MENT 3101: Diversity, Justice, and Ethics

Diversity

The differences between individuals on any attribute that may lead to the perception that someone is different from oneself; involves recognizing and accepting individual uniqueness.

Dimensions of Diversity

Examples include race/ethnicity, gender, socio-economic status, age, culture, physical abilities, and political or religious beliefs.

When Diversity Benefits Teams

• Enhances creativity rather than efficiency.

• Provides a richer pool of information, perspectives, and ideas.

• Heterogeneous teams have more diverse viewpoints than homogeneous teams.

• Can outperform homogeneous teams when members actively share information and engage in cognitive processing together.

When Diversity Harms Teams

• Can create subgroups (fault lines), leading to ingroup vs. outgroup dynamics.

• Increases ingroup biases and favoritism.

• Leads to negative intrateam interactions such as conflict, distrust, dislike, and limited communication.

Justice

the perceived fairness of an authority’s decision-making  

Distributive Justice

Focuses on how goods, resources, and outcomes are allocated. It does not mean everyone receives the same amount; instead, it examines whether the distribution is fair.

Equality vs. Equity

• Equality: Treating everyone the same.

• Equity: Giving each person what they need to be successful.

Procedural Justice

The fairness of the decision-making process used to determine outcomes.

Six rules of procedural justice

1. Voice:

2. Correctability:

3. Consistency:

4. Bias suppression:

5. Representativeness:

6. Accuracy

Voice (procedural justice)

Employees should have the opportunity to express their opinions and views during the decision-making process.

Correctability (procedural justice)

Employees should be able to request an appeal or correction if a procedure appears to have worked ineffectively.

Consistency (procedural justice)

Procedures must be applied consistently across time and across all individuals.

Bias suppression (procedural justice)

Procedures should be free from personal self-interest and uninfluenced by preconceptions or favoritism.

Representativeness (procedural justice)

Procedures should consider and reflect the values, concerns, and perspectives of those affected.

Accuracy (procedural justice)

Procedures should be based on complete, accurate, and valid information—especially important for leaders.

Importance of Procedural Justice

Procedural justice significantly influences how employees react to decisions and those making them.

Interaction with Distributive Justice

Procedural justice and distributive justice work together to shape employee reactions to outcomes.

When Procedural Justice Matters Most

Procedural justice becomes especially important when outcomes are unfavorable; it is often a stronger driver of reactions to authorities than distributive justice.

Interpersonal Justice

The fairness of the treatment employees receive from authorities.

Treatment From Authorities

Interpersonal justice focuses on whether employees feel respected and properly treated by those in positions of power.

Respect Rule (interpersonal justice)

Authorities must treat employees with dignity, sincerity, and professionalism.

Propriety Rule (interpersonal justice)

Authorities must avoid making improper, offensive, or inappropriate remarks toward employees.

When does interpersonal injustice occur?

Interpersonal injustice occurs when authorities are rude or disrespectful to employees, or when they refer to them with inappropriate labels

Extreme forms of interpersonal injustice occur when there is abusive supervision

Examples

Angry outburst

Public ridiculing

Informational Justice

The perceived fairness of the communication provided to employees by authorities.

Purpose of Informational Justice

Focuses on the quality, clarity, and honesty of information employees receive from decision-makers.

Justification Rule (informational justice)

Authorities should explain decision-making procedures and outcomes in a comprehensive, reasonable, and transparent manner.

Truthfulness Rule (informational justice)

Communication from authorities should always be honest, even when the information is negative.

Ethics

The moral principles guiding behavior, emphasizing fairness, honesty, and justice in interactions.

Enron Scandal

Energy company that falsely reported future revenues, failed to audit properly, and engaged in unethical practices—such as intentionally cutting power—to inflate stock value.

Theranos Scandal

A company that claimed it could diagnose diseases using a single drop of blood; the technology didn’t work, leading to large-scale deception and fraud.

How can companies build trust with society?

By practicing corporate social responsibility (CSR) that goes beyond profit maximization to include economic, legal, ethical, and citizenship obligations.

What is Corporate Social Responsibility (CSR)?

A perspective that acknowledges a business’s responsibilities encompass economic, legal, ethical, and citizenship expectations of society.

What does CSR imply beyond profit maximization?

Companies have more obligations than just maximizing profit; they must also act ethically and contribute positively to society.

What is the legal component of CSR?

Following laws and regulations that govern business operations.

What is the ethical component of CSR?

Understanding and following ethical rights and wrongs beyond what is legally required.

What is the citizenship component of CSR?

Acting as responsible members of society, contributing to the community and social well-being.