HO VAN HIEN (MBA)
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Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Chapter Managing Diversity Effectively Sexual Harassment 5 Ethics, Social Responsibility and Diversity HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment OBJECTIVES • After studying the chapter, you should be able to: • Describe ethical issues, the dimensions of social responsibility, and the characteristics of diversity in the workplace. • Identify the role managers play in: The monitoring and management of ethical activities. The monitoring and management of policy that reflects the interests of stakeholders in the social system. The management of diversity and equity among employees and customers. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment OBJECTIVES • Develop an understanding of how to use ethical practices to enhance the organization’s culture. • Recognize when there is a need to assist in the development of plans and policies that maximize an organization’s positive impact on the social system. • Create an awareness of the benefits coming from a positive and nurturing diversity environment. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment CHAPTER OUTLINE • Ethics and Stakeholders – Which Behaviors Are Ethical – Why Would Managers Behave Unethically Toward Other Stakeholders? – Why Should Managers Behave Ethically? – Sources of an Organization’s Code of Ethics • Social Responsibility HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment CHAPTER OUTLINE (Cont’d) • The Increasing Diversity of the Workforce and the Environment – Effectively Managing Diversity Makes Good Legal Sense – Effectively Managing Diversity Makes Good Business Sense – Why Does Unfair Treatment Continue? – Overt Discrimination HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment CHAPTER OUTLINE (Cont’d) • How to Manage Diversity Effectively – Steps in Managing Diversity Effectively • Sexual Harassment – Forms of Sexual Harassment – Steps Managers Can Take to Eradicate Sexual Harassment • Summary and Review HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Organizational Stakeholders – Shareholders, employees, customers, suppliers, and others who have an interest, claim, or stake in an organization and in what it does • Each group of stakeholders wants a different outcome and managers must work to satisfy as many as possible. • Managers have the responsibility to decide which goals an organization should pursue to most benefit stakeholders—decisions that benefit some stakeholder groups at the expense of others. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Ethics –Moral principles or beliefs about what is right or wrong • Ethics guide managers in their dealings with stakeholders and others when the best course of action is unclear. • Managers often experience an ethical dilemma in choosing between the conflicting interests of stakeholders. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Ethical Dilemmas: a situation where – a solution that maximizes personal interests has adverse affects on others – complex, broad based decision involving tradeoffs and integration of values – choosing the right thing is not easy HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Ethical Decision Models • Utilitarian Model – An ethical decision is one that produces the greatest good for the greatest number of people. • Moral Rights Model – An ethical decision is one that best maintains and protects the fundamental rights and privileges of the people affected by it. • Justice Model – An ethical decision is one that distributes benefits and harms among stakeholders in a fair, equitable, or impartial way. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Practical Guide to Ethical Decisions – Does the manager’s decision fall within usual and accepted standards? – Is the manager willing to personally and openly communicate the decision to all affected stakeholders? – Does the manager believe that his friends would approve? If the answer is “Yes” to all of the above, the decision is probably an ethical decision. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Ethical Vs Unethical Decisions • Ethical Decision – A decision that reasonable or typical stakeholders would find acceptable because it aids stakeholders, the organization, or society. • Unethical Decision – A decision that a manager would prefer to disguise or hide from other people because it enables the company or a particular individual to gain at the expense of society or other stakeholders. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Ethical Decisions & Dilemmas • A key ethical issue is how to disperse harm and benefits among stakeholders. – If a firm has been very profitable for two years, who should receive the profits? Employees, managers and stockholders all will want a share. – Should the firm keep the cash for future slowdowns? What is the ethical decision? – What about the reverse, when firms must layoff workers? – If stockholders are the legal owners of the firm, shouldn’t they alone decide these questions? HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Ethical Decisions & Dilemmas • Some other issues managers must consider. – Should a firm withhold payment to suppliers as long as possible to benefit the firm? • This will harm its supplier who is a stakeholder. – Should a firm provide severance pay to its laid off workers? • This will decrease the owners’ (the stockholders return. – Should goods be bought from overseas firms that employ children? • If they aren’t bought, the children might not earn enough money to eat. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment WHY BEHAVE UNETHICALLY? • Believe harm is indirect or insignificant relative to benefits • Unclear that behaviour is unethical – May be common practice • Poorly developed individual ethics • Pressure of the situation or superiors HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment WHY BEHAVE UNETHICALLY? • Managers should behave ethically to avoid harming others. – Managers are responsible for protecting and nurturing resources of the firm • Unethical managers run the risk for loss of reputation. – This is a valuable asset to any manager; reputation is critical to long term management success. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment SOURCES OF AN ORGANIZATION’S CODE OF ETHICS SOCIETAL ETHICS Values & standards society’s laws, customers practices Norms & Values ORGANIZATION’S CODE OF ETHICS DERIVES FROM INDIVIDUA ETHICS Personal values & standards Result from the influence of Family, peers, upbringing & Involvement in significant Social institutions PROFESSIONAL ETHICS Values & standards Managers & workers use to Decide how to behave appropriately Figure 5.1 HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment SOURCES OF THESICS • Societal Ethics – Standards that govern how members of a society are to deal with each other on ethical issues • Based on values and standards found in society’s legal rules, norm, and mores • Codified in the form of laws and societal customs • Ethical norms dictate how people should behave. • Societal ethics vary among societies. – Strong beliefs in one country may differ elsewhere. • Payment of bribes, an illegal act in Canada, is an accepted business practice in many countries. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment SOURCES OF THESICS • Professional ethics – Standards that govern how members of a profession are to make decision when the way they should behave is not clear-cut • Physicians and lawyers have professional associations that enforce these. • Individual ethics – Personal standards that govern how individuals are to interact with other people • Influenced by family, upbringing in general, and life experiences HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment PROMOTING ETHICS • Develop statements around ethics • Build a culture around ethics • Promote and reward ethical practices • Measure the results of ethical practices HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Social Responsibility – A manager’s duty or obligation make decisions that promote the welfare and well-being of stakeholders and society as a whole. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment APPROACHES TO SOCIAL RESPONSIBILITY Obstructionist Approach Low Social Responsibility Defensive Approach Accommodative Approach Social Responsibility Figure 5.2 Proactive Approach High Social Responsibility HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment APPROACHES TO SOCIAL RESPONSIBILITY • Obstructionist response – Managers choose not to be socially responsible. – They behave illegally and unethically; hiding and covering up problems. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment APPROACHES TO SOCIAL RESPONSIBILITY • Defensive response – Managers stay within the law but make no attempt to exercise additional social responsibility. – Managers place shareholder interests above those of all other stakeholders. – Managers argue that society should pass laws and create rules if change is needed. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment APPROACHES TO SOCIAL RESPONSIBILITY • Accommodative response – Managers acknowledge the need to support social responsibility and try to balance the interests of different stakeholders against one another. • Proactive response – Managers actively embrace the need to behave in socially responsible ways and go out of their way to learn about needs of different stakeholders. – They are willing to utilize organizational resources for both stockholders and stakeholders. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Diversity – Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities • Diversity Concerns and Issues – The ethical imperative for equal opportunity – The illegality of unfair treatment – Diversity’s positive effect on organizational performance – The continuing bias toward diverse individuals HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment SOURCES OF DIVERSITY IN THE WORKPLACE Capability disability Socio-economic background Age Gender Sexual orientation Race Religion Ethnicity Figure 5.3 HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment The Ethical Imperative to Manage Diversity Effectively • Distributive Justice – A moral principle calling for the distribution of pay, raises, promotions, and other organizational resources to be based on meaningful contribution that individuals have made and not personal characteristics over which they have no control. • Procedural Justice – A moral principle calling for the use of fair procedures to determine how to distribute outcomes to organizational members. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Managing Diversity Effectively Makes Good Legal Sense • Canadian Human Rights Act: against the law for federal employers to discriminate on the basis of race, national or ethnic origin, colour, religion, age, sex (including pregnancy and childbirth), marital status, family status, mental or physical disability (including previous or present drug or alcohol dependence), pardoned conviction, or sexual orientation • Employment Equity Act: Four protected categories – – – – Aboriginal peoples Persons with disabilities Members of visible minorities Women HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Managing Diversity Effectively Makes Good Business Sense • Benefits of a Diversity of Employees – a variety of points of view can improve managerial decision making – wider range of creative ideas – more attuned to the needs of diverse customers – expected/required by other firms HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Why Does Unfair Treatment continue? – Perception • The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them. – Schema • An abstract knowledge structure that is stored in memory and makes possible the interpretation and organization of information about a person, event, or situation – Gender Schema • Preconceived beliefs or ideas about the nature of men and women, their traits, attitudes, behaviors, and preferences HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Why Does Unfair Treatment continue? • Stereotype – Simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people • Bias – The systematic tendency to use information about others in ways that result in inaccurate perceptions • similar-to-me effect is the tendency to perceive others who are similar to ourselves more positively than we perceive people who are different. • social status effect is the tendency to perceive individuals with high social status more positively than we perceive those with low social status • salience effect is the tendency to focus attention on individuals who are conspicuously different from us. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Perception (Cont’d) • Overt Discrimination – Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization • Unethical and illegal • Violation of the principles of distributive and procedural justice • Subjects firm to lawsuits HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Steps in Managing Diversity Effectively – Secure top management commitment – Strive to increase accuracy of perceptions • Be open to other perspectives and willing to change views – Increase diversity awareness • Of own attitudes and biases and differing perspectives – Increase diversity skills • Learn about different communication styles HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment • Forms of Sexual Harassment – Quid pro quo • Asking or forcing an employee to perform sexual favors in exchange for some reward or to avoid negative consequences. – 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. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment Avoiding Harassment • Develop a zero-tolerance policy on harassment • Communicate the policy to all; pointing out that these actions are unacceptable. • Implement a complaint system to investigate allegations—if there are problems, correct as soon as possible. • Provide harassment training to employees and managers. HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment SUMMARY HO VAN HIEN (MBA) Ethics & Stakeholders Increasing Social Diversity of Workforce & Responsibility Environment Managing Diversity Effectively Sexual Harassment THE END HO VAN HIEN (MBA)
