Workplace Ethics

1. Workplace Ethics • Workplace Ethics • Privacy & dignity: testing, harassment • Conscience: conflicts of Interest, blind loyalty, whistle blowing downsizing, operations • Fairness: discrimination, QWL, resp. to family + • Importance of Trust Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

2. Workplace Ethics A balance of employee and employer rights Cases you have heard of involving: • Trust … • Respect … • Fairness … • Duty … • . Are workplace ethics important? Why? Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

3. Privacy Fairness Health Conscience Influenced by…. Statutes, regulations Common law Dignity Fair pay Safety Free speech Culture Union contracts Corp. Policies Employee Rights Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

4. Privacy & Dignity Issues • When should employer’s rights supercede employee’s • Legitimate interest, reasonable, morally acceptable • Notification & consent • Does notification: • Justify monitoring? Imply consent? • Informed consent requires: • Deliberation, free choice Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

5. Testing • How accurate to be justified? • Depends on decision to be made • To assist, confirm, or use alone • Reliability • How can dignity be maintained? • Confidentiality, retest, advance notification • Testing programs: TD Bank, Imperial Oil • Trucker computer game tests Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

6. Harassment • Any improper behaviour directed at you that you find offensive, and that the other person knew or ought to have known would be unwelcome. Treas. Bd. Of can. • How should a manager deal with it? Insure? • How should a company guard against it? • Older man, response - Travelling Salesperson • Is sex addiction a disease? Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

7. Other Conscience Issues • Conflicts of Interest– last class • Blind loyaltyis passé • Whistleblowing GE case - $70 million • Culture discourages • Ethical heroes: • 60% fired,17% lost homes,10% attempted suicide • Encouragement • Trust, hotlines, ombudspersons, awareness + • Protection • Anonymity, fair hearing process, board committees, statutory protection Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

8. Downsize or Bonus Allocation Decisions Who would you downsize from insurance claims dept.? Name SalaryServicePerformance Personal John 84,000 5 Acceptable, Married, misses deadlines many dependents Gord 72,000 2 Outstanding, Single, no dependents pushy, suggestions Jane 68,000 8 Consistent, Married to successful excellent, architect dependable Ralph 86,000 15 Acceptable, Married, 2 children in plodder university Hilary 64,000 6 Acceptable, Single, dependable, costly mistakes chronically ill mother Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

9. Downsize or Bonus Allocation Decisions Lessons learned… • Moral Imagination • Signaling of values • . • . • . Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

10. Research on Downsizing • According to Watson Wyatt • doesn’t achieve goals - profits, cost reductions • doing it right involves: • procedural justice, planning, communication, involvement • alternatives to downsizing • sharing jobs, 40/30 • reduce contracting out • redeployment • freeze hiring • paradigm shift: healthy continuous change Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

11. Operations/Conscience Issues • Responsibility for those downsized and their families • Operations - contingent workforces • Adaptability • Short term contracts • Benefits? • Managing their ethics Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

12. Fairness Issues • Discrimination: forms • Age, gender, sex, employment, pay • Race (Texaco’s jelly beans) • Does equal treatment mean the same for all? • Fair policies Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

13. Discrimination Cases?? • Over Forty • The Retirement Fund • The High School Teacher • Raising the Ante • Other Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

14. Texaco’s Jelly Beans Case Whistleblower tapes…$300 million fine+pay…: • What permitted such racial discrimination to occur at Texaco? • How could the discrimination have been prevented? • Is whistle-blowing ethical? • Could a protected whistle-blowing mechanism or conscientious ombudsperson have helped? • Other issues: Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

15. Trust • Importance of Trust • Research shows it to be the key to: • Leadership • Innovation • Loyalty • Performance • Trust depends on Respect…Values… Ethics Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003

16. Business Ethics Value Chain STAKEHOLDER SCREEN ACHEIVEMENT OF STRATEGIC OBJECTIVES CORPORATION GO Customers Employees Capital Markets Current: Shareholders Lenders Environmentalists Host Communities Governments NGOs INFLUENCES Governance Mechanism ACTIONS Primary CAUTION Formulation of Strategic Objectives Other BEHAVIOUR STOP DETERMINANTS OF VALUE…Success = f(Trust + Respect) CORPORATE CULTURE ETHICS PROGRAM &CODE TOP MANAGEMENT SUPPORT STAKEHOLDER SYNERGIES CHARACTER GLOBAL MEDIA PERCEPTION OF: TRUST RESPECT RELATIVE IMPACT RELATIVE SALIENCE LOCAL CULTURE Prof. Len Brooks, Rotman School of Management, University of Toronto, 2003