CLASSES 35-36 (10 T H AND 13 T H APR 2014) :

MARKETING CONCL’DAND

INTRO TO HR

BUSI 211: Business Ethics

2

AGENDA

A. Tobacco lawsuitsB. Functions of HRMC. Overview of UAE Labor LawD. Ethical issues in HRE. Thought of the DayF. Academic Integrity ProjectG. Nike Boardroom role-playH. Business for Better Competition I. Homework

3

A. TOBACCO LAWSUITS

Smoking statistics:Each year about 443,000 people in US die from illnesses

related to tobacco use (including second-hand smoke). Smoking cigarettes kills more Americans than alcohol, car

accidents, suicide, AIDS, homicide, and illegal drugs combined. Cigarette smoking causes about 1 of every 5 deaths in the United States each year.

Average male smoker is 15 times more likely to die of lung cancer than non-smoker.

Second-hand smoke exposure can cause heart disease and lung cancer in non-smoking adults.

Cigarette manufacturers spend $11.22 billion on advertising and promotion.

(Source: http://www.cancer.org/cancer/cancercauses/tobaccocancer/cigarettesmoking/cigarette-smoking-who-and-how-affects-health)

4

Tobacco lawsuits

United States v. Philip Morris In 1999, US Department of Justice (DOJ) sued major tobacco

companies for fraudulent and unlawful conduct. DOJ sued for decades-long conspiracy to:(1) mislead public about risks of smoking, (2) mislead the public about danger of second-hand smoke; (3) misrepresent addictiveness of nicotine, (4) manipulate nicotine delivery of cigarettes, (5) deceptively market cigarettes characterized as “light” or “low tar,” although they are as hazardous as full flavored cigarettes, (6) target youth market; and (7) not produce safer cigarettes.

5

Tobacco lawsuits cont’d

After a long complicated process, in May 2004: Court imposed sanctions against Philip Morris, Reynolds and Ligett for $280 billion.

Appeals made by tobacco companies. August 2006: tobacco companies found liable for fraudulently

covering up health risks associated with smoking and for marketing their products to children in “a massive 50-year scheme to defraud the public, including consumers of cigarettes.”

Appeal made again, but decision upheld in May 2009 and found that First Amendment (freedom of expression) does not protect fraudulent statements. “Defendants knew of their falsity and made statements with intent to deceive.”

(Source:http://publichealthlawcenter.org/topics/tobacco-control/tobacco-control-litigation/united-states-v-philip-morris-doj-lawsuit)

6

Other recent tobacco lawsuits by smokers

Feb 2009: Judge reduced record-breaking $28 BILLION award to a former smoker to $28 MILLION because jury's decision on punitive damages was excessive while $28 million was "a reasonable sum”. Philip Morris was at least partially responsible for smoker’s cancer.

(Source: http://www.cbsnews.com/2100-201_162-524400.html)

7

“Light” tobacco lawsuits

10 year-old lawsuit re: fraudulent labelling of cigarettes as “light” against Philip Morris still ongoing

In 2009: prohibited use of “light,” “low” or “mild” in all cigarette labeling and marketing, effective June 2010.

Light (“low-tar”/“ultra-light”/“mild”) cigarettes list tar and nicotine as being lower than in regular or "full flavor" cigarettes.

Plaintiffs say not accurate portrayals of actual tar and nicotine so people believe they’re safer/healthier to smoke, but not true.

Tobacco companies argued “light" = lighter in taste, not healthier. Consumers should know this.

(Source:http://www.nytimes.com/2009/11/21/business/21smoke.html?_r=0)

8

Tobacco litigation: Discussion

ON YOUR OWN, write down your response to this question:

What do you think of these tobacco lawsuits? Analyze the tobacco companies’ actions using course theories and concepts.

9

B. HUMAN RESOURCE MANAGEMENT (HRM)

What is ‘HRM’?What are the 4 functions of HR described in

the text?

10

Four main functions of HRM

1. Employee resourcing: Recruitment and retention.

2. Employee reward: Pay, recognition and motivation.

3. Employee relations: Managing employee contract and relationship.

4. Training and development: Organizing and managing training programs.

11

C. UAE LABOR LAW

Ministry of Labor is responsible for all employment matters in country.

Labor law generally protects employees to ensure: they receive minimum wage; don’t exceed maximum working hours; they are not subject to more than 6 month

probation period; safe working conditions; termination provisions are complied with; employees receive end of service gratuity.

12

D. ETHICAL ISSUES IN HR

1. Discrimination and gender inequality2. Harassment, sexual harassment, workplace

bullying, and insubordination3. Breach of privacy and confidentiality4. Employee motivation/morale/productivity

13

1. Discrimination and inequality

Discrimination and favoritism in hiring, promotion, pay, discipline: old boys’ network, wasta. UAE Internal Audit Association is checking

recruitment procedures to ensure government bodies and businesses are not offering jobs to people based on wasta alone: http://www.thenational.ae/news/uae-news/uae-to-conduct-recruitment-checks-in-bid-to-beat-wasta

14

Gender inequality

Unequal pay: Women get paid 10 to 40% less than what men make. UK survey Nov 2012 shows a woman manager earns 25% less than a man

(500k pounds or AED 3 million over lifetime) and have bonuses half those of their male counterparts in SAME JOB path: http://www.telegraph.co.uk/finance/jobs/9659232/Women-earn-500000-less-than-men-over-working-lives.html

. Another article says a 2010 British article says that equal pay still 57 years away.

Gulf News article (16 March 2013): Women in GCC make less than a ¼ of what men make (due to type of work etc). Middle East and Africa have worst gender inequality in world.

When control for occupation, majors in uni, etc. women still make 10% < men in US.

Women also less effective at negotiating salaries than men because undervalue worth or feel bad.

President Obama declared 8th April 2014 Equal Pay Day:  ”Today, women still make only 77 cents to every man's dollar, and the pay gap is even wider for women of color”: http://www.whitehouse.gov/the-press-office/2014/04/07/presidential-proclamation-national-equal-pay-day-2014

15

Gender inequality

Glass ceiling: Invisible barrier that separates women from top management positions. Can look through glass ceiling and see top management, but stereotypes or attitudes provide obstacles to their advancement. => “Old boys network” Women comprised 10% of executives on Wall St in 2008 and about 20% of

financial advisors. Despite lower representation, 5 times as many got laid off.

Opt-out: Women select themselves out of the process by not applying for management roles, get on the “Mommy Track”, or leave on their own for various reasons. Survey of financial industry: 32% of women experienced harassment; 13%

received unwanted sexual attention… (San Antonio Woman Magazine) Double standard: If a stressed man throw something, seen as aggressive and

macho which is praised vs. woman seen as weak, unstable and emotional. Wharton Management Professor: In school, at least half class are women, why

would they choose a field that is male-dominated, where it’s going to be hard and not pleasant?

16

Lehman Sisters?

Effects of women opting out or somehow prevented from entering certain professions Davos World Economic Forum (2010): Would Lehman

Brothers failed if was Lehman Sisters? No, but would also made less money during boom years. “if women ran Wall Street, would have saved world from

corrosive gambling culture that dominated many a trading room.”

Women are more cautious and less corrupt. Neelie Kroes, the European competition commissioner,

convinced testosterone was one reason financial system collapsed. "females are less ego-driven and …more responsible than men".

17

Harvard economist: Germany's chancellor, Angela Merkel, called for transparency in financial markets and regulation of nonbank financial sector in 2008. "She didn't even want heavy regulation - she was just completely sane and sensible - but she was squashed by all the men. She was a lone voice, and that's the problem. We need more gender diversity in the finance sector.": http://www.nytimes.com/2009/02/01/business/worldbusiness/01iht-gender.3-420354.html?_r=0

18

Gender inequality and body chemistry

According to behavioral finance, Wall Street’s volatility is driven by body chemistry.

Testosterone (men have 15 times > women) linked to increased aggression, confidence, hostility, violence, sensation-seeking. Level influenced by environment, e.g. stay-at-home-dad can have less over time; higher in single guys/morning/when eat meat /around other guys. Being married reduces risk-taking behaviour.

“Having too many men involved in business might cause them to take more risks, and having more women would probably be good in lots of settings. Women are the brake pedal.”

19

Women traders classified selves as more conservative. “Generally, women more likely to admit they’re wrong, faster. There’s less ego….if something went wrong, I would get advice from other people. It’s like asking for directions when driving.”

Neuroscientist: “Banking crisis caused by doing what no society ever allows, permitting young males to behave in unregulated way. Anyone who studied neurobiology would have predicted disaster.”

(New York magazine) http://nymag.com/news/businessfinance/64950/

20

2. HARASSMENT, BULLYING, INSUBORDINATION

a) Harassment: any unwanted behavior that humiliates, offends, or intimidates a person. Impact on complainant is important determinant.Harassment occurs when an employee or group of

employees must endure a work environment that is hostile, offensive or intimidating to them.

Harassing conduct includes insults, mockery or demeaning jokes, and implied and explicit threats of violence.

Usually is a series of events, but legally just one act can constitute harassment.

21

Harassment can take many forms. Depending upon whether behavior is welcome or not, following could be harassment: material that is racist, sexist, sexually explicit, homophobic etc. and is

displayed publicly, circulated or put in someone’s work space or belongings;

verbal abuse or comments that put down or stereotype people generally, or an individual particularly, because of their sex, pregnancy, race, disability etc

jokes based on gender, race, marital status, disability, age etc sexually, racially, etc offensive gestures or conduct ignoring, isolating or segregating a person or group because of their sex,

race etc.

Each case is unique and should be examined in its own context and according to surrounding circumstances as a whole.

22

b) Sexual Harassment: any unwelcome sexual advance or conduct on the job that creates an intimidating, hostile or offensive working environment

Ranges from repeated offensive or belittling jokes to a workplace full of offensive pornography to an outright sexual assault.

No special laws or regulations in the UAE, but covered under UAE Penal Code.

(Definitions from ProConsult Advocates and Legal Consultants)

Harassment is degrading, frightening, and sometimes physically violent; frequently extends over a considerable period of time; and can result in profound job-related, psychological, and health-related consequences.

Both men and women can be victims – “Horrible Bosses” movie.

23

What steps should you take to stop harassment? Tell the harasser to stop. If harassment is in form of jokes,

inappropriate comments about appearance or repeated requests for dates, often likely to stop if you address it with them.

Write to harraser by e-mail after having conversation to document what has happened.

It is also important if later take more formal action against harasser.

Document what's going on by keeping a journal of events and have witness accounts or keep other evidence.

Inform your manager or HR if it is not a minor incident or if you feel physically threatened. In some countries, companies can be liable for failure to prevent such harassment.

Al Ameen hotline (800 4888 or sms 4444), which was set up to encourage women to report incidents of sexual harassment.

24

Manager/employer’s duty: Monitor workplace behavior, enforce respect. Treat all complaints seriously and confidentially. Do not ignore

any allegation. Post/disseminate EEO Policy. Respond to allegations immediately; investigate, as appropriate. Be sensitive but impartial. Interview parties and relevant witnesses. Ask opened-questions. Collect relevant documentation/evidence. Take appropriate corrective action, follow-up Ensure no retaliation. Document your actions.

(Source: Presentation from member of US Department of Veteran Affairs

25

c) Bullying

Similar to harassment, but not on grounds of race, gender, religion etc, but can be for whatever reason. Many definitions of bullying: "Offensive, intimidating, malicious or

insulting behaviour, an abuse or misuse of power through means intended to undermine, humiliate, denigrate or injure the recipient."

Can be done by manager, colleagues, even people who report to you. If it is humiliating or degrading, it’s bullying.

Bullying behaviour can be: Verbal, e.g. name calling, teasing, abuse, putdowns, sarcasm, insults, threats Physical, e.g. hitting, punching, kicking, scratching, tripping, spitting Social, e.g. ignoring, excluding, ostracising, alienating, making inappropriate

gestures Psychological, e.g. spreading rumours, dirty looks, hiding or damaging

possessions, malicious SMS and email messages, inappropriate use of camera phones.

(Source: http://www.atl.org.uk/publications-and-resources/report/2012/february-legal-bullying-harassment.asp#)

26

(d) Insubordination

Insubordination(generally): anyone disrespectful or defiant to authority.

Insubordination (at work): an employee who refuses a direct order from a superior or employee and superior have a confrontation. Examples: failing to perform work as prescribed, to use safety equipment or to follow established procedures, refusal to correct or report faulty work, to perform alternate duties, using abusive language to boss (if boss didn’t use such language, not part of ‘shop talk’)

Employee is breaching employment contract and can be dismissed in right circumstances.

Even if the employee thinks order is unfair or improper, still must comply unless order is illegal or will immediately endanger him or others.

Case Study 127

William keeps a large bible on his desk at work and always wears a large silver cross around his neck. At times William will use biblical quotations to support his comments and assertions that his observations are correct in conversations with his co-workers. Additionally, he usually tells people to have a “Blessed Day”.

Sarah, one of William’s co-workers, has started referring to him as “Saint Will”. This has gotten a lot of laughs around the office. William has confronted Sarah about this and asked him to stop. Sarah’s response was “can’t you take a joke?”. Sarah not only has not stopped referring to William as “Saint Will”, but she has encouraged others to do so.

What type of issue is this? What should William do?

Case Study 228

Mohammed works with Lorraine in Finance. Their manager, Barbara, has recently taken on more work and is clearly finding the pressures hard to cope with. Lorraine, who is Barbara’s Personal Assistant appears to be bearing the brunt of this. Mohammed has frequently overheard Barbara shouting at Lorraine in her office and is aware that Lorraine never seems to get the leave she requests. Mohammed is concerned that the situation is getting worse and he doesn’t know what to do.

What type of issue is this? What should Mohammed do?

Case Study 329

Sanjay, an employee in his late fifties, and Vivian, an employee in her early fifties, work on a project team. The remaining members of the team range in age from 25 to 35. The team members like to joke around with each other and frequently tease Sanjay that he can’t perform certain job duties because he is too old.

They also joke with Vivian when they help her with a technical issue on the computer that she “reminds them of their Mom” or they say things like, “This is how I helped my Mom learn this.” Sometimes the team members say they like “helping out an old guy” and many team members have begun to call Vivian, “Mom.”

At first Sanjay and Vivian laughed along, but now the jokes are coming so fast that they are beginning to be offended by them.

What type of issue is this?What should Sanjay and Vivian do?

Case Study 430

Ron is a supervisor of a project team. This team, including Ron, spends many hours working at computers. It is an accepted practice among team members to massage each others’ necks and shoulders to relieve stress throughout the day.

Jeff is new to the team and is uncomfortable with this practice although he feels the best way to handle the situation is to not say anything.

What type of issue is this?What should Jeff do?

Case study 531

Four months ago, Amira filed a complaint alleging her supervisor discriminated against her based on religion (which is now in investigation).

After filing the complaint, she began to feel alienated; her co-workers stated limiting their contact with her; and she believed she was not receiving any prime assignments.

This week she received her performance evaluation which rated her as satisfactory. In the past 3 years, her rating has been twice at the highly effective level, and once at the outstanding level. Her supervisor’s justification for rating - She was not performing work expected of employees at her level, and that she was not working well within the team.

What type of issue is this? What should Amira do?

Case Study 632

Pam, an attractive female employee, likes to wear blouses with a plunging neckline, short tight skirts and high heels. When she walks down the hall in the office, many times her male co-workers and some females stare at her, some with a knowing smiles, others just shake their heads.

Occasionally, one individual silently acts as if he is having a heart attack. She has repeatedly indicated to her co-workers that their conduct embarrasses her, and has asked them to stop, but without much success. Some of her female co-workers have mentioned that she causes her problems by the way she dresses which invites sexual advances.What type of issue is this? What should Pam do?

33

E. THOUGHT OF THE DAY

“I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” ~ Maya Angelou

“One's job is a major part of one's life, and life is too precious to spend in misery” ~ Sheikh Mohammed bin Rashid al Maktoum

34

F. ACADEMIC INTEGRITY PROEJCT

I’ve e-mailed some of you to verify your quotes for:

International Center for Academic Integrity (ICAI) website or newsletter and/or AUD website: http://www.academicintegrity.org/icai/home.php

Mission: To combat cheating, plagiarism, and academic dishonesty in higher education and to cultivate a culture of integrity.

Those of you who DIDN’T get an e-mail, but would like to be quoted, please e-mail me a statement about the importance of courage in academic integrity.

35

G. ROLE-PLAY

Nike boardroom role-play (3% of total course grade) will be on Tues 22nd April. Please diarize this date now as this is your LAST opportunity to improve your grade before the final exam. There will be NO make-up for this and anyone who comes without the notes printed, highlighted or notated will be asked to leave the class.

As I do not have time to quiz you, I must SEE tangible evidence of preparation through notes and highlights not just “in your head”.

Next week, information will be posted in Content Area in folder called “Nike Boardroom” to help you choose which role you choose to play. Sign-up sheet will be provided IN CLASS next week.

36

H. BUSINESS FOR BETTER CONTEST

Information session: Tuesday, April 15th from 1-2pm, in C227. Inter-university contest for second year students. Contest deliverable: submit out-of-the-box, sustainable and for-profit

business proposals. Great for your learning and CV as writing business proposal is

an important skill. To participate, teams of 2 to 3 students must submit a fully

accomplished application form and concept paper online at www.business4better.ae from March 25 to May 5, 2014. An evaluation team from Western Union and Al Ansari Exchange will choose the finalists. Shortlisted teams present during final round before the panel of judges from Al Ansari Exchange, Western Union, and others.

Prizes: First Prize: AED 45,000 scholarship for each group member Second Prize: AED 30,000 scholarship for each group member Third Prize: AED 20,000 scholarship for each group member

37

I. HOMEWORK

Reading: from Chap 8 (HRM and OB) NOTE: Read these sections and pages only:

Section 8.4 (pp 174 to 176); Section 8.6 (p.178), and Section 8.8 + case study (pp.181-186). We will be

discussing case study next class.

Other parts of chapter NOT on exam.