Management Women and the New Facts of Life

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*each* individual question should be between 2 and 3 pages in length…double spaced! This will mean test totals
should be 6 to 9 pages. Word process or type your answers! Though writing styles vary, much less than 2 pages will
probably prove insufficient and anything much longer than 4 pages will likely be ignored.
3. All margins are to be 1 inch all around. All fonts used should be in 12 point type. Do not separate
paragraphs with extra rows or returns. Microsoft Word defaults to 1.5 spacing between paragraphs, or more.
You must correct that default in your paper. Do not repeat or retype the question at the beginning of your
paper. See the sample page attached for visual confirmation of the text format required. Failure to properly
format your answers will affect your grade!
4. The test itself will be open book and open notes. That is worth repeating: you may use any material from the class
– your notes, my notes, or even the books on the test. Your answers should present your understanding and opinions
of the arguments and materials covered in THIS class. First sources must be the material assigned and are necessarily
first sources. Second sources are not necessary and you will be graded not only on your understanding of the
secondary source, but also its relevance to the issue at hand.
Second sources are not acceptable on their own!
Note well, however, this is a test of your understanding of the material from this class so you would be well advised
to concentrate on the material assigned. It is not a test of your ability to transcribe quotes. For example, do not
simply list arguments advocated by one author or another. If you do list an argument in premise form, also write an
answer that demonstrates you understand the premises and how they are justified. DO NOT SIMPLY RE-STATE
CASE FACTS: ASSUME I AM FAMILIAR WITH ASSIGNED CASES. “Martin should slap the auditors
because…” is sufficient case detail.
5. The answers should be your work. DO NOT turn in any work that you did not produce by your own hand.
6. You are required to answer the underlined question or questions. The material preceding the underlined question
is meant to direct you to the relevant issues.
7. You may answer any question, but DO NOT cut and paste any old material into your new answers. Take the time
to read, understand, and rethink your old answer to make it better.
Please answer ANY 3 of the following:
1. Question: When doing business in countries other than your home country, when should you comply with the host
country’s cultural traditions and when should you follow principles other than those favored by host country’s cultural
traditions? What decision procedure should you use to answer this question? Feel free to use cases we have studied
or other “real life” examples to answer this question.
3. Not too long ago, Milton Friedman argued that the only moral responsibility of managers in a capitalist system is
to increase the owner’s investment through profit maximization, with precious few (if any) moral limitations. Many
have claimed that a justified sea change occurred when Ed Freeman started arguing to rebuild, revitalize, and reconceptualize stockholder managerial capitalism to transform it to stakeholder managerial capitalism.
Question: How revolutionary is Freeman’s theory when applied to managerial decisions? When we move from
Milton Friedman’s Stockholder theory to Ed Freeman’s Stakeholder theory – does this shift in theories end up telling
managers to take different actions, or do they simply disagree about the justifications for roughly the same actions?
Feel free to use cases we have studied or cases from “real life” to answer this question.
4. Ellen Moore will cost more to employ in Saudi Arabia than an equally qualified man, though no such male
candidate exists at the time of the case. Ellen will not only cost more to employ, but the General Manager believes
she has a lowered chance of success because she is a woman. Felice N. Schwartz presents arguments to convince
businesses regarding the rationality of hiring women even though women cost more to employ. What is Schwartz’s
argument against sexism in hiring and promotions, and is this a good argument? Why should a business be blind with
regard to sex?
The next page will demonstrate the REQUIRED format for your answers regarding type face,
margins, spacing etc.
1.
This is sufficient indentation to begin your first paragraph. Notice as well that I started
this answer at the top of page and just below the 1 INCH margin, that is, 1 INCH MARGIN
AROUND THE ENTIRE PAGE! Now suppose I am done with this very short paragraph.
See how I just hit enter /return, indented ½ an inch, and started typing again?!! There is
no additional space between paragraphs. If you add spacing between paragraphs you indicate that
you are changing the topic under discussion. I don’t care much about the font, but I do want the
tests typed in 12 point scale. This font is Times New Roman, but most anything will be accepted.
And for goodness sake, please staple your answers together! One and only one staple is necessary
if done correctly. Staplers are fairly easy to operate. Do not make an elaborate origami sculpture
out of your paper in the upper left hand corner just because you didn’t bring a stapler. I will
probably be nice enough to bring my stapler along.
Remember to hit a hard page return when you have completed an answer. The
instructions indicate that each new answer should start on a new page. Let’s assume I want to
give an extended quote or list the premises of an argument:
“Whether a quote or a list of premises, notice how the page is double indented and starts over at
the same point on the soft return. Also notice that the type face is reduced, and this part of the
paper is single spaced.
And here we are again back to normal. The purpose of all the above formatting at the quotation
section is to reduce the size of the quotation to leave you more room to expound on the meaning
of the quotation. Your words are more important than the quotations.
Good Luck!
Name:
_________________________________
Question #_________________________
Question #_________________________
Question #_________________________
Business Ethics – Thomas A. Package
Lecture 18
I. Case “Ellen Moore”
II. Case “Is this the right…”
III. Management Women and the New Facts of Life
A) BFOQ – Bona Fide Occupational Qualification. Some group of qualifications which are
necessary for holding a job. A mechanic must understand how to repair engines; financial
advisors must understand capital markets and investment instruments and so on. BFOQ do not
generally included things like sex, gender, race, religion, or ethnicity. In fact, we generally think
including said characteristics is wrongful or unjust. Further, excluding a person from
employment based on those sorts of characteristics is also deeply unjust.
B) Schwartz asserts that employing women is more costly than employing men. For example,
women require maternity leave and often do not return to work following said leave. Women
supposedly have a higher rate of turnover than do men, 2.5 times as high as men in upper
management positions. For whatever reason, women plateau or interrupt their careers in
numbers men do not.
Schwartz further asserts that the different cost in employing women along with men is
NOT a “function of inescapable gender differences.” She asserts that the cost results from the
policies and practices of mostly male-led corporations. The solution is not to stop employing
women, but to reduce the cost of employing women. The causes of the costs of employing
women fall into two categories: 1) those things associated with maternity and 2) differences
resulting from differing traditional or cultural expectations of the sexes. Schwartz says we can’t
change the fact that women are the ones who have children, but we can reduce the impact on the
workplace and nearly eliminate its effect on employee development. This can be accomplished
by addressing the gender or socially malleable differences in expectations of men and women.
In other words, if corporations want to reduce their cost of employing women, corporations need
to effect change in the social structure, expectations, and attitudes of both men and women.
C) Interestingly, Schwartz does not seem to believe in the glass ceiling. The glass ceiling is a
level beyond which women are not generally offered positions of increased responsibility and
prestige, usually because they are women and are considered only partially qualified. Schwartz
seems to think the metaphor of geological barriers is better since it is the costs of employing
women in high positions which tends to decrease the numbers of women actually steering
Fortune 50, 100 or even 500 companies. Management tends to withhold significant offers to
women since women sometimes choose to either take the “Mommy Track” or if they do return to
work after maternity leave, women are noticeably less productive and seem to be splitting their
resources. Either way, management sees the costs of developing women as managers is high and
the possibility of returns are lower than for men.
Schwartz quotes statistics regarding how women are employment resource which
management would be particularly unwise to fail to exploit. Simply put, management needs all
the talent it can get. The baby boomer bubble has pushed through the initial recruitment stage
and management no longer has so large a pool from which to pick. Thus, we see where once
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women were an untapped resource pool of talent which we would be smart or pleasant to
develop, women are now a necessary resource for continuing the flow of talent into the ranks of
business. There are simply less employable people so ALL resources should be explored. Also,
if management wants to continue to hire and promote only qualified males, then there will be a
problem since there may not be enough qualified males to fit the bill.
D) Career-primary v. Career-and-family
Career-primary(CP) is a personality type which cuts across sex and gender differences.
CP means you put your career first and you tend to make the sorts of sacrifices which we would
expect: 70 hour work weeks, living at work, etc. Both men and women would share those
characteristics in CP. However, for women CP seems to mean putting off having children,
perhaps indefinitely. 90% of executive men have children while only 35% of executive women
have children. That statistic should give thinking people some cause for pause. Schwartz
recommends recognizing CP women early and clearing artificial barriers from their path to the
top. This enables the corporation to properly exploit the valuable resource. Schwartz also notes
that CP women would serve as good role models for other women at work. How do you clear a
path?
1) Identify CP women early.
2) Give CP women the same opportunities and responsibilities afforded to CP men.
3) Accept CP women as valuable members of the management team.
4) Recognize that the business environment is more difficult for them as women than for
men, since there is obvious active and residual sexism.
In other words, we should make efforts to treat women equally, both procedurally and
substantively.
Career-and-family (CF) is a personality type of people who want to pursue careers while
rearing children as well. CF women are willing to trade some career benefits and goals for other
benefits and goals such as families. Not surprisingly, Schwartz notes that companies would
prefer to have all CP employees instead of CF, but she also says that companies would do well to
exploit the ranks of CF women for talented employees. CF employees, both men and women,
tend to be passed over for promotions since the employer is looking for those driven go-getter
CPs. Not developing women who find themselves CF after some investment loses the
investment unless it is “amortized” over a long career as a perfectly functional middle-manager
who likes to go home at 5PM on Fridays. Some women only temporarily stall at CF during child
bearing years and would welcome the opportunity to change to CP when those years have
passed. Business should welcome this change as well, even if it means allowing CF women to
work productive part time hours.
E) Managing and developing CF women requires three things:
1) Managing maternity. You must be willing to be flexible in allowing the employee to
set her own date of return. The one thing which is inarguable is that NOT doing so means
foregoing her valuable experience and knowledge. That alone should be worth some further
investment to protect and retain.
2) Provide the flexibility needed. Mothers have responsibilities which are not easily
accounted for by schedules. Assuaging this need can amount to simply allowing a flexible
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schedule, say an hour or two off to shuttle to day care or make doctor’s appointments. The wired
workplace can also allow you to work from home when necessary, a valuable convenience for a
new mother. On the opposite end of the spectrum, being flexible can also mean part-time return
to work or alternative work schedules.
3) Provide the family supports needed. This includes not only maternity leave and
flexibility, but also providing parental leave for men, flexible benefits, and most importantly,
assistant with child care. Neither Mothers nor Fathers work well when they are worried about
who is minding the baby. Child care could and perhaps should be offered as an employment
benefit much like health care or life insurance.
IV. Does Schwartz defeat sexism?
A) What question is Schwartz answering? The article begins by noting that women are: 1) more
costly to employ than men, and 2) more likely than men to divert from the go-getter, highest
level executive career path. From the human resource perspective, women cost more money and
return at a lower rate. Schwartz then attacks both of those claims by attempting to widen the
scope of consideration, but she does not do so without argument. Schwartz asserts that much of
the cost of hiring women can be reduced, just as the rate of return can be increased. Her
recommendation is for employers to be flexible and to provide additional services such as halftime or part-time employment, and perhaps subsidized childcare at the office. With time, she
says, the rate of return will increase. Another argument against sexism, using sex as a BFOQ, is
that companies now need women executives in ways they did not before. As the Boomers bubble
moves on through the demographic stages, there are not enough talented men in the possible
executive pool to fuel the needs of business. Thus, the sexist company is over-looking one
important cost of sexism, a coming shortage in the all male rising executive pool. Sexist
companies and hiring agents will find their sexism to be self-defeating as the diverse companies
out compete the sexist companies. But is this the right way to phrase the question? Does this
defeat the moral problem of sexism or does it simply say that sexist hiring managers are also
strategically stupid because they do not recognize all of the relevant costs. This seems to be a
contentious strategic argument aimed at defeating an arguable immoral conclusion. Is sexism
defeated by showing it to be strategically unwise? Does that demonstrate it to be immoral?
B) Even worse, it seems Schwartz comes dangerously close to denying what she asserts in the
very first sentence “The cost of employing women in management is greater than the cost of
employing men.” Doesn’t the argument at A tell us that it’s more expensive to NOT hire women
than it is to hire women? Which is it, that it women are more costly or not more costly? Luckily,
all is not lost. Call M the cost of employing men. Call W the cost of employing women.
Thus: W > M.
Sexism is also costly since, by A above, sexist companies will miss out on the necessary resource
of women managers. Call S the cost of being sexist, since sexist firms miss out on the benefits
provided by female executives.
Thus: S > W > M.
Women cost more to employ than men, but when we consider the whole picture, sexism costs
more than employing women.
4
C) Are sexists stupid? Of course, Kantians say yes (after a fashion) since it is irrational to treat
people as mere means, and sexism fails to recognize the full humanity of women. For the rest of
us, saying that sexists are both morally wrong and strategically wrong is at least contentious.
This all turns on showing that sexism is indeed more costly than developing women as
executives, with or without kids. Also, without the commitment to profit maximization, it ain’t a
moral argument at all. That is what Schwartz is really saying, that the hiring manager who keeps
track of stats on executive development is looking at the wrong stats, or is deeply confused about
what maximizes profits. Is that an argument about what is wrong with sexism and why you
should not be sexist in hiring, or is it an argument about why it is unwise with regard to profits to
be sexist in hiring?
D) What’s the right question?
But suppose the strategic argument goes against Schwartz. Suppose the stats show that women
fall off the executive track and return less often to work. What argument can we muster to show
that even if women cost more money to employ, firms should be blind to this stat? Consider how
statistics can demonstrate all sorts of morally suspect premises that we don’t allow firms to use,
e.g. insurance costs based on race. Women earn $.77 for every $1.00 earned by men in the same
position with the same qualifications. Women do not get equal pay for equal work. This number
falls when we analyze it from race as well…$.71 for African American women and $.58 for
Latin American women. An economist might explain this as follows: Firms have access to the
very same statistics as Schwartz. Economic maximizing rationality dictates that perfectly rational
person would pay less for labor that they believe will provide fewer benefits. Schwartz seems to
be denying that the statistical analysis is complete in the market. All of the firms that constitute
the market that returns only $.77 must be wrong in order for Schwartz to be right.
The right question is “Should firms be blind with regard to sex even if it costs them more
money to do so?” And there is a very good response to this that Schwartz does not analyze,
though some parts of it are available in her article. If $.77 is explained by childbearing, then
women are paying a disproportionate share of the necessary good of somebody having children.
It is not that kids are interesting life projects like climbing Mt. Everest. The bearing and raising
of children is a primary good, as Rawls would put it, since even if you don’t want to have kids,
you need somebody to do it. Somebody is raising the doctor you will need in old age, and
somebody is bearing and raising the entire work force that business will need in the future. If
women pay more for kids by losing out on both jobs and pay for the jobs they do get, then the
burdens and benefits of children are not borne equally by all people. Thus firms should not take
into negative consideration, firms should be blind to the fact that an employee or potential
employee is a woman. If we allow firms, legally or morally, to consider sex as a BFOQ even if
the stats back this up, then we are allowing women to bear an unfair share of the burden of
raising children, a necessary good for us all.
Questions to Consider:
1. Can Ellen Moore succeed in the Accounts Control position her boss offered, but then
retracted? Is Ellen more costly and more risky in that position than an as yet unrevealed male
counterpart? Is Ellen’s boss saying that sex or gender is a B.F.O.Q?
2. In the other case, isn’t George asserting that sexual preference is a B.F.O.Q.? If that is what
both boss’s are asserting, then is that a reason …
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