5.3.3 Ethics and the law
Some theorists, especially political theorists, argue that the purpose of business not only is to make money but includes a range of other factors such as productive employment, economic maintenance, co-operative pursuit of goals, occupational pursuit, and the application of aptitudes and skills for individual self-fulfilment. Considering the number of texts written on the value of human knowledge and people being the heart of competitiveness, ethical consideration can be a very strong force for forging staff commitment. That is, there may be a legitimate purpose in upholding ethics within an organisation because it harnesses and motivates individuals towards outcomes that also deliver bottom-line or performance indicators.
Legal imperative is not related solely to environmental, financial or contractual concerns. The executive leader often holds direct and personal responsibility for organisational actions. Beyond responsibility to external parties, all leaders have an interpersonal obligation under law to communicate ethically as the following cases demonstrate.
Case 1
Supervisor X had always been keen to avoid confrontation with fellow staff members. When conducting appraisals or meetings Supervisor X recognised that criticism or direct challenges to a person's working capabilities can be very damaging and in some cases, lead to legal action against an organisation. At best, such practices will undermine confidence and morale in the team.
Supervisor X therefore held a personal values base that saw confrontation as possibly counterproductive to collective purpose.
Unfortunately, one employee whose performance was below standard was continually rated as 'average' by Supervisor X on workplace review sheets (cyclic review of observed performance on standard customer service tasks). When the employee was later dismissed by the company for repeated complaints received from customers, the employee successfully argued that no prior indication of unsatisfactory performance had been received and therefore there had been no reason for him to improve it.
Case 2
In a second case, an employee with a disability was constantly rated as average when the supervisor completed the quarterly performance appraisals. Despite claims by the employee that their performance was superior and consistently met customer requirements, the supervisor graded performance over the appraised period as only average. For promotion the employee was required to achieve superior or excellent grades for at least two consecutive quarters. After three years the individual placed a formal complaint with the relevant government agency enforcing anti-discrimination and equal opportunity legislation. The case was upheld.
The employee demonstrated to an independent external assessor that they were able to complete their work tasks to a level that should be graded excellent. The company and the supervisor (the third who had supervised the employee in the three years) contested they were enforcing not just performance but performance indicators that related to standards requiring a certain numbers off forms and tasks be completed in a working day. The employee consistently attained 10 per cent below the requirements for the office.
The commission found that the performance indicators were discriminatory and had not been considered in light of disabilities of the employee/s. However, the decision actually stated in the cause for upholding the complaint revolved around the performance appraisal process. It was found that the supervisor(s) had not used the appraisal process for the purposes of enforcing standards relating to improved organisational performance. Should they have done this, the company would have identified the problem and instigated a solution. This would in turn have raised performance and overall standards of customer service and competitiveness. Training of supervisors in how to effectively communicate with staff during appraisal processes and report improvements to management was recommended. (See also CCH Publishing, 1988:107-86.)
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