Exam 2: Section 2: Economic Forces: Oh Canada, What Is Your Economy Like
Joe has worked for 20 years as a sales representative for a successful, non-unionized major fashion retailer and is an outstanding employee. He is in his late forties and was recently told by his manager that he just doesn't "fit with the culture any more" and his position is "more suitable for a younger person". Joe was terminated the following week.
With reference to the pyramid of corporate social responsibility (CSR), how is CSR an issue in this case?
Economic Responsibilities:
The economic responsibility is based upon that society requires that companies be profitable. In other words, companies should generate profits and minimize costs.
The company is successful and therefore profitable. It is acting in a way that it feels will maximize profits for the company
Legal Responsibilities:
Society also requires companies to be legally responsible. That is, complying with all laws and regulations. For example, employment laws, human rights laws, business law, contract law, copyright law, environmental law and so on. It may be violating certain human rights though it will depend on how the case is argued.
Ethical Responsibilities:
Society also expects companies to be ethically responsible. That is, what society considers fair, just and acceptable. Society expects all members to be treated fairly and with dignity. This company seems to have violated that expectation in its treatment of Joe - suggesting he is not a productive employee because he is getting too old for the job.
Philanthropic Responsibilities:
Society desires companies to meet their philanthropic responsibilities. These are duties that help with the betterment of society, such as donating money, volunteering etc.
If we could set aside the age discrimination issues and consider the role of companies it certainly would be philanthropic if companies tried to make more use of workers who were say past retirement age. That was not the case here but as an example of philanthropic behavior, we see some companies like Walmart hire retired individuals as "people greeters" - that could be considered an example of philanthropic responsibilities.
Joe has worked for 20 years as a sales representative for a successful, non-unionized major fashion retailer and is an outstanding employee. He is in his late forties and was recently told by his manager that he just doesn't "fit with the culture any more" and his position is "more suitable for a younger person". Joe was terminated the following week.
What laws exist to potentially protect Joe?
Human rights laws: These laws typically prohibit discrimination in employment based on certain prohibited grounds. In the Canadian Human Rights Act, which applies to businesses governed by Federal laws prohibits discrimination in employment on grounds such as Age, which appears to be the issue in this case. The Canadian Human Rights Act and each of the provincial human rights codes govern human rights issues and provide detailed procedures for investigation and resolution. An employee who feels her employer has discriminated against her on a prohibited ground may file a complaint with the appropriate human rights tribunal and seek a remedy, including lost wages and reinstatement, if she has been dismissed for discriminatory reasons. The prohibitions on discrimination in employment apply through the life of the relationship, including: hiring, terms of employment, and dismissal.
Also consider Termination laws: Common Law Rules Requiring Notice of Termination: All nonunion employees in Canada have an employment contract with their employer. Sometimes the contract is written, but if it is not, then the parties have a verbal contract. Disputes about what an employment contract says, or how it should apply in a given situation, are resolved by judges in courts of laws. One rule that judges created, and that forms part of the common law of the employment contract, is a requirement for employers to provide employees with 'reasonable notice' of the termination of the employment contract. How much notice is 'reasonable' is decided by judges, and depends on a number of factors, including length of the employee's service, the employee's age, and the type of work the employee performed.
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