MGMT 320 MIDTERM

sheryl sandberg

COO of Facebook author of book "Lean In" •From childhood we have different gender-related stereotypes −Calling little girls "bossy" versus little boys •People stereotypically associate masculine traits with leadership −Female leaders who display masculine traits are often disliked •Women (even working women) still do most of the housework −On an average day, 18% of men did housework versus 48% of women •Change is happening but too slowly, especially at the top −By understanding these challenges, we are better able to confront them

disparate impact

Discrimination caused by policies that apply to everyone and seem neutral, but disadvantage protected groups when they are applied −Griggs v. Duke Power (1971) shifted burden of proof to the organization −Led the EEOC to establish the 80% rule in 1978: −Males: 20 hired/100 applicants = .20 −Females: 5 hired/50 applicants = .10 −.10/.20 = .50 −.50 is less than 4/5 −Adverse Impact is present

avoiding potential pitfalls

When should we be worried about consequentialism? −In some cases seems to authorize immoral acts such as murder, slavery, etc. if the benefits are high enough relative to the costs. −May be prone to self-interested calculation −Often hard to accurately "put a number" on some things When should we be worried about deontology? −Thinking in terms of absolutes makes compromise hard −What can we appeal to when our moral obligations conflict? −Often applies poorly to public policy −We can't spend an infinite amount of money to save someone

whistleblower

a person who exposes misconduct, alleged dishonest or illegal activity occurring in an organization might report to any third party -high level executive, media, government agency, etc

employment at will

a theory in law that an employment contract can be ended by either the employer or the employee without notice and for any reason "All may dismiss their employees at will be they many or few, for good cause, for no cause, or even for cause morally wrong without being thereby guilty of legal wrong" —a Tennessee judge in 1884 14 federal statutes limiting employment at will: •Race −Civil Rights Act of 1964 •Color −Civil Rights Act of 1964 •Religion −Civil Rights Act of 1964 •National Origin −Civil Rights Act of 1964 •Age (40 and over) −Age Discrimination in Employment Act of 1967 Federal Statutes Limiting Employment At Will •Sex −Equal Pay Act of 1963 •Pregnancy −Pregnancy Discrimination Act •Sexual Orientation and Gender Identity −Protected at the state level (Washington State) 19

lobbying

advocating a position to the government benefits: lobbyists can inform politicians and staff on complex issues (ex. the likely impact of a particular bill on employment in a sector or state) and ultimately help them make better decisions drawbacks/potential risks: the objectivity of the information lobbyists provide is often in question. organizations and groups with more power can wield more influence

diversity

any attribute people use to identify another person as different -can have both positive and negative effects -challenge is to leverage positive effects, and minimize negative effects positive effects: •More creativity and innovation •More adaptability •Less groupthink negative effects: •Worse communication •Less group cohesion •Increased conflict •Increased turnover

theory of moral unity

argues that business actions are judged by the general ethical standards of society, not by a special set of more permissive standards JC Penney

theory of amorality

argues that business should be conducted without reference to the full range of ethical standards in society Daniel Drew

dehumanization

arguing that the victims of an unethical action don't deserve basic human consideration "violent criminals don't deserve to be treated like normal human beings"

market for kidneys

arguments in favor: •Iran has had a legal market for kidneys since 1988. The average cost is $1,200 •If .06% of Americans sold a kidney, the wait list would disappear. •The Ayn Rand Institute and The Economist have argued in favor of a kidney market. arguments against: •"Offering direct or indirect economic benefits in exchange for organ donation is inconsistent with our values as a society. Any attempt to assign a monetary value to the human body, or body parts, either arbitrarily, or through market forces, diminishes human dignity." -National Kidney Foundation •Rich people buy their way to the front of the line •Incentives to induce poor to sell organs

stereotypes

assumptions we make about people on the basis of the groups they belong to

attribution of blame

blaming the victims for what befalls them "people who get mistreated have usually done something to bring it on themselves"

railroad industry example of business power

government (political): nationalized political participation; facilitated the dissemination of ideas (ex. suffrage) economic: revolutionized capital markets and centralized them in NYC cultural (social): shifted values from local to national; imposed business on Sundays, diners, hell on wheels technological: facilitated innovation nature (environment): transformed the landscape. centralized corporate power in cities. legal: inspired new regulations individuals: brought jobs, changed how people lived

political (government) trends

government activity has greatly expanded - larger social welfare roles - increased regulation of domestic industries governments are becoming open and democratic - public demands for corporate social performance - promote human rights, the environment, aesthetics, and ethics

historical forces (first ring)

historical forces: society-level shifts that influence the daily experiences of people and institutions - population growth - inequality - globalization - industrial revolution - technology - nation-states - dominant ideologies - great leaders - chance

manual mode of ethical decision making

identify decision alternatives --> use moral framework to evaluate alternatives --> make a decision intuition isn't enough! through repeated practice and feedback we: 1. increase our moral awareness -learn to recognize the moral content of an issue 2. improve our moral judgment -identify what is important to us, and reduce our biases 3. improve our moral communication -improve others' understanding of our perspectives

internal environment (3rd ring)

in a corporation, the internal environment consists of four groups: - employees - managers - board of directors - owners each is deeply affected by historical forces and the external environment

legal trends

includes legislation, regulation, and litigation 5 enduring trends: - growth in number and complexity of laws/regulations - expanding duties to protect rights of stakeholders - globalization has increased the complexity of the legal environment and expanded the application of voluntary codes - socially responsible behavior is often codified into law - law continues to evolve

inequality

inequality: the gap between the rich and the poor Gini Index: a measure of inequality - 0 = perfect equality (everyone has the same amount of wealth) - 100 = absolute inequality (a single person has all the wealth) sampling from least equal to most equal: 1. Lesotho 2. South Africa 29. China 41. US 60. UK 76. Japan 136. Sweden perception vs. reality (based on graph): - people underestimate actual inequality - people would prefer less inequality contrasting perspectives: - former secretary of labor robert reich says inequality is a problem - NYU law school professor richard epstein disagrees

informal vs. formal mentoring

informal mentoring: relationships are less effective because we tend to choose people who are from the same background as us −In one study, MBA graduates with white, male mentors received a $16,840 annual compensation advantage over graduates with minority or female mentors formal mentoring programs: can address these disparities

unemployment in the US

•As of March 2016, the unemployment rate is 5.0% •Average length of unemployment is 11.4 weeks (Median) •Unemployment compensation is based on previous pay. In Washington State the maximum weekly benefit is $664, and the minimum is $158. •The maximum time a person can collect regular unemployment compensation is historically capped at 26 weeks •Financial Effects −Workers earned an average of 30% less in their first post-layoff job −Losses remained at 20% even 20 years after the layoff •Psychological Effects −Permanent reduction in happiness and satisfaction levels −Higher incidence of stress, depression, heart attack, and stroke −Children of a parent who was laid off are 15% more likely to be left back a grade, and earn less money as adults than their peers.

business necessity

•Business Necessity: Companies can defend disparate impact charges if they can show that their hiring practices are related to the job and the business's performance. −Sometimes called a "bona fide occupational qualification defense" •The business necessity defense leads to a lot of gray areas −Can trucking companies enforce mandatory retirement ages for drivers? −Yes, because it is a potential safety issue −Can airlines enforce gender requirements for stewards? −No, mere customer preference is not enough to justify a BFOQ −Which employees at a church can be hired on the basis of religion? −It is a BFOQ for clergy and instructors, but not for secretaries and janitors

opt in vs. opt out

opt in system: -people have to actively sign up to register to donate organs after death -germany = 12% are organ donors opt out system: -organ donation will occur automatically unless a specific request is made before death for organs not to be taken -austria = 99% are organ donors

diversity task forces

particularly effective by increasing accountability and engagement

singapore system

people who choose not to be organ donors are given secondary access to organ transplants

population growth

population growth began to accelerate quickly in the late 1800s for reasons such as: - advances in water sanitation and medicine, which reduce deaths from infectious disease - mechanized farming, which expands the food supply future predictions: 9 billion people in year 2000 implications: - a widening wealth gap between high and low income countries - growing strain on the earth's ecosystems - demographic decline of the Western world - aging populations may slow GDP growth

technological trends

rapidly changing technologies influence our work in countless ways - ease of communication

managing relationships: the stakeholder model

reality: -right now, business is at the center of an array of relationships with persons, groups, and stakeholders (customers, employees, suppliers, financiers, communities, etc) -right now, some companies pay close attention to all of these relationships, others don't ideology: -businesses should attend to the well-being of all of their stakeholders

countervailing forces model

reality: right now, business and other forces directly influence each other, but non has primacy. basically argues for a middle ground between the first two models ideology: no associated ideology. just an attempt to describe things as they are

dominance model

reality: right now, business has too much power ideology: business power should be checked by more stringent government regulations and social forces Ralph Nader: activist, politician, and proponent of regulation

stakeholder model

reality: right now, business is at the center of an array of relationships with persons, groups, and entities called stakeholders (customers, employees, suppliers, financiers, communities, the government). right now, some companies pay close attention to all of these relationships, others don't ideology: businesses should attend to the well-being of all of their stakeholders

market capitalism model

reality: right now, government is too intrusive ideology: a laissez-faire, free market system promotes social welfare. when managers promote the interests of owners and shareholders, everyone wins. 1. government regulation should be limited 2. markets will discipline private economic activity to promote social welfare 3. the proper measure of corporate performance is profit 4. the ethical duty of management is to promote the interests of owners and investors Milton Friedman: economist at University of Chicago and proponent of FREE MARKETS - "only one responsibility of business -- to use its resources and engage in activities designed to increase its profits..."

moral justification

reframing unethical acts being in the service of a greater good "it's okay to spread rumors to defend those you care about"

moral disengagement

set of strategies we use to help us view our actions as morally acceptable, justification for actions restructuring behavior to appear less wrong: 1. moral justification 2. euphemistic labelling 3. advantageous comparison obscuring moral agency 4. displacement of responsibility 5. diffusion of responsibility 6. attribution of blame minimizing victims' distress 7. distortion of consequences 8. dehumanization

businesses exert power at two different levels

surface: businesses determine what is bought and sold, who is hired, who is fired, the commercials we watch, the price of goods beneath the surface: businesses can influence the deepest levels of society, from the structure of government to our cultural values

economic trends

the economic environment consists of forces that influence market operations interest rates, government policies, wages, currency fluctuations, commodity prices, overall economic activity, competitor's actions rising trade --> FDI

business power

the force behind an act by a company, industry, or sector - potential to significantly affect government and society

power

the force or strength to act or to compel another entity to act - individuals wield power through rewards and threats, expertise, formal positions, etc

ethics

the study of good and evil, right and wrong, and just and unjust how should I live my life? what sort of person should I strive to be? what values are important? what standards or principles should I live by?

business ethics

the study of good and evil, right and wrong, just and unjust actions in business

dominance theory

the view that business is the most powerful institution in society, because of its control of wealth - this power is inadequately checked and, therefore, excessive dominance theory is represented by two key notions: 1. power elite - a small group of people that controls the economy, government, and military - belong to exclusive organizations, set policies, and serve on overlapping boards - JP Morgan 2. asset concentration - the notion that this elite controls a disproportionate share of the world's wealth

pluralist theory

the view that business power is exercised in a society where other institutions also have great power - it is counterbalanced and restricted and, therefore, not excessive argues that corporate power is less concentrated - corporate power is bounded by the four forces shown in this image (government and laws, social values, economic stakeholders, social interest groups) Henry J. Kaiser

moral disengagement in tobacco industry

tobacco industry knows consumers were concerned about the health effects moral justification: −"There is general consensus as to the importance of maintaining high standards of information quality for scientific data. Such [regulatory] changes and their associated costs are reasonable only when the conclusions, and the scientific data upon which the conclusions are based, are sound. Otherwise, scarce public resources may be spent combating illusory concerns while actual problems go unaddressed" −Consulting firm for the tobacco industry, late 1990s

disparate treatment

unequal treatment of employees on the basis of race, color, religion, sex, or national origin -made illegal by the Civil Rights Act of 1964

euphemistic labeling

using sanitized language to rename harmful actions so they seem more benign "taking something without the owner's permission is okay as long as you're just borrowing it"

consequentialism in business

what are the net consequences of my actions? what consequences does this action have for each stakeholder group? how might the "good" be defined? in other words, what outcomes deserve my attention? how do the short term consequences of the action compare against the long term consequences?

intuition ethic

what is good or right is felt by intuition pros: easy, quick cons: doesn't always provide a clear answer, doesn't help to justify your opinion to others automatic mode: identify decision alternatives --> make a decision --> choose moral arguments to justify choice

other protected groups (social diversity)

•Other protected groups include −People over the age of 40 −People who are pregnant or managing related medical conditions −People with mental and physical impairments −People with potentially negative genetics −Sexual orientation −At the state level, includes Washington

organizational diversity interventions

•According to a recent HBS study, the most successful interventions focus on one or more of these three things 1. engagement -The best programs get employees and managers excited to participate, rather than making them feel forced into it or scolded. 2. contact -Direct, sustained contact across groups is one of the most proven ways to reduce bias 3. accountability -Simply put, people want to look good in the eyes of others. Systems that make leaders and employees accountable to their peers are particularly effective.

government intervention: minimum wage

$15 minimum wage benefits: •Employees receive a livable wage •Employees are more satisfied and therefore more likely to stay with an organization drawbacks/potential risks: •Total number of employees in a given organization might decrease •Prices might rise, affecting customer flow and the bottom line

traditional racism/sexism

Openly negative treatment of a group −If you ask me, I will tell you that I don't like to hire people from group X

seven realms of business power

PESTEL + impact on individuals government (political): lobbying, spread of democracy economic: control property, create jobs, raise standard of living cultural (social): shape cultural values, habits, and institutions technological: create new products; new technology causes deeper changes nature (environment): local pollution; global climate legal: win lawsuits, inspire new laws individuals: influence buying habits, shape daily life

discrimination

Prejudiced treatment of a person on the basis of the groups they belong to, and stereotypes about those groups

ImClone

CEO selling shares, insider trading diffusion of responsibility = daughter sold the shares distortion of consequences = didn't think it was a big deal because he was going to fix the issue with FDA euphemistic labeling = "small part of my holdings"

AIG Bonuses case

-In September 2008, the U.S. government provided the American International Group with over $180 billion to keep the company afloat -On March 17th, 2009 the company announced that it was paying out $165 million in executive bonuses, and that total company bonuses could reach $1.2 billion -Bonuses will give employees more money. -Bonuses will improve employee morale. -Bonuses will help the company retain and attract talent. But -The company will have a better public image if it withholds the bonuses. -Other companies will have a better chance of bailouts in the future if the company withholds bonuses. Deontology: What does deontology have to say about the AIG bonuses? -"Follow the Law" −It isn't illegal to pay out the bonuses •"Golden Rule" −If I was an employee, I would want to receive the bonus I was promised But •"Theory of Justice" −It's unfair to ask taxpayers to front the bill for employee bonuses. •"Disclosure Rule" −The bonuses wouldn't produce a good headline for the company Four Corners: CONSEQUENTIALISM In favor of giving bonuses: •Bonuses will give employees more money. •Bonuses will improve employee morale. •Bonuses will help the company retain and attract talent. Against giving bonuses: •The company will have a better public image if it withholds the bonuses. •Other companies will have a better chance of bailouts in the future if the company withholds bonuses. DEONTOLOGY In favor of giving bonuses: •"Golden Rule" If I was an employee, I would want to receive the bonus I was promised •"Follow the Law" It isn't illegal to pay out the bonuses Against giving bonuses: •"Theory of Justice" It's unfair to ask taxpayers to front the bill for employee bonuses. •"Disclosure Rule" The bonuses wouldn't produce a good headline for the company.

two approaches for mitigating your own risk of moral disengagement

1. the "mirror" approach -develop an understanding of what moral disengagement looks like, to help notice when it creeps into our decision-making -requires knowledge of the specific moral disengagement strategies -disengagement is most likely to occur when self-interest is at stake 2. the lifeline approach -get a fresh perspective from people you trust, who are removed from the situation -since they are removed, they will not have the same motives to disengage that you do

3 things we develop when learning about ethical decision making

1. increase our AWARENESS - learn to recognize the moral content of an issue 2. improve our JUDGMENT - identify what is important to us, and reduce our biases 3. improve our COMMUNICATION - improve others' understanding of our perspective

deep-level diversity

Differences in attitudes, beliefs, and values that are typically learned through extended interaction (Political beliefs, personality, working style, etc.)

surface-level diversity

Differences in overt, biological characteristics that are typically reflected in physical features (Age, race, gender)

blaming the victim in the tobacco industry

At a 1984 internal conference an industry scientist announced that the company's "stance on smoking in general is that it is a matter of adult choice. It follows that the number of cigarettes smoked is also a question of adult choice . . .The choice of number of cigarettes smoked rests with the consumer and we don[sic] directly influence this decision in either direction"

three pillars of economic, political, and social activity

BUSINESS: profit-making activity that provides products and services to satisfy human needs GOVERNMENT: structures and processes in society that authoritatively make and apply policies and rules SOCIETY: a network of human relations composed of values, institutions, and material things - values = enduring belief about which fundamental life choices are correct (ex. justice, compassion, loyalty). these shape the social contract between business and society

Kidney Case

Candidate A: -34 year old army veteran -exposed to chemical warfare agent which directly damaged his kidneys -slow/steady decline in renal failure -psychiatrist says he has shown improvement with PTSD and depression Candidate B: -62 year old engineer -career dedicated to developing alternative fuel sources -on the verge of a major breakthrough that could revolutionize fuel cell technology, for a cleaner environment Candidate C: -mother with four young children -on wait list for 5 months -high blood pressure and inconsistent with taking medicine -exact match Candidate D: -former drug addict -renal failure due to intravenous drug use -overcame addiction and dedicates himself to Narcotics Anonymous to help others Candidate E: -she developed renal failure due to kidney disease inherited from her father -real estate agent -donates millions to support polycystic kidney research and after the transplant is willing to convert her company to non-profit and donate all future profits to kidney research Candidate F: -44 year old rancher -kidney disease result from longstanding diabetes, on hemodialysis for over 5 years but now disabled -on transplant list for over 4 years and has seniority -kidney not an ideal match Candidate G: -15 year old daughter of an ambassador -straight A student and volunteers for learning-disabled children -renal failure caused by rare condition Candidate H: -donated kidney to brother when in his twenties -15 years later he developed same disease as brother -case is less severe but his one kidney is beginning to fail

Apple & Foxconn Case

Foxconn factory in Southern China, production of electronic goods for Apple and other companies, distraught workers (typically young workers from 18-24) regularly attempt and commit suicide Is Apple responsible for changing the working conditions at Foxconn? YES - it's their product/brand - they have enough volume to induce supplier change - they have the profit margins to pay more - someone needs to be an industry leader - we should have the same standard at home and abroad - customers will react negatively if they don't act NO - the purpose of business is to make money - it is a living wage for the workers - Foxconn is responsible for its employees, not Apple - customers deserve the best value - Apple has a duty to its shareholders - workers can make their own decisions If yes, what should Apple do differently? - more inspections - independent auditors - get involved in management of Foxconn - use another supplier in China - move production to another country - bring manufacturing back to the USA - reduce profit margin in order to pay Foxconn more - charge consumers higher prices Apple Supplier Responsibility - Apple audits its suppliers - suppliers/factories must follow Apple's Code and Standards

Case of Heidi and Howard: stereotyping

Heidi Roizen is a successful professional who develops, maintains, and leverages a vast personal and professional network in order to achieve her career objectives. Howard Roizen is a successful professional who develops, maintains, and leverages a vast personal and professional network in order to achieve his career objectives. *only difference is the name competent and effective = similar power-hungry, self-promoting, disingenuous = heidi received higher scores on these like, hire, enjoy working with = howard received higher scores on these Important lesson: -stereotyping isn't just about expecting different people to act differently -we often interpret the same actions very differently, depending on actor *Pantene tv commercial example

criteria for receiving organs

Historical: From the United Network for Organ Sharing (UNOS) •Efficacy −The likelihood that the transplant will be a success −2 points for each of six possible antigen matches, plus a bonus of up to six points if the logistics of getting the kidney to the candidate are favorable •Need −The lack of alternatives, such as dialysis −6 points for medical urgency •Disadvantage −Candidates who are difficult to match −1 point for each 10% of population against which the candidate has antibodies Today's criteria: Point system is no longer transparent •Length of Time on Waiting List •Antibody Level •Candidate is a Child / Age •Body Size •Medical Urgency •Blood-Type Compatibility •Location of Donor

deontology

Immanuel Kant locates morality in one's obligations and duties, which must be adhered to on principle focuses on standards of conduct regardless of the consequences we follow these standards of conduct for their own sake and without reference to their consequences duties and obligations come from: 1. the law -in most societies we have laws that we generally adhere to on principle 2. others' rights -rights and duties are two sides of the same . you have a duty to uphold my rights, and vice versa 3. our personal values -we adhere to many principles, such as the Golden Rule, impart because of our upbringings, religious traditions, etc pros: protects individual rights, morally appealing (more noble than consequentialism) cons: inflexible or impractical, requires prioritization, requires interpretation what are my obligations? what laws/regulations must I adhere to? what are the rights of each stakeholder group and, as a result, what are my duties to them? what personal standards of conduct must I adhere to?

modern racism/sexism

Implicit negative treatment toward a group −If you ask me, I will tell you that I treat different groups equally −If you test me, I will treat people differently in ways that I might not even be aware of

distortion of consequences in tobacco industry

In 1993, public relations firm Leo Burnett developed for PM "Project Brass," an action plan responding to the Environmental Protection Agency's 1993 report which classified second-hand smoke as a group A carcinogen. The first step was to create a "sense of doubt" about the EPA report, primarily by attacking the science as flawed, as shown here

advantageous comparison in tobacco industry

In a 1989 strategy document, Philip Morris (PM) executives recommended that PM "identify a strategy in risk assessment methodology that allows comparison of second hand smoke to other commonly found environmental agents such as those found in indoor air (volatile organic chemicals), foods (pesticides), and water (lead, fluorine). Design a communications package that illustrates the significant risks associated with everyday life that includes second hand smoke as a 'negligible risk'"

consequentialism

Jeremy Bentham and John Stuart Mill locates morality in the consequences of an action -the ends justify the means 1. utilitarianism = the greatest good for the greatest number 2. ends-mean ethic = the ends justify the means 3. proportionality ethic = weigh the good against the bad pros: maximizes good, impartial, provides a metric for social policy and moral conflicts cons: can be difficult to measure the outcomes you focus on, what about individual choice? are there no universal rights? what is a good consequence? -pleasure, beauty, material equality, political liberty

contrasting perspectives of inequality

Robert Reich (former secretary of labor): - says inequality is a problem Richard Epstein (NYU law school professor) - argues that income inequality can be a good thing Buffett Rule: - basically proposes that the rich should never pay less in taxes than the middle class, enacted by a minimum 30% tax rate on people making more than $1 million

Shell Case

Scramble: -world fumbles its response to the energy challenge -dwindling energy supply leads to price spikes and shortages, putting nations in competition with each other for access to fuels -politicians are pressured to maintain economic growth so they push the use of more coal and biofuels -action on climate change is postponed -rising use of biofuels fuels, slowing economies, extreme weather events, and shortages of energy/food cause political upheavals -in 2030 advances in energy efficiency and alternative sources bring energy shortages to an end -consensus on the need for a global greenhouse gas policy emerges -BUT 20 years have passed and keeping carbon dioxide in the atmosphere below 550 ppm, a level that threatens human well-being, will be difficult Blueprints: -the world is more prompt -as energy shortages emerge, a patchwork of responses appears in cities and regions around the world -new taxes/incentives promote energy efficiency, carbon markets develop -national governments act to harmonize policies, local actions bring calls by corporations for clarity and predictability in markets -with predictability in markets, investment flows to alternative energy sources -international cooperation grows -establishment of a global carbon market leads to international framework for reducing carbon dioxide emissions

gender wage gap

The overall gender wage gap is shrinking, but not as quickly as we might hope −Data by age group indicate that the gap is lower among younger generations of workers, but still persists.

ABC Marketing Case

Tom = intern at ABC Marketing Steve Smith = manager at ABC Marketing ABC Marketing= large player in the coupon and promotions industry, market leader Johnson Marketing = #2 in the industry Steve asks Tom to obtain the Johnson Coupon Trends report, which contains information about trends in the industry which is valuable information in determining strategies and promotions. -since no one at ABC could order the report (which costs $250), Steve wanted Tom to say he was a student and have it shipped to his Philadelphia address the dilemma: -relationship with boss and future connections he can make for him -legality? proprietary document? -could damage ABC's reputation if it got out -already agreed to do it

discrimination examples

callbacks for job applications −Researchers submitted résumés to help-wanted ads in Boston and Chicago −Each résumé was randomly assigned an African-American or a White/Caucasian name (e.g., Jamal Jones or Greg Baker) −Résumés with White names received 50% more callbacks than résumés with African-American names −A white name yields as much benefit as 8 years of experience Airbnb listings −Guests with distinctly African-American names are 16% less likely to be accepted than guests with distinctly White names Auditions for Orchestras −Early opposition to women in orchestras −How might this bias be addressed? −Percentage who advance to final round of auditions −Non-blind auditions: Men = 22.5%, Women = 19.3% −Blind auditions: Men = 20.2%, Women = 28.6% −Today, orchestras on average are 50% female −Blind auditions are part of union contracts, and even done without shoes salaries at Walmart Salary differences persist even though −Women have more seniority (4.47 years vs. 3.13) −Women quit less frequently −Women receive better performance evaluations

displacement of responsibility

ceding responsibility for unethical behavior to an authority figure "people shouldn't be held accountable for doing questionable things when they were just doing what an authority figure told them to do"

diffusion of responsibility

ceding responsibility for unethical behavior to an entire group "people can't be blamed for doing things that are technically wrong when all their friends are doing it"

yellow dog contracts

contract promising to not join a union before the 1930s, the Supreme Court strongly upheld the liberty of contract doctrine, which argued that government should not interfere with contracts made between employees and workers --> led to significant abuses like yellow dog contracts Norris-LaGuardia Act (1932): ruled that yellow dog contracts are unlawful National Labor Relations Act (1935): allowed employees to join unions and collective bargaining, allowing for agreements that require just cause for termination and arbitration when grievances are filed

social (culture) trends

culture: a system of shared knowledge, values, norms, customs, and rituals acquired by social learning the rise of multinational corporations implies a greater need to consider the impact of cultural differences on business operations

preventing moral disengagement

dan pink video: -what strategies might people use when they park in a handicapped parking space -placed photos of local handicapped people on the handicap parking sign -no one wrongly parked in spot

the changing nature of work

demographic change -growth is slowing -labor force is more diverse -labor force is aging technological change -JFK called automation "the dark menace of industrial dislocation" structural change -the agricultural sector is falling -the goods producing sector is falling -the service sector is rising competitive pressures -American workers are expensive, creating global competition reorganization of work -offshoring -outsourcing government intervention -labor regulation has grown -ex. $15 minimum wage

environmental trends

economic productivity in the modern era has: - depleted mineral resources - reduced forest cover - killed species - released molecules not found in nature - triggered climate change ex. air pollution

external environment (second ring)

external environment: proximal social contexts that influence business behavior PESTEL - government (political) - economy - culture (social) - technology - nature (environment) - law *focus on trends

dynamic environment of business

first ring = historical forces second ring = external environment third ring = internal environment

globalization

globalization: involves the integration of worldwide economies, societies, and cultures led by multinational corporations, globalization has increased economic activity and transformed cultures around the world

deontology rules

golden rule = do unto others what you would have them do unto you organization ethic = be loyal to the organization the principe of equal freedom = respect others' autonomy the rights ethic = respect others' rights the theory of justice = treat others fairly disclosure rule = test an ethical decision by asking how you would feel if your actions ended up in the newspaper (aka the Wall Street Journal test) the categorical imperative = act only according to principles that you could turn into a universal code of behavior

Walmart Case* need to write about it

government (political): lobbying, spread of democracy economic: control property, create jobs, raise standard of living cultural (social): shape cultural values, habits, and institutions technological: create new products; new technology causes deeper changes nature (environment): local pollution; global climate legal: win lawsuits; inspire new laws individuals: influence buying habits; shape daily life key players: - Elliot Petty = political activist working against Walmart through CBI - Tracy Gray-Barkan = LAANE leader for the Walmart case - Muhammad Nassardeen = head of recycling black dollars - Mayor Dorn = mayor of inglewood, allegedly received $40,000 from Walmart - Jarvis Johnson = political organizer at CLUE key organizations: - Coalition for a Better Inglewood (CBI) = activist organization founded to stop Walmart by UFCW veteran Ralph Franklin and Inglewood city councilwoman Judy Dunlap - Los Angeles Alliance for a New Economy (LAANE) = an advocacy organization focused on economic equality, community development, etc.; they are advisors to CBI epilogue: Wal-Mart has continued to struggle with protests against new stores −Wal-Mart proposed 1599 new stores from 1998-2005 −563 of these motivated protests (including Inglewood) −2/3 of the protests were successful in blocking stores •In response, the company has tried to adjust its approach −Gaining support from neutral or opposing parties −Backing federal policies −Customized concessions to the stakeholders •The company has received positive press in some areas −Won accolades for efforts to help Hurricane Katrina survivors in 2005 •And what of the Inglewood site? −In 2013 the Inglewood site was bought by Stan Kroenke, a former Wal-Mart board member and married to Ann Walton Kroenke of the Wal-Mart family, to build $3 billion stadium for the Rams football team. Rana Plaza collapse: On April 24th, 2013 an eight-story building, the Rana Plaza, collapsed in the Dhaka District of Bangladesh. 1,127 people died. It was the deadliest garment-factory accident in history. −Wal-Mart faced pressure to sign the Accord on Factory and Building Safety in Bangladesh, a five-year legally binding agreement that requires international retailers to provide factories with funds to maintain adequately safe buildings at a cost of $500,000 per factory. -As of today, more than 200 companies have signed the accord, including Benetton and H&M. -Most American companies did not sign, although some that have include Abercrombie, Fruit of the Loom, and American Eagle -American companies including Wal-Mart worried about high liability claims, do in part to the American legal system. They formed the Alliance for Bangladesh Worker Safety. -This alliance helped to establish safety standards, create new inspections and remediation programs, etc., working together with the Accord group

Sherry Hunt Case

key players: −Sherry Hunt: Vice President and Chief Underwriter at CitiMortgage −Connie: Sherry Hunt's direct supervisor at the beginning of the case −Richard Bowen: REL Business Chief Underwriter for Correspondent Channels and Connie's supervisor supporting cast: −Robert Rubin: Chairman of the Board −Finley Gibbs: Lawyer and trusted advisor to Hunt −Jeffery Polkinghorne: Citi executive three levels above Hunt Why didn't anyone else blow the whistle? There are many possible reasons, but here are four prominent ones: 1.Lack of moral awareness −Unethical behavior isn't as obvious in the moment as it is in hindsight −Physical and psychological distance from wrongdoing 2.Pressure from authority figures −Pressure to sign off on SOX −Quarterly memos constantly congratulating the company's growth −Polkinghorne even blatantly threatens her 3.Economic incentives to look the other way −Don't want to lose job −Bonuses depended on percentage of loans approved −Connie bragging about buying cars in cash 4.Moral disengagement −Tendencies to diffuse responsibility, distort consequences, etc. Who you might contact: INTERNAL •Executives at CitiMortgage •Someone else within CitiMortgage •C-level officers at Citi •CitiMortgage HR EXTERNAL •The Media •The Securities and Exchange Commission •The Department of Justice •The Federal Housing Administration Timeline: -Hunt reports the issues to CitiMortgage HR -HR does not follow up with Hunt -Hunt files a qui tam lawsuit against Citi with her attorney, Finley Gibbs -US Attorney Preet Bharara and DOJ join Hunt and Gibbs in the suit -There is no trial. Citi admits wrongdoing. A settlement is reached. (Hunt no longer works there, gets $$$) -Pandit steps down from his post as Citigroup's CEO -Das resigns from his post as Citi's CEO What did Sherry do right? 1. moral awareness = she took time to gather evidence, and carefully identified multiple courses of action 2. moral judgment = she decided to act in a way that was consistent with her values and likely to work 3. moral communication = her clear records allowed her to provide strong, persuasive evidence What should organizations do? 1. develop clear procedures for speaking up. make the chain of command clear, and ensure that the program is aligned with the company's values 2. frame speaking up as an act of loyalty - a sign of being good organizational citizen, rather than an act of betrayal key reasons only Hunt and Bowen stood up: -lack of moral awareness -pressure from authority figures -economic incentives to look the other way -moral disengagement

just cause for termination

labor union contracts provide additional protections -one of the main ones is "just cause for termination" Under the notion of just cause, an arbitrator asks the following questions to determine if it is appropriate to fire an employee: 1.Was the employee forewarned of the consequences of his or her actions? 2.Are the employer's rules reasonably related to business efficiency and performance the employer might reasonably expect from the employee? 3.Was an effort made before discipline or discharge to determine whether the employee was guilty as charged? 4.Was the investigation conducted fairly and objectively? 5.Did the employer obtain substantial evidence of the employee's guilt? 6.Were the rules applied fairly and without discrimination? 7.Was the degree of discipline reasonably related to the seriousness of the employee's offense and the employee's past record?

individual interventions: intervening for yourself and others

leaders: •Make an active effort to develop effective diversity initiatives in your organization. •Don't avoid conversations that feel awkward. •Become a mentor to someone from a different background than you. employees: •Play an active role in diversity initiatives - be an advocate. •Share office housework, such as taking notes during meetings and planning the office holiday party. •In meetings, help everyone's voice be heard.

advantageous comparison

making a behavior seem innocuous by comparing to an even worse behavior "considering the ways people grossly misrepresent themselves, it's hardly a sin to inflate your own credentials a bit"

which is more effective, mandatory training or voluntary training?

mandatory training: often leads to resentment and negative messaging voluntary training: increases support and buy-in across the organization

dynamic

marked by usually continuous and productive activity or change

distortion of consequences

minimizing the seriousness of the effects of one's actions "taking personal credit for ideas that were not your own is no big deal" "it is okay to tell small lies when negotiating because no one gets hurt"

social media firing

modern boundaries of at-will employment •In 2012, an employee at Apple was fired for writing a disparaging comment about the company on his facebook page. To justify the decision, Apple referred to a social policy they have in place that prevents employees from discussing Apple in a negative light while employed for them. For reference, the message: −"MobileMe f***ed up my timezone of rthe third in a week and woke me up at 3am? JOY!!" •Should businesses be allowed to fire employees for complaining about the company online? •The National Labor Relations Board has made a distinction based on "protected concerted activity", part of the National Labor Relations Act. This means that employees can complain to each other about a company, under protection of the National Labor Relations Act. −Companies can also get in trouble for overly broad social media policies that seem to prohibit this protected activity •However, a company can fire an employee for speaking poorly about the company openly on social media. −Typically on grounds such as violating the company's code of conduct, divulging confidential information,

when can employees be fired?

•Public Policy Exceptions −Since 1959, you can't fire an employee for complying with public policy (e.g. jury duty) in 43 states −Petermann v. International Brotherhood of Teamsters −Sabine Pilot Service v. Hauck •Implied Contract Exceptions −Since 1985, employers can't violate implied contracts (e.g. a promise not to be fired if a certain performance target is hit) in 38 states −Foley v. Interactive Data Corp. −But, companies typically work around this with written disclaimers, etc. •Covenant of Good Faith and Fair Dealing Exception −Since 1980, employers can't violate a covenant of good faith (fair and just treatment) in 11 states −Cleary v. American Airlines −Also fairly rare for companies to be found guilty

societal diversity interventions

•Since our nation was founded, the government has provided a first line of defence against discrimination •The circle of people afforded rights has expanded over time −13th Amendment (1865) - abolished slavery −14th Amendment (1868) - provided basic civil rights to all citizens −15th Amendment (1870) - prohibited race discrimination in voting −These amendments were followed by Jim Crow laws in the South that legalized segregation in schools, businesses, buses, trains, etc. −Plessy v. Ferguson (1896) −Brown v. Board of Education (1954) •The Civil Rights Act of 1964 is one of the most important pieces of anti-discrimination legislation ever passed.−Covers issues related to schools, access to government facilities, etc. −Title VII stated that it is unlawful to fire, refuse to hire, or otherwise discriminate against someone on the basis of race, color, religion, sex, or national origin −Also covers sexual harassment −Created the Equal Employment Opportunity Commission −All companies with 15+ employees must report their number of women and minority employees to the EEOC on an annual bases. Employees can file charges with the EEOC. −89,385 were received in 2015 alone

euphemistic labelling in tobacco industry

−"The human studies at the Clinical Pharmacology Department will be extended to establish the minimum dose of smoke nicotine that can provide pharmacological satisfaction for the smoker." −Tobacco company, 1980s −Bonus euphemism: In internal communications, industry scientists referred to the carcinogenicity of their products as "specific biological activity"

seven examples of diversity interventions

−Leadership from the top −Change in the organizational structure −Training programs −Mentors −Data collection −Policy changes −Reward systems