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.

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?

MAN3509 - Business Ethics | Risa Virgosita, S.E., M.Sc.

Key Concepts
Discrimination
The wrongful act of distinguishing illicitly among people not on the basis of individual merit, but on the basis of prejudice or some other invidious or morally reprehensible attitude

Basic elements of discrimination in employment

1. A decision against one or more employees that is not based on individual merit 2. The decision derives solely or in part of morally unjustified attitude (false stereotypes, etc) against members of the class to which the employee belongs 3. The decision has a harmful impact on the interests of the employees
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Forms of Discrimination
Intentional and Institutional Aspects of Discrimination 1. Intentionally isolated (non-institutionalized) discriminatory behavior 2. Intentionally institutionalized discriminatory behavior 3. Unintentionally isolated (non-institutionalized) discriminatory behavior 4. Unintentionally institutionalized discriminatory behavior
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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. Average benefits b. Proportion of the groups in the lowest levels of the institutions c. Proportion of the groups that hold more advantageous position
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Discrimination: Its Extent

Glass Ceiling: An invisible, but impenetrable, 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
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Discrimination: Utility, Rights, and Justice Arguments Against Discrimination Utility:

Discrimination leads to inefficient use of human resources A societys 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
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Discrimination: Utility, Rights, and Justice Criticisms on Arguments Against Discrimination Utility :
How if in certain situation, 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?
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Discrimination Practices
Recruitment Practices Screening Practices Promotion Practices Conditions of Employment Discharge

Sexual Harrasment Under certain conditions, unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature
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Discrimination Practices
Besides race and sex, discrimination can be based on Age Sexual orientation Transsexual status Disability Obesity Disease (AIDS, Hepatitis, etc)

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MAN3509 - Business Ethics | Risa Virgosita, S.E., M.Sc.

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- to make employment decisions.

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MAN3509 - Business Ethics | Risa Virgosita, S.E., M.Sc.

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, not to be generalized

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MAN3509 - Business Ethics | Risa Virgosita, S.E., M.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.g. 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
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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

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MAN3509 - Business Ethics | Risa Virgosita, S.E., M.Sc.

Implementing Affirmative Action and Managing Diversity

Guidelines to an affirmative program when minorities are underrepresented 1. 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, then the minority should be preferred
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Implementing Affirmative Action and Managing Diversity (contd)

Guidelines to an affirmative program when minorities are underrepresented (contd) 3. If both the minority and nonminority candidates are adequately qualified for a position but the nonminority candidate is much more qualified, 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 firms efficiency, then the more qualified nonminority should be preferred, and vice versa
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Implementing Affirmative Action and Managing Diversity (contd)

Guidelines to an affirmative program when minorities are underrepresented (contd) 4. 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

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MAN3509 - Business Ethics | Risa Virgosita, S.E., M.Sc.

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
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Source
Velasquez, Manuel G., 2006, Business Ethics: Concepts and Cases, 6th edition, NJ: Pearson Prentice Hall.

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MAN3509 - Business Ethics | Risa Virgosita, S.E., M.Sc.