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The problem with working for small family run businesses is that the leadership typically never learned how to operate in a professional setting. The leaders tend to be the ones who are most invested in the business, so it’s all they know.
Ask yourself: does the conduct you see across the business (not just the founding family) look unnervingly similar to a [semi-dysfunctional] family setting?
That’s basically the result of a company culture which you won’t fix or change. Ontario is a right-to-work province so if you don’t leave on your own terms there’s a reasonable chance they’ll eventually terminate you based on their perception.
Either get comfortable with that chaos or leave. Statistically speaking, there won’t be a third option.
I think firstly separate the management issues from ethics issue. (This is from experience.) HR/management issues would be yelling. At what point does it become a hostile workplace? Ethics would be breaking a law, regulation including worker discrimination, etc. Personally, in my own experience, I have found that written policies or contract don't help unless they are beneficial to you. I hate to say it, but the best option is to find a better place to work where there is mutual respect. People gave me this advice when I faced ethical and management issues. I wish I had taken it