Creating Workplace Environments that Reflect Human Rights Values
Prepared By:
Michael Bates and Dr. David Este
Prepared by the Cultural Diversity Institute as a joint educational initiative of the federal, provincial and territorial human rights commissions May 2000
Table of Contents
- Executive Summary
- Introduction
- Section I Definitions
- Section II Some Theory on Workplace Rights
- Section III Human Rights and Corporate Productivity
- Section IV Transitioning Toward a Human Rights Culture
- Conclusion
- Bibliography
- Appendices
We would like to thank the following individuals for their contribution to the paper:
Susan Coombes, Alberta Community Development; Pat Danforth, Saskatchewan Human Rights Commission; Mel Garret, Molson's Canada; Susan Klinkhamer, Multiculturalism BC; Gordon Laing, Crossley Carpets NS; Lillian Nakamura Maguire, Cultural Diversity Institute; Lori Maclean, Nova Scotia Human Rights Commission; Lea Meadows, City of Calgary; Bill Parker, City of Regina; Darren Ruck, Scotia Bank; Ted Shaw, Ontario Human Rights Commission; Karen Taylor, New Brunswick Human Rights Commission.
The federal, provincial and territorial human rights commissions undertook this research as a joint educational initiative. The commissions wanted to collect information that could be used for their human rights education, promotion and prevention initiatives. The Cultural Diversity Institute at the University of Calgary was contracted to explore whether respecting human rights makes good business sense. Funding for this project was provided by the Human Rights, Citizenship and Multiculturalism Education Fund in Alberta
The views expressed in this report are not necessarily those supported by any of the human rights commissions
Parts of this publication may be reproduced with acknowledgement.
Executive SummaryThis paper has been written to assist human rights educators and advocates make the business case for human rights. The theory section helps to expand the terrain of human rights education beyond its current legal focus. The section on productivity provides evidence that business can increase revenue and decrease cost by adopting more equitable practices. The productivity argument provides a new tool for educators currently relying on the legal approach to human rights. The final section explores how an organization can transition towards a human rights culture. Key factors are summarized for educators working on the front lines of corporate change.
The research suggests that for a business to thrive in the new millennium, an emphasis on diversity and equity is essential. Human rights training and awareness in the workplace can enhance productivity and therefore should be a high priority of senior management and an integral component of corporate planning. While the linkages between human rights and corporate productivity require further exploration, there is reason, and evidence, to indicate that such linkages are valid.
Key points:
- A number of trends including greater participation of women and minorities in the workplace, are compelling corporations to focus on issues of ethics and human rights. Despite a large number of corporations experiencing conflict in the workplace, very few are devoting resources to human rights and ethics training.
- There are many ways to define human rights including moral, legal and bureaucratic approaches. Rights and responsibilities go hand in hand as a reciprocal relationship between employer and employee. We must move beyond a focus on the legal aspects of rights if change is to occur.
- 75% of Fortune 500 companies have programs that promote diversity. If workplace discrimination were eliminated incomes levels for all employees, not simply minorities, may rise (Bergmann). A study of AT&T found that costs could be reduced by 4% by eliminating gender discrimination alone (Ashenfelter & Pencave). Research also indicates that employee turnover (Poole: 1997), absenteeism (Drago and Wooden) and employee theft (Traub) are either directly or indirectly related to issues of diversity and human rights.
- Several models for implementing a more equitable workplace exist. Elements common to most of the models include executive leadership, linkages to the corporate business plan, administrative support, participation of all employees and ongoing measurement. The factors that motivate corporations to change must be considered. Equity initiatives have to move beyond the human resources department, becoming an integral part of all corporate activity, if they are to have a significant impact.
Human rights do not appear on the balance sheet of most corporations. Or do they? The evidence would seem to indicate that a workplace environment respectful of human rights can make a significant difference to the bottom line. For human rights educators wishing to make a strong 'business case' for human rights education and awareness, this type of evidence is invaluable. A number of demographic and business trends provide the foundation for this new business case. New immigration trends, increased professionalization, increased participation of women and minorities, corporate interdependence, enhanced worker mobility, flatter, more flexible corporate structures, and changing societal institutions and attitudes are some of the factors necessitating corporate leaders to embrace a more equitable orientation in every facet of operations1. Despite these trends, many business leaders remain unconvinced of the benefits and wary of the costs of such an approach. In a recent (2000) survey of Canadian corporations and public sector organizations by the consulting firm KPMG, less than half of all companies had any ethics training and of those that did about 70% invested less than four hours per year for each employee2. While ethics training is not synonymous with human rights training, there is a significant overlap. For example, the KPMG survey found that 29.2% of participating organizations had experienced an incident involving a lawsuit, media coverage or other significant problem with discrimination and 27.3% with sexual harassment. In short, organizations are paying the costs of not addressing human rights issues properly, and yet are resistant to fully embracing a human rights culture in the workplace and all of the benefits associated with it.
In addition to increased worker productivity, other corporate benefits that may be associated with human rights awareness and a positive work environment include reductions in employee turnover, absenteeism, and employee theft. It is important to note that very little research exists which quantifies the benefits of human rights and equity in the workplace. Linkages between human rights/equity and employee turnover or employee theft require further exploration, but there is reason, and evidence, to indicate that such linkages are valid. Ideally, human rights training and awareness should be an integral component of employee training, and a key factor in corporate management planning.
This paper begins by defining some key and often ambiguous terms, then examines some current theories on human rights in the workplace. Next, linkages between human rights training and various indicators of business productivity are considered. The final section of the paper examines how corporations can make the transition to a workplace where human rights are promoted and respected.
Some recent Canadian corporate experiences with human rights education and promotion are included as part of this study. Five interviews were conducted with senior staff of Canadian organizations identified as leaders in creating a human rights culture in the workplace. Three were private corporations and two were municipal government administrations. The purpose of the interviews was to gain insight into the perceived benefits of human rights education and awareness, to determine how the programs were initiated and how skepticism about such initiatives was overcome. Two of the organizations were from Atlantic Canada, two from Saskatchewan and one from Alberta. Quotes and observations from the interviews are found in various parts of the paper.
I DEFINITIONSIn Brief: There are many ways to define human rights including moral, legal and bureaucratic approaches. Rights and responsibilities exist in a reciprocal relationship between employer and employee. We must move beyond a focus on the legal definition if change is to occur.
Human rights can be defined in many ways. Common approaches identified by Osigweh include moral, legal, and bureaucratic.3 Moral arguments are based in the belief that each person has self evident, inalienable rights derived from the unique qualities of being human. More commonly it is the legal concept of human rights that we experience in the media and in our day to day lives. Such rights are "explicitly enunciated in laws, constitutions, rules and regulations, or are derived by giving specific judicial interpretations to any of these instruments of rational legal authority."4 In Canada, these rights are defined in the Universal Declaration of Human Rights, the Canadian Charter of Rights and Freedoms, the Canadian Human Rights Act and provincial human rights legislation; to name a few sources. Bureaucratic rights tend to be rooted in "rule derived mechanisms to minimize unproductive adversarial conflicts or disputes, while establishing and protecting the rights of various parties in the workplace."5 These are the policies and procedures we work under, often found in policy manuals.
Human rights are often discussed and debated without any reference to responsibility, but in reality every human right has a corresponding human responsibility. No right exists without a corresponding responsibility. In fact, responsibility would seem to precede rights. Osigweh puts it this way:
...there is a reciprocal nature to all employee and employer relationships. Hence, each workplace right has an obligatory and a reciprocal character... The obligatory nature of rights simply says that every right is in some way defined by, or at least, correlated with a duty or responsibility of another person or party.6
The terms "human rights culture" and "workplace diversity" are also used throughout the paper. Human rights culture refers to a workplace environment where human rights and responsibilities are promoted and respected and where employees are free of concerns related to basic equity issues. Workplace diversity is also a broad concept, related to the mix of personnel within an organization. The increasing diversity in the workplace reflects changes in demographics such as non white and non Christian source countries for immigration and changes in values as for example, more women seek careers in business.
If we are to achieve a human rights culture in the workplace and reap the benefits of workplace diversity, a strictly legal approach to human rights education will not be adequate. The next section of the paper explores the theory of workplace rights, illustrating many different approaches.
II SOME THEORY ON WORKPLACE RIGHTSIn Brief: A helpful framework is examined which highlights all aspects of human rights in the workplace. The framework includes the legal approach, but moves beyond to incorporate four others. The framework hints at the opportunity for new techniques and new emphasis in human rights education and human rights advocacy in the workplace.
Chimezie Osigweh crafted an employee responsibilities and rights framework for understanding rights issues in the workplace. The framework examines human rights across all periods of the employer-employee relationship and incorporates a number of different approaches. His framework is examined below and then extended to consider the business benefits that human rights can provide. Some of the implications for human rights education are also explored.
There are four time periods or 'focus dimensions' in Osigweh's framework: organizational pre-entry, job incumbency, continued employment and post employment.7 Organizational pre-entry rights/responsibilities would include those that are present prior to an employer and employee entering into an agreement for employment. Specifically this would address issues of hiring, advertising, interviewing and general accessibility. Job incumbency refers to rights and responsibilities in effect after an applicant has accepted employment with a company and would include everything from workplace safety to harassment to issues of general dignity. Continued employment issues relate to rights/responsibilities to retain employment. These become particularly important during times of downsizing, during restructuring, at times when particular positions are phased out and as retirement approaches. Post employment rights and responsibilities are those that continue beyond the time of formal employment and may include issues of pension, medical coverage and mentorship of new employees.
The second element of Osigweh's framework identifies different approaches that can be applied to each of the four periods. The different approaches provide "strategies or perspectives for accessing, delineating, and assuring workplace rights and responsibilities."8 The five approaches Osigweh identified were philosophical, legal, collective activity, human resource rights and management education strategies. The philosophical approach builds upon "the moral and ethical dimensions of business"9 but lacks practical content. The legal approach is derived from legal rights and responsibilities and is the most common approach used today but according to Osigweh:
.legal strategies are probably the most inadvertently overused and abused, in view of the wide spread prevalence of the modern bureaucratic organization... These strategies are adversarial in nature. By assuming the inevitability of conflict between employer and employee, these strategies highlight conflict in the workplace. Thus the legal approach inadvertently nurtures that which it was originated to undermine - the adversarial nature of workplace interrelationships.10
The collective activity approach emphasizes achieving employee rights through the power of group bargaining found in unions or other similar collective organizations. For Osigweh, it is also adversarial, fostering an 'us and them' mindset. The collective approach reduces workplace concerns to group issues, ignoring individual considerations. The human resource rights approach emphasizes the use of human resource management strategies to ensure that rights and responsibilities are honoured:
This approach focuses on the rights-responsibilities content and consequences of: motivation, communication, rewards and behavioral and other human resources and industrial/employee relations systems .the (human resource rights) approach de-emphasizes adversarial interrelationships while nurturing the spirit of practical and pragmatic problem solving in the workplace.
Finally, the management education approach suggests that human rights issues in each of the four periods can be addressed in professional training schools or through the process of management education. The approach calls for the "reformation of management training programs, based on a moral design that rises above prevailing management orthodoxy."11
Osigweh's framework is essential if we are to appreciate the full breadth of the terrain over which workplace rights and responsibilities dialog takes place. It lifts the debate on workplace rights beyond the traditional, narrow focus of on the job rights protected through human rights legislation or collective action, encouraging a much broader, more dynamic discussion of the complexities of workplace rights and responsibilities. Table 2.0 summarizes Osigweh's theory. The table illustrates that for each of the four areas, several different approaches to human rights are possible. The numbers assigned to each cell in the matrix are for reference purpose only. Unfortunately, the 'terrain' of the framework is largely unexplored. Outside of the legal and collective activity approaches, very little research exists for most of the cells in the matrix, revealing just how far we have to go in order to achieve the kinds of workplaces envisioned by the responsibilities and rights paradigm.
Despite his framework being ten years old, the legal approach to human rights education continues to dominate today. Untapped opportunity for human rights education would seem to lie in the philosophical, human resource rights and management education approaches. Educators would be wise to target management training programs within larger corporations. The human rights training itself should focus more on internal systems, such as communication, hiring, promotion and performance evaluation which define the organization, rather than legal requirements. In short, the goal should be to entrench a new understanding and appreciation of human rights and diversity throughout the entire organization and in turn to promote more equitable practices within the corporate systems mentioned above. An annual half day of diversity training per employee is simply inadequate.
Pre-entry issues would seem to provide the logical starting point for such education initiatives; because without equitable and fair hiring practices, the benefits of a diverse workplace can never be realized. By adjusting both the target audience (senior management) and the content of the education (corporate advantage), educators will have a much better opportunity to make meaningful change, than by simply explaining the existing legal requirements which must be followed. This would suggest that cells 4.1 and 5.1 in the matrix above would hold immediate opportunity. This is not to suggest the legal information isn't important; but for systemic change to occur, a new focus is required. Corporations concerned about legal issues (cells 2.1 - 2.4) such as sexual harassment, provide opportunities for educators to raise awareness about other aspects of human rights in the workplace while still meeting immediate concerns over a particular issue.
Unfortunately, Osigweh's framework does not detail the specific benefits business can reap from embracing a responsibilities and rights paradigm. To address this gap, the next section looks at some of the ways in which a human rights culture can affect corporate productivity.
III HUMAN RIGHTS AND CORPORATE PRODUCTIVITYIn Brief: To move beyond the legal approach to human rights, educators need to place more focus on the benefits that can be gained from a human rights culture. This section of the paper argues that an emphasis on human rights and equity in the workplace can increase revenue and decrease cost. If workplace discrimination were eliminated incomes levels for all employees, not simply minorities, would rise (Bergmann). A study of AT&T found that costs could be reduced by 4% by eliminating gender discrimination alone (Ashenfelter & Pencavel). Research also indicates that employee turnover (Poole: 1997), absenteeism (Drago and Wooden) and employee theft (Traub) are either directly or indirectly related to issues of diversity and a human rights culture in the workplace.
Can a focus on human rights and diversity increase a companies productivity and profits? More importantly, how can we measure those increases? In order for a human rights education initiative to provide a fiscal return, it has to either increase revenue or reduce costs.
The case for higher revenues is particularly difficult to document because revenue fluctuations can result from a wide variety of micro and macro level influences on the corporation. Nonetheless it is of note that 75% of Fortune 500 companies had programs promoting diversity, versus 36% in a random sample; and 60% of those with programs, had staff exclusively dedicated to diversity.12 By definition Fortune 500 companies are highly productive, and their association with diversity initiatives is noteworthy. One of the ways that the promotion of human rights and workplace diversity increases revenue is by establishing new markets. For example, by establishing closer links to Aboriginal communities the Canadian Imperial Bank of Commerce both lowered social barriers and increased revenue.13 Productivity can also be enhanced as a result of increased customer loyalty; a topic turned to later in the paper.
The case for reducing costs is somewhat easier to make, and this is reflected in the volume of studies in this area. Some early research in the study of costs associated with workplace inequity include Bergmann's (1971) and Agarwal's (1982) examination of macro economic costs and Gary Becker's (1971), Ashenfelter and Pencavel's (1976) and Dunnette and Motowidlo's (1982) micro or firm level analysis. In describing the macro level costs Agarwal noted:
.under-utilization of the minority labor force can cause a serious loss of potential national output. It can also prevent the labor market from efficiently correcting demand and supply imbalances.this in turn can cause higher rates of inflation.(and) can also produce a higher incidence of poverty among minority workers, necessitating higher social assistance costs.14
Bergmann estimated that national income in the United States could increase as much as 1.4% if discrimination (occupational desegregation) against black employees was eliminated. One point four percent many not appear to be a large figure, but that reflects the national average; the income gains for black employees could range from 35-60%! The important contribution of the Bergmann study is the observation that every employee can benefit from an equitable workplace.
Turning to the micro level, Ashenfelter and Pencavel's 1976 study of AT&T estimated that by eliminating discrimination based on gender alone, the company could realize cost savings of nearly 4%. In their study on the costs of occupational sex discrimination Dunnette and Motowidlo (1982) estimated that over a ten year period, the net loss to the organization (unnamed) due to excluding women was $7,200 for each person hired.
Twenty years later it appears very few firms have found a way to properly measure the fiscal impact of workplace equity. A recent study conducted by West Coast Research for the Multiculturalism and Immigration Ministry of British Columbia found that less than one-third of organizations with a diversity program measured the profitability of the program, and most of those that did apparently relied on simple global measures such as total sales.15 When it comes to measuring corporate commitment to diversity, several tools do currently exist. Many of these simply categorize corporations on a scale, based on their current equity and diversity practices. For example, Felice Schwartz has developed a six point scale for rating organizations in terms of their treatment of female employees.16 Trevor Wilson extended the Schwartz framework in creating an 'equity continuum' which rated employers according to their practices and underlying motivations pertaining to equitable employment.17 The Schwartz and Wilson models are very helpful, but they do not provide empirical data related to the productivity/profit benefits corporations gain from creating a diverse and equitable workplace.
Despite the work of Ashenfelter, Pencavel, Dunnette and Motowidlo, no evidence has yet been offered here that links human rights or diversity initiatives with cost savings or revenue increases. Trevor Wilson has made some attempt to bridge this gap. In arguing the business case for equity, he describes an employee/customer satisfaction chain that begins with equitable employment systems and ends with higher profit.18 Equity in the workplace raises employee satisfaction and employee commitment, which in turn are associated with less turnover and absenteeism. Continuing the chain of reasoning, motivated and loyal employees enhance customer value, increase customer satisfaction, customer loyalty and ultimately corporate revenues and profits. This lengthy chain of reasoning requires some empirical support, which Wilson does not adequately provide. The next section helps to fill this gap.
If a human rights and responsibilities paradigm is taking hold at a firm, one of the effects should be a more harmonious workplace atmosphere where all employees are treated with dignity and, in time, develop a sense of belonging to the workgroup and loyalty to the firm. This should in turn reduce turnover, absenteeism and perhaps employee theft. This chain of assumptions, like Wilson's, is rather lengthy, which raises very legitimate doubts as to its validity, but some of these linkages have been studied and the results would suggest that real opportunities exist for increasing corporate productivity and ultimately, profitability.
A recent study by Merck & Company, Hewlett Packard, KPMG and Fortune concludes that the costs associated with the turnover of one employee can run as high as 1.5 times the employee's salary.19 These costs include separation costs, recruiting, training and loss of productivity during the transition. But does a human rights culture reduce turnover? According to Poole (1997) an initiative of Deloitte and Touche, a large accounting, tax and consulting firm, to address gender equity resulted in a 3.5% decrease in the turnover of managers and an 8.6% reduction in the loss of senior managers.
A thorough cross national study (including Canada) on the determinants of labour absence by Drago and Wooden (1992) found that workgroup norms and job satisfaction played key roles:
.workgroup cohesion is a precondition for the establishment of workgroup norms, but .only where human relations are good will those norms be conducive to low rates of absence; otherwise the segmentation argument applies and the employee norms will generally be established to improve worker welfare at the expense of the firm.20
The 'segmentation' mentioned above occurs when workers form cohesive groups, but because of low job satisfaction, remain loyal only to each other (horizontal loyalty), not to the firm (vertical loyalty). Employee loyalty to the firm is critical to productivity and according to Drago and Wooden is reflected in absenteeism rates. Like Osigweh, Drago and Wooden conclude that
.human relations issues matter. Specifically, the practical importance to a firm of its managerial strategies and policies affecting job satisfaction seems apparent.21
In another study, Poole (1997) found that the Royal Bank decreased absenteeism following the introduction of a diversity initiative which provided for more flexible work arrangements. Further analysis of the determinants of job satisfaction is required, but clearly absenteeism is determined by factors amenable to a rights and responsibilities paradigm or a human rights culture. By accommodating difference and working for greater equity, employers can create an environment that foster employee satisfaction and commitment.
There may also be a link between a human rights culture in the workplace and rates of employee theft. The Retail Council of Canada's 1997 Canadian Retail Security Report concludes that employees stole $3 million per day from Canadian retailers.22 Traub (1996) reviewed corporate strategies and programs for battling employee theft. While most corporations approach the problem from a security (cameras), prosecution and whistle-blowing perspective, the workplace culture is being given more attention:
Corporate needs and interests might be better served by creating an atmosphere resting on trust rather than suspicion. Corporate interests might be better served by meeting the needs of workers in a fair, judicious, and equitable way.23
The kind of atmosphere being described here sounds very much like that associated with a human rights culture. In fact, the research conducted around turnover, absenteeism, and employee theft all support Osigweh's conclusion that the 'human resource rights' approach (cooperative, systemic, interdisciplinary) to rights and responsibilities across all four time periods of the employee/employer relationship is the most effective way to implement a responsibilities and rights paradigm.
IV TRANSITIONING TOWARD A HUMAN RIGHTS CULTUREIn Brief: Human rights educators can draw on several models when encouraging organizations to make the transition to a more equitable workplace. Key elements, common to most of the models include executive leadership, linkages to the corporate business plan, administrative support, participation of all employees and ongoing measurement. The factors that motivate corporations to change must be considered by those who are encouraging change. Equity initiatives must move beyond the human resources department, to become an integral part of all corporate activity.
How can human rights educators help organizations make the transition to a human rights culture where diversity and equity are promoted? Several models and strategies exist. Aspects of strategies provided by John Dalla Costa, Trevor Wilson, Patricia Arredondo and Chimezie Osigweh are explored below.
Dalla Costa describes the corporate transition to an ethical orientation in some detail. The transition he envisions starts with individuals at the top of the organization. Because individuals are only ethical in relation to each other,24 a number of ethically oriented individuals foster a community where the ethical orientation takes root.25 The key for this small community, according to Dalla Costa, is a commitment to principle and consistency. For this to be achieved there must be an alignment of intention and action. The board of directors and CEO play critical roles, but a strategy must be developed and embedded within the corporate business plan.26 Factors such as corporate culture (which behaviors are rewarded and reinforced?), and group dynamics have to be considered.27
Dalla Costa recognized that most plans for corporate change fail. He described the typical outcome of such initiatives:
Many smart and worthwhile programs for change never have much influence beyond the introductory workshop or seminar. One reason is that people return to work to find that the problems they face have not changed, and neither have the systems and supports for dealing with them. Even those enthused about the new program find themselves inexorably pulled back into old habits just to keep from falling behind the ever quickening flow of work. Habits are hard to break and hard to change.28
These are important words for human rights educators facing the daunting task of making a lasting difference in an environment which is not always receptive to change. Dalla Costa's implementation plan begins with unlearning, especially regarding the adversarial competitive relationships, which undermine the transition to an ethical workplace.29 Other components of his plan engage management and front line employees in ethical contracting, a strategic ethical plan and ethical orientation audits.30 It is not a simple step by step plan, nor is it a 'silver bullet' that makes change easy.31
Some support for Dalla Costa's model was observed in the corporate interviews conducted for this paper. Senior staff of Crossley Carpets in Truro Nova Scotia, were concerned that they lacked an understanding of what workplace rights were and were not. With the full support of the CEO, an outside expert was sought out and a program was developed. A workplace rights committee (composed of staff) was established and participated in a nine day training session. All employees then participated in a four hour training session. Though the initial focus was on legal aspects of rights and responsibilities, the establishment of in-house expertise and mechanisms for conflict resolution helped resolve a number of issues and placed the firm on the right track in establishing a human rights culture. The key elements appeared to be support at the highest levels of the company, creation of administrative bodies (workplace rights committee) to implement the program and the participation of all staff.
Trevor Wilson echoes many of the points made by Dalla Costa, arguing that there are five essential components to a successful diversity strategy and seven steps to implement them:32
|
Components of a successful diversity strategy |
Seven steps for implementing |
|
1. Management commitment |
1. Needs analysis and preliminary work plan |
|
2. Employee awareness and understanding |
2. Communication and education |
|
3. Employee involvement |
3. Data collection |
|
4. Effective measurement |
4. Data analysis |
|
5. Alignment to the business strategy |
5. Planning |
|
6. Systems change | |
|
7. Implementation |
Table 3.0 Trevor Wilson's strategies and steps for workplace diversity
What distinguished Wilson's plan is the emphasis on measurement and his step by step approach. Wilson cautions against numerical representation targets (quotas)33 and instead describes some different tools that measures employees perceptions of the fairness of organizational systems. A balance of quantitative and qualitative data is stressed, but few of the tools quantify the outcome in dollar figures.
A comprehensive look at implementing diversity and equity initiatives is found in Patricia Arredondo's 1996 book Successful Diversity Management Initiatives: A Blueprint for Planning and Implementation. While her plan is more detailed and comprehensive than either Dalla Costa's or Wilson's, Arredondo touches on many of the same themes including executive leadership, training and evaluation. Arredondo makes an important contribution by devoting considerable attention to factors which motivate firms to implement diversity and equity initiatives. She identified 21 external and internal motivators for firms ranging from lawsuits to profitability.34 Human rights educators and advocates should be familiar with all the factors which motivate firms to embrace a human rights culture (see table 4.0). Finally, Arredondo places emphasis on weaving equity concepts right into the corporate vision and mission statements.
|
External Motivators |
Internal Motivators |
|
Competition |
Growth and expansion goals |
|
Economic downturn/upturn |
Organizational mission / values |
|
Demographic changes |
Organizational climate |
|
Emerging markets |
Employer / customer satisfaction |
|
Image |
Employee / management development |
|
Investor/donor satisfaction |
Continuous improvement |
|
Government regulation |
Progressive thinking |
|
Political correctness |
Profitability |
|
Production |
Performance |
|
Profitability |
Complaints |
|
Lawsuit |
Table 4.0 Arredondo's motivating factors
Finally, Osigweh felt that the 'human resource rights approach' was key to achieving a responsibilities and rights paradigm. His approach focuses on "motivation, communication, rewards and behavioral / human resources and industrial / employee relations systems, excluding the collective orientation".35 He did not propose a comprehensive plan for implementation.
The different plans for transition contain several common elements: executive leadership, linkages to the corporate business plan, administrative support, participation of all employees and ongoing measurement. Human rights educators that work with private corporations need to think strategically about who they should be educating, what the focus of that education should be and how such initiatives can be measured.
CONCLUSIONHuman rights educators need to move beyond the legal approach if they are to help foster a human rights culture in the workplace. They must consider the full terrain of human rights education and stress the financial benefits of human rights and equity in the workplace. The transition toward a diverse and equitable workplace is not a simple one, but by engaging senior management, and encouraging systemic, company wide change anchored in corporate business plans, the barriers which have kept corporations from adopting a human rights culture can be overcome. In the near future, the question corporations may be asking is not whether a human rights culture may be profitable, but whether they can be profitable without it.
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Arredondo, Patricia. Successful Diversity Management Initiatives: A Blueprint for Planning and Implementation. Sage Publications: California. 1996.
Ashenfelter, O. and J. Pencavel. Estimating the Effects on Costs and Price of the Elimination of Sex Discrimination: The Case of Telephone Rates; In Phyllis A Wallace. Equal Employment Opportunity and the AT&T Case. Cambridge: MIT Press. 1976. pp.111-122.
Becker, G.S. The Economics of Discrimination. Chicago: University of Chicago Press. 1971.
Bergmann, B.R. The Effect on White Incomes of Discrimination in Employment. Journal of Political Economy. Vol. 79. March-April 1971. pp.294-313.
Canadian HR Reporter. February 14, 2000.
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Dalla Costa, John. The Ethical Imperative. Why Moral Leadership is Good Business. Harper Collins Publishers: Toronto. 1998.
Drago, Robert and M. Wooden. The Determinants of Labor Absence: Economic Factors and Workgroup Norms Across Countries. Industrial and Labor Relations Review. Vol. 45. No.4, July 1992. pp.764-778.
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Poole, P.J. (1997). Diversity Success Stories. In P.J. Poole Ed. Diversity: A Business Advantage. Altona Manitoba.
Rowney, Julie and G. Miller. Diversity: Research, Measurement, Action. Leadership Diversity Advisory Committee of the Faculty of Management, University of Calgary. 1998
Society for Human Resource Management. Survey of Diversity Programs. Washington D.C. National Multicultural Institute. 1998.
Traub, Stuart. Battling Employee Crime: A Review of Corporate Strategies and Programs. Crime and Delinquency. Vol. 42, No.2. April 1996. pp.244-256.
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APPENDICES Appendix AThe Business Case for Human Rights: Quotables
The following are a series of selected, facts, philosophies and myths about human rights in the workplace. The information is divided in four sections: Dollars and Sense, Myths and Questions, Deep Thoughts and Corporate Quotes. The Dollars and Sense category includes information related to the financial benefits of human rights. The Myths and Questions section contains retorts to common myths about diversity and equity programs and answers to common questions about workplace equity. In Deep Thoughts, some philosophical defense of human rights is provided. The final section entitled Corporate Quotes features some short quotes from interviews conducted with several corporations presently working in human rights promotion and education. It is hoped that the material here will serve to support speeches, papers and educational material on the importance of human rights in the workplace.
Dollars and Sense
"By 2001 the visible minority population in Canada will represent more than 17 percent of the population or almost 6 million people...visible minorities will command about 20% of the total national GDP (or about $311 billion) by 2001."
Wilson, Trevor. Diversity at Work: The Business Case for Equity. 1996.
In a study of AT&T's cost of production, it was estimated that by eliminating discrimination based on gender alone, the company could realize cost savings of nearly 4%.
Ashenfelter, O. and J. Pencavel. Estimating the Effects on Costs and Price of the Elimination of Sex Discrimination: The Case of Telephone Rates; In Phyllis A. Wallace. Equal Employment Opportunity and the AT&T Case. 1976. pp. 111-122.
A study of the costs of occupational sex discrimination estimated that over a ten year period, the net loss to the organization due to excluding women was $7,200 for each person hired.
Dunnette, M.D. and S.J. Motowidlo. Estimating Benefits and Costs of Anti-Sexist Training Programs in Organizations. In H.J. Bernardin, Women in the Work Force. New York: Praeger. 1982. pp. 156-182.
According to the KPMG Ethics Survey 2000 of private corporations and public organizations, ethics ranks at the very bottom of risk assessment priorities; yet remarkably, the same survey found that 29.2% of participating organizations had experienced an incident involving a lawsuit, media coverage or other significant problem with discrimination and 27.3% with sexual harassment.
".discriminatory employment policies are not only unfair to the individuals affected, but also represent costly inefficiencies in the utilization of human resources. Costs of recruitment, training and career orientation are much greater when artificial constraints are imposed on the size of the population from which the job applicants may be drawn."
Agarwal, Naresh. Economic Costs of Employment Discrimination. Commission on Equity: Government of Canada. 1982. p.411.
The business case for equity begins with the assumption...that an equitable employment system will lead to a higher level of employee satisfaction, which will lead to a higher level of employee commitment.
Wilson, Trevor. Diversity at Work: The Business Case for Equity. 1996.
Regarding turnover: In a typical medium sized company with 300 staff members, an annual turnover rate of 12% and an average annual salary of $75,000, the cost to replace lost talent translates into a whopping $4,050,000 per year.
Merck & Company, Hewlett Packard, KPMG and Fortune as reported in the Canadian HR Reporter. Feb 14, 2000. p.G8.
Regarding employee theft: "Corporate needs and interests might be better served by creating an atmosphere resting on trust rather than suspicion (and by) meeting the needs of workers in a fair, judicious and equitable way. In a sense, meeting the needs of workers so that alienation and resentment are no longer acceptable techniques of neutralization of deviance"
Traub, Stuart. Battling Employee Crime: A Review of Corporate Strategies and Programs.Crime and Delinquency. Vol. 42, No.2. April 1996. p.254.
Discrimination is against the interests of business, yet business people too often practice it. To the extent that market participants discriminate, they erect barriers to the free flow of capital and labor to their most profitable employment, and the distribution of output is distorted. In the end, costs are higher, less real output is produced and national wealth accumulation is slowed.
Alan Greenspan in a speech before the Annual Conference of the National Community Reinvestment Coalition, Washington D.C. March 22, 2000. Available online www.bog.frb.fed.us/boarddocs/speeches/2000/20000322.htm
75% of Fortune 500 companies had programs promoting diversity, versus 36% in a random sample; and 60% of those with programs, had staff exclusively dedicated to diversity
Society for Human Resource Management. Survey of Diversity Programs. 1998
An initiative of Deloitte and Touche, a large accounting, tax and consulting firm, to address gender equity resulted in a 3.5% decrease in the turnover of managers and an 8.6% reduction in the loss of senior managers.
Poole, P.J. (1997). Diversity Success Stories. In P.J. Poole Ed. Diversity: A Business Advantage. Altona Manitoba.
One-quarter (27 per cent) of women reported they had left a job with a previous employer because of harassment or discrimination by a colleague or supervisor.
From Creating High Performance Organizations: Leveraging Women's Leadership. Conference Board of Canada. June 2000.
Myths and Questions
Myth: If I treat people differently, aren't discriminating or being unfair?
Fact: It is important to recognize that equality is not equity. Equality means treating people the same and ignoring their differences. Equity means treating people fairly by first acknowledging their differences. In a diverse work force, treating people the same may lead to inequality.
The 'fact' is a quote taken from Wilson, Trevor. Diversity at Work: The Business Case for
Equity. John Wiley and Sons Canada Limited: Etobicoke Ontario. 1996. p.18.
Myth: No one has complained, so it's not a problem in our workplace
Fact: Just because your company has not received any complaints doesn't mean you don't have a problem. Individuals are more likely to come forward with a complaint when the issues are taken seriously. Further, it is estimated that less than 1% of employees who feel unfairly treated pursue regulatory or legal action. Grievances often remain latent and accumulate so that eventual confrontation becomes more intense and destructive.
Myth: Implementing a policy and educating employees about harassment is all fine and good, but sometimes it just creates a problem where there wasn't one before.
Fact: An initial increase in complaints is possible when a workplace introduces human rights policies and provides education to its employees. The new policies and education are perceived as the source of the problem based on the false assumption that (inequity) didn't exist prior to their introduction.
Myth: There wouldn't be a problem if people would just say something when they feel offended.
Fact: Victims report that speaking out against inequity is extremely difficult. Most people worry about how the person will react, and fear that by challenging the behavior, they will only make the situation worse. It can be embarrassing and frightening. The process of coming forward can re-victimize the employee.
The three myths and facts above are adapted from Molson Canada's Employee Information and Guidelines Human Rights in the Workplace. Some points have been edited and new material added.
Q: Doesn't accommodation cost more money than it's worth?
A: There can be some costs associated with accommodation, but accommodation also provides financial benefits and most types of accommodation involve little or no cost at all.
Q: Isn't diversity merely about political correctness?
A: Diversity is about business. It is driven by the changing nature of the Canadian workforce and marketplace. These substantial demographic changes will affect every employer across the country in a very real way.
Q: Will diversity lead to reverse discrimination and tokenism?
A: A diversity program is designed to create an equitable employment system. An equitable employment program is fair to all groups. It is not possible to be fair to some. Diversity seeks to create employment systems that are based solely on merit regardless of gender, race, culture, nationality, class, religion, or any other non-job-related criteria. As such, diversity will work against reverse discrimination and tokenism.
The three questions and answers above are from Wilson, Trevor. Diversity at Work: The Business Case for Equity John Wiley & Sons: Etobicoke, Ontario. 1996.
Deep Thoughts
"Since the worth of companies depends more and more on varied relationships, the point is no longer that ethics must provide a return on investment, but that return on investment without ethics is much riskier and often unachievable"
Dalla Costa, John. The Ethical Imperative. Why Moral Leadership is Good Business. Harper Collins Publishers: Toronto. 1998.
"Victims of discrimination may perceive that they are not being judged fairly, yet it is difficult to avoid succumbing to self-doubt when one's endeavors meet with repeated failure. The right to equal opportunity removes this source of self contempt"
Meyers, Diane T. Work and Self Respect in Ezorsky, Gertrude Ed. Moral Rights in the Workplace. State University of New York Press. 1987. p.25.
"Because workplace relationships have a reciprocal character. the employee's right (to be protected from harm). underpins the employer's right to the worker's best possible performance."
Osigweh, Chimezie and M. Miceli. The Challenge of Employee Rights and Responsibilities in Organizations. In Osigweh, Chimezie. Managing Employee Rights and Responsibilities. Quorum Books: New York. 1989.
Too many employers ignore the importance of attitudes, corporate culture, stereotyping, cronyism and other discriminatory barriers that may exist in the workforce but are difficult to deal with.
Canadian Human Rights Commission 1998 Annual report. p.59.
For people in business, (ethics) does not mean valuing profit less, but instead valuing people more. It means recognizing that the right thing for business and the right thing ethically have become one and the same.
Dalla Costa, John. The Ethical Imperative. Why Moral Leadership is Good Business. Harper Collins Publishers: Toronto. 1998. p.320.
"Organizational leaders who take the time to make an objective assessment of motivations for a diversity initiative are likely to identify self-interest as the most compelling reason."
Arredondo, Patricia. Successful Diversity Management Initiatives: A Blueprint for Planning and Implementation. Sage Publications: California. 1996.
Corporate Quotes
"I don't see the program (workplace rights education) as about human rights, but human relationships"
"With certain individuals who were uncomfortable in the workplace, you can see a difference. people have gone to the workplace rights committee just to talk, they get very real and concrete suggestions on how to improve the (workplace) relationship"
"It certainly raises your awareness.with some visible minority workers, you thought they enjoyed coming to work, but they can tell you lots of subtle things about the workplace that concern them.we are only scratching the surface."
The three quotes above should be attributed to Gordon Laing, Chief Operating Officer. Crossley Carpets, N.S.
"What some companies may not realize is that they have a moral and a financial responsibility to employees"
Mel Garret, Manager Human Resources, Molson's Canada
"A diverse workforce is the workforce of the future"
Appendix BBill Parker, Director of Human Resources, City of Regina
Federal, Provincial and Territorial Human Rights Commissions
|
Commission |
Address |
Phone numbers |
|
Canadian Human Rights Commission |
8th Floor, 344 Slater Street |
Phone: 613-995-1151 |
|
Alberta Human Rights and Citizenship Commission |
800 Standard Life Centre |
Phone: 780-427-3116 |
|
British Columbia Human Rights Commission |
815 Hornby Street, Ste. 306 |
Phone: 604-660-1764 |
|
Manitoba Human Rights Commission |
7th Floor, 175 Hargrave Street |
Phone: 204-945-3007 |
|
New Brunswick Human Rights Commission |
751 Brunswick Street |
Phone: 506-453-2301 |
|
Newfoundland Human Rights Commission |
P.O. Box 8700 |
Phone: 709-729-2709/5812 |
|
Northwest Territories Fair Practices Office |
PO Box 1920 |
Phone: 867-920-8764 |
|
Nova Scotia Human Rights Commission |
5676 Spring Garden Road |
Phone: 902-424-4111 |
|
Nunavut Fair Practices Office |
PO Box 2528, Iqaluit, Nunavut |
Phone: 867-979-2043, |
|
Ontario Human Rights Commission |
8th Floor, 180 Dundas Street West |
Phone: 416-314-4536 |
|
Prince Edward Island Human Rights Commission |
P.O. Box 2000 |
Phone: 902-368-4180 |
|
Commission des droits de la personne et de la jeunesse du Quebec |
360 rue St. Jacques-2e étage |
Phone: 514-873-5146 |
|
Saskatchewan Human Rights Commission |
8th Floor, Sturdy Stone Building |
Phone: 306-933-5952 |
|
Yukon Human Rights Commission |
201 - 211 Hawkins Street |
Phone: 867-667-6226, |
1 Some of the trends here were drawn from Osigweh, Chimezie Ed. Managing Employee Rights and Responsibilities. 1989. p.19.
2 KPMG Ethics Survey 2000. Managing for Ethical Practice. p.7.
3 Osigweh, Chimezie. Toward an Employee Responsibility and Rights Paradigm. p.1279.
4 Ibid. 1280.
5 Ibid. 1280.
6 Osigweh, Chimezie. Toward an Employee Responsibilities and Rights Paradigm. p.1282.
7 Ibid. The ideas discussed in the following paragraphs are drawn from pp.1293-1303.
8 Ibid. p.1295.
9 Ibid. p.1296.
10 Ibid. p.1296.
11 Ibid. p.1298.
12 Society for Human Resource Management. Survey of Diversity Programs. 1998.
13 Wilson, Trevor. 1996.p.96.
14 Agarwal, Naresh. Economic Costs of Employment Discrimination. p.403.
15 Jones, Cheryl. Diversity in Business Background Paper. West Coast Research for Multiculturalism B.C. 2000. p.14.
16 Schwartz, Felice. Breaking with Tradition: Women and Work, the New Facts of Life. 1992
17 Wilson, Trevor. Diversity at Work: The Business Case for Equity. 1996.
18 Wilson, Trevor. 1996. The ideas here are found on pages 32-38.
19 Canadian Human Rights Reporter. February 2000. p.G8.
20 Drago, Robert and M. Wooden. The Determinants of Labor Absence: Economic Factors and Workgroup Norms Across Countries. Industrial and Labor Relations Review. Vol. 45. No.4. July 1992. p.772.
21 Ibid. p.777.
22 Reference to this report was found at the Peel Ontario Police Department web site. See. www.peelpolice.on.ca/loss%20prev.html
23 Ibid. p.254
24 Dalla Costa, John. 1998. p.206.
25 Ibid. The ideas here are found on pages.206-236
26 Ibid. p.289.
27 Ibid. p.290.
28 Ibid. p.256.
29 Ibid. p.257.
30 Ibid. pp.258-259
31 Ibid. p.260.
32 Wilson, Trevor. 1996. pp.19 & 187.
33 Ibid. p.185
34 Arredondo. 1996. p.53
35 Osigweh, Chimezie, Toward an Employee Rights and Responsibilities Paradigm. p.1297.
Reviewed: March 23, 2010
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