Ethics Related Issue

The coronavirus outbreak has triggered unprecedented mass layoffs and furloughs of workforce. Several companies that have furloughed and laid-off their employees are owned by billionaires and millionaires. Should they practice "shared sacrifice" - owners and employees are asked to take a little pain than a few taking it all? Or when companies are not making profits, it is the right of the employers/owners to furlough or terminate employment?

Question: Identify ethical issues or concerns associated based on the case above. Elaborate about these issues and concerns.

Answer:

Ethical issues in business during a disaster

Step-by-step explanation

The coronavirus outbreak has made employees lose their jobs as employers made losses or laid them off to avoid making losses. The act of laying off employees in a disaster or pandemic raises ethical issues on employers and employees' roles in response to the pandemic. Employees depend on the employer for a living, and when they are laid off, it means they are likely to suffer a shortage of basic needs, especially if the employment was the only source of livelihood. It has been seen as a morally wrong action to furlough employees by millionaires who benefit from the government job retention scheme, a program used by the government to help employers avoid laying off or cutting the salaries of their employees (Faragher, 2020). The backlash on companies that furlough their employees is excellent on those owned by millionaires and have experienced a financial crisis in the past without laying off their staff. Another ethical issue is the role of employers towards their employees and their welfare. Employers are expected to take care of the welfare of employees during the pandemic to protect their reputation and as a social responsibility. The moral grounds for employers to pay employees during the pandemic are that they should share the sacrifice since the employees contribute to the organization's success.