Business Ethics (Busn302A)

Ethical Issues and Problems in Business and the Corporate World

Submitted by: Baldecaas, Jobelle Rosean P. Pamugas, Annie Louiseq Sabellano, Maan Joy Gura, Glenn Louise AT34 Wednesday 6:00-9:00PM CB328

Submitted to: Fr. Ben Roquero

A. Sexual Harassment
Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when:

Submission to such conduct is made either explicitly or implicitly a term or

condition of an individual's employment, or

Submission to or rejection of such conduct by an individual is used as a basis for

employment decisions affecting such individual, or

Such conduct has the purpose or effect of unreasonably interfering with an

individual's work performance or creating an intimidating, hostile, or offensive working environment. Any unwanted sexual attention that is explicitly made a condition for favorable decisions affecting one's employment or school standing, or that which creates an intimidating, hostile or offensive environment in the school or in the workplace. It is usually manifested verbally or through physical contact.

Verbal harassment may consist of lewd comments or remarks, offensive jokes, or

outright propositions.

Physical harassment may range from a glance, a wink, leering, kissing, brushing
up against the person intentionally, pinching and touching, to rape or attempted rape.

The use of objects and/or pictures to harass the victim is also another form of

sexual harassment. Work, education or training-related sexual harassment is committed by the employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who have authority, influence or moral ascendancy over the victim in a work or training or education environment, and demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of said act. Two categories of sexual harassment: Sexual Coercion- A type of harassment which has direct results consequence to the victims employment. It has employment discrimination. It is under a condition of employment where an openly or implicitly offer in keeping a job getting a promotion is made by a supervisor to an employee in exchange for sexual favors. Such person normally has the power over promotion or raise of the employee. In sexual coercion, promotion and favorable job benefits will follow if an employee takes advantage and consented to sex. On the contrary, if the employee rejects, the job benefits are denied. Republic Act No. 7877 : Anti-Sexual Harassment Act of 1995

An act declaring Sexual Harassment is unlawful in the employment, education or training environment, and for other purposes. Employers duty under the Anti-Sexual Harassment Act: The Law requires the employers or the head of the covered institutions to prevent or deter the commission of acts of sexual harassment to provide for procedures for resolution, settlement or prosecution of acts of sexual harassment. They are required to: 1. Promulgate appropriate rules and regulations in consultation with and jointly approved by the employees or students or trainees, through their duly designated representatives, prescribing the procedure for the investigation of sexual harassment cases and the administrative sanctions therefore. 2. Create a committee on decorum and investigation of cases on sexual harassment, composed of at least one representative each from the management, the union, if any, the employees from the supervisory rank, and from the rank and file employees. 3. Disseminate or post a copy of the law for the information of all concerned. Years back, a client asked me to prepare an initial draft of the rules and regulations, and I was quite surprised that many employers have not yet complied with these requirements despite the fact that the law was passed way back in 1995. Sexual harassment is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of the act. (a) In a work-related or employment environment, sexual harassment is committed when: (1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment of said individual, or in granting said individual favorable compensation, terms, conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee; 2) The above acts would impair the employees rights or privileges under existing labor laws; or (3) The above acts would result in an intimidating, hostile, or offensive environment for the employee. (b) In an education or training environment, sexual harassment is committed:

(1) Against one who is under the care, custody or supervision of the offender? (2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender; (3) When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other benefits, privileges or considerations; or (4) When the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice. The crime of sexual harassment is punishable by imprisonment of not less than 1 month or more than 6 months, and/or a fine of not less than P10, 000.00 or more than P20, 000.00.

B. The Problem of Just Wage DEFINITION:

A just wage as defined by the Catholic Church is the legitimate fruit of work. It is a remuneration that is enough to support the wage-earner in reasonable and frugal comfort. HISTORY: No objective standard or set of principles by which to determine a just or fair wage has been worked out for the modern period. In medieval times, the problem was regarded as simple. A just wage or price for the product of the laborer was considered as that which would enable him to maintain his family according to the standards of his social class. His social status and standards of life were rigidly prescribed by social custom. With the advent of the Industrial Revolution, the democratic movement and the Classical Economists, the medieval standard of wages was replaced by the laissez faire theory. Free competition, demand and supply, it was argued, would automatically solve the problem and every man would get what his services were worth. But this classical theory postulated a condition of free and equal competition in which the bargaining power of the various agents of production is affected only by the existing conditions of supply and demand. The modern situation is more accurately described by the theory that wages are determined within certain limits by the relative bargaining power of parties to the wage contract. Catholic social teaching has always acknowledged the problem of the shortage of purchasing power among the mass of workers; the Church therefore commands that the worker be paid a "just wage", defined as not only the amount necessary to

support a worker and his family, but also enough surplus to allow a man to acquire some capital of his own (Rerum Novarum, 63). Just wage vs. Just Income: The question of the just wage would become less relevant; any diminution in the wage would add directly to the reward of capital, and therefore the income of the worker, if not the wage, would be maintained. The employer would be free to seek a market price for labor, while the workers income would be maintained at a just level. Further, this just income would also provide the purchasing power required to stabilize the economy. The problem of the just wage is therefore addressed not by interfering with the market, but by using market mechanisms to more adequately distribute the rewards. We therefore replace the concept of just wage with the just income. This solution is already implicit in Catholic teaching. The popes everywhere indicate that the solution involves allowing the worker to acquire some capital of his own, in amounts sufficient to ensure his financial stability.

C. Gift-Giving and Bribery

What are gifts and bribes?

A gift is something of value given without the expectation of return; a

bribe is the same thing given in the hope of influence or benefit.

Because it is often impossible to determine the expectation of the giver,

all federal, state, and local officials, both elected and appointed, are governed by rules restricting gifts.

In some cases, gifts over a certain amount are disallowed; in others, they
must simply report. These rules can vary significantly from locality, indicating disparities in each legislatures understanding of when a gift becomes a bribe.

Government officials should remember this old saying, Theres no such

thing as a free lunch, or even a free pencil.

QUESTION: Why does the developer go to the trouble and expense of

making these items? ANSWER: It doesnt influence me at all. Theyre not going to buy my soul with a laser pointer. What do gifts and bribes have to do with ethics?

 Political decisions are supposed to be made on the merits of the case, not
based on whether or not the decision maker has received a lovely case of wine from one of the parties.

This is a simple matter of fairness. When decision makers take gifts, even

if their votes are not influenced, they give the appearance of being on the take, which undermines public confidence in government. What ethical dilemmas do gifts and bribes present?

People

do not go into government work to make a lot of money. Especially at the local level, elected officials may receive only token payment for the number of hours they put into the job. sporting arena are well-deserved perks of office. Some even argue that attending such events is part of the job and crucial to understanding the experience of citizens who use these venues.

It is tempting to say that tickets to the local performing arts center or On the other side, such gifts may well influence officials when they need
to determine whether the performing arts center should expand or whether the arena can add retail outlets that local businesses oppose.

Also, By

such gifts can create a slippery slope, with officials coming to expect VIP treatment and making local businesses feel coerced into offering it so that they can receive a fair hearing.

the same token, it is incumbent upon businesses to comply with government regulations on gift giving. While it may be common in the private sector to acknowledge important customers with extravagant holiday gifts, this practice is disallowed in the public sphere; the gravel company that tries to reward the mayor of a city that has made a big purchase with 10 pounds of expensive chocolate simply puts the mayor in the awkward position of returning the gift. BRIBES vs. GIFTS

The culture of gift-giving and receiving is an intrinsic aspect of human

society. However, gift-giving in the context of business interactions, especially between a public official holding the powers to dispense and business managers who seek these favors raise ethical questions in the public arena.

It has been argued in the past that gift-giving is a matter of culture and is
subject to cultural relativism (Wraith & Simpkins,1963) but it has also been argued that there is a fine line between gifts given to a public official and a bribe that is meant to extract some benefit or induce some favorable behavior (Noonan, 1984).

 The root of such debates lies in the notion that certain cultural situations
are accepted as ethically correct or moral within the society in question, and therefore they ought to be perceived as such.

However, another view is that such cultural relativism is grounded in the

assumption that a person or culture believing an act is morally correct, helps make it morally correct although it may not be so (Donaldson & Dunfee, 1999:20).

D. The Morality of Advertising

Advertising is:

Communication It is usually:

from a specific source that intends to inform and influence the audience so that they believe something and/or behave in a certain way

Persuading people to purchase a brand/product Paid for Using mass media But some marketers are much sneakier. The importance of advertising is "steadily on the increase in modern society." Just as the media of social communication themselves have enormous influence everywhere, so advertising, using media as its vehicle, is a pervasive, powerful force shaping attitudes and behavior in today's world. The Church stresses the responsibility of media to contribute to the authentic, integral development of persons and to foster the well being of society. "The information provided by the media is at the service of the common good. Society has a right to information based on truth, freedom, justice and solidarity." The field of advertising is extremely broad and diverse. In general terms, of course, an advertisement is simply a public notice meant to convey information and invite patronage or some other response. As that suggests, advertising has two basic purposes: to inform and to persuade, and while these purposes are distinguishable both very often are simultaneously present. Moral and Religious Harms of Advertising: Advertising can be tasteful and in conformity with high moral standards, and occasionally even morally uplifting, but it also can be vulgar and morally degrading.

Frequently it deliberately appeals to such motives as envy, status seeking and lust. Today, too, some advertisers consciously seek to shock and titillate by exploiting content of a morbid, perverse, pornographic nature. What this Pontifical Council said several years ago about pornography and violence in the media is no less true of certain forms of advertising: As reflections of the dark side of human nature marred by sin, pornography and the exaltation of violence are age-old realities of the human condition. In the past quarter century, however, they have taken on new dimensions and have become serious social problems. At a time of widespread and unfortunate confusion about moral norms, the communications media have made pornography and violence accessible to a vastly expanded audience, including young people and even children, and a problem which at one time was confined mainly to wealthy countries has now begun, via the communications media, to corrupt moral values in developing nations. Certain special problems relating to advertising that treats of religion or pertains to specific issues with a moral dimension: In cases of the first sort, commercial advertisers sometimes include religious themes or use religious images or personages to sell products. It is possible to do this in tasteful, acceptable ways, but the practice is obnoxious and offensive when it involves exploiting religion or treating it flippantly. In cases of the second sort, advertising sometimes is used to promote products and inculcate attitudes and forms of behavior contrary to moral norms. That is the case, for instance, with the advertising of contraceptives, abortifacients and products harmful to health, and with government-sponsored advertising campaigns for artificial birth control, so-called "safe sex", and similar practices. Therefore, we call upon advertising professionals and upon all those involved in the process of commissioning and disseminating advertising to eliminate its socially harmful aspects and observe high ethical standards in regard to truthfulness, human dignity and social responsibility. In this way, they will make a special and significant contribution to human progress and to the common good.

E. Office Romance DEFINITION:

Office romancesromantic relationships between two people employed by the

same employerare as common now as they have been throughout history.

The long hours many people spend at work make for a situation in which those
with whom we work are for many not only colleagues but our primary source of social contact.

According to an article on the Discovery Health Channel Web site, 4 out of 10 people
now meet their spouses at the office and more than half of those partaking in a survey reported to having had at least one office romance. For businesses, workplace romances carry with them the potential to complicate the work environment and cause difficulties of various types

Therefore, romantic relationships are bound to develop.

lost productivity due to distraction; accusations of favoritism; jealousy among co-workers; the potential for an antagonistic mood should the relationship end poorly; And, in a worst-case scenario, allegations of sexual harassment in the event that
one of the parties asserts that he or she was coerced.

Dealing with Office Romances:

what to include in a workplace policy on dating or romantic relationships is not easy: Banning dating among employees may not be a reasonable solution, although exceptions can certainly be made in instances where one of the principals involved has a supervisory role over the other. One concern with a newly forming romance in the workplace is that it will be accompanied by inappropriate displays of affection in the office. This, in turn, can cause an uncomfortable environment for others and certainly presents a less than professional image. A company may address this concern by establishing an on-the-job code of conduct that specifically addresses a professional work environment and prohibits "public displays of affection." As a minimum, any policy designed to regulate dating or office romances should be designed to protect the company against sexual harassment liability and ensure a professional work environment. Actions to consider when preparing such a policy include: State what is not acceptableDefine in the policy exactly what types of relationships will and will not be tolerated. Most human resource professionals

Knowing

recommend establishing policies that prohibit supervisors from dating a direct report. Policies may also note that staff members are expected to behave professionally and that romantic trysts should be kept out of the work environment. Make penalties cleardefine what actions will be undertaken if the policies are violatedtransfer, demotion, termination. Address sexual harassment head onState outright that any alleged sexual harassment will be handled in a legally proper manner. Managers must make employees aware that the company has a zero-tolerance policy on sexual harassment. Information should be provided about the consequences of such behavior. Companies may even require that their employees sign documentation indicating that they understand and will abide by the policy. Reinforce policies on sexual harassmentprovide training for all supervisors/managers about sexual harassment in all its forms. Educate them on the various signs that an office romance is having a negative impact on the company's efficiency (these signs can range from increased workplace friction to unprofessional displays of affection, anger, or other emotions). Show respect for privacydo not overstep boundaries of employee privacy. A company needs to make it abundantly clear that workplace performance is its primary concern. Encourage open communicationsConsider requesting employees to disclose a relationship if it becomes romantic. This may be a difficult task for employees if the penalties for such a relationship are severe. If, on the other hand, the company is willing to work with the couple then it is more likely that they will communicate their involvement in an appropriate manner. Office Romance and Sexual Harassment Distinguished: Given the increase in sexual harassment lawsuits that have exposed an ongoing problem in many businesses, it is not surprising that small business owners have expressed concern about the sometimes blurry boundaries between office flirtationswhich may lead to full-fledged office romances and ugly instances of sexual harassment. While businesses can take certain steps to define inappropriate office conduct, many of them quite effective, stopping sexual harassment is often a more complicated issue if the two people involved were formerly romantically involved. Indeed, some people resort to harassment in the wake of a breakup, while others have been known to level false harassment charges after being jilted. If an office relationship degenerates to such a point, it is important for the business owner to maintain an impartial stance and make sure that decisions are made on the basis of the evidence at hand.