Department of Management Faculty of Economics and Business Gadjah Mada University

Chapter 7 The Ethics of Job Discrimination
Class: MAN3509 – Business Ethics Instructor: Risa Virgosita, S.E., M.Sc.

.Business Ethics | Risa Virgosita.Sc. S.E.Chapter Outline  What distinctions can companies reasonably make between job applicants without engaging in discrimination?  How widespread is job discrimination?  Why is it wrong to discriminate?  What is affirmative action and why is it so controversial? 2 MAN3509 . M..

Sc..Key Concepts Discrimination The wrongful act of distinguishing illicitly among people not on the basis of individual merit. The decision has a harmful impact on the interests of the employees 3 MAN3509 .Business Ethics | Risa Virgosita. S. M.E. The decision derives solely or in part of morally unjustified attitude (false stereotypes. A decision against one or more employees that is not based on individual merit 2. . etc) against members of the class to which the employee belongs 3. but on the basis of prejudice or some other invidious or morally reprehensible attitude Basic elements of discrimination in employment 1.

Unintentionally isolated (non-institutionalized) discriminatory behavior 4.. M.E.Forms of Discrimination Intentional and Institutional Aspects of Discrimination 1.Sc. Unintentionally institutionalized discriminatory behavior 4 MAN3509 . S. .Business Ethics | Risa Virgosita. Intentionally institutionalized discriminatory behavior 3. Intentionally isolated (non-institutionalized) discriminatory behavior 2.

Average benefits b. . M. S. Proportion of the groups that hold more advantageous position 5 MAN3509 .Business Ethics | Risa Virgosita.E..Discrimination: Its Extent Indication to estimate a discriminatory act in institutions: When a disproportionate number of the members of a certain group hold the less desirable positions within the institutions despite their preferences and abilities Three kinds of comparison as the indication: a. Proportion of the groups in the lowest levels of the institutions c.Sc.

Business Ethics | Risa Virgosita. M.E. . but impenetrable. S.. barrier to further promotion sometimes encountered by women or minorities Increasing Problems for Women and Minorities: • Women and minorities make up most new workers • Women are steered into low-paying jobs and face a glass ceiling and sexual harrasment • Minorities need skills and education but lack these 6 MAN3509 .Discrimination: Its Extent Glass Ceiling: An invisible.Sc.

Business Ethics | Risa Virgosita. . S.Sc.E..Discrimination: Utility. M. Rights. and Justice Arguments Against Discrimination • Utility: Discrimination leads to inefficient use of human resources  A society’s productivity will be optimized if jobs are awarded on the basis of competency • Rights : Discrimination violates basic human rights • Justice: • Discrimination results in unjust distributions of benefits and burdens • Principle of Equality 7 MAN3509 .

M.Business Ethics | Risa Virgosita.Sc.E. ..Discrimination: Utility. and Justice Criticisms on Arguments Against Discrimination • Utility : • How if in certain situation. S. the public welfare would be better if jobs are assigned on the basis of factors not related to the job? • Society may benefit from some forms of sexual discrimination • Rights : • Justice: • How to define precisely what counts as a relevant respect/characteristic for treating people differently and explaining that sex and race are not relevant? 8 MAN3509 . Rights.

M.Sc. and other verbal or physical contact of a sexual nature 9 MAN3509 . requests for sexual favors. .Business Ethics | Risa Virgosita.E. unwelcome sexual advances. S.Discrimination Practices • • • • • Recruitment Practices Screening Practices Promotion Practices Conditions of Employment Discharge Sexual Harrasment Under certain conditions..

. discrimination can be based on • Age • Sexual orientation • Transsexual status • Disability • Obesity • Disease (AIDS. etc) 10 MAN3509 . Hepatitis.Business Ethics | Risa Virgosita.. M.Sc.Discrimination Practices Besides race and sex.E. S.

Business Ethics | Risa Virgosita. M. . 11 MAN3509 make employment decisions.Sc.E. S.Affirmative Action Affirmative Action Program A program designed to ensure the proportion of minorities within an organization matches their proportion in the available workforce Affirmative action programs are criticized as being discriminatory by using nonrelevant characteristics – race or sex.

. M.Affirmative Action as Compensation Basis:The concept of compensatory justice Compensation Argument for Affirmative Action • Claims affirmative action compensates groups for past discrimination • Criticized as unfair because those who benefit were not harmed and those who pay did not injure  compensation should come from the wrongdoers to the ones who are injured.Business Ethics | Risa Virgosita.Sc.E. . S. not to be generalized 12 MAN3509 .

frustation of the majorities) outweigh benefits and that other ways of reducing need will produce greater utility Equal Justice Argument for Affirmative Action • Claims affirmative action will secure equal opportunity • Claims affirmative action is a morally legitimate means 13 MAN3509 .Sc.Affirmative Action as an Instrument for Achieving Utilitarian Goals and Equal Justice Utilitarian Argument for Affirmative Action • Claims affirmative action reduces need and so increases utility • Criticized on grounds that costs (e.. M.Business Ethics | Risa Virgosita.g.E. S. .

E. S. .Sc. M..Business Ethics | Risa Virgosita.Affirmative Action as an Instrument for Achieving Utilitarian Goals and Equal Justice Arguments Made Against Equal Justice Argument for Affirmative Action • Affirmative action programs “discriminate” against White men (as the nonminority) • Preferential treatment violates the principle of equality • Affirmative action programs harm women and minorities  the programs imply that women and minorities need “special help” to compete 14 MAN3509 .

S.Business Ethics | Risa Virgosita.. then the minority should be preferred 15 MAN3509 .E.Implementing Affirmative Action and Managing Diversity Guidelines to an affirmative program when minorities are underrepresented 1.Sc. Both minorities and nonminorities should be hired or promoted only if they reach certain minimum levels of competency or are capable of reaching such levels in a reasonable time 2. If the qualifications of the minority and nonminority candidates are only slightly less/equal to/higher than those of the nonminority. M. .

then: • If a performance in the job directly affects the lives and safety of people or if performance on the job has a substantial and critical effect on the entire firm’s efficiency.Sc. M.Implementing Affirmative Action and Managing Diversity (cont’d) Guidelines to an affirmative program when minorities are underrepresented (cont’d) 3. If both the minority and nonminority candidates are adequately qualified for a position but the nonminority candidate is much more qualified.. . and vice versa 16 MAN3509 .E. S.Business Ethics | Risa Virgosita. then the more qualified nonminority should be preferred.

Sc. Preference should be extended to minority candidates only so long as their representation throughout the various levels of the firm is not proportional to their availability 17 MAN3509 .E. . M.. S.Implementing Affirmative Action and Managing Diversity (cont’d) Guidelines to an affirmative program when minorities are underrepresented (cont’d) 4.Business Ethics | Risa Virgosita.

M.Comparable Pay for Jobs of Comparable Worth Comparable Worth Program A program designed to ensure that jobs of equal value to an organization are paid the same salary regardless of whether external labor markets pay the same rates for those jobs Comparable Worth Program • Equalize pay for jobs requiring equal responsibilities and equal skills and of equal value to an organization • Based on idea that equals should be treated as equals 18 MAN3509 .E.Sc. S.Business Ethics | Risa Virgosita. ..

Business Ethics | Risa Virgosita. 19 MAN3509 . 2006.Source Velasquez.. Manuel G. NJ: Pearson – Prentice Hall. S. 6th edition.Sc.E. M.. Business Ethics: Concepts and Cases. .

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