BUSCOR MODULE 7

• In the multi-faceted global business environment of the 21st century, companies both big and small face a huge number of ethical issues
• Ethical issues

  • Workplace sexual harassment
  • Just wage
  • Gifts and bribery
  • Conflict of interest
  • Abuse of power
  • Labor strikes
  • Whistle blowing
  • Recruitment
  • Promotion
  • Termination of employees
  • Marketing and advertising
  • Fair pricing
  • Trade secrets
  • Product misrepresentation
  • Multi-level marketing
  • Pyramiding
  • Money laundering
  • Inside trading
  • Tax evasion
• Sexual harassment

  Unwanted sexual advances, requests for sexual favors, direct or indirect threats or bribes for sexual activity, sexual innuendos and comments, sexually suggestive jokes, unwelcome touching or brushing against a person, pervasive displays of materials with sexually illicit or graphic content, and attempted or completed sexual assault
• Sexual harassment is not restricted by gender. Anybody, male or female, can be a victim of sexual harassment
• Victims are not always of direct supervision. Conduct may still amount to sexual harassment even if the victim is a co-worker, a supervisor in another area, or even a person not employed in the victim's workplace
• The victim could be an employee who is not directly but negatively affected by the unpleasant conduct
• Quid pro quo sexual harassment


  Unwanted sexual advances, requests for sexual favors or other verbal or physical behavior of a sexual nature where giving in to such conduct is made either openly or implicitly a term or condition of employment or giving in to or refusal of such conduct is used as the source for employment decisions
• Hostile work environment sexual harassment


  All verbal or physical conduct of a sexual nature that makes the workplace environment frightening, intimidating, or offensive and has the intention of unfairly meddling with an employee's work performance
• Strategies for prevention of sexual harassment


  1. Implement a clear sexual harassment policy

  2. Train employees

  3. Train supervisors and managers
• According to Republic Act (RA) 7877, the penalties for sexual harassment are imprisonment of not less than one (1) month but not more than six (6) months and a fine of not less than Ten Thousand Pesos (P10,000) but not more than Twenty Thousand Pesos (P20,000)
• Wages


  The price that workers receive for their labor in the form of salaries, bonuses, royalties, commissions, and fringe benefits, like paid vacations, health insurance, and pensions
• Just wage


  The amount required to sustain a frugal and decent worker plus his family, and must be adequate enough to let the worker save and obtain property of his own
• Principles for implementation of just wage


  • Principle of need
  • Principle of equity
  • Principle of economic order
• Factors to consider in determining wage and salary structure of workers


  • External market factors
  • Laws and regulation
  • Cost of living
  • Existing industry rate
  • Organizational factors
  • Job factors
  • Individual performances
• Republic Act (RA) No. 6727, or the Wage Rationalization Act, formed the National Wages and Productivity Commission (NWPC) and the regional tripartite wages and productivity boards to determine minimum wage rates
• Minimum wage


  A national floor level set by the government
• Living wage


  What workers need to give their families decent standards of living, sufficient to meet primary needs and provide some discretionary income
• Minimum wage rates fail workers who are at lowest end of the pay scale because without a living wage worker may be compelled to work too much overtime hours or multiple jobs, become bonded laborers, put their children into work as a replacement for school, be deprived of their primary human rights, and be unable to withstand crises
• Gift

  Something of worth given with no anticipation of return
• Bribe

  Something given in the expectation to influence the recipient's conduct
• The line between genuine giving and bribery is becoming more and more unclear
• Factors to consider in deciding whether to accept a gift

  • Conflict of interest
  • Gift's value
  • Gift's purpose
  • Gift or entertainment
  • Circumstance when the gift is given
• Gift

  Something worth less than a certain amount may be judged insignificant, too small to intimidate professionalism
• Gift's purpose

  Something presented during the holiday season may be more tolerable than the same thing presented just before a major activity is being prepared
• Gift vs entertainment

  Gift is something one can take home, entertainment is enjoyed on the spot. Entertainment while on business discussion is just normal business, gifts appear more like bribes
• Circumstance when gift is given

  Easier to accept a gift without feeling trapped by an obligation, gift must be given openly
• Power to bestow favors in return for gift

  Gift may result in preferential treatment, donor or recipient must make it clear gift is not to influence any action or decision
• Industry accepted practice

  In some industries no gifts are accepted, in others monetary gifts and tips are accepted as they are an essential part of customary business practice
• Organization's policy

  If the practice of the company is not to accept gifts, then gift-giving is generally wrong
• Laws on gift giving

  Commonly relevant to public officials and those working with them, legal right doesn't make it ethically right
• Conflict of interest

  When someone acts in a way that is advantageous to themselves at the expense of their employer
• Examples of conflicts of interest

  • Alumni relations director choosing between competing bids
  • Key donor implying withdrawal of pledge if not given contract
  • Alumni officer recommending their own son for a job
  • Tobacco firm promising funds for stadium naming rights on smoke-free campus
  • Legislator seeking assistance to get their daughter admitted
• Preventing conflicts of interest

  Avoid being biased by an interest that may interfere, avoid obtaining conflicting interests, avoid conflicting roles, be open to all information, not play favouritism, call for collective decisions
• Abuse of power

  Application of one's official position for personal benefit
• Abuse of power by supervisors

  • Causes significant stress and mental distress in employees, leads to decreased self-esteem and productivity
• Ways to prevent abuse of power

  • Make tough decisions, steer clear of power trips, back up words with action, take the job seriously, willingly share power
• Labor strikes

  Last resort of a trade union when negotiations have reached an impasse, gives employees bargaining power against employers
• Reasons for workers going on strike

  • Higher compensation
  • Improve the workplace
  • Shorten working days
  • Stop wages from going down
  • More benefits
  • Unfairness by the company
• Criteria for justified strikes

  Just cause, proper authorization, last resort, nonviolent and nondestructive
• Whistleblowing

  Act of going public with what one has reason to believe to be significantly immoral or illegal acts of an organization one is a member of