The Ethics of the Employer-Employee Relationship & Its Effect on Stakeholders

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  • 0:01 Employment Relationships
  • 0:36 Employer Responsibilities
  • 2:33 Employee Responsibilities
  • 3:13 Effect on Stakeholders
  • 4:25 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
The employer-employee relationship must be ethically sound. There are specific requirements that each side expects in order to respect the employment relationship and its effect on stakeholders.

Employment Relationships

Fun Town Water Park has had a bumpy relationship with their employees. They need some help in improving their employment relationship. An employment relationship is a legal link that is formed between an employee and employer when work is completed for monetary reimbursement. Both the employee and employer have responsibilities and duties towards each other to ensure that the bond is successful and ethically sound. We are going to examine Fun Town Water Park's employment situation in order to understand how the employer-employee relationship affects other stakeholders.

Employer Responsibilities

In the employer-employee relationships, the employer has specific responsibilities that lead to an ethical workplace and support of all of their stakeholders. Fun Town Water Park follows these key areas of employer responsibility.

1. Moral responsibilities

Employers have to protect the health of a company and make sound business decisions that will keep employees safe. Fun Town has moral responsibilities towards their employees. It is given that Fun Town pays their employees a good wage, offers health benefits, and excellent working conditions. The next step in an ethical employment relationship is to treat employees as important stakeholders.

2. Loyalty

Fun Town also is extremely loyal to their employees. They do not lay off employees unless it is absolutely necessary. Only one time in the history of Fun Town did a layoff occur, and the company provided generous salary packages worth six months of employment, continuing health benefits, and help getting a new position elsewhere. Loyalty shows that Fun Town values their employees, not just as a means for work to be completed, but as a long-term investment.

3. Openness

In order to have happy employee stakeholders, they should not feel intimidated by management. Instead, there should be openness between employers and employees. Fun Town allows all employees to be empowered to report problems and issues. For instance, just last week, an employee mentioned that the other employees were letting kids too small use the giant cyclone slide, leading to injuries. The company was able to quickly address this issue and saved themselves future lawsuits and customer injuries. This provides an ethical environment, and in turn, makes employees feel that their ideas and opinions are valuable.

Employee Responsibilities

In addition, there are specific responsibilities that employees have in order to maintain the employment relationship in an ethical manner. Employees must have good moral conduct. Fun Town demands employees conduct themselves with high business morals. For example, employees are expected not to steal from the company or sneak behind their manager's back and interview for another company outside of Fun Town. An employee should offer an employer the same trust and be careful of leaving a position for a better opportunity. In addition, Fun Town expects all employees to offer at least two-weeks' notice when leaving the company for another position.

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