Diversity and Ethical Leadership in the Workplace  -Humanities

Your initial post must be a minimum of 250 words, not including restatement of questions or reference sections. Posts must include adequate depth and scholarly understanding of concepts that are appropriate for this level of education. They must go beyond summarizing concepts and must utilize aspects of critical thinking and advanced application. You must include references from the course textbook and at least one peer-reviewed journal article, using appropriate APA citations. Diversity and Ethical Leadership in the WorkplaceCurrent Research: Diversity in the Workplace For this discussion, please read the following vignette and be prepared to address it as you answer the discussion questions below. Jason is gay but not out at work. An employee approaches you, the supervisor, to tell you that other employees are talking about Jason, saying that he “appears gay.” Your response should address the follow: As the supervisor, how would you handle this situation? What resources did you use to guide your decision? What does the code of ethics and professional standards for your profession say about diversity? Your initial post must be a minimum of 250 words, not including restatement of questions or reference sections. Posts must include adequate depth and scholarly understanding of concepts that are appropriate for this level of education. They must go beyond summarizing concepts and must utilize aspects of critical thinking and advanced application. You must include references from the course textbook and at least one peer-reviewed journal article, using appropriate APA citations. Locate a peer-reviewed journal article that focuses on diversity in the workplace. Analyze and report on the article. Be sure you complete the following: Summarize the article’s important points. How could you apply the information that you learned in this article to your current or future work situation? Cite and reference your text and the peer-reviewed journal article in your initial post. Include the journal article’s persistence link. Note: Please remember when you are researching that many fields have research devoted to ethical leadership and ethical policies. Do not initially restrict yourself to research in any single field. Cast a broad net looking for relevant research in fields from business to community service to human behavior. After you have a sense of what is out there, then you can narrow down your search.
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Journal of Business Ethics
https://doi.org/10.1007/s10551-018-4051-7
ORIGINAL PAPER
Walking the Talk on Diversity: CEO Beliefs, Moral Values,
and the Implementation of Workplace Diversity Practices
Eddy S. Ng1 · Greg J. Sears2
Received: 21 May 2018 / Accepted: 22 October 2018
© Springer Nature B.V. 2018
Abstract
Although CEO commitment is recognized as being crucial to organizational diversity efforts, we know little about how CEOs
signal their priorities and mobilize key organizational actors to implement diversity management. We tested an integrative
model in which CEO beliefs about diversity were theorized to predict the implementation of organizational diversity practices through two consecutive mediating steps—via greater CEO engagement in pro-diversity behavior, and in turn, higher
perceived CEO commitment by their HR manager. In this model, we also proposed a moderating effect such that when CEOs
have less positive beliefs about diversity, CEOs espousing higher moral values will display greater pro-diversity behavior.
Results supported the proposed model. Taken together, our findings indicate that a CEO’s words and actions alone are not
sufficient for the implementation of diversity management practices. HR managers must view their CEOs as being committed to workplace diversity in order for diversity management practices to be implemented.
Keywords CEOs · HR managers · Sense-making · Moral values · Diversity management
Introduction
One of the major issues facing organizations is managing
an increasingly diverse workforce. Although research shows
that equal employment opportunity/affirmative action (EEO/
AA) laws promote organizational diversity practices (Holzer
and Neumark 2000; Dobbin et al. 2011), comparatively little
research has been undertaken to understand the role organizational actors play in advancing diversity management in
organizations (Abramovic and Traavik 2017; Anderson and
Billings-Harris 2010; Guillaume et al. 2014). CEOs publicly
claim that they value diversity, but their words often do not
translate into tangible diversity efforts or outcomes (Braga
2017; Christian 2014). Some CEOs say they are committed to managing diversity, but their organizations are simply complying with EEO/AA laws at best (cf. Ng 2005;
* Eddy S. Ng
[email protected]
Greg J. Sears
[email protected]
1
Rowe School of Business, Dalhousie University, 6100
University Avenue, Halifax NS B3H 4R2, Canada
2
Sprott School of Business, Carleton University, 1125 Colonel
By Drive, Ottawa ON K1S 5B6, Canada
Hiranandani 2012). According to Professor David Thomas,
people at the top are “saying all the right things relative
to diversity, but their middle management, who really run
the organization and create the experience of people who
work there, don’t understand and don’t feel accountable for
diversity and inclusion” (cf. Brescoll 2011). In an effort to
shed light on how CEOs and managers contribute to workplace diversity management, this study explores the process
through which CEO commitment to diversity translates into
the implementation of diversity management practices. In
this regard, we extend the work of Buttner et al. (2006, 2007)
on how leader attitudes impact the implementation of diversity management. We also explore the moderating role of
a CEO’s moral values in contributing to workplace diversity management. Specifically, we posit that when CEOs
do not hold positive beliefs about the instrumental value of
diversity (i.e., they do not believe in the business case for
diversity), their moral values will exert a stronger influence
on their display of pro-diversity behaviors and their commitment to diversity. In this respect, we seek to enhance our
understanding of the influence of both CEO instrumental
beliefs and moral values in predicting a CEO’s commitment to diversity and the enactment of workplace diversity
practices.
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Vol.:(0123456789)
E. S. Ng, G. J. Sears
To guide our theoretical framework, we draw from the
sense-making literature (e.g., Boxenbaum 2006; Roberson
and Stevens 2006) to propose a sequential mediating process
of how CEOs signal their beliefs and priorities about diversity and how managers interpret these signals to implement
diversity management practices in an organization. Given
the important role that both CEOs and managers play in contributing to diversity management in organizations, a better
understanding of these perceptual mechanisms is needed to
strengthen the implementation of workplace diversity practices and enhance career outcomes for women and minority
groups. In this paper, we will focus specifically on senior
human resource managers (HR managers) since they are
the ones tasked with implementing organizational diversity
efforts.
CEO and HR Managers’ Roles and Priorities
CEOs tend to focus on the bottom line and addressing strategic issues integral to an organization’s overall performance.
HR managers, on the other hand, must address a number of
competing internal organizational demands and are often
tasked with implementing various organizational policies,
including directives to comply with EEO/AA laws (Durrani and Rajagopal 2016; Shen et al. 2009; Ulrich 1998).
While both CEOs and HR managers play an important role
in designing and implementing diversity management initiatives, our understanding of how CEOs and HR managers influence each other in this process is limited (May and
Winter 2009; Schilit 1987; Wooldridge and Floyd 1990).
Given that EEO/AA laws play a limited role in promoting workplace diversity, Dobbin and Kalev (2016) suggest
engaging managers (as “diversity champions”) to help boost
organizational diversity. This proposition is also echoed by
Nishii et al. (2018) who call for a process approach to better
understand how individual-level variables (e.g., managerial attitudes and beliefs) influence organizational diversity
outcomes. In this respect, we contribute to the literature on
workplace diversity by testing the influence of both CEO and
HR managers’ beliefs and perceptions on the implementation of diversity practices.
We focus our attention on CEOs because they make decisions, set the corporate agenda, and allocate resources that
are required to promote diversity management (Cox and
Blake 1991). CEOs also act as symbolic leaders by taking
personal stands on the need for change, act as role models for
the behaviors required for change and assist with the work
of moving the organization forward (O’Reilly 1989; Pfeffer
1981). Thus, visible CEO support is essential in order for
organizations to advance the corporate agenda on diversity
management. Furthermore, diversity management requires
a long-term commitment on the part of the organization,
and CEO commitment and support are crucial to acquiring
13
and sustaining managerial attention and securing the financial resources required to keep it on the corporate agenda
(Robinson and Dechant 1997). According to Salancik (1977,
p. 22), CEO commitment “makes us do what we do and
continue doing, even if the payoffs are not obvious.” When
CEO commitment to diversity is lacking, this may also have
a ripple effect throughout the organization. For example, it
may detract from the perceived credibility of managers in
implementing diversity practices (Hitt and Keats 1984), thus
hampering their enactment.
While CEOs play a lead role in initiating and supporting change, HR managers play a critical role in effecting
and implementing change (Gioia and Chittipeddi 1991). As
key partners in organizational change, comparatively little
attention has been cast on the role of HR managers in the
implementation of diversity management initiatives, prompting calls for more research on the role of middle-managers
in diversity management implementation (Guillaume et al.
2014; Tatli and Özbilgin 2009; Tatli et al. 2015). Diversity management initiatives such as making EEO/AA hiring decisions can be politically and emotionally charged
(Edelman et al. 1991; Roberson 2006), and managers who
are tasked with their implementation often face significant
resistance, including in some cases, very negative reactions
from both employees and other managers (Zanoni and Janssens 2004). Thus, HR managers may take their cues from
CEOs and exercise discretion in how they implement diversity management practices based on the perceptions of their
CEO’s commitment to diversity. Accordingly, we draw from
the sense-making literature to demonstrate how CEOs make
sense of the environment to prioritize diversity management
and signal their commitment to organization members (e.g.,
HR managers). HR managers, in turn, interpret their CEOs’
priorities and commitment to implement organizational
diversity practices. Specifically, we test a model in which
CEO beliefs about diversity influence the implementation
of diversity management practices through the display of
CEO behaviors that reflect a commitment to diversity, and in
turn, HR managers’ perceptions that their CEO is committed
to workplace diversity. By exploring the interface between
CEO beliefs and behaviors related to diversity and HR managers’ perceptions of their CEO’s commitment to diversity,
the present study helps us to better understand the perceptual
and relational mechanisms through which CEOs and HR
managers shape diversity management in organizations.
Conceptual Background
Sense‑Making and Organizational Change
Sense-making is a process that is helpful for explaining
how managers arrive at decisions to initiate organizational
Walking the Talk on Diversity: CEO Beliefs, Moral Values, and the Implementation of Workplace…
change (Gioia and Chittipeddi 1991; Kezar 2013). It involves
organizational members coordinating their sense of appropriate meaning to achieve a shared understanding of required
behaviors (Weick 1995). In this regard, diversity management, a form of organizational change, entails a shift in
demographics (i.e., increasing the proportion of women
and minorities) and climate (i.e., “the way things are around
here”) (Kossek et al. 2003). According to Friday and Friday (2003, p. 864), implementing diversity management is
intended to create a shared sense of collective effort where
“…diversity is systematically acknowledged, valued, and
effective managed.” Because change initiatives relating to
diversity management are enacted at the organizational level,
it is crucial to assess the degree to which organizational
members make sense of their CEO’s signals and perceive
their CEOs to be committed to diversity for organizational
members to fully support and effect these changes (Kossek
et al. 2003; Nishii et al. 2018).
As part of the organizational change process, sense-making involves extracting cues, labeling, communication, and
action (Weick et al. 2005). First, CEOs interpret signals from
the external and internal environments and develop a vision
for change (see Buttner et al. 2006, 2007). This vision is
then communicated to organizational members. Following
this, organizational members assess the motives of the CEO
(Nishii et al. 2018) and actions are then implemented. HR
managers charged with implementing change must therefore
interpret, communicate, and implement change (Lüscher
and Lewis 2008). In turn, the interpretation of these change
efforts by organizational members affects the continued success of change initiatives in the organization (Bartunek et al.
2006).
Linking CEO Beliefs About Diversity with Behaviors
CEOs are frequently confronted with far more stimuli than
they can fully comprehend. Thus, CEOs must first interpret
and “make sense” of stimuli through a cognitive process
(i.e., “extracting cues”) to determine how new information
will be noticed, interpreted, and acted upon (Hambrick and
Mason 1984). Some of the stimuli confronting CEOs represent possible strategic issues that can significantly impact
organizational performance, and also influence their own
attitudes and behaviors. CEOs may selectively attend to
some of these emerging issues while ignoring others. Those
selected are subsequently interpreted and infused with meanings and labels (Dutton and Jackson 1987; Thomas et al.
1993). Identifying and labeling strategic issues also help
CEOs “make sense” and impose order on the environment.
Two of the most common labels applied to strategic
issues are “opportunity” and “threat” (Jackson and Dutton
1988; Mintzberg et al. 1976). Dutton and Jackson (1987)
argue that managers evaluate an issue in positive or negative
terms, and see it as representing a potential gain or loss for
their organizations. Workforce diversity, as a strategic issue,
can be perceived as having a positive or negative impact on
group processes and organizational outcomes (Milliken and
Martins 1996). Those who hold a resource-based view (e.g.,
Richard 2000; Yang and Konrad 2011) tend see workforce
diversity as an opportunity that can enhance creativity and
performance, while those who hold a social contact perspective and selective incivility (such as stereotyping and overt/
covert discrimination) (e.g., Jehn et al. 1997; Kabat-Farr and
Cortina 2012; Tsui et al. 1992) are inclined to see increasing diversity as a potential source of inter-group conflict
and a threat to organizational effectiveness. Furthermore,
CEOs who form positive beliefs about diversity (i.e., who
believe in the business case for diversity) are more likely
to exhibit behaviors that are consistent with those beliefs.
These behaviors can range from communicating their personal commitment to diversity to creating employee resource
groups and setting diversity goals for their managers (Gilbert and Ivancevich 2000). Indeed, Rynes and Rosen (1995)
reported that CEO (positive) beliefs about diversity were
associated with their support of workplace diversity training
and the adoption of these practices. Consistent with Buttner
et al. (2006, 2007) on leadership attitudes and diversity management, we hypothesize the following as a starting point
for our study:
Hypothesis 1a CEO workforce diversity beliefs are positively related to their pro-diversity behaviors.
Although the business case is the predominant motivation behind the implementation of workplace diversity initiatives, some CEOs may hold less positive views of the value
of workforce diversity and/or overt/covert discrimination
(e.g., Barry and Bateman 1996; Pelled 1996; van Knippenburg et al. 2004). This is particularly true when diversity
initiatives are perceived as “hiring less qualified (or rejecting qualified) candidates,” or deemed to: “produce reverse
discrimination,” “operate as “quota” systems,” or “take a
lot of time, effort, money and paperwork” (cf. Bell et al.
2000, p. 788). As CEOs are principally motivated by firm
financial performance (i.e., profit maximization) (Boxenbaum 2006; Slater et al. 2008), the impetus for managing
diversity will diminish when they do not view diversity as
a strategic opportunity. Leaders may also, however, view
diversity management from a moral or ethical standpoint
(e.g., DiTomaso and Hooijberg 1996; Hood 2003; Ng and
Sears 2012). CEOs adopting this perspective are concerned
with corporate social responsibility and may choose “to do
the right thing” even when it bears no financial return. Ely
and Thomas (2001) referred to this as the “discrimination
and fairness” perspective, in which diversity initiatives are
put in place to ensure equal opportunity with no clear link
13
E. S. Ng, G. J. Sears
to firm financial performance. Indeed, research suggests
that CEOs can be committed to social causes out of a moral
obligation that enhances one’s motivation to ensure fair
treatment for everyone (Agle et al. 1999; Boekhorst 2015;
Dodge and Rabiner 2004). Likewise, Ng and Wyrick (2011)
posit that, in the absence of a business case, a CEO may be
committed to diversity due to a belief that it is the “moral
thing to do.” In this regard, one’s moral values are critical
for framing diversity initiatives when the business case for
diversity is weak (e.g., Pless and Maak 2004; van Dijk et al.
2012). Buttner et al. (2006, 2007) report that leader awareness concerning racial issues is related to their beliefs about
diversity. We build on this work and propose that moral values will moderate the relationship between diversity beliefs
and behaviors. As outlined above, moral values should exert
a minimal influence on pro-diversity behavior when CEO
beliefs are positive; however, in cases where a CEO reports
less positive views on diversity, higher moral values will be
associated with greater pro-diversity behavior. We therefore
hypothesize the following:
Hypothesis 1b CEOs’ moral values will moderate the relationship between their workforce diversity beliefs and prodiversity behaviors such that this relationship will be weaker
when moral values are high. Specifically, CEOs with less
positive diversity beliefs will exhibit more pro-diversity
behaviors when they espouse higher moral values; however,
moral values will not appreciably influence pro-diversity
behaviors when CEOs possess positive diversity beliefs.
CEO Pro‑diversity Behaviors and Perceptions
of a CEO’s Commitment to Diversity
When CEOs communicate their beliefs consistently and over
time, organizational members begin to develop expectations
about the strategic priorities of their CEOs (Bertsch and Williams 1994; O’Reilly 1989; Van den Steen 2005). Organizational members who do not have complete information
interpret a particular issue or its strategic importance based
on cues from their CEOs (Connelly et al. 2011). Thus, after
CEOs have labeled workforce diversity as a strategic issue
and have chosen a course of action, they then actively engage
in “sense-giving” to convey their messages through their
words and actions to organizational members. In this regard,
leaders transmit messages to cue organizational members
on the importance and expectations surrounding the display
of inclusive behaviors, and to gather support and influence
organizational members about this commitment (Bertsch
and Williams 1994; Kezar 2013). CEOs exhibit this commitment by actively demonstrating behaviors such as outlining the benefits of workforce diversity in public speeches,
media interviews, and press releases, endorsing the strategic
hiring of minority candidates, initiating diversity councils
13
and encouraging diversity training, and holding managers
accountable for diversity goals. These actions convey the
magnitude of the CEO’s commitment to diversity and signal
that diversity management is an important strategic priority
to the CEO (Connelly et al. 2011). Managers, in turn, interpret their CEO’s level of commitment (“reciprocal sensemaking”) and decide upon a course of action through these
messages (Gioia and Chittipeddi 1991; Beelitz and MerklDavies 2012). Thus, we hypothesize that:
Hypothesis 2 CEO pro-diversity behaviors are positively
related to the degree to which HR managers perceive their
CEOs to be committed to diversity.
HR Managers as Agents of Change
As HR managers are often tasked with implementing
organizational strategies, they are in a position to mobilize
resources, design policies, and implement diversity management initiatives (Guillaume et al. 2014; Piderit and Ashford
2003). For example, HR managers can enact policies and
practices relating to the hiring and promotion of women and
minorities (D’Netto and Sohal 1999; Ng and Sears 2010)
and that build a culture that values and develops workers
from diverse backgrounds (Shen et al. 2009). HR managers are also in a position to identify and assess which policies and practices are most effective at building a climate of
inclusion (Guillaume et al. 2013; Kalev et al. 2006). Kirton
and Greene (2010) note that HR managers are more likely to
buy into diversity initiatives and view them a …
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