MGM3103 Chapter 3 Managing Diversity And Ethics PDF

Managing and Ethics Diversity CHAPTER 3  Learning Objectives Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups. Explain why managers should behave ethically and strive to create ethical organizational cultures. Describe t...

Managing and Ethics Diversity CHAPTER 3  Learning Objectives Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups. Explain why managers should behave ethically and strive to create ethical organizational cultures. Describe the increasing diversity of the workforce and of the organizational environment. Explain the central role that managers play in the effective management of diversity. Understand why effective management of diversity is both an ethical and a business imperative. Understand the two major forms of sexual harassment and how they can be eliminated. The Nature of Ethics Ethical Dilemma: Ethics: A dilemma in which The internal guiding moral individuals must choose principles, values, and beliefs whether to take action that that individuals rely on to assess could benefit another person or interpret a situation, ultimately leading them to or group, even if it conflicts determine the “right” or with their own self-interest. appropriate course of action. The Nature of Ethics Ethics and the Law: Changes in Ethics Over Time: Society can lobby for laws, Neither laws nor ethics are which allow or prohibit certain fixed principles. behaviors. The group with the Beliefs change: most support can pass laws Interracial marriage. that align with their beliefs Marijuana use. and interests. 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. Access the text alternative for these images  Stakeholders and Ethics Stockholders Managers Shareholders seek to Managers are responsible guarantee that managers for using a company’s act ethically and do not financial capital and jeopardize investors' human resources to capital through actions that increase its performance may damage the and thus its stock price. company's reputation. They expect rewards for Their goal is to optimize investing their human their return on investment. capital in improving performance. Frequently managers juggle multiple interests.  Stakeholders and Ethics Employees Suppliers and Companies can Distributors demonstrate ethical Suppliers anticipate behavior towards their fair and timely employees by establishing payment for their an occupational structure contributions. that fairly and equitably Distributors expect to compensates them for their receive high-quality contributions. products at the prices that were agreed upon.  Stakeholders and Ethics Community, Customers Society, and Customers are the most Nations critical stakeholder. The physical spaces Company must work to where businesses are increase efficiency and situated. effectiveness in order to Towns, cities, or specific create loyal customers and social environments. attract new ones. Ethnic communities. A community offers the essential physical and social infrastructure that enables a company to Four Ethical Rules UTILIARIAN RULES MORAL RIGHTS RULE An ethical choice should aim to generate An ethical decision is one that best the maximum benefit for the largest group maintains and protects the fundamental or of individuals. inalieanable rights and privileges of the people affected by it JUSTICE RULE PRACTICAL RULE An ethical decision distributes benefits and An ethical decision is one that a manager harms among people and groups in a fair, feels confident in sharing with individuals equitable, or impartial way outside the company, as it aligns with what a typical person in society would consider acceptable. Access the text alternative for these images Four Ethical Rules Practical Rule A business decisions is probably acceptable on ethical grounds if manager can answer yes to each of these questions: Does my decision fall within the acceptable standards that apply in business today? Am I willing to see the decision communicated to all people and groups affected by it? Would the people with whom I have a significant personal relationship approve of the decision?  Some Effects of Why Should Managers Ethical/Unethical Behave Ethically? Behavior The unyielding chase for personal gain can result in a collective catastrophe when individuals begin to benefit from unethical behavior, as this tendency encourages others to follow suit. "Each farmer, motivated by self-interest, seeks to maximize the use of a shared resource by grazing their own cattle and sheep. However, when all farmers engage in this practice, they collectively overgraze the land, leading to its rapid degradation. Eventually, a strong wind may sweep away the exposed topsoil, causing irreversible damage to the common land. This relentless pursuit of individual gain, without regard for the well-being of society, ultimately spells disaster for Access the text alternative for these images both individuals and the community as a whole, as Why Should Managers Behave Ethically? TRUST: REPUTATION: Willingness of one person or Esteem or high repute that group to have faith or individuals or organizations confidence in another gain when they behave person’s goodwill, even ethically. though this puts them at risk. Sources of an Organization’s Code of Ethics Access the text alternative for these images Ethical Organizational Cultures Managers Ethics officer: Managers play a crucial Monitors an role in embedding organization’s essential ethical values practices and and norms into the procedures to be sure organization's culture. they are ethical. Managers serve as ethical role models, with their actions closely observed by their team members. 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, experience, physical appearance, capabilities, disabilities, and any other characteristic used to distinguish people. The Increasing Diversity of the Workforce and the Environment Diversity Concerns Glass Ceiling There is an ethical imperative for equal opportunity. A metaphor alluding to the invisible Effectively managing diversity can improve organizational barrier that prevents minorities and effectiveness. There is evidence that minority and underrepresented women from being promoted to top individuals continue to experience unfair treatment in the corporate positions. workplace as a result of biases, stereotypes, and overt discrimination. Sources of Diversity in the Workplace Access the text alternative for these images Effectively Managing Diversity Makes Good Business Sense The diversity of organizational members can be a source of competitive advantage. The recruiting of diverse employees must be followed up with ongoing effective management of diversity to retain those employees. Many organizations insist that their suppliers support diversity. Effective management of diversity is necessary to avoid costly lawsuits. Forms of Sexual Harassment HOSTILE WORK QUID PRO QUO ENVIRONMENT: Asking for or forcing an Telling lewd jokes, employee to perform sexual displaying pornography, favors in exchange for making sexually oriented receiving some reward or remarks about someone’s avoiding negative personal appearance, and consequences. other sex-related actions that make the work environment unpleasant. Steps to Eradicate Sexual Harassment Develop and clearly communicate a sexual harassment policy endorsed by top management. Use a fair complaint procedure to investigate charges of 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  han t yo u  Accessibility Content: Text Alternatives for Images © McGraw Hill LLC. 43 Types of Company Stakeholders - Text Alternative Return to parent-slide containing images. The cluster graphic has the company at the center. A type of company stakeholder is in each of the six circles that surround the center: employees, stockholders, managers, suppliers and distributors, customers, and community, society, and nation- state. 44 Four Ethical Rules - Text Alternative Return to parent-slide containing images. The cluster graphic has rules for ethical decision making in the center. Each of the four rectangles that surround the center describes one of the four ethical rules. The rules are moral rights rule, utilitarian rule, justice rule, and practical rule. Moral Rights Rule: An ethical decision should maintain and protect the fundamental rights and privileges of people. Utilitarian Rule: An ethical decision should produce the greatest good for the greatest number of people. Justice Rule: An ethical decision should distribute benefits and harm among people in a fair, equitable, and impartial manner. Practical Rule: An ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable. 45 © McGraw Hill LLC. Some Effects of Ethical/Unethical Behavior - Text Alternative Return to parent-slide containing images. Ethical behavior increases efficiency and effectiveness of production and trade, increases company performance, and increases national standard of living, well-being, and prosperity. Unethical behavior reduces efficiency and effectiveness of production and trade, reduces company performance, and reduces national standard of living, well-being, and prosperity. Sources of an Organization’s Code of Ethics - Text Alternative Return to parent-slide containing images. Societal ethics, professional ethics, and individual ethics all influence an organization’s code of ethics. Societal ethics are the values and standards embodied in a society’s laws, customs, practices, and norms and values. Professional ethics are the values and standards that groups of managers and workers use to decide how to behave appropriately. Individual ethics are the personal values and standards that result from the influence of family, peers, upbringing, and involvement in significant social institutions. Return to parent-slide containing images. Sources of Diversity in the Workplace - Text Alternative Return to parent-slide containing images. A circle is divided equally into sources of diversity in the workplace. The sources are age, gender, race, ethnicity, religion, sexual orientation, socio-economic background, capabilities or disabilities, education, experience, physical appearance, and other characteristics. Return to parent-slide containing images.