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时间：2023-07-25
COMM1100 Business Decision Making
Employee and Supplier Relations Decisions
General housekeeping:
• Please switch your microphone to Mute to avoid disruption to the class
• If you need subtitles, turn on live captioning via the More Actions section in Teams
• Use Slido to ask questions or make a comment. If you have poor internet, turn off your video
• Wait for your lecturer to start
10
Decision
making, Supply
and Demand
Surplus
measures and
welfare
Market power
and imperfect
competition
Legal rights of
stakeholders
in decision
making
Stakeholders
and
Customer
Relations
Decisions
Flexibility
Week
Employee
& Supplier
Relations
Decisions
Stakeholder
Decisions
Regarding Manages
Complexity in
Business Decision
Making
11
Intro to
Business Decision
Making
Stakeholders
and
CR
11
A
SS
ES
SM
EN
TS
COMM1100 Business Decision Making
Quiz 1:
10%
Case study
analysis: 20%
Final
exam
50%
Quiz 2:
10%
2 8
Decisions Related to Stakeholders
10
Decision Making Processes
5
Foundations of Business Decisions
Competitor
Relations
Decisions
6 7 931
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
The role of
government in
business
4
• In previous weeks we examined
business decisions in
relationship to customers and
competitors
• We learned about:
• Price Discrimination
• Intellectual Property Law
• Customers as Stakeholders
• Competition law
• Game theory
What you have learned last week
Questions?
Direct Slido link: https://app.sli.do/event/2w8os0qm
Or you use use
the QR code:
Or go to https://www.sli.do and enter the code #3047320
Classifying stakeholders
Overview
• The specific role of employees among the various
stakeholder groups
• Core ethical topics of employees’ rights and duties
• Ethical issues and problems faced in business -
employee relations
• The duties of employees and the company’s
involvement in enabling employees to fulfil their duties
Defining an Employee and Supplier
Employee
&
Supplier
Sellers of goods or services
Employee Supplier
Two distinct
contractual relationships
Employee Supplier
Two groups of stakeholders with
(sometimes) overlapping interests
Microeconomics Law Corporate Responsibility
Case study:
UberEats
In December 2020, Uber settled with a former Uber Eats delivery driver in advance of a high-stakes court ruling
that would decide whether the driver was an “employee” or “independent contractor/ Delivery partner”
The Gig Economy
What is a gig economy? - YouTube
The Gig Economy
individuals being hired for a specific
task, rather than being employed longer
term (with the associated benefits) for
exactly the same task
• Workers are exposed to economic risk
and uncertainty
• Workers lack social welfare structures
associated with employment, e.g.
pensions (superannuation), paid
holidays and sick pay, parental leave
or carer’s entitlements
Management of human ‘resources’:
an ethical issue between rights and duties
Human Resource Management (HRM) has been a subject of intense
debate in business ethics
Humans are treated as an important and costly resource
Consequently, employees are subject to a strict managerial rationale
of minimising costs and maximising the efficiency of the ‘resource’
Is HRM ethical? Rhetoric and reality
Rhetoric Reality
‘New working patterns’ Part-time instead of full-time jobs
‘Flexibility’ Management can set the rules
‘Empowerment’ Making someone else take the risk
and responsibility
‘Training and development’ Manipulation
‘Recognizing the contribution of the
individual’
Undermining the trade union and
collective bargaining
‘Teamworking’ Reducing the individual’s discretion
Based on Legge (1998)
What employee issues have we seen in recent times?
Employee Rights and Employee Duties
Central ethical issues in HRM revolve around
rights and duties.
• Employee rights:
• Entitlements of workers with respect to their employer, based on a
general understanding of human rights and often codified in
employment law.
• Employee duties:
• Obligations of workers towards their employer, based on individual
contracts and wider employment laws.
Rights of employees as stakeholders of the firm
Employee rights Issues involved
Right to freedom from discrimination Equal opportunities, affirmative action, reverse
discrimination, sexual and racial harassment
Right to privacy Health and drug testing, electronic privacy and data
protection
Right to due process Promotion, firing, disciplinary
Right to participation and association Organization of workers in works councils and trade
unions, participation in the company’s decision
Right to healthy and safe working conditions Working conditions, work-life balance, occupational
health and safety
Right to fair wages Pay, industrial action, new forms of work
Right to freedom of conscience and speech Whistleblowing, do no harm
Duties of employees as stakeholders of the firm
Employee duties Issues involved
Duty to comply with labour contract Acceptable level of performance
Work quality and time (contractual hours)
Loyalty to the firm – Code of Conduct
Duty to comply with the law Bribery and corruption
Fraud, theft, embezzlement
Workplace Health and Safety
Duty to respect the employer’s property Unauthorized use of company resources for
private purposes
Fraud, theft, embezzlement
Corporate Confidentiality (IP)
Ethical
Considerations
Utilitarian
Approach
Deontological
Approach
Do firms benefit from leading with the best
HR practices?
How can companies promote the positive
treatment of employees and benefit from
leading with best practices?
Costco offers a model
Costco tends to pay around 40% more and
provides more comprehensive health and
retirement benefits than Walmart and Target,
saving large amounts in employee turnover
costs. The company resists layoffs, invests in
training its employees, and grants them
substantial autonomy to solve problems.
Fortune 100 Best Companies to Work For
1. Cisco systems
2. Hilton
3. American Express
4. Wegmans Food Markets
5. Accenture
6. Nvidia
7. Atlassian
8. Salesforce
9. Comcast
10. Mariott International
100 Best Companies to Work For | Fortune
Methodology for Fortune 100 Best Companies to Work For (2023) | Fortune
If the delivery driver labour market is
perfectly competitive, then Uber is a
price-taker.
• It can hire as many drivers as it
wants at the market wage.
If Uber is the only employer of delivery
drivers, it is a monopsonist.
• It has market power to set the wage.
Market power and Uber Eats
1. Is Uber Eats a monopsony?
If Uber eats were to class its drivers as
employees rather than contractors…
2a. Would its drivers benefit or be harmed?
2b. Would the restaurants it works with benefit
or be harmed?
2c. Would its consumers benefit or be
harmed?
Market power and Uber Eats
• Uber Eats has approximately 60% of the market, Deliveroo at 20% and
Menulog at 12% (AFR)
• These are market share figures for the output market, rather than the
input (driver/rider) market, but are still informative of Uber’s approximate
level of market power with its drivers
• It is also notable that most Uber Eats drivers also drive for other
companies (Uber does not try to prevent this)
• In sum: some market power, but not a monopsonist
Market power and Uber Eats
• If Uber Eats were to class its drivers as
employees rather than contractors,
would its drivers benefit or be harmed?
• No easy answer here.
Uber Eats and its (labour) suppliers
• Classifying its drivers as employees will make employing each
driver more costly for Uber.
• This may make it optimal for Uber to hire fewer drivers
• Good for drivers who remain employed (they get more labour protections + wage
certainty + super contributions).
• Bad for drivers whom Uber will no longer employ.
• Classifying drivers as employees could give Uber more power over its
drivers, including the power to prevent them from driving with other
services. In the long run, this could give Uber more market power →
bad for drivers.
Uber Eats and its (labour) suppliers
• If Uber Eats were to class its drivers as
employees rather than contractors,
would the restaurants it works with
benefit or be harmed?
Uber Eats and its (food) suppliers
• Classifying its drivers as employees will make employing each
driver more costly for Uber.
• Some of these costs may be passed on to consumers and to the
restaurants Uber delivers from (which is bad for them).
• Some restaurants will still use Uber but have to pay more for it, which is bad for
them
• Some restaurants will no longer choose to use Uber
Uber Eats and its (food) suppliers
• If Uber Eats were to class its drivers as
employees rather than contractors,
would consumers benefit or be
harmed?
Uber Eats and its (hungry mouths) suppliers
• Classifying its drivers as employees will make employing each
driver more costly for Uber
• Some of these costs may be passed on to consumers and to the
restaurants Uber delivers from (which is bad for them)
• Higher service fees
• Some restaurants no longer delivering
• Many consumers would happily pay a larger service fee if they knew it
meant their driver was paid well, accumulating super, etc. But given its
actions in the lawsuit, Uber apparently does not think such consumers
are very common.
Uber Eats and its (hungry mouths) suppliers
Next week
Government intervention: Government as a
stakeholder
• Taxes and transfers
• Price control laws
Why and where the government intervenes in markets and society
Economic effects of government intervention in markets, with main focus
on taxation
References
• https://www.afr.com/life-and-luxury/food-and-wine/restaurant-anger-directed-at-uber-
eats-20200319-p54bxz
• https://www.theguardian.com/technology/2020/dec/30/uber-eats-avoids-landmark-
ruling-on-workers-status-by-settling-case-with-delivery-rider
• https://www.theguardian.com/business/2021/may/18/deliveroo-loses-dismissal-case-
after-rider-fired-for-being-too-slow-is-ruled-an-employee
• https://www.theguardian.com/australia-news/2021/may/17/menulog-pushes-ahead-with-
plans-for-drivers-to-become-employees-under-new-award
• Interview of Adam Smith with David Card:
https://www.youtube.com/watch?v=SF62xDPRK90
• Interview of Adam Smith with Guido Imbens:
https://www.youtube.com/watch?v=IpCg1J-b8Vk
Thank you
If you have any questions about the
course, please contact the Course
Coordinator at
comm1100@unsw.edu.au
The lecture recording will be made
available in your Moodle course site.
Course Coordinator
comm1100@unsw.edu.au
Course site:
https://moodle.telt.unsw.edu.au/course/view.php?id=60102
Employee and Supplier Relations Decisions
General housekeeping:
• Please switch your microphone to Mute to avoid disruption to the class
• If you need subtitles, turn on live captioning via the More Actions section in Teams
• Use Slido to ask questions or make a comment. If you have poor internet, turn off your video
• Wait for your lecturer to start
10
Decision
making, Supply
and Demand
Surplus
measures and
welfare
Market power
and imperfect
competition
Legal rights of
stakeholders
in decision
making
Stakeholders
and
Customer
Relations
Decisions
Flexibility
Week
Employee
& Supplier
Relations
Decisions
Stakeholder
Decisions
Regarding Manages
Complexity in
Business Decision
Making
11
Intro to
Business Decision
Making
Stakeholders
and
CR
11
A
SS
ES
SM
EN
TS
COMM1100 Business Decision Making
Quiz 1:
10%
Case study
analysis: 20%
Final
exam
50%
Quiz 2:
10%
2 8
Decisions Related to Stakeholders
10
Decision Making Processes
5
Foundations of Business Decisions
Competitor
Relations
Decisions
6 7 931
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
Participation:
10% (in total)
The role of
government in
business
4
• In previous weeks we examined
business decisions in
relationship to customers and
competitors
• We learned about:
• Price Discrimination
• Intellectual Property Law
• Customers as Stakeholders
• Competition law
• Game theory
What you have learned last week
Questions?
Direct Slido link: https://app.sli.do/event/2w8os0qm
Or you use use
the QR code:
Or go to https://www.sli.do and enter the code #3047320
Classifying stakeholders
Overview
• The specific role of employees among the various
stakeholder groups
• Core ethical topics of employees’ rights and duties
• Ethical issues and problems faced in business -
employee relations
• The duties of employees and the company’s
involvement in enabling employees to fulfil their duties
Defining an Employee and Supplier
Employee
&
Supplier
Sellers of goods or services
Employee Supplier
Two distinct
contractual relationships
Employee Supplier
Two groups of stakeholders with
(sometimes) overlapping interests
Microeconomics Law Corporate Responsibility
Case study:
UberEats
In December 2020, Uber settled with a former Uber Eats delivery driver in advance of a high-stakes court ruling
that would decide whether the driver was an “employee” or “independent contractor/ Delivery partner”
The Gig Economy
What is a gig economy? - YouTube
The Gig Economy
individuals being hired for a specific
task, rather than being employed longer
term (with the associated benefits) for
exactly the same task
• Workers are exposed to economic risk
and uncertainty
• Workers lack social welfare structures
associated with employment, e.g.
pensions (superannuation), paid
holidays and sick pay, parental leave
or carer’s entitlements
Management of human ‘resources’:
an ethical issue between rights and duties
Human Resource Management (HRM) has been a subject of intense
debate in business ethics
Humans are treated as an important and costly resource
Consequently, employees are subject to a strict managerial rationale
of minimising costs and maximising the efficiency of the ‘resource’
Is HRM ethical? Rhetoric and reality
Rhetoric Reality
‘New working patterns’ Part-time instead of full-time jobs
‘Flexibility’ Management can set the rules
‘Empowerment’ Making someone else take the risk
and responsibility
‘Training and development’ Manipulation
‘Recognizing the contribution of the
individual’
Undermining the trade union and
collective bargaining
‘Teamworking’ Reducing the individual’s discretion
Based on Legge (1998)
What employee issues have we seen in recent times?
Employee Rights and Employee Duties
Central ethical issues in HRM revolve around
rights and duties.
• Employee rights:
• Entitlements of workers with respect to their employer, based on a
general understanding of human rights and often codified in
employment law.
• Employee duties:
• Obligations of workers towards their employer, based on individual
contracts and wider employment laws.
Rights of employees as stakeholders of the firm
Employee rights Issues involved
Right to freedom from discrimination Equal opportunities, affirmative action, reverse
discrimination, sexual and racial harassment
Right to privacy Health and drug testing, electronic privacy and data
protection
Right to due process Promotion, firing, disciplinary
Right to participation and association Organization of workers in works councils and trade
unions, participation in the company’s decision
Right to healthy and safe working conditions Working conditions, work-life balance, occupational
health and safety
Right to fair wages Pay, industrial action, new forms of work
Right to freedom of conscience and speech Whistleblowing, do no harm
Duties of employees as stakeholders of the firm
Employee duties Issues involved
Duty to comply with labour contract Acceptable level of performance
Work quality and time (contractual hours)
Loyalty to the firm – Code of Conduct
Duty to comply with the law Bribery and corruption
Fraud, theft, embezzlement
Workplace Health and Safety
Duty to respect the employer’s property Unauthorized use of company resources for
private purposes
Fraud, theft, embezzlement
Corporate Confidentiality (IP)
Ethical
Considerations
Utilitarian
Approach
Deontological
Approach
Do firms benefit from leading with the best
HR practices?
How can companies promote the positive
treatment of employees and benefit from
leading with best practices?
Costco offers a model
Costco tends to pay around 40% more and
provides more comprehensive health and
retirement benefits than Walmart and Target,
saving large amounts in employee turnover
costs. The company resists layoffs, invests in
training its employees, and grants them
substantial autonomy to solve problems.
Fortune 100 Best Companies to Work For
1. Cisco systems
2. Hilton
3. American Express
4. Wegmans Food Markets
5. Accenture
6. Nvidia
7. Atlassian
8. Salesforce
9. Comcast
10. Mariott International
100 Best Companies to Work For | Fortune
Methodology for Fortune 100 Best Companies to Work For (2023) | Fortune
If the delivery driver labour market is
perfectly competitive, then Uber is a
price-taker.
• It can hire as many drivers as it
wants at the market wage.
If Uber is the only employer of delivery
drivers, it is a monopsonist.
• It has market power to set the wage.
Market power and Uber Eats
1. Is Uber Eats a monopsony?
If Uber eats were to class its drivers as
employees rather than contractors…
2a. Would its drivers benefit or be harmed?
2b. Would the restaurants it works with benefit
or be harmed?
2c. Would its consumers benefit or be
harmed?
Market power and Uber Eats
• Uber Eats has approximately 60% of the market, Deliveroo at 20% and
Menulog at 12% (AFR)
• These are market share figures for the output market, rather than the
input (driver/rider) market, but are still informative of Uber’s approximate
level of market power with its drivers
• It is also notable that most Uber Eats drivers also drive for other
companies (Uber does not try to prevent this)
• In sum: some market power, but not a monopsonist
Market power and Uber Eats
• If Uber Eats were to class its drivers as
employees rather than contractors,
would its drivers benefit or be harmed?
• No easy answer here.
Uber Eats and its (labour) suppliers
• Classifying its drivers as employees will make employing each
driver more costly for Uber.
• This may make it optimal for Uber to hire fewer drivers
• Good for drivers who remain employed (they get more labour protections + wage
certainty + super contributions).
• Bad for drivers whom Uber will no longer employ.
• Classifying drivers as employees could give Uber more power over its
drivers, including the power to prevent them from driving with other
services. In the long run, this could give Uber more market power →
bad for drivers.
Uber Eats and its (labour) suppliers
• If Uber Eats were to class its drivers as
employees rather than contractors,
would the restaurants it works with
benefit or be harmed?
Uber Eats and its (food) suppliers
• Classifying its drivers as employees will make employing each
driver more costly for Uber.
• Some of these costs may be passed on to consumers and to the
restaurants Uber delivers from (which is bad for them).
• Some restaurants will still use Uber but have to pay more for it, which is bad for
them
• Some restaurants will no longer choose to use Uber
Uber Eats and its (food) suppliers
• If Uber Eats were to class its drivers as
employees rather than contractors,
would consumers benefit or be
harmed?
Uber Eats and its (hungry mouths) suppliers
• Classifying its drivers as employees will make employing each
driver more costly for Uber
• Some of these costs may be passed on to consumers and to the
restaurants Uber delivers from (which is bad for them)
• Higher service fees
• Some restaurants no longer delivering
• Many consumers would happily pay a larger service fee if they knew it
meant their driver was paid well, accumulating super, etc. But given its
actions in the lawsuit, Uber apparently does not think such consumers
are very common.
Uber Eats and its (hungry mouths) suppliers
Next week
Government intervention: Government as a
stakeholder
• Taxes and transfers
• Price control laws
Why and where the government intervenes in markets and society
Economic effects of government intervention in markets, with main focus
on taxation
References
• https://www.afr.com/life-and-luxury/food-and-wine/restaurant-anger-directed-at-uber-
eats-20200319-p54bxz
• https://www.theguardian.com/technology/2020/dec/30/uber-eats-avoids-landmark-
ruling-on-workers-status-by-settling-case-with-delivery-rider
• https://www.theguardian.com/business/2021/may/18/deliveroo-loses-dismissal-case-
after-rider-fired-for-being-too-slow-is-ruled-an-employee
• https://www.theguardian.com/australia-news/2021/may/17/menulog-pushes-ahead-with-
plans-for-drivers-to-become-employees-under-new-award
• Interview of Adam Smith with David Card:
https://www.youtube.com/watch?v=SF62xDPRK90
• Interview of Adam Smith with Guido Imbens:
https://www.youtube.com/watch?v=IpCg1J-b8Vk
Thank you
If you have any questions about the
course, please contact the Course
Coordinator at
comm1100@unsw.edu.au
The lecture recording will be made
available in your Moodle course site.
Course Coordinator
comm1100@unsw.edu.au
Course site:
https://moodle.telt.unsw.edu.au/course/view.php?id=60102
