Managing Ethics and Diversity
Transcript of Managing Ethics and Diversity
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Managing Ethics and Diversity
Chapter Three
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Learning Objectives
LO3-1 Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups
LO3-2 Explain why managers should behave ethically and strive to create ethical organizational cultures
LO3-3 Appreciate the increasing diversity of the workforce and of the organizational environment
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Learning Objectives (cont.)
LO3-4 Grasp the central role that managers play in the effective management of diversity
LO3-5 Understand why the effective management of diversity is both an ethical and a business imperative
LO3-6 Understand the two major forms of sexual harassment and how they can be eliminated
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The Nature of Ethics
Ethical Dilemma
Quandary people find themselves in when they have to decide if they should act in a way that might help another person even though doing so might go against their own self-interest
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The Nature of Ethics
Ethics
The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the “right” or appropriate way to behave
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Stakeholders and Ethics
Stakeholders
The people and groups that supply a company with its productive resources and so have a claim on and a stake in the company
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Types of Company Stakeholders
Figure 3.1
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Stockholders
Want to ensure that managers are behaving ethically and not risking investors’ capital by engaging in actions that could hurt the company’s reputation
Want to maximize their return on investment
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Managers
Responsible for using a company’s financial capital and human resources to increase its performance
Have the right to expect a good return or reward by investing their human capital to improve a company’s performance
Frequently juggle multiple interests
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Discussion Question: Managers
Is it ethical for managers to receive vast amounts of money from their companies?
A. Yes
B. No
C. Sometimes
D. Never
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Employees
Companies can act ethically toward employees by creating an occupational structure that fairly and equitably rewards employees for their contributions
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Suppliers and Distributors
Suppliers expect to be paid fairly and promptly for their inputs
Distributors expect to receive quality products at agreed-upon prices
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Customers
Most critical stakeholder
Company must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones
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Community, Society, and Nation
Community
Refers to physical locations like towns or cities or to social milieus like ethnic neighborhoods in which companies are located
Provides a company with the physical and social infrastructure that allows it to operate
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Four Ethical Rules
Figure 3.2
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Practical Decision Model
1. Does my decision fall within the acceptable standards that apply in business today?
2. Am I willing to see the decision communicated to all people and groups affected by it?
3. Would the people with whom I have a significant personal relationship approve of the decision?
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Why should managers behave ethically?
The relentless pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way
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Some Effects of Ethical/Unethical
Behavior
Figure 3.3
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Question?
What is confidence and faith in another person’s goodwill?
A. Reputation
B. Trust
C. Empathy
D. Hope
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Why should managers behave ethically?
Trust
Willingness of one person or group to have faith or confidence in another person’s goodwill, even though this puts them at risk
Reputation
Esteem or high repute that individuals or organizations gain when they behave ethically
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Determinants of Ethics
Figure 3.4
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Ethical Organizational Cultures
Managers can ensure that important ethical values and norms are key features of an organization’s culture
Managers become ethical role models whose behavior is scrutinized by their subordinates
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Ethical Organizational Cultures
Ethics Ombudsman
An ethics officer who monitors an organization’s practices and procedures to be sure they are ethical
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The Increasing Diversity of the Workforce and the Environment
Diversity
Differences among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, education, physical appearance, capabilities, disabilities, and any other characteristic used to distinguish people.
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Diversity Concerns
The ethical imperative for equal opportunity
Effectively managing diversity can improve organizational effectiveness
Evidence that diverse individuals continue to experience unfair treatment in the workplace as a result of biases, stereotypes, and overt discrimination.
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Question?
What is the metaphorical barrier that prevents minorities and women from being promoted to top corporate positions?
A. Gender Barrier
B. Gender Prejudice
C. Glass Ceiling
D. Glass Top
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Diversity Concerns
Glass ceiling
A metaphor alluding to the invisible barriers that prevent minorities and women from being promoted to top corporate positions
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Sources of Diversity in the Workplace
Figure 3.5
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Workforce Diversity: Age
Aging U.S. Population
Median age is 36.9
By 2030, 20 percent of the population will be over 65
Federal Age Discrimination Laws
1964 Title VII of the Civil Rights Act of 1964
1967 Age Discrimination in Employment Act
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Workforce Diversity: Gender
Women in the Work Place
U.S. workforce is 46.7 % percent female
Women’s weekly median earnings are $688 compared to $843 for men.
Women hold only 14.1% of corporate officer positions
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Workforce Diversity: Religion
Accommodation for Religious Beliefs
Scheduling of critical meetings
Providing flexible time off for holy days
Posting holy days for different religions on the company calendar
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Workforce Diversity: Capabilities and Disabilities
Disability Issues
Providing reasonable accommodations for individuals with disabilities
Promoting a nondiscriminatory workplace environment
Educating the organization about disabilities
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Workforce Diversity: Socioeconomic Background
Managers need to be sensitive and responsive to the needs and concerns of workers who may be less fortunate than themselves in terms of income and financial resources, child care and elder care options, housing opportunities, and existence of sources of social and family support
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Workforce Diversity: Sexual Orientation
Sexual Orientation Issues
Employment and workplace discrimination
Provision of domestic-partner benefits
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Critical Managerial Roles
Managers have more influence than rank-and-file employees
When managers commit to diversity, it legitimizes diversity efforts of others
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Forms of Sexual Harassment
Quid pro quo
Asking for or forcing an employee to perform sexual favors in exchange for receiving some reward or avoiding negative consequences.
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Forms of Sexual Harassment
Hostile work environment
Telling lewd jokes, displaying pornography, making sexually oriented remarks about someone’s personal appearance, and other sex-related actions that make the work environment unpleasant.
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Steps to Eradicate Sexual Harassment
Develop and clearly communicate a sexual harassment policy endorsed by top management
Use a fair complaint to investigate charges of sexual harassment
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Steps to Eradicate Sexual Harassment
When it has been determined that sexual harassment has taken place, take corrective action as soon as possible
Provide sexual harassment education and training to all organizational members, including managers
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Video: Hewlett Packard
Why should an investor be concerned with a potential $40 million severance package for an exiting CEO?
Should severance clauses in an executive contact be considered unethical?