Common Issues at the Workplace (Chapter 7) - Comprehensive Notes

Whistle-blowing

• Definition: Whistle-blowing is the release of information or evidence of immoral or illegal behaviour by an employee or former employee of an organization to someone within the organization who has the authority to investigate, prevent and punish the perpetrators.
  

• Scope: Occurs when a (past or present) member of an organization voluntarily reports such information. It is not whistle-blowing when an employee spreads gossip about others or takes retaliatory action for reprimands.
  

• Who can blow the whistle: A whistle-blower can be any (or former) employee who is in positions of power and privy to confidential and sensitive information. It can also involve reporting a superior’s wrongdoing to someone else in a position of authority within the organization.

• Aims: The aim is to prevent harm to others or to the organization as a whole, rather than securing personal interests.

• Policy and process: Organizations should encourage internal whistle-blowing by ensuring a clear and comprehensive whistle-blowing policy and procedure. Employees should be encouraged to report wrongdoing or illegal practices, and their identity should be kept confidential.

• Internal vs External whistle-blowing:

  • Internal: Reports evidence of wrongdoing to someone of authority within the organization (not the immediate superior/CEO) with expectation that action will be taken.

  • External: Reports to external parties such as law enforcement agencies or the media.

• Justifications for whistle-blowing:

  • The reporter is motivated by an appropriate moral motive.

  • The internal channel or immediate supervisor failed to act appropriately.

  • There is strong or credible evidence of wrongdoing.

  • There are good reasons to justify blowing the whistle.

• Practical implications:

  • Establish and enforce clear whistle-blowing policies to protect reporters from retaliation.

  • Maintain confidentiality of the reporter’s identity where possible.

  • Balance organizational protection with public interest and legal compliance.

Employee Theft and Trade Secrets

• Trade secrets (definition and value): A trade secret is valuable information that a company has spent money to acquire or develop, giving the organization a competitive edge. The World Intellectual Property Organization (WIPO) defines a trade secret as any confidential business information, including manufacturing or industrial secrets, that provides a competitive advantage. Trade secrets may be exposed to competitors via commercial espionage (e.g., breach of contract where employees or others with knowledge of such information release or sell it for personal benefit). ext{Trade secret}
  ightarrow ext{confidential information giving competitive edge}

• Dimensions of Employee Theft:

  • Employer’s physical assets: stealing, use, or misuse of employer assets without permission.

  • Larceny: taking personal property permanently without consent.

  • Embezzlement: theft by someone in a position of trust with access to cash/properties.

  • Skimming: taking cash from an employer before it is recorded.

  • Fraudulent disbursements: using employer systems and procedures to benefit oneself through four schemes:

• Conflict of interest (definition and implications): Occurs when employees have personal interests that interfere with promoting their employer’s interests. Employees prioritize personal gain over job duties, potentially harming the employer’s interests. Malaysian legal framework: Preventing conflicts of interest falls under the Malaysian Anti-Corruption Commission (MACC) and the Companies Commission of Malaysia (SSM).

• Additional conflict of interest concepts:

  • When an employee uses an official position for personal financial gain or for a company in which they have a financial interest.

  • When external interests may inappropriately influence duties.

  • When bribes/kickbacks are received or given.

  • When employees receive gifts, entertainment, hospitality, and other benefits from clients or business associates.

  • Direct competition with the employer, insider trading, or use of confidential information for personal gain.

• Types of conflict of interest in the workplace:

  • Potential conflict of interest: an interest that could affect decision-making but has not yet influenced a decision.

  • Actual conflict of interest: an interest that could influence a decision and for which the employee has the authority to decide.

Privacy

• Defining privacy (three classic definitions):

  • The right to be left alone (Warren and Brandeis).

  • The claim of individuals to determine when, how, and to what extent information about them is communicated (Alan Westin).

  • The condition of not having undocumented personal knowledge about one possessed by others (W. A. Parent).

• Why privacy is a contemporary issue:

  • Violations occur when others know personal information without consent.

  • ICT progress, extensive data collection for organizational decision-making, and growth in database marketing amplify privacy concerns.

  • Social media accelerates sharing of personal information, views, criticisms, or gossip.

• Difference between privacy and surveillance:

  • Surveillance = systematic investigation or monitoring of actions of individuals; essentially spying on activities.

  • Privacy at the workplace is a negative right (freedom from outside interference) as a human right.

• Individual privacy in the workplace:

  • Employers may use information about employees for policy compliance, but privacy laws limit intrusions. Employees are also a resource/input and may be considered intellectual property of the employer.

• Consumer privacy:

  • The threat from database marketing: transaction data is used to create lists for direct mail and telemarketing.

  • Ethical debate: why monitor purchasing habits? Proponents cite business strategy; critics emphasize rights and consent.

• Ethical frameworks for protecting privacy:

  • Utilitarian perspective: balance harms to employees against benefits to the organization; transparency and honesty improve acceptance.

  • Kantian perspective: invasion of privacy violates autonomy and respect for persons.

  • Islamic perspective: privacy as a human right and a value aligned with dignity and autonomy; religious rationale supports protection of privacy.

• Globalization and workforce diversity:

  • Global workforce diversity arises from cross-border mobility and trade liberalization.

  • Discrimination and affirmative action: diversity considerations intersect with privacy, rights, and equality.

Discrimination and Affirmative Action

• Forms of discrimination:

  • Gender discrimination (including sexual harassment)

  • Religion discrimination

  • National origin

  • Age discrimination

  • Health status (handicap, etc.)

  • Unjust acts such as stereotyping that deprive equal access to opportunities.

• Affirmative action:

  • Policies that consider race, color, religion, gender, sexual orientation, or national origin to benefit unrepresented groups in employment, education, and business, often justified as countering historical discrimination.

• Ethical arguments for affirmative action:

  • Utilitarianism: maximize overall happiness and reduce harms of discrimination.

  • Principles of justice: fairness in distributing opportunities.

  • Principles of rights: equal rights require corrective measures where needed.

• Malaysian examples of affirmative action:

  • Meritocracy for Indian students

  • BR1M (Buck up? Social welfare program) to alleviate burdens of low-income groups

  • Zakat (almsgiving) as a social equity mechanism

• Management implications:

  • Managers should establish legal, fair employment practices that do not discriminate (Jackson et al., 1992).

Women at Work

• Trends:

  • Steady increase in the number of women in the Malaysian workforce; significant contribution to the economy as a human resource.

  • Socio-economic factors since the 1970s (economic development, export-oriented industrialization, higher educational attainment) have contributed to a shift toward dual-career families.

• Forms of discrimination and challenges:

  • Stereotyping women as sexual objects; unequal pay and prestige; limited promotion opportunities; non-acceptance by male colleagues; discrimination against pregnant women.

• Strategies to support women at work:

  • Flexible working arrangements

  • Career planning

  • Childcare centers/services at the workplace

  • Work-life balance training

  • Counseling services

  • Provision of information services

Employee Rights and Duties

• Overview: Employees have rights and duties within the organization; this topic covers the balance between protection of workers and duties to the employer.

• Practical orientations: ensure alignment with legal and ethical standards; protect dignity, safety, and fair treatment; participate in decision-making processes where appropriate.

Occupational Safety and Health (OSH)

• Regulatory framework:

  • Developed countries implement robust health, safety, and environmental regulations; enforcement and implementation are critical.

  • Malaysia’s Occupational Safety and Health Act 1994 places primary responsibility for health and safety standards on the employer, in addition to other relevant laws.
    ightarrow ext{employer responsibility

• Employer and employee duties:

  • Employers must provide safe working conditions, training, and protective measures.

  • Employees must follow safety procedures and participate in safety programs.

Due Process in the Workplace; Termination of Service / Unjust Dismissal

• Definition: Due process requires protection from arbitrary managerial actions in promotions, disciplinary hearings, and terminations.

• When due process applies: disciplinary procedures are warranted if there is clear and objective neglect of duties or breach of contractual obligations.

• Practical implications: fair hearings, transparent criteria, and documentation to justify disciplinary actions or termination.

Introduction to HR Management – Employee Relations

• Core idea: Managing employee relations is a key aspect of HRM; managers invest time and effort to sustain constructive economic relationships.

• Relationship dynamics: Employees and employers are interdependent; the relationship is not always harmonious and can raise ethical concerns for both parties.

• Principle: Both parties should play their roles appropriately to maintain a mutually beneficial relationship for the organization’s survival and success.

Notes on Practical Implications and Cross-cutting Themes

• Ethics in privacy and data handling:

  • Be transparent with employees about data collection, usage, and retention.

  • Respect employee autonomy while balancing organizational needs.

• Ethical decision-making frameworks to apply across topics:

  • Utilitarian considerations (greatest good, least harm)

  • Kantian ethics (duty, respect for persons, autonomy)

  • Rights-based and justice-based perspectives (fairness, non-discrimination)

  • Religious/Islamic ethical considerations in contexts where relevant

• Real-world relevance:

  • Policies on whistle-blowing reduce organizational harm and enhance accountability.

  • Clear definitions of trade secrets and robust anti-theft controls protect competitive advantage.

  • Privacy protections support trust and comply with legal standards; consumer privacy influences brand reputation.

  • Affirmative action and women-at-work strategies address inequality and improve diversity and productivity.

  • Occupational safety and due process are essential to lawful and humane workplace operations.

Connections to prior/following content

• Ethical theories on privacy align with broader discussions of rights, autonomy, and social justice explored in earlier chapters.

• The discussion of discrimination and affirmative action connects to utilitarian, justice, and rights-based arguments developed in the course.

• Workplace safety links to broader regulatory compliance and corporate responsibility themes discussed in previous modules.