ETHICS MATTER: SAYING THE RIGHT THING THE RIGHT WAY. San Diego Society for Human Resource Management Law Day

Transcription

1 ETHICS MATTER: SAYING THE RIGHT THING THE RIGHT WAY San Diego Society for Human Resource Management Law Day Dan Eaton, Esq. Seltzer Caplan McMahon Vitek January 21, 2015

2 ABOUT THE PRESENTER Daniel E. Eaton is a partner in the Litigation Department of the San Diego law firm of Seltzer Caplan McMahon Vitek. He concentrates his practice on defending and advising California employers. Dan received his undergraduate degree from Georgetown University and his law degree from Harvard. In January 2007, Dan began teaching business ethics to upper division business undergraduate students at San Diego State University, adding a course in legal issues in human resources in January Dan regularly provides legal commentary to the San Diego print and broadcast media. His commentaries on legal and ethical matters are regularly published on CNBC.com. Dan has developed and presented numerous interactive seminars in legal ethics, business ethics, and employment law, including programs for the San Diego chapter of SHRM. From , Dan chaired the City of San Diego Ethics Advisory Board, the predecessor to the City of San Diego Ethics Commission. He also served ten years on the City of San Diego Civil Service Commission, serving as President in 1999 and 2003.

3 DELIVERING THE TERMINATION MESSAGE Hannah Humana is the Director of Human Resources at San Diego Real, a mediumsize real estate management firm that has been in business for five years. Charlene Chief, the co-founder of the company, told Hannah that Charlene has decided to get rid of Don Doolittle, a three-year salesman who is 47 years-old. In four of the last six months, Don has failed to meet his sales numbers. Three weeks ago, Don complained to Hannah that he felt that his new sales targets were so unrealistic that the only way he could meet them would be to engage in sales practices that he considered unethical, if not necessarily illegal. Hannah reported Don s concerns to Charlene, who dismissed those concerns as absurd and a reflection of the fact that Don was slowing down and didn t have the hustle that he used to have. When Don asks Hannah why he is being fired, which of the following statements should be included in Hannah s response? (You may vote for more than one.) Green: This has nothing to do with your recent complaint that you feel forced to engage in unethical sales practices. Red: The company feels your unique set of talents would be a better fit with a firm that has different needs and perhaps a different culture. Yellow: This is not the decision I would have made, but Charlene has decided we can no longer afford to keep you on. White: Your numbers are down and do not appear likely to meet the company s productivity expectations in the reasonable future. Black: I think you know why. No useful purpose would be served by getting into that.

4 ANNOUNCING AN IMPORTANT ORGANIZATIONAL CHANGE San Diego Real has decided for efficiency purposes to merge its marketing department and sales department. The marketing department currently has 10 professionals and the sales department has 25 professionals. After the reorganization, it is expected that the combined sales-marketing department will have 30 professionals, with the surviving professionals expected to perform both sales and marketing functions competently. Charlene has asked Hannah to give her a list of five most important questions from an ethics standpoint Charlene should consider and have answers to before this organizational change is announced. Which five of the following ten questions should be on the list that Hannah gives to Charlene? How should I advise our clients of this change? In what form or forum should I communicate this organizational change? Oneon-one meetings? Mass meetings? Letter? ? Social media? Should I use different forms of communication to inform different people within the same stakeholder group? What should I say to those professionals who are let go and those professionals who are retained about the process that led to them falling into each category? Who is likely to object to this organizational change and how do I get them to understand why it was necessary? If I were one of the stakeholders of the firm, what would I want the message about the organizational change to say? How much about the challenges the firm is facing do I want to disclose both internally and externally, especially if those challenges did not drive this particular organizational change? What should I say to the survivors if they ask how about how secure their status is at the company? How do we deal with internal and external stakeholders who have close relationships with those professionals who are being let go? How should I address false or misleading rumors spread by competitors about the reasons this organizational change was made? What would my highest ethical role model think of the way I am handling this organizational change?

5 SOMETHING HE SAID... Bob Boss, the CEO of San Diego biotech company Big Drug, was a featured speaker at a major conference celebrating women in California s biotech industry. Over 100 women attended. Toward the end of his on-stage interview, Mr. Boss was asked what advice he would give to women uncomfortable seeking a raise or promotion. He responded: It s not about asking for the raise, but knowing and having faith that the system will actually give you the right raises as you go along. And that, I think might be one of the additional superpowers that quite frankly women who don t ask for a raise have. Because that s good karma. It ll come back because somebody s going to know that s the kind of person that I want to trust. That s the kind of person that I really want to give more responsibility to. Mr. Boss just returned from the conference. He told you, the head of Big Drug s Human Resources Department, about his on-stage interview, including the quoted remark above. He also told you that he thinks he spotted an influential industry blogger in the audience, but he isn t sure. Mr. Boss did not notice anyone else who could be classified in any way as a member of the press. Mr. Boss tells you he needs no help on issues of corporate strategy and damage control. But he asks you a deeper question. Mr. Boss asks whether he is ethically required to say something to Big Drug s internal and external stakeholders or whether it would be ethically appropriate and prudent to remain silent, as he would prefer to do. Your response is: Green: Mr. Boss is ethically required to say something about his remarks at the conference to Big Drug s stakeholders. (Be prepared to explain why he is ethically compelled to do this, what kinds of things he is ethically compelled to say, to whom he is ethically compelled to communicate, and what communication vehicles he should use.) Red: Mr. Boss is ethically required or ethically permitted to say nothing. (Be prepared to explain why this is the most ethically sound approach under the circumstances.)