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Learning Objectives
Managing Ethics and LO1 How ethics is important for managers
Diversity
LO2 Managing diversity
Chapter 3
website

Mark Gosling
Office: D404 Phone: 5417
Email: markg@mail.nkuht.com.tw 3-2

The Nature of Ethics The Nature of Ethics

Morals Ethics
The thoughts and feelings that something is right The inner-guiding morals, values, and beliefs that
or wrong. you use to decide what is right or how to
behave.

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The Nature of Ethics The Nature of Ethics

Ethical Dilemma Ethics

Its not always easy to do the right thing Do ethics matter?

A dilemma is when you know the right thing to do, Who are ethics important for?
but it leaves you worse off. What do you do?

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Stakeholders and Ethics Types of Company Stakeholders

Stakeholders
The people and groups that supply a company
with its productive resources and so have a claim
on and stake in the company

Figure 3.1
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Stockholders Managers

People buy stock and invest in the company Have the right to expect a good return or
Want to maximize their return on investment reward
Want to ensure that managers are behaving
ethically Larry Ellison, CEO Oracle
$84.5 million

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Managers Employees

Have the right to expect a good return or Companies employ workers, and they need to
reward make a fair workplace

Is this fair?
Is it ethical?

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Suppliers and Distributors Customers

Suppliers expect to Distributors expect Most critical
be paid fairly and to receive quality stakeholder
promptly for their products at agreed- Company must work
inputs upon prices to increase efficiency
and effectiveness in
order to create
loyal customers and
attract new ones

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Community, Society, and Nation Ethical Decision Making

the towns or cities neighborhoods where the

company is located
Provides a company with the physical and
social infrastructure that allows it to operate

Figure 3.2
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Utilitarian Rule Moral Rights Rule

A decision that produces the greatest good for A decision that protects the rights of the people
the great number of people. affected by it.

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Justice Rule Practical Decision Model

A decision that distributes benefits and harms

among people and groups in a fair and equal Can you look at yourself in
way. the mirror afterwards?

Would it be okay for your

decision to be in the paper
for everyone to see?

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Practical Decision Model Why should managers behave ethically?

1. Does my decision fall within the acceptable The relentless pursuit of self-interest can lead to
standards that apply in business today? a collective disaster
2. Am I willing to see the decision
communicated to all people and groups
affected by it? tragedy of the commons
3. Would the people with whom I have a
significant personal relationship approve of
the decision?

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Why should managers behave

ethically?
Trust Reputation
Willingness of one high repute that
Some Effects of person or group to individuals or
Ethical/Unethical have faith or organizations gain
Behavior confidence in when they behave
another persons ethically
goodwill, even
though this puts
them at risk

Figure 3.3
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Diversity Concerns Workforce Diversity: Gender

Glass ceiling Women in the Work Place in Taiwan

The idea of an invisible barriers that prevents female workers 49%
minorities and women from being promoted to male workers 67%.
top corporate positions
still behind Japan, South Korea

female wages are only 81% of male workers

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The Increasing Diversity of the Workforce

Diversity Concerns
and the Environment
Diversity The ethical imperative for equal opportunity
Differences among people in age, gender, race, Effectively managing diversity can improve
ethnicity, religion, sexual orientation, organizational effectiveness
socioeconomic background, and
capabilities/disabilities The continuing bias toward diverse individuals

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Sources of Diversity in the Workplace Equal Employment Opportunity

Taiwan: Article VII of the constitution

All citizens of the Republic of China, irrespective
of sex, religion, race, class, or party affiliation,
shall be equal before the law.

Figure 3.6
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Equal Employment Opportunity in Taiwan Equal Employment Opportunity in Taiwan

Employment Services Act 1992 Gender Equality in Employment Act of 2002

employers cannot discriminate employees and job This law primarily addresses issues of gender
applicants on the basis of: discrimination in the workplace.
race, class, language, thought, religion, marital status,
party affiliation, age, birthplace, ones provincial/county
origin, gender sexual orientation, facial features,
appearance, disabilities, and former membership in
labor unions

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Equal Employment Opportunity in Taiwan Equal Employment Opportunity in Taiwan

Protection Act for Rights and Interests of aboriginal workers earn 65% of the wages of
(Physically and Mentally) Disabled Citizens Han-Chinese.
Article 38 of this law requires a private
organization that has 100 or more employees to
increasing discrimination for appearance in
hire physically or mentally disabled employees,
totaling at least 1% of the whole staff. the service industry

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Workforce Diversity: Capabilities and

Equal Employment Opportunity in Taiwan
Disabilities
Disability Issues
Providing reasonable accommodations for 59% of disabled people are unemployed
individuals with disabilities
Promoting a nondiscriminatory workplace
environment
Educating the organization about disabilities and
AIDS

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Workforce Diversity: Socioeconomic

Workforce Diversity: Religion
Background
Accommodation for Religious Beliefs Socioeconomic Background Issues
Scheduling of critical meetings Widening diversity in income levels
Providing flexible time off for holy days Single mothers and the working poor
Posting holy days for different religions on the Child and elder care
company calendar for working parents

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Critical Managerial Roles Forms of Sexual Harassment

Managers have more influence than rank-and- Hostile work environment

file employees
When managers commit to diversity, it
legitimizes diversity efforts of others
Telling lewd jokes, displaying pornography, making
sexually oriented remarks about someones
personal appearance, and other sex-related
actions that make the work environment
unpleasant.

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Sexual Harassment in Taiwan Steps to Eradicate Sexual Harassment

15-33% of women have experience or Develop and clearly communicate a sexual

noticed harassment in the work place. harassment policy endorsed by top
management
Use a fair complaint to investigate charges
of sexual harassment

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Steps to Eradicate Sexual Harassment Where Do Ethics Come From?

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

Figure 3.4

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Determinants of Ethics Ethical Organizational Cultures

Managers make ethical values and norms key

features of an organizations culture

Managers become ethical role models

Figure 3.4

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