Ethical and Legal Problems & Employee Benefits - Assignment Example

Ethical and Legal Problems & Employee Benefits Discussion An Equity-based recognition plan is an arrangement whereby a company rewards its employees, directors or service providers with equity securities (newly issued shares). The plan is intended to motivate, compensate, or retain top talents into the company. This discussion focuses on ethical and legal features associated with equity based recognition plans. The plan allows employees to become shareholders or owners of a company. This gives them extra responsibilities, hence attracting a certain set of ethics and legislation (Lawrence, Weber, Post, 2005).

Firstly, an employee has obligation to a company and is expected to perform his or her duties according to the company’s leadership strategies. Thus, protocol ethics are closely associated with equity-based recognition. In addition, employees have to make key decisions either as an employee or as a shareholder. Each of these levels requires different reasoning and responsibilities. Ethics related to loyalty towards the company comes into consideration. For instance, an employee may have knowledge of some sensitive information about the company.

However, he is not expected to release such information to ordinary shareholders.Equity-based recognition plan also attract a number of legal issues. Worker, who upgrades their status into shareholders of the company, requires a new set of legislation to protect their interests. For instance, legal issues related to bankruptcy of the company are applicable in the recognition plan. Workers need to know their accountability to the company’s liabilities. Leaders should be aware of possible abuse of employee’s that might result from equity-based recognition.

In order to prevent any form of abuse, leaders should ensure that company employees understand their responsibilities and rights both as company employees and as a shareholder. In addition, leaders should ensure that legislation and ethics associated with the plan are clearly stipulated in workers contracts.Discussion 2Retirement benefitsRetirement benefit authority is a scheme managed by the government to provide financial support to the elderly population. Although the government and other social welfare encourage organization to enroll their employees for retirement benefits, most of them do not provide the benefit.

Retirement benefit scheme divide industries into two categories. The first category is for industries that provide the service to their employees while the second category consist industries that do not provide the service. There is also a significant inclination of certain industries to either option. For instance, government-controlled organizations have no option but to register their staff for the benefit. Industries that provide civic services such as education and construction also provide their workers with the benefit.

Employees of federal service and health services providers also receive the service. The service is less common in the service and commercial industries (WorldatWork, 2007). For instance, the transport and communication sector has the least enrolment of members for the benefit. Several factors describe such disparity between essential service industries and other commercial industries. The main factor that explains the disparity is government’s control. The government has a mandate to ensure that all its citizens lead a descent life in their old age.

This requires all organizations that provide essential services such as security and health to provide the service to their employees. Terms and duration of employment across different industries also determine the disparity (WorldatWork, 2007). Industries that usually provide short-term employment to their staff lack such services. ReferencesWorldatWork. (2007). The WorldatWork handbook of compensation, benefits, & total rewards. Hoboken, NJ: John Wiley & Sons.Lawrence, A. T., Weber, J., Post, J. E. (2005).

Business and society: Stakeholders, ethics, public policy. 11th Edition. Boston: McGraw-Hill, Irwin.