Ethics and Diversity Management

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Questions and Answers

Which theory emphasizes generating the maximum benefit for the largest group when making ethical decisions?

Corporate Social Responsibility

Moral Rights Rule

Deontological Ethics

Utilitarian Rule (correct)

What is a key difference between ethics and law in a business context?

Laws are subjective and based on personal beliefs.

Ethics guide behavior beyond legal obligations. (correct)

Ethics always aligns with legal requirements.

Laws can change based on societal beliefs, while ethics are fixed.

In stakeholder theory, which group is considered the most critical stakeholder for a company?

Suppliers

Shareholders

Employees

Customers (correct)

Which of the following best represents a moral rights approach to ethical decision-making?

Ensuring no employee is unfairly treated or harmed Signup and view all the answers

What can influence changes in ethical beliefs within a company?

Changes in stakeholder expectations Signup and view all the answers

What does the utilitarian rule emphasize in ethical decision-making?

Producing the greatest good for the greatest number of people Signup and view all the answers

Which rule states that ethical decisions should be one that a manager feels comfortable communicating externally?

Practical Rule Signup and view all the answers

Which of the following is NOT considered a source of an organization's code of ethics?

Global economic trends Signup and view all the answers

How does unethical behavior affect national welfare according to the provided information?

It reduces the standard of living and prosperity Signup and view all the answers

Which characteristic is NOT mentioned as a source of diversity in the workplace?

Political affiliation Signup and view all the answers

What does the moral rights rule prioritize in ethical decision-making?

Maintaining and protecting fundamental rights and privileges Signup and view all the answers

Which of the following best describes the justice rule in the context of ethics?

Aims for equitable distribution of benefits and harms Signup and view all the answers

Which area of ethics is primarily influenced by family and peers?

Individual ethics Signup and view all the answers

What is a potential outcome of relentless individual gain without societal consideration?

Disaster for both individuals and the community Signup and view all the answers

How do managers contribute to an ethical organizational culture?

By embedding ethical values and serving as role models Signup and view all the answers

What primarily differentiates ethics from law in an organizational context?

Law governs behavior while ethics encompasses broader moral principles Signup and view all the answers

Which aspect of stakeholder theory emphasizes the reliance on mutual trust?

The goodwill between individuals and organizations Signup and view all the answers

What effect can effective diversity management have on an organization?

Increased effectiveness and improved team dynamics Signup and view all the answers

What does the metaphor 'Glass Ceiling' refer to in an organizational context?

An invisible barrier for underrepresented minorities and women Signup and view all the answers

What is one ethical concern regarding diversity in the workplace?

Equal opportunity is sometimes overlooked due to biases Signup and view all the answers

How can the behavior of managers influence their team's ethical views?

By acting as ethical role models that the team observes Signup and view all the answers

What best describes the term 'diversity' in a workplace setting?

Variations in demographics, experiences, and perspectives Signup and view all the answers

What is a significant ethical implication for organizations today regarding workforce diversity?

Prioritizing equal opportunity is crucial for an ethical workplace Signup and view all the answers

What defines the term 'ethical dilemma' as discussed in relation to ethics?

A situation where personal and collective interests might conflict. Signup and view all the answers

How do ethics differ from laws in the context of managing organizations?

Ethics are influenced by societal beliefs, while laws are determined by governmental authority. Signup and view all the answers

Which of the following statements best reflects the role of stakeholders in business ethics?

Stakeholders include groups with claims on resources and influence ethical practices. Signup and view all the answers

What is a primary reason managers are expected to behave ethically?

To maintain the integrity and reputation of the organization. Signup and view all the answers

What is meant by the increasing diversity of the workforce?

An expansion of the range of personal characteristics represented in the workplace. Signup and view all the answers

In the context of ethics and changing beliefs, which example illustrates a shift in societal norms?

The growing acceptance of interracial marriage. Signup and view all the answers

Which of these is a key ethical principle that managers should uphold?

Ensuring that all actions are in the best interest of stakeholders. Signup and view all the answers

What is the impact of effective diversity management on organizations?

It enhances both ethical practices and overall business performance. Signup and view all the answers

How can different forms of sexual harassment be effectively eliminated in organizations?

By actively promoting a clear policy against all forms of harassment. Signup and view all the answers

Which scenario best illustrates an ethical conflict involving stakeholders?

Management choosing to reduce costs by outsourcing labor without considering employee impacts. Signup and view all the answers

What does the Justice Rule emphasize in ethical decision-making?

Equitable distribution of benefits and harms Signup and view all the answers

Which aspect is central to the Practical Rule of ethical decision-making?

Ensuring decisions meet societal acceptance standards Signup and view all the answers

In the context of the ethical dilemmas described, what is a potential effect of individual self-interest?

Leads to collective catastrophe through overexploitation Signup and view all the answers

What is a key difference between ethics and laws as presented in ethical decision frameworks?

Ethics may guide behavior beyond legal obligations Signup and view all the answers

Which factor is NOT considered in the Practical Rule for ethical decision-making?

Potential financial gain from the decision Signup and view all the answers

What ultimately happens when all stakeholders act in their self-interest, according to the provided content?

It results in rapid degradation of shared resources Signup and view all the answers

How can managers determine if their decision aligns with ethical challenges?

By reviewing personal beliefs against business standards Signup and view all the answers

What ethical principle addresses the impacts of decisions on various people and groups?

Justice Rule Signup and view all the answers

Which of the following best describes the concept of stakeholder theory?

Considering all parties affected by company decisions Signup and view all the answers

Why is it critical for managers to behave ethically in decision-making?

It builds trust and safeguards the organization’s reputation Signup and view all the answers

Study Notes

Learning Objectives

Ethics help managers determine the right way to behave in interactions with stakeholders.
Ethical behavior by managers promotes ethical organizational cultures.
Workforce and organizational environments are increasingly diverse.
Managers play a key role in effective diversity management.
Effective diversity management is both ethical and crucial for business success.
Two main types of sexual harassment are described and how to eliminate them.

The Nature of Ethics

Ethical Dilemma: A situation where individuals must choose an action that benefits others, even if it conflicts with self-interest.
Ethics: Internal moral principles, values, and beliefs that guide individuals' decision-making.

Ethics and the Law

Society can lobby for laws that regulate or prohibit certain behaviors.
Groups with the most widespread support can pass laws reflecting their interests.
Laws and ethics are not static; beliefs can change over time, impacting standards and laws (e.g., interracial marriage, marijuana use).

Stakeholders and Ethics

Stakeholders: Individuals or groups who supply resources to a company and have a claim on it.
Employees: Companies should demonstrate ethical behavior towards employees by creating fair compensation structures.
Suppliers/Distributors: Suppliers anticipate timely payments, and distributors expect quality products at agreed prices.
Customers: Customers are vital; companies should focus on increasing efficiency and effectiveness to gain loyal customers and attract new ones.
Stockholders: Want to ensure ethical management to prevent reputational damage and optimize their returns.
Managers: Responsible for using resources to increase company performance and stock prices. Managers face competing interests.

Four Ethical Rules

Utilitarian Rule: Create the maximum benefit for the largest group of individuals.
Justice Rule: Distribute benefits and burdens fairly.
Moral Rights Rule: Protect the fundamental rights of people affected.
Practical Rule: Behave ethically in a way acceptable to others.

Why Should Managers Behave Ethically?

Trustworthiness builds on the willingness to have confidence in another individual or group.
A positive reputation enhances the esteem and standing of individuals or organizations.

Sources of an Organization's Code of Ethics

Societal ethics, professional ethics, and individual ethics influence organizational codes.

Ethical Organizational Cultures

Managers play a critical role in establishing ethical values and norms.
Managers act as ethical role models, and their actions impact their teams.
Ethics officers oversee and monitor practices and procedures to ensure ethical conduct.

The Increasing Diversity of the Workforce and the Environment

Diversity refers to differences among people due to age, gender, race, ethnicity, religion, sexual orientation, etc.
Diversity concerns include: ethical demand for equal opportunity, improving organizational effectiveness through diversity management, and the experience of unfair treatment for minority groups.
A "glass ceiling" is an invisible barrier to advancement for minorities and women.

Sources of Diversity in the Workplace

Many characteristics, including physical appearance, experience, education, socioeconomic background, religion, sexual orientation, and capabilities/disabilities, contribute to diversity.

Effectively Managing Diversity Makes Good Business Sense

Organizational diversity can produce a competitive advantage.
Companies must manage diversity effectively to retain diverse employees.
Supplier support for diversity can be beneficial, as can avoid legal issues.

Forms of Sexual Harassment

Quid Pro Quo: Exchange of sexual favors for job benefits or avoiding repercussions.
Hostile Work Environment: Actions or behavior that creates a hostile or offensive work environment based on sex.

Steps to Eradicate Sexual Harassment

Clearly communicate a sexual harassment policy supported by top management.
Develop fair complaint procedures.
Implement corrective actions when needed.
Educate all members on sexual harassment and best practices.

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Description

This quiz explores the essential role of ethics in management, emphasizing how ethical behavior fosters a positive organizational culture and effective diversity management. It also addresses the implications of ethical dilemmas and the relationship between ethics and law. Test your understanding of these crucial topics in today's diverse workforce.