers in addition to achieving target goals. Several managers believe that "if you cannot stand the heat, get out of the kitchen" (Khan, Anas, Khan, Riad, 2012). Corporations should always keep an eye on their mangers and see if they have developed any bullying behaviors because by finding out at an early stage is a key step in preventing many future serious issues.

Having the Right Machinery: Many employees who have encountered bullying once in their lifetime do not know how to deal with such a situation. In order to help employees fight back bullying, an employee must be given the power as well as the proper training and in house mechanism to be taking effect to help deal with such a situation. There should be an effective handling process for complaints within the organization to ensure that victims of bullying have an effective machinery to address their grievance (Khan, Anas, Khan, Riad, 2012).

Support: The employers have a responsibility to ensure the safety of their employees. To do so, they need to set up a support system that helps employees who are being bullied. Employers should provide their staff with trained counselors to receive advice, in-house mediators, mentoring, and training employees to deal with relationship problems in effective ways (Khan, Anas, Khan, Riad, 2012). Another way the corporation can establish a support system is by giving employees the opportunity to do counseling, which would help in creating a healthy and happy work environment.

Drew and Paula came up with a list of "WHAT TO DO" if you have encountered bullying. These are the set of ideas that could be used to deal with bullying:

• Keep a journal of the bullying instances in which dates and times are included.
• Speak with other coworkers to find out if they are experiencing similar behavior.
• Write a memo if you feel you cannot confront the bully. Keep copies of anything said or written referring to your inability to do your job.
• Try to avoid being alone with the bully and try to get witnesses to incidents.
• Check any new responsibilities you are given with a copy of your job description.
• Consider speaking to your employer about the bullying and its effect on your ability to do your job.
• Do not retaliate because it may look as if you are the aggressor.
• Consider leaving the place of employment where the bullying occurs. Look at this decision as a positive move in your career.

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Citation

Khan, Anas; Khan, Riad, . "Understanding and managing workplace bullying." Industrial and Commercial Training. 44.2 (2012): 85-89. Web. 15 Apr. 2013. <http://search.proquest.com.huaryu.kl.oakland.edu/docview/923382315>.

Anonymous, . "Panel Addresses Legal, HR Perspectives on Workplace Bullying." HR Focus. 88.1 (2011): 5-6. Web. 15 Apr. 2013. <http://citationmachine.net/index2.php?reqstyleid=1&mode=form&reqsrcid=MLAJournal>.

Drew, Claudine Paula, . "Surviving bullying in the workplace." RDH. 4 (2013): 38,40,42,85. Web. 15 Apr. 2013. <http://search.proquest.com.huaryu.kl.oakland.edu/docview/1326413968>.

Ethics Hotlines

Ethics Hotlines

Kristin Clauw

Overview

Ethics policies are put into place in all companies to prevent behavior that can lead to white collar crimes. These actions can include fraud, bribery, harassment, discrimination, and theft. This list is definitely not exhaustive but it does include some of the most common issues Human Resources must handle. While every company has different needs when it comes to these types of policies it is becoming more and more common for ethics hotlines, or report channels, to be a standard. However, there is always a question of whether or not their benefits out way their possible downsides.  This query becomes even more important when the company is located outside the United States. Many times the answer falls not only into the hands of Human Resources but the employees as well.

Pros

Since companies like Enron have given light to such unethical corporations, directors, and employees it is becoming increasingly common for “whistle blowers” to be supported. Since 1990, Fortune 100 companies have increased their implementation of ethics hotlines from 6% up to 80% (Church, 2007). Creating this type of system for employees allows them to feel empowered, especially when their reports are followed through and used to correct behavior. This fosters a trusting environment between the employees and the hotline allowing for more honest and necessary reports. The key to doing this is for HR to promote the ethics policies and encourage respect. Once this has been done personnel will use the hotline to report situations internally instead of externally (Weaver, 2011). Along with stopping and diminishing the occurrence of ethical issues, this hindrance of company information being leaked to the public is a main reason these hotlines are put into place. If situations can be handled internally without having to make anything public knowledge it can save the company image and reputation. Depending on the issue at hand internal reporting can prevent lawsuits, loss of profits, loss of employees, and even termination of the company. 

Cons

When a situation results in reporting a co-worker or manager there is always some apprehension associated.  Probably the most common criticism of hotline is fear of retaliation from the “whistle blowers”. People are afraid that if they speak up they may lose their jobs, be denied a promotion, or be pushed out by co-workers (Church, 2007). Peer pressure is often one of the strongest motivators of people and this fear resonates from the school yard days of being called a tattle tale. Even still, it is understandable for employees to feel this way especially when ethics policies are not seen as entirely fair (Weaver, 2011).

Another issue arises with those that are not afraid to report. There are instances when workers choose to use the hotline unethically. For example, someone with a personal agenda of taking over a co-workers position, or simply wanting them gone, may call in accusing them of untrue or exaggerated actions. A question is then raised on whether the hotline serves a purpose or is only used by “snitches” or “whiners” (Church, 2007). One way to determine this would be by surveying employees. However, some companies struggle to get enough responses to make their efforts worthwhile (Church, 2007). Whether the cause is nostalgia, lack of education on the programs, or any other explanation without feedback there is not much a company can do to make changes. Therefore any current problems with the hotline or its efficiency are likely to remain. 

Cultural Limitations

In the United States ethics policies are required in every company and hotlines are “best practices”. However, this is most certainly not the case overseas. In some countries “whistle blowers” can face retaliation not only from co-workers or bosses but from the government as well. Places like Russia, India, the Middle East, Latin America, portions of Asia, and most of Africa fear this blowback so much they view these hotlines as a form of entrapment (Dowling, 2011). In addition to this inherent fear there are ever laws in place that prohibit “whistle blowing” activities or services (Dowling, 2011). The main reason for this extreme difference in policy is based on societal beliefs and practices. Not many nations have the privilege of freedom equivalent to that of the United States. While this imposes a barrier on many companies already or looking to become present overseas there have been moves to create some types of policies that satisfy both parties.  

Conclusion

In conclusion, there is a lot to consider when implementing an ethics hotline in any company. Their use is more widespread in larger more diverse businesses but is on the rise for smaller ones as well. Hotlines can provide a very useful tool for companies that wish to promote a high ethical vision. However, they must be taken seriously and employees should be thoroughly trained on their importance. This will hopefully diminish the amount of “whining” or “tattling” done on the lines and promote its use for the intended purpose. The tactic is used highly in the United States but overseas there is a lot of negative reaction. Many countries see this as a breach of privacy and have laws in place to prohibit it. However, American companies with expansions in other countries are slowly making the movement towards implementation. 

Bibliography

Church, A. H., Gallus, J. A., Desrosiers, E. I., & Waclawski, J. (2007). Speak-up all you whistle-blowers: An OD perspective on the impact of employee hotlines on organizational culture. Organization Development Journal, 25(4), P159-P167. Retrieved from http://search.proquest.com/docview/197994561?accountid=12924

Dowling, D. C., (2011). Global whistleblower hotline toolkit: How to launch and operate a legally-complaint international workplace report channel. International Lawyer, 45(4). Retrieved from http://go.galegroup.com/ps/i.do?action=interpret&id=GALE%7CA285532173&v=2.1&u=lom_oaklandu&it=r&p=LT&sw=w&authCount=1

Weaver, G. R., (2011). The role of human resources in ethics/compliance management: A fairness perspective. Human Resource Management Review, 11(1/2), P113. Retrieved from http://web.ebscohost.com/ehost/detail?sid=b17d76d5-c9f6-434c-8f38-a0c9b98efb53%40sessionmgr15&vid=1&hid=20&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=5201780

 

Managerial Ethics by Paula Tomkiel

   

     Managerial Ethics

Paula Tomkiel

   
     According to Milton Friedman, there is one and only one social responsibility of business. It is to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud (Friedman 1970).

     However, an organization’s role concerning social responsibility and its effects on society are being increasingly scrutinized. Most importantly, businesses must consider behaviors that its customers will and will not accept. The responsibility of an organization to promote the interests of a society as a whole, rather than its stakeholders, is the distinction between ethics and law. Put simply, law dictates what is required and ethics dictates what should be required.

     A conscientious manager with a morally responsible approach to business is one of the most valuable assets to an organization. The agent needs to regulate any situation regarding ethics, because law and government may not solely determine its outcome.

     Determining the legality judgment of an action is based on common law, regulations, and court decisions. These laws were created to protect individuals and their interests in society. They are requirements, and the government may use power to enforce them. The law mandates that organizations oblige to ethical policies such as employment law, federal regulations, and codes of ethics. If a manager is faced with a situation that contains ethical elements, it is suggested to consider whether the behavior or result complies with:

     • Applicable laws, regulations, and government codes

     • Organizational standards

     • Professional standards

     Legal and ethical behavior may not always be combined. What may be legal may not be ethical and vice versa. The preceding points illustrate that complying by the law does not always agree with ethical behavior. Managers must evaluate what is legal and what its stakeholders and society deems ethical as well. As a manager, establishing a set of ethical guidelines for detecting, resolving, and forestalling ethical breaches often prevents a company from getting into subsequent legal conflicts (Anstead 1996).

     The essence of ethics is doing the right thing, especially under difficult circumstances, and that involves being able to reason well about what the right thing to do actually is. To be able to make good decisions ethically, a manager needs to have thoughtfully developed his or her personal set of standards or values.   (Waddock 2012).

     The Ethics Resource Center’s 2011 National Business Ethics Survey (NBES) examined how leaders performed at ethical culture. The NBES indicates a decrease in confidence in managers’ and leaders’ ethical behavior and warns of a “looming ethics-downturn” in corporate America (O’Brien 2012). It is imperative that agents of an organization act ethically because any relentless pursuit of self-interest could lead to a collective disaster. The erosion of essential values leads to cynicism in society, and potentially violence and fatalism.

     The NBES recommends that ethical leadership be incorporated as a criterion in performance evaluations for managers. It also suggests that leaders communicate both their personal commitment to ethical conduct as well as how they link business integrity to their business strategy. After all, it is the manager that determines not just the values, ethics, honesty, but also profitability, which is dependent on the business’s customers.

     Ethical business practices contribute to the strategic strategies of an organization by enhancing overall corporate health in three important areas.

• Productivity of employees

• Positive public image that attracts customers

• Minimizing regulation from government agencies

     Successful and sustained businesses, at their cores, share a universal trait- they are focused on providing value to and sharing values with the societies in which they operate. The members of society that are directly involved with the companies are most often customers, employees, suppliers, and shareholders. Fundamentally, business is about creating value for stakeholders (Castellani 2007).

     Milton Friedman has a point that the only social responsibility of a business is to create a profit for its stakeholders. Nevertheless, it is the overall actions and behavior of the agents who represent the business that decide whether that certain business will last long enough to create those profits. Resilient ethics and their adherence in business builds and sustains public confidence in the marketplace.

Works Cited

Castellani, J. (2007). Shaping tomorrow’s business leaders: principles and practices for a model business ethics program. In Charlottesville: Business Roundtable Institute for Corporate Ethics.

O'Brien, G. (2012, February 28). Retrieved from http://business-ethics.com/2012/02/28/9027-managers-and-ethics-the-importance-of-tone-in-the-middle/

The New York Times Magazine, September 13, 1970. Copyright @ 1970 by The New York Times Company.

Waddock, Sandra. "Ethical Role of the Manager." Encyclopedia of Business Ethics and Society. Ed. . Thousand Oaks, CA: SAGE, 2007. 786-91. SAGE Reference Online. Web. 30 Jan. 2012.