Question

With medical costs rising 10 to 15 percent per year, one of the members of your Board of Directors mentioned that some companies are now refusing to hire smokers and the board should discuss this option at the next months meeting. Nationally, about 6,000 companies refuse to hire smokers. Weyco, an employee benefits company in Okemos, Michigan, requires all applicants to take a nicotine test. Weycos CFO says, Were not saying people cant smoke. Were just saying they cant smoke and work here. As an employee-benefits company, we need to take a leadership role in helping people understand the cost impact of smoking. The Cleveland Clinic, one of the top hospitals in the United States, doesnt hire smokers. Paul Terpeluk, the director of corporate and employee health, says all applicants are tested for nicotine and 250 people have lost job opportunities because they smoke. The Massachusetts Hospital Association also refuses to hire smokers. The companys CEO says, Smoking is a personal choice, and as an employer, I have a personal choice within the law about whom we hire
As indicated by your board member, costs are driving the trend not to hire smokers According to the U.S. Centers for Disease Control, a smoker costs about $4,000 more a year to employ because of increased health-care costs and lost productivity Breaking it down, a smoker will have 50 percent higher absenteeism, and, when present, will work 39 fewer minutes per day because of smoke breaks, which leads to 1,817 lost hours of annual productivity. A smoker will have higher accident rates, cause $1,000 a year in property damage (from cigarette burns and smoke damage), and will cost up to $5,000 more a year for annual insurance premiums. John Banzhaf executive director of an antismoking group in Washington, and a law professor at George Washington University, says, Smoking is the biggest factor in controllable health-care costs.
Although few would disagree about the costs, others argue it is wrong not to hire smokers. Jay Whitehead, publisher of a magazine for human resources managers says, There is discrimination at many companies-and maybe even most companies-against people who smoke. Even if applicants arent asked whether they smoke, it doesnt mean that hiring managers turn off their sense of smell. Paul Sherer, a smoker who was fired less than a week after taking a new job, says, Not hiring smokers affects millions of people and puts them in the same category as women able to bear children, and that is people who contribute to higher health-care costs. Its unfair. Law professor Don Garner believes not hiring smokers is an overreaction on the part of employers whose interest is cutting costs. If someone has the ability to do the job, he/she should get it. What you do in your home is your own business. Not hiring smokers is
1. If you were in charge at American Express, what would you do? (Answer the other questions first, then formulate your response to this question) 2. With the meeting just a month away, you need to prepare for the Board of Directors questions. For example, on what basis the company should decide whether or whether not to hire smokers? Should the decision be based on what is in the best interest of the firm, what the law allows, or what affirms and respects individual rights? The Board is interested in making good decisions for the company, but doing the right thing is also one of its core values. 3. Is this an issue of ethics or social responsibility? Ethical decision making is concerned with doing right and avoiding wrong, whereas social responsibility is a businesss obligation to pursue policies, make decisions, and take actions that benefit society. 4. Finally, given that its so much cheaper to not hire smokers, the board will want to know whether its ethical not hire smokers. Is this a form of discrimination?
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Answer #1

Ans 2) Board of Directors Questions for Discussion

  • How can smoking effect the employees work performance and health?
  • What are the effective consequences in hiring smokers in a company?
  • Will there be a discriminatory environment?
  • Will the company be able to bear the increase in medical cost as a result of hiring smokers?
  • What can be the ethical rules if employees with smoking habit are hired?
  • Should there be some strict restrictions for smokers to not smoke during work time?

Ans 3) This is an issue of ethics since smoking is an ethically wrong behavior which can badly affect the health of an individual. Thus, promoting smoking habits among employees is an ethically wrong practice which should be strictly prohibited.

Ans 4) No, this issue cannot be viewed as discrimination. Discrimination is something which differentiates people on the basis of their religion, origin, color or sex which is ethically wrong. While the above issue is whether to hire smokers or not.

Since we know the harmful impact of smoking it can be clearly said that smoking is a immoral practice which will not not only ruin an employee's health but will also affect the overall performance of an organization.

Ans 1) As an in charge of American Express, I would suggest the board that instead not hiring smokers some ethical rules and guidelines should be framed under which it should be mentioned that smoking during working hours is a punishable offence and will lead to an employee's termination. Also, I would suggest to organize health campaigns withing organization to spread awareness among employees about the harmful effects of smoking and other such immoral activities.

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