Beyond Profits: Finding the Heart in Corporations

 Charymelle O. Foronda

Divine Word College of Laoag

Abstract

Ever wonder if companies can actually be good? This paper dives into the complicated world of corporate ethics, questioning whether these "artificial persons" we call corporations can truly be held responsible for their actions. It's a tough question, especially when companies are made up of so many different people. We're exploring how to build a system where ethics aren't just an afterthought, but a core part of how companies are run. We'll look at everything from treating stakeholders right to leading with integrity and staying ahead of the curve in a rapidly changing world. Our goal? To give you practical advice and fresh perspectives on how businesses can navigate ethical dilemmas and make a positive impact. We'll be referencing some big thinkers in the field, like Freeman, Carroll, and Paine, to guide our discussion.

Keywords

Corporate Moral Responsibility, Business Ethics, Stakeholder Theory, Corporate Social Responsibility, Ethical Leadership, Corporate Governance, Organizational Ethics, Corporate Accountability, Ethical Decision-Making

Introduction

Let's face it: corporations have a huge influence on our lives. They shape our society, impact the environment, and drive the economy. From the clothes we wear to the food we eat, from the technology we use to the jobs we hold, corporations are woven into the fabric of our daily existence. But can we really expect them to be ethical? After all, they're not people—or are they? This paper is all about exploring that question and figuring out how we can encourage companies to do the right thing.

It's a question that's becoming increasingly urgent. We live in a world where trust in institutions is declining, and people are demanding more from the companies they support. They want to know that the businesses they patronize are not only profitable but also responsible and ethical. They want to see companies taking action on issues like climate change, social justice, and economic inequality.

We're going to dig into the nitty-gritty of corporate ethics, looking at the theories, the challenges, and the potential solutions. By hearing from ethicists, business leaders, and everyday folks like you and me, we hope to get a better handle on what corporations owe us in the 21st century. It's a complex issue with no easy answers, but it's a conversation worth having.

The Nature of Corporate Moral Responsibility: Are Companies Like People?

So, what does it even mean for a corporation to be "morally responsible"? Unlike us, companies don't have feelings or a conscience. They're basically legal creations designed to make money. But their actions can have a massive impact on people, communities, and the planet.

And what about this idea of "corporate personhood"? Should companies have the same rights as individuals? And if so, should they be held to the same ethical standards? Think about it: if a company can donate to political campaigns like a person, shouldn't it also be held accountable for its environmental impact like a person?

It's also important to distinguish between what's legal and what's ethical. Just because a company is following the law doesn't mean it's doing the right thing. That's why we need to think about ethics as something that goes above and beyond mere legal compliance. For example, a company might legally avoid paying taxes through loopholes, but is that ethical if it means less funding for schools and healthcare?

Theoretical Frameworks for Corporate Ethics: How Should Companies Behave?

One helpful framework is stakeholder theory. It basically says that companies have a responsibility to consider the interests of everyone affected by their actions—not just shareholders, but also employees, customers, suppliers, and the community (Freeman, 2010). By balancing the needs of all these stakeholders, companies can create value for everyone. Imagine a local factory: if it pollutes the nearby river, it's not just affecting the environment, but also the fishermen who rely on that river for their livelihood. Stakeholder theory encourages the factory to consider its needs too.

Then there's corporate social responsibility (CSR), which is all about companies taking voluntary action to address social and environmental issues. This could include anything from donating to charity to reducing their carbon footprint. CSR can not only boost a company's reputation but also make a real difference in the world. Carroll's (1991) pyramid of CSR helps us understand the different aspects of corporate social responsibility. It's not just about philanthropy; it's about integrating ethical practices into every aspect of the business.

Of course, making ethical decisions isn't always easy. That's why ethical decision-making models can be so useful. These models provide a step-by-step approach to identifying ethical dilemmas, considering different options, and choosing the most ethical course of action. Think of it like a moral compass for businesses.

Challenges to Corporate Moral Responsibility: Why Is It So Hard to Be Good?

One big challenge is the diffusion of responsibility. In big companies, decisions are often made by lots of different people, which can make it hard to figure out who's to blame when something goes wrong. This can create a culture where no one feels truly accountable. It's like a game of "not it," but with serious consequences.

Another challenge is conflicting interests. Companies are under pressure to make money for their shareholders, which can sometimes lead them to prioritize profits over ethics. It takes strong leadership to resist this pressure and make decisions that are both ethical and profitable. This is where the rubber meets the road: can companies truly balance profit and purpose?

Finally, organizational culture plays a huge role. If a company values integrity and transparency, it's more likely to act ethically. But if it tolerates unethical behavior, things can quickly go downhill. Paine (1994) reminds us how important it is to manage for organizational integrity. A strong ethical culture starts from the top and permeates every level of the organization.

Fostering Ethical Corporate Culture: How Can We Encourage Good Behavior?

It all starts with leadership. Ethical leaders set the tone for the entire organization by showing a commitment to ethical principles. They hold themselves and their employees accountable and create a culture of open communication. Leaders need to "walk the talk" and demonstrate that ethics are not just words on a page.

Ethics training and education are also essential. By teaching employees about ethical principles and how to navigate ethical dilemmas, companies can empower them to make good decisions. This isn't just about compliance; it's about fostering a sense of moral responsibility in every employee.

Finally, it's important to have whistleblowing mechanisms in place. These mechanisms provide a safe way for employees to report unethical conduct without fear of retaliation. A robust whistleblowing system can act as a safety net, catching unethical behavior before it spirals out of control.

The Impact of Technology on Corporate Ethics:

Technology has become deeply intertwined with every aspect of business, creating a host of new ethical challenges. Data privacy and security are paramount, as companies collect vast amounts of personal information. Ethical considerations arise in how this data is collected, stored, and used, and companies must prioritize transparency and security to maintain trust with their customers. Data breaches can have devastating consequences, not only for the company's reputation but also for the individuals whose data is compromised.

The rise of artificial intelligence (AI) and automation also brings ethical implications. Algorithmic bias, where AI systems perpetuate existing societal biases, is a major concern. Companies need to ensure that their AI systems are fair, transparent, and accountable. The impact of automation on employment is another ethical consideration, as companies must consider the social consequences of replacing human workers with machines.

Social media and online reputation management present further ethical risks. The spread of misinformation and hate speech online can have serious consequences, and companies have a responsibility to combat these issues. Transparency and honesty in online communications are also essential, as companies must avoid deceptive marketing practices and maintain open and honest dialogue with their customers (De George, 2003).

Globalization and Cross-Cultural Ethics:

In today's interconnected world, companies operate across borders and cultures, navigating a complex web of different norms and values. What might be considered ethical in one country could be seen as unethical in another, creating dilemmas for multinational corporations. These differences can extend to areas like labor practices, environmental regulations, and bribery and corruption. Companies must be sensitive to these cultural nuances and strive to uphold ethical standards that are both culturally appropriate and universally acceptable.

Ethical challenges in global supply chains are particularly pressing. Labor exploitation, environmental degradation, and human rights abuses are just some of the issues that can arise in complex global supply chains. Companies have a responsibility to ensure that their suppliers are adhering to ethical standards and that workers are being treated fairly and with respect. This requires careful monitoring and auditing of supply chains, as well as a willingness to take action when unethical practices are discovered.

Promoting ethical business practices in developing countries is essential for ensuring fair and sustainable economic development. Companies should invest in local communities, promote education and training, and support local businesses. They should also avoid engaging in practices that could harm the environment or exploit local resources. Donaldson and Dunfee's (1999) integrative social contracts theory offers a framework for navigating these cross-cultural ethical challenges, emphasizing the importance of respecting local norms while upholding universal ethical principles.

The Role of Regulation and Oversight:

Government regulation plays a crucial role in setting the baseline for ethical corporate behavior. Laws and regulations can establish minimum standards for environmental protection, worker safety, and consumer protection. However, the effectiveness of regulation depends on strong enforcement mechanisms and a willingness to hold companies accountable for their actions. When regulations are weak or poorly enforced, companies may be tempted to cut corners and engage in unethical practices.

Independent oversight bodies, such as ethics commissions and consumer protection agencies, can provide an additional layer of accountability. These bodies can investigate complaints, conduct audits, and issue penalties for unethical behavior. Their independence is essential for ensuring that they are not influenced by political or corporate interests.

Industry self-regulation, through the development and enforcement of ethical codes of conduct, can also be effective. However, self-regulation requires a strong commitment from industry leaders and a willingness to hold their peers accountable. Without this commitment, self-regulation can become a toothless tiger, failing to prevent unethical behavior. Goodpaster (1991) highlights the importance of considering stakeholders when making ethical decisions, emphasizing that ethical decision-making is not just about following the law but also about considering the impact on all stakeholders.

Environmental Ethics and Sustainability:

Corporations have a profound impact on the environment, and they have a responsibility to minimize their negative effects and promote sustainability. This means reducing pollution, conserving resources, and addressing climate change. Companies should invest in renewable energy, reduce their carbon footprint, and adopt sustainable business practices.

Sustainable business practices involve integrating environmental considerations into all aspects of corporate operations, from product design and manufacturing to supply chain management and waste disposal. This requires a long-term perspective and a willingness to invest in environmentally friendly technologies and practices. It also requires a commitment to transparency and accountability, as companies must be willing to disclose their environmental performance and be held accountable for their actions.

Addressing climate change is one of the most pressing ethical challenges facing corporations today. Companies have a responsibility to reduce their greenhouse gas emissions and to support policies that promote a low-carbon economy. This requires a fundamental shift in how companies operate, moving away from fossil fuels and towards renewable energy sources. Hartman, DesJardins, and MacDonald (2013) offer insights on integrating personal integrity and social responsibility, challenging us to think about how we can create businesses that are not only profitable but also environmentally and socially responsible.

Conclusion

Corporations have a tremendous impact on our world, and it's up to all of us to hold them accountable. By embracing ethical principles, engaging with stakeholders, and fostering a culture of integrity, companies can contribute to a more just and sustainable future. It's not just about following the law—it's about proactively addressing the ethical challenges of our time and setting a new standard for corporate moral responsibility. Let's work together to create a world where corporations are not just profitable but also ethical and responsible. It starts with each of us demanding more from the companies we support and holding them accountable for their actions.

References

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.

De George, R. T. (2003). The ethics of information technology and business. Blackwell Publishing.

Donaldson, T., & Dunfee, T. W. (1999). Ties that bind: A social contracts approach to business ethics. Harvard Business School Press.

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.

Goodpaster, K. E. (1991). Business ethics and stakeholder analysis. Business Ethics Quarterly, 1(1), 53-73.

Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2013). Business ethics: Decision making for personal integrity & social responsibility. McGraw-Hill Education.

Paine, L. S. (1994). Managing for organizational integrity. Harvard Business Review, 72(2), 106-117.

 

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When Personal Ties Override Merit: Ethical Impacts of Nepotism and Favoritism on Employee Morale and Organizational Performance

 Jenina Shane Sarmiento

Divine Word College of Laoag

Abstract

Nepotism and favoritism remain pervasive ethical challenges in modern organizations, often undermining principles of fairness, transparency, and meritocracy. Nepotism involves preferential treatment toward family members, while favoritism extends to friends or selected individuals regardless of competence or performance. Although these practices are sometimes justified by trust, loyalty, or cultural norms, research shows that they frequently lead to ethical dilemmas that negatively affect employee morale and organizational effectiveness (Ferrell et al., 2019; Treviño & Nelson, 2021). This article examines the ethical implications of nepotism and favoritism, analyzes their impact on employee morale and organizational performance, and highlights the role of ethical leadership and institutional policies in mitigating their harmful effects.

Keywords: Nepotism, Favoritism, Workplace Ethics, Employee Morale, Organizational Performance, Ethical Leadership

Introduction

Ethical conduct is a fundamental pillar of effective organizational management. Employees expect that decisions related to hiring, promotion, and compensation will be based on competence, performance, and fairness (Robbins & Judge, 2021). However, many workplaces struggle with ethical violations such as nepotism and favoritism, where personal relationships influence managerial decisions.

Studies in organizational behavior indicate that perceptions of unfairness significantly reduce employee trust and engagement (Greenberg, 2011). When personal ties override merit, employees may feel demotivated and disengaged, ultimately harming both individual and organizational outcomes. This article explores nepotism and favoritism as ethical issues and examines their effects on employee morale and organizational performance.

Understanding Nepotism and Favoritism

Nepotism is defined as preferential treatment given to relatives in employment decisions, while favoritism refers to biased treatment toward friends or preferred individuals without regard to qualifications (Dessler, 2020). Both practices violate merit-based principles central to professional management and human resource ethics.

According to Noe et al. (2020), meritocratic systems are essential for motivating employees and ensuring organizational efficiency. When these systems are compromised, employees may perceive that effort and competence are no longer valued, leading to dissatisfaction and reduced commitment.

Ethical Perspectives on Nepotism and Favoritism

Nepotism and favoritism conflict with several ethical theories. Justice and fairness theory emphasizes impartiality and equal opportunity, which are undermined when bias is present (Greenberg, 2011). Deontological ethics argue that managers have a moral obligation to follow ethical rules and standards, regardless of personal relationships (Shaw & Barry, 2016).

From a utilitarian perspective, favoritism benefits a limited number of individuals while harming the majority by reducing morale and organizational effectiveness (Ferrell et al., 2019). These practices weaken the ethical climate of organizations and normalize unethical behavior over time (Treviño & Nelson, 2021).

Impact on Employee Morale

Employee morale is highly influenced by perceptions of fairness and justice in the workplace. Research shows that favoritism leads to frustration, resentment, and emotional withdrawal among employees who feel disadvantaged (Robbins & Judge, 2021). This often results in lower job satisfaction, decreased motivation, and reduced organizational commitment.

Low morale may also manifest through increased absenteeism, workplace conflict, and higher turnover rates (Noe et al., 2020). Even employees who benefit from favoritism may experience stress, social isolation, and credibility issues, which can negatively affect team dynamics (Greenberg, 2011).

Consequences for Organizational Performance

Organizational performance depends on placing the right individuals in the right roles. When nepotism and favoritism override merit, unqualified individuals may occupy key positions, leading to poor decision-making and reduced productivity (Dessler, 2020).

Favoritism also damages teamwork and collaboration. Employees may withhold effort or ideas when they believe outcomes are predetermined by personal relationships rather than performance (Robbins & Judge, 2021). Over time, this reduces innovation, efficiency, and overall organizational competitiveness.

Legal, Professional, and Reputational Risks

Beyond ethical concerns, nepotism and favoritism may expose organizations to legal risks, particularly when they result in discriminatory practices. Labor and employment laws in many jurisdictions emphasize equal opportunity and non-discrimination (Shaw & Barry, 2016).

From a professional standpoint, human resource management standards stress transparency and accountability (Noe et al., 2020). Organizations perceived as unfair may suffer reputational damage, making it difficult to attract and retain talented employees and maintain stakeholder trust (Ferrell et al., 2019).

The Role of Ethical Leadership and Organizational Culture

Ethical leadership plays a crucial role in preventing nepotism and favoritism. Leaders influence organizational norms through their decisions and behavior. When leaders demonstrate fairness and integrity, employees are more likely to trust management and adhere to ethical standards (Treviño & Nelson, 2021).

An ethical organizational culture encourages open communication, ethical training, and accountability mechanisms. Such environments reduce tolerance for biased practices and promote long-term organizational sustainability (Ferrell et al., 2019).

Strategies for Preventing Nepotism and Favoritism

Organizations can address nepotism and favoritism through several evidence-based strategies:

            •           Implementing merit-based recruitment and promotion systems (Dessler, 2020)

            •           Enforcing conflict-of-interest and anti-nepotism policies (Noe et al., 2020)

            •           Using standardized and transparent performance evaluations (Greenberg, 2011)

            •           Providing ethics and leadership training (Treviño & Nelson, 2021)

            •           Encouraging whistleblowing with strong protection mechanisms (Ferrell et al., 2019)

These strategies help rebuild trust, improve morale, and enhance organizational performance.

Conclusion

When personal ties override merit, organizations face significant ethical and operational challenges. Nepotism and favoritism undermine employee morale, weaken organizational performance, and erode ethical standards. Research consistently shows that fairness, transparency, and ethical leadership are critical to sustaining motivated and high-performing workplaces (Robbins & Judge, 2021; Treviño & Nelson, 2021). Addressing nepotism and favoritism is therefore not only a moral obligation but also a strategic necessity for long-term organizational success.

References

Dessler, G. (2020). Human Resource Management (16th ed.). Pearson Education.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2019). Business Ethics: Ethical Decision Making and Cases (12th ed.). Cengage Learning.

Greenberg, J. (2011). Behavior in Organizations (10th ed.). Pearson Education.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Fundamentals of Human Resource Management (8th ed.). McGraw-Hill Education.

Robbins, S. P., & Judge, T. A. (2021). Organizational Behavior (18th ed.). Pearson Education.

Shaw, W. H., & Barry, V. (2016). Moral Issues in Business (13th ed.). Cengage Learning.

Treviño, L. K., & Nelson, K. A. (2021). Managing Business Ethics: Straight Talk About How to Do It Right (7th ed.). Wiley.

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Wage Theft: An Ethical Challenge in BPO Companies in the Philippines

 JENNYVIEVE ABUCAY

Divine Word College of Laoag

Abstract

Business Process Outsourcing (BPO) is one of the major contributors to the economy and is considered the largest employer in the Philippines. In this industry, the issue of ethical challenges is still current and is linked to the topic of wage theft. As employees, it is expected that they receive their due compensation for their work; not only that, they should receive it on top form—and unfortunately, not all receive these on time. The ethical issues involving unpaid overtime, wage discrimination, misclassification, and unpaid wages continue to be faced, even with the expansion of the industry. This article will provide a discussion and the Impact of wage theft and labor law violations, an overview of the Philippine laws and policies with regard to the matter, and a discussion for the solutions for each issue. This is to ensure fair compensation for employees and for their well-being, and ethical business practices.

Keywords: wage theft, BPO industry, ethical challenge, labor ethics, labor law, Philippines laws and policies

Introduction

In the Philippines, BPO is considered the key factor for economic development as it provides job opportunities for customer service agents, IT professionals, financial staff, and back-office personnel to various clients around the world. However, despite these opportunities, BPO still experiences issues associated with labor standards, particularly with respect to wage thefts. This is a form of non-compliance with laws, apart from moral dilemmas arising from employee financial security, welfare, and employee trust and confidence in the management.

 “Wage theft” is a general term that encompasses a variety of illegal activities by employers aimed at denying employees their fair wages or earnings. It encompasses payment of less than the set minimum wage rates, failure to pay employees for their services, fringe benefit deductions not authorized or mandated by the laws of the land or country for services such as the provision of uniforms, tools, or equipment. Additionally, failure to pay employees for working over the usual eight hours a day or on rest days/holidays, and treating usual employees as contractual or “independent contractors” (Respicio, 2025).

Ethical Challenges of Wage Theft in BPO Companies

 

Unpaid or Underpaid Overtime and Night Differential. BPO workers usually go beyond their eight-hour work schedule due to international clients’ time constraints. Based on the PH Labor Law, an additional 25% rate is applicable for OT, while night differentials require a 10% premium (LaborLaw.ph, 2023; RespiCio, 2023a). Against this legal provision, many claim unpaid OT, off-clock work, or improper documentation (Delapena, 2021).

Misclassification and Contractual Exploitation. Some workers are also misclassified as contractual or non-standard employees to bypass legal protections. Misclassification covers benefits such as SSS, PhilHealth, and Pag-IBIG contributions, putting workers at risk (RespiCio, 2023b).

Low Base Pay and Heavy Reliance on Incentives. Entry-level jobs usually have a low base pay, and thus, many employees must rely on incentives to provide for their needs. However, if an incentive is cut or delayed, workers face instability in paying their bills on time and are treated as receiving unfair pay. (Philstar, 2023).

Lack of Worker Awareness or understanding of working rights. There is a likelihood that the worker does not understand the concept of overtime pay or night differential pay. This creates a challenge for the worker because they cannot claim the benefits accordingly (Delapena, 2021).

Job Insecurity and Weak Unionization. There is a lack of job security, contract ambiguity, and possibilities of unionization among BPO employees. The lack of union representation among BPO employees affects their ability to resist unfair practices (Philstar, 2023).

Psychological and Social Impacts. Poor compensation and wage theft result in stress, anxiety, burnout, and low worker morale. This makes employees feel taken advantage of or underappreciated at work (RespiCio, 2023c).

Impacts of Wage Theft

Wage theft may have implications for the mental state of the workforce. It may lead to stress and anxiety among the workforce. Secondly, the financial condition may result in instability in finances. Lack of finances may lead to expenditure on debts. Furthermore, the sector in which it will hit may experience a lack of trust and a lack of loyalty.

Addressing Wage Theft in BPO Companies

Wage theft remedy and inequalities in the BPO industry will need a different strategy that can end with the enforcement of the law, companies taking responsibility, employee empowerment, and a holistic approach for the industry.

Strengthening Legal Enforcement

More regular and surprise checks should be carried out by the Department of Labor and Employment (DOLE) to ensure that BPO companies are conforming with Labor Laws, specifically those related to overtime, night differential premium, and minimum wage requirements (RespiCio, 2023c). Furthermore, what can strengthen the preventive measures against Wage Theft is if Congress passes and implements its Wage Theft Prevention Act (Senate Bill No. 81), that will hold violators criminally liable (Senate of the Philippines, 2023). Aside from that, it should simplify its complaint process in which it should set up complaint mechanisms where employees can file their complaints anonymously.

Transparent and Fair Compensation Structures

BPO firms must apply clear salary scales in must develop transparent compensation structures. These structures shall define the base salary, bonus, allowance, and overtime compensation. The compensation statement shall break down all compensation components. Moreover, it is necessary to keep an accurate timekeeping system, and there is a need to invest in good timekeeping technology to track their time, including night shifts, to avoid off-the-clock work.

Employee Education and Empowerment

BPO firms must implement awareness programs. Organized workshops and orientations should be done to promote awareness among employees about their rights to work, calculation of pay, overtime hours, night differentials, and legal entitlements (Delapena, 2021). Likewise, unionization and collective bargaining must be emphasized to support the establishment of employee unions or employee councils to represent them collectively to compensate for the lack of equal representation between employees and firm administrators (Philstar, 2023). Lastly, legal support should be made available to work with organizations championing employee rights to assist employees during the filing of complaints or claims.

Corporate Social Responsibility and Ethical Practices

Organizations should embrace humane values and include fairness in compensation packages, timely payment of salaries, and respect for the rights of employees. Finally, feedback mechanisms for employees are also valuable, where regular forums or surveys enable management to discern any possible injustices that exist within the compensation packages. This should be complemented by well-structured reward packages that do not financially exploit employees.

Industry-wide Reforms

BPO organizations and the government can set minimum pay rates or be required to adhere to minimum pay guidelines. Additionally, organizations will be required to make annual reports showing their commitment to labor laws. This will be feasible by ensuring the technology is implemented in organizations, which involves software that monitors payroll management systems to reduce wage theft. This will ensure organizations do not engage in wage theft. The solution will be technology-based.

Employee Support and Wellbeing Programs

Conducting Financial Literacy Workshops is also highly necessary since educating employees on budgeting and managing their benefits not only helps them become aware of pay gaps but also ensures that they plan for their financial stability. Furthermore, mental health services also need to be required to tackle mental concerns with counseling sessions for dealing with work-related stress of pay gaps and wage theft.

Relevant Policies and Republic Acts for Wage Protection

·         Labor Code of the Philippines (Presidential Decree No. 442) – Governs minimum wage, overtime, night differential, and prohibits unauthorized deductions (International Labour Organization, 2022).

·         Republic Act 6727 – Wage Rationalization Act – Establishes regional minimum wages (LawPhil, 1989).

·         Republic Act No. 8188 – Imposes fines and double indemnity for non-compliance with wage laws (LawPhil, 1996).

·         Senate Bill No. 81 – Wage Theft Prevention Act – Proposed legislation criminalizing wage theft (Senate of the Philippines, 2023).

·         DOLE Enforcement – Conducts inspections and imposes penalties for non-compliance with wage laws (RespiCio, 2023c).

Conclusion:

Wage theft and salary inequality are issues that raise both ethical and practical concerns for the BPO industry in the Philippines. These issues affect the issues of financial and psychological stability and trust in the work setting. These issues can be dealt with by implementing policies and procedures for payments and following proper business practices while also implementing policies and procedures for employee rights and well-being.

In addition to that, having a positive attitude and mindset with a willingness to learn and adapt will enable an individual to be a part of a comfortable and healthy work setting and also a part of an ethical and sustainable business setting.

References:

Delapena, E. (2021). The invisible overtime: Investigating workplace abuse in Davao call centers. Medium. https://medium.com/@esldelapena/the-invisible-overtime-investigating-workplace-abuse-in-davao-call-centers-3b63acb75335

International Labour Organization. (2022). Labor Code of the Philippines (P.D. No. 442). https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/15242/PHL15242%202022.pdf

LaborLaw.ph. (2023). Night shift differential pay. https://laborlaw.ph/night-shift-differential-pay/ LaborLaw.ph. (2023). Overtime pay. https://laborlaw.ph/overtime-pay/

LawPhil. (1989). Republic Act No. 6727 – Wage Rationalization Act. https://lawphil.net/statutes/repacts/ra1989/ra_6727_1989.html

LawPhil. (1996). Republic Act No. 8188 – Double indemnity & penalties for wage violations. https://lawphil.net/statutes/repacts/ra1996/ra_8188_1996.html

Philstar. (2023, May 21). A bill seeking fair labor practices, job security for BPO workers was filed. https://www.philstar.com/headlines/2023/05/21/2267487/bill-seeking-fair-labor-practices-job-security-bpo-workers-filed/amp/

RespiCio. (2023a). Legality of mandatory overtime and sanctions in BPO companies in the Philippines.

https://www.respicio.ph/commentaries/legality-of-mandatory-overtime-and-sanctions-in-bpo-companies-in-the-philippines

RespiCio. (2023b). Addressing non-payment of statutory benefits and employee misclassification in the BPO industry. https://www.respicio.ph/commentaries/addressing-non-payment-of-statutory-benefits-and-employee-misclassification-in-the-bpo-industry

RespiCio. (2023c). Penalties for employers' failure to pay wages. https://www.respicio.ph/commentaries/penalties-for-employers-failure-to-pay-wages

Senate of the Philippines. (2023). Senate Bill No. 81 – Wage Theft Prevention Act. https://web.senate.gov.ph/lisdata/4655542559%21.pdf

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Is it okay to unplug? Work-life balance and setting boundaries taking work calls during planned vacation leave

 KEVIN ASLEY M. LAGMAY

DIVINE WORD COLLEGE OF LAOAG

 Abstract

 

The central theme of this article is to give insights of whether employees should disconnect from work-related communications when they are going on scheduled leave. This article also suggests work-life balance frameworks that will help individuals and organizations in prioritizing well-being together with productivity. The article will also cite laws and regulations that were adopted by the other nation, such as “The Right to Disconnect” by the French Government and “The Worker's Rest Law” proposed by Sen. Francis Tolentino to the Senate of the Philippines, which protects the rights of workers to personal time and promotes their welfare 

Keywords

Work-Life Balance, Vacation leave, boundaries, work calls, The Worker's Rest Law, The Right to Disconnect, Utilitarian Ethics, Deontological Ethics, Virtue Ethics, Resilience Framework, The Work-Life Harmony Framework, Employee Value Proposition Framework.

Introduction 

Due to the advances of technology, employees are always ready at the beck and call of the employer. The overreach of the control of power exercised by the employer is seen in the use of the phone and email. The distinction between working hours and personal hours has become more evident, especially in the era of the pandemic until now (Sen.Tolentino, 2022). The ethical question of whether employees should unplug from work-related communication during vacation leave reflects a deeper tension between organizational efficiency and respect for employee autonomy and well-being.

The Role of Utilitarian, Deontological, and Virtue Ethics on Work-Life Balance

Advances in digital communication technologies have blurred temporal boundaries, transforming constant responsiveness into an implicit workplace norm rather than an explicit requirement (Mazmanian, Orlikowski, & Yates, 2013). However, vacation leave is ethically significant, as it is intended to facilitate psychological recovery, preserve work–life balance, and prevent burnout. Research in organizational behavior indicates that uninterrupted periods of rest are essential for cognitive functioning, emotional regulation, and sustained productivity (Sonnentag & Fritz, 2007). From a utilitarian perspective, respecting vacation boundaries maximizes long-term collective benefit by maintaining a healthier, more engaged workforce, even if short-term responsiveness is occasionally sacrificed.

From a deontological standpoint, ethical concerns arise when organizations violate the moral duty of honoring formally approved leave. Once vacation leave is approved, employees have fulfilled their professional obligations within the agreed contractual framework, and employers are correspondingly obligated to respect that boundary (Kant, 1785/1993). Expecting availability during leave—whether explicitly or implicitly—constitutes a breach of fairness and undermines trust.

Moreover, virtue ethics emphasizes the character of organizations and leaders, highlighting values such as respect, moderation, and empathy. Ethical leadership requires modeling appropriate boundary-setting behavior, as managerial actions often shape organizational norms more powerfully than written policies (Brown & Treviño, 2006). Cultures that reward constant availability risk normalizing overwork and eroding moral responsibility toward employee well-being.

Silent Pressures Experienced by Junior Staff

The ethical complexity of unplugging is further intensified by organizational power asymmetries. Employees, particularly those in junior roles, may experience silent pressure to remain reachable due to fears of negative evaluations, reduced career prospects, or job insecurity, even in the absence of explicit instructions (Pfeffer, 2018).  Silent pressure when on leave involves fear of career impact (sign of incompetence), workload anxiety, and cultural norms that discourage taking true breaks. Such conditions undermine genuine autonomy, rendering “voluntary” availability ethically problematic. While certain roles may legitimately require limited availability during emergencies, ethical justification depends on transparent expectations, clearly defined exceptions, equitable distribution of on-call responsibilities, and appropriate compensation or recovery time.

Addressing Issues on Work-Life Balance

Work-life balance frameworks help individuals and organizations focus on prioritizing well-being together with productivity. Typical methods and strategies highlight boundaries, flexibility, and resilience to maintain harmony between work-related and personal demands.

The Resilience Framework

The Resilience Framework groups behaviors/ tasks/ responsibilities into energy and life-enhancing (e.g., decision-making power, recognition, meaningful work) or energy and life-depleting (e.g., excessive workload, conflict, toxic interactions). Although each individual faces their own challenges with respect to work-life balance, the bottom-line secret for better work-life balance is that it is important to give higher weight and influence to enhancers and lower weight and influence to the depleters (Ahuja, Chudoba, Kacmar, McKnight, & George, 2007).

The Work-life Harmony Framework

Work-life harmony identifies the interrelationship between professional and personal interests. Instead of balance, it offers a quality in the interactions between work and life. It means that responsibilities and activities are aligned in support of each other, generating a rhythm that flows with changing daily demands. For instance, a person may attend a family function in the day and work at night-that could be harmony because both spheres have been attended to in a manner that is natural and fulfilling (The School of Positive Psychology, 2025).

Effective harmony embraces flexible boundaries that protect what matters most-undisturbed family time or focused work hours-while allowing fluid transitions if priorities shift. Work-life harmony is not about erasing all boundaries between work and personal life; rather, it is about crafting boundaries that adapt to individual needs and align with the unique interplay of responsibilities and values (The School of Positive Psychology, 2025).

Employee Value Proposition (EVP)Framework

Employee value proposition refers to the unique value that an employer brings to the market of your employees in exchange for their skills, experience, and loyalty to your company. It encompasses aspects of remuneration packages, rewards programs, and career growth opportunities in terms of work-life balance, in addition to organizational values (Verlinden).

Laws and Regulations Promoting Work-Life Balance

Emerging global norms, including the “right to disconnect” regulations adopted in several jurisdictions, reflect growing recognition that unchecked connectivity is neither humane nor sustainable (Eurofound, 2020). Ultimately, respecting employees’ right to unplug during vacation leave affirms human dignity, reinforces ethical integrity, and supports sustainable organizational performance.

In the Philippines, A bill seeking to make it illegal for an employer to require employees to report for work purposes during employees’ rest hours has been filed in the Senate. Senator Francis Tolentino also submitted Senate Bill No. 2475, also known as the proposed Workers' Rest Law, whose aim is to safeguard the rest hours of workers and likewise impose penalties on erring employers.

If it becomes law, employers will be prohibited from:

●      requiring the employee to work.

●      requiring the employee to be on duty, to travel, or be at a prescribed place for work or work-related activities, such as attending seminars, meetings, team-building, and other similar activities.

●      contacting the employee for work and work-related purposes through phone, e-mail, message, and other means of communication, unless it is for the purpose of notifying the employee of the necessity of rendering emergency or urgent work as provided under Article 89 and Article 92 of the Labor Code of the Philippines. Employees are not be penalized for not opening or answering communications received during rest hours.

Conclusion

The expectation that employees remain accessible during vacation leave reflects a systemic tension between managerial control and the statutory right of workers to rest. In the Philippine context, this issue must be viewed not only as an ethical concern but also as a matter of compliance with labor standards designed to protect employee welfare. Vacation leave and rest periods are not discretionary privileges; they are mechanisms intended to safeguard workers’ physical, mental, and social well-being. When employers intrude upon these periods through work-related communications, they effectively undermine the purpose of approved leave and weaken the protections afforded under labor policy.

Ethically, such practices are difficult to justify. From a utilitarian standpoint, short-term operational convenience gained by contacting employees on leave is outweighed by the long-term consequences of fatigue, disengagement, and reduced productivity. From a deontological perspective, once leave has been formally approved, employers have a corresponding duty to respect that agreement. Implicit expectations of availability, particularly in hierarchical organizational settings, amount to unfair labor practice by exploiting power asymmetries and eroding the employee’s ability to exercise genuine choice. Virtue ethics further challenges managers to demonstrate prudence, respect, and accountability by upholding boundaries that promote humane working conditions.

Work–life balance frameworks reinforce these ethical obligations. The Resilience Framework clearly identifies uninterrupted rest as an energy-enhancing factor essential to sustained performance, while work intrusion during leave constitutes an energy-depleting practice that increases burnout risk. Similarly, the Work–Life Harmony Framework emphasizes that flexibility must operate within protective boundaries; harmony cannot exist when employees feel compelled to remain responsive during legally recognized rest periods. From an Employee Value Proposition perspective, respect for vacation leave strengthens employee trust, retention, and organizational credibility, whereas persistent intrusion signals disregard for worker welfare. 

The growing recognition of these concerns is evident in emerging legal standards. International “right to disconnect” regulations and the proposed Workers’ Rest Law in the Philippines affirm that constant connectivity is incompatible with decent work. Senate Bill No. 2475 explicitly prohibits employers from requiring employees to engage in work-related communication during rest hours, except in narrowly defined emergency situations under the Labor Code. Significantly, the bill also protects employees from penalties arising from non-responsiveness during rest periods, directly addressing the silent pressure that often compels workers to remain available despite formal leave approval.

Given these ethical and legal developments, managerial responsibility is clear. Employers must establish explicit policies defining rest hours, vacation leave boundaries, and emergency exceptions, ensuring these are consistent with labor regulations. Operational planning should minimize dependency on employees who are on leave through proper delegation, role coverage, and contingency systems. Managers and senior leaders must model compliance by refraining from unnecessary contact and by reinforcing a culture where rest is recognized as a legitimate and necessary component of productive work. Where certain positions require on-call availability, such arrangements must be transparent, justified, equitably assigned, and accompanied by appropriate compensation or compensatory rest.

Ultimately, respecting employees’ right to unplug during vacation leave is not merely a matter of organizational discretion but a reflection of ethical leadership and legal responsibility. Upholding these boundaries affirms human dignity, promotes fair labor practices, and contributes to sustainable organizational performance. In the Philippine labor landscape, ethical management and legal compliance must converge to ensure that technological connectivity does not come at the cost of workers’ fundamental right to rest.

 

References

 

Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616.

Eurofound. (2020). Right to disconnect in the 27 EU Member States. https://cooperante.uni.lodz.pl

Kant, I. (1993). Groundwork of the Metaphysics of Morals (J. Ellington, Trans.). Hackett. (Original work published 1785)

Gonzalez, G. (2020). Telework and the French “Right to Disconnect” https://blogs.loc.gov/law/2020/08/telework-and-the-french-right-to-disconnect/#:~:text=In%202016%2C%20the%20French%20government,latter' 's%20work%20and%20personal%20lives.

Marques, V., & Berry, G. (2021).Enhancing work-life balance using a resilience framework. Business and Society Review,126 (3), 263-281. https://doi.org/10.1111/basr.12237

Mazmanian, M., Orlikowski, W. J., & Yates, J. (2013). The autonomy paradox: The implications of mobile email devices for knowledge professionals. Organization Science, 24(5), 1337–1357. 

Pfeffer, J. (2018). Dying for a paycheck. Harper Business. 

Sonnentag, S., & Fritz, C. (2007). The recovery experience questionnaire: Development and validation. Journal of Occupational Health Psychology, 12(3), 204–221. 

Ramos, C. (2022). The Senate bill seeks to penalize employers who require employees to work during rest hours.  https://newsinfo.inquirer.net/1542634/senate-bill-penalizes-employers-requiring-employees-to-work-during-rest-hours

Rey, A. (2022). Tolentino files bill protecting workers’ rest hours.https://www.rappler.com/philippines/senator-francis-tolentino-files-bill-protecting-workers-rest-hours/

S. No. 2475, An Act promoting the welfare of employees by defining rest hours, providing penalties for any violation, and for other purposes. 5-6. http://legacy.senate.gov.ph/lisdata/3691033287!.pdf

The School of Positive Psychology (2025). Work-Life Harmony: A fresh look at work-life balance.https://www.positivepsych.edu.sg/work-life-harmony/

Verlinden, N. Employee Value Proposition (EVP): All You Need to Know in 2026. https://www.aihr.com/blog/employee-value-proposition-evp/

 

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