Business Ethics & the Individual – Class 3

UG Sections L4, L5 & L6

Fall Semester 2020

Professor Mitya New

 Course Overview

Class Class title Notes

Class 1 What is Business Ethical Leadership BP & Deep Horizon, Stakeholder vs Shareholder Thinking

Class 2 Making Ethical Choices Right vs Right Dilemmas and approaches to ethical choices

Class 2a Presentation/Debate class A Cases: Apple, Deutsche Bahn, OR Facebook (1 case/student)

Class 3 The Healthy Workplace #MeToo, Mental Health, Discrimination, Case: France Telecom

Class 3a Presentation/Debate class B Case: Camino Therapeutics (multi-part)

Class 4 Making CSR strategic What is CSR. Michael Porter’s strategic CSR, Case: Singtel

Class 4a Presentation/Debate class C Case: IKEA and child labour

Class 5 Investing for ESG impact Understanding and delivering ESG, Case: Generation Invest.

Class 6 Whistleblowing – the individual choice Challenge of Whistleblowing, Cases: First America, Olympus (1
case/student)
Class 7 Ethical challenges in a world of AI Ethics for Robots, Machine Bias, do Robots have emotions, Future of
the workplace. Open class debate
Class 8 Creating responsible & ethical Cases: Corruption at Siemens, Gender & Free Speech at Google
leadership cultures
Class 9 Review & assessment Review course themes and open discussion. Assessment questions.
 Reading and preparations for Class 3

 Reading for Class 3:

 Suicides at France Telecom

 Tasks for Class 3:

 Complete the student harassment and discrimination survey
 What are we talking about?
Harassment & Discrimination
Workplace Health
Understanding the business impact
Agenda
How should responsible leaders respond in the workplace?

Managing a Workplace Harassment & Discrimination situation

What is a healthy workplace environment?
 Introduction

This question is a challenge in today’s working culture…

 Harassment & Discrimination
Overview

• What does harassment and discrimination in the workplace cover?

– Harassment and discrimination – what is the difference
• Harassment is disparaging (undermining value) treatment
• Discrimination is unequal treatment whether in contravention of policy or not
– What kinds of harassment and / or discrimination are there in the workplace?
• Sex or gender
– Sexual harassment can include unwanted attention including assault (no consent) and/or the
discrimination of coercion (#MeToo)
• Racial or ethnic background
• Age
• Religion
• Disability
• Nationality
• Personality

POLL
• What is the difference between conscious and unconscious bias?
– Read the scenario in the handout
• How many conscious and how many unconscious biases does the wife of the wealthy plantation owner
display ?
– What challenges does unconscious bias raise for the workplace?
 Harassment & Discrimination
Overview

• How widespread is harassment & discrimination

– Very difficult to find global data - in some countries data does not exist at all
– Is harassment and discrimination under reported?
– US convened EEOC study in 2016
• 2015 ca. 90,000 discrimination/harassment complaints
Select Task Force reconvened in June-October
2018 in response to #MeToo movement and made
Harassment recommendations
complaints to EEOC 2015
to companies:
50
45
1. Change company culture
40
2. Ensure strong leadership & accountability
35 3. Implement polices, procedures & training
30
25
20
15
10 Included 16 representatives from
5 academia and social science; legal
0
Sex/Gender Race Disability Age National origin Religion
practitioners; employer and employee
advocacy groups; and organized labour
% private / state & local % federal
 Harassment & Discrimination
What are we talking about – Gender discrimination?

 Gender discrimination in
the workplace
• Discrimination is
embedded in unequal
treatment for male and
female genders - video
• Where is Asia-Pacific
today on women’s
equality?
 Harassment & Discrimination
What are we talking about - sexual harassment?

 Sexual or Gender Harassment in the workplace is widespread and may be unconscious

– Not just women – US federal employee survey* in 1994 found 19% of men claimed they had
experienced unwanted sexual attention or sexual coercion
– LGB experience harassment – 35% in 2008 survey of US workplaces**
– Transgender experience harassment – 50% in 2011 online survey***
– According to 2016 EEOC report, 33%-75% avoid the harasser, 54% -73% deny seriousness
of situation, 44% - 70% forget or endure, only 30% seek to report to manager or authority

Video: South Korean female ice-skating team

https://www.youtube.com/watch?v=M9ueqUCMvVU

* Merit Systems Protection Board, p. 17, US EEOC report, 2016

** p17, US EEOC report, 2016 ;
*** p18, US EEOC report, 2016
 Harassment & Discrimination
What are we talking about – sexual harassment?

 The line between unwanted sexual attention and assault is narrow, hampering reporting
• 2018 US Supreme Court nomination hearings for Brett Kavanaugh amid charges by Christine Blasey Ford that he
had sexually assaulted her in the early 1980s in high school

• Chessy Prout
• 15-year old student at elite 162-year old US boarding school
• Accused senior Owen Labrie (18 years) of sexual assault as part of ‘Senior Salute’ ritual in which seniors try to
have sex in ‘hook ups’ with as many girls as possible before graduation. Unclear what happened and unclear
whether consensual
• Local community and alumni collected funds to defend Labrie against charges
• Chessy Prout was shunned by friends when returned to school
• Labrie convicted in 2015 of statuatory rape, but also of luring a minor for sex via computer which requires him to
be registered as a sex offender for life (Labrie challenged this in US Supreme Court)
• Labrie served 10 months in jail for sexual assault and was released in June 2019

• Chessy Prout interview

• https://www.pbs.org/newshour/show/i-felt-that-it-was-my-fault-a-rape-survivor-shares-her-story-of-speaking-out

 Class Debate: Was Chessy Prout right to bring charges against Owen Labrie or should she have accepted it
was simply a ‘hook up’ that went wrong?
 Harassment & Discrimination
Class Debate on sexual harassment?

 Class Debate: Was Chessy Prout right to bring charges against Owen Labrie or should
she have accepted it was simply a ‘hook up’ that went wrong?

Hook up gone wrong Sexual Assault

o Xxx o Xxx
o Xxx o Xxx
o Xxx o Xxx
o Xxx o Xxx
o Xxx o Xxx
o xxx o xxx
 Harassment & Discrimination
What are we talking about – racial/ethnic discrimination & harassment?

 Race / Ethnic Harassment

• What does race / ethnic harassment include?
• Threatening verbal harassment
• Exclusion (eg from social events)
• Not offering employment based on racial stereotype. (“Our clients would not like to be
served by someone from an Asian / African / Caucasian background”)
• Racial / ethnic harassment can get mixed up with other discrimination eg. religion and national
origin
• Surprisingly, little data on racial / ethnic harassment alone
 Disability Harassment
• What does disability harassment include:
• Psychiatric diseases
• Conditions that make learning more difficult (HKUST exception)
• Physical disabilities affecting movement
• Disease – eg HIV or Hepatitis C which can cause disability
• Genetic diseases that may break out in the future
• Prospective or existing employees not required to disclose
• Very little data available
 Harassment & Discrimination
What are we talking about – age / national origin?

 Age Harassment
• What does age harassment include?
• Disparaging comments about your age and related abilities in the work place
• Advertising for candidates to join a ‘young and dynamic’ team
• Not interviewing someone because ‘too young’ or ‘too old’ to fit in
• Not employing an older person because they will soon retire (“Why do you want this job
at this late stage in your career?“)
• Selecting people for redundancy based on their age
• Age disclosure not required at interviews or on CVs
• Very little detailed data available
 National Origin Harassment
• What does National Origin harassment include?
• Not interviewing or employing someone based on their assumed or known national
background
• Stereotyping (unconscious bias) towards people of a specific national origin
• Confused with racial / ethnic and religious harassment
• Little date available
 Harassment & Discrimination
What are we talking about – religious harassment?

 Religious Harassment
• What does harassment include?
• Not offering employment to someone with argument that their assumed or declared
religious belief will affect performance or makes them unsuitable (“Can’t offer you the
job because as a Muslim you will need to leave your desk several times a day for
prayer.”)
• Can be confused with racial / ethnic harassment or national origin harassment
• Data not easily available
Q2 - In my work life I have experienced racial and/or ethnic discrimination either L5
to myself or to others around me.
Q3 - In my work life I have experienced sexual harassment either to myself or L5
to others around me
Q4 - In my work life I have experienced age discrimination either to myself or to L5
others around me
Q5 - In my work life I have experienced religious discrimination either to myself L5
or to others around me
Q6 - In my work life I have experienced discrimination for those with disabilities L5
either to myself or to others around me
 Harassment & Discrimination – What are we talking about?
What is the business impact of harassment & discrimination?

• Costs of harassment • Potential revenue upside for improving gender equality

• Legal costs of dealing with
harassment complaints –
2015 $125 million pre-
litigation - EEOC
• Compensation payments –
2015 $39 million – EEOC
• 21st Century Fox paid $45
million in Q1 2017 to settle
sexual harassment
allegations
• Loss of motivation and
performance
• Higher employee turnover
• Recruitment brand image
• Market brand image
• Costs of high-performing
toxic workers greater than
increased productivity.*

* Toxic Workers, HBS 2015, Michael Housman & Dylan Minor

 Workplace Health
What are we talking about?
• What areas does workplace health cover?
1. Mental Health - anxiety, stress, depression – in general impaired mental abilities in
workplace
2. Bullying - persistent bullying over at least 6 months by an individual or a group (‘mobbing’)
3. Physical health - activities to promote and support physical health of employees in the
workplace

• Lack of awareness / denial is the biggest challenge

1. Mental Health:
• Few organizations have policies or give managers guidance on how to respond
• Majority or organizations & managers see mental health as a private and personal issue
• Many managers see mental health issues as a ‘sign of weakness’

Burnout should be seen like the canary in

the coal mine

* & ** “Eating their cake and everyone else’s cake, too”, Anthony Wheeler, Jonathon Halbesleben, Kristin Shanine, 2010
 Workplace Health
What are we talking about?

2. Bullying
• One 2009 study* reported 8%-20% employees globally reported being bullied. In US
35%-50% of workers report** experiencing being bullied
• Major driver of bullying behavior is workplace culture, not personality of bullies
3. Health
• Redundancies, long hours, no health insurance, financial insecurity, lack of control over
one’s job contribute to higher stress levels and worse health – but do companies feel
responsible
• https://www.scmp.com/business/article/2154538/all-work-and-no-play-makes-hongkongers-worlds-fifth-most-stressed

* & ** “Eating their cake and everyone else’s cake, too”, Anthony Wheeler, Jonathon Halbesleben, Kristin Shanine, 2010
Q11 - In my work life I have worked with organizations which seek to support L5
employees facing mental health issues
Q13 - In my work life I have worked with organizations which seek to support L5
employees facing bullying in their work place
Q15 - In my work life I have worked with organizations which seek to promote L5
the physical health of employees in workplace design, working conditions &
organization policies.
 Work Place Health
What is the business impact?

 Costs of poor workplace health:

• Estimated* 25% of adults globally will suffer from mental disorder at least once in their lives
• Estimated* indirect and direct gobal costs of depression are: $36 - $51 billion globally
• WHO study estimates 615 million people suffer from depression and anxiety costing $1 trillion in lost productivity every
year **
• Around 44% of all work-related ill-health cases are due to depression or anxiety**
• One medical doctor commits suicide in the US every day**
• Estimated** bullying costs UK economy $3.3 billion / yr & 19 million absentee work days / yr
• Poorer health leads to less effective workers, more sickness days

 Case study Suicides at France Telecom – next slide

* “Managing mental health in the workplace”, A.Martin, M.Woods, S. Dawkins, p.75, Rotman Management 2016
** “The Trillion-dollar taboo: mential helath at work.” Financial Times 13-14 July, 2019
 Work Place Health
What is the business impact?

 Case study: Suicides at France Telecom

1. Is the leadership of France Telecom responsible for the suicides at the company?

2. Do you agree with the solution introduced by new CEO Stephane Ricard that 1,100 top managers have 30-50% of their salary
linked to social performance as well as financial results?

 Work in seven groups in the break-out rooms and spend 20 minutes agreeing your answers to the above
questions.
 We will have an open discussion on these questions

O MS x7
UT R O
R E AKO
B
 Work Place Health
What is the business impact?

 Is the leadership of France Telecom responsible for the suicides at the company?

Yes No
o company has been putting too much o Suicides in line with national average
stress on employees o Need to address financial issues
o Employees bullied o Employees also had personal issues
o Xxx o Government also responsible

POLL
 Work Place Health
What is the business impact?

 Do you agree with the solution introduced by new CEO Stephane Ricard that 1,100
top managers have 30-50% of their salary linked to social performance as well as
financial results?

Yes No

o Convince shareholders by arguing o Shareholders want financial performance

from long-term o Incentive linked to social performance
o Social performance closely related to
should be lower otherwise impact on
company performance
o Force managers to think socially and financial results
o Employees would not give real feedback
improve reputation of company

POLL
 Work Place Health
Recent examples of workplace health in professional and Olympic sports

POLL
 Work Place Health
Recent examples of workplace health in professional and Olympic sports

 Do you agree with Simone Biles’ and Naomi Osaka’s decisions?

Yes No

o Xxx o Xxx
o Xx o Xx
o xxx o xxx
o Xxx o Xxx
o Xxx o Xxx
 Reading and preparations for Class 3a

 Reading and preparations for Class 3a:

 Read the case Camino Therapeutics (A)

 Prepare the debate position ‘for’ and ‘against’ on the question allocated to your team.

 Questions:
1. Chris should talk to Ben and tell him about the mail – Teams 1 & 2
2. Chris should reply to Susan Carpenter – Teams 3 & 4
3. Chris should inform the police about the email – Teams 5 & 6

 Your team should prepare and allocate roles for:

 Opening statement
 Argument 1 Max 2 minutes each
 Argument 2
 Argument 3
 Closing Statement
 Please submit your Powerpoint with your team arguments ‘for’ and ‘against’ 24 hours before the next class