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Corporate Social Responsibility in Family Business

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Family Business

Topic: Compensation/Discrimination
Characters: Jane, Manager, Payroll Department for R&S Electronic Service Company
Brad, Owner of 1tdcS Electronic Service Company
Eddie, General Manager
Greg, Service Technician and Eddies brother

Jane has just been hired as the head of the Payroll Department at R&S Electronics Service Company, a firm of 75 employees. She was hired by Eddie, the General Manager of the company, who informed her of the need for maintaining strict confidentiality regarding employee salaries and pay scales. He also informed her that he fired the previous Payroll Department head for breaking that confidentiality by discussing employees' salaries. She was also formally introduced to Brad, the owner, who told her to see him if she has any questions or problems. Both Brad and Eddie made her feel welcome.

After three months of employment, Jane begins to wonder why Greg makes so much more in commissions than the other service technicians. She assumes that he must be highly qualified and must work rapidly because she has overheard Brad commending Greg on his performance on several occasions. She has also noticed Brad, Eddie, and Greg having lunch together frequently.

One day, Eddie gives Jane the stack of work tickets for the service technicians for the upcoming week The technicians are to take whatever ticket is on top when they finish the job they were working on. After putting the tickets where they belong, Jane remembers she has a doctor's appointment the next morning and returns to Eddie's office to tell him she will be reporting late for work. When she enters Eddies office, she sees Eddie give Greg a separate stack of work tickets. As she stands there, Eddie tells her if she mentions this to anyone, he will fire her. Jane is upset because she understates that Eddie is giving the easier, high-commission work to his brother. Jane also realizes that Eddie does have the authority to hire and fire her. Since she has only been at the company a short time, she is also still on probation This is her first job since college. She wonders what she should do.
Author: Dr. Marilyn M. Helms, Associate Professor of Management, University of Tennessee at Chattanooga.

Prepare a three-page analysis answering the questions on the following page:

? Who are the stakeholders in this case?
? What are the interests of the stakeholders?

Legal Analysis
? Do any of the labor or employment laws from the eGuide apply to this case?
? If they do apply, analyze the legality of the corporation's actions in this case.
? If the laws do not apply to the actions in this case, explain why they do not apply.

Ethical Analysis
? If the decision maker applied the categorical imperative theory in this case, what would the result be, and why?
? If the decision maker applied the utilitarian theory in this case, what would the result be, and why?
? If the decision maker applied the rights theory in this case, what would the result be, and why?
? If the decision maker applied the justice theory in this case, what would the result be, and why?

Conclusion and Recommendation
Based on the previous page, as well as what you have learned about ethical theories and foundations of moral development, what is your final recommendation to the corporation regarding this case? Your recommendation should be at least two paragraphs and include at least three reasons, with specific references to course material, stating how you arrived at that conclusion.

The paper needs to be double spaced and in APA format.

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Solution Summary

By addressing the questions, this solution assists with the case about compensation/discrimination. References provided in APA format.

Solution Preview

One approach to help you with this assignment is to address each question, which you can then draw on for your final copy. Given the number of questions, I will leave the questions in for organization of the response and easier understanding. This is the approach this response takes. I cited the eguide as the eguide, but you will need to use the author's name and the date of publication.

I. Introduction

? Who are the stakeholders in this case?

In this scenario, there are several stakeholders: First, the employees are the company's main shareholders and often represent the single largest internal stakeholder of a business organization. The employers, the company and society are other shareholders in this scenario.

? What are the interests of the stakeholders?

The employee stakeholder often relies on the business organization for the income necessary to obtain shelter, clothing, and food. Therefore employees interest if supplying of a pay check to cover their basic needs.

The business organization's interests are to make money and be as profitable as possible.

The employers, on the other hand, have both the organization interests of being profitable and personal interests to also obtain things like shelter, clothing and food that depend on the organization and the employees.

Society is also a shareholder who has an interest in protecting society, the community at large and employees from ethical and/or legal violations by the more powerful corporation. Although the business cannot function without the employee, if the business should violate the legal rights of the employee, the business may be subject to substantial liability.

II. Legal Analysis

? Do any of the labor or employment laws from the eGuide apply to this case?

There are legal laws that apply in this case, whereas others clearly do not apply. These employment laws are to level the playing field between the business and the employees to protect the employees. from certain mistreatment because of the power difference. Key aspects of employment law includes: the at-will employment doctrine, affirmative action, the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Occupational Safety and Health Act, and the Family Medical Leave Act (Eguide, year?).

What labor or employment laws apply to this scenario? Nepotism is not against the law unless it Jane can eight prove discrimination based on being in a protected group or not being in a protected group, which is often referred to reverse discrimination. However, this does not seem to be the case in this scenario (see See a question and answer about nepotism at URL: http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=00CjpN).

However, the at-will employment law-the exceptions to the principle "termination for just cause or no cause" might apply in this scenario because Jane had only been at the company a short time, she is also still on probation and in good faith, society, in good faith, believes that an employer will be fait in assigning jobs in the workplace. According to the eguide, for example, the third exception to the "termination for just cause or no cause" principle could apply to this scenario. It states that an employer may not claim that a termination was lawful under the employment at-will doctrine if the termination violates the implied contract exception (i.e., the termination violates an implied contract right of the employee). For example, an employer's handbook states that no employee will be terminated during a probationary period of one year. This gives the employees the impression that they cannot be terminated, even for cause, within their first year, thus creating a contractual understanding. Americans historically value the legitimacy and enforcement of contracts. Therefore, an employer's termination of an employee who relied on this implied contract would be a violation of the implied contract ...

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