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Post-Bac
3

Lecture 6

Ethics in International Business

Civil liberties

  • Trend away from the "employment at will"
  • Multinational businesses may have a responsibility to guarantee employee rights even in countries where they are not required to by law
  • Companies that look beyond the bottom line in order to respect employee rights and ensure a fair workplace tend to outperform others

Personnel policies

  • Have a huge impact on the lives and wellbeing of employees
  • Have moral concerns surrounding hiring, promotions, firing, disciplinary and wage policies
  • Fair policies = critireria that are : clear, job related and applied equaly

Hiring : screening

  • pooling and ranking, getting it wrong undermines effective recruitment and invites injustice, getting it right involves complete and accurate job description and specification
  • Wrongful discrimination occurs when candidates or employees receive preferential treatement on ground that are not directly related to their qualifications and performance

Hiring : testing

  • Tests that lack validity or reliability are unfair
  • Tests may also be unfair if they are culturally biased or skills measured are not related to job performance

Hiring : interviews

  • Interviewers should free themselves from unconscious biases, stereotypes and preconceptions
  • and treat candidates respectfully

Promotions

  • What is a fair promotions policy ?
  • Seniority - but what about talent and performance ?
  • Inbreeding - but why prioritize insiders ?
  • Finding a balance between regarding loyalty and merit raises challenging moral issues
  • Nepotism is the practice of showing favouritism to relatives and close friends (can also affect hiring, wages)
  • Perhaps not always morally problematic (in e.g. family business) but may affect managerial responsibilities, hurt morale, create resentment, or result in unfair treatment of other employees

Discipline and Discharge

  • Two basic principles in the fair handling of disciplinary issues :
  • Just cause requires that the reasons for disciplines and discharge relate to job performance
  • Due process refers to the fairness of procedures used to impose sanctions on employees
  • Employers have the right to fire employees who perform inadequately (but should provide warning)

Wages

What is a fair wage ?

  • Law
  • Industry
  • Community wage level
  • Nature of the job
  • Secure ?
  • Employer's financial capabilities
  • Two other aspects :
  • Employee's job performance
  • Fairness of the wage agreement

Arguments :

  • Utilitarian argument : overall happiness
  • Ethics of duty : respect of autonomy
  • Virtue ethics : what type of employer do you want to be ?


Employer Privacy

  • Employee privacy refers to the employee’s ability to control information about themselves and the circumstances under which that information is shared, both inside and outside the workplace
  • Organizational influence in our private lives
  • Workplace surveillance
  • Informed consent
  • When businesses seek private information about their employees, they should obtain informed consent
  • The notion of informed consent implies deliberation and free choice
  • Deliberation : employees must be provided all key facts concerning the information gathering procedure and understand its consequences
  • Free choice : the decision to participate must be voluntary and un-coerced


Working conditions

  • Employers have a moral obligations not to expose workers to needless risks
  • But not responsible for all workplace accdents caused by workers' negligence
  • Voluntary assumption of risk implies informed consent
  • Employees have a moral right to refuse dangerous work

Duty to avoid harm

  • According to some business ethical thinkers, multinationals have a duty to promote minimally just social and political institutions where they operate if these do not exist
  • This, they say, is because businesses have duty to avoid harm