becg unit 2 & 3

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    Ethical Issues related to employees

    # Master Servant relationship to Partnership# Job Security # Wages Need based and productivity related.# Salaries of managers Linked to responsibilities, performance

    Avoid too much disparities.# Relationship Between employers and employees Such as

    Treatment to employees, Favoritism, Communication,appreciation of meritorious achievements, Grievances/disputes, Indiscipline, Trade unions etc

    # Industrial legislation#Welfare of employees Health, Safety, Work ambience,

    Welfare measures.

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    Employee responsibilities:- Lead by example of good ethical conduct.- D ont show tolerance to improper actions. We cannot control

    others, but we can control how we react to other's conduct.- Support your bosss efforts to uphold ethical standards.- Be consistent and predictable.- Pay attention to details.- Seek clarifications when in doubt.- Avoid unethical traps of others.- Protect your key assets Good Health

    Strong self EsteemGood communicationYour integrity.

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    Employee Participation:Many authors have suggested that ideals of democracy should

    be embodied in business organizations.# D ecisions are made only after full, free and open discussionwith employees.Employees would be allowed to freely express criticism,receive accurate information about decisions that will effectthem, make suggestions and protest decisions.

    # Right to make decisions about their own immediate work activities.

    # Allow employees to participate in the major policy decisionsthat effects general operations of the firm.Exa. West Germany. Firms operated by 11 member board5 elected by investors, 5 by employees and 1 by these ten.

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    Employee Privacy: Right to Privacy defined as the right people have, to

    determine w hat, to w hom and ho w much information aboutthemselves shall be disclosed to others.

    With development of recent technologies the right to privacy

    has become particularly vulnerable # Usage of phones and computers can be legally monitored.# D uring investigations Employer can use Polygraph or

    Lie D etectors

    # Computerized methods of obtaining, storing, retrieving,collating, and communicating information about medicalrecords, credit histories, criminal and arrest histories, FBIinformation, employment histories.

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    # Genetic testing although not widely used, but it allows

    employers to test an employee for about 50 genetic traits

    that indicate that the employee is more likely to developcertain diseases, does effected by work place toxins andhazards.

    # Urine tests Indicates alcoholic, drug addiction and smoking# Written psychological tests, Personality inventory tests andhonesty tests can uncover wide range of personalcharacteristics and tendencies that most people would rather keep private such as level of honesty and sexual orientations.

    # Advances in Industrial Psychology demonstrated relationshipbetween employees private home life or personality and on thejob performance and productivity. Because of this employersare becoming more and more curious.

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    Tw o types of privacy:Psychological privacy regarding ones inner thoughts,plans, beliefs, values, feelings and wants.Physical Privacy regarding ones physical activities,particularly those that reveal ones inner life and those thatinvolve physical and personal functions that are culturally

    recognized as private.

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    T hen w hat is the ans w er ?Balancing both:Employer is justified in knowing job candidates past experiences and incase of pilferage or employee theft etc.How are these rights to be balanced against the right to privacy ?T hree elements must be considered 1) Relevance Employer must limit inquiry into the employee affairs tothose areas that are directly relevant to the issue.

    2) Consent Employees must be given opportunity to give or with holdtheir consent before their private aspects are investigated.3) Methods Employer must distinguish between the methods of investigation that are ordinary /reasonable and extraordinary.Ordinary methods include supervisory activities that are normally used tooversee employees work.Extraordinary methods include devices hidden microphones, secretcameras, wiretaps, lie detector tests, personality inventory tests and spies.

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    W orkplace Ethics

    * Health and safety at w ork place :- Systems to ensure accident free and safe w ork stations.- Systems to take care of health of the employees.

    * Discrimination atw

    ork place.- Gender- Faith- Color

    - Age- Language- Region etc.

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    Ethical Issues related to consumers

    # Importance Indifferent attitude to consumers, particularlyin sellers market.D ue to ethics and laws, the businesses are becoming moreconscious that all business activity should be consumer satisfaction and protection. Businesses have to identify andanticipate consumer demands, produce and distributeauthentic quality goods and provide services of right quality

    at reasonable price.

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    Reasons for change- Consumers are more sensitive to social and environmental

    needs.- Consumers are discontent and complain now as compared to

    past when they are ignored.- As there is competition, consumers have choice.

    - D ue to rise in education, consumers are aware of their rights.- Legislation on consumer protection, generated awareness

    about their rights and remedies available to them.

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    Approaches to consumer protection

    1) Self- regulation and self-discipline.2) State role is becoming more aggressive Legislature,

    executive and judiciary into enforcement of la w s. T his isimproving status of consumer.

    3) Consumers associations have been given status inla w s and they are playing active role.

    4) Consumer need to be alert W hen cheated, consumershould not say forget it

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    Consumer ProtectionT here are various la w s that protect consumers interest.

    1) T he Agricultural product (Grading and Marketing) Act,1937. Agmark Quality2) T he Bureau of Indian Standards Act, 1986. ISI mark.3) T he Cigarettes(Regulation, production, supply and

    distribution) Act,1975 Cigarette smoking is injuriousto health.

    4) T he drugs and cosmetic Act,1940 ensure that these itemsare of good quality and containers to have informationabout the contents.

    5)Drugs and Magic Remedies( ObjectionableAdvertisements) Act, 1954. Reg. V. D .s and SexualStimulants.

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    6) T he assential commodities Act, 1955 to regulate andcontrol of prices, supply and distribution.

    7) T he Hire Purchase Act, 1972 Essential Requirement of hire contract.8) Indian Penal Code ,1840 to check false weights andmeasures, adulteration of drugs etc9) T he prevention of black marketing and maintenance of

    supplies of essential commodities Act, 1980 to ensuresupply to consumers.10) Prevention of Food Adulteration Act, 1954.11) Standards of W eight and measures Act, 1976

    . Prohibits non - standard weights and measures

    . Controller of weights and measures to inspect.

    . D ate of package and quantity.

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    12) T he trade and merchandise Marks Act, 1958 . To provide for trade maks

    . To prevent fraudulent trade marks.13) T he W ater( Prevention and control of pollution) Act,1974

    to prohibit use of stream or well for disposal.14) T he Consumer Protection Act, 1986.- Three tier forums for

    redressal of grievances.D istrict( loss below 1 Lac), state( 1~ 10 lacs) and nationallevel.

    15) Concept of Lok Adalats for speedy and economic redressal

    of grivances. Also will provide free legal aid.

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    Impact of la w sT here are large number of la w s/orders/rules w hich teach the

    spirit of consumerism. But it has become w onderland of la w yers paradise and hardly fe w cases succeed in court.T here is no proper enforcement of la w s .Role of la w s to protect consumers has not been satisfactory.

    Consumer movement is w eak and business response is poor.

    Hope Indian consumer w ill w ake up and business responsew ill be strong.

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