What is the ethical issue?

Organisations provide different types of contracts to employees, and these may carry different benefits. There has recently been a rise in the number of people employed on part-time or atypical contracts. Employers are attracted to more flexible types of employment contracts because of the ability they give to meet increasing variations in demand.

Previously, employment conditions tended to be homogeneous among all employees. Now, a workplace might contain many workers, all with different contracts. Consequently, differences could apply to two workers performing the same job.

Contractual arrangements, including agency contracts, zero-hour and part-time workers, all have the potential to raise issues of fairness. These risks have been amplified by changing working patterns in which atypical contracts are becoming more common, and the same principles of fairness for full-time employees are not necessarily being applied. 

Where there is a lack of equality of opportunity among employees within a workplace, the perception of unfair treatment, inconsistency and double-standards increases.  Examples of unfair practices can be found in terms and conditions of employment, selection for redundancy, dismissal, access to training or promotion, as well as other benefits. These imbalances can create a backlash, both internally and externally.

The use of zero-hours contracts in particular can have negative implications for a business. While the use of zero-hour contracts is not necessarily unfair, their abuse by employers can cause reputational damage. These types of contracts can also impact company culture, as employees on zero-hours may have zero interest in the organisation, or engagement with its ethical values.

 

IBE Guidance

A summary of good practice
  • Atypical contracts must be used in interests of the organisation and the employees in a mutually beneficial way.  An ethical employer will want to treat all its employees fairly. In return, workers will want to ‘do the right thing,’ creating a positive cycle of employee engagement.
  • All employees in similar roles, regardless of the type of contract they are on, should be given equal opportunities. If utilising atypical contracts, organisations should monitor these carefully and be aware of the impacts they can have on employees.
  • Whatever type of contract is in operation, employees are entitled to expect a degree of protection against unethical behaviour, an expectation as to the number of hours they will work, and be supported to do the right thing.

 

Further resources

Survey

IBE Survey - Ethical Risks 2024

19 February 2024

IBE news

Fraud fears rise due to tightening economic conditions

19 February 2024

Blog

What are the ethical risk factors business leaders are most concerned about in 2024?

19 February 2024

Blog

Good Business Week 2024 by Julian Richer & Jenny Herrera

08 February 2024

Webinar

Engaging young people with business ethics webinar recording

28 September 2023

Blog

Post CBI, post Casey, post #MeToo – is now the real time for change?

Read the latest blog from IBE Deputy Director, Rachael Saunders.

27 April 2023

Business ethics briefing

Business Ethics in the News 2022

This resource provides an analysis of the year’s news trends and the issues and sectors that featured the most.

12 January 2023

Blog

Is your business ethical - and do your stakeholders think so?

Listen in as Survey Director, Christopher Cowton shares his thoughts on our latest survey, IBE Attitudes of the British Public to Business Ethics 2022.

30 June 2022

Survey

Attitudes of the British Public to Business Ethics 2022

Businesses and UK politicians must do better at demonstrating their ethical credentials if they are to win back the confidence of the British public - the 2022 results of the IBE's annual survey of the attitudes of the British public to business ethics.

29 June 2022

Webinar

The Power of Trust

View our webinar recording.

27 June 2022

Business ethics briefing

Business Ethics in the News 2021

This resource presents an overview of the ethical concerns and lapses, as well as the positive business ethics stories, that the IBE recorded for its media monitoring exercise in 2021. It provides an analysis of the year’s trends and the issues and sectors that featured most frequently.

24 January 2022

Blog

Employees’ voices: a glass half full

The results of our latest Ethics at Work survey bring us some good news, but also some red flags that cannot be ignored as organisations shape their ethical agenda for the future.

08 December 2021

Blog

The right question

Read the latest blog by Mark Chambers, IBE's Associate Director (Governance).

10 November 2021

IBE news

Institute of Business Ethics research suggests companies need to do more to embed ethical behaviour

04 November 2021

Survey

Ethics at Work: 2021 International Survey of Employees

This survey is the only one of its kind, covering 13 countries over four continents, that provides real insight into employees’ views on ethics across all sectors and job roles.

04 November 2021

Blog

Every crisis is an opportunity

Read our latest guest blog by Sally March, Jane Mitchell, Robert Smith and Ruth Steinholtz.

13 October 2021

Blog

Attitudes. Ethics. Trust.

In this blog, Guendalina Donde, IBE's Head of Research, discusses the results of the 2020 Attitudes of the British Public to Business Ethics survey.

13 January 2021

Survey

Attitudes of the British Public to Business Ethics 2020

The 2020 results of the IBE's annual survey of the attitudes of the British public to business ethics.

30 December 2020

Blog

The Lessons of 2020

To end 2020, IBE's Director, Ian Peters, reflects on the lessons learnt and looks ahead to 2021.

23 December 2020

Business ethics briefing

Business Ethics in the News 2020

This briefing provides an overview of the ethical concerns and lapses that were recorded by the IBE in its monitoring of media coverage in 2020.

23 December 2020

Load more