Ethics Unit 4 LJ
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Non-compete agreements
Department of General Studies, University of the People
PHIL 1404: Ethics and Social Responsibility
Dr. Jacqueline Thomas
February 23, 2023
Introduction
In this paper, I will discuss the pros and cons of non-compete
agreements for both general workers and high-level employees.
Furthermore, I will go into detail about the conflicts that arise, different
perspectives toward this agreement and lastly, I will give a quick
overview of the utilitarianism theory.
Non-compete agreements
The purpose of non-compete agreements is that former employees of a
company can't use their acquired skills and knowledge at another company.
The employer doesn't want to give their competitors an advantage (
Byars &
Stanberry,
2019)
.
Conflict of interests
The employer represents the concern that they don't want their former
employees to use their acquired knowledge and skills somewhere else,
sometimes close to the former location, sometimes in general. By preventing
the departed employees from doing so, they are hoping for the competitors
not to get an advantage of the costs and time they put into the training of
former employees.
The employee most likely has the interest of the highest pay and best
work environment. If they wanted to work at a similar location like the kind of
their previous employee, it is likely that they would use their collective
knowledge of their previous job at the new one. This would benefit the
employee as well as the new employer, because of higher efficiency and less
training needed. Also, the employee would most likely want to stay in the
same area as they worked in before, which could be a problem for some
employers, like Jimmy John's
(Byars & Stanberry, 2019).
I think the best way to satisfy both sides is for the employee to
appreciate their employees with a comfortable and safe work environment,
as well as raises when they are adequate. Recognizing the employees' hard
work and skills is a good way to keep them for this company, instead of them
wanting to change jobs.
Executive chef or vice president of marketing or operations
The executive chef or vice president should wait, in my opinion, to take
a new position. Even if they don't want to use their knowledge against their
former company, the new company might extract information from them in
an unsuspicious manner. By waiting for a new job, the information they have
gained might no longer be valid and therefore no longer reliable.
What is fair?
Usually, high-level managers also have a high yearly income. Because
of this, the company should put a non-compete agreement in its contract in
order to keep the companies information and that of its employees safe.
Because the manager has such a high income, it should not be a problem for
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them to have a half-year gap in-between jobs.
Different perspectives
The two main perspectives here are either for or against a non-
compete agreement. One argument for a non-compete agreement is the
information and skills an employee gains during their time at the company.
Another argument for a non-compete agreement is for the employee to take
their position within the company seriously because they can't just switch
jobs so easily.
An argument against a non-compete agreement is that it could force
an unhappy employee to stay with the company, even though they could
earn more and have a better work environment at a different place in the
same kind of business.
I personally am against non-compete agreements. I had a job myself
where I had to sign one and even though I didn't plan on working in the same
kind of employment again, it still gave me anxiety over starting a new
position, just in case there were some similarities.
An ethical standpoint is that the employee should comply with the
company's ethics and respect their internal work. The employees worked
hard to get the company to where it is and this information should not be
handed over to competitors, intentionally or unintentionally.
Another ethical standpoint is that former employees should not be
limited to their choice of employment because of a former job. People should
have the free choice of where they want to apply and work and have the
right to use their acquired skills to get better positions and higher pay.
Ethical theory
I am choosing to explain utilitarianism. Utilitarianism "
determines right
from wrong by focusing on outcomes" (Ethics Unwrapped,
n.d.)
According to
this theory, the outcome that causes the most good is the most ethical
decision. The limitation of utilitarianism is not knowing what the outcome will
be, therefore we can't know if a decision will cause the greatest good for the
greatest number or the opposite (Ethics Unwrapped, n.d.).
Conclusion
In conclusion, there are arguments for and against non-compete agreements,
however in my opinion, more speak against them.
References
Byars, S. M., & Stanberry, K. (2019).
Business ethics
. OpenStax College and
Rice University.
Ethics Unwrapped. (n.d.).
Utilitarianism.
University of Texas.
https://ethicsunwrapped.utexas.edu/glossary/utilitarianism
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