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MORALITY OF LABOR STRIKES

Strikes action (or simply strike) describes collective action undertaken by


groups of workers in the form of a refusal to perform work. This is tactic
used often by labor unions during collective bargaining with an employer.
Workers go on strikes for different reasons

• For higher compensation;


• To improve the workplace;
• For shorter working days ;
• To stop their wages from going down
• For more benefits; and
• Because they think their company has been unfair
What are the basic rights of employees?

An act to strengthen the constitutional right of workers to self-organization


and free collective bargaining and to penalize unfair labor practices.
Sec. 1. Articles 244 and 247 of presidential decree number four hundred forty-two,
as amended, otherwise known as the labor code of the Philippines, are hereby
further amended as follows:

• Art. 244. coverage and employees right to self- organization. All


persons employed in commercial, industrial and agricultural
enterprise and in religious, charitable, medical or educational
institutions whether operating for profit or not, shall have the right
to self organization and to form, join or assist labor organization
of their own choosing for purpose of collecting bargaining.
Ambulant, intermittent and itinerant workers, self employed
people, rural workers and those without any definite employers
may form labor organizations for the purpose of enhancing and
defending their interest and for their mutual aid and protection
Types of strikes
• A sit down strike (or sit-in) is a strike in which workers show up to work,
but refuse to work.
• A general strike is a strike affecting all areas of labor force across many
industries, typically throughout an entire country or a large section thereof.
• A sympathy strike (or secondary strike) is a strike initiated by workers
in one industry and supported by workers in a separate but related
industry.
• Unfair labor practice strike is an action taken by an employer (including
any agent or representative of an employer), that is believed to be inimical
to the interest of an employee organization.
• A jurisdiction strike refers to a concerted refusal to work undertaken by
a union to assert its member’s right to particular job assignments and to
protest the assignment of disputed work to members of another union or
to unorganized workers.
• A economic strike is based on a demand for better benefits than the
employer wants to provide.
• A wildcat strike is against the will of the leadership of the union, or
without a union.
• A slow down is a form of work stoppage in which employees deliberately
reduce their individual production.
• A recognition strike is a kind of strike forcing employers to recognize
and deal with them.
Who can join Organizations or workers Association
• All employees employed in commercial, industrial and agricultural
enterprises and in religious, charitable medical or educational institution
whether operating for profit or not;
• Government employees in the civil service;
• Supervisory personnel; and
• Aliens with valid working permits.
Who are Prohibited from Joining Legitimate Labor
Organization
• Managerial employees;
• Members of cooperatives; and
• Members of the Armed Forces of the Philippines, Philippine National
Police and Firemen.
Is there a right to strike?
The right to strike is integral to the process of wage bargaining in an
industrial. Everyone believes that a quality work rendered by an individual
in an industry deserves improvements in salaries and benefits.
10. Whistleblowing
Is the disclosure by an employee of confidential
information which relates some danger, fraud, or other
illegal or unethical conduct connected with the
workplace, be it of the employer or of his fellow
employees.
Whistleblower is someone in the organization who witnesses
behavior by members that is contrary to mission of the
organization.

If the employee just complains to someone inside the


company, that is not whistleblowing.
Four Elements that Encompass Whistleblowing
1. Disclosure of information (internal or external) must be made in good faith.
2. Disclosure must be made by current or former prospective employee.
3. Information must be linked with misconduct on the part of employer.
4. Evidence of the misconduct should exist as well as information regarding the
identity of the wrongdoer.
 Types of Whistleblowing
1. Internal whistleblowing
2. External whistleblowing
3. Current
4. Alumni
5. Open
6. Anonymous
 Whistleblowers experience each of the following
retaliation:
1. Lost their job or were force to retire.
2. Received negative job performance evaluation.
3. Had work more closely monitored by supervisors.
4. Were criticized or avoided by coworkers.
5. Were blacklisted from getting another job.
6. Considered traitor to their organization.
Is Whistleblowing Morally Permissible
- It is morally permissible if it meets the following conditions:
1. The company must engaged in illegal or immoral practice or about to release
product which will do serious harm to individuals.
2. The employee should report his complaint to his immediate superior.
3. If no appropriate action is taken, the employee should take the matter up the
managerial line before he is obliged to go public.
4. The employee must have a good reason to believe that by going public, he will
be able to bring about necessary changes.
5. It is done from appropriate moral motive-as provided in the definition of
whistleblowing.
6. The whistleblower, except in special circumstances has exhausted all internal
channels for dissent before going public.
7. The whistleblower, has compelling evidence that the inappropriate actions have
been ordered or have occurred.
8. The whistleblower has acted after careful analysis of the danger: How serious is
the moral violation? How immediate is the problem?
9. Can the whistleblower point to a specific misconduct?
10. The whistleblowing has some chance of success.
 Example:
 JPMorgan Chase
Another financial giant that became entangled in a scandal during the
financial crisis, JPMorgan Chase was found to be committing fraud through
the now-infamous ‘robo-signing‘ case. Whistleblower Linda Almonte, who
was a mid-level manager at the company, brought the company’s illegal
credit card collection tactics to the limelight when she filed a complaint with
the SEC. The bank was selling off debt to collections agencies without
verifying important information, including how much customers actually
owed. It was found that 20 percent of customers’ files had errors.

For Almonte, the decision she made led to a rough life for her and her family,
as she was unable to find secure employment after the dust settled. She told
the Huffington Post that her decision was “essentially suicide.” Despite her
efforts, ‘robo-signing’ hasn’t been completely done-away with in the financial
industry, although JPMorgan Chase probably learned a valuable lesson.
 5. GlaxoSmithKline
 One whistleblower who ended up with a pretty significant payday
once the dust settled is Cheryl Eckard. Eckard brought to light
contamination issues at pharmaceutical manufacturing operations
run by GlaxoSmithKline, an international drug giant. Eckard was
awarded $96 million following an eight-year court battle, which
brought civil and criminal charges against GlaxoSmithKline. The
company agreed to pay the U.S. government a fine of $750 million
to settle.
 The case revolved around a manufacturing plant in Puerto Rico,
where Eckard found that the company was producing drugs in a
non-sterile environment. GlaxoSmithKline was using water that had
been contaminated with microorganisms, and drugs were being
produced with inaccurate dose counts. Eckard went to the FDA after
attempts to take her concerns to the company’s leadership went
ignored. Although the ordeal with Eckard is behind them, the
company now faces new problems with alleged bribery of doctors in
Europe, being brought to light by another whistleblower.
 7. Pfizer
 Another international drug manufacturer, Pfizer came under fire in
2009 after John Kopchinski exposed the company for illegally marketing
off-label medications. The whole ordeal resulted in Pfizer paying a $2.3
billion fine, what was the largest single healthcare fraud settlement in
history. Pfizer had faced civil and criminal charges for selling Bextra,
Geodon, Zyvox, and Lyrica, all of which the company advertised for uses
other than what they were prescribed for.
 After six years of court battles, Kopchinksi walked away with $51.5
million from his whistleblower lawsuit in 2009. After bringing attention to
Pfizer’s misconduct, he was fired in 2003, two years before the company
actually took the questionable products off of shelves. After the settlement
was handed down and Pfizer paid its fines, the company’s senior vice
president Amy Schulman released a statement that showcased the
company’s remorse.
 “We regret certain actions taken in the past, but are proud of the action
we’ve taken to strengthen our internal controls and pioneer new
procedures,” she said.
SOCIAL RESPONSIBILITY & GOOD
GOVERNANCE
MULTI-LEVEL MARKETING
 A system of selling in which one signs up other people to assist him,
and they, in turn, recruit others to help them . It is a system of
selling through many levels of distributors.
PYRAMIDING
 Participants attempt to make money solely by recruiting new
participants into the program
MLM PYRAMIDING
• Legal  Illegal
• Product Sales  Recruiting
• Training Programs  NO Training Programs
• Consumable, reasonably priced quality  Few retails sales and high cost, slower
product moving products.
• Serves legitimate economic function  No legitimate economic function
• Sponsoring; Recruitment is operational  Benefits from recruitments
• Product consumption  Recruitment
• Enormous effort to sell product  Less Effort
• Product sold in Consuming public  Consume internally in the organization
• Bonus are based on sales to final users  Bonus entitlement are based on the
who are not member of the schme. goods absorb by members.
DIRECT SELLING ASSOCIATION OF THE PHILIPPINES
(DSAP)
 Are there legitimate products
 Is there an intent to sell product?

 Do the products have fair market value?

 Is there is a compelling reason to buy the products being offered?

 Is there is return product policy?

 Will you received commission on the joining fees of your prospective?

 Is there a correlation between recruiting and distributors


commission?
 If recruitment is to be stopped today, will the participants still make
money?
 Market Saturation: An inherent Problem in Pyramiding
- Pyramid’s design can saturate the market without no one noticing it.
 Moral Issues in Pyramiding

Too much materialism and Greed

They con the public, making them believe that they are legitimate MLM.

Intentions are bad.

 Legal Issues in Pyramiding

Art 53 of RA 7394( the consumers act of the Philippines)

RA 3883 or Business Name Law


Unfair Competition

 Kinds of Competition
 Monopoly

 Oligopoly

 Perfect Competition

 Difference between war and competition


 Difference between Fair and unfair Competition
INTELLECTUAL PROPERTY CODE OF THE
PHILIPPINES (R.A 8293)
 Aims to provide an intellectual property and industrial
property system which will enhance the development of
domestic and creative activity.
 Use trademarks, service marks and trade names.
Following are deemed guilty of unfair Competition

 Any person who is selling his goods and gives the general appearance of goods
of another.

 Any person who, by any artifice or device, induces the false belief

 Any person who shall make false statement.


MONEY LAUNDERING
DEFINITION

Money obtained from certain crimes that is "dirty" and needs to


be "cleaned" to appear to have been derived from legal
activities, so that banks and other financial institutions will
deal with it without suspicion.
HISTORY
-The concept of money laundering regulations goes back to ancient
times and is intertwined with the development of money and banking.

-The term "money laundering" is said to have originated from Mafia in


the United States.
AL CAPONE

-was an American, mobster, crime boss, and


businessman who earned money from illegal
activities such as gambling, extortion and
bootlegging.
He needed a way to legitimately explain these
funds, and came up with the brilliant idea of
purchasing laundromats. Laundromats were a
cash-only business.
METHODS
PLACEMENT
- is where illegally obtained money is converted into assets that
seem legitimate.

• Depositing funds into a bank account.


LAYERING
- Involves using multiple transactions to further distance of the funds
from their origin.
• Transfers through multiple accounts.
• Purchasing of tradable property.
• Casinos
INTEGRATION
- Allows the clean money to re-enter the mainstream economy and to
benefit the original criminal.

• Invest in legal businesses.


• Starting a bogus charity.
PREVENTION
- ENTRY OF CASH INTO THE FINANCIAL SYSTEM

-TRANSFERS TO AND FROM THE FINANCIAL SYSTEM

-CROSS BORDER FLOW OF CASH


THE 40 RECOMMENDATIONS
-The 40 Recommendations provide a complete set of counter-measures
against money laundering (ML)covering the criminal justice system and
law enforcement, the financial system and its regulation, and
international co-operation. They have been recognized, endorsed, or
adopted by many international bodies.
CONFLICT OF
INTEREST
Occurs when a person acts in a way
that is to his/her advantage at the
expense of employing organization.

Definition
Common Factors that create
Conflict of Interest

 Commercial Bribe

 Gifts
Commercial Extortion
When an employee demands
consideration from a person outside the
firm as a condition to intervene in favor of
that person or firm when transaction
occurs.
Things to Consider in Evaluating
whether Gifts are Unethical

 Value of the Gift


 Purpose
 Circumstances surrounding the actual
presentation
 Accepted Business Practice in the region
 Company Policy
Types of Conflict of Interest
• Self-dealing
• Accepting benefits
• Influence peddling
• Using your employer’s property for private
advantage
• Outside employment or moonlighting
• Post-employment
Key Elements

– There is a private or personal interest


– Interferes with professional responsibilities
15. Insider Trading

• WHAT IS INSIDER TRADING?


–Refers to the significant facts that have not yet made
public are likely to affect stock prices; trading of a public
company's stock or other securities by individuals with
access to nonpublic information about the company.
–It is being prohibited by the rules and regulation of SEC.
1. The issuer
2. director or officer
3. those who has access to material information
4. person who learns such information.
15. Insider Trading

Ethical Issues Related to Insider Trading


• It violates fiduciary relationship between insiders
and outside clients.
• It promotes greed and persona' gain at the expense
of others.
• It renders the transaction between two contracting
parties as unfair.
16. Tax Evasion and Tax Avoidance

• Lifeblood doctrine- taxation is the system by whivh


the government raises funds with which to finance
governance, and to promote the general welfare of
its citizen.
16. Tax Evasion and Tax Avoidance
• Tax Evasion
–illegal.
–intentional negligence of the obligation to pay taxes to the
government.
–“tax dodging”
• It is considered negligence because it is a form of
abandonment of economic duties which is mandated if
a corporate citizen.
1. the intention to cheat
2. knowledge that tax evasion is wrong
3. by fradulent means.
16. Tax Evasion and Tax Avoidance

• Tax Avoidance-when taxpayers exploitly legally permissible


alternative methods of assessing taxable property or income in
order to avoid or reduce tax liability.
– legal
– “tax minimization” or “tac planning”
1. interest expense
2. taxes
3. bad debts
4. depreciation and depletion
5. charity
6. pension and trust
7. RND
8. personal and additional exemptions

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