The economy is operating in a perfect market where buyers and sellers are free to make their own choices, there is perfect information in both labor and goods market, and there is free mobility of labor between firms, industries, and region. The same principle of fair competition in the market regarding goods and services should be applied in labor market without claims of moral inappropriateness. Therefore, this will form mutual agreements for not poaching employees’ acts against this principle of free market (Gardner, Stansbury and Hart, 2010). According to the case study, prohibiting lateral hiring practices suppresses the labor market competition by turning it into a monopoly where firms have full control of the employees. However, when the second firms engages in poaching another firms experts with the intention of harming the competitive advantage of the rival business, then it is regarded as unfair competition (Moshinsky, 2008) .
When high skilled workers are confined in one firm or industry there will be less innovation in production and advancements in career of the employees. As illustrated from the case, employees considers the poaching initiatives as an opportunity of seeking best job opportunities such as generous pay offers. With free mobility, workers are not confined in undesirable, unsatisfactory or declining job positions. Gardner, Stansbury and Hart (2010) claims that an a firm has no property right to its workforce and therefore other organizations have freedom to offer employment opportunities to staffs from other companies. Moreover, the employee is generally free to make decisions regarding the offer based on loyalty and potential benefits (Shah, 2005) . Therefore, lateral hiring gives workers the freedom of decision making with the responsibilities and rights of rejecting or accepting new job offers (Dunfee, 2006) .
Delegate your assignment to our experts and they will do the rest.
References
Dunfee, T. (2006). A critical perspective of integrative social contracts theory: Recurring criticisms and next generation research topics. Journal of Business Ethics, 68 , 303-328.
Gardner, T., Stansbury, J., & Hart, D. (2010). The Ethics of Lateral Hiring. Business Ethics Quarterly, 20 (3), 341-369.
Moshinsky, B. (2008). Squire Sanders poaches team of eight for Ukraine office relaunch. The Lawyer, 22 (9), 1-15.
Shah, N. (2005). The breakdown of norms as institutional change: The decline of the "no lateral-hiring" norm among large corporate law firms 1974-1990. Paper presented at the Annual Meeting of the Academy of Management, Honolulu .
