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Chapter 15 The Natural Environment as Stakeholder SUGGESTED ANSWERS TO DISCUSSION QUESTIONS Students should recognize that their answers to these discussion questions should be well reasoned and supported with evidence. Although some answers will be more correct than others, students should be aware that simplistic answers to complex questions, problems, or issues such as these will never be “good” answers. What is sustainability in the context of business operations, and how do firms achieve sustainability by balancing economic prosperity, ecosystem viability, and social justice? Sustainability is a firm’s ability to meet the needs of the present generation without sacrificing future generations’ quality of life. Firms achieve sustainability by balancing economic prosperity, ecosystem viability, and social justice. How does the provided answer from "Business & Society: Ethics, Sustainability, and Stakeholder Management" prioritize environmental issues, particularly emphasizing climate change, and what factors contribute to the significance of these issues in terms of their political, social, and global implications? The textbook lists several environmental issues that have reached the critical stage: climate change, energy, water, biodiversity/land use, air pollution, waste management, ozone depletion and deforestation, among others. I would emphasize climate change as possibly the most critical environmental issue, in light of its political, social and global implications. Furthermore, no other environmental issue has received as much press or attention in recent memory. This particular issue is being addressed in the court of public opinion as well as our nation’s capital. The impact of water pollution also is likely to receive increased attention due to the 2010 BP Oil Spill. What insights does E.F. Schumacher's concept of distinguishing between capital and income offer regarding environmental sustainability, and how might this perspective inform strategies for addressing issues such as overpopulation, pollution, and the development of toxic materials? As E. F. Schumacher says in Small is Beautiful, the underlying reason for many of our environmental problems is our failure to distinguish between capital and income. By capital, Schumacher is referring to the nonrenewable sources of energy that we consume without making any efforts to replace it (which we cannot do) or develop new sources of renewable energy. If we recognized the dangers of using up our “capital,” we would be much more careful of it. From that underlying failure to recognize the ramifications of what we are doing, we have overpopulated the planet, polluted it, and have developed toxic materials that have the potential to literally destroy life on earth. What are the key challenges and potential solutions to address environmental degradation, as discussed in the 'The Natural Environment as Stakeholder' chapter of the book 'Business & Society: Ethics, Sustainability, and Stakeholder Management'? The future outlook for the environment is, in a word, dismal. Although, as the authors note, nature itself is a polluter and destroyer, it does so within a balanced overall system. Humans have upset that balance, and it will take a complete reversal of our value systems and economic goals to rectify the problems we have created. If we do not act soon, the environmental problems that we have created may be irreversible (some climatologists already assert that certain effects of climate change are irreparable). Students should be encouraged, however, that some actions have at least yielded positive results. While the results are inconclusive, there is evidence that the hole in the ozone layer is repairing itself as a result of the international community’s efforts under the Montreal Protocol. What roles do individuals, businesses, and governments play in addressing environmental issues, as discussed in the provided answer? Furthermore, how do collective efforts, including those of the international community and environmental interest groups, contribute to the resolution of environmental challenges? Of course, we all have responsibility for addressing environmental issues, because we all have an impact on the environment. How much we consume, the type of cars we drive, and the temperature at which we keep our houses (and much more) all have an impact. However, individual effort can do little to correct the problems we have created. The collective efforts of the international community, through environmental interest groups, and especially businesses and governments are absolutely necessary to even begin to resolve these issues. What are the contrasting ethical perspectives of deontology and utilitarianism when it comes to addressing the environmental crisis, and how do these perspectives influence decision-making within businesses? Deontology is the most likely ethical theory to help resolve the environmental crisis. This theory emphasizes doing our duty, with little emphasis placed on the outcomes of our actions. Thus, a deontologist would be likely to recognize a duty to not harm the environment. Business people, however, tend to be utilitarians—seeking to do only those acts that provide a surplus of benefits over costs. The problem is not with the theory, per se, but in our inability to fully perform the calculus required. Utilitarianism requires that all costs and benefits enter the equation, but practically speaking, that is impossible. As a result, people tend to include only those easily identifiable items, like financial costs and benefits. That type of utilitarian calculus all too often ignores the very real, but hard-to-measure environmental costs. What potential drawbacks and limitations do you see in the application of cost-benefit analysis within the context of sustainability and environmental decision-making, particularly in light of the critique presented regarding its tendency to overlook significant long-term costs and benefits? Patagonia and 3M are among those cited in the textbook as examples of sustainable businesses. In addition to those listed in the textbook, other firms are also running sustainable businesses. Ben & Jerry’s has been a long-time supporter of environmentalism, and Interface Carpet is a pioneer in developing a sustainable carpet manufacturing process. Car manufacturers that have focused on sustainable initiatives through the development of hybrid technology have obtained a competitive advantage over companies that have been slow to adopt this technology. These businesses have attracted a new class of consumers who may be environmentally-friendly, looking for tax-breaks and desiring a cheaper gas bill. The book lists cost-benefit analysis and triple bottom line reporting as decision processes that can help. I personally have grave concerns about the use of cost-benefit analysis, simply because in the vast majority of cases, many (and often the most important) costs and benefits are left out of the analysis. Analysts include only those relatively easy figures, and thus make decisions that have enormous long-term impacts with only easily-captured, short-term information. I would argue that cost-benefit analysis, as practiced in the majority of cases, has been a major contributor to our environmental problems. What are the considerations regarding a company's focus on unlimited economic growth in light of its broader responsibilities, as discussed in "The Natural Environment as Stakeholder" chapter of "Business & Society: Ethics, Sustainability, and Stakeholder Management"? As noted previously in the text, companies have economic responsibilities, as well as legal, ethical and philanthropic responsibilities. The key to this question is whether the company should focus on unlimited economic growth. Companies must focus on economic growth, but they cannot do so at the expense of their other responsibilities. Continued emphasis on unlimited economic growth without focusing on a company’s legal and ethical responsibilities will only use up our resources more quickly, thus shortening the remaining life of our planet. The criterion of economic growth was established in a time when survival was the primary concern. We have essentially solved that problem now, so we are using a model designed to answer the wrong question. Several students may object to this line of reasoning, accurately citing the poverty and hunger in less developed countries. Although the results they refer to are correct, they derive from a different problem, not production. The new problems are ones of distribution and sustainability. We grow enough food and make enough stuff for everyone in the world to have at least the basic necessities, but the way those goods are distributed is wildly flawed. Unless we stop population growth, slow or cap use of resources, develop sources of renewable energy, and redistribute wealth and income, life on this planet will eventually cease to exist. GROUP ACTIVITY Have students calculate their carbon footprint, which can be determined by various websites (http://www.climatecrisis.net, http://www.carbonfootprint.com/calculator.aspx, etc.). The instructor may want to review the class results and note the top three to five contributors of carbon dioxide emissions (i.e., car use, airplane use, utility use). Once the top three to five class contributors of carbon dioxide emissions are identified, students should develop proposals of realistic methods/steps that students in the class can take to reduce their carbon dioxide emissions. Students should focus on novel ideas that may not have been developed yet and be ready to present their proposals in a five-minute presentation to the entire class. To organize this group activity focused on calculating carbon footprints and proposing realistic methods to reduce carbon dioxide emissions, follow these steps: 1. Calculate Carbon Footprints: • Instruct students to individually calculate their carbon footprints using online calculators from reputable sources like http://www.carbonfootprint.com/calculator.aspx or http://www.climatecrisis.net. • Ask students to note their total carbon emissions and the top contributors to their individual footprints, such as transportation, energy use, or dietary habits. 2. Review Class Results: • Compile the class results and identify the top three to five contributors of carbon dioxide emissions among the students. • Discuss the findings with the class, highlighting common trends and areas where carbon emissions can be reduced effectively. 3. Develop Proposals for Emission Reduction: • Divide students into small groups and assign each group one or two of the identified top contributors of carbon dioxide emissions. • Instruct each group to brainstorm and develop realistic proposals for reducing carbon emissions in the assigned area(s). Encourage creativity and innovation in generating novel ideas. • Emphasize the importance of proposals being practical and feasible for implementation by students in their daily lives. 4. Prepare Presentations: • Give students time to prepare five-minute presentations outlining their proposals for emission reduction. • Encourage groups to include details such as the rationale behind their proposals, potential challenges and solutions, estimated impact on carbon emissions, and steps for implementation. 5. Present Proposals to the Class: • Have each group present their proposals to the entire class within the allocated time limit. • Encourage active participation and feedback from the audience to foster discussion and exchange of ideas. 6. Discuss and Evaluate Proposals: • Facilitate a discussion after all presentations are completed, allowing students to ask questions and provide feedback on the proposals. • Encourage critical thinking and constructive criticism to refine the proposals and identify the most promising strategies for emission reduction. 7. Reflect and Plan Action Steps: • Conclude the activity by encouraging students to reflect on the presentations and identify action steps they can take individually or collectively to reduce their carbon footprints. • Provide resources and support for students interested in implementing the proposed strategies in their daily lives. By engaging in this group activity, students will not only gain awareness of their carbon footprints but also develop critical thinking skills and practical solutions for mitigating climate change through individual and collective action. INDIVIDUAL ASSIGNMENT Ask students to research current international agreements and proposed U.S. laws and regulations regarding climate change. As a starting point, instructors may want to guide students to the following websites: http://www.pewclimate.org/international/copenhagen-climate-summit-summary http://news.bbc.co.uk/2/hi/science/nature/8422307.stm http://www.usclimatenetwork.org/policy/copenhagen-accord-commitments http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/ea1bf25579e541b1852577220055c20c!OpenDocument http://www.businessweek.com/news/2010-05-13/greenhouse-gas-rules-made-final-by-epa-as-alternative-to-bill.html In connection with their research, students should prepare a typed-written response to the following questions: What is the Copenhagen Accord? What is the United State’s role in this agreement? How will the new EPA rules regarding greenhouse gases affect business? Specifically, what requirements do the rules place on business? Should government regulate greenhouse gas emissions? If so, how? Or, do you think that individuals and corporations should voluntarily take action? If so, what steps would you recommend that individuals and corporations take? To tackle this individual assignment, students should follow these steps and answer the questions provided: 1. Research Current International Agreements and Proposed U.S. Laws and Regulations Regarding Climate Change: • Use the provided websites as starting points to research current international agreements and proposed U.S. laws and regulations related to climate change. • Focus on understanding the Copenhagen Accord and recent EPA rules regarding greenhouse gases. 2. Typed-Written Response to Questions: (1) Copenhagen Accord: • The Copenhagen Accord is a political agreement reached at the 2009 United Nations Climate Change Conference in Copenhagen. It was not legally binding but aimed to outline commitments and actions to address climate change. • The United States played a significant role in crafting the Accord, although its acceptance and implementation were subject to domestic political challenges. The U.S. committed to reducing its greenhouse gas emissions by 17% below 2005 levels by 2020. (2) Impact of EPA Rules on Business: • The new EPA rules regarding greenhouse gases, particularly under the Clean Air Act, significantly affect businesses, especially those with high emissions. • Businesses may face requirements such as obtaining permits for emitting greenhouse gases, implementing emission reduction measures, and complying with reporting and monitoring obligations. (3) Regulation of Greenhouse Gas Emissions: • The question of whether government should regulate greenhouse gas emissions is a complex issue with various perspectives. • Some argue for government regulation as a necessary measure to address the collective action problem and ensure comprehensive emission reductions across sectors. • Others advocate for voluntary actions by individuals and corporations, emphasizing market-based approaches, technological innovation, and corporate social responsibility. • Recommendations for individuals and corporations may include: • Advocating for and supporting policies that incentivize emission reductions and transition to renewable energy sources. • Implementing energy efficiency measures, investing in renewable energy technologies, and adopting sustainable practices. • Engaging in carbon offset programs, supporting reforestation efforts, and participating in community initiatives to mitigate climate impacts. By addressing these questions, students will gain a deeper understanding of international climate agreements, U.S. regulatory frameworks, and the broader debate on addressing climate change through government action and voluntary initiatives. Chapter 16 Business and Community Stakeholders SUGGESTED ANSWERS TO DISCUSSION QUESTIONS Students should recognize that their answers to these discussion questions should be well reasoned and supported with evidence. Although some answers will be more correct than others, students should be aware that simplistic answers to complex questions, problems, or issues such as these will never be “good” answers. What are the key steps involved in developing a community action program, and how do these steps contribute to the alignment of a company's resources with the needs of the community? There are four steps to developing a community action program: (1) knowing the community, (2) knowing the company’s resources, (3) selecting projects to support, and (4) monitoring projects. The first step involves understanding the community in which the company resides—who lives there, what problems it faces, what kind of leadership it has, what its most pressing needs are, etc. Knowing the company’s resources requires one to identify what the firm has to offer—money, time, talent, expertise, etc. Selecting projects to support is a matter of trying to match the community’s needs with the firm’s resources. Finally, monitoring the projects is necessary because the community’s needs must be met, and the company wants to make sure that its resources are being effectively utilized. What historical and contemporary factors influence corporations' decisions regarding community involvement and philanthropy, and how do proponents and opponents of such initiatives justify their positions? Arguments for community involvement and philanthropy center on the fact that business has the resources and expertise to help meet social needs. Many also note that business should be responsible for the problems that it creates. In addition to these factors, it also is important to note that these activities also can help the firm and its employees through increased employee morale, better firm reputation, etc. Arguments against these programs emphasize the narrow profit motive of the firm. Activities that do not directly generate profits are considered to be outside the purview of the corporation and therefore illegitimate. Corporate philanthropy has been around since the early 20th century, but blossomed in the 1960s. Corporations give for a number of reasons, including to do good both for themselves and for the community. Contributions go to health and human services, education, civic and community activities, the arts and crisis areas. What are some examples of community partnerships, strategic philanthropy, cause-related marketing, and cause branding provided in the text, and how do these initiatives benefit both the for-profit corporations and the non-profit organizations involved? Community partnerships entail a cooperative arrangement between a for-profit corporation and a non-profit organization for their mutual benefit. A building supply firm might partner with Habitat for Humanity to provide materials at a deep discount, while gaining favorable publicity. An example that students may recognize is the National Football League’s partnership with the United Way. Through this partnership, both groups benefit. The NFL raises the profile of the United Way, and the United Way provides organized community service activities in which NFL players participate (improving the image of the NFL as whole). Strategic philanthropy is the process of tailoring a firm’s giving to best fit with its own mission and goals, by making contributions that hold the promise of helping the firm’s financial goals, giving to causes that align with corporate activities, and explicitly planning the giving process. An office supply store might make contributions to a school by donating discontinued supplies and equipment. Cause-related marketing ties sales of a firm’s products with a specific charity. Yoplait yogurt has an annual campaign that contributes money to breast cancer research for each jar of yogurt sold. Cause branding is similar to cause-related marketing, but is a longer-term project, and is generally more closely tied to the firm’s product line. LensCrafters collects used eyeglasses from its customers to donate to the Lion’s Club and for use in its own work with underprivileged children. What are some key factors contributing to the tradeoff between increasing profits, which primarily benefit shareholders and senior managers, and potentially harming workers' incomes in business decision-making? How might this tradeoff be addressed ethically within the context of stakeholder management and community welfare? The major tradeoff that most managers never address is the decision to increase profits, which primarily benefit shareholders and senior managers, at the expense of workers’ incomes. This tradeoff is not addressed because the managers have effective control of the corporation and have a way to enrich themselves, and shareholders are a privileged class of stakeholder who are given preference over workers. The decision is presented in terms of the need to remain competitive, not the stark tradeoff mentioned above. In lieu of actually deciding to treat workers as equals to senior managers and shareholders, the firm should at the very least ameliorate the damages to workers and the community, along with providing outplacement benefits. Further, in certain cases, federal law requires companies to provide advanced notice in the event of mass layoffs. What ethical considerations should businesses take into account when facing the decision to close a plant, especially regarding their responsibilities to workers and the community, as discussed in the chapter on Business and Community Stakeholders in "Business & Society: Ethics, Sustainability, and Stakeholder Management"? Businesses have a clear responsibility to workers and the community in the case of a plant closing because: (1) the company has received significant benefits from both, (2) business holds a significant power differential, and (3) it is simply the “right” thing to do. All rights and privileges carry corresponding duties, and entities that have large privileges have large responsibilities. GROUP ACTIVITIES Group Activity 1 – Community Action Programs Divide students into groups of four to five students. Assign each group a well-known company. Ask each group to develop a community action program for the assigned company. Students should assume that the assigned company operates in the community where your school is located and should develop the community action program based on that community. Students should present the community action program to the entire class. Groups should be prepared to answer questions about potential problems and/or issues with their respective plans. To organize Group Activity 1 focused on developing community action programs for well-known companies, follow these steps: 1. Group Formation: • Divide students into groups of four to five members. 2. Assign Companies: • Assign each group a well-known company, ensuring a diverse range of industries and sectors represented. • Consider companies with a presence in the community where your school is located. 3. Research and Planning: • Instruct each group to research their assigned company's current community involvement initiatives, corporate social responsibility (CSR) programs, and any existing partnerships with local organizations. • Based on the research, have groups identify opportunities for community action programs that align with the company's values, resources, and community needs. • Encourage creativity and innovation in designing programs that address specific challenges or support community development goals. 4. Develop Community Action Program: • Have each group develop a comprehensive community action program tailored to the specific needs and characteristics of the local community. • Programs should include specific objectives, activities, target beneficiaries, timelines, and expected outcomes. • Emphasize the importance of programs being realistic, feasible, and sustainable for implementation by the assigned company. 5. Presentation Preparation: • Instruct groups to prepare presentations to showcase their community action programs to the entire class. • Presentations should include an overview of the assigned company, the rationale for the chosen community action program, program details and components, potential impact on the community, and strategies for implementation and evaluation. • Encourage groups to anticipate potential problems or issues that may arise during program implementation and develop contingency plans or mitigation strategies. 6. Presentation and Q&A Session: • Allow each group to present their community action program to the class, following the allotted time limit. • Facilitate a Q&A session after each presentation, where classmates can ask questions, seek clarification, and provide feedback on the proposed programs. • Encourage constructive dialogue and critical thinking to identify strengths and areas for improvement in each program. 7. Reflection and Feedback: • Conclude the activity with a reflection session, where students can share their thoughts on the community action programs presented by their peers. • Provide feedback on the presentations and encourage students to consider how they can apply the principles of corporate social responsibility and community engagement in their future endeavors. By engaging in this group activity, students will develop valuable skills in project planning, teamwork, critical thinking, and social responsibility while exploring the role of businesses in supporting local communities. Group Activity 2 - Outsourcing Movie Night (Note: This Activity also may be used in conjunction with Chapter 10.) Invite groups of students to watch the Outsourcing episode of the FX reality series 30 Days (Season 2, Episode 2). In this episode, Christopher (Chris) Jopin, an unemployed computer programmer, travels to India where his job was outsourced. While in India, Chris lives with an Indian family who works in outsourced jobs, and he obtains an outsourced job. The episode examines American perceptions / attitudes regarding outsourcing, as well as the impact of outsourced jobs to India’s economy and culture. Students should explore the economic, legal and ethical dilemmas that result from the outsourcing of jobs to less developed countries. Have students prepare a movie review where they express their opinion regarding the issues this movie raises. In their analysis, students should explore the economic, legal and ethical impact that this practice has on both the U.S. and India. Movie Review: Outsourcing Episode of 30 Days The Outsourcing episode of 30 Days provides a thought-provoking exploration of the complex economic, legal, and ethical dilemmas surrounding the outsourcing of jobs to less developed countries, particularly focusing on the impact on both the U.S. and India. From an economic perspective, the episode highlights the stark reality faced by many American workers who have lost their jobs due to outsourcing. Christopher Jopin's experience as an unemployed computer programmer sent to India to work in the same job he once held in the U.S. underscores the human cost of outsourcing on American workers. The episode also sheds light on the economic benefits enjoyed by companies that outsource labor to countries like India, where skilled workers can be hired at lower wages. Legally, outsourcing raises questions about labor rights and regulations in both the U.S. and the countries where jobs are outsourced. The episode briefly touches on the legal framework governing outsourcing, but more in-depth exploration could have delved into issues such as worker protections, labor standards, and the enforcement of labor laws in outsourcing destinations. Ethically, outsourcing raises concerns about fairness, exploitation, and social responsibility. The episode prompts viewers to consider whether it is morally justifiable for companies to prioritize cost savings over the well-being of their employees and communities. Additionally, the portrayal of the Indian workers who benefit from outsourced jobs prompts reflection on the ethics of global labor practices and the implications for workers in both developed and developing countries. Overall, the Outsourcing episode of 30 Days serves as a compelling catalyst for discussion and debate about the multifaceted impacts of outsourcing on individuals, economies, and societies. It highlights the need for nuanced consideration of economic, legal, and ethical factors in shaping policies and practices related to outsourcing. As viewers, we are challenged to grapple with the complex trade-offs inherent in globalization and to seek solutions that balance economic efficiency with social equity and human dignity. INDIVIDUAL ASSIGNMENT (Note: This Assignment also may be used in conjunction with Chapter 2) Distribute the following instructions to each student: Research the history and motivation behind PepsiCo’s “Pepsi Refresh” project (see http://www.refresheverything.com/). Provide a brief description of the goals of the project and note the different categories that have received funding. Select an idea that received funding and research and describe the outcomes achieved as a result of funding (if any). Finally, evaluate this model of corporate philanthropy. Is this an example of strategic philanthropy? Should PepsiCo be using corporate resources in this way? To organize this group activity focused on watching the "Outsourcing" episode of 30 Days and preparing movie reviews, follow these steps: 1. Watch the Episode: • Arrange a screening of the "Outsourcing" episode of 30 Days (Season 2, Episode 2) for groups of students. • Encourage students to pay attention to the experiences of Christopher Jopin (Chris) as he explores the impact of outsourcing on both American workers and the Indian economy and culture. 2. Explore Economic, Legal, and Ethical Dilemmas: • After watching the episode, prompt students to discuss and explore the economic, legal, and ethical dilemmas arising from the outsourcing of jobs to less developed countries. • Encourage students to consider factors such as job displacement in the U.S., labor rights and working conditions in outsourcing destinations, economic disparities, cultural implications, and global trade dynamics. 3. Prepare Movie Reviews: • Instruct each group to prepare a movie review expressing their opinions on the issues raised in the episode. • Encourage students to analyze the economic, legal, and ethical impact of outsourcing on both the U.S. and India. • Have students address questions such as: • How does outsourcing affect job opportunities and wages in the U.S.? • What are the implications of outsourcing for labor rights and working conditions in outsourcing destinations like India? • What are the ethical considerations associated with outsourcing, particularly concerning social responsibility and fair trade practices? • How do cultural exchanges and perceptions between the U.S. and India contribute to the outsourcing debate? 4. Present Reviews and Analysis: • Allocate time for each group to present their movie reviews to the class. • Encourage groups to provide a comprehensive analysis of the economic, legal, and ethical dimensions of outsourcing depicted in the episode. • Facilitate discussion and encourage classmates to ask questions and share their perspectives on the issues raised. 5. Reflect and Discuss: • Conclude the activity with a reflection session, where students can discuss key takeaways, insights, and areas of disagreement or consensus. • Encourage critical thinking and respectful dialogue to deepen understanding of the complex issues surrounding outsourcing. By engaging in this group activity and preparing movie reviews, students will gain insights into the multifaceted nature of outsourcing and its implications for workers, economies, and societies in both the U.S. and India. They will also develop critical thinking skills and an appreciation for ethical considerations in global business practices. Chapter 17 Employee Stakeholders and Workplace Issues SUGGESTED ANSWERS TO DISCUSSION QUESTIONS Students should recognize that their answers to these discussion questions should be well reasoned and supported with evidence. Although some answers will be more correct than others, students should be aware that simplistic answers to complex questions, problems, or issues such as these will never be “good” answers. What are the primary drivers behind the evolution of the employee rights movement, particularly in the context of technology, automation, and globalization, and how do these factors influence the dynamics between employers and workers in the contemporary business environment? Technology and automation and globalization are two of the major forces impacting the employee rights movement. I rank technology first because it affects every business, and machines don’t demand rights. The worker rights movement is just one more reason that an employer faced with the opportunity to replace workers with machines would jump at the chance to do so. Globalization is second because workers in other countries (e.g., China or Vietnam) work for much less pay and expect fewer rights that American workers do (although recent events suggest that Chinese workers are beginning to demand additional employee rights). Further, as firms attempt to remain competitive and profitable during a global economic recession, they use both technology and workers in other countries to eliminate U.S. jobs and control fixed costs. What are the implications of the erosion of the employment-at-will doctrine on the balance of power between employers and employees, and how does this relate to broader societal and economic factors, particularly in light of events such as the global recession? The employment-at-will doctrine means that either the employer or the employee can terminate the employment contract at any time, for any reason other than discrimination. It is being eroded because the courts are restricting the employer’s ability to fire employees through public policy exceptions, contractual exceptions, and breach of good faith actions. I think the one-sided erosion of employment-at-will (i.e., employers’ right to fire is being abridged) is a good thing. Employers and employees do not enter into the employment contract as equals. Employers hold much more power than do employees, so something that helps equalize the balance of power is a good thing. Further, despite the willingness of courts to recognize limitations to the employment-at-will doctrine, companies eliminated countless U.S. employees during the global recession (illustrating the imbalance of power between employers and employees). What are some tactics employers employ to ensure due process for employees, and how do these tactics contribute to maintaining fairness and impartiality in the workplace, as discussed in the provided text? Due process is the right to receive an impartial review of one’s complaints and to be dealt with fairly. Employers utilize a variety of tactics to provide due process, including open door policies (for this to be effective, the employee has to trust the manager and to be sure that his/her complaint will be dealt with fairly), some type of hearing procedures, providing an ombudsman, or granting decision-making authority to a peer review panel. How might the implementation of a peer review panel, comprising representatives from various levels of the company, address issues of distrust stemming from class and power differences between managers and workers? In what ways could such a panel contribute to fostering a more equitable and transparent decision-making process within the organization? I would institute a peer review panel, making sure that employees from every level of the company were represented on the panel. There are distinct class and power differences between managers and workers, and different levels of managers. This hierarchy often manifests itself in distrust among the different levels, so any process that relies solely on upper managers to adjudicate outcomes will be distrusted by a large percentage of the employees. A properly constructed peer review panel would help overcome that obstacle. What are the ethical implications and considerations surrounding the protection and support of whistle-blowers within organizations, especially in light of the power dynamics between employees and employers, as discussed in the chapter on Employee Stakeholders and Workplace Issues in "Business & Society: Ethics, Sustainability, and Stakeholder Management"? I have always been sympathetic to whistle-blowers and still am. Organizations hold a great deal of power over their employees, and often expect the workers to do things that many consider unethical. People who are willing (and have sufficient moral courage) to defy the organization and point out the wrong-doing should be praised and held in high esteem. Furthermore, many whistle-blowers undertake the task to report illegal and unethical conduct at the risk of losing their jobs, future livelihoods and possibly even their friends and family. What measures can be taken to incentivize and protect whistle-blowers effectively, considering the significant risks they undertake, including threats to their livelihoods and personal safety, as outlined in the suggested answer from 'Business & Society: Ethics, Sustainability, and Stakeholder Management'? Anything that can be done to provide incentive for whistle-blowers and to protect them is a step in the right direction. If someone is willing to risk their families, their jobs, maybe even their lives, they certainly should share in the financial recovery. Even if it is a large amount, it probably isn’t enough to compensate the whistle-blower for all s/he went through (see Connie Alderson’s comment in the textbook). In some cases, the amount may not compensate the whistle-blower for the potential loss of their livelihood. Further, as whistle-blowers are often subjected to extortion and terrorist acts from their employers, the government should be doing all it can to protect the whistle-blower. GROUP ACTIVITY Divide students into groups of four to five students. Ask students in the class to bring in the employment manuals from their current jobs. Distribute the manuals among the groups. Each group should identify what rights workers have under the manual with regards to the following (1) termination, (2) due process and (3) freedom of speech in the workplace. Specifically, students should determine whether employees have contractual rights to employment under the policy, the procedures involved in a due process proceeding, and mechanisms employed by the company to encourage freedom of speech in the workplace. Students should summarize these issues in a memo. Instructors may want to attach the memos to the various manuals and allow the students to review these memos before, during and after class to obtain a sense of different strategies and approaches used by a variety of companies regarding these issues. To carry out this group activity focused on analyzing employment manuals, follow these steps: 1. Group Formation: • Divide students into groups of four to five members. 2. Distribution of Employment Manuals: • Ask students to bring in the employment manuals from their current jobs. • Distribute the manuals among the groups, ensuring that each group has access to a variety of manuals from different companies or organizations. 3. Identify Rights of Workers: • Instruct each group to review the employment manuals and identify the rights of workers regarding termination, due process, and freedom of speech in the workplace. • Encourage students to analyze the language used in the manuals to understand the extent of these rights and any limitations or conditions imposed by the company. 4. Analyze Specific Issues: • For each issue (termination, due process, freedom of speech), students should: • Determine whether employees have contractual rights to employment under the policy, such as at-will employment or specific termination procedures. • Identify the procedures involved in a due process proceeding, if applicable, including steps for dispute resolution, grievance handling, or disciplinary actions. • Examine mechanisms employed by the company to encourage freedom of speech in the workplace, such as open-door policies, whistleblower protections, or communication channels for feedback and suggestions. 5. Summarize Findings in Memo: • Have each group prepare a memo summarizing their findings regarding the rights of workers under the employment manuals. • The memo should outline the company's policies and procedures related to termination, due process, and freedom of speech, highlighting key provisions, rights, and obligations of employees. 6. Attach Memos to Manuals: • Attach the memos to the respective employment manuals and make them available for students to review before, during, and after class. • Encourage students to compare and contrast the approaches and strategies used by different companies regarding these issues, noting similarities, differences, and areas for improvement. 7. Review and Discussion: • Facilitate a class discussion where students can share their observations, insights, and questions based on the review of the employment manuals and memos. • Encourage students to reflect on the implications of these policies and procedures for employee rights, workplace culture, and organizational dynamics. By conducting this group activity, students will gain practical experience in analyzing employment policies and understanding the rights and responsibilities of workers in various organizational contexts. They will also develop critical thinking skills and an awareness of legal and ethical considerations in employment practices. INDIVIDUAL ASSIGNMENT (Note: This Assignment also may be used in conjunction with Chapter 10) Distribute the following instructions to each student: Research and describe how U.S. companies have employed the doctrine of employment-at-will during the global economic recession. Evaluate how this response compared to non-U.S. companies’ treatment of labor during the recession and how different responses to labor have impacted the U.S. and global economy. Finally, address in your written response how flexible labor policies affect the U.S.’s ability cope with a recession. To complete this individual assignment, students should follow these steps and address the provided instructions: 1. Research Employment-at-Will Doctrine During the Global Economic Recession: • Conduct research on how U.S. companies have employed the doctrine of employment-at-will during the global economic recession. • Explore how the employment-at-will doctrine influenced decisions related to layoffs, terminations, and restructuring efforts in response to economic downturns. • Identify specific examples or case studies of U.S. companies implementing employment-at-will policies during the recession. 2. Compare Treatment of Labor by U.S. and Non-U.S. Companies: • Evaluate how the treatment of labor by U.S. companies during the recession compares to that of non-U.S. companies. • Compare employment practices, labor regulations, and responses to economic challenges between U.S. and non-U.S. companies, considering factors such as job security, employee rights, and social safety nets. 3. Assess Impact on U.S. and Global Economy: • Analyze how different responses to labor by U.S. and non-U.S. companies during the recession have impacted the U.S. and global economy. • Consider effects on employment levels, consumer spending, economic growth, income inequality, and overall economic stability. 4. Address Flexibility of Labor Policies: • Discuss how flexible labor policies, including the employment-at-will doctrine, affect the U.S.'s ability to cope with a recession. • Examine the advantages and disadvantages of flexible labor policies in facilitating workforce adjustments, promoting efficiency, and fostering innovation during economic downturns. • Consider the implications of flexible labor policies for worker protections, income security, and social welfare programs. 5. Write Response: • Write a comprehensive response addressing the research findings, comparisons, and assessments outlined above. • Organize the response into clear sections covering each aspect of the assignment prompt. • Provide evidence, examples, and references to support key points and arguments. 6. Reflect and Conclude: • Conclude the response with reflections on the implications of flexible labor policies for the U.S. economy, workforce dynamics, and long-term resilience in the face of economic challenges. • Offer insights into potential policy considerations or reforms that could enhance labor market flexibility while ensuring worker rights and economic stability. By following these steps, students will conduct a thorough analysis of the employment-at-will doctrine, its application during the global economic recession, and its impact on the U.S. and global economy. They will also develop critical thinking skills and an understanding of the complexities of labor policies in times of economic uncertainty. Solution Manual for Business and Society: Ethics, Sustainability, and Stakeholder Management Archie B. Carroll, Ann K. Buchholtz 9780538453165
