Week 2 Lecture Monday

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Managing
Ethics and
Diversity
Chapter Three

2. 3-2
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

3. 3-3
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

4. 3-4
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

5. 3-5
Types of Company Stakeholders
Figure 3.1

6. 3-6
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

7. 3-7
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

8. 3-8
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

9. 3-9
Employees
Companies can act ethically toward
employees by creating an occupational
structure that fairly and equitably rewards
employees for their contributions

10. 3-10
Suppliers and Distributors
Suppliers expect to
be paid fairly and
promptly for their
inputs
Distributors expect
to receive quality
products at agreed-
upon prices

11. 3-11
Customers
Most critical
stakeholder
Company must
work to increase
efficiency and
effectiveness in
order to create
loyal customers and
attract new ones

12. 3-12
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

13. 3-13
Four Ethical Rules
Figure 3.2

14. 3-14
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?

15. 3-15
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

16. 3-16
Some Effects of
Ethical/Unethical
Behavior
Figure 3.3

17. 3-17
Question?
What is confidence and faith in another person’s
goodwill?
A. Reputation
B. Trust
C. Empathy
D. Hope

18. 3-18
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

19. 3-19
Determinants of Ethics
Figure 3.4

20. 3-20
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

21. 3-21
Ethical Organizational Cultures
Ethics Ombudsman
 An ethics officer who monitors an organization’s
practices and procedures to be sure they are
ethical

22. 3-22
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.

23. 3-23
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.

24. 3-24
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

25. 3-25
Diversity Concerns
Glass ceiling
 A metaphor alluding to the invisible barriers that
prevent minorities and women from being
promoted to top corporate positions

26. 3-26
Sources of Diversity in the Workplace
Figure 3.5

27. 3-27
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

28. 3-28
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

29. 3-29
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

30. 3-30
Workforce Diversity:
Capabilities and Disabilities
Disability Issues
 Providing reasonable accommodations for
individuals with disabilities
 Promoting a nondiscriminatory workplace
environment
 Educating the organization about disabilities

31. 3-31
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

32. 3-32
Workforce Diversity: Sexual
Orientation
Sexual Orientation Issues
 Employment and workplace discrimination
 Provision of domestic-partner benefits

33. 3-33
Critical Managerial Roles
Managers have more influence than rank-
and-file employees
When managers commit to diversity, it
legitimizes diversity efforts of others

34. 3-34
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.

35. 3-35
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.

36. 3-36
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

37. 3-37
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

38. 3-38
HP

39. 3-39
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?