MARLON D. MACALMA
Divine Word College of Laoag, Ilocos Norte, Philippines
Abstract
This reflection paper realizes the ethical issues
of treating employees as mere resources and assets in organizations,
emphasizing the significance of balancing and harmonizing business goals with
respect for individual dignity. It discusses how Human Capital Theory views
employees as valuable assets and the risks of seeing them only as tools for
productivity. The paper draws on real-world examples like Google’s “20% Time”
and IBM’s development programs to illustrate ethical practices that support
employee growth. It also examines and analyzes how companies like Ayala
Corporation and Jollibee Foods Corporation use ethical leadership and Corporate
Social Responsibility (CSR) to ensure fair and objective treatment of
employees. The paper concludes that recognizing employees as individuals,
rather than just resources, leads to a healthier work environment and greater
organizational success.
Keywords Ethics, Human Resources, Human Capital Theory,
Kantian Ethics, Motivation, Corporate Social Responsibility, Ethical Leadership
Introduction
This reflection paper determines the ethical issues
of treating employees as resources or assets in an organization. It focuses on
finding the right balance between achieving business goals and respecting each
person's dignity. Human Capital Theory views employees as valuable assets,
proposing that enhancing their skills and knowledge benefits both the
individuals and the organization (Becker, 1964). However, this view can
sometimes lead to seeing people as just tools, which raises ethical concerns.
Kantian ethics argues that people should be valued for who they are, not just
for what they can do for the company (Kant, 1785). This idea is important to
prevent treating employees in a way that exploits or degrades them. Motivation
theories by Maslow and Herzberg emphasize the need to meet employees' higher
needs for personal growth and recognition to keep them engaged and satisfied
(Maslow, 1943; Herzberg, Mausner, & Snyderman, 1959). Moreover, ethical
leadership and corporate social responsibility (CSR) emphasize the importance
of treating employees fairly and with respect, supporting their well-being
(Brown, Treviño, & Harrison, 2005; Freeman, 1984). Combining these views
helps organizations balance ethical practices with achieving their goals,
creating a workplace that values employees as individuals while striving for
success.
Human
Capital Theory and Ethical Considerations
Human Capital Theory, introduced by economist Becker (1964), suggests
that investing in employees’ education and development can make them more
productive, benefiting both the employees and the company. A real-world example
of this is Google’s “20% Time” policy. This policy allows employees to spend
20% of their workweek on projects they are passionate about, even if they are
not directly related to their job. This investment in employees' personal
interests and professional growth not only encourages innovation but also
respects their individual goals and well-being. It shows an ethical approach by
supporting employees' development, which in turn helps the company succeed.
On the other hand, the ethical challenges arise
when the focus changes from valuing employees as individuals to seeing them
only as assets. For example, if a company pushes for maximum productivity and
financial gain without considering employees' needs, it might treat them as
mere tools to achieve business goals. This can lead to serious ethical issues.
A company that demands long hours and high output without addressing job
satisfaction or work-life balance might create a stressful environment where
employees feel overworked and unappreciated. This approach risks exploiting
workers and failing to support their overall well-being.
Consider a company that prioritizes high
performance but cuts back on employee support programs to save costs. Employees
might face stress from increased workloads, reduced job satisfaction, and
limited personal development opportunities. Such a company might see a
short-term improvement in productivity but could suffer from higher turnover
rates, lower employee morale, and a damaged reputation in the end. This
scenario highlights the importance of balancing performance goals with ethical
treatment, ensuring that employees are valued and supported as individuals, not
just as means to achieve business outcomes.
Balancing Performance with Ethical Treatment
Balancing performance goals with ethical treatment
of employees can certainly be challenging. Human Capital Theory suggests that
investing in employees—through training, development, and support—should
ideally benefit both the organization and the employees. However, when this
investment is solely aimed at maximizing productivity without regard for
employees' well-being, it can lead to significant ethical issues.
For example, consider a company that prioritizes digging
out the maximum output from its employees. Management might push staff to work
longer hours, cut breaks, or increase workloads without considering their
health or work-life balance. Although this might yield short-term productivity
gains, it often results in burnout, decreased job satisfaction, and higher
turnover. Such an approach disregards employees' overall well-being and raises
ethical concerns.
In contrast, IBM exemplifies a more balanced and
ethical application of Human Capital Theory. Through initiatives like the
“Think Academy” and other development programs, IBM demonstrates a commitment
to both employees' professional growth and personal well-being. The Think
Academy offers continuous learning opportunities that help employees advance
their skills and careers, reflecting IBM’s belief that supporting their
development benefits both the company and ultimately the employees.
Moreover, IBM fosters a positive work environment
by providing resources for mental and physical well-being, promoting a culture
of inclusion, and encouraging work-life balance. This focus on employee
satisfaction ensures that the company’s practices align with ethical standards.
Furthermore, IBM’s approach is centered on long-term benefits rather than
immediate productivity. By investing in a satisfied and well-supported
workforce, IBM reduces turnover and retains valuable skills within the
organization. IBM’s approach illustrates that it is possible to achieve high
performance while maintaining ethical treatment of employees. By investing in
employees' growth and well-being, IBM not only enhances productivity but also
upholds a commitment to ethical practices, demonstrating that performance goals
can be balanced with a genuine concern for employees' holistic needs.
Ethical Leadership and Corporate Social
Responsibility
In the Philippines, ethical leadership and
Corporate Social Responsibility (CSR) are crucial for ensuring that employees
are treated with dignity and fairness. Ethical leaders in Filipino businesses
prioritize transparency, fairness, and the overall well-being of their
employees, setting an example that echoes throughout the organization. For
instance, Filipino companies like Ayala Corporation have demonstrated a
commitment to ethical practices and social responsibility, integrating these
values into their business strategies to support fair labor practices and
community development.
CSR initiatives in the Philippines focus on
enhancing working conditions, ensuring fair compensation, and offering
opportunities for employee growth. An example is the approach taken by
companies like Jollibee Foods Corporation, which is known for its CSR efforts
that include providing safe working conditions, fair wages, and career
development programs. Jollibee’s initiatives reflect a commitment to treating
employees as valuable contributors to the company’s success rather than mere
resources.
The alignment with stakeholder theory is misleading
in these practices. Stakeholder theory, introduced by R. Edward Freeman in
1984, suggests that organizations should account for the interests of all
stakeholders, including employees, in their decision-making processes. This
theory advocates for a broader view beyond solely maximizing shareholder value,
emphasizing the importance of considering the well-being of all those affected
by business operations.
For instance, the approach of companies like Globe
Telecom includes providing comprehensive benefits, educational opportunities,
and fair wages for employees. This demonstrates a dedication to valuing
employees as crucial stakeholders, fostering a positive work environment, and
contributing to long-term success.
Ethical leadership and CSR are vital in promoting
respect and fairness towards employees in the Philippine business landscape.
Leaders who champion transparency and fairness set a positive example, while
CSR programs that focus on employee welfare reflect a commitment to recognizing
employees as essential stakeholders. This approach aligns with stakeholder
theory, underscoring the importance of considering the interests of all
stakeholders in organizational decision-making.
Effect
on the Human Person
When employees are regarded merely as resources,
they face significant risks of exploitation, misuse, and manipulation. This
often leads to overworking, underpayment, and undervaluation, as seen in
companies where unrealistic productivity targets are imposed without adequate
breaks or fair compensation. In Philippine companies like Jollibee Foods
Corporation, where workers might be pressured to meet high demands without
proper support, employees can experience severe stress and burnout, manifesting
in physical symptoms like fatigue and headaches, and mental health issues such
as anxiety and depression.
On the other hand, treating employees as valued
individuals fosters a healthier work environment. For instance, a Philippine
company like BDO Unibank prioritizes its employees’ well-being by offering
flexible work arrangements, extensive benefits, and a supportive atmosphere.
This approach makes employees feel appreciated and motivated. BDO Unibank’s
focus on wellness programs and professional development emphasizes its
commitment to valuing employees as key to its success. Such a positive
environment enhances creativity, productivity, and loyalty, as employees are
more engaged and contribute effectively when they feel respected.
Likewise, a company like San Miguel Corporation
places significant emphasis on employee well-being through comprehensive
support programs that address mental health, work-life balance, and career
growth. This commitment to employee welfare not only boosts job satisfaction
but also fosters a sense of community within the organization. Employees are
encouraged to share ideas and take ownership of their roles, which leads to
innovative solutions and a more engaged workforce.
Treating employees as mere resources can lead to
exploitation and health issues while valuing them as individuals creates a
positive work environment that enhances job satisfaction and overall
well-being. When employees feel respected and valued, they are more motivated
and contribute more effectively, resulting in better outcomes for both the
employees and the organization.
Conclusion
The ethical implications of viewing employees as
resources or assets are reflective and complex. While recognizing employees as
valuable assets emphasizes the importance of investing in their development, it
is equally critical to uphold their inherent dignity and worth.
Viewing employees solely as resources can lead to a
focus on efficiency and productivity at the expense of individual well-being.
This perspective might result in treating employees simply as tools to achieve
business goals, overlooking their needs and rights. For example, in a factory
setting, pushing workers to meet strict deadlines without proper rest or safety
measures can cause high turnover, injuries, and decreased job satisfaction,
reflecting a troubling disregard for employees' intrinsic value.
On the other hand, ethical theories and
organizational behavior research support treating employees as "ends in
themselves" rather than mere means to an end. This approach involves
valuing people’s unique contributions and ensuring their well-being. Companies
like Ben & Jerry’s and Microsoft exemplify this perspective. Ben &
Jerry’s is noted for its fair wages, comprehensive benefits, and commitment to
personal growth, fostering a positive work environment where employees feel valued.
Similarly, Microsoft promotes a balanced work-life environment through flexible
hours, mental health resources, and a supportive culture, demonstrating respect
for employees' individual contributions and enhancing overall engagement.
Research highlights that organizations recognizing
employees as valuable individuals enhance job satisfaction, the performance, and
create a more ethical and positive work environment. Employees who feel
respected and valued are more likely to be committed and innovative, benefiting
both themselves and the organization.
In conclusion, while treating employees as resources can highlight the need for development investments, it is essential to balance this view with respect for their dignity and intrinsic worth. Ethical theories and organizational behavior research support the notion that recognizing employees as valuable individuals leads to a more positive, ethical work environment, ultimately benefiting both employees and the organization.
References
Becker, G. S. (1964). Human Capital: A Theoretical
and Empirical Analysis, with Special Reference to Education.
Brown, M. E., Treviño, L. K., & Harrison, D. A.
(2005). Ethical leadership: A social learning perspective for construct
development and testing. Organizational Behavior and Human Decision Processes,
97(2), 117-134.
Freeman, R. E. (1984). Strategic Management: A
Stakeholder Approach.
Herzberg, F., Mausner, B., & Snyderman, B. B.
(1959). The Motivation to Work.
Kant, I. (1785). Groundwork of the Metaphysics of
Morals.
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Maslow, A. H. (1943). A theory of human motivation.
Psychological Review, 50(4), 370-396.
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