08-04-20081 Chapter 4 Legal and Ethical Considerations 4.1Management Obligations 4.2 Social and professional responsibilities 4.3 Ethical considerations

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  • 08-04-20081 Chapter 4 Legal and Ethical Considerations 4.1Management Obligations 4.2 Social and professional responsibilities 4.3 Ethical considerations 4.4 Government regulations 4.5 Protecting ideas
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  • 08-04-20082 4.1 Management Obligations (Compulsions) Government industrial legislation has increased steadily since the start of the industrial revolution Understand the aims and reasons behind Government regulations, and be able to work with government agencies to satisfy these requirements Need to maintain a greater awareness of the environmental and social obligations placed on organizations by the community
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  • 08-04-20083 Management Obligations The requirements and norms (standards) of present and future society The manager at the same time needs to resolve the conflict which can exist between the needs of society, employees, shareholders, customers and suppliers It is important that employees are adequately trained and developed
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  • 08-04-20084 4.2 Social and Professional Responsibilities Three factors differentiate a professional group from society or club: society or club: 1.Whether members who are admitted to it are required to reach a specific academic level 2.Whether technical and ethical standards of performance have been specified for members 3.Whether a body exists to set and enforce these standards, to provide ongoing guidance to members and to administer membership
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  • 08-04-20085 Social and Professional Responsibilities Most professional bodies have rules of conduct and can expel members if these rules are broken Members who belong to management professional bodies also often belong to other professional association, such as in engineering, physics, accountancy, marketing and personnel Two areas of Special Concern: Environmental protection Responsibility to employees
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  • 08-04-20086 Social and Professional Responsibilities Environmental protection There are three main environmental considerations: 1.Pollution, usually created as a by-product in the day-to-day operation of the company, must be eliminated Processes used during manufacture do not create waste by-products which harm the environmentProcesses used during manufacture do not create waste by-products which harm the environment Products themselves do not create an environmental hazard when being usedProducts themselves do not create an environmental hazard when being used Environmental considerations must be paramount at every stage in a products life cycleEnvironmental considerations must be paramount at every stage in a products life cycle 2.The use of natural resources in the manufacture of the product, (particularly those that are non renewable) should be minimized 3.Health and safety issue must be considered, relating to the work environment and to the product
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  • 08-04-20087 Social and Professional Responsibilities Environmental protection Major steps in the introduction of an environmental policy 1.Enhance environmental awareness Management LeadershipManagement Leadership Employee involvementEmployee involvement Employee trainingEmployee training 2.Develop environmental strategies Clear communicated aimsClear communicated aims Develop methods/processesDevelop methods/processes Prioritize tasksPrioritize tasks 3.Conduct environmental Audits Set measuresSet measures Conduct audits/feedbackConduct audits/feedback Continuous improvement targetsContinuous improvement targets
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  • 08-04-20088 Social and Professional Responsibilities Responsibility to employees There is no job, which is for life Employees moving from long term employment relationship with their companies to short term contract There is no longer any loyalty, only a contract to work together for mutual good The relationship is no different from that between competitors who form an alliance for mutual benefit (alliance of non-Muslims against ) (alliance of non-Muslims against ) but companies have an obligation to provide the opportunity for employees to learn and develop Achievement must be rewarded, not seniority Employees may also move at their own will for better opportunities
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  • 08-04-20089 4.3 Ethical Considerations an organization is not accountable for the ethical behaviour of its employees ? Unethical business practices by employees reflect the values, attitudes and beliefs of an organizations operating culture the if it is legal it is ethical attitude ? Organizations should set their own internal values, which lead to laws of conduct, and these should go beyond minimum legal requirements
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  • 08-04-200810 Ethical Considerations Ensure that customers needs are kept in sharp focus Ethical conduct in advertising is often controlled by legislation and by voluntary standards boards Customers should be given adequate information during the marketing stage, to ensure that they are capable of making a correct decision when choosing a product which satisfies their needs
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  • 08-04-200811 4.4 Government Regulations which seek to effect the organizations conduct towards its employees which protect consumers environmental protection laws laws on the companys trading relationships
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  • 08-04-200812 Government Regulations Employees Regulations Employee-related regulations cover a wide spectrum Rules governing the employment of people Safety and conditions at work Conditions of employment The factories Act of 1833: Conditions of employees Prohibited the employment of children under nine years of age Hrs worked per day for children between 9 and 13 yrs to 9 hrs for children between 13 and 18 yrs to 12 hrs
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  • 08-04-200813 Government Regulations Employees Regulations The Factories Act of 1961: Minimum conditions which were to exist wherever people were employed in manual labour Act of 1963: law for office workers at Shops, Offices and Railway premises Occupational Safety and Health Act (OSHA) of 1970 in the USA: defined safe working conditions for employees
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  • 08-04-200814 Government Regulations Employees Regulations The Factories Act can be considered to affect FOUR areas 1.Health of workers factors such as cleanliness of premises; overcrowding; temperature and ventilation; and sanitary accommodationfactors such as cleanliness of premises; overcrowding; temperature and ventilation; and sanitary accommodation 2.Safety of Employees factors such as the procedure for recording and reporting accidents; use of protective guards around machineryfactors such as the procedure for recording and reporting accidents; use of protective guards around machinery 3.Welfare of workers factors such as provision of drinking water; availability of washing facilities; and availability of first aid kitsfactors such as provision of drinking water; availability of washing facilities; and availability of first aid kits 4.Employment of women and young persons factors such as hours workedfactors such as hours worked
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  • 08-04-200815 Government Regulations Employees Regulations Principles in its dealing with employees Company policies must be applied consistently and fairly to all concerned Mangers and supervisors are briefed on all aspects of company policy and adequately trained to deal with their subordinates All actions which the manger takes relating to employees personal performance must be documented with a copy to the concerned All employee grievances must be investigated promptly, fairly and thoroughly
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  • 08-04-200816 Government Regulations Employees Regulations Protecting the interests of minority groups, especially in USA Disabled persons Acts of 1944 and 1958 Rehabilitation of Offenders Act of 1974 Not to be discriminated on the basis of past convictions Race Relations Act of 1976 makes it illegal to discriminate against people on grounds of race Sex discrimination Acts of 1975 and 1986, the Equal pay Act of 1970 and the Equal Pay Regulations of 1983
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  • 08-04-200817 Government Regulations Employees Regulations The Data Protection Act of 1984 The contracts of employment Act of 1963: Enhanced by the employment protection (Consolidation) Act of 1978: Amended by the Employment Acts of 1980 and 1982. These also defined items such as sick leave, notice periods and unfair dismissal. Recorded series of steps, to handle employees, who need to be disciplined
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  • 08-04-200818 Government Regulations Consumer Protection Table 4.2 some UK legislations Act of 1983 was a landmark in the field of consumer protection Goods supplied must be as described, that it must be of merchantable quality and should be fit for its intended purpose Trade Descriptions Acts of 1968 and 1972 Consider Protection Act of 1982 Fair Trading Act of 1973 in order to look after consumer protection legislation, such as the Federal Fair Packaging and Labeling Act 1966 in the USA
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  • 08-04-200819 Government Regulations Consumer Protection Quality systems and controls should also be kept current to ensure that the product requirements are met throughout the operation. This could be based on ISO 9001 Model for quality assurance in design development, production, installation and servicing: UK as BS5750: Part 1: 1987 Documentation forms an important part of the process. These documents must be stored for a relatively long time, to meet product li