41. Ethics and Diversity Cases: Legal Applications in the Workplace
V- 21
Removing Expensive Labor: Forced Retirement
Cases 18 and 19 examine the practice of removing expensive labor costs from the
payroll by forcing retirement. They examine two different practices intended to
accomplish the same end: a) mandating retirement of older workers; and b) forcing
payroll labor into contract labor.
18. Sidley Austin Brown & Wood v EEOC
Diversity Issue: Age Discrimination (thru forced retirement)
Sidley, a giant Chicago-based international law firm with 1500 lawyers practicing on
three continents, has used a mandatory retirement policy to involuntarily retire
partners since 1978. Further, it demoted 32 partners thereby forcing them out also.
The EEOC filed a class action suit charging that Sidley selected partners for
expulsion from the firm on the basis of their age. “The New York Bar Association
recently criticized mandatory retirement programs for older attorneys saying that the
requirements effectively cheat the public out of competent counselors with a wide
Ethics Commentary
number. This would be a teleological approach. A caring argument is difficult to
imagine, since the action, forced retirement, seems the opposite of caring.
Legal Status
The case has been resolved. Sidley did not admit to any wrongdoing, but
1) consented to pay $ 27.5 million for discrimination against the 32
partners,
2) agreed to end its mandatory retirement policy for lawyers based on
age, and
3) agreed that its “partners” were actually employees and therefore
protected by discrimination laws.
Retrieved November 8, 2012 from
www.chicagobusiness.com/article/20060217
41. Ethics and Diversity Cases: Legal Applications in the Workplace
V- 22
19. Allstate Insurance
Diversity Issue: Age Discrimination (thru demotion to contract work)
In 1999, Allstate fired 6,400 home and auto insurance agents of which 90% were
waived their rights to sue Allstate for age or any other discrimination. Allstate also
imposed a one-year freeze on rehiring former sales agents in other positions. This
procedure was repeated with 650 life insurance agents, 80% of whom are over 40. A
class-action suit was filed by employees who were joined by EEOC. Allstate counter
sued for fraud.
Ethics Commentary
On the face of it, this appears to be an attempt by Allstate to reconfigure its business
Legal Status
Retrieved June 11, 2011 from
http://www.eeoc.gov/eeoc/newsroom/release/9-11-09a/cfn.
41. Ethics and Diversity Cases: Legal Applications in the Workplace
Removing Expensive Labor: Outsourcing
Case 20 examines the practice of removing labor by transferring American jobs to countries
where labor is cheaper. There are both positive and negative effects of this practice.
“Full time jobs become contract work without benefits, and then vanish overseas.”
Reingold, J. (2004, April). Into Thin Air. In Fast Company. Retrieved February
23, 2013, from http://www.fastcompany.com/magazine/81/offshore.html.
“In the absence of a public policy that tells me what to do… I have no choice as corporate
manager, nor do my colleagues… [but to make decisions] that very often involve moves of jobs
into other countries.”
Andrew Grove (former Intel CEO) quoted in Reingold, J. (2004, April). Into Thin Air. In
Fast Company. Retrieved February 23, 2013 from
http://www.fastcompany.com/magazine/81/offshore.html.
20. WatchMark Corp. (now WatchMark-Comnitel)
Diversity Issue: Off-shoring (outsourcing jobs overseas)
WatchMark (a software company) terminated 60 people and sent their jobs to India.
Some of the terminated workers were asked to stay and train their Indian
replacements with the clear understanding that their severance pay and
unemployment benefits were contingent upon them doing so.
Ethical dilemma: Cost savings and benefits to economy (increased productivity,
lower prices and greater demand for American products) versus downward mobility
and suffering of displaced workers.
Reingold, J. (2004, April). Into Thin Air. In Fast Company.
Retrieved February 24, 2013, from
http://www.fastcompany.com/magazine/81/offshore.html.
Off-shoring is rapidly increasing. It has been common in manufacturing for a long
time, but now service jobs are being outsourced in record numbers. Some companies
such as Fast Company magazine and Careerplanner.com produce lists of jobs “and
their relative vulnerability.”
Ethics Commentary
This company is in an extremely volatile sector of the market and the demand for
employees is high. It also operates with venture capital investors. The ethical issue
here might be seen as the need to be globally competitive in order to retain investors,
or die or get acquired. So the justification for outsourcing would be based on duty to
the venture capital partners (deontology). It could also be based on the need to reduce
costs to create more good (by continued existence) for more people. Such a
justification would be teleological.
Legal Status As of this writing, no lawsuits have been filed.
41. Ethics and Diversity Cases: Legal Applications in the Workplace
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21. Bhatt v The University of Vermont
Diversity Issue: Tourette Disability Discrimination
Dr. Rajan D. Bhatt falsified an evaluation for a surgery rotation and at the hearing,
claimed it was an isolated incident. It was learned however, that he had falsified other
evaluations too, and falsified a diploma as well. At the next hearing dealing with
these other forgeries, he claimed they were due to Tourette’s syndrome and a related
obsessive-behavior disorder.
The university dismissed him. He sought treatment and later requested that his
medical condition be re-evaluated by the university. His application was denied and
he sued the university under the ADA charging the university had not accommodated
his disability.
Cheney, K. (2008, June 17). Developments in Vermont law. What
Accommodations Must A College Give A Liar? In VT-World. Retrieved
February 22, 2013, from http://www.vt-world.com. More Law Lexapedia.
(2008, May 30). Retrieved February 22, 2013, from http://www.morelaw.com.
Legal Status
The Supreme Court of Vermont upheld the university, noting that the request for
accommodation came far too late as it came after his dismissal. The court noted
further that the defendant wants the university to ignore all his misconduct and
reinstate him, which is something the ADA is not intended to remedy.
Lexapedia. More Law Case: 2008/ VT 76. Retrieved November 8, 2013 from
http://morelaw.com .
22. Hughes v the City of Bethlehem et al.
Diversity Issues: Gender and Physical Disability Discrimination
Catherine Hughes, a diabetic employee from the City of Bethlehem called in sick for
two days when she was actually in Las Vegas having her lips and eyebrows
permanently tattooed. Her deception was reported and when questioned, she lied,
saying that she wasn’t in Las Vegas, but had been in her sickbed at her boyfriend’s
home. She was terminated for dishonesty after an investigation uncovered her
deception.
She sued stating she was terminated because of her gender and diabetes and that she
was retaliated against for seeking an accommodation under ADA.
HR Specialist: Pennsylvania Employment Law (2009, January 18). OK to Fire
Employee Who Lies About FMLA Absence. Retrieved February 20, 2013 from
www.businessmanagementdaily.com/6970/No 07-2349.
41. Ethics and Diversity Cases: Legal Applications in the Workplace
Legal Status
The District Court granted summary judgment in favor of the city. The U.S. Court of
Appeals for the Third Circuit reviewed the record and concluded that Hughes failed
to show gender-based discrimination and agreed with the District Court that the city
did not discriminate.
United States Court of Appeals for the Third Circuit No. 07-2319.
Retrieved November 8, 2013 from http://www2.ca3.vscourts.gov.
Discussion Question
A wealthy and frequent guest arrived at a small and very posh golf resort for an extended
stay. He was accompanied by a dozen important business associates. He immediately
informed the hotel management that there was to be no service for any of his guests made
directly by African-Americans – no waiters, no housekeepers, nor other service
personnel. He was adamant on this point.
41. Ethics and Diversity Cases: Legal Applications in the Workplace
Writing Assignment
The court decisions on two landmark cases severely erode the rights of workers
to sue employers who engage in gender discrimination (Lilly Ledbetter case) and
age discrimination (Jack Gross case). Subsequent legal action changed the impact
of the verdicts.
Ledbetter v Goodyear Tire and Rubber
Lilly Ledbetter was the only woman among the 16 supervisors at the same
management level. She worked at Goodyear over 19 years and learned
late in her tenure there that all the males (even those with less seniority)
earned more than she did, and that her salary was as much as 40 percent
lower than the salaries of the males.
Gross v FBL Financial Services
In June 2003, Farm Bureau Financial Group merged with Kansas Farm
Bureau and offered all employees who were over age 50 with a specified
number of years of employment, a buyout. In Iowa, virtually every claims
supervisor over 50 was demoted. Jack Gross, aged 54, with 13 consecutive
years of top performance reviews, was demoted. The company claimed it
was a “reorganization,” not a demotion.
Research these cases and write a paper that explains:
1. the court rulings in each case,
2. subsequent legal actions, and
3. the implications for workers.
41. Ethics and Diversity Cases: Legal Applications in the Workplace
Diversity on the Web
Global Considerations
Research the following questions:
1. Do U.S. anti-discrimination laws apply to workers at U.S.-owned companies
operating in other countries?
2. Do U.S. anti-discrimination laws apply to foreign companies operating in the
U.S.?
3. The U.S. has child labor laws prohibiting exploitation of children in the
workplace, yet many large American corporations have been exposed producing
and/or marketing products made overseas by child sweatshop labor. Can these
corporations be prosecuted for violations of U.S. child labor laws?
Starting sources:
Berkowitz, P.M. & Rosenberg, E.J. (2009, August 7). Overseas Employees and
U.S. Laws: Recent Developments. In Nixon Peabody Thought
Leadership/Alerts. http://www. Nixonpeabody.com.
Lowe, D.A. (n.d.). Employment Rights of American Workers Abroad. In Rudy,
Exelrod & Zieff. http://apps.americanbar.org.
Mok, K. (2010, June 2). Are These Unethical Fashion Brands Hiding in Your
Closet? In Treehugger. http://www.treehugger.com.
Nuri, S. (2013). Lists of Brands That Use Sweatshops. In eHowMoney.
http://www.ehow.com/ (Type title in search box.)
41. Ethics and Diversity Cases: Legal Applications in the Workplace
Additional Cases (not in text)
1. Brown v City of Salem
Diversity Issue: Sleep Apnea Disability
Brown, a 911 emergency dispatcher for almost 25 years, was diagnosed with sleep
apnea (involuntary short sleeps) 10 years ago. The city excused him from night duty
and gave him a fan in accordance with his doctor’s recommendation. In 2003, he was
terminated at least in part because he still fell asleep while on duty. Brown sued.
The issue is whether or not there is a causal relationship between the termination and
the disability.
Satterwhite, R. (2007, March 9). Thin Line Between Misconduct and
Disability. Suits in the Workplace. Retrieved May 18, 2007 from
http://suitsintheworkplace.com/blogs/.
Ethics Commentary
One deontological approach to this situation is to claim that Brown has a duty to his
employer, the city and the wider population the city government represents, to be
able to perform his job regardless of the outcome. The city appears to have tried to
meet a duty to Brown by relieving him of night duty.
A teleological approach might consider the ends or outcomes of Brown’s falling
asleep while responsible for the 911 lines. The harm caused to others might be
significant. The greatest good argument would suggest Brown not work the 911 lines.
A caring approach could also explain the city’s treatment of Brown in that he was
relieved of night duty. Such relief could have come from genuine compassion and
care.
Legal Status
The City’s motion for summary judgment was denied; Brown can sue. The court
noted that “conduct resulting from the disability is considered to be part of the
disability and that termination based on that conduct is unlawful.”
2. Walgreens Drug Stores v State of Illinois
Diversity Issue: Religion
Walgreens policy allowed pharmacists to decline to dispense birth control
prescriptions as long as there was another pharmacist in the store or one nearby to do
so.
In April 2005, Illinois passed a law requiring all pharmacists to fill all prescriptions.
A follow-up letter from the governor indicated that pharmacists refusing to comply
would subject their employers to heavy penalties. In September 2005, disciplinary
actions against the pharmacies, including Walgreens, began. Walgreens suspended
noncomplying pharmacists, offering to help those in southern Illinois to get licensed
in Missouri. The pharmacists declined to relocate to Missouri. Suspended Illinois
pharmacists and Walgreens both sued the state.
Michels, L. (2006, Sept. 25). Conflict Over Contraception. Suits in the
Workplace. Retrieved May 18, 2007 from
http://suitsintheworkplace.com/blogs/archive/2006/09.aspx.
Ethics Commentary
Does a pharmacist have a duty to follow a physician’s directions for patient
prescriptions, or does his/her duty also involve his/her judgment (in this case, based
on religious belief) about the physician’s directions? The ethical judgment of where
the pharmacist’s duty lies is a deontological one.
A teleological approach might reason that moral behavior such as that supported by
religious belief is a desired end and should be encouraged, that such reasoning could
lead to a better world. (Of course, such a claim could also be refuted by pointing out
what moral chaos might ensue if any crackpot belief that claimed religious status
were accepted.) Another teleological approach to ethically reasoning this situation
could be to claim that physician’s orders have greater reliability (scientific
knowledge) than do pharmacist’s belief systems.
A caring approach might claim that the pharmacist who refuses to provide women
with birth control pills is caring for the patient in a way the physician is not. The
claim could also be made that the pharmacist is caring for himself/herself and her
belief system over that of the patient, a kind of arrogance.
Legal Status
States may make laws that conflict with individual religious requirements, but
Walgreens’ complaint is in litigation since the Court found that the state failed to
provide pharmacies with a way to accommodate the religious objections.
41. Ethics and Diversity Cases: Legal Applications in the Workplace
3. Domino’s Pizza, Inc.
Diversity Issue: Worker Safety or Social Class/Ethnic Discrimination
Dominos refused to deliver pizza to a home in a high crime area in San Francisco.
Like other pizza chains, they practiced redlining – they coded neighborhoods as red
(high crime areas where they would not deliver pizza), yellow (customers must come
out to street to get pizza from the delivery car) or green (delivery to home) areas.
Red areas were almost always high-minority areas. A customer in a red area claimed
discrimination. Dominos claimed that their delivery policy was for the protection of
their drivers as several pizza delivery people had been murdered and delivery people
had been robbed and assaulted.
The New York Times (1996, July 14). San Francisco Tells Pizza Shops to Hold
the Excuses. The New York Times. Retrieved May 19, 2007 from
http://query.nytimes.com.
Ethics Commentary
This interesting situation places the company’s duty towards its drivers (a
deontological particular application) against the duty to the world outside the
company (universal application). Clearly, San Francisco weighed on the universal
side. Given this ruling, we could argue that the company now has a duty to train its
drivers in safety procedures. This is a particularist application.
The action in San Francisco also can be explained by a teleological approach to the
ethical issue: delivering pizzas to everyone creates the greatest good. If Dominos
could decide to which people it would sell and deliver, it would be treating some
people unfairly because they could not obtain pizzas the way other citizens could.
(Perhaps the duty here is a civic one related to law enforcement: all citizens should be
able to be safe in their neighborhoods.)
The caring approach to ethics suggests that no group of people should be degraded, if
redlining a delivery area is seen as degrading. Note that if the argument leaned over a
bit into unfairness, it would be a teleological approach.
Legal Status
Domino’s has a fairly extensive Delivery Area Security Procedures Manual posted on
the web. It states (in all capitals) that, “FACTORS SUCH AS RACE, NATIONAL
ORIGIN, RELIGION, SEX, AGE, OR ANY OTHER CHARACTERISTIC
PROTECTED BY LAW, and SHALL NEVER BE LEGITIMATE
CONSIDERATIONS IN DECIDING WHETHER OR NOT TO LIMIT DELIVERY
SERVICE.” It further states: “Safety of employees must continue to be the top
priority” and provides detailed policies and procedures for determining if an area is
reasonably safe.
http://www.usdoj.gov/crt/housing/documents/dominos_manual.htm.
42. How Canada Promotes Workplace Diversity
HOW CANADA PROMOTES WORKPLACE DIVERSITY
Marc S. Mentzer
University of Saskatchewan
Goals
• To create awareness that issues of workplace diversity are not limited to the U.S.
• To introduce the workplace diversity policies in Canada, a nation similar to the
U.S. and yet having a very distinct history and a very different approach to
diversity management
• To present the concept of employment equity and organizational policies leading
to the attainment of employment equity
Key Points
• Laws passed by the Canadian federal government regarding workplace fairness
apply only to certain federally-regulated industries (banking, airlines, and certain
others). Otherwise, it’s only provincial/territorial laws that affect employers.
• The Canadian Human Rights Act bans direct and indirect discrimination.
• The Canadian Human Rights Act requires “pay equity” (comparable worth).
• The Canadian Employment Equity Acts of 1986 and 1995 require employers to
engage in proactive practices regarding women and minorities, roughly similar
to the U.S. concept of Affirmative Action.
• The Canadian Employment Equity Act specifies four “protected groups” that are
to be the target of practices in the spirit of Affirmative Action: women,
Aboriginal peoples, people with disabilities, and visible minorities. In other
words, of the various types of discrimination covered by the Canadian Human
Rights Act, these four specific types of discrimination have been singled out for
special protection in the Canadian Employment Equity Act.
• Each province/territory has a law roughly equivalent to the Canadian Human
Rights Act, forbidding direct and indirect discrimination. Some (not all)
provinces also have legislation requiring pay equity (i.e., comparable worth).
42. How Canada Promotes Workplace Diversity
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Discussion Questions and Answers
1. How does the power of the Canadian federal government in relation to the
provinces differ from the power of the United States federal government in
relation to the states?
The situation is different in each country because each has its own constitution.
Generally speaking, the Canadian federal government’s power is weaker. In Canada,
2. If a U.S.-based retail chain has stores throughout Canada, which laws apply −
those of the United States, those of the Canadian federal government, or those of
each province?
The laws that would apply are those of each province in which the company operates.
not a federally-regulated industry. U.S. law does not apply in Canada.
3. What is the difference between employment equity and pay equity?
Employment equity is roughly similar to the U.S. concept of Affirmative Action: this
is when employers behave in a proactive manner to increase the representation of
4. How does the Canadian constitution affect Affirmative Action-type programs?
The Canadian constitution states that while discrimination is forbidden, exceptions to
the non-discrimination rule are permitted to aid a disadvantaged group. This
constitutional clause, which has no counterpart in the U.S. Constitution, makes it
42. How Canada Promotes Workplace Diversity
5. (a) Present an argument that it is easier for employers to comply with diversity
legislation in Canada than it is in the United States.
There are many ways of approaching this question and an argument could be made
(b) Present an argument that it is harder for employers to comply with diversity
legislation in Canada than in the United States.
Other Resources
The website of the Canadian Human Rights Commission is a good starting point:
http://www.ccdp-chrc.gc.ca.
Within the above website, the webpage dedicated to employment equity is:
http://www.ccdp-chrc.gc.ca/employment_equity/default-eng.aspx.
Of the various provinces, Ontario and Quebec have the strictest pay equity (comparable
worth) legislation, covering both private and public sector employers. The Ontario
government website has extensive advice on how to ensure that pay scales are in
compliance with the province’s pay equity law:
http://www.payequity.gov.on.ca.
Quebec government website on pay equity:
http://www.ces.gouv.qc.ca/english.asp.
42. How Canada Promotes Workplace Diversity
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Points of Law
Summary of key diversity legislation in Canada’s federal jurisdiction:
Charter of Rights and Freedoms: This is part of the Canadian constitution and
is roughly parallel to the U.S. Bill of Rights.
Canadian Human Rights Act: This forbids direct or indirect discrimination on
the basis of race, gender, sexual orientation, disability status, and certain other
grounds.
Canadian Employment Equity Act: This requires employers to engage in
proactive measures to increase the representation of four specific groups: Women,
Aboriginal people, people with disabilities, and members of visible minorities. Of
the groups covered under the Canadian Human Rights Act, the federal
government has selected these four groups for additional legal attention under the
Employment Equity Act.
Diversity on the Web
Choose a Canadian bank from the list below and look at its website to see what is
presented regarding employment equity or diversity. Next, choose a U.S. bank
and look at what its website says regarding diversity. To what extent do
differences between the two websites relate to differences between Canada and
the United States? In some cases, it will be necessary to do a web search within
the bank’s website for the keywords “diversity” or “employment equity.”
To get started, here are some websites of Canadian banks:
http://rbc.com/canada.html
http://td.com
http://cibc.com
http://scotiabank.com
http://bmo.com
42. How Canada Promotes Workplace Diversity
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Writing Assignment
Choose one province or territory, look up the website of its human rights commission or
tribunal, and discuss what types of cases or complaints dominate the work of that commission
or tribunal. In some instances, there will be a section of the website labeled “Decisions.” Are
the issues addressed by your chosen organization different than one would expect from a
similar enforcement agency in the United States? The following websites are particularly well
designed:
British Columbia:
http://www.bchrt.bc.ca
Newfoundland and Labrador:
http://www.justice.gov.nl.ca/hrc/
Ontario:
http://www.ohrc.on.ca
Quebec (clickable button converts the
web page into English):
http://www.cdpdj.qc.ca
Saskatchewan:
http://www.shrc.gov.sk.ca
Yukon:
http://www.yhrc.yk.ca
43. A Report on the Current Health of the Media
A REPORT ON THE CURRENT HEALTH OF THE MEDIA
M. June Allard
Assumption College
Worcester State University, Professor Emerita
Goals
• To examine how media both foster and reflect cultural stereotypes and values
• To examine media discrimination patterns in the audiences they target
Outline
I. Media Accessibility
A Print Media
B. Broadcast Media
C. Electronic Media
D. Targeted (Ethnic and Segment) Media
II. Mass Media Messaging
A. The Producers of Mass Media Messages
B. News Broadcasting
C. Content: Stereotypes, Prejudice, Discrimination
III. Messaging
A. Personal Messaging
B. Social Messaging
IV. Business
A. Marketing
B. Hiring
C. Internal Corporate use
43. A Report on the Current Health of the Media
V- 37
Discussion Questions and Answers
1. The FCC has recently issued new rules for protecting the neutrality of the
content of the Internet. Investigate these rules and discuss the strengths and
weaknesses of this policy.
Starting source:
Business Journal. www.wbjournal.com. p.12.
New rules issued by the Federal Communications Commission (“Open Internet Order
for Net Neutrality”, dated December 21, 2010) require broadband Internet providers
The new regulations are controversial. Critics complain that they are too weak
and only add to previous complaints that the FCC waters down affirmative action
regulations. They cite the failure to require stations to make public data on their
Controversy also stems from the application of the new rules. Some view the
rules as weak since they do not apply to wireless or mobile broadband and do
2. The major requirements for evaluating the social health of mass media are
described in the text article. How would you complete a “Report Card” on the
social health of the media in terms of these requirements? Explain.
Student answers will differ, but will contain considerable overlap. Sometimes very
ingenious and innovative ideas come forth.
43. A Report on the Current Health of the Media
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3. Is it legal for employers to monitor the email and other communications their
employees send?
Starting sources:
Spykerman, M. (n.d.). Is email monitoring legal? Red earth.
http://www.policypatrol.com.
Nolo. (n.d.) Monitoring employee communications. Learn the rules on email,
voicemail, telephone conversations and Internet use.
http://www. nolo.com.
Nolo. (n.d.). Email monitoring: Can your employer read your messages?
http://www.nolo.com.
Owings, K. (n.d.). Legality of email monitoring. EHow money.
http://www.ehow.com/facts_6901953_legality-email-monioring.html.
Employers monitor employee communications because they don’t want them surfing
X-rated sites, sending offensive email, calling in bets at the races, giving away trade
secrets, engaging in illegal conduct at work and using company communications to
communications.
Phone. Business calls with customers or clients are okay to monitor, but not personal
calls.
conversation to tape it without the other person’s knowledge or permission – as long
as the recording is not made for the purpose of committing a crime. Some states
however, do require that all persons involved in the conversation must consent.
43. A Report on the Current Health of the Media
V- 39
Additional Sources:
East, N. 2013. (October 30). Employer monitoring and employee email. Ehow
money. http://www. Ehow.com.
Stroup H. (n.d.) Work life and home life. The changing face of privacy.
http://www.idtheft.about.com/od/Privacy/a/Work.
4. Will video-conferencing and text messaging replace face-to-face meetings?
Examine the arguments on both sides of this debate.
Starting sources:
Student answers will vary; most will agree that video conferencing, text messaging,
and face-to-face meetings will all continue to be both useful and used as they have
different strengths and weaknesses making each a better choice in some situations
and for some purposes. Some of the major considerations that may be raised include:
conferencing, a speaker can be asked to speed up, slow down, and repeat information.
environment away from the office, and richer experience in getting to know someone
43. A Report on the Current Health of the Media
V- 40
(i.e., in building relationships, bonds, and trust). Additional strengths are apparent for
some types of projects such as in engineering when drawings and blue prints are
Writing Assignment
Select a group, such as an ethnic group, social class, government, religion,
disability, sexual orientation, gender, obesity, public officials, businessmen, etc.
1. Conduct your own examination on how one media characterizes them.
2. Write a two to three page paper on your findings. Be sure to include how
you arrived at your findings (i.e., your methodology).
Hint: The Media Exercise article that follows provides instructions on how
this might be done.