Legal and ethical issues in the business environment - Coursework Example

Legal and ethical issues in the business environment number: Introduction The paper focuses on legal and ethical implications of substance misuse at workplace which has become a reason for increasing concern in organizations in various countries. The role of substance misuse in violating organizational ethics has been discussed in the following sections as well as the situation has been evaluated from the perspective of different ethical theories so that appropriate legal measures can be proposed. Three theories of ethics have been discussed in the paper to justify steps that an employer can consider in such situations and certain recommendations have been proposed so that situation of substance misuse at workplace can be resolved appropriately. Description of the business situation The growing complexity in the business world has brought forward a serious problem that is growing at a rapid rate among numerous working individuals. The issue that is the primary focus of this paper is drug and alcohol abuse at workplace. In the light of current business scenario, use of drug and alcohol is growing steadily and can take the shape of a serious issue at workplace in the near future. Drugs and alcohol not only have negative impact on health of individuals who consume it but can prove hazardous for others present in the surrounding environment of the particular individual (Lowinson, 2005; Ghodse, 2005). Workplace problems are posed by consumption of illegal drugs as well as by misuse of legal prescription drugs and alcohol. It has been found in recent studies that legal drugs that have been prescribed by doctors can have strong impact on a person’s working capabilities such as level of concentration and alertness. Additionally, numerous individuals were also found to be heavily dependent on certain drugs for living a normal life and cannot function without the same. Consumption of alcohol and drugs socially may not have direct effect on the performance of an individual, however, if an individual attend work under the influence of these substances, it may result in adversity in terms of performance and productivity (Lowinson, 2005). The discussed problem of substance abuse is not limited to lower level employees in an organization such as machine operator, drivers, emergency staff and site workers but can be observed at high level employees as well. Drugs and alcohol have psychological effect and often cause imbalance of mental wellbeing of individuals. In this context, it is noteworthy that drug and alcohol consumption during or before work hours and at workplace should be restricted unless certain medical condition of employee require the same. From human right perspective, an organization is not authorized to interfere in personal lives of employees unless the same has negative impact on productivity of employees. There is a fine line that distinguishes consumption of drugs due to medical reasons and substance abuse or misuse (TUC, 2011; Lowinson, 2005). Substance abuse can be defined as consumption of unacceptable level of drugs, alcohol and other substances. Regarding alcohol, such level of consumption is termed as binge drinking. Substance abuse takes in consideration misuse of prescribed as well as non-prescribed drugs (Lowinson, 2005). According to National Council on Alcoholism and Drug Dependence (n.d.), at least 70% of 14.8 million working individuals are consumers of illegal drugs and drug abuse cost about $81 billion to employers annually in the United States. On the other hand, substance misuse at workplace cost economy of the United Kingdom about £2 billion every year. Additionally, European drug report suggest that about 85 million adults abuse drug at some point of life and over 3 million individuals consume the same on regular basis (EMCDDA, 2014). These surveys suggest that drug and alcohol abuse at workplace is not limited to a particular location and can be observed in different nations, including the highly developed economies. Ethical issues related to drug and alcohol abuse at workplace Alcohol and drug abuse at workplace is a major concern from ethical perspective because workplaces tend to present a reflection of ongoing activities in the society. Besides workplace issues, excessive indulgence in substance (solvent and insolvent) abuse are considered as social problems as well. According to a survey by DrugScope, 27 percent of employees supported that drug abuse and binge drinking causes problem at workplace while about 60 percent workers agreed that they faced problem at work due to such habits of co-workers (EMCDDA, 2014). According to International Labor Organization (ILO), drug and alcohol problems at workplace can induce several ethical dilemmas for employers. The ethical constraints comprise disciplinary action, dealing with illegal drug users and their competencies, sensitiveness of work environment, restriction and rehabilitating activities and prevention through various informational and training programs (ILO, 2011). From the ethical perspective, an organization face a number of challenges from workplace substance misuse such as declining productivity, inappropriate behavior with co-workers, destruction of organizational property, absenteeism, careless attitude towards work, stealing and heavy borrowing and ignorance towards precautions and safety measures. Such factors are considered within the purview of organizational ethics because organizational behavior is defined on the basis of ethics that are practiced therein and is applicable on every member of an enterprise (TUC, 2011; Harris, 2004). The ethical dilemma that an employer may face regarding substance misuse at workplace is to determine methods to deal with any employee who is involved in such practices and yet does not exhibit negative impact on performance (Comer, 1994). In addition, a number of workers agued in an ILO survey that in many occasions, workplace drug problems born from work related stress such as isolated and boring work, stringent deadlines, long work hours, strained workplace relations, job insecurity and poor pay structure. Moreover, the current corporate practices often encourage individuals to adopt drinking on and off-premises, which again can be considered as a triggering factor regarding substance abuse at workplace (ILO, 2011; Raskin, 1992). Analysis of contrasting ethical theories relevant to workplace substance misuse A number of ethical theories have been proposed by a number of authors based on the impact of any particular decision. By large, it can be suggested that ethical theories present a framework for distinguishing right and wrong decisions. Additionally, ethical theories can be classified as: consequentialist non-consequentialist and normative ethics. The consequentialist theories suggest that a decision is judged by its consequences. In other words, if the consequences of a decision are good then it is a right decision, otherwise not. Theories that are considered under the purview of consequentialist approach are egoism and utilitarianism. Non-consequentialist ethics is mainly related to deontology, which emphasizes that right or wrong implication of an action is a function of properties of the particular action and not its consequences. The normative ethics is primarily represented by virtue ethics, which contrastingly emphasizes on role of character of individuals in framing their behavior (Shaw, Barry & Panagiotou, 2010). Consequentialist ethics From the consequentialist perspective, the issues related to substance misuse at workplace can be described through egoism and utilitarianism. The theory of egoism highlights that workplace ethics coincides with self-interest of an individual. Egoism can be personal and impersonal in nature. Personal egoists undertake a particular decision while pursuing self-interest and without claiming universal acceptance of the same. On the other hand, impersonal egoists suggest that their self-interests should motivate behavior of others. Regarding the subject of this paper, it has been observed that drug users usually exhibit personal egoism as they directly do not influence others to consume. However, in many organization and circumstances, impersonal egoism is developed by individuals unconsciously or subconsciously. For instance, prolonged consumption of alcohol socially gives way to development of an addiction (Freeman, 1994). Contrastingly, utilitarianism implies that individuals should pursue activities that give way to creation of happiness for greater number of people. In other words, acts of an individual should generate greater utility in terms of pleasure. In context of substance misuse at workplace, two conflicting perspectives can be developed under the utilitarianism approach. The first perspective focuses on negative impact of drug consumption at workplace. Employees under the influence of drug and similar substance may affect overall productivity of the firm thereby causing minimization of utility in terms of productivity and therefore can be considered as unethical from utilitarianism theory. However, mild drugs are often consumed by individuals for minimizing stress and enhancing energy level in terms of alertness and concentration, which in turn improves productivity and supports utilitarianism ethics (Freeman, 1994; Leukefeld, et al., 2005). Non-consequentialist ethics Deontological ethics do not focus on consequence of a particular act rather it focus on rightness of an action; it is also referred as Kant’s duty based theory. From an employee’s perspective, deontological ethics suggest that the particular employee can do drug or consume alcohol if they consider it appropriate without considering implication of the same on productivity and performance. However, from organizational perspective, if substance abuse affects performance of the employee then they ought to stop such practices. Another perspective of deontological ethics that can be taken in consideration is that if an individual realizes that over indulgence in drugs and alcohol is harmful for health and work performance then they may consider giving up such practices (Freeman, 1994; Leukefeld, et al., 2005). Virtue ethics Virtue ethics emphasizes that behavior of an individual under any circumstance is affected by that person’s character and virtues. The theory of virtue ethics often considered as a contrasting theory with respect to deontology and consequentialism ethics. The theory of virtue ethics focuses neither on the rightness or wrongness of an act nor on consequences of the outcome and is primarily concerned with the image that a particular decision creates of an individual. Unlike other theories, it does not specifically categorize actions as good or bad and underline that the implication of the particular action on character of the doer is more important than the action itself. Virtue ethics mainly focuses on humanistic aspects such as wisdom and courage and is human centered compared to action centered approach of other theories (Statman, 1997). In context of the subject of this paper, substance misuse such as drug and alcohol at workplace has a negative impact on the character of the pursuing employee in the organization. In addition, the particular individuals may be treated with disrespect by family members due to the unacceptable habits and its consequences in terms of their behavior. As a result, moral conscientiousness may encourage an individual to give up these habits considering them unethical from virtuous perspective (Statman, 1997; Lowinson, 2005; Ghodse, 2005). Selecting appropriate ethical outlook that support best legal outcome in the given situation From organizational perspective, there is no specific law that has been defined in context of drug and alcohol abuse in workplace. Generally, legal steps that are considered by an employer in this kind of situation include warning, disciplinary action and termination of employment. Prior selecting an appropriate ethical outlook from the three ethical theories that have been discussed earlier, it is important to evaluate legal outcome from each theory’s point of view. The consequentialist ethical theory suggests that an action should be judged by its consequences. Accordingly, if an employee is found substance misusing at work place, the employer is suppose to terminate that particular person considering consequences such as poor productivity, negative influence on coworkers, erroneous output and so on and so forth. On the other hand, deontology suggests that an action itself is either right or wrong no matter the kind of consequences it follows. Therefore, if an employer follows deontological ethics then any employee involved in drug abuse at workplace should be immediately terminated or must face disciplinary action dues to practicing unacceptable activities in the organization. However, by undertaking these decisions the employers will be able to tackle the issue on a short term basis but given the growing work pressure in the business sector, it can be anticipated that sooner or later some other employee (s) may involve in similar kind of practices. Moreover, if these employees are one of the most efficient performers of the company, then the management cannot afford to terminate such employees (Hawkins & Catalano Jr, 1992; Freeman, 1994). The perspective of virtue ethics proposes that if a company continues to terminate its employees then it may earn a bad reputation in the job market. Therefore, employers should undertake such measures that protect organization as well as its employees from gaining a bad reputation and this agenda can be achieved only through virtue ethics theory. In context of the business situation that has been discussed in this paper, the most appropriate ethical outlook is virtue ethic theory. The theory of virtue ethics proposes a win-win situation for both employer and employees (Statman, 1997; Shaw, Barry & Panagiotou, 2010). The reasons for proposing this approach for achieving best legal outcome can be explained as follows. In every organization, the cost of training and development is increasing consistently, which has made it important for organizations not to terminate employees randomly. Furthermore, frequent downsizing of workforce can result in leaking of trade secrets of a particular business. Hence, an organization can focus on developing programs that would train and educate employees about negative consequence of substance abuse at workplace as well as in employees’ personal lives as well policies that would prevent them from such practices. Theory of virtue ethics makes employees realize the impact of their action on their character. Through virtue ethics, employees will be able to realize that they are destroying their career as well personal relations. In addition, the ethical outlook will highlight to them the consequences of employment termination due to substance misuse at workplace on their reputation to colleagues, family and other organizations (Statman, 1997; Shaw, Barry & Panagiotou, 2010; Ghodse, 2005). Various laws related to the particular business situation discussed in this paper The various laws and regulations that an individual will violate as a result of drug and alcohol consumption at workplace are securities regulation, employment law, breach of employment contract and criminal law. Securities regulation: in various organizations and institutions, drug and alcohol free work environment has become a mandatory part of regulatory policies. It has been identified that under influence of alcohol and drug, employees may unknowingly give access of organization’s confidential data to outsiders causing major threat to security system of the organization. Apart from data security, security of employees is another important concern for organizational management. It is possible that drugged and drunk employees may misbehave with other employees and induce hostile situation. Certain drugs have negative impact on alertness and concentration level of employees, which may result in accidents in production floor. Recruiting and retaining employees who are involve in substance misuse at workplace pose serious threat to firm’s financial status and investor relations (Shahandeh, 1985). Employment law: With increasing drug and alcohol indulgence among employees organizations have made it compulsory in their policies and laws related to employment that no employee should be under the influence of illegal drugs as well as prescription drug above prescribed dose. Moreover, to ensure that employees comply with this instructions organizations often conduct different kinds of drug tests in a regular manner. The employment law in a number countries have also emphasized on the concept of drug free work premises. In multinational corporations strict actions such as suspension as well as immediate termination of employment are taken to prevent such incidents. In addition, new joiners are kept under a probation period so as to observe and confirm their performance as well as behavior suits organizational requirements (Shahandeh, 1985). Breach of employment contract: An employment contract can be defined as a legal agreement between two parties, namely, employer and employee, regarding various organizational code of conduct; breach of which results in termination of the employment contract. If an employee is drugged unknowingly, investigation is carried out by human resource department before any action is taken. However, if an employee is found guilty of substance misuse, organization can terminate the employment as well as mention in the incident in the release letter. Such a situation can create difficulty for that individual to find a new job. Breach of employment contract is a serious offense and often disciplinary action more severe than mere termination is taken (Shahandeh, 1985; Peterson, 2002). Criminal law: In different countries, laws have been framed that highlight act of substance misuse at workplace as act of criminality. The reason being many activities that individual perform in their daily lives require manual involvement such as driving, machinery handling and so on. Lack of concentration may give way to accidents in these situations. Moreover, any kind of hazardous activity such as stealing, harassing others and breaking organizational properties under influence of drug and alcohol, can be considered within the purview of criminal act (Hawkins & Catalano Jr, 1992). Recommendations and conclusion After studying the current business environment and analyzing feedbacks by workers in various studies, it was ascertained that often individuals undertake activities such as substance misuse to deal with tremendous mental pressure at workplace. However, such practices occur as a result of peer pressure. Therefore, terminating employees cannot be recommended as an appropriate measure to employers. Instead, it can be suggested that employers should implement drug and alcohol free policy in organizations. Additionally, periodic drug tests should be conducted as well as informative programs should be initiated where employees will be educated about negative implication of drug on an individual’s personal and professional life. Furthermore, it is recommended that higher authority should put into practice participative management style at workplace so that employees can discuss their problems openly and do not get involve in substance misuse as solution of frustration. As concluding remark, it is proposed that harsh steps in case of substance misuse may distort reputation of firm as well as that of the employee in concern. Hence, such situations should be resolved in a compassionate manner and by maintaining confidentiality. References Comer, D. R. (1994). Crossroads—A Case Against Workplace Drug Testing. Organization Science, 5(2), 259-267. EMCDDA. (2014). European Drug Report: trends and developments. Retrieved from http://www.emcdda.europa.eu/publications/edr/trends-developments/2014. Freeman, S. (1994). Utilitarianism, deontology, and the priority of right.Philosophy & public affairs, 23(4), 313-349. Ghodse, H. (Ed.). (2005). Addiction at work: tackling drug use and misuse in the workplace. 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