BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY AND GOOD

GOVERNANCE
JOURNAL ARTICLE REVIEW
SATURDAY 5:00 – 8:00 PM PST
SUBMITTED BY: RIKI JONAS A. TAGPUNO

TITLE: JUSTICE AND TRUST

SUMMARY OF READING:

Patricia Werhane's article is primarily concerned with labor issues in the United States. The

primary employment style discussed was employment at will (EAW). Under EAW, employers

and employees are free to enter into contracts of their choosing (Werhane, 1999). Employers can

freely hire and fire employees without following any procedure (Ross, 2021). The benefits of

EAW include a quicker and easier termination process as well as an increase in employee merit

rather than seniority. However, the disadvantages are that employees can easily quit whenever

they want, and it is difficult to attract top talent due to the lack of security.

REACTION:

Employee at Will (EAW) is no longer a viable option in my line of work in this day and age. I'm

not saying it's happening, but if it does, it won't be ideal. I understand that businesses are trying

to avoid losses, but we shouldn't be so quick to judge and fire people. If you see someone

struggling, as a manager, you must understand what your employee is going through because

there are numerous factors that can contribute to such a poor outcome. We must be one with our

employees in order to maximize that individual's potential.

APPLICATION IN PHILIPPINE SETTING:

(Flight Attendants and Stewards Association of the Philippines (FASAP) (Petitioner) v.

Philippine Airlines, Inc., Patria Chiong and The Court of Appeals (Respondents) [G.R. No.

178083 | March 13, 2018]

In 1998, FASAP filed a labor complaint against PAL for firing 1,423 cabin crew members as

part of the 5,000-employee retrenchment and demotion scheme. The Supreme Court's Third

Division found PAL guilty of unlawful retrenchment on July 22, 2008. The failure to prove

financial losses, as well as PAL's failure to use fair and reasonable judgment in deciding which

employees to lay off, were the reasons for PAL's conviction. However, after PAL filed a Motion

for Reconsideration, the Supreme Court settled the case and reversed their decision in 2008 if

PAL implemented a valid retrenchment program on the following grounds: (1) demonstrate

financial losses. (2) Legal notice. (3) Retrench in good faith. (4) When selecting employees, use

fair and reasonable judgment.

REFERENCES:

Werhane, P. (1999) Justice and Trust. Journal of Business Ethics. p. 237

Ross, J. (2021, November 20). Should You Hire At-Will Employees? Business News Daily.

https://www.businessnewsdaily.com/15833-hire-at-will-employees.html

The LawPhil Project. (n.d.).

https://www.lawphil.net/judjuris/juri2018/mar2018/gr_178083_2018.html