Chapter 6

Chapter 06 - Ethical Decision-Making: Employer Responsibilities and Employee Rights
Chapter 06
Ethical Decision-Making: Employer Responsibilities and Employee
Rights
True/False Questions
1. The most important influence on workers’ commitment is salary.

Answer: False
Difficulty: Easy
Learning Objective: 06-01
Topic: Ethical Issues in the Workplace: The Current Environment
Bloom’s Taxonomy: Remember
AACSB: Analytic
Page: 265
Feedback: When asked about the greatest influence on their commitment, workers responded
that the most important factor is fairness at work, followed by care and concern for employees
—all key components of an ethical working environment.
2. Employees have a universal right to a “happy” workplace.

Answer: False
Difficulty: Easy
AACSB: Analytic
Page: 265
Feedback: While no one is claiming that employees have some universal right to a “happy”
workplace, a comprehensive review of research by Jeffrey Pfeffer suggests that effective firms
are characterized by a set of common practices, all of which involve treating employees in
humane and respectful ways.
3. Rewards and compensation structures have no impact on the emotions of workers.

Answer: False
Difficulty: Easy
AACSB: Analytic
Page: 265
Feedback: Rewards and compensation structures can clearly impact the emotions of workers,
as can the composition of teams or the power relationships within a workplace.
4. Employment security is the most significant aspect of work from the employee’s ethical
perspective.
Answer: True
6-1
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Difficulty: Easy
Topic: Due Process and Just Cause
AACSB: Analytic
Page: 267
Feedback: Employment security—getting and keeping a job—is perhaps the most significant
aspect of work from the employee's ethical perspective.
5. In legal contexts, due process is the right to be protected against the arbitrary use of
authority.
Answer: False
Difficulty: Easy
AACSB: Analytic
Page: 267
Feedback: Philosophically, the right of due process is the right to be protected against the
arbitrary use of authority. In legal contexts, due process refers to the procedures that police
and courts must follow in exercising their authority over citizens.
6. A mistreatment needs to be physically threatening to be termed as “bullying.”

Answer: False
Difficulty: Easy
AACSB: Analytic
Page: 267-268
Feedback: “Bullying” in the workplace is defined as “the repeated, malicious, health-
endangering mistreatment of one employee . . . by one or more employees.” The mistreatment
need not be physically threatening, but might simply involve a boss who is constantly yelling
dictates at workers, or a coworker who spreads rumors about another in order to sabotage his
position.
7. The doctrine of ‘employment at will’(EAW) holds that unless an agreement specifies

otherwise, employers are free to fire an employee at any time and for any reason.
Answer: True
Difficulty: Medium
AACSB: Analytic
Page: 269-270
Feedback: Employment at will holds that, in the absence of a particular contractual or other
6-2
legal obligation that specifies the length or conditions of employment, all employees are
employed “at will.” This means that, unless an agreement specifies otherwise, employers are
free to fire an employee at any time and for any reason.
8. When the employer is the government, constitutional limitations on government authority

are extended into the workplace to protect employees.
Answer: True
Difficulty: Easy
AACSB: Analytic
Page: 270
Feedback: When the employer is the government, constitutional limitations on government
authority are extended into the workplace to protect employees.
9. If a firm decides to retain employees on the basis of longevity with the firm, and the
retained employees are mostly of the male gender, then legally, the firm will not be violating
any regulations.
Answer: False
Difficulty: Easy
Topic: Downsizing
AACSB: Analytic
Page: 275
Feedback: From a legal perspective, the decision about whom to include in a downsizing
effort must be carefully planned. If the firm's decision is based on some criterion that seems to
be neutral on its face, such as seniority, but the plan results in a different impact on one group
than another, the decision may be suspect. In this case of retention based on longevity, the
effort may violate Title VII’s prohibition against discrimination based on gender because the
termination policy has a more significant—and negative—impact on women.
10. “Sweatshops” lack even the most basic health and safety protections.
Answer: True
Difficulty: Easy
Topic: Health and Safety
AACSB: Analytic
Page: 276
Feedback: In some regions, employees lack even the most basic health and safety protections,
such as in working environments that are often termed “sweatshops.”
11. The life of one who dies in a workplace accident has instrumental value that can be
measured, in part, by the lost wages that would have been earned had that person lived.
6-3
Answer: True
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: The life of one who dies in a workplace accident has instrumental value that can be
measured, in part, by the lost wages that would have been earned had that person lived.
12. “Relative risks” is determined by comparing the probabilities of harm involved in various
activities.
Answer: True
Difficulty: Easy
Topic: Health and Safety as Acceptable Risk
AACSB: Analytic
Page: 276
Feedback: “Risks” can be defined as the probability of harm, and we determine “relative
risks” by comparing the probabilities of harm involved in various activities.
13. Standards are fundamentally a social approach that can address public policy questions
ignored by markets.
Answer: True
Difficulty: Easy
Topic: Health and Safety as Market Controlled
AACSB: Analytic
Page: 282
Feedback: Standards can be set according to the best available scientific knowledge and thus
overcome market failures that result from insufficient information. Standards prevent
employees from having to face the fundamentally coercive choice between job and safety.
Standards also address the first generation problem by focusing on prevention rather than
compensation after the fact. Finally, standards are fundamentally a social approach that can
address public policy questions ignored by markets.
14. The “feasibility” approach to standards allows OSHA to make tradeoffs between health
and economics.
Answer: True
Difficulty: Easy
Topic: Health and Safety—Government-Regulated Ethics
AACSB: Analytic
Page: 282
6-4
Feedback: When OSHA was first established, regulations were aimed at achieving the safest
feasible standards. This “feasibility” approach allows OSHA to make tradeoffs between health
and economics.
15. It is discriminatory to refuse to hire someone about whom you simply have a “bad
feeling,” even if that bad feeling is not based on their difference in race or gender.
Answer: False
Difficulty: Easy
Topic: Diversity
AACSB: Analytic
Page: 296
Feedback: It is not discriminatory to refuse to hire someone about whom you simply have a
“bad feeling,” unless that bad feeling is based on their difference in race or gender.
Multiple Choice Questions
16. Some employers might decide to treat employees well as a means to produce greater
workplace harmony and productivity. This approach is reminiscent of _____ ethics.
a. deontological
b. utilitarian
c. normative
d. Kantian
Answer: b
Difficulty: Easy
AACSB: Analytic
Page: 265
Feedback: There are two very distinct, and sometimes competing, perspectives on the ethics
of workplace relationships. Some employers might decide to treat employees well as a means
to produce greater workplace harmony and productivity. This consequentialist approach could
be reminiscent of the utilitarian ethics.
17. Some employers emphasize the rights and duties of all employees, and treat employees
well simply because “it is the right thing to do.” Identify the ethical approach for this
perspective.
a. Prescriptive ethics
b. Utilitarianism
c. Deontological ethics
d. Classicism
Answer: c
Difficulty: Easy
6-5

AACSB: Remember
Page: 266
Feedback: There are two very distinct, and sometimes competing, perspectives on the ethics
of workplace relationships. Some employers might treat employees well out of a Kantian
sense of duty and rights, regardless of the either utilitarian or self-interested productivity
consequences. This deontological approach emphasizes the rights and duties of all employees,
and treating employees well simply because “it is the right thing to do.”
18. Philosophically, the right of _____ is the right to be protected against the arbitrary use of
authority.
a. continuance
b. freedom of association
c. due process
d. self-determination
Answer: c
Difficulty: Easy
AACSB: Analytic
Page: 267
19. Which of the following statements is true about the right of due process?
a. In legal contexts, due process refers to the procedures that police and courts must follow in
exercising their authority over citizens.
b. Few dispute that the state, through its police and courts, has the authority to punish citizens.
This authority of the state is the right of due process.
c. Due process in the workplace acknowledges employees’ authority over an employer.
d. In legal contexts, due process refers to the unlimited authority that police and courts have
over citizens, to create a safe and orderly society.
Answer: a
Difficulty: Medium
Bloom’s Taxonomy: Understand
AACSB: Analytic
Page: 267
6-6
20. Identify the correct statement about “bullying.”

a. The mistreatment of an employee needs to be physically threatening to be termed as
bullying.
b. Bullying does not involve a boss who is constantly yelling dictates at workers because that
is his job.
c. When a coworker spreads rumors about another in order to sabotage his position, he is not
regarded as bullying as he is not higher than the other employee in the hierarchy of authority.
d. Bullying can lead to a complete loss of personal dignity, intimidation, and fear.
Answer: d
Difficulty: Medium
AACSB: Analytic
Page: 268
Feedback: “Bullying” in the workplace is defined as “the repeated, malicious, health-
endangering mistreatment of one employee by one or more employees.” The mistreatment
need not be physically threatening, but might simply involve a boss who is constantly yelling
dictates at workers, or a coworker who spreads rumors about another in order to sabotage his
position. These behaviors lead not only to emotional abuse but a complete loss of personal
dignity, intimidation, and fear.
21. The issue of workplace bullying is more predominant in the service sector because:
a. it lacks the right of due process.
b. that work relies significantly on interpersonal relationships and interaction.
c. of its strong hierarchy of authority.
d. most of the organizations in this sector are decentralized.
Answer: b
Difficulty: Medium
AACSB: Analytic
Page: 269
Feedback: The issue of workplace bullying is more predominant in the service sector because
that work relies significantly on interpersonal relationships and interaction.
22. Identify the doctrine which holds that employers are free to fire an employee at any time
and for any reason, unless an agreement specifies otherwise.
a. The doctrine of estoppel
b. The doctrine of constructive notice
c. The doctrine of constructive dismissal
d. The doctrine of employment at will
Answer: d
Difficulty: Easy
6-7

AACSB: Analytic
Page: 269-270
Feedback: Employment at will (EAW) holds that, absent a particular contractual or other legal
obligation that specifies the length or conditions of employment, all employees are employed
“at will.” This means that, unless an agreement specifies otherwise, employers are free to fire
an employee at any time and for any reason.
23. Which of the following statements about the doctrine of employment at will (EAW) is
true?
a. Employment at will holds that employers can fire an employee at any time, but have to
provide them with a valid reason.
b. The freedom to terminate the employer-employee relationship is mutual, both theoretically
and practically.
c. The ethical rationale for EAW has both utilitarian and deontological elements.
d. Civil rights laws are not an exception to the EAW because it prohibits firing someone on
the basis of membership in certain prohibited classes.
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 270
Feedback: The ethical rationale for EAW, both historically and among contemporary
defenders, has both utilitarian and deontological elements.
24. During the process of downsizing, allowing a worker to remain in a position for a period
of time once she or he has been notified of impending termination might not be the best
option. Identify the correct justification for this statement.
a. Workers will interpret early notice as an effort to allow them time to come to grips with the
loss of their jobs.
b. Terminated workers will not be inclined to put their best effort, which might result in lost
revenues.
c. Workers who are not terminated will have a bad impression about the organization for
terminating their coworkers.
d. Terminated workers may interpret early notice as an effort to get the most out of them
before departure.
Answer: d
Difficulty: Medium
Topic: Downsizing
AACSB: Analytic
6-8
Page: 273
Feedback: Allowing a worker to remain in a position for a period of time once she or he has
been notified of impending termination might not be the best option. Workers may interpret
early notice as an effort to get the most out of them before departure rather than an effort to
allow them time to come to grips with the loss of their jobs.
25. In some regions, employees lack even the most basic health and safety protections in their
workplaces. Such work environments are termed as _____.
a. op shops
b. holes-in-the-walls
c. haberdasheries
d. sweatshops
Answer: d
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: Within the United States and throughout many other countries with developed
economies, there is a wide consensus that employees have a fundamental right to a safe and
healthy workplace. In some other regions, employees lack even the most basic health and
safety protections, such as in working environments that are often termed “sweatshops.”
26. The life of one who dies in a workplace accident has _____ value that can be measured, in
part, by the lost wages that would have been earned had that person lived.
a. absolute
b. instrumental
c. intrinsic
d. extrinsic
Answer: b
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: Health and safety are also valuable in and of themselves. They have intrinsic value
in addition to their instrumental value. To understand this distinction, consider how one might
respond to the question of how much her or his life is worth. But these lost wages do not
measure the intrinsic value of the life, something that financial compensation simply cannot
replace.
27. The _____ value of the life is something that financial compensation cannot replace.
a. absolute
b. instrumental
6-9
c. intrinsic
d. extrinsic
Answer: c
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: Health and safety are also valuable in and of themselves. They have intrinsic value
in addition to their instrumental value. To understand this distinction, consider how one might
respond to the question of how much her or his life is worth. But these lost wages do not
measure the intrinsic value of the life, something that financial compensation simply cannot
replace.
28. Which of the following is true of health and safety at the workplace?
a. Health and safety have instrumental value and intrinsic value.
b. Employers are responsible to provide a completely safe and healthy workplace.
c. Financial compensation can replace the value of life lost due to lack of health and safety
measures.
d. Employers do not have the right to fire employees on grounds of health and safety.
Answer: a
Difficulty: Medium
AACSB: Analytic
Page: 276
Feedback: Health and safety have intrinsic value in addition to their instrumental value. To
understand this distinction, consider how one might respond to the question of how much her
or his life is worth. But these lost wages do not measure the intrinsic value of the life,
something that financial compensation simply cannot replace.
29. With regard to health and safety at workplace, _____ can be defined as the probability of
harm.
a. obstacles
b. impediments
c. risks
d. barriers
Answer: c
Difficulty: Easy
AACSB: Analytic
Page: 276
6-10
Feedback: Employers cannot be responsible for providing an ideally safe and healthy
workplace. Instead, discussions in ethics about employee health and safety will tend to focus
on the relative risks workers face and the level of acceptable workplace risk. “Risks” can be
defined as the probability of harm, and we determine “relative risks” by comparing the
probabilities of harm involved in various activities.
30. With regard to health and safety at workplace, _____ can be determined by comparing the
a. variable obstacles
b. absolute impediments
c. relative risks
d. comparative barriers
Answer: c
Difficulty: Easy
AACSB: Analytic
Page: 276
on the relative risks workers face and the level of acceptable workplace risk. “Risks” can be
defined as the probability of harm, and we determine “relative risks” by comparing the
31. Discussions in ethics about employee health and safety tend to focus on the relative risks
workers face and the level of acceptable workplace risk because:
a. workers’ compensation is easier to calculate.
b. employers cannot be responsible for providing an ideally safe and healthy workplace.
c. insurance laws mandate the focus on relative risks and acceptability of workplace risk.
d. it results in a completely safe and healthy workplace.
Answer: b
Difficulty: Medium
AACSB: Analytic
Page: 276
on the relative risks workers face and the level of acceptable workplace risk.
32. Comparison of the probabilities of harm involved in various activities would determine
the _____.
a. acceptable level of risks
b. absolute risks
6-11
c. speculative risks
d. relative risks
Answer: d
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: “Risks” can be defined as the probability of harm, and we determine “relative
risks” by comparing the probabilities of harm involved in various activities.
33. When can we conclude that an activity has an “acceptable level of risk?”
a. If it can be determined that the probability of harm involved in a specific work activity is
manageable.
b. If the probability of harm involved in a specific work activity is acceptable by insurance
and workers’ compensation laws.
c. If it can be determined that the probability of harm involved in a specific work activity is
equal to or less than the probability of harm of some more common activity.
d. If the employers are willing to compensate the harm caused to workers for a specific
activity.
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 278
Feedback: If it can be determined that the probability of harm involved in a specific work
activity is equal to or less than the probability of harm of some more common activity, then
we can conclude that this activity faces an “acceptable level of risk.”
34. Which of the following approaches to health and safety at the workplace can be
considered paternalistic decision making which treats employees like children and makes
crucial decisions for them?
a. Government-regulated ethics approach
b. Diversifiable risk approach
c. Acceptable level of risk approach
d. Market controlled approach
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 278-279
6-12
Feedback: Acceptable level of risk approach treats employees disrespectfully by ignoring

their input as stakeholders. Such paternalistic decision making effectively treats employees
like children and makes crucial decisions for them, ignoring their role in the decision-making
process.
35. Which of the following is true of the acceptable risk approach to health and safety?
a. It is a liberal approach to health and safety that allows employees to recognize the risk they
are likely to face.
b. It involves the determination of “relative risks,” the calculation of which is a complicated
process and not always reliable.
c. It treats employees disrespectfully by ignoring their input as stakeholders.
d. It assumes differences between workplace risks and other types of risks when there are
significant similarities between them.
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 278
Feedback: One of the challenges to the acceptable risk approach to health and safety is that it
treats employees disrespectfully by ignoring their input as stakeholders.
36. Identify the challenge faced by the acceptable risk approach to health and safety.
a. It is a liberal approach to health and safety that allows employees to recognize the risk they
are likely to face.
b. It involves the determination of “relative risks,” the calculation of which is a complicated
process and not always reliable.
c. It assumes differences between workplace risks and other types of risks when there are
significant similarities between them.
d. It ignores the fundamental deontological right an employee might have to a safe and
healthy working environment.
Answer: d
Difficulty: Medium
AACSB: Analytic
Page: 279
Feedback: One of the challenges to the acceptable risk approach to health and safety is that it
ignores the fundamental deontological right an employee might have to a safe and healthy
working environment.
37. Which of the following statements is true about the market controlled approach to health
and safety?
a. It treats employees disrespectfully by ignoring their input as stakeholders.
6-13
b. In this approach, employees are free to choose the risks they are willing to face by
bargaining with employers.
c. It assumes an equivalency between workplace risks and other types of risks when there are
significant differences between them.
d. It calls for the determination of comparison of probabilities of harm involved in various
activities.
Answer: b
Difficulty: Medium
AACSB: Analytic
Page: 279
Feedback: Defenders of the free market and the classical model of corporate social
responsibility would favor individual bargaining between employers and employees as the
approach to workplace health and safety. On this account, employees would be free to choose
the risks they are willing to face by bargaining with employers.
38. Enlightened self-interest would be a valuable theory to introduce and apply in the _____
approach to health and safety.
a. market controlled
b. integrative
c. acceptable risk
d. government-regulated
Answer: a
Difficulty: Easy
AACSB: Analytic
Page: 281
Feedback: The free market approach has a number of serious problems. Labor markets are not
perfectly competitive and free. Employees do not have the kinds of free choices that the free
market theory would require in order to attain optimal satisfactions—though enlightened self-
interest would be a valuable theory to introduce and apply in this environment, it is unrealistic
to presume employees always have the choices available to them that make it possible.
39. Which of the following problems are associated with the market controlled approach to
health and safety?
a. Employees do not know the risks involved in a job and therefore are not in a position to
freely bargain for appropriate wages.
b. It ignores the fundamental deontological right an employee might have to a safe and
healthy working environment.
c. It assumes an equivalency between workplace risks and other types of risks when there are
significant differences between them.
d. It treats employees disrespectfully by ignoring their input as stakeholders.
6-14
Answer: a
Difficulty: Medium
AACSB: Analytic
Page: 281
Feedback: Employees seldom possess the kind of complete information efficient markets
require. If employees do not know the risks involved in a job, they will not be in a position to
freely bargain for appropriate wages and therefore they will not be in a position to effectively
protect their rights or ensure the most ethical consequences.
40. Identify the correct statement about government standards in the government-regulated
ethics approach to health and safety.
a. Due to its focus on prevention rather than compensation, standards cannot address the “first
generation” problem of the market controlled approach to health and safety.
b. Standards would favor individual bargaining between employers and employees as the
approach to workplace health and safety.
c. Standards can overcome market failures that result from insufficient information.
d. Standards call for the determination of comparison of probabilities of harm involved in
various activities.
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 282
Feedback: Mandatory government standards address most of the problems raised against
market strategies. Standards can be set according to the best available scientific knowledge
and thus overcome market failures that result from insufficient information.
41. Identify the approach that allows the Occupational Safety and Health Administration
(OSHA) to make tradeoffs between health and economics.
a. Sustainability approach
b. Integrative approach
c. Market controlled approach
d. Feasibility approach
Answer: d
Difficulty: Easy
AACSB: Analytic
Page: 282
Feedback: When OSHA was first established, regulations were aimed at achieving the safest
6-15
feasible standards. This “feasibility” approach allows OSHA to make tradeoffs between health
and economics.
42. Critics in both industry and government argue that OSHA should aim to achieve the
optimal, rather than highest feasible, level of safety. Which of the following can be used to
achieve this goal?
a. Cost-utility analysis
b. Cost-minimization analysis
c. Cost-benefit analysis
d. Cost-effectiveness analysis
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 282
Feedback: Critics in both industry and government have argued that OSHA should be required
to use cost-benefit analysis in establishing such standards. These critics argue that OSHA
should aim to achieve the optimal, rather than highest feasible, level of safety.
43. Identify the distinguishing feature between cost-benefit analysis and cost-effectiveness.
a. Cost-effectiveness is ethically problematic.
b. Cost-benefit analysis adopts the most efficient means available to achieving a particular
standard.
c. Cost-benefit analysis is ethically problematic.
d. Cost-effectiveness uses economic criteria before setting the standards.
Answer: c
Difficulty: Medium
AACSB: Analytic
Page: 282
Feedback: A commitment to cost-effectiveness would require that, once the standards are set,
we adopt the least expensive and most efficient means available for achieving those standards.
Cost-benefit analysis, in contrast, uses economic criteria in setting the standards in the first
place. It is cost-benefit, not cost-effectiveness, analysis that is ethically problematic.
44. Which of the following statements is true about cost-benefit analysis?

a. It treats health and safety merely as an intrinsic value and denies its instrumental value.
b. It requires that an economic value be placed on one’s life and bodily integrity.
c. It adopts the least expensive and most efficient means available to achieve existing
standards.
d. It uses ethical criteria in setting standards.
Answer: b
6-16
Difficulty: Medium
AACSB: Analytic
Page: 282-283
Feedback: Cost-benefit analysis treats health and safety merely as an instrumental value and
denies its intrinsic value. It requires that an economic value be placed on one’s life and bodily
integrity.
45. According to the universal principle of Kantian philosophy, the ethical obligation of _____
should guide employment interactions.
a. family responsibilities
b. respect for people
c. religion
d. core customs
Answer: b
Difficulty: Easy
Topic: Global Applications: The Global Workforce and Global Challenges
AACSB: Analytic
Page: 287
Feedback: Some scholars have argued that Kantian universal principles should govern the
employment relationship and that the ethical obligation of respect for persons should guide
the employment interactions.
46. The ‘Tripartite’ part of the Tripartite Declaration of Principles Concerning Multinational
Enterprises and Social Policy refers to critical cooperation necessary from all of the following
except:
a. governments.
b. employers’ and workers’ organizations.
c. multinational enterprises involved.
d. the suppliers and agents associated with the firm.
Answer: d
Difficulty: Easy
AACSB: Analytic
Page: 288
Feedback: The “Tripartite” part of the title refers to the critical cooperation necessary from
governments, employers’ and workers’ organizations, and the multinational enterprises
involved.
47. The Title VII of the _____, passed in 1964, created the prohibited classes of
6-17
discrimination.
a. International Labour Act
b. United States Civil Rights Act
c. Equal Employment Opportunity Commission Act
d. Uniform Employment Termination Act
Answer: b
Difficulty: Easy
Topic: Discrimination
AACSB: Analytic
Page: 290
Feedback: The courts have carefully construed legal precedent in the decades since Title VII
of the United States Civil Rights Act was passed in 1964 and created the prohibited classes of
discrimination.
48. Which of the following is discrimination against those traditionally considered to be in

power or the majority?
a. Reverse discrimination
b. Affirmative action
c. Inverse discrimination
d. Backward discrimination
Answer: a
Difficulty: Easy
Topic: Affirmative Action
AACSB: Diversity
Page: 298
Feedback: Reverse discrimination is discrimination against those traditionally considered to
be in power or the majority, such as white men.
49. Which of the following is an example of reverse discrimination in America?

a. An African-American interviewer rejects another African-American based on ethnicity.
b. A female interviewer rejects a male interviewee because of gender.
c. A white interviewer rejects an African-American based on ethnicity.
d. A female interviewer rejects another female interviewee because of gender.
Answer: b
Difficulty: Medium
Bloom’s Taxonomy: Apply
AACSB: Diversity; Reflective Thinking
Page: 298
6-18
50. An organization, in an attempt to avoid discrimination suits filed against it, intentionally
hires a lot of African-American women, and a few disabled people. Which of the following is
most likely to occur?
a. The performance of the organization will increase.
b. The organization will win an award for equity.
c. There will be an increase in the number of diversity training sessions.
d. A white man or a woman will file a reverse discrimination suit.
Answer: d
Difficulty: Medium
Bloom’s Taxonomy: Apply
AACSB: Diversity; Reflective Thinking
Page: 298
Feedback: Discrimination against those traditionally considered being in power or the
majority, such as white men, is termed as reverse discrimination. A business that intentionally
seeks to hire a candidate from an underrepresented group might be seen as discriminating
against white males, for example.
51. Which of the following refers to a policy or a program that tries to respond to instances of
past discrimination by implementing proactive measures to ensure equal opportunity today?
a. Gentrification
b. Bully Broads
c. Just cause
d. Affirmative action
Answer: d
Difficulty: Easy
AACSB: Analytic
Page: 298
Feedback: The term affirmative action refers to a policy or a program that tries to respond to
instances of past discrimination by implementing proactive measures to ensure equal
opportunity today.
52. All of the following are ways through which affirmative action can arise at the workplace
except:
a. through legal requirements.
b. through judicial affirmative action.
c. consultant based affirmative action.
d. voluntary affirmative action plans.
Answer: c
Difficulty: Easy
6-19

AACSB: Analytic
Page: 299
Feedback: Affirmative action arises in the workplace in three ways. The first way is through
legal requirements. Courts may also require what is termed “judicial affirmative action” in
order to remedy a finding of past discrimination. A third form of affirmative action involves
voluntary affirmative action plans.
53. The law relating to affirmative action applies only to about 20 percent of the workforce
who are subject to Executive Order 11246, which requires affirmative action efforts to ensure
equal opportunity. Which of the following is required by courts in order to remedy a finding
of past discrimination, when Executive Order 11246 is not applicable?
a. Voluntary affirmative action
b. Judicial affirmative action
c. Quasi-affirmative action
d. Executive affirmation action
Answer: b
Difficulty: Medium
AACSB: Analytic
Page: 299
Feedback: Much of the law relating to affirmative action applies only to about 20 percent of
the workforce, however: those employees of federal contractors with 50 or more employees
who are subject to Executive Order 11246, which requires affirmative action efforts to ensure
equal opportunity. Where Executive Order 11246 does not apply, courts may also require what
is termed “judicial affirmative action” in order to remedy a finding of past discrimination.
54. Which of the following affirmative action plans would include training plans and
programs, focused recruiting activity, or the elimination of discrimination?
a. Quasi-affirmative action
b. Executive affirmation action
c. Judicial affirmative action
d. Voluntary affirmative action
Answer: d
Difficulty: Easy
AACSB: Analytic
Page: 299
Feedback: A form of affirmative action involves voluntary affirmative action plans employers
undertake to overcome barriers to equal opportunity. These might include training plans and
programs, focused recruiting activity, or the elimination of discrimination that might be
6-20
caused by hiring criteria that exclude a particular group.
55. A claim which states that people who ‘pay’ for wrongs are unfairly burdened and should
not bear the responsibility for the acts of others, is opposing _____.
a. reverse discrimination
b. judicial activity within organizations
c. affirmative action
d. authoritative leadership
Answer: c
Difficulty: Easy
AACSB: Analytic
Page: 299
Feedback: Opponents to affirmative action argue that it translates into current punishment of
past wrongs and therefore is inappropriately placed because those who “pay” for the wrongs
are unfairly burdened and should not bear the responsibility for the acts of others.
Fill in the Blank Questions
56. The doctrine of _____ holds that, unless an agreement specifies otherwise, employers are
free to fire an employee at any time and for any reason.
Answer: employment at will
Difficulty: Easy
AACSB: Analytic
Page: 269-270
Feedback: Employment at will (EAW) holds that, absent a particular contractual or other legal
obligation that specifies the length or conditions of employment, all employees are employed
“at will.” This means that, unless an agreement specifies otherwise, employers are free to fire
an employee at any time and for any reason.
57. EAW is the default position on which courts will rely until and unless an exception can be
demonstrated. The burden of proof lies with the dismissed employee to show that she or he
was unjustly or illegally fired. Due process and _____, whether instituted as part of internal
corporate policy or through legislation, would reverse this burden of proof and require
employers to show cause to justify the dismissal of an employee.
Answer: just cause
Difficulty: Easy
6-21
AACSB: Analytic
Page: 270
Feedback: EAW is the default position on which courts will rely until and unless an exception
can be demonstrated. The burden of proof lies with the dismissed employee to show that she
or he was unjustly or illegally fired. Due process and just cause, whether instituted as part of
internal corporate policy or through legislation, would reverse this burden of proof and
require employers to show cause to justify the dismissal of an employee.
58. The life of one who dies in a workplace accident has _____ value that can be measured, in
part, by the lost wages that would have been earned had that person lived.
Answer: instrumental
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: The life of one who dies in a workplace accident has instrumental value that can be
measured, in part, by the lost wages that would have been earned had that person lived. But
these lost wages do not measure the intrinsic value of the life, something that financial
compensation simply cannot replace.
59. For employee health and safety in the workplace, “_____” is determined by comparing the
Answer: relative risks
Difficulty: Easy
AACSB: Analytic
Page: 276
Feedback: For employee health and safety in the workplace, “risks” can be defined as the
probability of harm, and “relative risks” is determined by comparing the probabilities of harm
involved in various activities.
60. In 1970, the U.S. Congress established the _____ and charged it with establishing
workplace health and safety standards.
Answer: Occupational Safety and Health Administration (OSHA)
Difficulty: Easy
AACSB: Analytic
Page: 282
Feedback: In 1970, the U.S. Congress established the Occupational Safety and Health
Administration (OSHA) and charged it with establishing workplace health and safety
6-22
standards.
61. A commitment to using _____ for setting standards would require that, once the standards
are set, we adopt the least expensive and most efficient means available for achieving those
standards.
Answer: cost-effectiveness
Difficulty: Easy
AACSB: Analytic
Page: 282
Feedback: A commitment to cost-effectiveness would require that, once the standards are set,
we adopt the least expensive and most efficient means available for achieving those standards.
62. The use of _____ analysis in setting workplace health and safety standards commits us to
treating worker health and safety as just another commodity, another individual preference, to
be traded off against competing commodities.
Answer: cost-benefit
Difficulty: Easy
AACSB: Analytic
Page: 282
Feedback: The use of cost-benefit analysis in setting workplace health and safety standards
commits us to treating worker health and safety as just another commodity, another individual
preference, to be traded off against competing commodities.
63. _____ refers to the presence of differing cultures, languages, ethnicities, races, affinity
orientations, genders, religious sects, abilities, social classes, ages, and national origins of the
individuals in a firm.
Answer: Diversity
Difficulty: Easy
Topic: Diversity
AACSB: Analytic
Page: 294
Feedback: Diversity refers to the presence of differing cultures, languages, ethnicities, races,
affinity orientations, genders, religious sects, abilities, social classes, ages, and national
origins of the individuals in a firm.
64. _____ is discrimination against those traditionally considered to be in power or the

majority.
Answer: Reverse discrimination
6-23
Difficulty: Easy
AACSB: Analytic
Page: 298
65. The term _____ refers to a policy or a program that tries to respond to instances of past
discrimination by implementing proactive measures to ensure equal opportunity today.
Answer: affirmative action
Difficulty: Easy
AACSB: Analytic
Page: 298
Feedback: The term affirmative action refers to a policy or a program that tries to respond to
opportunity today.
Essay Questions
66. Describe in brief, the two approaches to employee treatment discussed in this chapter.
Answer: There are two very distinct, and sometimes competing, perspectives on the ethics of
workplace relationships. On one hand, employers might decide to treat employees well as a
means to produce greater workplace harmony and productivity. This approach could be
termed as utilitarian or instrumentalist, self-interest depending on the perception. Research
suggests that effective firms are characterized by a set of common practices, all of which
involve treating employees in humane and respectful ways. Though it is a relatively new area
of research, studies suggest that managers can have a significant impact on the emotions of
their workers, and this impact can greatly affect productivity and loyalty, as well as
perceptions of fairness, care, and concern.
On the other hand, of course, employers might treat employees well out of a Kantian sense of
duty and rights, regardless of the either utilitarian or self-interested productivity
consequences. This deontological approach emphasizes the rights and duties of all employees,
and treating employees well simply because “it is the right thing to do.” Defenders of
employee rights argue that rights should protect important employee interests from being
constantly subjected to utilitarian and financial calculations. This sense of duty might stem
from the law, professional codes of conduct, corporate codes of conduct, or such moral
principles as fairness, justice, or human rights on the part of the organization's leadership.
Difficulty: Medium
6-24

AACSB: Analytic
Page: 266
67. Correlate the right of due process to the workplace.

Answer: Philosophically, the right of due process is the right to be protected against the
and courts must follow in exercising their authority over citizens. Few dispute that the state,
through its police and courts, has the authority to punish citizens. This authority creates a safe
and orderly society in which we all can live, work, and do business. But that authority is not
unlimited; it can be exercised only in certain ways and under certain conditions. Due process
rights specify these conditions.
Similarly, due process in the workplace acknowledges an employer's authority over
employees. Employers can tell employees what to do and when and how to do it. They can
exercise such control because they retain the ability to discipline or fire an employee who
does not comply with their authority. Because of the immense value that work holds for most
people, the threat of losing one's job is a powerful motivation to comply. However, basic
fairness—implemented through due process—demands that this power be used justly.
Difficulty: Medium
AACSB: Analytic
Page: 267
68. Discuss the various aspects associated with employment at will (EAW).
Answer: Employment at will (EAW) holds that, in the absence of a particular contractual or
other legal obligation that specifies the length or conditions of employment, all employees are
employed "at will." In the same manner, an EAW worker may opt to leave a job at any time
for any reason, without offering any notice at all; so the freedom is theoretically mutual.
The ethical rationale for EAW, both historically and among contemporary defenders, has both
utilitarian and deontological elements. EAW was thought to be an important management
tool. Total discretion over employment gives managers the ability to make efficient decisions
that should contribute to the greater overall good. It was thought that the manager would be in
the best position to know what was best for the firm and that the law should not interfere with
those decisions. Another basis for EAW was the rights of private property owners to control
their property by controlling who works for them.
Both legal and ethical analyses of these claims, however, demonstrate that there are good
reasons to limit EAW. Even if EAW proved to be an effective management tool, justice
demands that such tools not be used to harm other people. Further, even if private property
rights grant managers authority over employees, the right of private property itself is limited
by other rights and duties. Also, though the freedom to terminate the relationship is
theoretically mutual, the employer is often responsible for the employee's livelihood, while
the opposite is unlikely to be true; the differential creates an unbalanced power relationship
between the two parties.
Difficulty: Hard
6-25
Learning Objective: 06-03; 03-04

AACSB: Analytic
Page: 270
69. Discuss the crucial aspect of employment at will (EAW), where it is given first preference.
Answer: EAW has priority unless the employee can prove that her or his case falls under one
of the exceptions. That is, EAW is the default position on which courts will rely until and
unless an exception can be demonstrated. The burden of proof lies with the dismissed
employee to show that she or he was unjustly or illegally fired.
Due process and just cause, whether instituted as part of internal corporate policy or through
legislation, would reverse this burden of proof and require employers to show cause to justify
the dismissal of an employee.
Difficulty: Medium
AACSB: Analytic
Page: 270
70. Discuss in brief, the guidelines suggested for tackling downsizing within an organization.
Answer: First, the decision regarding downsizing should be made by a representative group so
that all stakeholder interests can be considered and to earn the trust of those who will be
impacted. The facts should be collected and issues should be determined. Since employees
should be kept aware of business conditions, the need for a downsizing effort should not come
as a great surprise. However, the question of notice is debatable.
Once the stakeholders are identified, it will be vital to enumerate any and all possible options
with regard to the downsizing efforts and to catalog the impact of each option on each group
of stakeholders. When a firm decides to downsize, as with any other termination it is critical
to lessen the impact as much as possible and to allow the terminated employees to depart with
dignity. Above all, during a time when relationships might be strained, it is critical to be
honest and forthright and to be sensitive to the experiences of those who will be affected.
From a legal perspective, the decision about whom to include in a downsizing effort must be
carefully planned. If the firm's decision is based on some criterion that seems to be neutral on
its face, such as seniority, but the plan results in a different impact on one group than another,
the decision may be suspect.
Difficulty: Medium
Topic: Downsizing
AACSB: Analytic
Page: 275
71. Discuss the issue of giving notice to the employees about organizational downsizing.
Answer: It can be argued that a firm should give notice of an intent to downsize as soon as the
6-26
need is determined, and let those who will be impacted know who will be let go as soon as
that list is devised. On the other hand, the uncertainty and rumors that are sure to develop
between the announcement of downsizing and the decision about who will be terminated may
outweigh the benefits gained in early notification. In addition, workers may interpret early
notice as an effort to get the most out of them before departure rather than an effort to allow
them time to come to grips with the loss of their jobs.
Difficulty: Medium
Topic: Downsizing
AACSB: Analytic
Page: 273
72. Correlate health and safety issues at workplace with ideals.

Answer: Like work, health and safety are “goods” that are valued both as a means for
attaining other valuable ends and as ends in themselves. Whatever else we desire out of life,
being healthy and safe makes it much more likely that we will be capable of attaining our
ends. In this sense, health and safety have a very high instrumental value since part of their
value derives from the fact that we use them to attain other things of value. Insurance
therefore seeks to compensate workers for injuries they incur by paying the employees for the
wages they lost as a result of being unable to work.
Yet health and safety are also valuable in and of themselves. They have intrinsic value in
addition to their instrumental value. To understand this distinction, consider how one might
respond to the question of how much her or his life is worth. The life of one who dies in a
workplace accident has instrumental value that can be measured, in part, by the lost wages
that would have been earned had that person lived. But these lost wages do not measure the
intrinsic value of the life, something that financial compensation simply cannot replace.
If “healthy” is taken to mean a state of flawless physical and psychological well-being,
arguably no one is perfectly healthy. If “safe” means completely free from risk, certainly no
workplace is perfectly safe. If health and safety are interpreted as ideals that are impossible to
realize, then it would be unreasonable to claim that employees have a right to a healthy and
safe workplace.
Difficulty: Medium
AACSB: Analytic
Page: 276
73. Remunerate the various problems associated with workplace health and safety as a market
controlled approach.
Answer: The free market approach has a number of serious problems. First, labor markets are
not perfectly competitive and free. Employees do not have the kinds of free choices that the
free market theory would require in order to attain optimal satisfactions—though enlightened
self-interest would be a valuable theory to introduce and apply in this environment, it is
unrealistic to presume employees always have the choices available to them that make it
6-27
possible.
Second, employees seldom, if ever, possess the kind of complete information efficient
markets require. If employees do not know the risks involved in a job, they will not be in a
position to freely bargain for appropriate wages and therefore they will not be in a position to
effectively protect their rights or ensure the most ethical consequences. This is a particular
concern when we recognize that many workplace risks are in no sense obvious.
Such market failures can have deadly consequences when they involve workplace health and
safety issues. Another issue is the aspect of the “first generation” problem. The means by
which the market gathers information is by observing the harms done to the first generation
exposed to imperfect market transactions. In effect, markets sacrifice the first generation in
order to gain information about safety and health risks. To the degree that these are important
questions that ought to be asked, individual bargaining will fail as an ethical public policy
approach to worker health and safety.
Difficulty: Medium
AACSB: Analytic
Page: 281
74. How do mandatory government standards work?

Answer: Mandatory government standards address most of the problems raised against market
strategies. Standards can be set according to the best available scientific knowledge and thus
overcome market failures that result from insufficient information. Standards prevent
employees from having to face the fundamentally coercive choice between job and safety.
Standards also address the first generation problem by focusing on prevention rather than
compensation after the fact. Finally, standards are fundamentally a social approach that can
address public policy questions ignored by markets.
Difficulty: Easy
AACSB: Analytic
Page: 282
75. Explain the concept of standards and cost-benefit analysis. Discuss the advantages of cost-
effectiveness as against the cost-benefit analysis.
Answer: In 1970, the U.S. Congress established the Occupational Safety and Health
Administration (OSHA) and charged it with establishing workplace health and safety
standards. The “feasibility” approach allows OSHA to make tradeoffs between health and
economics, but it is prejudiced in favor of health and safety by placing the burden of proof on
industry to show that high standards are not economically feasible. Some critics charge that
this approach does not go far enough and unjustly sacrifices employee health and safety. From
that perspective, industries that cannot operate without harming the health and safety of its
employees should be closed. But the more influential business criticism has argued that these
standards go too far. Critics in both industry and government have argued that OSHA should
6-28
be required to use cost-benefit analysis in establishing such standards. From this perspective,
even if a standard is technologically and economically feasible, it would still be unreasonable
and unfair if the benefits did not outweigh the costs.
Using cost-benefit analysis to set standards, in effect, returns us to the goals of the market-
based, individual bargaining approach. Rejecting cost-benefit analysis in setting standards is
not the same as rejecting cost-effective strategies in implementing those standards. A
commitment to cost-effectiveness would require that, once the standards are set, we adopt the
least expensive and most efficient means available for achieving those standards. Cost-benefit
analysis, in contrast, uses economic criteria in setting the standards in the first place. It is cost-
benefit, not cost-effectiveness, analysis that is ethically problematic. The use of cost-benefit
analysis in setting workplace health and safety standards commits us to treating worker health
and safety as just another commodity, another individual preference, to be traded off against
competing commodities. Cost-benefit analysis requires that an economic value be placed on
one's life and bodily integrity.
Difficulty: Medium
AACSB: Analytic
Page: 282
76. Contrast the two dominant perspectives on sweatshops.

Answer: Some contend that the exploitation of cheap labor allows developing countries to
expand export activities and to improve their economies. This economic growth brings more
jobs, which will cause the labor market to tighten, which in turn will force companies to
improve conditions in order to attract workers. Several commentators argue that encouraging
greater global production will create additional opportunities for expansion domestically,
providing a positive impact on more stakeholders. Though it is an unpopular sentiment with
the general consuming public, many economists argue that the maintenance of sweatshops is
therefore supported by economic theory. Indeed, even the term ‘sweatshops’ remains open to
debate.
On the other hand, opponents to this perspective argue that allowing this process to take its
course will not necessarily lead to the anticipated result, just as voluntarily improving legal
compliance, wages, and working conditions will not inevitably lead to the negative
consequences the free market advocates threaten.
Difficulty: Hard
AACSB: Analytic
Page: 284-285
77. What are the different ways in which women experience discrimination at the workplace?
Answer: Women often face challenges that are distinct from those faced by men. For instance,
women and men are both subject to gender stereotyping, but suffer from different
expectations in that regard. Unemotional men are viewed in positive terms: going after what
6-29
they want, not letting anything get in their way, and so on.
Difficulty: Easy
Topic: Discrimination
AACSB: Analytic
Page: 291, 293
78. Summarize the influences of diversity within a workplace.

Answer: Diversity refers to the presence of differing cultures, languages, ethnicities, races,
affinity orientations, genders, religious sects, abilities, social classes, ages, and national
origins of the individuals in a firm. Diversity has brought benefits to the workplace, but
diversity efforts have also created new conflicts. Keeping in mind the definition of diversity, it
is important to realize that when a firm brings together individuals with these (or other)
differences—often exposing these individuals to such differences for the first time—areas of
tension and anxiety may emerge. In addition, the organization is likely to ask its employees to
work together toward common goals, on teams, in supervisory or subordinate roles, and in
power relationships, all requests that might lead to conflicts or tension even without additional
stressors such as cultural challenges.
Diversity can potentially increase several areas of values tension. Where differences are new
or strong and where negative stereotypes previously ruled interaction between particular
groups, sensitivity to the potential for conflict is necessary. Another concern involves
integrating diverse viewpoints with a preexisting corporate culture. It is not discriminatory to
refuse to hire someone about whom you simply have a "bad feeling," unless that bad feeling is
based on their difference in race or gender. On the other hand, it is vital to be wary of
prejudgments based solely on differences in interpretations of culturally based standards.
The cost of ignoring diversity is high, not only in terms of losses of productivity, creativity,
and other performance-based measures, but also in terms of legal liability.
Difficulty: Medium
Learning Objective: 06-12; 06-13
Topic: Diversity
AACSB: Analytic
Page: 294-295
79. What is affirmative action?

Answer: The term affirmative action refers to a policy or a program that tries to respond to
opportunity today. It may take the form of intentional inclusion of previously excluded groups
in employment, education, or other environments.
Difficulty: Easy
AACSB: Analytic
Page: 298
6-30
80. Discuss the various ways through which affirmative action can arise within a workplace.
Answer: Affirmative action arises in the workplace in three ways. The first way is through
legal requirements. Much of the law relating to affirmative action applies only to about 20
percent of the workforce, however: those employees of federal contractors with 50 or more
employees who are subject to Executive Order 11246, which requires affirmative action
efforts to ensure equal opportunity. Where Executive Order 11246 does not apply, courts may
also require what is termed “judicial affirmative action” in order to remedy a finding of past
discrimination. A third form of affirmative action involves voluntary affirmative action plans
employers undertake to overcome barriers to equal opportunity. These might include training
plans and programs, focused recruiting activity, or the elimination of discrimination that
might be caused by hiring criteria that exclude a particular group.
A demonstrated underrepresentation of a particular group or a finding of past discrimination is
required to justify affirmative action efforts under either of these latter two options.
Difficulty: Medium
AACSB: Analytic
Page: 299
6-31

Chapter 6

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Chapter 6

Загружено:

Авторское право:

Доступные форматы

Chapter 06 - Ethical Decision-Making: Employer Responsibilities and Employee Rights

1. The most important influence on workers’ commitment is salary.

2. Employees have a universal right to a “happy” workplace.

3. Rewards and compensation structures have no impact on the emotions of workers.

6. A mistreatment needs to be physically threatening to be termed as “bullying.”

7. The doctrine of ‘employment at will’(EAW) holds that unless an agreement specifies

8. When the employer is the government, constitutional limitations on government authority

Multiple Choice Questions

Learning Objective: 06-01

20. Identify the correct statement about “bullying.”

Learning Objective: 06-03

Feedback: Acceptable level of risk approach treats employees disrespectfully by ignoring

44. Which of the following statements is true about cost-benefit analysis?

48. Which of the following is discrimination against those traditionally considered to be in

49. Which of the following is an example of reverse discrimination in America?

Topic: Affirmative Action

caused by hiring criteria that exclude a particular group.

Fill in the Blank Questions

64. _____ is discrimination against those traditionally considered to be in power or the

Bloom’s Taxonomy: Understand

67. Correlate the right of due process to the workplace.

Learning Objective: 06-03; 03-04

72. Correlate health and safety issues at workplace with ideals.

74. How do mandatory government standards work?

76. Contrast the two dominant perspectives on sweatshops.

78. Summarize the influences of diversity within a workplace.

79. What is affirmative action?

Вам также может понравиться