Project Business Ethics

ACKNOWLEDGEMENT

All praises belong to almighty ALLAH who is the Supreme Authority knows the ultimate
relations underlying all sorts of phenomenon going on in this universe and whose blessing
and exaltation flourished my thoughts and flourish our ambitious to have the cherished fruit
of our modest efforts in the form of making this project. I also offer our humblest thanks to
HOLY PROPHET HAZRAT MUHAMMAD (PBUH) who is the forever torch of guidance
and knowledge for humanity as a whole.

I deem it our utmost pleasure to avail this opportunity to express gratitude and deep sense of
obligation to our teacher Prof. Hassan Rasheed for his valuable and dexterous guidance,
scholarly criticism, untiring help, compassionate attitude, kind behavior and moral support.

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ABSTRACT
Work is the most important and highly valued human activities in large part because it is
necessary for so many central human good. The vision and the main focus of the study are to
evaluate the role of human rights where every individual has the opportunity to achieve their
potential, where people treat each other with dignity and respect and to encourage good
relations between people of different backgrounds. People get their livelihood through
engaging in different jobs. The most important interest to human well being who are working
have to be protected by rights. This is the duty of employers to provide them with legal rights
basically needed like Health, Safety, Privacy etc.

An art which helps us to inspect the problem that used to take place in business world is
called business ethics. Business has created wealth that has given a supreme number of
individual’s financial control of their lives. It has extended a person horizon substantially
broken down all perceivable barriers. In short business has been a prime transporter in
making it possible for millions to follow their lives in a wealthy, healthy, rational and moving
world.

Background of report

 Business Ethics & Human rights at work place

 Importance of human rights at work place
 Human Rights obligations
 Cases & Examples

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EXECUTIVE SUMMARY
Human rights based on both morality and legality. Human rights are rights and freedoms that
belong to all individuals despite of their nationality and citizenship. They are essentially
important in keeping a fair and civilized society. Doing business ethically necessarily
involves respecting human rights in the course of business operations. A company that is
wishing to be measured as ethical will need to be watchful of human rights. This may be
limited to avoiding human rights violations or take the wider approach of protecting and
promoting human rights in business operations. Usually workplace rights are alienated into
three types, Legal rights, Contractual rights, Moral rights.

Whereas nations or specialized groups enjoy specific rights that apply only to them, human
rights are the rights to which everyone is entitled no matter who they are or where they live
simply because they are alive. The Human Rights Act offers protection on the following
grounds:

 Race/color.
 Religion/creed
 Ethnic/national origin.
 Association.
 Retaliation.
 sex (gender and pregnancy).
 Sexual harassment.
 Physical disability.
 Mental disability.
 Age.
 Source of income etc.

Human rights serve to pull things together, joining together existing equalities legislation into
a more holistic framework. There is a range of ways that an organization connects with
human rights. At one end is to actively work or campaign for human rights to be upheld or
even improved. This supports a positive duty to respect human rights. e.g., taking positive
steps to promote and fulfill human rights.

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INTRODUCTION

An environment where everyone is treated with self-respect and value, where the talents and
skills of different groups are valued, and where output and customer service improves
because the workforce is happier, more motivated and more alert of the benefits that addition
can bring. The main focus of the study are to assess the role of human rights where every
individual has the opportunity to achieve their potential, where people treat each other with
respect and to cheer good relations between people of different backgrounds.

Objective

 The objective should state clearly what the employer wants to achieve.
 She/he should not be treated unjustly.
 Employer should not be discriminated on the basis of religion, creed and caste.
 Healthy and safe environment should be provided to every employ.
 An employ should not be threatened by any of his co worker with superior power or
force.

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WORKPLACE RIGHTS
Work is the most important and highly valued human activities in large part because it is
necessary for so many central human good. People get their livelihood through appealing in
different jobs. The most important interests to human well-being who are working are to be
protected by rights. This is the duty of the employers to provide them with legal and moral
rights basically needed like health, safety, privacy etc.

Generally workplace rights are divided into three types:

Legal rights:

Legal rights settled to employees on the basis of legislation or judicial rulings.

Example:

Employees have a right to a minimum wage, equal opportunity, to bargain collectively as part
of a union etc.

Contractual rights:

Employee rights might refer to those goods that employees are entitled to on the basis of
contractual agreement with employers.

Example:

A particular employee might have a right to a specific health care package, paid holidays,
pension fund etc.

Moral rights:

The idea of moral right is relevant in just those situations when central human interests are
exposed by the action of the others. The more important these interests are to human well-
being, the more likely we are to recognize that they should be protected by rights that make
impression duties on others to respect these interests. The education of the children is a moral
right of the employees.

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Now I am going to discuss the major rights of the employees which are in practice in today’s
industry world. These rights are fluctuating from nation to nation or country to country but
the basic moral rights are same in all over the world.

Right to work:

Right to work refers to work without joining the local union or taking any pressure. Some
time unions lift up the gap between labor and management but it can also be a bridge between
the labor and management. Union can be a cover sic power that can realize the labor to do
work. No one can restrict if an employee wants to join the union but if the employee doesn’t
want to be a part of union nobody can force him. It depends on employee whether he join any
union or not.

Health & safety rights:

International laws have given employees the right to refuse dangerous work and receive
correct reports relating to toxic substances at their work place. In U.S employees are
protected by the Occupational Safety and Health Administration (OSHA) against risky
working conditions. In some states, the employee has the right to say no to work even if the
harm is not life threatening. Following are some rights of employees under the law:

 Employees are allowed to strike to protest unsafe conditions.

 Employees cannot be hit back against for filing a safety complaint.
 All employers should furnish a workplace for the employee that is free from
recognized hazards.
 Employees can request paid time off to seek medical treatment during working hours.
 Employees can request eating facilities in areas that have not been exposed to toxic
substances.
 Employees must be provided personal protective equipment for their eyes, ears, head,
feet, and respiratory system.

Employer should provide the employees with safe environmental conditions like:

 A clean and orderly workplace.

 Suitable and clean drinking water.

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 Separate toilets for males and females.

 Hot and cold water available in rest rooms.
 Clean food service facilities.
 Healthy and pure food.
 Standard noise levels.
 Satisfactory lighting.
 Containers- sanitary and in good condition - for rotting waste.
 Elevators (if any) with smoking banned.

Employees should be provided with medical and first aid facilities like:

 Every employer must have a first aid box (or boxes) to deal with minor injuries, with
supplies approved by a consulting physician.
 Medical care should be available within a reasonable distance of the workplace. If
there is no clinic or hospital near the workplace, there should be someone at the
workplace who is trained to give first aid. If there is no person trained in giving first
aid, the employer must have a specific doctor on call when needed.

Unsafe working conditions:

 Performing work at the work place that creates a real danger of death or serious
physical injury.
 Employer’s refusal to correct the problem and make the working conditions safe.
 There isn't enough time to get rid of the existing danger through other means, such as
requesting an OSHA inspection.

RIGHTS AGAINST DISCRIMINATION:

Discrimination is a treatment or consideration based on class or category, rather than on an

individual's merits. It includes bias at the time of interviewing or hiring, promotion, job
assignment, termination, compensation etc.

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Types of discrimination:

1. Age discrimination:

A job applicant or an employee cannot be discriminated against because of his/her age.

Following are some of the actions proscribed by law:

 Rejection of a particular job to a qualified applicant on the basis of age.

 Firing employees because of old age and recruiting younger people in their place.
 Rejection of promotions, transfers, or assignments because of age.
 Forcing older employees to take early retirement.
 Making age-related remarks.
 Punishing older employees with reduced privileges, employment opportunities, or
compensation.
 It is unlawful to include age preferences, limitations, or specifications in job notices
or advertisements.

2. Gender discrimination:

Protection against gender-based discrimination expands to all aspects of employment,

including hiring, firing, pay, pensions, conditions of employment, and promotions. The law
specifically permissions that each sex receive equal pay for equal work, which is defined as
work requiring substantially the same skill, effort, or degree of responsibility.

Biased practices:

 Job advertisements reject women a chance to apply for a job.

 The employer declines to hire women who have children, while hiring men with
children.
 Female employees are asked to resign when they get married, but there is no similar
requirement for males.
 The employer expands benefit plans to the male employee's partner, but refuses to
expand the same or similar benefits to partners of female employees.

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 Qualified female employees are rejected certain jobs without a reasonable opportunity
to show their ability to perform those jobs, which are labeled as men’s domains.
 The employer refuses to hire, train, assign jobs, or endorse pregnant or married
women, or women of childbearing age, on the basis of gender.
 The employer makes a separate policy of compulsory retirement for female
employees, with a lower retirement age than for male employees.

Laws mandate that there should be no differentiation between a female & a male employee,
and require:

 Equal pay for equal work.

 Equal treatment at the work place.
 Uniform policies for both female and male employees.
 Standard procedure for females and males in all phases of the employment
relationship.

3. Race Discrimination:

Race discrimination includes discrimination on the basis of race, color, or ethnic origin. Race
discrimination also includes discrimination on the basis of physical characteristics linked
with a particular race. Equal employment opportunity cannot be rejected because of marriage
to, or relationship with, an individual of a different race; membership in, or relationship with,
ethnic-based organizations or groups; or attendance or participation in schools or places of
worship generally linked with certain alternative groups.

Discrimination committed by some employers:

 Paying lower salaries and other compensation to blacks and Hispanics.

 Engaging in a quota system.
 Rejecting promotion on the basis of race or color.

Because of race and color employer can’t:

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 Deny an applicant a job.

 Set different wage rates.
 Pay non-whites less.
 Reject transfers, promotions, or assignments.
 Punish employees with reduced privileges, employment opportunities, or
compensation.

4. Religion based discrimination:

An employer can’t discriminate his employees on the basis of their religion. Law forbids
workplace religious discrimination, and requires employers to logically provide
accommodation the religious practices of employees and prospective employees.

Employee's rights:

 Employers cannot schedule examinations or other selection activities in conflict with

a current or prospective employee's religious needs.
 Employers cannot ask about an applicant's future availability at certain times.
 Employers cannot maintain a preventive dress code.
 Employers cannot refuse to allow ceremony of a Sabbath or any religious holiday,
unless it causes undue hardship on the employer.

5. Physical disability discrimination:

A qualified employee or applicant with a disability is an individual who, with or without

reasonable place, can perform the essential functions of the job in question. So an employer
should not discriminate an employee because of physical disability

An applicant cannot be asked questions about the existence, nature or strictness of the
disability, but may be asked about his/her ability to perform specific job functions. A job
offer may be conditioned on the results of a medical examination, but only if the examination
is required for all the entering employees in similar jobs. Medical examinations of employees

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must be job-related and uniformly applied to all employees and consistent with the
employer's business needs.

Accommodations related to job provided to the employee with disability:

 Reform or modify work schedules.

 Offering part-time employment.
 Allowing the employee to work at home.
 Reassigning an individual to a available position.
 Providing readers or interpreters for blind or deaf persons.
 Obtaining or changing equipment or devices. .
 Adjusting marginal job requirements.

6. Language discrimination:

According to the laws an employer can’t discriminate his employees on the basis of their
language. But if a post needs a specific language then employer should provide
accommodation to the employee.

7. Caste discrimination:

This is a problem which only occurs in Pakistan. Employers and bosses are use to hire the
people on the basis of their castes not on the basis of merit. Govt. organizations are harshly
damaged by this practice.

To avoid this problem Govt. should make some policies which discouraged the castism in the
businesses.

COMPENSATION RIGHTS:

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Working & Payment:

Employees do not work for employers for the sake of charity, but for monetary and other
benefits (e.g., insurance). They expect regular paychecks in replace for their efforts.

Minimum wage:

Minimum wage is a limit on the employers that they can’t give the wages to employees less
then that limit. There are different wage limits in different countries. In Pakistan the
minimum wage for unskilled is Rs. 4,000 and for skilled is Rs. 6,000.

Increments:

There is a certain inflation rate in every country. This increases the cost of living year by
year. So, to reimburse this cost employer must increase the wages of his employees according
to the inflation rate.

Overtime payments:

International rules say that if an employee works overtime then his per hour wage is doubled
then the normal per hour wage.

Sales commission:

A sales commission is a sum of money paid to an employee upon achievement of a task,

generally selling a fixed amount (or more) of goods or services. Employers sometimes use
sales commissions as incentives to increase worker output. A commission may be paid in
addition to a salary or as a replacement for of a salary.

Vacation pay:

The terms and conditions of vacation pay depend exclusively on the employer's policy and
terms. They may extend the benefit to part time employees or reject it. Employers are also
free to set limits on how much paid time off employees may save, before it must be taken or
lost. However, if the employer is contributing vacation pay, it has to be offered to all the
employees on the same conditions and terms, and no employee should be differentiated
against because of sex, religion, age, race, disability, etc.

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Stock options:

A stock option from an employer gives the employee the right to buy a specific number of
shares in the company at a fixed price for a certain number of years.

Annual leaves:

It is a right of the employee that he should be allowed for the paid leaves in a year.
International standard is that an employee is allowing for 30 to 45 days paid leaves in a year.

Break time pay:

It is the right of the employees that they should be paid also for the break time which contains
lunch break, tea break and (in case of over time) dinner break.

EMPLOYEES PRIVACY:

Privacy right gives defense to the employees against attack of privacy by employers.

Employee can take legal action the employer for assault of privacy. It mostly covers four
factors:

 Privacy rights: interruption - The employee has the right to be left alone, and there
should be no unwanted or unfair interruption into his/her personal space. This right
can clash with searches and keep an eye on activities.
 Privacy rights: private affairs - Unwanted or unreasonable publicity regarding the
employee’s private life or affairs, or disclosure of personal or medical information.
 Privacy rights: defame - For example, publicity or the release of misleading or
inaccurate information by the employer that defames the employee and puts him/her
in a false light before the public.
 Privacy rights: cheating of name - use wrongly of employee’s name or likeness
without permission, for the benefit of another.

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Polygraph testing:

These rights exclude most private employers not only from requiring job applicants or
employees to submit to a lie detector test, but even from requesting that they take one.

Employers cannot ask applicants or employees to feel a polygraph test as a condition for
getting a job or keeping a job. If employers or prospective employers ask individuals to take a
lie detector test, they are prohibited from disciplining, discharging, or otherwise discerning
against individuals who say no to take it. Employers cannot hit back against applicants or
employees for filing a complaint or otherwise claiming their rights under the law.

Medical record discovery:

This right not permitted discovery of an employee’s medical records as well as the illegal
attainment of medical information. Some laws require that an applicant or employee not be
charged the cost of an employer-requested physical test and given a copy of the result.

This law also said that:

 The employee has considerable rights in the event that if secret medical information is
conveyed to outsiders without the permission or knowledge and is used to the
employee’s disadvantage.
 Medical data, all information related to the employee’s health, judgment and
treatment of illness or any information exposed during medical sessions must be
maintained in the strictest confidence to keep away from violations of state privacy
laws.
 Medical records should be kept separately from personnel records.

Backdrop checks:

International laws allow backdrop checks for certain jobs, as long as the checks are
applicable to the job for which an employee is being hired. These include jobs involving
security, trade secrets, health care, and child care. Central and state laws of U.S prohibit

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employers from gathering or using certain types of background records. Most employers ask
for the applicant’s permission for the backdrop check in advance and in writing (though often
it’s hidden in small type at the end of the application form). Employers do not have the right
to dig into an applicant’s or employees personal affairs; they have the right to privacy on the
subject of personal matters.

WHISTLE BLOWING:

When an employee discovers unethical, morally wrong or unlawful actions at work, the
employee makes a decision about what to do with this information. Whistle blowing is the
term used to define an employee’s decision to disclose this information to an authority figure
(boss, media or government official).

Whistle blowing guides to good and bad results. First, the benefits of carefully considered
whistle blowing can guides to the end of unethical business practices. The lives of individuals
and whole communities have been saved by whistleblowers. Severe damage to the
environment has been stopped by the actions of one individual who blew the whistle on an
unethical employer. The actions of whistleblowers are potentially beneficial to society.
Businesses that engaged in unethical practices have been shut down because of the actions of
whistleblowers. Lives have been saved, and severe damage to the environment has been
averted because of the courage and persistence of whistleblowers.

At the same time, an employee who witnesses’ unethical business practices at work may want
to think carefully before making the decision to inform an power of the practice. The
penalties of whistle blowing are often extreme and include possible firing, civil action, or
even custody. Furthermore, an employee may want to go after the rule of "chain of
command" – that is, begin to talk about issues of whistle blowing with his or her urgent
supervisor first, before thrashing out the matter with anyone else.

EMPLOYEES POLITICAL RIGHTS:

If the employee has been involved in political activity outside of work, he/she cannot be
questioned about his/her political association or political group membership at the time of

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appointing process. He/she cannot be restricted or discharged for favoring a particular

political party or contributing in any political activity after working hours and outside the
workplace.

Under this right the employees can be:

 Applicants for public office in unbiased elections.

 Register and vote as they choose.
 Help in voter listing force.
 Express opinions about applicants and issues.
 Add money to political organizations.
 Attend political fundraising functions.
 Attend and be active at political rallies and meetings.
 Join and be an active member of a political party or club.
 Sign suggesting appeals.
 Campaign for or against referendum questions, legal changes, ad municipal
regulations.
 Campaign for or against applicants in follower elections.
 Make campaign speeches for applicants in partisan elections.
 Hand out campaign writing in partisan elections.
 Hold office in political clubs or parties.

RIGHTS AGAINST HARASSMENT:

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To “harass” means “to irritate or torture determinedly; to bully.”

Every employee is entitled to freedom from harassment in the workplace. It is illegal when an
employer or an employer’s agent (e.g., supervisor; foreman) harasses an employee without a
just cause.

The law does not spell out the kind of behavior an employer can use. But unlawful
harassment is defined as oral or physical behavior which degrades (defames; attacks the
reputation of) or shows aggression or hate to an individual because of that person’s race,
creed, color, religion, gender, national origin, age, disability, or marital status, and which:

 has the purpose or effect of unreasonably snooping with that person’s work or
performance, or
 has the intention or effect of generating an threatening, hostile, or unpleasant work
environment, or
 Otherwise unfavorably affects that individual’s employment opportunities.

In general, harassment is any form of behavior that is unjust and

 makes the employee feel shamed (the behavior puts him/her down),
 insulted, or
 Frightened.

There are two types of harassment.

Sexual Harassment:

Sexual harassment can take place in a mixture of conditions, including, but not limited to, the
following:

 The victim as well as the harasser may be a woman or a man. The victim does not
have to be of the reverse sex.
 The harasser can be the victim's supervisor, an agent of the employer, a supervisor in
another area, a colleague, or a non-employee (e.g., a customer or supplier).
 The victim does not have to be the person harassed, but could be anyone affected by
the unpleasant behavior.

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 Unlawful sexual harassment may take place without financial injury or ejection of the
victim.
 The harasser's conduct must be undesirable

Race harassment:

The race-related harassing acts are when an employee is subjected to cultural insults, cultural
jokes, or hateful comments or comments based on race, or when he/she is scared, exposed, or
shown enmity or physical hostility, because of his/her different race, color, etc. Also
included: insulting, or vulgar remarks or gestures made by a person to another, which have
the effect of aggressiveness and undignified the victim; critical remarks or actions relating to
an individual’s race, cultural origin, nationality, or skin color, and the sufferer considers the
remarks offensive, creating an unpleasant work environment or snooping with the victim’s
work performance.

Examples of race harassment:

 Insensible jokes;
 vulgar comments about appearance;
 Insulting or shameful abuse; insults which are gender-related or of a cultural nature;
offensive comments about dress, appearance, physique, hygiene, etc.
 separation or non- cooperation at work; keeping out from social activities;
 oral or written harassment through jokes, hateful language, talk, insult, or letters;
 Persistent disapproval; personal abuse; harassment; mock; or persistent decline by
those in positions of power.

LABOR UNIONS:

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Labor unions are shaped to build a good and healthy relationship between employers and
employees. They work as an agent of both the parties. They express the demands and wishes
of employees to employers and then together deal for them. Labor unions can increase or
decrease the gap between employees and employers. They are shaped for group good dealing.
If they work properly and professionally then they can protect the rights of both parties. So
we can say that if there is a good relationship between the employer and union then there is
great possibility of company’s success and its long-term good image in costumers.

CASE STUDY

Promise Protection for Brian

Brian is engaged by T-ek, Inc. and is orally promised that he will receive 20,000 stock
options with a value in excess of $100,000. Brian is worried that if he takes the position and
quits his old job, he will sacrifice valuable unvested stock options with his former company.
When Brian asks for more guarantees relating to the stock options, he receives an offer letter
from T-ek, Inc. deliver that he will receive stock options as soon as the Board of Directors
endorses the plan.

Brian understands that there is always the possibility of future trouble ahead. After he
receives the offer letter from T-ek, Inc., he writes back and asks for a guarantee that he will
receive a $100,000 bonus at the end of twelve months if the stock option plan has not yet
been set up by the Board of Directors.

Brian receives a second follow-up offer letter providing him the guarantee he requests, and
Brian takes the new job. It turns out the new company never sets up a stock option plan, and
Brian at least gets to collect his bonus.

CASE STUDY
PLUM QINGQI is the China based multinational company. It is the largest auto rickshaw
manufacturer in Pakistan. Since they are working in Pakistan they were very less concerned

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about the rights of their labor. They were giving wages which were less than the minimum
wage limits, they were not giving the lasting jobs even to those employees who were working
for them from 5 to 6 years, and they were not giving the additions and bonuses according to
the labor laws. 5 months ago company received an order of Rs. 2 billion from NBP. At that
time company were facing economic stresses so that order was like a breeze for them, they
put more pressure on the labor to fulfill the order in time. Labor were not happy with it and
they smack that very same day when the president of NBP were visiting the factory. That
strike spoiled the trust of the company and now NBP have pledged the plant of the company
as security.

CONCLUSION

Every human being has the right of liberty and equal opportunity to work. The problem
which we are facing right now is about the discrimination in work. This can be seen that most
of the organizations contaminated with the favoritism virus and there is no cure of this
serious disease. Especially in Pakistan there are laws for work ethics or liberty of the workers
but no one care about that. Female workers face harassment during work by different means
of communications. So it’s very important to overcome the ethical issues regarding
organizational environment and progress towards the betterment of organizational behavior.
If every employees sure about the security of his/her rights then he/she will definitely prove
to be long term asset for the organization.

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