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Chapter 3 Learning Objectives LO 3-1. Illustrate how ethics help managers determine the right way to...

Chapter 3 Learning Objectives LO 3-1. Illustrate how ethics help managers determine the right way to behave when dealing with different stakeholder groups. LO 3-2. Explain why managers should behave ethically and strive to create ethical organizational cultures. LO 3-3. Appreciate the increasing diversity of the workforce and of the organization environment. LO 3-4. Grasp the central role that managers play in the effective management of diversity. LO 3-5. Understand why the effective management of diversity is both an ethical and a business imperative. LO 3-6. Understand the two major forms of sexual harassment and how they can be eliminated.

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Ethics are moral principles or beliefs about what is right or wrong. These beliefs guide people in their dealings with other individuals and groups (stakeholders) and provide a basis for deciding whether behavior is right or proper. Many organizations have a formal code of ethics derived primarily from societal ethics, professional ethics, and the individual ethics of the organization's to managers.

Managers can apply ethical standards to help themselves decide on the proper way to behave toward organizational stakeholders. Ethical organizational cultures are those in which ethical values and norms are emphasized. Ethical organizational cultures can help organizations and their members behave in a socially responsible manner.

Diversity is differences among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/ disabilities.

The workforce and the organizational environment have become increasingly diverse. Effectively managing diversity is an ethical imperative and can improve organizational effectiveness.

The effective management of diversity is not only an essential responsibility of managers but an ethical and a business imperative. In each of their managerial roles, managers can encourage organization wide acceptance and valuing of diversity.

Two forms of sexual harassment are quid pro quo sexual harassment and hostile work environment sexual harassment. Steps that managers can take to eradicate sexual harassment include development, communication, and enforcement of a sexual harassment policy, use of fair complaint procedures, prompt corrective action when harassment occurs, and sexual harassment training and education.

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