EIB 7 Ch. 10, 11

22 flashcards · Other · by Daniel F.

Employment Contract
foundation of the employer-employee relationship, outlining reciprocal obligations and expectations
Agent-Principal Relationship between employer and employee
Employees have a duty to act in the best interests of their employer when acting on its behalf
Loyalty as moral concept
generally accepted moral concept, but its extent and limits are debated Prima Facie Obligation Employers must earn and maintain employee loyalty through fair treatment and respect
Conflicts of Interest in the workplace
When an employee's personal interests interfere with their ability to fulfill their job duties and act in the best interests of the organization Conflicts of interest can lead to biased decision-making and harm the organization, even when no intentional wrongdoing occurs Transparency and clear policies are essential for addressing conflicts of interest, but disclosure alone may not eliminate the problem
Insider Trading
Definition: Buying or selling stocks based on nonpublic information that is likely to affect their price. Moral Concerns: Insider trading is unfair, harms other investors, and undermines market integrity. Misappropriation Theory: Extends insider trading liability to individuals who misuse confidential information, even if they are not company insiders. Conflicting Perspectives: Some argue that insider trading promotes market efficiency, while others emphasize its ethical drawbacks and damage to…
Trade Secrets
Confidential information that gives a company a competitive advantage protected by state laws and the Economic Espionage Act
Non-Compete Agreements
Contracts restricting employees from working for competitors, but their enforceability and ethical implications are debated
Ethical Concerns of Employees Joining Competitors
Balancing the employer's right to protect trade secrets with the employee's right to seek employment elsewhere non-competes
Bribes vs kickbacks
Bribery: Offering or accepting something of value to induce someone to violate their duties. Kickbacks: Percentage payments to individuals who can influence business decisions.
Foreign Corrupt Practices Act (FCPA) and pros and cons
Prohibits U.S. companies from engaging in bribery overseas Arguments Against the FCPA: Competitive Disadvantage: Critics argue that the FCPA puts U.S. firms at a disadvantage compared to foreign competitors. Cultural Relativism: Some claim that bribery is acceptable in other cultures. Arguments for the FCPA: Harm to Individuals, Companies, and Governments: Bribery undermines fairness, distorts markets, and corrupts institutions. Global Anti-Bribery Efforts: Many countries have adopted similar l…
Ethics of accepting a gift
Gifts and entertainment are intended as gestures of goodwill, without a quid pro quo Ethical Considerations: Value of the gift. Purpose of the gift. Circumstances of giving or receiving. Position and authority of the recipient. Accepted business practices. Company policy. Legal restrictions.
Whistle-Blowing
Definition: Informing the public about illegal or immoral behavior within an organization. Motivations: Often driven by a sense of professional responsibility, moral duty, or concern for the public good. Justification: Appropriate moral motive. Exhaustion of internal channels. Compelling evidence of wrongdoing. Careful analysis of the danger. Likelihood of success. Moral Considerations: Whistle-blowing can be disruptive and risky, but may be necessary to prevent harm or expose wrongdoing.
Balancing Prudential and Moral Reasons
Weighing personal interests against ethical obligations Legitimacy of Self-Interest: Prudential concerns can be valid, especially when the wrongdoing is minor and the personal risks are high. Moral Limits: Morality does not require excessive self-sacrifice, but serious harm to others should outweigh personal interests. Encouraging Moral Action: Society has an interest in protecting whistle-blowers and creating environments where ethical behavior is rewarded.
Protecting whistle blowers
Sarbanes-Oxley Act: Provides legal protection for employees who report securities fraud. Corporate Culture: Companies should foster a culture of ethical conduct and encourage internal reporting of wrongdoing. Whistle-Blowing Policies: Organizations should establish clear procedures for reporting concerns, protecting whistle-blowers from retaliation, and conducting fair investigations.
Job Discrimination
Making adverse employment decisions based on group membership rather than individual merit, often stemming from prejudice, stereotypes, or assumptions of inferiority
Forms of job discrimination
Individual: Intentional or unintentional bias by individuals. Institutional: Explicit or implicit discriminatory policies, practices, or procedures within organizations. Disparate Treatment: Treating individuals differently based on protected characteristics. Disparate Impact: Neutral policies that disproportionately harm members of protected groups.
Moral Arguments Against Discrimination
Utilitarianism: Harms overall well-being and social harmony. Kantianism: Fails to respect individuals as ends in themselves. Rights-Based: Violates basic moral rights and equality. Justice: Denies equal opportunity and fair treatment.
Statistical Evidence of discrimination
Racial Disparities: Minorities face higher poverty rates, lower median incomes, and greater unemployment. Occupational Segregation: Minorities are concentrated in low-paying, low-prestige jobs. Gender Pay Gap: Women earn less than men, even in comparable positions. Lack of Representation in Leadership: Few women and minorities hold top executive positions.
Attitudinal Evidence of discrimination
Pervasive biases against women and minorities influence employment decisions. Women and minorities often feel pressured to conform to dominant cultural norms (white men)
Affirmative Action pro and contra
Arguments For: Compensatory Justice: Addressing past wrongs and providing redress for historical discrimination. Fairer Competition: Leveling the playing field and accounting for disadvantages faced by minorities and women. Breaking the Cycle of Inequality: Promoting upward mobility and diversifying workplaces. Arguments Against: Reverse Discrimination: Claiming that affirmative action unfairly harms white men. Violation of Equality: Arguing that treating people differently based on race or sex…
Comparable Worth and pros and cons
Paying women and men equally for jobs requiring comparable skill, effort, and responsibility, even if the jobs are different Arguments For: Addressing Gender-Based Pay Inequity: Correcting for historical undervaluation of "women's work." Fairness and Justice: Ensuring equal pay for work of equal value. Arguments Against: Free Market Determination: Believing that market forces should determine wages. Voluntary Occupational Choices: Claiming that women freely choose lower-paying jobs. Implementat…
Sexual Harassment and types
Unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that creates a hostile work environment or is used as a basis for employment decisions Types: Quid Pro Quo: Making employment conditional on sexual favors. Hostile Work Environment: Creating an intimidating, offensive, or abusive atmosphere. Legal Status: Sexual harassment is a form of sex discrimination and is illegal under Title VII of the Civil Rights Act