Topic 3 (2) Workplace Ethics

TOPIC 3 (2)
WORKPLACE
ETHICS
Topic outcome
. Explain the following in relation to Workplace Ethics:
Employee rights
Privacy & dignity
Fair treatment
Health & safe workplace
Ability to exercise one’s conscience
Trust
Fraud & white collar crime

Bribery & facilitating payments
Crisis management
Workplace Ethics
 Actions can no longer satisfy the business owners’ interest only but also on
employees
 Workplace ethics changes because of
 Public sensitivity
 Stakeholder pressure on employer
 Regulators for better corporate behaviour
4
Employee rights
Rights of individual workers are worthy compare to the employer.
a) Employees cannot be fired based on emotional whim or personal bias
b) Employees cannot be hired based on or even questioned on family status,
religion, sexual preference
c) Sexual discrimination cases
d) Protection of employees by referring to legal statutes or regulations
Privacy & Dignity
To have privacy for workers at the work place and ensure worker’s dignity is
being protected against any issues such as harrassment
a) E.g. surveillance camera in the washroom
b) Notification and consent (where employees have time to deliberate, free choice,
adequate information)
c) Testing for substance abuse: drug and alcohol testing, computer games
d) Harrasment: improper behaviour that is offensive
e) Civil work environment: uncivil: shouting, slamming doors, throwing objects
Fair Treament
 Discrimination is the best example for having fair treatment among
employees. It is considered unethical and illegal if its involves age, race,
gender, and sexual preference.
 Therefore, workers are entitled for fair policies that protect their rights on
fairness.
 Others examples in on fair promotion, fair wages, and fair hours of working.
 People with disabilities are also required for fair treatment and this considered
as ethical.
Healthy & Safe Workplace
 When having the fair treatment among workers, there will be a
need of having a health & safety environment.
 Employer cannot compromised this matter because it is unethical
if there is no health & safety concern towards employees.
 Employerneed to identify potential risks that may effected the
employee safety & health within the company
Ability to exercise one’s conscience
 Argument that a worker just did what he or she ordered to do
(blind loyalty) which not provide with protection in many
jurisdictions
 They prefer to bring forward their concerns and speak out
against any unethical issues
 Whistle-blowing is a policies that may protect the
workers/person blow the whistle from any harmful act or action
from employer.
 This is to encourage blowers to come forward within
organisation, rather than outside company.
Trust
 Relationship between manager & employee in the organization.
 To have a sufficient trust between both parties to share ideas without fear of
losing jobs to build loyalty & hardwork.
 To maintain trust among workers, the management need to be prepared to
make trustable committments or to provide fair treatment arrangement.
 Maintaining benefits could be an example in maintaining workers’ trust
PYQ: June 2018; Part B; Q2
Harassment at Workplace
11
Daisy, is a newly hired staff in the Production Department of a medium-sized company.

As the first woman selected for this production training position, Daisy takes her work
very seriously. In the first two months, she performs her duties very well. However
lately, her boss, Mr. Johny, has noticed a change in Daisy. She seems to be more
tense and uneasy. At times she even does not concentrate on her work as
conscientiously as she previously does.
Daisy is actually in dilemma with the problem she is facing at workplace. She has
been continually harassed by Eddie, a co-worker. At first, she tries ignoring his jokes
and sexual banter. However, his persistence has caused Daisy to have very
uncomfortable feelings with such treatments. Daisy looks into the employee’s
handbook concerning harassment policies and finds none. She really does not know
what to do.
Finally, after noticing Daisy was continually declining work, Mr. Johny asked her what
was bothering her. She tells him the problem and shows him information concerning
the laws dealing with harassment in the workplace. She also says that she is
considering taking action against Eddie if his actions continue. Mr. Johny feels bad as
he is totally unaware of the problem, but agrees that something should be done.
(Arthur Andersen & Co’s Case Study)

PYQ: June 2018; Part B; Q2
Required: 12
a) With reference to the above case, define your understanding on

harassment at workplace.
(4 marks)
b) In relation to the above case, outline the appropriate type of justice to be

given to Eddie, the harasser.
(4 marks)
c) With reference to the last sentence as per the above case, explain briefly
Mr. Johny’s action based on the fundamental interests of stakeholders; Well-
offness, Fairness and Right.
(6 marks)
d) Discuss three (3) ways on how a firm can ensure that it does not engage in
sexual harassment at the workplace.
(6 marks)
(Total: 20 marks)
Fraud & White Collar Crime
 Executive (white collar) need to ensure all reasonable steps to guide,
influence and control employee.
 Fraud incurred among white collar which have their own motive and interest
within the organisation.
 3 elements of fraud triangle:
1. Motive refers to need (financial or non-financial)
2. Opportunity is due to poor internal control or culture
3. Rationalize is about the thinking positive about fraudulent act.
The Fraud Triangle 14
Motive:
Greed, Ego, Status, etc
Rationalisation: Opportunity:
7 basic rationales Usual focus of risk management
15
Bribery & Facilitating Payments
 Facilitating payments is usually a nominal in value made to speed up a
result that would have happened anyway with given enough time.
 Bribe is usually larger than nominal, and without it, the desired result would
not occur.
 Both types of payment may be illegal which are a problematic for reasons
other than illegality such as increase in cost of operation, undermining
practice of purchasing, risk of having negative consequences from
stakeholders group.
 All companies need to have a bribery & facilitating payment policies rather
than the employee make the payment.
Crisis Management
 A crisis has the potential to have significant impact towards reputation/image
of the company, employees, and also might impair the organization’s
objectives.
 If ethical behaviour is considered to be a great importance by a corporation in
its normal activities, ethical considerations should be more important in crisis
situations.
 Fundamental proper management of a crisis is an understanding on the phases
of crisis:
 Pre-Crisis,
 Uncontrolled,
 Controlled and
 Reputation Restoration

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TOPIC 3 (2)

Fraud & white collar crime

Daisy, is a newly hired staff in the Production Department of a medium-sized company.

(Arthur Andersen & Co’s Case Study)

a) With reference to the above case, define your understanding on

b) In relation to the above case, outline the appropriate type of justice to be

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