Essay on Business Ethics - Prohibition against Competition

There are certain types of contracts that are known as contracts of adhesion.  This is because these contracts are pre-prepared and pre-printed documents made by one party by which the other party has no other participation in this contract except to adhere or give consent to the contract.  Among the examples of these contracts are contracts of employment and contracts of insurance.  It is common to see stipulations in these types of contracts that are completely favorable to one party and unfavorable to the other party.

One such example is the stipulation in the contract of employment against competition.  Some contracts are usually stipulated in this manner, to wit: “the employee unconditionally and irrevocably agrees that he shall not directly or indirectly, whether as an individual or as a syndicate, as a director, stockholder, owner, partner, employee, principal or agent, or in any other capacity, as of the Commencement date and until the first anniversary as of the termination date shall for its own benefit or that of a third person, be employed by, or act as a consultant, or lender to or be a director, officer, employee, principal, licensor, trustee, broker, agent, stockholder, member, owner, joint venturer, enter into partnership, have any sort of remunerated or unremunerated relationship of any nature, or permit his name to be used in connection with, or any of the activities of any other business or person which is engaged in the same business as the business of the employer.”

In simple terms, the contract prohibits the employee from being connected with another company which is engaged in the same business as his former employer.  I feel that this stipulation is improper because it deprives the employee of his opportunity to look for a suitable employment.  It deprives the employee of the chance to look for greener pasture elsewhere.  It can be argued that this stipulation violates the provision in the US Constitution which protects the right of the people to life, liberty and property. (Fifth Amendment 2) Looking for better options from other companies to earn a decent living is a property right which is protected by law.  This is most prejudicial in cases where the employee, for example, was terminated by the company.  In these situations, the employee cannot take advantage of his work experience in his previous employer for fear of violating the said stipulation in his contract and being sued for damages for breach of contract. 

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However, it can also be argued that there could be no violation of the US Constitution in the sense that the stipulation in the contract does not completely deprive the employee of his property right.  It bears stressing that the prohibition does not absolutely prohibit the employee from accepting employment elsewhere.  The contract only prohibits the employee from accepting employment in a competitor for one year from the date of the employee’s termination.

From the point of view of Utilitarianism, this act can be considered ethical.  Based on this principle, the rightness or the wrongness of an action only depends on the consequences of an action.  (Encyclopedia Britannica 1)  The stipulation can be considered ethical because this contract which is also applied by other companies ensures that they are protected from any act of their employees that can prejudice their business.  In the end, every company will be benefited.  The company’s trade secrets are protected.  It ensures that the employee will not be able to share any information that the employee may have learned while he was still employed with the company.  This stipulation protects against the possibility of company secrets and methods may be used by its competitors against it. 

From the point of view of deontological theory, the act itself without regard to any consequences is unethical.  (Larry Alexander 2) It does not matter that the reason for such stipulation is the protection of the companies.  It is clear that the act alone of depriving someone of his opportunity to earn a decent living is unethical. 

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Essay on Business Ethics

One of the most common concerns in the workplace is the issue of the employees being mistreated by their employees.  Employees often complain about being used for the sole purpose of promoting the employers’ business.  Many of them feel that they have lost their individuality as they ceaselessly perform the rituals of their monotonous tasks at work.  I empathize with the employees who have expressed this sentiment. 

In my line work, I do basically the same thing everyday.  I come to work at almost the same time everyday and leave office at almost the same time.  I perform similar tasks basically everyday which for me has become very toilsome.  On top of these dragging tasks are the company’s policies which I feel violate by basic rights as a human being.  These policies should be observed otherwise, serious consequences may result. 

Our company records every phone conversation an employee makes.  In justifying the use of recording device at work, the company argued that it is necessary to improve the level of customer service we employees give to the customers.  For them, having a phone conversation recorded between an employee and a customer forces the employee to be polite and give his best performance. 

Our company also employs various technologies to know what their employees are doing.  For this reason, our company has CCTV cameras inside our office.  These CCTV cameras see to find out whether the employees are devoting their work hours for the benefit of the employees.  They also have software in our computers that allows the IT staff to monitor the websites that the employees are viewing on the web.  The company also monitors the use of company email in line with its strict policy against improper use of time by the employee.   

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I feel that the company policies being used by my employer is very restrictive on my right as a human being.  I understand that employers need to monitor the activities of their employees for the purpose of ensuring that company policies are being observed.  I also understand that making the employees feel that they are monitored will force the employees to devote their time to working.  I also understand that without the CCTV cameras installed there will be situations when the employee during work hours will leave his workstation or he will stay in his workstation and visit non-work-related websites.  I also understand that the strict monitoring is being done to protect the company against sexual harassment suits that the company may be held liable.  For example, there was a case in San Francisco wherein the jury awarded the amount of more than $7M to a legal secretary harassed by a male partner in a law firm for failing to act swiftly on a sexual harassment complaint (Gerald D. Bloch, 1995, p.1).

However, I believe that the strategy being used violates my privacy rights as an individual (Privacy Rights Clearinghouse, 2011, p.1).  Employees need not be monitored at work.  They are responsible enough to deliver what the company expects from them.  Monitoring of employees is not necessary.  I believe that there are other strategies that companies may use to make sure that they get the most of their employees.  Violating their privacy rights is not one of them. 

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