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Golden Taurus Case Study

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1. Does the company’s current financial condition justify the compensation given to employees? Explain. No, the company’s current financial condition does not justify the compensation given to employees. I think once an employee sign a contract, the compensation included in the statement should be given. Whether the company is experiencing a bankruptcy or not, it has the liability to give its employees an appropriate compensation.

2. Is it ethical to deny the employees the information about the company’s financial conditions and decisions? No, it is not ethical to deny the employees the information about the company’s financial conditions and decisions because employees has the right to know some issues of the company they are working in order for them to work efficiently and effectively. On the other hand, the company has the responsibility to disclose some of its trade secrets to its employees for them to know their limitations in doing their job. Employees have its place as one of the key contributors in the success of the operation of a company; therefore, they should be given appropriate information regarding the conditions of the company and decisions of the management.

3. Is it moral to let the employees sign a 5- month contract instead of the usual 6- month contract? For me, it is moral to sign a 5- month contract instead of the 6- month contract as long as the employee read the content before him sign the agreement. The reason for this is to avoid expectations from both parties (i.e. SSS premiums, 13th month pay, year- end bonus and overtime pay).

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