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Saturday, June 25, 2022

The Highest Sanctions for Violating Code of Conduct in an Organization

(The Paper reflects the opinion of the author and not of the editor).  

 Wilhelm Peralta (2022)

“Ethics is knowing the difference between what you have a right to do and what is right to do.” – Potter Stewart 

Abstract

A code of conduct in any organization is essential as a guiding tool to provide a definite guide on how employees should work, behave and perform. This written code will empower employees to handle ethical dilemmas encountered in everyday work. It serves as a valuable reference, informing employees on how to locate relevant documents, services, and other resources related to ethical issues in the organization.

However breaking the code of conduct in an organization can result in termination, separation, or dismissal from the organization. This code lays out the rules to follow within the organization and provides the groundwork for a preemptive warning. Termination or dismissal from employment may result in rejection from the next job application, a bad reputation, and being tossed aside.

            Every termination or dismissal sanction of an employee’s violator of the code of conduct should be justifiable not “just” because can company’s face serious consequences. Companies need to ensure policies are in place surrounding termination procedures and should address ways to legally and ethically fire an employee.

Keywords: Code of Conduct, Termination, Dismissal, Highest Sanction, Reflection on Code of Conduct

Introduction

A code of conduct is a guide of principles, values, and business practices that guide the organization’s conduct. It was designed to help professionals conduct business honestly and with integrity. It may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization’s core values, and the standards to which the professional is held, (Hayes, 2021). Indeed, ethical guidelines and best practices to follow for honesty, integrity, and professionalism, and violating the code of conduct can result in sanctions of termination or separation.

Code of conduct issues that fall under the ethics of the organization’s rules and policies including the employer-employee relations, discrimination, harassment, bribery, insider trading, theft and corruption, and other social responsibility. These basic ethical standards within the organizational community largely depend upon leadership to develop a code of conduct. This will serve as a guide for the employees are supposed to follow. Breaking the code of conduct can result in termination or dismissal from the organization. It is important because it lays out the rules for behavior and provides the groundwork for preemptive warnings. The moral choices of the organization have grown, from the industrial age to the modern era into working conditions, how an organization impacts the environment and a code of conduct helps ensure that organizations will always act with integrity, (Drury, 2021).

It is not designed for bad employees, but for the employee who wants to act ethically. The violator employee will seldom follow a code of conduct, while most employee especially if their job is their bread and butter welcome ethical guidance in difficult or unclear situations. The below-average performance employee is not grossly immoral but often tempted, and sometimes confused, by what appears to be a virtuous path. When temptations are significant, when the price of adherence such as the sacrifice to the interests is high, when the social consequences of violation are to harm others are relatively slight, and when the costs of violation are low under such circumstances it is easy to be led from doing what you ought to do, (Gilman, 2005). No code of conduct no matter how severely enforced will make truly bad employees good. However, ethics codes can have a demonstrable impact on the behavior of bad employees in organizations. When everyone knows the ethical standards of an organization they are more likely to recognize wrongdoing and do something about it.  Miscreants are often hesitant to commit an unethical act if they believe that everyone else around them knows it is wrong.

No Code of conduct can address all specific situations.  A failure by any employee to comply with the laws or regulations governing the Company's business, this Code of conduct, or Company policy or requirement may result in disciplinary action up to and including termination, and, if warranted, legal proceedings. All employees are expected to cooperate in internal investigations of misconduct.

The highest sanctions in violating the organization’s code of conduct are termination or dismissal for the grieve offenses, however, if the employee is the first time violator and not warranted to commit it for just certain reasons big companies are not able to accept and impose the penalties based on the code of conduct. This will mirror the statement of Immanuel Kant. "If he has committed a murder, he must die. In this case, no substitute will satisfy the requirements of legal justice. There is no sameness of kind between death and remaining alive even under the most miserable conditions, and consequently, there is no equality between the crime and the retribution unless the criminal is judicially condemned and put to death.” However the penalized employee of termination or dismissal has a big impact on applying for new jobs, no one will accept him/her due to their previous record. It will put on him/her the consequences that arise as a result of his/her actions. Breaking the code of ethics can result in termination or dismissal from the organization. A code of conduct is a big-picture ethics guide for employees to agree to or a list of basic behaviors for a workplace. A code of conduct doesn’t list all the behaviors you shouldn't do but instead gives general guidelines for actions that relate to the industry, profession, cause, or company, (Milano, 2022).

A Code of Conduct Violation – The Highest Sanction.

The highest sanction for the code-of-conduct violation can occur when an employee doesn’t follow company policies, or when a member of a profession or an industry doesn’t adhere to written ethical guidelines is termination or immediate separation. It’s important to learn all of the written policies of any company you work for or any association. Understanding what code of conduct violations are, where can find the rules supposed to follow and how to address accusations of misconduct will help keep the job and good standing in the work-related profession, (Milano, 2021).

The supreme penalty that may be imposed by an employer against an employee is dismissal or termination from employment which is justified for the most serious offenses and the most severe penalty must be imposed following labor laws. Indeed, dismissal is the most drastic step because it can destroy the employee’s career permanently. Employee offense is when an employee violates the company’s code of conduct. Gross misconduct and disciplinary action are required to be taken for such a serious offense.

Code of conduct usually refers to your behavior, hence the word “conduct.” Due to an increased emphasis on corporate social responsibility and the need to decrease employee lawsuits, more and more businesses have introduced conduct codes. These can cover behaviors that lead to sexual harassment or discrimination, damage the company’s reputation with its external stakeholders, include physical threats or intimidation, or decrease office morale,  (Milano, 2021).

Organizations provide a code of conduct to explain which behaviors are and are not permitted by employees. In addition, employees can be required to acknowledge this code by signing an agreement upon employment. Employees who violate the standards face consequences through a standard employee behavior policy, such as a progressive discipline system, which has grave consequences for the most serious violations.

 

The importance of Punishment for ethical Violation in an Organization. 

If a problem is not resolved after an appropriate warning, you may have to terminate an employee. Just causes of termination refer to serious misconduct, willful disobedience or insubordination, gross and habitual neglect of duties, fraud or willful breach of trust, loss of confidence, a commission of a crime or offense, and analogous causes.

The dismissal of an employee in the Philippines is a sensitive stage and can only be implemented by a ‘just’ or ‘authorized’ cause, as defined under the Labor Code. Trial periods and fixed-term contracts can be terminated without difficulty, whereas open-ended contracts are subject to increased protection. As a matter of principle, the Philippines Labor Code prohibits the termination of indefinite work contracts. Some exceptions are still restrictively provided and serve as authorized or just grounds for termination. In any case, the justifications given by the employer will be systematically examined carefully, with the procedure set out in this article, (Shira, 2021).

Employees resist acknowledging the influence of organizational factors on individual behavior, especially on misconduct for fear of diluting employees’ sense of personal moral responsibility. But this fear is based on a false dichotomy between holding individual transgressors accountable and holding the system accountable. Acknowledging the importance of organizational context need not imply exculpating individual wrongdoers. To understand all is not to forgive all.

The company's purpose of a code of conduct is to set and maintain a standard for acceptable behavior and it reminds the employees of what is expected. It highlights that the actions should be always aligned with the ethics of business through understanding of consequences and disciplinary actions if the conduct is broken. This code of conduct provides guidelines about acceptable behavior and a set of principles for a company's judgment.

The Need for a Code of Conduct

Employers might want to believe that their staff knows what's right and wrong, but by having a code of conduct you can spell out whether specific behavior or action is acceptable or not, making everyone's lives a bit easier. Having rules to follow gives employees a structure from day one, making the whole process much more black and white if trouble is caused. There should be no ambiguity about a policy because this can lead to rules being bent, contradicting the whole point of the code in the first place.

The code articulates the values the organization wishes to foster in leaders and employees and, in doing so, defines desired behavior. A Code is a central guide and reference for employees to support day-to-day decision-making. A Code encourages discussions of ethics and compliance, empowering employees to handle ethical dilemmas they encounter in everyday work. It can also serve as a valuable reference, helping employees locate relevant documents, services, and other resources related to ethics within the organization, (Chum, 2019).

A company culture lays down the foundation of shared values, goals, attitudes, and practices that characterizes an organization and helps to improve and clarify all stakeholders' perception of a workplace. Considering how intertwined company culture, climate, organization, and conduct are, an organization that clearly outlines its vision and mission is also more likely to attract and retain desirable candidates. This might include writing a section about valuing customer service more than KPIs or encouraging teamwork and open collaboration over individual success, (Bramwell, 2020).

As well as setting out the rules, a code of conduct also explains what employees need to do if they ever need to report a violation of company policy, as well as showing staff what the consequences are of using false information in an attempt to conceal violation.

Acceptable Reasons for Dismissal

Not all dismissal is under the sanctions of the code of conduct. Sometimes it is during the tough economic times, it may necessary to reduce headcount to stay afloat. It includes risk to the company's reputation, theft, and physical violence against co-employees. With this tough times strike, it needs to terminate employees correctly. Employers have the right to dismiss an employee at any time for any reason, (Hartford, 2020).

The common reasons for the dismissal of employees are economic crises. When a certain country is in recession, companies are likely resulted and resort to dismissals simply to stay in business. Well, the key to implementing cost-cutting through termination of employees legally is to make sure that not discriminating unintentionally. The importance to address this situation is to use an objective, business-focused plan for choosing the employees to dismiss.

The most difficult to manage of legal termination of an employee is through firing for a cause. That causes are grounds for serious violations of the written code of conduct. Restoring and implementing fairness and justice in the company may result in dismissal for certain employees violators.

The state of Mental Well-being of the remaining employees after a termination

A need of considering the impact on remaining employees after letting employees leave. Productivity can deteriorate and morale can dip as employees wonder if someone terminated without their knowledge about the situation. The dismissal of employee/s may affect the performance of the remaining employees, who can have the same reactions who were the next to let go. It is not appropriate to share the exact reasons for confidentiality on why specific individuals were terminated. It is very important to let them know and abide by what is in the code of conduct. They should well inform the state of the company in terms of economic standing so that they have an idea of what they should know what to do.

Facilitate a pep talk, or meeting to suggest ignoring gossip and surrounding with positivity, advocate the benefits of journaling as a way to relieve stress and anxiety, and put things in perspective. Motivate staff to talk with friends and the outcome of the performance, being in nature can help lower blood pressure and stress hormone levels. The consultant can facilitate seminars on remaining employees to discuss their concerns and bring questions, confidentially, to management, (Atkins, 2019).

Conclusion

In an organization, the code of conduct is vital and widely known among employees as an ethical standard, value, and salient for all employees. The values were presented to the employees of professionalism, standard procedure, fairness, integrity, respect, customer-related services, trust, diversity, and excellence. Every success of an organization should establish an understanding of the code of conduct at all times. This should emulate the ethical values and follow these values in the spirit of all applicable laws and regulations of the company.

 The code of conduct support employees in general decision-making through a structure to follow when it comes to the company’s behavior and allows employees to be prepared to handle ethical dilemmas in the workplace. It also gives am employees a structure to follow from the moment they join the company, providing enough information not to occur problems in the future that do not result in termination or dismissal. Also, there should be no ambiguity when it comes to a code of conduct not to come up with lines that are blurred and rules can be broken.

            The need to lay off employees may be justifiable and undoubtedly reasonable. That’s why it’s important to have a basic understanding of the discrimination laws. Termination or separation is one of the most dreadful moments in professional life and the most dreadful experience when an employee was terminated due to wrongful doings without providing second chances to resolve what was problem occurs. It is what a worker fears the most, as expected that will stir emotions.

References:

Milano, Steve (2021). The Penalties for the Breach of a Code of Conduct. CHRON. California, USA.

Atkins, Dauna (2019). How to Preserve Mental Health after a Termination (verityintl.com). Retrieved June 20, 2022.

Cechova, Dominika (2019). Employee Code of Conduct: Best Practices and Examples (peoplegoal.com). Retrieved June 19, 2022.

Indeed Editorial Team, (2021). Code of Conduct Examples in the Workplace | Indeed.com. Retrieved June 18, 2022.

International Ligitation Services, (2022). The Sanction of Dismissal – A Terminating Sanction (ilsteam.com). Retrieved June 18, 2022

Laing, Rokamn (2022). Termination of Employment (How to Dismiss?) | DavidsonMorris. Retrieved June 17, 2022

Milano, Brothers (2021). Milano Brothers Code of Conduct​ | Milano Brothers Group. Retrieved June 17, 2022.

 

Friday, June 24, 2022

Philosophical Reflection: The Way of Life

 Wilhelm Peralta (2022)

(The paper reflects the idea of the author, not the editor)

“Vain is the word of that philosopher which does not heal any suffering of man." Epicurus

Abstract

Throughout history, various ideologies have been passed down through the generations. Some of these include absolute absurdism, existentialism, and various other forms of philosophy. Various points go into analyzing these ideas, such as how we got here, who we are, and what happens to us when we die.

The dominant image of philosophy focuses on formality, fundamentality, widespread use of intuitions, and showing the history of the discipline. Indeed, the practise of philosophy is conditioned by forces outside the control of some philosophers.

Any philosophy is a matter of achieving and striving how to apply the medium of critical thinking and reflection of interpretation and weighing evidence, debate, counter-arguments and also assessing critically and impartially the fruitfulness of various approaches to a special set of circumstances out of the universal of mankind. It seeks the integration of knowledge of the sciences and with other fields to accomplish and consistent and coherent worldview. A fragment of human knowledge, skills and experience, and reflection upon life as a totality.

Keywords: Philosophy Reflection, Way of Life, 21st-century Philosophy, Philosophy as  Therapy.

Introduction

In the 21st century, Philosophy is observed through theoretical, idealism, progressivism, constructivism, perennialism, and detached from life. It was a way of life not just being thought in academe but it was considered as a medium of living, practice from resilience and the self according to an ideal of wisdom into transforming oneself. A conversion and reflection into the process of living into exploring own of wisdom. Indeed, the exercises of spiritual beliefs into self-transformation and their reflection into its philosophy a way of life.

Great Philosophers thought the generation of having concerns that go beyond the everyday demands of life. They embrace the distance between their actions and the sequence of ordinary life that hold it into fashion, tradition, and conformity. The regular appeal, as a kind of disciplinary statement such as commitment to the truth even one's claim to live from the bases of Socratic belief. Others appreciate the working life as structured by forces not directly responsive to reasoned argument and that these forces shape the work they do. The practice of philosophy is conditioned by forces outside the control of individual philosophers, (Doyle, 2014).

            The breakthrough of philosophy has achieved a complete disciplinary recognition and with a pure inquiry into cares simply for truth. It is a discipline in the sense of occupying a definable position in humanity and accounting for certain of its features.

Dotson (2012) emphasizes primarily addressing the coercive nature of the implicit norms of the discipline that tend to silence what is potentially distinctive in the voices of female and minority philosophers. But the mechanism she identifies is general: work that in any way veers away from fundamental questions posed as universal and mostly formal can be met with the demand for proof of identity: how is this philosophy? That this question is so often asked in this rhetorical way suggests both that a) there is no explicit theoretical agreement about what philosophy is and b) the background assumption that philosophy is identical to the professional image is fairly widespread.

Campbell (2006) is one, a laudatory official history of the American Philosophical Association (APA). It is a valuable work of history, but it refrains from theorizing about causal relationships between a professional organization and philosophical content and instead tries to identify particular philosophical contributions that, for example, APA addresses have made to the discipline. It is, that is, still a history of ideas separated from material conditions. The very nature of philosophy is itself a contested philosophical issue, and views about this issue are philosophically controversial. Although the investigation of the proper aims and methods of philosophy is nowadays known as metaphilosophy, it is not a distinct higher-order discipline but an integral part of philosophy itself (Glock, 2008).

Philosophy as Stoic and Epicurean Therapy

The conceptualization of Philosophy is to treat and relieve suffering and is viewed as analogous to medicine, and the philosopher was seen as the physician of the soul who cured the irritation, irrational fears, empty desires, and false beliefs. It emphasized the passions of emotion as a source of emptinesses and sickness, without these, humanity is suffering from worries, fears, anger, unworthy, unrecognized, disorder, and unrest in our soul. Philosophy thus appears as a therapeutic of the passions. Its therapeutic method is linked to a profound transformation of the individual’s mode of seeing and being (Sherefkin, 2017).

The Stoic sage is apatheia, from the Greek meaning without feeling that the good life is life without passion. Giving the importance to external and attached to what is not under the control and set for upset and grief. The moral guide for living a good life and focusing on the components of life which we can control (Swift, 2021). Even though the Stoic belief in complete self-sufficiency is false, there is something to be said for a person who is not enslaved to the glitter of the world.  Put in a positive light the Stoic can be described as a self-commanding person-one who, rather than being the slave of fortune, is truly free just because she doesn’t care for the things that fortune controls.  Commanding herself, she commands all that is important for living well in a world in which most people value things-such as money that appears to offer power but offers slavery the wise person is the only truly, free person. (Sherefkin, 2017).

            Epicureanism seeks peace of mind and removes the unhappiness and unrest, they call such desires hollow because they know no limit and can never be satisfied.  No amount of money will ever be enough for those who pursue a life of wealth. These desires are not natural but a consequence of false beliefs and a corrupt society.  Natural desires, on the other hand, have limits and are easily satisfied.  Simple food can satisfy our hunger as well as the most expensive delicacies. 

The greatest source of misery and unhappiness, more than living an empty life, is our fear of death. The fear of death can be so intense that it can drive a person to suicide.  As Lucretius, a Roman disciple of Epicurus wrote “fear of death, Induces hate of life and light, and men are so depressed that they destroy themselves. Having forgotten that this fear.” Epicurus calls such desires “hollow” because they know no limit and can never be satisfied.  No amount of money will ever be enough for those who pursue a life of wealth. These desires are not natural but a consequence of false beliefs and a corrupt society.  Natural desires, on the other hand, have limits and are easily satisfied.  Simple food can satisfy our hunger as well as the most expensive delicacies. (Sherefkin, 2017).

Hobbes Approach to Balancing Liberty of Contract

The Philosopher Thomas Hobbes with his approach to pushing authority contract and power of the state, in which his treatment, properly appreciates authority’s source in individual liberty. The social contract binds man to civil society in establishing a legitimate government and subsuming all agreements. Wherein Hobbes makes it clear that the state will intervene in terms of the good of the people. While the sovereign power should exercise its influence (Pope, 2011).

In America, the philosophy of liberal democratic constitutionalism brought many heretofore overlooked as causes of faction are true as sown like the man as affliction will not be lightly overcome. The traces of its sources is through the diversity of passions and a difference in knowledge among men.

The American Constitution in light of Hobbesian principles touches the major parallels between our founding document and Hobbesian philosophy as itself a social contract, whereby the people of the several states divest themselves of certain powers and privileges for the sake of commodious living. Taken together, the Preamble’s tenets, forming the philosophic core of the new regime, coincide precisely with the contractual motivations espoused by Thomas Hobbes (Nichols, 2011).

Attention to the Present, Death, and Views Above

            Freedom from choosing beliefs is to ensure spiritual progress toward the ideal state of wisdom through self-control and meditation. According to Philosopher Pierre Hadot, “man lives in the world without perceiving the world.” This kind of belief is that we can only be in the present if free from the past and the future. Enjoy the present moment, live freely not thinking between the past and future, memory and expectation, regret and worry, and the process loses the present moment.

According to Pope (2011), the Stoics and the Epicureans explained the importance of being in the present moment. But what this meant in practice for them was very different. For the Stoic being in the present moment demanded constant tension and effort. For the Epicurean being in the present meant learning how to relax and have peace of mind. The difference Epicurean enjoys the present moment while the Stoic wills it intensely; for the one, it is a pleasure; for the other, a duty.   Though they seem like opposites, Stoicism and Epicureanism, like inhalation and exhalation, complement each other the Roman emperor and Stoic, Marcus Aurelius, believed we would be radically changed if we lived as if each day were our last. The thought of imminent death transforms our way of acting radically, by forcing us to become aware of the infinite value of each instant. We must accomplish each of life’s actions as if it were the last.

From the perspective of the universal, our cares and concerns seem trivial and insignificant. The view from above changes our value judgments on things: luxury, power, war…and the worries of everyday life become ridiculous.

Conclusion:

            The integrated view of the world is through our philosophy as a basis of system beliefs into reality. A foundation of knowledge, humankind, the role in the world, understanding of the existence and provides premises through the discovery of truth and by views in supporting life. From this point of view, this will test our character and critically determined the reality of the truth for the sake of attaining wisdom.

Philosophers are critical and reflective to give a view of the whole life, the life, and the world view, the discovery of knowledge, and other disciplines to achieve a wish to see life. It also attempts to bring the functions of human inquiry, religion, history, and science with the meaningful interpretation that may provide information, skills and knowledge, and views for our lives.

Philosophy makes people drive for decision-making because the fundamental questions of philosophy are important. Without a philosophy of man, reality, truth, value or group cannot poster good decisions for the lives of individuals or humankind. That no decision-making is unrelated to the issues of reality, truth, and value. A better function with proper understanding than to wonder what is all about life in ignorance of factors that shape our choices and beliefs.

 

 

 

 

 

 

 

 

References 

Dash, Shri Nikunja (2015). PHILOSOPHICAL FOUNDATION. Jigun Graphics

Badambadi, Cuttack-1. UTKAL UNIVERSITY: VANIVIHAR, BHUBANESWAR

Glock, Hans (2018). What is Analytic Philosophy?. https://philpapers.org/rec/GLOWIA-4 Retrieved May 17, 2022

Lloyd, Sharon A. (2018) Hobbes’s Moral and Political Philosophy. https://plato.stanford.edu/entries/hobbes-moral/ Retrieved May 15, 2022.

Nichols, Shaun (2011). An experimental philosophy manifesto. https://philpapers.org/rec/KNOAEP. Retrieved May 15, 2022.

Sherefkin, Jack (2017). Philosophy of Life. https: //www.nypl.org/blog/ 2017/09/13/ philosophy-way-life. Retrieved May 15, 2022.

Strickland, Donna. 2011. The Managerial Unconscious in the History of Composition Studies. Carbondale: Southern Illinois University Press 

Swift, Michael (2021). Integrative Psychotherapist | BSc(Hon), MSc, MBACP. https://www.counselling-directory.org.uk/memberarticles/how-stoicism-changed-my-life-and-can-change-yours-too. Retrieved May 14, 2022.

 

 

 

 

 

Myself, My Work, My God, and My Environment: Personal Reflection of My Existence

RACQUEL ISIDORA D. GUZMAN


This is my first attempt to deconstruct my inner self. I will decode the phenomenon as “Myself, My Work, My God, and My Environment.”

I am aware of the many factors which influence a person’s personality. The age-long debate on nature versus nurture is one way of determining or understanding the nature of a person. While it is true that my family background has something to do with the way I behave and socialize with anyone else, peer influence has also given me a great deal.

In terms of goals and priorities, I am greatly impressed and motivated by the success stories of individuals who particularly excel in their chosen fields and at the same time, they were able to manage a family who has a God-fearing, responsible, and well-disciplined children. With my vision of a secured family (in all aspects of life), I am motivated always to give my loved ones moral and financial support and protection, and by being a responsible wife, mother, and a public servant/worker.

I know myself well and I believe that a significant part of me needs to be worked upon. I have discovered that not many people strive for excellence in all areas of their lives. Some are excellent in one skill and careless in others. Others give their best at work but are sloppy at home. I have always put high regard for my family and work and maintain the beam to stay balanced. I always give my relationships and career goals equal and prior attention. A balanced life is what everyone else needs.  I make sure to attend to all-important family affairs without compromising my duties at work. I make sure that jobs on deck are delegated, if not, I must accomplish the tasks before the scheduled vacation leave/leave of absence.

I know I am a good listener, and I am quite a talker, which means I don’t only speak when spoken to. I make sure to contribute my own ideas, but I keep quiet when others are speaking. I think listening is a greater expression of love and concern. When I am in a group, I classify myself under the “laughing section” joining others having a showdown of good, clean humor. I am a perfectionist, such that I want to make sure of the things I am about to do, even the thoughts I am about to speak. A perfectionist in this case may be the reason why I am afraid to commit mistakes whenever I say something.  

There was a time when I was requested by a friend to answer a survey regarding Spirituality.  I was asked to rank these three: God, work, and family. This is what I answered: First, God; second, Family; and third, Work. I said God should always come first, followed by family, then work. I am not saying that work should be the least prioritized, but before work, God and family should come first. We live because of God's love and we work because of our family. God has been so good. Building a good relationship with God is a top priority for anyone believing in God; everyone should treat it as the most important task and as their major life event. If we do not have a normal relationship with God, then we do not deserve to be called believers—that is why establishing a good relationship with God is so important

Also, I am a nature lover. I believe nature restores and nature heals. In one study in Mind Organization (2007), 95% of those interviewed said their mood improved after spending time outside, charging from depressed, stressed, and anxious to calmer and more balanced. Other studies by Ulrich, Kim, and Cervinka (2012) show that time in nature or scenes of nature are associated with positive mood and psychological well-being, meaningfulness, and vitality.  I believe that the beauty of nature reduces anger, fear, and stress and increases pleasant feelings. It does not only make us feel better emotionally but also contributes to our physical well-being.

Discovering the inner me will make me pursue goodness in life, including my strong faith in my Savior, and of course excellence in work

  

Friday, March 26, 2021

Will Ethics Be Enough Reason to End Contractualization?

 

BRYAN L. RAPADAS

Divine Word College of Laoag

Abstract

The growing uncertainty and insecurity in the labor market are causing an alarm over the past years. Increasing unemployment and temporary employment arrangements worsen working and living conditions. This includes the contractual employees have to endure a hazardous, uncertain, and irregular working environment. Economic and financial challenges have caused widespread concern among workers. Often, statistics reflect only unemployment, but it fails to present that most people face a predicament who has work but do not have a decent occupation, a reasonable salary, security of tenure, social protection, and access to benefits and rights. The gravity of the problem requires a harmonized and systematic solution at national and global levels 

According to ILO Philippines (2017), precarious employment is described as a short-term or seasonal, or casual job, including fixed-term or temporary employment contracts and subcontracting arrangements.  This employment is disturbingly increasing not only in the informal economy but as well as in the formal economy.  Temporary employment is a serious threat to workers' rights to security of tenure, labor standards, job-related safety, and health, join labor unions, and social protection.  Contractual workers are hired to do the organization's vital work but are deprived of permanent employee rights. Many companies and organizations moved the gears towards temporary employment contracts through manpower services agencies and short-term or independent contractors instead of practicing permanent employment. 

Contractualization or more popularly known here in the Philippines as the "Endo" or "end of contract" or "5-5-5," is very much a contested form of employment in the country and even internationally.  Workers get hired not more than five months, so employers are not obliged to hire them as permanent employees on the sixth month as required by the Labor Code. It deprived contractual workers of all the rights and benefits granted by labor law to permanent employees. Due to legal loopholes surrounding the practice, Filipino workers' exploitation persists despite being declared illegal. Contractualization caught the attention of labor groups and political leaders, including President Duterte. Remember that during the election campaign of President Duterte, he promised to end the abusive labor practice endo.  However, it seems the conclusion has not yet come. The President certified the bill as urgent and sought to fulfill his promise, and eventually, he declined to sign the Security of Tenure (SOT) bill on July 26, 2019 (Santos, 2019). On December 1, 2020, the security of tenure bill was re-filed by the House of Representatives, which would ban labor-only contracts but would still allow justified and reasonable job contracting and fixed-term employment (Cepeda, 2020).

This article will tackle how contractualization began, its adverse effects, why it is happening, some advantages, possible effects of ending contractualization, and some key elements to prevent the progression of contractualization.

Keywords: endo, contractualization, business ethics, precarious work, temporary contract

Introduction 

Paqueo & Orbeta (2016) defines contractualization as generally practiced in the country and refers to a non-permanent form of employment mutually agreed in a contract by employee and employer through direct hiring or manpower service agency.  Most labor groups have claimed the practice violates the employees' rights and wellbeing. ILO (2011) added that contractual worker, includes the following forms: temporary employment contracts, hired through third-party manpower services agencies, subcontractors and workers declared themselves as self-employed even though they are reliant on and incorporated into the organization for which they fulfill the tasks. 

According to ILO Philippines (2017), Contractualization is characterized by employment term uncertainty and insecurity; multiple employers and vague employment relationship; a dearth of social protection and benefits; low pay; and freedom in joining a trade union and bargaining collectively. 

Furthermore, ILO (2011) also emphasized that, while the term precarious work is commonly used internationally, its definition remains ambiguous and complex. The severity of precarious work and other forms depends on the context of the country and its economic and social structure of the political systems. This resulted in several terms emerging from particular national contexts, such as temporary employment contracts, contractual employment, and contract of services. Forms of precarious work appear to be continually increasing, as employers regularly find alternative means to take advantage of the loopholes in regulations to boost their business's profitability at their employees' expense.

The European Metalworkers Federation (EMF) utilizes the term from a more extensive perspective: Precarious work is described as an atypical form of employment with low pay, no security of tenure, and inability to meet a living standard. Public Service International (PSI) holds that precarious work has indirect or vague employment with uncertainty and insecurity in the forms of restricted contract, temporary, employment-agency, casual, part-time, and seasonal contract with pseudo-self-employment. The International Metalworkers' Federation added that in Africa, precarious work is ordinary: four factors describe precarious employment: 1. employment security; 2. the ability to join trade unions which translates to authority to working conditions and autonomy; 3. the presence of mandated labor law protection; and 4. adequate salary to enable employees to enjoy a satisfactory standard of living. (ILO, 2011).

According to ILO (2011), as mentioned during the ILO Bureau for Workers' Activities (ACTRAV) Symposium, they identified two categories with corresponding conditions covering most of the adversely affected employees' precarious work arrangements:

Contractual arrangements

i.              Restricted continuance of contract (fixed-term, short-term, temporary, seasonal, day-labor, and casual labor)

 

ii.            Vagued employment arrangement (triangular and disguised employment, bogus self-employment, subcontracting)

Precarious conditions

i.          Low pay

ii.         No due process of employment termination

iii.        Deprivation to social protection and benefits

iii.           Workers unable or limited to practice labor rights 

How it Began in the Country

Ten years after implementing the Marcos regime's fare situated procedures, joblessness and underemployment trends caused unsteadiness in the public economy (Pasquin, 2018). The intense rivalry among industry players has prompted the shutting down of certain organizations that can no longer adapt to the competition's pace at the initial execution of streamlined commerce amid the 1980s. According to Macaraya (1999), those who were able to continue doing their business regardless of the economic changes recovered by making adjustments in their operations by taking advantage of technology innovations and an adaptable workforce. Using Herrera Law as a reference, contractualization then became a common practice and customary in the country.  The late Senator Ernesto Herrera introduced labor contracting by authoring revisions in 1989 to the Labor Code. By including a bill mandating the regularization of employees who have rendered six months of continuous service, others claim that companies were allowed not to regularize employees and rehire them after laying off for five months (Fernandez, 2016), though not without abuses as the unintended consequences.

The Negative Effects of Contractualization

No security of tenure. The normalization of precarious employment shows its intensely damaging consequences on society. It gives workers and communities uncertain and vulnerable situations, obstructing their life planning options. (ILO, 2011). 

With the critical focus on the flexible purpose of employment, contractual have no security of tenure, due to the nature of their work and employment, they are quickly hired and can be easily fired, especially to the low-skilled workers, which can be easily replaced, performing only peripheral functions to the firms' main objectives. 

Workers on temporary contracts may profit in the short term but will have to endure a risky situation in the long run due to contract renewal uncertainty. Temporary contracts are often linked to low pay and do not give the same benefits as the regular employees, which often accumulate as time goes by and are related to the employment tenure and status. As a result, workers will have challenges planning for their future (ILO, 2011).

Addison & Surfield (2009) also added that precarious work prevents employees from committing to their long-term plan for their lives due to unstable employment. In particular, temporary workers will have challenges getting married, having a family of their own, or building their own house due to their contracts' uncertain continuity and low wages. 

Researches discovered that contractual employees and even those inflexible employment desire a clear and rational life plan are exceptionally high.  In the context of the need for stable career paths, if an employee has only two choices, such as joblessness or temporary work, temporary work is preferred. However, the study additionally shows that a significant part of the apparent "advantage" of temporary work, broken career path is undesirable. 

Income security. According to Li Kungang (2010), if the company violates employees' rights by not giving overtime pay and remitting social insurance premiums, the contractual worker has no choice but to take it because it might cause the non-renewal of his/her contract. ILO (2011) also added that precarious work has been causing the low pay sector's upsurge. In countries without the full support of labor unions and mandated minimum pay, the descending trend in wage rates is exceptionally high during joblessness periods. People have no option but to take precarious jobs for mere survival even without social protection.

Lack of clarity. Another issue discussed by Fudge (2006) about contractualization is the ambiguity regarding the employer's information.  The involvement of subcontractors, franchisers, and agencies in the arrangement made it more complex. The legislation was not able to follow organizational adjustments, it failed to distinguish complicated multidimensional and the traditional simple mutual relationship between an employee and employer.  ILO (2011) added that workers hired by a manpower agency but who work for a detached entity are at risk because it is uncertain from the two parties, which are in charge and answerable for a worker's privileges and welfares. Due to weak labor law enforcement, it causes a trap to the workers in triangular or disguised employment, preventing them from protecting their rights. Through these practices, companies avoid their duties and responsibilities as employers.  

No trade union rights. Most contracts of services are not allowed to join a labor union, or if they are allowed, they are afraid to voice out their concerns because their contract can be terminated anytime. Limiting contractual workers from joining a labor union is one way of depriving them of raising their concerns, priorities, grievances, defending their interests, and engaging in negotiations and discussions with the employer. They are being suppressed to exercise their right of freedom of choice. 

Because of distress and uncertainty, workers are discouraged from joining labor unions, aggravating their vulnerability to precarious work arrangements. Workers are also discovered more likely to experience work-related safety and health issues (ILO, 2011). 

The workers have considerable leverage to influence working conditions under potentially dangerous circumstances through a labor union. Unions typically emphasize keeping workers healthy, injury-free, and wellbeing.

No paid leaves. The situation is aggravated because the contractual does not have paid leaves (for vacation and sick leave) but are subject to sanctions for tardiness and absences. They are in a no-work, no-pay arrangement. In particular, women find themselves more disadvantaged as service contractors because they are not granted paid leaves either for childbirth/-care, elderly care, or other domestic responsibilities. 

Lack of security and social protection. Job Orders (JOs) and contractual workers do not enjoy of having benefits such as social protection, 13th-month pay, personnel economic relief allowance (PERA), cost of living allowance (COLA). It is the workers' personal decision to have their social benefits and pay the premiums from their pocket.

Health and safety risks. According to Benach & Muntaner (2007), temporary work employment is linked with poor health and wellbeing situations. Employees are mostly exposed to risky work environments, stressful psychological and social working environments, and work overload. Research also discovered that contractual employees have the tendency not to get proper preparation for the work they do and that regulatory bodies do not regularly monitor their occupational safety and health. 

Quinlan (1999) also added that the employment relationship's precarious nature could poorly affect the worker emotionally and psychologically. Workers are pressured to accept the work, even their wellbeing and security are at risk. Subcontracting is also one way for companies to shift the responsibility by contracting out dangerous jobs, giving precarious workers the burden of more hazardous tasks.  In most countries, bogus self-employed workers do not receive any assistance from employees' compensation or health insurance risking long-term unemployment if they get injured or sick. 

Negative social impacts. The problem in democracy caused the underprivileged to feel powerless, underestimated, and no control over their own lives. This statement can stress that complete powerlessness means ending to be an independent individual. The feeling of restraint of a person to choices and fulfillment fuels the notion of defeat. The youths' frustration in deprived metropolitan areas does not have respectable jobs, causing them not to be hopeful for their future, lives, being, career and leading them to constant fiery rebellions. (ILO, 2011)

Precarious work has remarkably deteriorated the stability of society. The feeling of weakness and fear of adjustment cause workers to lose their confidence from joining labor unions and community organizations. In times of economic uncertainty, the government implements strict economic policies by cutting government spending and reduce social protection, which causes growing social disorder globally. The means of democracy are critical to raising these populations' common issues. This highlights the need for labor unions to gather the interests of the deprived and articulate their demands.  This is why political leaders should promote and point out the importance of self-organization to provide a platform for participation and fight for social inclusion (ILO, 2011).

Unjust. Because the policies are not fair when it comes to benefits for permanent employees and service contractors, even if contractuals work harder than some permanent employees, all the privileges and benefits are only for the latter. Those who work hard should also be appropriately compensated, just like regular employees. The permanent employees get all the bonuses and allowances while the contractuals who have helped them attain their performance ratings get nothing. 

Lower job satisfaction. Precarious workers experience higher perceived job insecurity rates associated with lower job satisfaction, mental health, and life fulfillment. Temporary contracts are perceived to have job insecurity held in various national and sectoral contexts from public sector employees in the United Kingdom (Guest and Conway, 2000).

With the idea of having uncertain and insecure employment, fixed-term employees are more inclined to experience mental fatigue, physical exhaustion, stomach aches, and increased illness (Aronsson et al., 2002). Thus, Warr (1994) included job insecurity as the primary stressor in temporary employment arrangements in his general framework for studying work and mental health. Guest and Conway (2000) added that temporary contracts are linked to lack of work-life balance, job dissatisfaction and more likely not to stay long in the company. Finally, Quinlan et al. (2000) argued that job dissatisfaction results from lack of training, supervision, and limited access to information associated with temporary contracts instead of solely to the work relationship's limited duration.

Why is it happening? 

According to Arthurs (2006), most countries have distributed the responsibility of enforcement and regulation of labor law among the various departments, which caused an unclear and vague platform to air concerns and influence policy. Weak implementation of labor law left those protected workers still feel unsecured. Moreover, ILO (2011) added that labor law enforcement deteriorated because of austerity measures made by the government. This is commonly experienced in the under-funded labor departments.

As per Civil Service Rule, government agencies are allowed to hire service contractors for a short duration only not exceeding six months for "piece work" or intermittent jobs which are peripheral tasks only. However, in reality, they are hired to render services essential to the government agency's functions or similar to those performed by regular employees. This causes the renewal of their contract and extending them for years.  The same goes with the private entities, they terminate the contract before the sixth month to avoid regularization of an employee, but in reality, the worker plays an important role and has a significant contribution to the company. Private organizations practice contract of service employment primarily to increase profits by hiring cheap labor, while for the government is due to limited budget resources.  

Some advantages of contractualization

Organizations hire contractual as a transition to regular work, it has been a good path toward the regularization of employment. This may also open an opportunity for applicants, especially fresh graduates, to earn experience.

Contratualization creates job opportunities for the unemployed especially for the low-skilled workers from the deprived families who can apply to private businesses who only need a high school graduate or college undergrad to do peripheral level tasks.  Most of the time, in government agencies, applicants should have a bachelor's degree, limiting the qualified candidates.

On the employer's part, they hire contractual to cut and avoid spending. It is more economical than maintaining a larger core workforce that would require more generous compensation comprising regular employees with labor entitlements and attaining a lean but means structure and has flexible work arrangements to augment their remaining regular workforces.

According to Osoro (2020), some authorities claim that the practice has considerably helped economic growth. To them, hiring workers on a temporary employment contract helped the jobless.  In the long run, this progresses the status of the economy. Also, contractualization promotes recruitment flexibility for companies. Combining both regular and temporary workers stimulates an efficient and productive environment.

Some key elements to prevent the progression of Contractualization

Paqueo & Orbeta (2016) mentioned that President Duterte and his economic advisors are carefully weighing the effects of ending endo and of restraining other forms of the contract of services. The urgency of ending the endo is an overstatement that could significantly hinder the country's economic growth. At present, the government may find a way and prioritize creating better job opportunities for informal workers, ease up the use of contracts of services, and find ways of giving better-paying jobs, stable sources of income, and tenure security.

ILO (2011) stressed that contractual workers in a company must be restricted only to actual rational requirements during peak seasons for labor demand. No company should be permitted to hire more than the rational limit, like five percent of their human resources. Temporary contracts should be justified and converted to a permanent contract after the probationary period if the work required is part of the company's essential processes. 

Pedersini & Coletto (2010) highlighted that some nations implemented regulations to avoid the abuse of contractual workers, such as:

1)    According to purposes or situations in which a company needs to hire temporary workers.

2)    The employer is restricted only to a certain percentage of the total number of workers.

3)    Certain sectors are not allowed to hire temporary workers.

4)    Regulating the length or quantity of short-term tasks for a particular worker. Some instances are:

Belgium permits the hiring of temporary workers only in the following conditions:

            I.  to work as a substitute for a regular employee;

          II.  for reinforcement during exceptional peak seasons of labor;

         III.  unusual job assignment;

        IV.  and for artistic presentation.

France's regulation is stricter because temporary workers can be hired for the following conditions:

            I.  substitute for absent employees;

          II.  accomplish the momentary upsurge of work; and

         III.  do essentially time-limited jobs.

The temporary work is also restricted to 18-24 months only, or else the contract needs to become permanent.

This is better than any other European nation such as Poland, Romania, and Italy, where the maximum limit is between 24-36 months.

A successful business should treat and rightfully reciprocate to their employees by giving them a just salary, conducive and safe working conditions, concern about their health and wellbeing, and most of all, security of tenure. If a business can provide these benefits to their employees including their contractual, the business will thrive in the long run as it will help boost the business output and decrease unnecessary expenses in the future; here is why. 

1

talTalented workers will be loyal to the company in the long run.  When an employee stays longer in a company, the more they appreciate and comprehend the work processes and the company's cause. It will result in less disruption from new hires learning new duties. The business will save resources for the new recruitment.

3.       Motivated employees produce a high output.  When they are paid more, they will work more diligently to justify their salary. Employees can also focus on their work rather than the dwelling of their unsatisfactory pay. 

4.       When employees give valuable or excellent work, they justify compensating for it. They should receive a reasonable portion in exchange for the value they are giving to the company.

5.       With the best and most talented employees, the output can be significantly higher. Subsequently, the business will need fewer employees, saving the business in net salaries.

Possible Effects of Ending Contractualization

President Duterte believes that ending contractualization causes an imbalance between investors and businesses and will put the Filipino workers in a difficult situation in the long run. However, he stressed that while he remains committed to eliminating the abuse of contractual employment, workers' and employers' interests should healthily co-exist. He highlighted that his goal is to end the exploitation while giving the businesses the freedom to participate in those practices advantageous to both management and the workforce.

The National Economic and Development Authority Secretary Pernia added that the law should benefit both the workers and employers as they submit to the President their proposed adjustments and recommendations to the SOT bill

Some business groups and organizations prompted the President if he endorses the bill, it could lose the confidence of the foreign and local investors, which will result in unemployment and a decline in job opportunities. The Employers Confederation of the Philippines said that the President might have comprehended the bill's adverse effect on the economy. The government only needs to re-enforce the existing labor regulations to combat illegal contractualization and not a new law. (Santos, 2019).

Conclusion

When a business becomes successful and incredibly profitable, the company should ethically and morally also give back to the employees by giving them the security of tenure and increasing their compensation and benefits because they are the ones who accelerate the business. If their pay affects their dependability, somehow, it will also impact their efficiency. This translates that their security and compensation are directly related to the company's success. Their satisfactory compensation supports their own life and influences their decisions. This is also what Stakeholder theory assumes that the success of a business can be measured in the value they give to the majority of their stakeholders, where employees are considered the most significant non-shareholding corporate stakeholding group. (Lynch-Fannon, 2004) 

Contractual workers are usually exempted from most labor protections and risky tasks. Agency employment relationships allow employers to avoid providing benefits as the permanent employers are enjoying. Moreover, the use of temporary and subcontracted labor commonly leads to the abusive use of such contracts that leave workers defenseless to unjustified employment termination, low job security, low wages, and little to no access to social security benefits. Workers' access to trade union rights is limited because they are hired temporarily or subcontracted.  They have legal restrictions to join the trade union and to be a part of a bargaining agreement.

Contractual workers should be treated equally with respect, the use of temporary contracts should not compromise their wages, working conditions, social and labor protection, and rights in joining the collective agreement same as other organization workers. Ethically, this is why permanent employment and direct hiring are much preferred and advantageous to contractual workers. 

The author was once a contractual employee and knew the feeling of being there.  He experienced working until 4 am for a week to finish a report. He experienced working beyond office hours and spending the weekend for his supervisor's interest. He experienced rendering overtime even without pay. He also experienced working a month without salary or allowance because the budget and contract are waiting to be approved.  All of these, he could not complain due to the fear of not getting his contract renewed, he had no voice, he felt so powerless and so abused. 

            The author hopes that whoever works hard should also be appropriately compensated regardless of employment status and that is using the relationship as an ethical base. This is the give-and-take (vice-versa) relationship between the employer and the employee.

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