Ethics and the Conduct of Business Eighth edition Chapter Employment Rights Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Modules • Introduction: Employment Rights • 8.1: Employment at Will • 8.2: Right to Due Process • 8.3: Freedom of Expression • 8.4: Workplace Democracy • 8.5: Worker Compensation • 8.6: Executive Compensation • Conclusion: Employment Rights Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Learning Objectives (1 of 2) • • • 8.1: Recognize the three basic arguments that justify employment at will and the three types of exceptions to this doctrine that protect employees from unjust dismissal 8.2: Describe the main arguments and principles of the Model Employment Termination Act that support the right of employees to due process in employment decisions 8.3: Explain the significance of freedom of expression for employees, the extent to which it is protected by law, and the arguments for and against this right in the workplace Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Learning Objectives (2 of 2) • • • 8.4: Analyze the correlation between worker participation and workplace democracy and how Dahl's argument supports workplace democracy as a right 8.5: Assess the market forces and other factors that influence employee compensation, the fairness of wages, and justifications for a minimum wage 8.6: Evaluate the reasoning underlying criticisms and justifications of the compensation for top executives Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Introduction: Employment Rights • Case Study: The Firing of Robert Greeley • Examining at-will employment • Employers’ rights vs Employee rights • Due process Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Figure 8.1: Arguments Used to Justify Employment at Will Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.1: Employment at Will (1 of 3) Objective: Recognize the three basic arguments that justify employment at will and the three types of exceptions to this doctrine that protect employees from unjust dismissal • 8.1.1: Property Rights Argument – Employers and employees own property – Exchange of property between the parties – Downside • 8.1.2: Freedom of Contract Argument – Overview – Downside Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.1: Employment at Will (2 of 3) Objective: Recognize the three basic arguments that justify employment at will and the three types of exceptions to this doctrine that protect employees from unjust dismissal • 8.1.3: Efficiency Argument – Employers granted freedom to choose workers – Employee benefits – Consequences of job immobility Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Table 8.1: Arguments Supporting Employment at Will Argument Premise Application Property Rights Argument Both employers and employees have “property” of some economic value and the right to determine what they with their own property Employers have wages and employees have labor They are free to buy and sell this “property” or accept and refuse offers for it Freedom of Contract Argument Employment is a contractual arrangement between employers and employees Both have the right to contract as they choose Excessive limits on the agreements that can be made between employers and employees violate their freedom of contract Efficiency Argument This utilitarian argument relies on the importance of employment at will for the efficient operation of business, which benefits employers, employees, and society Many employers and employees agree to employment at will, so it benefits both parties and allows the most efficient use of all resources Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.1: Employment at Will (3 of 3) Objective: Recognize the three basic arguments that justify employment at will and the three types of exceptions to this doctrine that protect employees from unjust dismissal • 8.1.4: Exceptions – Restrictions to employment-at-will Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Figure 8.2: An Acceptable Employment at Will Doctrine Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.2: Right to Due Process Objective: Describe the main arguments and principles of the Model Employment Termination Act that support the right of employees to due process in employment decisions • 8.2.1: Support for Due Process – Three arguments to support due process • 8.2.2: Law of Due Process – Features – Model Employment Termination Act Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.3 Freedom of Expression (1 of 2) Objective: Explain the significance of freedom of expression for employees, the extent to which it is protected by law, and the arguments for and against this right in the workplace • 8.3.1: Defining Freedom of Expression – Four elements – Definition • 8.3.2: Legal Protection for Expression – American law – Two provisions Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.3 Freedom of Expression (2 of 2) Objective: Explain the significance of freedom of expression for employees, the extent to which it is protected by law, and the arguments for and against this right in the workplace • 8.3.3: Arguments over Expression – Two arguments – Just grounds for dismissal Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.4 Workplace Democracy Objective: Analyze the correlation between worker participation and workplace democracy and how Dahl's argument supports workplace democracy as a right • 8.4.1: Participation and Democracy – Overview • 8.4.2: Arguments for Democracy – Overview – Two moral arguments – Dahl’s argument Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.5 Worker Compensation (1 of 2) Objective: Assess the market forces and other factors that influence employee compensation, the fairness of wages, and justifications for a minimum wage • 8.5.1: Setting Wages – Overview – Factors that determine pay – Correction of unequal distribution of wealth • 8.5.2: Market Outcomes – Economist view of wages – Efficient markets – Market justice Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.5 Worker Compensation (2 of 2) Objective: Assess the market forces and other factors that influence employee compensation, the fairness of wages, and justifications for a minimum wage • 8.5.3: Minimum Wage – Rationales for minimum wage legislation Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 8.6 Executive Compensation Objective: Evaluate the reasoning underlying criticisms and justifications of the compensation for top executives • 8.6.1: Criticism of CEO Pay – Condemnation of CEO pay • 8.6.2: Justifying CEO Pay – Justifying CEO pay • 8.6.3: Problems with Justification – Bebchuk and Fried thesis Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Conclusion: Employment Rights • Employee rights are important • Workers are sensitive to unjust treatment • Due process in termination has moral grounding • Labor law ensures just treatment of workers Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved ... Explain the significance of freedom of expression for employees, the extent to which it is protected by law, and the arguments for and against this right in the workplace • 8. 3.1: Defining Freedom of. .. Objective: Explain the significance of freedom of expression for employees, the extent to which it is protected by law, and the arguments for and against this right in the workplace • 8. 3.3: Arguments... and other factors that influence employee compensation, the fairness of wages, and justifications for a minimum wage 8. 6: Evaluate the reasoning underlying criticisms and justifications of the