What are Some Challenges?

The above video is about ethical 

challenges when doing business in China. 

It can become very challenging and costly for companies to adapt to legal and ethical changes. Expectations are placed on companies from both government legislation, as well as from people in our society. Society has, in my opinion, demanded that businesses become more transparent and more accountable for their actions. If this accountability is not present businesses could potentially lose customers and suffer financially.

There may be a burden placed on administrative staff when trying to comply with new plans or practices. In some instances new staff may need to be hired to implement these changes. It is important when changing business practices or employment related laws to transfer this knowledge to all appropriate staff. A clear plan or strategy would make this job much less daunting. Strong management will be required to ensure that all legal and ethical responsibilities are being met.

When companies begin doing work in foreign countries there are unique challenges that need to be overcome. It is very important to take into considerations the countries legislative, social and economic differences. Values and practices that businesses are expected to follow differ greatly from country to country, so preparing for these in advance by having plans in place will reduce the businesses chance of failure within that region.

What is your opinion on the key challenges that a company will face when implementing new laws, or adjusting to changes in ethics? Please comment below, I would appreciate any feedback.
 

Key Workplace Legislation

There are many laws that impact Canadian businesses. Listed below are some key legislation, and a brief explanation of each:

• Employment Standards Act: Provides basic rules about working in Ontario. It summarizes such things as minimum wage, vacation and overtime
• Human Rights Code: Ensures equity in the workplace and promotes equal opportunity for all without regard to sex, race, religion, age, marital status, to name a few
• Health and Safety Act: Details the responsibility of employees and employers in regards to safety in the workplace. Helps maintain safe working environments
• Labour Relations Act: Establishes the rights of unions, employees and employers. This also explains the right to organize and mediation and arbitration procedures
• Workplace Safety Insurance Act: Designed to assist workers by paying benefits for lost time, injury and illness, and includes retraining injured employees
• Pay Equity Act: "Equal pay for work of equal value." This ensures that a woman is paid fairly, based on effort, responsibility and work performed
• Charter of Rights and Freedoms: Provides fundamental rights for every Canadian. It protects fundamental freedoms, democratic rights, Canada's multicultural heritage and the right to life, liberty and personal security, among others

Legal and Ethical Changes for Women

 

This man in this video explains some reasons 

why women may earn less than men

In the early 1900's women were seen as the weaker sex. Their role is primarily to educate and raise a family. At this time women are unable to vote in any federal or provincial elections. Women were unable to operate or own a business of their own, and although they were able to work they always had lower paying jobs than men. At this time women made up an estimated 13% of the Canadian workforce.

Fast forward 50 years and women are continuing their fight for equal rights. During this time most men were fighting in the war, which gave women the opportunity to begin working at factories. Women have managed to gain equal political rights, but are still not seen as equals socially and economically. During these times women are discriminated against in the workplace, and still earn significantly less than their male counterparts.

Listed below are a few laws that have helped women's rights:

• 1918: An Act to Confer Electoral Franchise Upon Women. Allows women to vote in federal elections
• 1948: Universal Declaration of Human Rights. 
• 1951: Equal pay legislation is formally introduced in Ontario
• 1953: Fair Employment Act is passed 
• 1956: Female Employees Equal Pay Act is passed by the federal government
• 1988: Employment Equity Act 

Today gender does not dictate earnings, rather we are paid based on skill, education and work achievements. Women are seen as contributing members of our society and economy. There are legal ramifications for those that do discriminate against women. These tremendous changes have allowed women more freedom of choice regarding their work and futures. You may think that with all these changes that our work is done, but that is not the case. Even in recent years the gender gap has been narrowing. Let`s see where the future takes us!

* The above information was gathered from http://www.chrc-ccdp.ca/en/index.asp. There is a lot of interesting facts on this website, so be sure to have a look. 

Social Responsibility Vs. Business Ethics

 

In my last post I mentioned that social responsibility is a component in business ethics. These two terms are often used in conjunction with one another but I would like to take this time to explain an inherent difference that they possess.

Ethics are concerned with morals, values and principles. They involve what we personally believe to be right or wrong. In business, ethics means knowing what is right and wrong in the workplace. Social responsibility is one aspect of business ethics. Social responsibility has increased and will continue to do so because of increased public awareness and public opinions on the role of business both in Canada and globally.  These public expectations have lead to huge changes in business in recent years and will continue to promote ethical business practices, and reduce the effect businesses have on our environment.

The big difference, in my opinion, is that ethics are an action (based on your ethical behaviours) and Social responsibility is a reaction, meaning it is in response to a push from the public. Social responsibility may involve a strategic plan for the business. The reason this can be seen as strategic is because it can change the perceptions of the public about the company/business, or may be used to create a greater competitive advantage over companies in similar fields, which could lead to longer customer relationships and greater profits.

There is an article linked below that explains the strategic components of Corporate Social Responsibility.

http://mystrategicplan.com

CIBC: How Do Banks Adapt to Changes?

There are always going to be challenges when adapting to legal and ethical responsibilities. One company that I believe has done a very good job of adapting is CIBC. Several banks that I researched had very comprehensive systems in place, but for the sake of keeping this short I will only reference CIBC.

CIBC releases an annual report that documents the changes that they have made, or are in the process of making, in regards to social responsibility (which is a component of business ethics.) They have also released a Public Accountability Statement, which details their "economic, environmental, social and governance commitments to our communities where we do business"

The report, itself, demonstrates how they are adapting to legal and ethical changes because these reports are required under Canada's Bank Act. Below I have listed several charters and initiatives that CIBC participates in and adheres to:

• Canada Green Building Council 
• Canadian Chamber of Commerce
• Carbon Disclosure Project
• Public Policy Reform
• Universal Declaration of Human Rights 

The website has has a great deal of information, so I would highly recommend that you read through it. Their corporate website is linked below.

https://www.cibc.com/ca/corporate-report/index.html

The Cost of Adaptation

Adapting to changing laws and regulations can be very costly for businesses. I read an article (link listed below) that explains a three year adaptation program in the Atlantic provinces, which works on reducing our impact on climate change. $8.2 million will be required to allow the appropriate changes to take effect, and include "community plans, engineering practices and water and resource decisions."

What are your thoughts on the high cost associated with implementing new laws and programs?
Do you think the benefits offset the high cost?
Please leave comments below.

http://thegreenpages.ca

Ethics and Legal Responsibility in the News

There have been many positive changes in business in the past few decades, but there is still work to be done. I have compiled some interesting articles that will demonstrate some challenges that we still face in modern business.

1. The first article I found was about corruption which is threatening Europe's economic recovery. People have been found to be diverting public money, with corrupt public officials that are cutting corners, and getting away with it because of a lack of accountability.

* http://www.globalethics.org/newsline/category/news/

2. Another interesting article I found is about bloggers at Forbes that work freelance and who's blogs aren't checked to verify that the information is credible. This self publishing landed Forbes in hot water in May, over a post that "prompted calls of sexism."

* http://www.imediaethics.org/index.php?option=com_news&task=detail&id=3072#3072

3. This article explains how female surgeons that become pregnant during residency are treated unfairly, and have to deal with negative bias. This negative bias may be deterring females from choosing that field of study.

* http://www.ama-assn.org/amednews/2012/03/05/prbf0305.htm