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What are employees' legal rights in the workplace?
Right to organize and bargain collectively.
Right to a safe and healthy workplace.
(Limited) right to a secure job.
Employment-at-will doctrine gives employees few security rights.
Some restrictions exist on terminating workers’ employment.
Union contracts may provide additional legal rights.
Right to privacy relative to off-the-job behaviors.
Right to blow the whistle when internal procedures failed to address acts detrimental to the public interest. (Discussed previously in Class 10.)
Right to not be discriminated against or harassed on the job.
What kind of company is SAS?
SAS is the leader in business intelligence software and services.
Workplace Rights: Are there ethical rights beyond what is legally protected? (ie- job security)
Right to job security- what is ethical?
The social contract is changing.
Permanent workers are treated differently than temporary (contingent) workers.
Socially responsible businesses seek a balance between commitment and flexibility within a basic context of fair dealing.
What about the right to privacy relative to on-the-job behaviors, e.g.,...what are some behaviors that are questionale when it comes to monitoring?
Electronic communications.
Romance in the workplace.
Employee drug and alcohol use.
Employee theft.
What are some of the questions companies must ask themselves under the category of monitoring the it ethical to...:
Monitor email, computer files, & Internet use?
Have policies against romantic relationships?
Require drug tests?
Administer honesty tests?
What are 6 duties expected of employees?
No drug or alcohol abuse. (Only if work performance is affected?)
No actions that would endanger others.
Treat others with respect and without harassment of any kind.
Honesty; appropriate disclosure.
Loyalty and commitment. (To what extent?)
Respect for employer’s property and intellectual capital.
Is downsizing unethical? What is the "yes" argument?
Larry Gross contends that downsizing violates the psychological and social contracts implicit in the employer-employee relationship since there is an implied sense of job security afforded the employeee as long as he or she is productively advancing the goals of the organization. Downsizing productive employees is a clear violation of this contract, and therefore, immoral.
Is downsizing unethical? What is the "no" argument?
Professor Joseph Gilbert analyzes the ethicality of downsizing through the application of 3 prominent approaches to the study of ethics: utilitarianism, rights and duties, and justice and fairness. Gilbert concludes that, with one notable exception, downsizing is an ethically valid and morally responsible corporate behavior.
What are 3 examples of downsizing in Centre County?
What kind of business was each one?
Details for each?
Murata Electronics:
Electronic chip manufacturing in Centre County for over 40 years
Laid off last 300 workers; had 1,300 workers here 5 years ago
Transferred production to China; staff functions to GA

Rutgers Organics:
Chemical manufacturing in Centre County for 45 years
Cited competition from China
Laid off all 65 manufacturing workers; will consolidate production in GA

Cathode ray tube t.v. glass manufacturing in Centre County
Could no longer compete using domestic production of old, standardized product
Laid off last 1,000 local manufacturing workers and sold machinery to Chinese company
What was the severance pay exercise set-up?
Your company is laying off employees to stay competitive and moving production to China.
You currently employ:
500 hourly manufacturing line employees (average $25,000/year) with an average of 10 yrs. seniority.
100 salaried management personnel
($40,000- $200,000 per year; average $80,000/ year) with an average of 10 yrs. seniority.
The local economy is not that big or that healthy, so there’s a fairly small chance of your employees finding comparable jobs in the area anytime soon. Assume you are not legally required to offer any compensation.
How much cash compensation will you give to the hourly production workers for severance?
How much cash compensation will you give to the management personnel for severance?
About how much will your severance pay package cost the company?
When it comes to workplace diversity, what are the primary dimensions and secondary dimensions of diversity?
Primary: age, ethnicity, gender, mental or physical abilities, race and sexual orientation
Secondary: such characteristics of communication style, family status, and first language.
What is the technical definition of diversity?
Workplace diversity?
Diversity refers to variation in the important human characteristics that distinguish people from one another.
Workplace diversity, then, is diversity among employees.
What are the four forthcoming trends in workforce diversity?
1- more women are working than ever before
2- immigration has profoundly reshaped the workforce
3- ethnic and racial diversity is increasing
4- the workforce will continue to get older
What are participation rates?
the proportion of women, or a specific differentiating factor, in the workplace
What is the pay gap?
What is occupational segregation?
Women and persons of color on average receive lower pay than white men do.
Occupational segregation refers to the inequitale concentration of a group, such as minorities or women, im particular job categories. (ex: a large percentage of Hispanics work in several low-paid occupation and therein their pay gap is reflected). Many observers believe that the pay gap persists, in part, because of occup segregation.
What does the glass ceiling refer to when talking about workplace diversity?
An invisible barrier that blocks women and minorities from holding the powerful positions within a firm.
WHat is being referred to when stated "business ownership as a pathway to success" when it comes to workplace diversity?
Many women and minorities are bypassing the glass ceiling by beginning their own businesses. Studies show that women and minorities have the same chances at success in starting their own business as white males.
What is the challenge and what is the opportunity in workplace diversity?
The opportunity refers to equal employment opportunities.
- discrimination based on anything but skills etc is prohibited.
-gives an employers an opportunity to do away with workforce inequalities
The challenge comes with sexual and racial harrassment
What is the role of the US government in workforce diversity?
Promote equal employment opportunity:
Prohibit discrimination based on race, color, religion, gender, national origin, disability, age, pregnancy⬦
In hiring, promotion, job classification and assignment, compensation, & other conditions of employment.
Prohibit sexual and racial harassment.
What can businesses do when it comes to diversity policies and practices?
Adopt practices to ensure compliance with laws: zero-tolerance policy, complaint procedure, commitment to act quickly.
Use diversity programs to benefit from diversity through goal setting, training, recruitment, mentoring, career planning, monitoring progress (e.g.,diversity councils).
Address work-life balance issues
What are some individual decisions under workforce diversity?
Where will you work?
How will you work with and manage others?
How will you react to challenging situations for yourself or others?
How will your Penn State experience infuence your readiness for a diverse workplace?
What did David A.Thomas' research study: “Racial Dynamics in Cross-Race Developmental Relationships” do?
Subjects: 22 cross-race (African-American and white) pairs of junior and senior professionals and managers in supportive work relationships.
Research question: How does the strategy for dealing with racial difference affect the kind of relationship that develops?
Method: Separate interviews with both parties.
What were the two Types of developmental work relationships David A Thomas find in his research study?
Sponsor-protégé (11/ 22 pairs) : Provides instrumental career support such as advocacy for promotions, feedback and coaching.
Mentor-protégé (11/ 22 pairs): Provides psychosocial support and friendship along with instrumental career support. Involves significant emotional involvement.
What were the 2 different strategies Thomas found that the 2 different developmental work relationships used to deal with racial differences?
-Denial and Suppression
-Direct Engagement
What is the denial and suppression strategy? What are the agreements therein?
Both parties agreed race was not discussed. For example:
Senior person claimed race had no relevance; protégé described race as a major factor affecting his or her organizational experience.
One or both parties described having explicitly chosen not to discuss race for fear it might harm the relationship, the other person, or themselves.
Explanation of why race was not discussed included the belief that one or both parties were not comfortable discussing race or capable of understanding it.
What is the direct engagement strategy? What are the agreements therein?
Both parties agreed that race was openly discussed.
Parties described actual conversations in which they openly discussed race.
Evidence that open engagement was a pattern of addressing race rather than a one-time occurrence.
Both parties could describe the influence of race on the relationship.
Neither party described the conversations about race as coerced, manipulated, or superficial.
Only when both parties preferred________ did the more supportive mentor-protégé relationship develop.
the same strategy
What was the Complementarity of the Denial and suppression strategy?
Choice of strategy mutually satisfying and validating for each party.
Lack of discussion of race not seen as a relationship deficit.
Parties viewed racial difference as a negative factor that, if raised, was likely to do more harm than good.
What was the Complementarity of the Direct engagement strategy?
Parties viewed their racial difference as a positive aspect of the relationship.
Frequently expressed a commitment to each other and to the idea that racial diversity was important for the organization.
The senior party took action to help the African-American protégé cope with racism in the environment and to neutralize its effects.
What implications did Thoman find for diversity in work relationships?
There is not one best way to manage racial diversity.
The racial perspectives of the parties are critical.
The strategy chosen was always consistent with the preference of the senior party, regardless of race or gender.
In direct-engagement relationships, the senior person was consistently the first to instigate a sensitive discussion of race.
The strategy developed fairly early in the relationship and didn’t tend to change over time– though individual strategy preferences did change over time.
Gender and age differences may also affect the strategy chosen.
Findings may be specific to African-American-white relationships in the U.S.
What happened in the Steve Lewis Case?
Steve's boss wanted him to attend a meeting of which he did not specialize in solely for his race. It would further his career but it may also compromise his dignity.
What did Steve do?
“He said he felt honored to be asked but that he wanted to play a role in the presentation.
He was willing to spend every minute of the next 30 hours in preparation.
When asked why this mattered, he said nothing about how he was chosen, just that he wanted to earn his place on the team.
They reluctantly agreed and assigned him a minor part of the presentation that required some analysis with which he had worked.”
Why was this a difficult decision for Steve?
“Not whether to be ethical, but how to be ethical. Has to choose between right and right: between self-respect and loyalty.”
“Competing pull of responsibilities to his employer, its shareholders, to friends and his mentor, to himself, to his parents, and to his ideals.”
“Playing in the big leagues and just learning the rules of the game, didn’t want to make a naïve mistake.”
WHy does Badaracco see this a s defining moment for Steve Lewis?
“Steve’s decision would reveal something important about his character, values, and basic commitments in life.”
“His decisions and actions would shape his character, as well as his view of himself and the world- perhaps significantly.”
What ended up being Steve's compromise?
“At times, he wished he had said something or stood up for his beliefs- and he hoped that he would do so on future occasions, once he had established himself. But, to do this, he felt he had to pick his battles.”
What are worker-friendly workplaces? What are the benefits of worker-friendly workplaces?
Businesses that support both men and women in their efforts to balance their work and non-work lives.
Benefits for companies: greater productivity, loyalty, and commitment.
Through benefits for workers: assistance with child and elder care; flexible work arrangements; convenience benefits at the workplace; recognition of value of balance.
What is a corporation we looked at that is very worker friendly? What kind of work are they involved in?
What companies in PA are some of the best to work for?
Vanguard Group (# 60)
East Penn Manufacturing (#79)
IKEA North America (#96)
Best small & medium companies in PA
Analytical Graphics Inc. (AGI) (#1)
What are some of the complimentary perks of AG?
What are some of the services on site for a nominal fee?
Complimentary perks
Catered breakfast, lunch and dinner daily
On-site exercise and laundry facilities
Stocked kitchenettes
Services on site for a nominal fee
Oil changes
Dry cleaning
Massages and haircuts
What kind of business is Donald Hamer in? WHat is the name of his business?
State of the Art, Inc.
manufactures microelectronics components
What are the categories under relativism vs. universalism?
cultural relativism
ethical imperialism
ethical imperialism
What are the following:cultural relativism
ethical imperialism
ethical imperialism
Cultural relativism: what’s right elsewhere is always right; there are no absolute rights and wrongs. (“When in Rome…”)
Ethical imperialism: what’s right at home is right everywhere else; our standards are absolute.
Ethical universalism: some actions are right or wrong anywhere; absolute standards.
What are Donaldson's 3 guiding principles? What do they do?
Respect for core human values, which determine the absolute moral threshold.
Respect for human dignity (The Golden Rule)
Respect for basic rights (e.g., health)
Good citizenship (improve institutions; protect environment)
Respect for local traditions: moral free space.
Belief that context matters.
Level of economic development
Cultural traditions

They help find a balance between the extremes of ethics.
What are the questions Donaldson says to ask about questionable practices?
Would it be acceptable at home at a similar stage of economic development?
Is it possible to conduct business another way?
Does it violate a core human value?
As with individual decisions, sometimes companies have to walk away.
What is the definition of a bribe?
What is bad about a bribe?
What does the US Foreign Corrupt Practices Act do?
HOw is there a thin line between gifts vs. bribery...and when/where is it accepted?
What helps to define when the line is
Bribe: Payment, often to a government official, to facilitate a transaction.
Common in many countries, but illegal in most.
Undermines market efficiency and predictability, corruption hurts the economy and the people.
U.S. Foreign Corrupt Practices Act (FCPA)
Prohibits paying government officials to get business.
Permits routine “grease payments” within limits.
Gift vs. bribery
Japanese tradition of gift exchange- limited in scope and intention.
Companies need to provide clear rules.
Motorola: Gifts may be acceptable in some circumstances if the benefit is for the company, not the individual.
International efforts to set standards (OECD treaty, UN Global Compact)
What is the Egregian Justice Case? (What happened in it?)
A manager working abroad in "Egregia" finds a worker stealing and thus calls the police as company policy. The police summon the worker and then shoot him dead.
What are some areas in the global context where business and government must work together?
Imports (protect consumers; businesses)
Exports (protect national interest)
Bilateral or multilateral agreements (international trade; global resources)
Fair competition at home vs. global competitiveness
Lack of common competition polices
HOw do businesses and employees work together in the global context? Fair Labor Standards?
Fair Labor Standards- idea of universal standards for working conditions.
What is a fair wage? What working conditions are fair?
Are companies responsible for subcontractors?
How best to monitor and enforce standards?
Codes of conduct: company, industry, international.
HOw do businesses and consumers work together in the global conext? What is the argument for Bottom of the Pyramid (BOP) markets?
Argument for Bottom of the Pyramid (BOP) markets
Global economic advancement (and world peace?) require MNCs to invest in the world’s poorest markets.
MNCs can enhance their own prosperity in the process.
What is some untapped potential in the global market?
4 billion poor people have huge aggregate buying power.
Lowering of barriers to serving these markets: political reform, openness to investment, access through technology.
Big companies can provide lower cost, higher quality goods and services than currently available.
HOw do the business case and the case for CSR overlap?
Revenue growth: Latent demand for low price and high quality provides potential for new sales and rapid growth.
Reduced costs: Cost savings for companies from lower wages, different business models.
Innovation: Creative approaches can translate to developed markets.
Corporate social responsibility: Motivates employees; Applies resources to demonstrate market-driven approach to huge problem of poverty.
What company was the Egregia case modeled after?
Motorola’s stated values:
Constant respect for people.
Uncompromising integrity.
What is outsourcing?
What is offshoring?
What is a sweatshop?
Outsourcing: Hiring another company (the subcontractor) to handle part of your business system, for example manufacturing.
Offshoring: Moving part of your business to another country, by hiring subcontractors or by investing in your own facilities there.
Sweatshop: Factory where employees work long hours for low pay, often in unsafe and/or abusive conditions.
What is the Nike Strategy example when it comes to Global Business Ethics and Sweathshops?
Nike is a U.S.-based company that does its own research & development (R&D), marketing, and some retailing of athletic shoes and apparel.
From the beginning, it has subcontracted almost all production of shoes and apparel to companies in low wage countries.
Initially it claimed that working conditions in subcontractor factories were not its responsibility.
After pressure from activists and consumers it changed its policies to actively set and monitor labor standards.
Video excerpt from “Rich World, Poor Women” PBS report (Sept. 2003): Case of closed factory in Thailand.
Why was the Thai factory closed?
Was it unethical or socially irresponsible to close the factory?
Why didn’t the Thai government
-becauses the company was not being fair to its employees and they striked
-yes; because they didn't help their employees find other jobs
-the government didn't respond to the protesting workers because the businesses that are operating in their country are very important to their economy
Are sweatshops unethical?
If yes, why?
Duty to respect the human dignity of the workers.
Right to physical and economic well being.
Immoral coercion through fear of job loss.
Duty to inform workers of safety hazards.
Moral obligation to pay a living wage.
Workers bear the costs of expensive marketing, high executive compensation, and large shareholder profits.
MNEs have the economic power, management expertise, and technical knowledge to affect how their suppliers treat workers.
At a minimum, MNEs are responsible for not violating local laws.
Union view: “It is especially galling when American workers lose jobs to places where workers are really being exploited.”
What is the alternate view on sweatshops...that is, what is the case FOR sweatshops?
Sweatshops are a necessary evil to reduce poverty long term.
Bad job is better than no job.
Low-wage factories are the steppingstone to economic development.
Imposing higher wages or better labor standards than the market demands will result in unemployment and actually increase poverty.
What is The business case for eliminating sweatshop conditions?
Higher wages raise productivity and loyalty of workers.
Bad publicity hurts the company’s reputation with consumers and investors.
Unusual now for a company to deny responsibility. Most are working to set standards and monitor compliance.
HOw do companies who use sweatshops, or how do the sweatshops themselves take advantage of the system?
Keeping a second set of books (payroll records and time sheets) to show compliance with overtime hours and pay.
Tutoring workers and managers on how to answer auditors’ questions.
Shifting work to their own subcontractors or hidden back rooms not seen by auditors.
Consulting businesses have emerged in China to help companies pass audits.
What is The subcontractor’s perspective when it comes to sweatshops?
“Given the fierce competition in China for foreign production work, we can’t ask Nike to increase our price, so how can we afford to pay the higher salary?”
“By reducing profit margins from 30% to 5% over the past 18 years, Shoetown has managed to stay in business and obey Nike’s rules.”
“But we regularly lose skilled workers to rival factories that break the rules because many workers are eager to put in longer hours regardless of whether they are paid overtime.”
MNC’s acknowledge deception is a problem. What are they doing to respond?
FLA advocates a single set of standards to simplify audits for subcontractors.
Fair Factories Clearinghouse pools social-compliance information.
Wal-Mart is getting more aggressive in its monitoring (13,600 reviews of 7,200 factories last year, resulting in banning 141 factories for serious infractions.)
Sears and Home Depot work with suppliers willing to improve.
Nike is trying to streamline methods of designing shoes and placing orders, and helping suppliers with efficient production techniques to reduce the need for overtime.
Challenge: No real unions in China and local authorities often don’t enforce national laws on minimum wage and overtime pay.
What is WalMart's strategy?
low costs- low prices
What is the customer view of part of their strategy?
Everyday low prices
Multiple store formats
Wide selection including name brands
Innovative merchandising
Customer-friendly store environment
How does the Low-cost strategy make it possible for walmart to exist? How does the low-cost strategy work?
Motivate suppliers
Lean & efficient operations; attention to detail
State-of-the-art technology in SCM & operations
Cultural values: hard work & frugality; constant improvement; involve “associates”
Why is Wal-Mart admired?
High growth and high profits (It’s a winner!)
Over $300 billion sales in 2006. (#1 or #2 in the world in revenue size.)
As big as Home Depot, Kroger, Target, Costco, Sears, and Kmart combined.
Investors make money.
Suppliers make money. (Win-win savings; integrity)
Employees have jobs: Largest private employer in the world. (1.8 million direct employees; 3.5 million indirect).
Consistently delivers on low price promise.
93% of U.S. households shop at least once/year.
Each household saves $2000/ year on average.
Relentless pursuit of efficiency and innovation.
Recognized for diversity in employment.
Pressures vendors for more environmentally friendly products and packaging.
Largest corporate contributor to charity in the U.S. ($200 million in 2005).
Recognized for efficient relief efforts for Katrina victims; $15 million donated.
Why is Wal-Mart criticized?
Model for taking advantage of workers
Low wages & benefits are contagious.
Discriminates against female employees in pay and promotion.
Forced unpaid overtime; other labor violations.
Sourcing from China costs U.S. jobs & uses sweatshop labor.
Should know cleaning subcontractors hire illegal immigrants.
Aggressively anti-union.
Hurts other companies, communities and governments
The health care system has to pick up the costs of uninsured employees.
Big-box stores are ugly; create sprawl and hurt local merchants.
Imposes its conservative cultural values in merchandise choices.
In short: Too big and powerful. Distorts markets.
An employee can legally be fired for:
A. Developing a disability not present when hired
B. Referring to coworkers in an internal e-mail as "backstabbing bastards."
C. Cooperating with the government for investigating crime
B. Referring to coworkers in an internal e-mail as "backstabbing bastards."
According to Job Gilbert, whether or not downsizing is ethical depends on:
A. The health of the company at the time
B. The percentage laid off
C. The laws of the state
D. Job performance
A. The health of the company at the time
The proportion of women in the US labor force increased from ____% in 1955 to ___% in 1985 to ____% in 2001.
A. 20, 36, 72
B. 35, 56, 65
C. 36, 55, 60
D. 28, 49, 67
C. 36, 55, 60
Possible causes of the pay gap include:
A. occupational segregation
B. affirmative action
C. equal employment opportunity
D. Sexual harrassment
A. Occupational Segregation
What two qualities was Steve Lewis facing to compromise?
A. Love vs. hate
B. Integrity vs. livelihood
C. Self-respect vs. loyalty
D. Upbringing vs. future
C. Self-respect vs. loyalty
Worker-friendly workplaces benefit:
A. Working women with children
B. People who want to work out
C. All employees
D. Nerds
C. All employees
Wal Mart's business strategy includes all of the following except:
A. Minimum customer service to keep cost down
B. Everyday low prices
C. Working with suppliers to reduce costs
D. Cutting edge technology to reduce costs

A. Minimum customer service to keep cost down

A. Commitment to continuous improvement
Cultural relativism means:
A. some cultures are more ethical than others
B. All cultures are ethical by their own standards
C. We should abide by our own cultural ethics
D. Some practices are wrong in other cultures
B. All cultures are ethical by their own standards
The bottom of the period (BOP) refers to:
A. the large group of people who are living in poverty worldwide
B. the lowest ranking employees
C. The lowest paid employees
D. The smallest consumer markets
A. the large group of people who are living in poverty worldwide

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