1. 3-1 Lecture 2 Managing Ethics and Diversity S. Chan Head, Department of Business Administration http://home.chuhai.hk/~charmaine/ Charmaine@chuhai.edu.hk

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

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

9. 3-9 Suppliers and Distributors  Suppliers expect to be paid fairly and promptly for their inputs  Distributors expect to receive quality products at agreed- upon prices

10. 3-10 Customers  Most critical stakeholder  Company must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones

11. 3-11 Community, Society, and Nation  Community  Refers to physical locations like towns or cities or to social environment like ethnic neighborhoods in which companies are located  Provides a company with the physical and social infrastructure that allows it to operate

12. 3-12 Four Ethical Rules

13. 3-13 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?

14. 3-14 Some Effects of Ethical/Unethical Behavior

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 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

17. 3-17 Determinants of Ethics

18. 3-18 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

19. 3-19 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.

20. 3-20 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.

21. 3-21 Diversity Concerns  Glass ceiling  A metaphor alluding to the invisible barriers that prevent minorities and women from being promoted to top corporate positions

22. 3-22 Sources of Diversity in the Workplace

23. 3-23 Critical Managerial Roles  Managers have more influence than rank- and-file employees  When managers commit to diversity, it legitimizes diversity efforts of others

24. 3-24 Critical Managerial Roles Managerial Roles and the Effective Management of Diversity Type of RoleSpecific RoleExample InterpersonalFigureheadConvey that the effective management of diversity is a valued goal and objective LeaderServe as a role model and institute policies and procedures to ensure that diverse members are treated fairly LiaisonEnable diverse individuals to coordinate their efforts and cooperate with one another InformationalMonitorEvaluate the extent to which diverse employees are being treated fairly DisseminatorInform employees about diversity policies and initiatives and the intolerance of discrimination SpokespersonSupport diversity initiatives in the wider community and speak to diverse groups to interest them in career opportunities DecisionalEntrepreneurCommit resources to develop new ways to effectively manage diversity and eliminate biases and discrimination Disturbance handlerTake quick action to correct inequalities and curtail discriminatory behaviour Resource allocatorAllocate resources to support and encourage the effective management of diversity NegotiatorWork with organizations (e.g. suppliers) and groups (e.g. labour unions) to support and encourage the effective management of diversity