Friday 25 April 2014

Business Ethic in Perspective of The Company and Employee


I.       Company’s Liabilities

1.  Company should not practice discrimination.

After the middle of 20th century, discrimination emerged as an issue of business ethic. This issue was from United States, the Declaration of Independence which state “the equal rights for all human are a gift from God are beginning to be applied slowly. The struggle for gaining equal rights among white Americans and black was started by a Rev. Martin Luther King. The concept of non-violence became the mainstay of the pastors in the fight against discrimination. So, in 1964, the law on the Civil Rights Act was implemented in the United States. This law states that every tribe, race, color, religion is the same and there is no different.

2.  Discrimination in company’s perspective

Discrimination that occurs in the corporate environment is usually not relevant and just based on mere prejudice. Sometimes, it happens in the selection process of new employees, promotions, the calculations of salary increases. There are many ways to determine the limits of employee recruitment, such as level of education, experience, age and others. It can be justified as long as these conditions are relevant to the position or positions that are being required by the company. Discrimination occurs when the reasons are irrelevant, such as women should not become managers, employees may not campaign for a particular religion, and race blacks should not be employed in the company.

3.  Company should ensure health and safety

The workplace can be considered healthy, that is free from the risk of illness or disease (occupational disease). Accidents often occur in the work environment associated with the mining industry, chemical industry, and the various places associated with the magnitude of risk of injury to the employee concerned. There are several fundamental arguments that become a standard of ethics for the company to maintain the safety and employees health, including:

§  Every worker has the right to safe working conditions and healthy, as well as referring to human rights not to be harmed and also the human right to life.

§  In theory deontology, Kant says the human mind should be treated as ends rather than as means. If the safety and health of workers subjected to danger then it means that the company just for the sake of enslaving workers for corporate purposes only.

§  The conditions of the workplace safe and healthy will support the productivity and generate profit for the company and the country's economy itself. This ethical obligation is in line with the theory of cost benefit analysis. Where the losses will arise by inhibition of the production process as a result of unsafe conditions and healthy for the employees.

4.  Company should give payroll fair

Every person has a decision to work. One of the main objectives is get decent wages. There are several factors that can contribute to determining how the amount of a person's salary of the work being undertaken. According to Thomas Garret and Richard Klonoski there are six criteria that can be considered:

§  Regulation Law.

Through a law known rule called the minimum wage. Developed countries apply a system of minimum wages to pay of the workers. The minimum wage is emerging as one of the social effects where a person needs to live decently is the criterion for minimum wage, it is also often a consideration of labor organizations in the fight for the right of every worker.

§  Wages are prevalent in a particular industrial sector or region.

This system in Indonesia is better known by the local minimum wage. Each region has a respective provision in wage setting limits on the criteria in each industry.

§  Ability of the company.

Large and small-scale industries act as a reference for every company in providing wages to its employees. Large industrial pays more appropriate than a small industry. Companies must adjust profits, with the increase or remuneration and bonuses to its employees. This system can run for a company that is open to financial circumstances.

§  Specific particular job.

Some of the tasks in a job require special skills or education specialist. Due to a shortage of these specialized skills, it should be given a higher award. Some work sometimes at high risk for occupational safety, health and safety of employees. If the job categories that do not require special skills, it should be firm on the principle of equal pay for each job is the same. This is done to prevent the practice of discrimination, where workers sometimes in some countries women are still distinguishable in the payment of wages than male workers.

5.  Company Not Allowed In Unilateral Lay Employees

According to Garret and Klonoski, there are some things that can be taken into consideration in dealing with employee termination cases, three concepts are:

§  Employer may only terminate for good cause. Downsizing company employees for economic reasons needs to be considered carefully. Unlike the case with the decision given by the manager of the employee who made ​​a mistake that resulted in losses to the company. Decisive action such as dismissal can be done, but must be careful consideration as the level of errors made by the employee whether fatal or not. If it is a small error, can be given a warning only. But if it is fatal then the dismissal may be made by the leadership.

§  The employer must hold the proper procedures. The reason to dismiss an employee should not be based on the personal interests of the leaders of the company, but should be based on the rules and the interests of the company. It is useful to prevent discrimination and negative perceptions of the other employees. Because when there is a negative perception of the leadership, the company itself that will suffer losses relating to the performance of the company.

§  The employer must limit the negative impact on the employee to a minimum. Dismissal of employees must be included with an allowance to provide material support and also mentally from the employee. Companies need to provide compensation for what has been given by the employee with the consideration of the services he has done during his job.


II.       Employee’s Liabilities

Three Important Employee Obligations

1.  Obligation of obedience an employee is obliged to comply with the boss where he works, but there are some things that do not need to be adhered to by an employee against his superiors.

§  Employees do not need and should not even obey the orders of their superiors who violate moral or even breaking the law.

§  Employees are not required to obey the orders of his superiors were not reasonable, although in terms of ethics are violated or there is no objection. This command is more to things that are not related to the company's interests.

§  Employees also do not need to obey the commands that are related to but not the interests of the company in accordance with the agreed assignment when he became an employee in the company.

2.    Liabilities confidentiality obligation is an obligation to keep that information confidential is a secret that is usually accepted as a form of responsibility in the profession.

3.    Obligation of loyalty was loyalty obligation is a consequence of a person's status as an employee of the company. By starting to work in companies, employees must support the objectives of the company, because as it involves employees to help the company realize its objectives and also avoid activities that harm the company.

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