CORPORATE POWER AND LEGITIMACY IN BUSINESS

CORPORATE POWER AND LEGITIMACY- the Concept of Power in Business Max Weber:
defined power as The probability that one actor within a social relationship will be in a position
to carry out his own will despite resistance .The potential ability to influence behaviour, to
change the course of events, to overcome resistance, and to get people to do things that they
would not otherwise do." Power is the force or strength to act.

BUSINESS POWER is the force behind an act by a company, industry, or sector. Its primary
source is a grant of authority from society, stemming from the social contract, to convert
resources efficiently into needed goods and services. It is legitimate when it is exercised
rightfully, or in keeping with the social contract.

The concept of power needs to be distinguished from authority and influence.

Authority is the right to direct others and ask them to do things which they would not
otherwise do, but it is legitimate and is exercised in the working of organizations.
Authority is different from power because of its legitimacy and acceptance in an
organizational context.
Influence is conceived as much broader and it is the ability to alter actions of other
people in general ways by changing their satisfaction criteria and thus improve their
performance. Leadership is broader than power and indicates a willingness on the part
of the follower to follow in the absence of authority.
Corporations have tremendous power of to change society through their actions. Corporate
power has an impact on society at two levels. On the surface level it is the direct cause of
visible, immediate changes. On the deeper level it shapes society over time through the
aggregate, indirect, and unforeseen changes of industrial growth.
Corporate power is exercised in seven spheres corresponding to the key business
environments described in earlier here power over individuals is included in place of the internal
environment.
1. Economic power comes from the use of property and resources to influence events
and people.
2. Technological power influences the direction, rate, characteristics, and
consequences of innovations.
3 Political Power is the ability to influence governments.
4 Legal Power is the ability to shape laws and regulations.
5 Cultural Power is influence over values, habits, and institutions.
6 Environmental Power is the impact of a company on nature.
7 Power over individuals is exercised over employees, managers, stockholders,
consumers, and citizens.

SEXUAL HARASSMENT
Why does sexual harassment occur?
Sexual harassment occurred in a demeaning practice, one that constitutes a profound affront
to the dignity of the employees forced to endure it. By requiring an employee to contend with
unwelcome sexual actions or explicit sexual demands, sexual harassment in the workplace

attacks the dignity and self-respect of the victim both as an employee and as a human being.
Sexual harassment is well defined as an unwelcome sexual request for sexual favours and
other verbal or physical conduct of a sexual nature. In many countries, sexual harassment is
considered a form of sexual abuse and employment discrimination.

Sexual Harassment causes confusion and uncertainty which interferes with a productive
working environment. Sexual harassment interferes with individuals work performance or
creates an intimidating, hostile or offensive work environment results in poor performance and
lack of motivation. Policies and facts Organizations should have a policy that will not cause any
confusion. Men and women were using the same word to describe different behaviours may
contribute to the continued existence of sexual harassment.

Types of Sexual Harassment

A. Requirements of Sexual Harassment
1. Concept of unwelcome conduct
2. Sexual nature of conduct
B. Claims of Harassment
1. Quid quo pro
2. Hostile environment

THE PROBLEM OF JUST WAGE AND UNFAIR COMPENSATION

Just Wage/ Fair Wage are defined as that remuneration which is enough to support the wageearner in reasonable and frugal comfort, a just wage is the legitimate fruit of labour.

Unfair Compensation
Philippine Constitution and Republic Act 6727 (The workers are entitled to a living
wage).
The Wage Rationalization Act declared the policy of the State to rationalize the fixing of
minimum wages and to promote productivity-improvement and gain-sharing scheme to ensure a
decent standard of living for the workers and their families.

Factors to Consider in the Formulation of Fair Wages

1. External Market Factors Refers to the supply and demand for labour and so called
economic conditions and underemployment.
2. Laws and Regulation Workers should be paid in accordance with laws and regulations
issued by the government. It requires that employers pay at least the minimum wage.
3. Cost of Living The cost of living relates to basic maintenance needs and it must be
seriously considered in the formulation of wages.
4. Prevailing Industry Rate Some claim that paying workers the average of what other
companies are paying for the same job results in a fair wage.
5. Job Factors The nature of the job itself entails the formulation of a just wage. Duties,
responsibilities, and the skill requirements of the job are probably the most considerable
determinants of fair wage.
6. Individual Performances The trend suggests that individual performances or productivity
ratings affect the determination of wage/salary increases.

Unjust dismissal

Unjust Dismissal is based on contract law. Any claim for Unjust Dismissal will therefore mean
looking at the employee's employment contract to see if the employer has broken the contract.
The most common breach is where the employee is dismissed without notice or the notice
given is too short. Obviously either party can end the employment relationship if they give the
necessary notice. This will either be the legal minimum or what is stated in the employee's
contract.
The employer can justify dismissing the employee without notice if the employee commits a
serious breach of the contract, for example theft. The employer does not have to have proof of
the theft, suspicion is enough. The employer can also rely on evidence that is only found after
the dismissal.
Another example of Unjust Dismissal is a failure by the employer to follow a contractual
disciplinary procedure.
Unjust Dismissal claims can be brought in the Employment Tribunal, County Court or High Court
depending on the value of the claim.

Developing Good Work Ethics under Good Governance

And Corporate Responsibility
Good Governance is decisive because it helps to build enduring corporate governance
processes that thrive even in the most difficult of circumstances. It is the rock upon which ethical
businesses stand and ethics is the tower of strength which intrinsically police the behaviour of
every leader including those in key positions. Business ethics must be embedded in business
strategy and embedding ethics in strategy goes beyond merely mentioning ethics in the
corporate governance policy document.
Corporate responsibility (CSR) means social responsibility of corporate sector, which also
means response of the corporate sector towards society. A company concern and commitment
towards society sustainability and development. CSR is the ethical behaviour of company
towards society. An idea where by companies integrate economic, social and environmental
concerns in their business operation.
MARA JAINA C. DE GUZMAN
BSA-II