978-0470639948 Chapter 7 Solution Manual Part 5

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Collins Instructor’s Guide

CHAPTER 7 KEY WORDS

Age Discrimination in Employment Act (p. 180): prohibits dismissing, or not promoting,

anyone age 40 or older because the individual is considered “too old” for the job.

Americans with Disabilities Act (p. 181): prohibits discrimination against a qualified workers

with a physical or mental disability who can perform the job task with or without reasonable

accommodation.

Dominant group (p. 187): refers to the diverse characteristic that is held in common by a large

number of employees, typically Caucasian males.

Employment at-will doctrine (p. 175): allows employers and employees to end an employment

relationship for any reason, or “at will,” so long as it does not violate contractual agreements or

federal, state, and municipal laws.

Employment Non-Discrimination Act (p. 182): federal legislation under consideration to

protect lesbian, gay, bisexual and transgender people from job discrimination.

Equal Pay Act (p. 177): prohibits pay discrimination based solely on gender considerations; men

and women receive equal pay for equal work.

Fairness (p. 176): refers to making decisions according to rules not based on personal biases.

Family and Medical Leave Act (p. 178): ensures a total of 12 workweeks of unpaid leave

during any 12-month period, and the continuation of health care and other fringe benefits during

this period, for: (1) the care of a newborn baby, a newly adopted child, or a new foster child, (2)

the care of an immediate family member with a serious health condition, or (3) an employee’s

serious health condition.

Glass ceiling (p. 179): refers to situations in which the hierarchical advancement of a qualified

woman or minority group member is prematurely stopped at a lower level because of gender,

racial, or ethnic discrimination.

Harassment (p. 182): unwelcome conduct that is based on protected class status from a

supervisor, coworker, or nonemployee, such as a customer or supplier.

Pregnancy Discrimination Act (p. 178): protects the civil rights of pregnant women and ensures

that women experiencing pregnancy, childbirth, or related medical conditions would be treated

the same as an employee with an illness or temporary disability.

Respect for others (p. 176): refers to treating everyone with dignity.

Reverse discrimination (p. 179): refers to discriminating against a dominant or majority group

member, such as Caucasian males, in favor of a historically disadvantaged or minority group

member.

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Self-categorization theory (p. 176): individuals define themselves in relation to others based on

a “self-identity” or “social identity” factor and form binding relationships with people who

categorize themselves similarly.

Sexual harassment (p. 183): occurs when (1) an unwelcomed sexual favor is quid-pro-quo

condition of employment, promotion, pay increase, continued employment, or desired

assignment, or (2) when offensive comments about a person’s gender or physical harassment of a

sexual nature results in a hostile work environment.

Subordinate group (p. 187): refers to the diversity characteristic held by a small minority of

organizational members.

Undue hardship (p. 178): refers to excessive costs and difficulties that would exempt an

organization from a legal obligation, such as the Pregnancy Discrimination Act.

CHAPTER 7 ANCILLARY MATERIALS

Websites to Explore

oGovernment Statistics for Diversity

oU.S. Census Bureau, Quick Facts, available at:

http://quickfacts.census.gov/qfd/states/00000.html.

oU.S. Census Bureau, National Population Projections, available at:

http://www.census.gov/population/www/projections/summarytables.html.

oBureau of Labor Statistics, “Household Data Annual Averages,” available at:

http://www.bls.gov/cps/cpsaat11.pdf.

oDiversity Laws and Topics

oU.S. Equal Employment Opportunity Commission, “Laws and Guidance,”

available at: http://www.eeoc.gov/laws/.

oUnited States Department of Labor, Compliance Topics, available at:

http://www.dol.gov/compliance/topics/.

oPew Hispanic Center, available at: http://pewhispanic.org/.

oSexual Orientation Issues:

o“Best Places to Work for LGBT Equality,” available at:

http://www.hrc.org/issues/workplace/11832.htm.

oWilliams Institute, sexual orientation law, available at:

http://www.law.ucla.edu/williamsinstitute/home.html.

oLambda Legal, list of states and municipalities prohibiting sexual orientation

discrimination, available at: http://www.lambdalegal.org/states-regions/.

oNational Gay and Lesbian Taskforce, available at: www.thetaskforce.org.

oWhite Privilege Questionnaire, available at:

http://husky1.stmarys.ca/~evanderveen/wvdv/Race_relations/white_privilege.htm.

oThe Implicit Attitude Test, available at: https://implicit.harvard.edu/implicit/demo/.

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Best Place to Work Video

Best Place to Work – Google, available at:

http://money.cnn.com/video/fortune/2008/01/22/bpw.google.fortune/.

Business Ethics Issue Video

“Digital Nation,” Frontline, about people immersed in a “wired” life; February 2, 2010,

90 minutes, available at: http://www.pbs.org/wgbh/pages/frontline/digitalnation/view/?

utm_campaign=viewpage&utm_medium=grid&utm_source=grid.

TEDTalks Videos

Diversity Empowerment of Women: Hanna Rosin reviews new data that shows women

actually surpassing men in several important measures, such as college graduation rates;

December 2010, 17 minutes, available at:

http://www.ted.com/talks/hanna_rosin_new_data_on_the_rise_of_women.html.

Gender Diversity: Tony Porter shares stories from his own life about how the “act like a

man” mentality, drummed into so many men and boys, can lead men to disrespect,

mistreat and abuse women and each other; December 2010, 12 minutes, available at:

http://www.ted.com/talks/tony_porter_a_call_to_men.html.

Conversations with Charlie Rose

A conversation about the repeal of ‘Don’t Ask Don’t Tell’ with Al Hunt of Bloomberg

News and David Ignatius of ‘The Washington Post’; December 22, 2010, 20 minutes,

available at: http://www.charlierose.com/view/interview/11369.

A conversation with Paul Volcker, former chairman of the Federal Reserve, about the

2008-2009 global economic crisis; September 29, 2009, 60 minutes, available at:

http://www.charlierose.com/view/interview/10631.

CHAPTER 7 ETHICAL DILEMMA ANALYSIS

Each chapter contains three real-life ethical dilemmas: (a) What would you do? (all scenarios

provided by my students), (b) Let’s Build a Building (all scenarios provided by a construction

consultant), and (c) In the Real Word: Enron (more in-depth explanations available in Denis

Collins (2006) Behaving Badly: Ethical Lessons from Enron).

Have students apply Exhibit 5.11 “Critical Thinking Decision-Making Process Table” to analyze

these ethical dilemmas (instructions below). By doing so, students develop a habit for analyzing

decisions that take into consideration ethical concerns.

Step 1: Write the decision options in the appropriate column below.

Step 2: Apply the seven “Applying Ethical Theories to Decision Making” questions to the

decision to obtain relevant ethical information.

Step 3: Insert the ethical strength and weakness revealed by each of the seven ethical questions in

the appropriate column below.

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Step 4: Review the option strengths and insert in the options column what “value” supports the

option (i.e., honesty, loyalty, efficiency, respect, job security, profits, etc.)

Step 5: Given the strengths and weaknesses, choose a decision option, explain why that option

and value were chosen rather than the alternative options, and determine how to manage the

weaknesses associated with the option chosen.

NOTE ON ETHICAL DILEMMA ANALYSES AND AUTHOR RECOMMENDATION – The

“author” (me) is stating his best judgment. All the ethical dilemmas are difficult and involve

tradeoffs, some more so than others. As noted throughout the textbook, everyone has a different

moral intuition and those reasoning at the same level of moral development can disagree about

the right thing to do. In addition, everyone has a different level of risk comfort (my risk comfort

is rather high). The teacher can use my recommendation as grounds for student agreement or

disagreement.

CHAPTER 7 ANALYSIS FOR WHAT WOULD YOU DO?

1) Who are all the people affected by the action?

2) What option benefits me the most?

3) What option does my social group support?

4) What option is legal?

5) What option is the greatest good for the greatest number of people affected?

Ban smelly foods (#2): 6 American-born employees can continue to cook, minus whatever

6) What option is based on truthfulness and respect/integrity toward each stakeholder?

7) What option would a virtuous person do?

Allow all foods (#1) or ban all foods (#3): Moral character is strengthened by encouraging

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Option Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

the office or out of the office

Option and Value

#1: Allow all foods: Equality, diversity

Chosen Because #1: Allow all foods: Develops respect for all cultural foods

How Will You

#1: Revisit policy after a month to ensure people are comfortable with it

AUTHOR RECOMMENDATION: Option 1: Allow all foods – This is based on deontology and

virtue ethics. Everyone’s food preferences should be respected. In this situation, the concept of

“smelly” is based on cultural upbringing. Meet with everyone together, recognize the problem,

and seek tolerance for a month or two before revisiting the solution. In addition, let the

employees express their views so that everyone feels that their concerns have been heard. Ideally,

the group will over time work out an agreeable plan. If the problem persists two months later

than ban all food and revisit the policy a few months later.

CHAPTER 7 ANALYSIS FOR LET’S BUILD A BUILDING

1) Who are all the people affected by the action?

2) What option benefits me the most?

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3) What option does my social group support?

Uphold entire contract and get $19,200 refund (#2): You have been overcharged $19,200

4) What option is legal?

5) What option is the greatest good for the greatest number of people affected?

6) What option is based on truthfulness and respect/integrity toward each stakeholder?

7) What option would a virtuous person do?

Option Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

for second crane

contract and get

$19,200 refund

Upholds contract and customer

rights

months

Option and Value

#1: Pay $28,800 extra next 3 months for second crane: Risk aversion

Chosen Because #1: Pay $28,800 extra next 3 months for second crane: Construction

project will be completed on time

How Will You #1: Never use the general contractor again

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AUTHOR RECOMMENDATION: Option 2: Uphold contract and get $19,200 refund – This is

based on all of the ethical theories. The contractor is overcharging you with the second crane.

This cost was incurred without your consent. If the construction company plays hardball by

threatening a strike then you must also play hardball with an equally compelling reason why it is

not in the contractor’s self-interest to go on strike. Document everything immediately and

threaten to sue if any unreasonable delay occurs.

CHAPTER 7 ANALYSIS FOR IN THE REAL WORLD: ENRON

1) Who are all the people affected by the action?

2) What option benefits me the most?

3) What option does my social group support?

Be more rigorous (#1). I am a professional accountant and a must maintain my industry

4) What option is legal?

Be more rigorous (#1). As an accounting professional I have a legal obligation to maintain

5) What option is the greatest good for the greatest number of people affected?

6) What option is based on truthfulness and respect/integrity toward each stakeholder?

Be more aggressive (#1). External auditors have an obligation to shareholders and the

7) What option would a virtuous person do? Moral character can be strengthened by upholding

Option Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

rigorous

the law

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More truthful toward shareholders

and financial markets

May lose Enron as a client

Option and Value

#1: Be more rigorous: Loyalty to profession, law, and shareholders

Chosen Because #1: Be more rigorous: Professional standards and the law demand it, and

How Will You

Manage Chosen

#1: Inform Fastow and Causey that all auditors will reach the same

conclusion and if they object then you are obligated to inform Enron’s

AUTHOR’S RECOMMENDATION: Option 1: Be more rigorous – This is based on egoism,

social group relativism, cultural relativism, utilitarianism, deontology, and virtue ethics. A

well-informed team member insists that Enron’s books are inappropriate and more rigorous

accounting methods must be applied. Doing so protects your license, follows accounting

standards, upholds the law, informs shareholders appropriately, is truthful, and courageously

challenges unethical bullies. Inform Fastow and Causey that all auditors will reach the same

conclusion and if they object then you are obligated to inform Enron’s Board

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