1. Business & Society Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western, a part of Cengage Learning 1

2. Chapter 19 Employment Discrimination and Affirmative Action © 2012 South-Western, a part of Cengage Learning 2

3. Learning Outcomes © 2012 South-Western, a part of Cengage Learning 1.Chronicle the U.S. civil rights movement and minority progress for the past 50 years. 2.Outline the essentials of the federal discrimination laws. 3.Provide two different meanings of discrimination and give examples of how each might be committed. 4.Elaborate on issues in employment discrimination relating to race, color, national origin, sex, age, religion, sexual orientation, and disability. 5.Identify different postures with respect to affirmative action, explain the concept of reverse discrimination, and provide an overview of the Supreme Court’s decisions on affirmative action. 3

4. Chapter Outline The Civil Rights Movement and Minority Progress Federal Laws Prohibiting Discrimination Expanded Meanings of Employment Discrimination Issues in Employment Discrimination Affirmative Action in the Workplace Summary Key Terms 4 © 2012 South-Western, a part of Cengage Learning

5. Protected Groups Protected groups Those who have federal-level legal protection from discrimination based on race, color, religion, national origin, sex, age, or disability.  “Protected” groups are not protected from job loss: young minority men bore a disproportionate burden of the layoffs in the most recent recession. © 2012 South-Western, a part of Cengage Learning 5

6. Civil Rights Movement 1955: Rosa Parks refused to give up her bus seat. 1964: The Civil Rights Act was the effective beginning of the employee protection movement. The 1970s: The Women’s Movement The 1980s: Gains for women and blacks The 1990s: Some progress, but problems remained The 21 st century: New challenges and old problems © 2012 South-Western, a part of Cengage Learning 6

7. Federal Anti-Discrimination Laws 7 © 2012 South-Western, a part of Cengage Learning

8. Title VII of the Civil Rights Act of 1964 Under Title VII, it is illegal to discriminate in: Hiring and firing Compensation, assignment, or classification of employees Transfer, promotion, layoff, or recall Job advertisements Recruitment Testing Use of company facilities Training and apprenticeship programs Fringe benefits Pay, retirement plans, and disability leave Other terms and conditions of employment 8 © 2012 South-Western, a part of Cengage Learning

9. Age Discrimination in Employment Act of 1967 Protects workers 40 years old and older from: Arbitrary discrimination in hiring Discharge Pay Promotions Fringe benefits Other aspects of employment  Does not apply where age is a bona fide occupational qualification (BFOQ) When a company can legitimately argue that younger age is necessary and related to the position. 9 © 2012 South-Western, a part of Cengage Learning

10. Equal Pay Act of 1963 Prohibits sex discrimination in payment of wages to women and men who perform substantially equal work in the same establishment. Attention was revived in 2007 with the Ledbetter v. Goodyear Tire & Rubber Co. case. Lily Ledbetter alleged she had been paid less than males for equal work. In 2009, The Lily Ledbetter Fair Pay Act undid a Supreme Court decision that there is a 180 day statute of limitations on discriminatory pay charges. 10 © 2012 South-Western, a part of Cengage Learning

11. Americans with Disabilities Act An individual with a disability: Has a physical or mental impairment that limits one or more major life activities. Has a record of such an impairment. Or, is regarded as having such an impairment. Reasonable accommodation may include: Accessible facilities Job restructuring, work schedule modification, reassignment Acquiring or modifying equipment or devices; making adjustments to examinations; providing training materials, readers, or interpreters 11 © 2012 South-Western, a part of Cengage Learning

12. Americans with Disabilities Act (continued) The ADA is a work in progress 2003: The EEOC restricted the definition of a disability. An impairment is a disability only if it “substantially limits one or more of the employee’s major life activities (speaking and interacting with others, learning, thinking, concentrating, and working). 2008: Amendment broadened the definition of disability again. The existence of mitigating factors and a disease being episodic or in remission are no longer exclusionary factors. 12 © 2012 South-Western, a part of Cengage Learning

13. Equal Employment Opportunity Commission Equal Opportunity Commission (EEOC) Has five commissioners and a general counsel President appoints and Senate confirms Purpose: Makes equal employment opportunity policy Investigates employment discrimination charges/complaints Enforces anti-discrimination laws through conciliation or federal lawsuits against employers 13 © 2012 South-Western, a part of Cengage Learning

14. Expanded Meaning of Employment Discrimination Disparate treatment Using race, color, religion, sex, or national origin as a basis for treating people differently or unequally. Disparate impact Fewer minorities are included in the outcome of testing, hiring, or promotion practices than would be expected by numerical proportion. Four-fifths rule If a member of a minority group does not have a success rate at least 80 percent that of the majority group, the practice may be considered to have an adverse impact. 14 © 2012 South-Western, a part of Cengage Learning

15. Employment Discrimination 15 © 2012 South-Western, a part of Cengage Learning

16. Issues of Racial Discrimination Race discrimination Discrimination on the basis of ancestry or physical or cultural characteristics associated with race (skin color, hair texture or styles, or certain facial features). African Americans The number with seats on Fortune 500 boards is declining. High barriers to professional achievement. 16 © 2012 South-Western, a part of Cengage Learning

17. Issues of Racial Discrimination (continued) Hispanics Highly diverse population from many countries and different races. Dramatic population growth in the U.S. Worsening political and employment climate for Latinos/Hispanics in U.S. Asian Americans Have a possibly excessively positive stereotype as smart, disciplined, and good at math/sciences. Bimodal distribution: group of high-paid professionals and one of low-skilled and disadvantaged workers. Not well represented on Fortune 500 boards. 17 © 2012 South-Western, a part of Cengage Learning

18. Issues of Sex Discrimination Major issues for women 1.Getting into professional and managerial positions and out of traditional female- dominated positions. 2.Achieving pay commensurate with that of men. Comparable worth: Workers doing different jobs should receive the same pay if those different jobs have equal inherent worth. 3.Eliminating sexual harassment Quid pro quo harassment Hostile work environment 4.Being able to take maternity leave without losing jobs 18 © 2012 South-Western, a part of Cengage Learning

19. Pay Equity Possible causes of pay discrepancy for women Lost time and experience through extended maternity leave Left the workplace for longer periods of time Employed at lower paying jobs Women’s hesitation to negotiate Socialized not to negotiate from a young age Rewards for men can result in penalties for women 19 © 2012 South-Western, a part of Cengage Learning

20. Sexual Harassment Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when submission to or rejection of this conduct affects an individual’s employment, interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment. 20 © 2012 South-Western, a part of Cengage Learning

21. Types of Sexual Harassment Quid pro quo Something is given or received for something else. Hostile work environment The employee perceives a hostile or offensive work environment by virtue of uninvited sexually oriented behaviors or materials present in the workplace. 21 © 2012 South-Western, a part of Cengage Learning

22. Sexual Harassment Can occur in a variety of circumstances The victim/harasser may be a woman or a man. The harasser can be the victim’s supervisor, an agent of the employer, a supervisor in another area, a coworker, or a nonemployee. The victim does not have to be the person harassed, but could be anyone affected by the offensive conduct. Unlawful sexual harassment may occur without economic injury to or discharge of the victim. The harasser’s conduct must be unwelcome. 22 © 2012 South-Western, a part of Cengage Learning

23. Examples of Sexual Harassment Complaints Subjected to sexually suggestive remarks and propositions Sent on unnecessary errands where men can stare Subjected to sexual innuendo and joking Touched by a boss while working Co-workers “remarks” about a person sexually cooperating with the boss Suggestive looks and gestures Deliberate touching and “cornering” Suggestive body movements Sexually oriented materials around the office Pornographic materials in work areas Pressure for dates and sexual favors Boss’s cruelty after sexual advances are resisted A boss rubbing employee’s back while she is typing 23 © 2012 South-Western, a part of Cengage Learning

24. Title XI and Sexual Harassment  Bans sexual discrimination at schools. Burden of proof 1.The school must be aware of the sexual harassment. 2.The school must fail to take steps to stop it. 3.The harassment must deny access to an educational opportunity. 4.The harassment must take place in an educational setting. 24 © 2012 South-Western, a part of Cengage Learning

25. Pregnancy Discrimination Pregnancy Discrimination Act of 1978 Requires employers to treat pregnancy and pregnancy-related medical conditions the same as any other medical disability with respect to all terms and conditions of employment. Fetal protection policies Walmart class-action lawsuit  Pregnancy discrimination remains a significant issue for women in the workplace. 25 © 2012 South-Western, a part of Cengage Learning

26. Other Forms of Discrimination 26 © 2012 South-Western, a part of Cengage Learning

27. Affirmative Action Postures 27 © 2012 South-Western, a part of Cengage Learning Affirmative action Taking positive steps to hire and promote people from groups previously discriminated against.

28. Affirmative Action in the Workplace  Preferential treatment  Reverse discrimination  The Adarand Decision and strict scrutiny The program must meet a compelling government interest, and Be tailored narrowly to meet program or policy objectives. 28 © 2012 South-Western, a part of Cengage Learning

29. The Future of Affirmative Action Buying power of minority groups is increasing rapidly. Growing business interest in diversity programs and affirmative action. Bottom-line considerations Diversity practices remain potentially controversial. 29 © 2012 South-Western, a part of Cengage Learning

30. Key Terms Age Discrimination in Employment Act (ADEA) Affirmative action Americans with Disabilities Act (ADA) Bona fide occupational qualification (BFOQ) Civil Rights Act of 1991 Color bias Comparable worth Compensatory justice Disparate impact Disparate treatment Equal Employment Opportunity Commission (EEOC) Equal Pay Act of 1963 Essential functions Fetal protection policies Four-fifths rule Hostile work environment Major life activities Preferential treatment Pregnancy Discrimination Act of 1978 Protected groups Quid pro quo Reasonable accommodation Reverse discrimination Sexual harassment Strict scrutiny Title VII of the Civil Rights Act of 1964 Undue hardship © 2012 South-Western, a part of Cengage Learning 30