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Date:

11 January 2016, At: 20:27

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

The Migration Toward Ethical Decision Making

as a Core Course Into the B-School: Instructional

Strategies and Approaches for Consideration

Johnathan Nelson , Lola B. Smith & Clifford Steven Hunt

To cite this article: Johnathan Nelson , Lola B. Smith & Clifford Steven Hunt (2014) The

Migration Toward Ethical Decision Making as a Core Course Into the B-School: Instructional

Strategies and Approaches for Consideration, Journal of Education for Business, 89:1, 49-56,

DOI: 10.1080/08832323.2012.749205

To link to this article: http://dx.doi.org/10.1080/08832323.2012.749205

Published online: 13 Dec 2013.

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ISSN: 0883-2323 print / 1940-3356 online DOI: 10.1080/08832323.2012.749205

The Migration Toward Ethical Decision Making

as a Core Course Into the B-School: Instructional

Strategies and Approaches for Consideration

Johnathan Nelson, Lola B. Smith, and Clifford Steven Hunt

Morehead State University, Morehead, Kentucky, USA

Many academicians are asking the following question: “Are we ill-preparing our business

students if we fail to offer future business professionals the opportunity to engage in a greater

understanding of the ethical decision making process?” The authors provide a current review

of the literature on the state of ethics education in business curricula, as well as a detailed

justification and rationale for incorporating ethical concepts as a core course in business school

programs. They conclude with a wealth of resources, approaches, and instructional strategies

to help develop a culture of integrity, inclusive of simulations, articles, cases, role-playing, and

presentations.

Keywords:

business curriculum, business education, business ethics, ethical behavior,

instruc-tional strategies

When Edwin Gay founded the Harvard Business School in

1908, he proclaimed the purpose of business was to do both

“well and good” (Beer, 2011). Such a methodology indicates

the need for business persons to do well for the company and

shareholders by making an honest profit; it also includes a

caveat that business must be conducted in a manner that also

does good for society. Such a mission statement encompasses

a multiplicity of business ethics considerations and points

to the need to incorporate all aspects of strong and ethical

decision making.

But what is ethics? Some may say it is a requirement

for human life, a way to organize our goals so that we can

demonstrate our core values. Yet while it is generally agreed

that “all people recognize some common ethical norms,

dif-ferent individuals interpret, apply, and balance these norms

in different ways in light of their own values and life

ex-periences” (Resnik, 2011, para. 3). However, taken to this

extreme, this perspective suggests each individual has their

own unique moral principles that they should not seek to

impose on others. As such, multiple authors suggest Trevi˜no

and Nelson’s (2011) definition of ethics, where they define

ethics as “the principles, norms, and standards of conduct

governing an individual or group” (p. 17). Thus, while the

Correspondence should be addressed to Johnathan Nelson, Morehead State University, School of Business Administration, Combs Building 313B, Morehead, KY 40351, USA. E-mail: j.nelson@moreheadstate.edu

bottom line in business may often be to make money or go

bust, this definition highlights that there are guidelines

re-lated to ethical conduct that society expects employers and

employees to be guided by in their pursuit of profit. As such,

being ethical is not necessarily the same as following the law

(Velasquez, Andre, Shanks, & Meyer, 2010).

Today’s business leaders, in a continued expansion of

Gay’s ideas (see Beer, 2011), must make collective decisions

which impact events around the globe, not to mention

influ-encing the quality of life for many persons. So, as business

ed-ucators, it is necessary to ask: “Are professors letting business

students down if they do not offer students the opportunity

to engage in a greater understanding of the ethical decision

making process?” The answer appears to be yes, given recent

findings of the Institute of Business Ethics indicate only 20%

of human resources professionals believe business students

are “adequately knowledgeable about business ethics”

(Insti-tute of Business Ethics, 2011). To improve such statistics, it

appears that business schools must do a better job in

provid-ing business students with the opportunity to escalate their

awareness about what it means to do business ethically, as

well as how to conduct business in such a manner. Such an

approach, at the very least, signals students that ethics has,

or should have, a high priority in business practices.

In this article, we include a review of the literature, which

contains justification and rationale for incorporating

ethi-cal concepts as a core course in business school

instruc-tional strategies. We also include examples of approaches and

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J. NELSON ET AL.

instructional strategies to help develop a culture of integrity,

inclusive of simulations, cases, role-playing, and

presenta-tions. Such activities give a voice to values (Gentile, 2010)

and help students better understand the impact of choices

they must make.

THE STATE OF ETHICS IN MANAGEMENT

EDUCATION

Greater emphasis is being placed on business ethics in

man-agement education. This is in large part due to ethics scandals

such as Enron, Tyco, the 2008 Financial Crisis, the desire of

organizations to employ people of integrity, and business

education accreditation requirements placing an increased

emphasis on ethics (Wankel & Stachowicz-Stanusch, 2011).

Many of the leaders involved in these ethics scandals were

educated in business schools, causing some scholars to argue

that business schools are at least partly responsible for these

events; either for not fully preparing students to handle

ethi-cal issues (Ghoshal, 2005), or worse, for promoting unethiethi-cal

behavior in the business curriculum (Gioia, 2003). However,

business education has also been viewed as an essential part

of the solution (Ashforth, Gioia, Robinson, & Trevi˜no, 2008).

From this view, educators can work to prevent future ethical

lapses by more effectively addressing ethics in the business

curriculum. In this section we describe factors that

influ-ence whether ethics is covered and approaches for integrating

ethics into the business curriculum.

Factors Influencing the Integration of Ethics

Into Business Curricula

Despite an increased general emphasis on ethics in

busi-ness education, busibusi-ness schools vary widely in how ethics

is actually integrated into the curriculum (Evans & Marcal,

2005; Evans, Trevi˜no, & Weaver, 2006; Rutherford, Parks,

Cavazos, & White, 2012). Recently, research has examined

factors influencing the decision to include ethics as part of

the required curriculum at the master of business

adminis-tration (MBA) and undergraduate levels. Based on a review

of MBA programs in the United States, Evans et al. (2006)

observed that ethics courses were more likely to be included

in the MBA curriculum for those programs rated as more

prestigious, that had a religious affiliation, and that had a

relatively large percentage of management and marketing

faculty members. These findings appear to largely hold true

at the undergraduate level as well. In examining factors

con-tributing to the decision to require ethics in the undergraduate

curriculum, Rutherford et al. (2012) observed that private

in-stitutions and programs with a religious affiliation were more

likely to require ethics as part of the business curriculum for

undergraduates. Thus, it appears that institutional forces are

an important influence on the decision to include ethics as

part of the undergraduate and MBA business curriculum.

Additionally, Rutherford et al. also found evidence for the

importance of characteristics of the business school’s

lead-ership. They observed that required ethics curriculum was

more likely in colleges of business that had deans who were

women or had a background in the area of management.

Taken together, this research has begun to shed light on

some of the specific reasons that ethics is becoming a part

of the required business curriculum. However, while it

ap-pears that ethics is increasingly included as required

cur-riculum, Rutherford et al. (2012) observed that only about

25% of the Association to Advance Collegiate Schools of

Business–accredited schools in the United States currently

include a stand-alone ethics course as part of the required

curriculum. Additionally, to date, educators do not yet have

an adequate understanding of the effectiveness of ethics

cur-riculum on ethical behavior. For example, Evans et al. (2006)

noted that ethics could be integrated across functional areas

rather than a stand-alone course. However, they noted that

there is little consensus on the long-term effectiveness of

either approach on managerial ethical behavior.

Effectiveness of Business Ethics Curriculum

In a recent meta-analysis of the influence of individual and

organizational factors on ethical decision making,

Kish-Gephart, Harrison, and Trevi˜no (2010) did not find evidence

to support a relationship between education level and

un-ethical choices. As such, this finding appears to support the

argument of Trevi˜no and Brown (2004) that even educated

adults require further guidance in the workplace in regards to

their ethical behavior and decision making. While this

find-ing focused on general educational level and not on ethics

education per se, Kish-Gephart et al. (2010) argued that this

should be disconcerting to academic instructors and raises the

possibility that educators have not adequately contributed to

the ethical development of students.

This same concern is raised by the results of another

meta-analysis examining the influence of business ethics

in-struction where the effect of ethics education on the ethics

of students and business people was small (Waples, Antes,

Murphy, Connelly, & Mumford, 2009). However, they

em-phasized that there is great variability in the effectiveness

of ethics education. Waples et al. argued that their

analy-sis of specific attributes of ethics education as moderators

indicate “that there are several key considerations—some

of which may enhance the effectiveness of business ethics

instruction—to take into account prior to designing,

deliv-ering, and evaluating business ethics instruction” (p. 146).

They highlighted a number of course design decisions

appli-cable at the undergraduate level. For example, based on their

meta-analysis they suggested that ethics curriculum should

include a case-based instructional approach with

opportuni-ties for active learning and application on the part of students.

While the research described herein is somewhat dismal

in regard to the influence of education on ethical behavior, we

believe first and foremost that it suggests educators need to

do more to contribute to the ethical development of students.

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Indeed, the authors believe that there is a silver lining in this

research indicating that while it may be difficult to develop

ethics in students, proactive and carefully designed ethics

interventions can be influential. Indeed, early work on moral

cognitive development found that carefully designed training

increased moral reasoning (Thoma & Rest, 1986).

Addition-ally, there is meta-analytic evidence that ethics curriculum

with the appropriate design features does positively influence

ethics in students and professionals (Waples et al., 2009).

Additionally, it appears that a carefully designed stand-alone

ethics courses as part of the required business curriculum can

provide desired outcomes in regards to ethics (Evans et al.,

2006). Here we present instructional strategies to help

pro-grams implement stand-alone ethics courses as part of the

undergraduate curriculum. We hope that future researchers

will continue to shed more light on the effectiveness of

in-structional elements to further guide such efforts.

Presently there is only limited research on the

effective-ness of specific ethics course design elements (Evans et al.,

2006; Waples et al., 2009) to guide curriculum decisions.

However, Warren, Sampson, and McFee (2011) conducted

structured interviews with administration members of 70

top ranked business schools (MBA) according to

Business

Week

’s 2006 rankings to begin to investigate ethics in the

business curriculum. They observed that 40% of the

pro-grams they investigated included a required ethics or law

course. They observed that there was great variety in the

ac-tual approaches to teaching ethics; programs varied in the

degree to which they included experiential learning (19%),

student learning projects (19%), speakers (4%), and

simu-lations (2%) as part of the ethics instruction. In line with

the other research described herein, it was observed that a

majority of administrators (59%) acknowledged a need for

greater coverage of the ethics in their curriculum.

As we have described, ethics can be incorporated as a

stand-alone ethics course in a number of different ways. Such

approaches can address not only moral reasoning, an

under-standing of the psychological and situational influences on

ethical behavior, and philosophical ethical theories, but also

the development of efficacy beliefs for ethics management

(Nelson, Poms, & Wolf, 2012). Thus, instructors of

stand-alone ethics courses are left with a number of different course

design choices. While it is noted that much research is needed

in order to better address the effectiveness of specific course

design choices, we offer some suggestions here, based on

our collective experience, to help guide ethics instructors in

making these course design decisions.

INSTRUCTIONAL STRATEGIES AND

APPROACHES FOR INCORPORATING

BUSINESS ETHICS

Ethical decision making is quite abstract in scope, so if one

is to engage students in this process there is a need to

illus-trate such choices in more concrete terms. Ethics in and of

itself is an exploration of both problem evasion and

prob-lem solving. In this regard, narratives, such as case studies,

movies, or role-playing, present a venue to ask the following

problem-prevention or problem-solving questions: “To begin

with, what could have been done to avoid this situation?” or

“What might have been done to correct this situation once it

emerged?”

Books and Articles

The most obvious narrative teaching tool is one that is text

based. The literature review demonstrates many authors have

sought to define and identify ethical principles. As a result,

numerous books and countless articles have been written on

the subject of business ethics in terms of fostering personal

integrity and social responsibility. So, finding the best text

for a particular set of business students would greatly depend

on the context of that course. However, the authors have

sug-gested a mere sampling of related texts that provide business

students with a solid understanding of basic business-related

ethical conflicts (see Appendix A).

Case Studies

Narratives of events, people, or experiences can readily be

found in clinical case studies, which usually involve a strong

analysis of a person, industry, or company by focusing on

evolving factors for that episode in relation to a specific

con-text. Business schools, such as Harvard, Stanford, and others

frequently use the case study method within their curricula.

See Appendix B for a sampling of relevant ethics-related case

studies as well as a tool called Case Analysis Coach for use

in developing a framework for analysis and synthesis of key

information.

Role-Playing and Simulations

In role-playing, a student assumes the character of another

person, (usually in a fictionalized setting), within

struc-tured guidelines related to specific content knowledge.

Role-playing can readily facilitate business students’ grasp of

real-world ethical challenges, such as reflecting on a

situ-ation where one might harm other people in order to fulfill

an individual’s own responsibility. For media-related

exam-ples of ethics role-playing, see Columbia University’s (1989)

Seminars on Media and Society (Appendix C). Engagement

in such tasks as simulating entrepreneurial/management

ne-gotiations, finance nene-gotiations, and/or confronting

leader-ship issues can better equip students to deal with real-life

business dilemmas. Moreover, these active participation

sce-narios can aid a student’s understanding of conscious or

unconscious biases that frequently intrude on ethical

de-cision making (Banaji, Bazerman, & Chugh, 2003).

Tech-nologically driven simulations can also train students to

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improve their professional business ethics understanding

(see Appendix C).

Multimedia

Multimedia use is another form of narrative, and these

mir-rors of ourselves, whether based on actual accounts or

fic-titious ones can teach a great deal about ethical

business-decision making. In today’s society, perceptions of what is

considered ethical behavior (what is right, fair, or

benefit-ing society) can so easily become warped (greed, fraud, or

corruption) that learning how to deal with these disorienting

forces can be challenging. There is tremendous power in the

moving image to change lives and to shape society. As such,

a retrospective of films and other multimedia mirrors that

in-vestigate principled business-related issues in society would

present business students with a great opportunity to reflect

on some of these life-defining concerns. Moreover, research

indicates that utilizing visual narratives increase students’

interest and help focus their attention, as well as aid in

re-tention of key information (Gilakjani, 2012). See Appendix

D for a sampling of recent multimedia concerning ethical

dilemmas.

SUMMARY AND RECOMMENDATIONS

In this article, we have provided a literature review

illus-trating the rationale for incorporating ethical concepts as a

core course in Business school instructional strategies.

Ex-amples of approaches and instructional strategies, such as

case studies, multimedia, and role-playing and simulations,

have also been put forth to stimulate the moral imagination

and elicit a sense of honorable responsibility. These methods

have been identified as a means to aid business educators in

moving forth from merely talking about ethics, to

incorpo-rating learning processes that foster greater discussion and

reflection on the complexities of the human condition. After

all, “there are ethical decisions for which knowledgeable,

well-meaning, rational, human beings cannot agree on the

best course of action,” (Brinkman & Sanders, 2013, p. 1).

Only by empowering our students with such instruction can

educators hope to imbue them with stronger ethical

decision-making capabilities.

REFERENCES

Ashforth, B. E., Gioia, D. A., Robinson, S. L., & Trevi˜no, L. K. (2008). Re-viewing organizational corruption.Academy of Management Review, 33, 670–684. doi: 10.5465/AMR.2008.32465714

Banaji, M. R., Bazerman, M. H., & Chugh, D. (2003).How (un)ethical are you?Harvard Business Review,81, 56–64.

Beer, M. (2011, November). MBA programs are failing in ethics: Busi-ness schools need a higher ambition.Bloomberg Businessweek.Retrieved

from http://www.businessweek.com/debateroom/archives/2011/11/mba programs are failing in ethics.html

Brinkman, B., & Sanders, A. (2013).Ethics in a computing culture. Boston, MA: Cengage Learning.

Evans, F. J., & Marcal, L. E. (2005). Educating for ethics: Business deans’ perspectives.Business and Society Review,110, 233–248. Re-trieved from http://onlinelibrary.wiley.com/journal/10.1111/%28ISSN% 291467–8594

Evans, J. M., Trevi˜no, L. K., & Weaver, G. R. (2006). Who’s in the ethics driver’s seat? Factors influencing ethics in the MBA curricu-lum.Academy of Management Learning & Education,5, 278–293. doi: 10.5465/AMLE.2006.22697017

Gentile, M. C. (2010).Giving voice to values: How to speak your mind when you know what’s right. New Haven, CT: Yale University Press. Ghoshal, S. (2005). Bad management theories are destroying good

man-agement practices.Academy of Management Learning & Education,4, 75–91. doi: 10.5465/AMLE.2005.16132558

Gilakjani, A. P. (2012). Visual, auditory, kinesthetic learning styles and their impacts on English language teaching.Journal of Studies in Education, 2, 104–113. doi:10.5296/jse.v2i1.1007

Gioia, D. A. (2003). Teaching teachers to teach corporate governance differently. Journal of Management & Governance, 7, 255–262. Re-trieved from http://www.springerlink.com/content/1385–3457?MUD=

MP

Institute of Business Ethics. (2011, November 7).Call for business ed-ucation to integrate ethics into its core curriculum. Retrieved from http://www.ibe.org.uk/index.asp?upid=30&msid=4

Kish-Gephart, J. J., Harrison, D., & Trevi˜no, L. K. (2010). Bad apples, bad cases, and bad barrels: Meta-analytic evidence about sources of unethical decisions at work.Journal of Applied Psychology,95, 1–31. doi:10.1037/a0017103

Nelson, J. K., Poms, L. W., & Wolf, P. P. (2012). Developing efficacy beliefs for ethics and diversity management.Academy of Management Learning & Education,11, 49–68. doi:10.5465/amle.2009.00115

Resnik, D. B. (2011). What is ethics in research & why is it im-portant? Retrieved from http://www.niehs.nih.gov/research/resources/ bioethics/whatis/

Rutherford, M. A., Parks, L., Cavazos, D. E., & White, C. D. (2012). Business ethics as a required course: Investigating the factors im-pacting the decision to require ethics in the undergraduate curricu-lum.Academy of Management Learning & Education,11, 174–186. doi:10.5465/amle.2011.0039

Thoma, S. J., & Rest, J. R. (1986). Moral judgment, behavior, decision making, and attitudes. In J. R. Rest (Ed.),Moral development: Advances in research and theory(pp. 133–175). New York, NY: Praeger. Trevi˜no, L. K., & Brown, M. E. (2004). Managing to be ethical:

Debunk-ing five business ethics myths.Academy of Management Executive,18, 69–81. doi: 10.5465/AME.2004.13837400

Trevi˜no, L. K., & Nelson, K. A. (2011).Managing business ethics: Straight talk about how to do it right(5th ed.). Hoboken, NJ: Wiley.

Velasquez, M., Andre, C., Shanks, T., & Meyer, M. (2010). What is ethics? Retrieved from http://www.scu.edu/ethics/practicing/ decision/whatisethics.html

Wankel, C., & Stachowicz-Stanusch, A. (2011). Management education for integrity; transcending amoral business curricula. In C. Wankel & A. Stachowicz-Stanusch (Eds.),Management education for integrity: Ethi-cally educating tomorrow’s business leaders(pp. 3–14). Bingley, Eng-land: Emerald Group.

Waples, E. P., Antes, A. L., Murphy, S. T., Connelly, S., & Mumford, M. D. (2009). A meta-analytic investigation of business ethics instruc-tion.Journal of Business Ethics,87, 133–151. doi: 10.1007/s10551-008-9875-0

Warren, B., Sampson, S. D., & McFee, E. (2011). Business schools: Ethics, assurance of learning, and the future.Organization Management Journal, 8, 41–58. doi:10.1057/omj.2011.5

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APPENDIX A: A Sampling of Related Books and Articles

Ethics in a Computing Culture,by B. Brinkman & A. F. Sanders (2013). Boston, MA: Cengage Learning.$90.95; available at Amazon and Barnes & Noble

This text looks at how computing is changing who people are and the professional ethics of computing professions, and issues of trust, safety, reliability, and the transfer of intellectual and intangible property. It addresses concerns of vulnerable groups within the computing community.

Business Ethics: Ethical Decision Making and Cases, by O.C. Ferrell, J. Fraedrich, & L. Ferrell (2013). Mason, OH: South-Western.$54.49; available at Cengage Brain

This text provides an introduction to ethical issues in organizations, the ethical decision making process, and business ethics in a global economy. It includes a number of cases highlighting important ethical issues for students to consider.

The Business Ethics Workshop, by J. Brusseau (2012). Flatworldknowledge.com. Printed version$34.95, e-version $24.95; available at

http://catalog.flatworldknowledge.com/catalog/editions/66

This text includes case studies with excerpts taken from

contemporary blogs and newspapers. The topics lean heavily on bridging the gap between staid discussions of problems faced by IBM executives in the 1980’s to stories that relate to students’ experiences and workplace interests. The topics are designed to incite class discussion.

Taking Sides: Clashing Views in Business Ethics and Society(12th ed.), by L. H. Newton, E. E. Englehardt, & M. Pritchard (2012). New York: McGraw-Hill.$33.75; available at Course Smart

This text offers opposing viewpoints on a number of contemporary business ethics issues. These readings can be used to frame and help students prepare for class debates and discussions on these issues.

Ethical Breakdowns, by M. H. Bazerman, & A. E. Tenbrunsel (2011).Harvard Business Review, 89(4), 58–65; available at Research Gate:

http://www.researchgate.net/researcher/4609503 Max H Bazerman

Companies are spending time and money to install codes of ethics, ethics training, compliance programs, and in-house watchdogs. Yet unethical behavior continues to occur. This article examines psychological processes that contribute to unethical behavior, and focuses on actions to circumvent these influences. An Introduction to Business Ethics(4th ed.), by J. DesJardins

(2011). New York: McGraw-Hill.$39.25; available at Course Smart

This text focuses on ethical reasoning and critical analysis. It covers a wide range of contemporary business ethics issues relevant for managers and organizations.

Honest Work: A Business Ethics Reader, by J. B. Ciulla, C. Martin, & R. C. Solomon (2010). Oxford, England: Oxford University Press.$58.81; available at Amazon and Barnes & Noble.

The main focus is that “business ethics” is about the ethics of individuals.. Includes topics on marketing, privacy, protection of personal information, and intellectual property issues. This book features 103 articles and 80 cases concerning such topics as honesty and trust in the work place, whistle blowing, product liability, finance and environmental ethics.

Managing Yourself: Keeping Your Colleagues Honest, by M. C. Gentile (2010).Harvard Business Review, 88,114–117; available at http://hbr.org/2010/03/managing-yourself-keeping-your-colleagues-honest/ar/1

This article examines what at first glance appears to be a mundane accounting matter. But the consequences—in terms of carrying costs, distorted forecasting, compromised ethical culture, and even legal ramifications—are very serious. This article explores how managers must be able to, and can change the ethical culture of organizations

Giving Voice to Values: How to Speak Your Mind When You Know What’s Right, by M. C. Gentile (2010). New Haven, CT: Yale University Press.$19.76; available at Amazon.

The book is inspired by a program Gentile launched at the Aspen Institute with Yale School of Management. The major tenet of book is that ethics is not a matter of knowing what is right or wrong but rather having the tools to act on your values to oppose pressure. This book presents tools to help enact and “voice” your values.

Note.We have not necessarily done a formal review of texts, but rather highlight these texts or articles as ones that incorporate ideas that can be used in various ethics conversations in multiple business-related classes.

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APPENDIX B: A Sampling of Related Case Studies

The Global Oil and Gas Industry(2010). A. C. Inkpen & M. Moffett.Harvard Business School Review(17 pages). http://hbr.org/product/the-global-oil-and-gas-industry-2010/an/TB0223-PDF-ENG?Ntt=Ethics%2520Case% 2520Studies%25202010 Prod. #: TB0223-PDF-ENG ($6.95 each PDF file.)

This case examines the oil and gas industry, describing industry values and major business segments, including exploration and production, refining and marketing, natural gas, and petrochemicals. The case examines the complex structure of the industry and its competitive dynamics.

Business Ethics: A View from the Trenches(1995). J. L. Badaracco, Jr. & A. Webb. Harvard Business School Review(22 pages) Prod. #: CMR050-PDF-ENG ($6.95 each PDF file.) http://hbr.org/product/business-ethics-a-

view-from-the-trenches/an/CMR050-PDF-ENG?Ntt=Ethics%2520Case%2520Studies

Presents a study of how young managers define ethical issues, think about these issues, and resolve them largely on the basis of personal reflection and individual values, not through reliance on corporate credos or examples of senior executives.

Kitchen Best: Ethics When Doing Cross-Boundary Business in Southern China(2011). Say Goo & Grace Loo. Harvard Business School Publishing (15 pages). http://cb.hbsp.harvard.edu (Search website using title). Product #: HKU948-PDF-ENG ($6.95 each PDF file.)

The case highlights legal and cultural differences that pose a challenge in maintaining ethical standards when doing business internationally. The reader is asked to explore structural and internal control mechanisms that may be used to manage such differences. The case also underlines the importance of personal ethics and system integrity.

A Global Leader’s Guide to Managing Business Conduct(2011). Lynn S. Paine, Rohit Deshpande & Joshua D. Margolis. Harvard Business School Publishing (7 pages). http://cb.hbsp.harvard.edu (Search website using title).

Product #: W1109A-PDF-ENG ($6.95 each PDF file.)

An extensive global survey by three Harvard Business School professors finds that employees agree on core standards of corporate behavior. But meeting those standards will require new approaches to managing business conduct. Companies must bring to the management of business conduct the same performance tools and concepts that they use to manage quality, innovation, and financial results.

Ethics Hold the Key to Network Contradictions(2011). Antonino Vaccaro. Harvard Business School Publishing (7 pages). http://cb.hbsp.harvard.edu (Search website using title). Product #: IIR052-PDF-ENG ($6.95 each PDF file.)

This article addresses “network ethics” - an integrated vision of ethical problems as associated with the management of Internet-driven networks - and highlights the need for carefully analyzing not only financial and relational drivers but also ethical ones. Sound, conscious, careful ethical judgment becomes a fundamental tool for managers to understand the appropriateness of stakeholders’ ethical claims and then build fruitful relationships with those stakeholders based on trust.

Blind Spots: The Roots of Unethical Behavior in Life and Work(2011). Max H. Bazerman & Ann E. Tenbrunsel Harvard Business School Publishing (4 pages). http://cb.hbsp.harvard.edu (Search website using title).

Product #: ROT140-PDF-ENG ($6.95 each PDF file.)

The authors describe the related concepts of bounded awareness and bounded ethicality and discuss the implications of these states for organizations. They then provide three tools for improving our individual ethicality and outline several aspects of organizational life that must be examined more closely to reduce unethical behavior on a group level, including addressing hidden but powerful informal values’ and ethical sinkholes.

Ethical Breakdowns(2011). Max H. Bazerman & Ann E. Tenbrunsel Harvard Business School Publishing (9 pages). http://cb.hbsp.harvard.edu (Search website using title). Product #: R1104C-PDF-ENG ($6.95 each PDF file.)

Companies are spending a great deal of time and money to install codes of ethics, ethics training, compliance programs, and in-house watchdogs and still unethical behavior appears to be on the rise. The authors observe that even the best-intentioned executives may be unaware of their own or their employees’ unethical behavior. Drawing from extensive research on cognitive biases, they offer five reasons for this blindness and suggest what to do about them.

Blood Bananas: Chiquita in Colombia(2010). Mary B. Teagarden & Andreas Schotter. Harvard Business School Publishing (16 pages). http://cb.hbsp.harvard.edu (Search website using title). Product #: TB0245-PDF-ENG ($6.95 each PDF file.)

The case provides a vehicle for analyzing strategic, contextual, and ethical challenges underlying Chiquita’s presence in Colombia, a primary global source for bananas.. Concepts from the case include emerging market risk that globalizing companies may encounter; implications of administrative heritage for organizational structure and communication flows; fundamental challenges of global coordination and control; and strategic communication role of the leader in a crisis. These concepts are applicable in multiple other industries.

Case Analysis Coach(2012). Robert D. Austin & Robert L. Kelley. Harvard Business School Publishing (90 minutes). http://cb.hbsp.harvard.edu (Search website using title). Product #: 4380-HTM-ENG ($6.95 each Web Based HTML.)

The Case Analysis Coach was developed for students to enhance their learning with cases. It is a concise, comprehensive introduction to concepts and processes required for

analyzing/interpreting business case studies. The “Coach” introduces students to the case method of learning including: main steps, sorts of information, and output recommendations. It also demonstrates how to apply an analysis framework to an in-depth case example demonstrating necessary connections formed during analysis.

Learning to Navigate the Rough Seas of Ethics(2010). Sophia Kusyk. Harvard Business School Publishing (7 pages). http://cb.hbsp.harvard.edu (Search website using title). Product #:IRR027-PDF-ENG ($6.95 each PDF file.)

This article tackles three main myths surrounding cross-cultural management: the appeal to local etiquette over moral considerations; the idea that tolerance based on relativism and subjectivism will solve cross-cultural dilemmas; and the belief that profit justifies dubious means. The article includes some dilemmas for readers to consider for themselves, all aimed at helping international managers formulate sound approaches to deal with the questionable behaviors they face across cultures.

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APPENDIX C: Role Playing of Ethical Situations

Seminars on Media and Society distributed by Public Broadcasting System asEthics in America(1989). This 10 one-hour

video-on-demand series uses the Socratic method to build analytical skills and examine ethical questions. Public figures argue ethical dilemmas. The programs aim to sharpen moral reasoning without favoring a particular position by exploring ethical dilemmas in legal, political, medical, corporate, and military arenas. Produced by Columbia University Seminars on Media and Society. You have to sign up, but it is free to download streaming video.

http://www.learner.org/resources/series81.html

LEGAL, POLITICAL, MEDICAL, CORPORATE, AND MILITARY ARENAS.Each episode is arole-playing debateon various ethics topics, among which are: What rights do the guilty have? How does merger mania present an alarming array of ethical problems? Does finding a cure, justify putting test subjects at risk?Some of the renowned role-playing participants are: C. Everett Coop; Antonin Scalia; Rep. Newt Gingrich; Rep. Barney Frank; Rudolph Giuliani; Jeanne Kirkpatrick; Peter Jennings; Mike Wallace; & Geraldine Ferrero

APPENDIX D: A Sampling of Movies, TV Interviews, Streaming Videos, and YouTube Clips

Title and synopsis Framework/ethical questions

(2011) Margin Call.Fictionalized (yet very human) view of key players at an investment firm during the first 24 hours of the 2008 financial crisis. A slice-of–life glimpse at the inner workings of economic collapse (DVD—Lionsgate—$14.99).“Be First, Be Smarter, or Cheat!” Trailer: http://www.youtube.com/watch?v=IXJZE-FNzIg

FINANCE/ECONOMICS:What are corrupting factors that cause a company to buy worthless assets, then knowingly sell them off, even though such a move will cause the stock market to collapse?

(2011) Facebook: The$50 Million Dollar Question.Documentary looks at the past, present and future of social-networking company Facebook Inc., and its founder Mark Zuckerberg. (Bloomberg News, http://www.bloomberg.com/video/65716940/).

VENTURE CAPITALISM and REGULATION:Is Facebook overvalued at$50 billion? The Goldman Sachs/Facebook situation—seems to skirt around existing regulations.

(2011) The Social Network.Fictitious account of Mark Zuckerberg’s creation of Facebook, and subsequent law suits by Winklevoss twins and the co-founder, Narendra. (DVD—Columbia Pictures—$9.99).“You can’t make 500 million friends without making a few enemies.” Trailer:

http://www.amazon.com/gp/product/B004HWT6DO/ref=atv feed catalog?tag=imdb-amazonvideo-20

VENTURE CAPITALISM/IDEA PLAGERISM—

FRIENDSHIP/BETRAYAL:Is Zuckerberg a prophet, genius, billionaire, or a traitor? What are other examples of plagiarism/ copyright infringement in workplace?

(2006) EnronThe Smartest Guys in the Room.Documentary of one of history’s greatest business scandals. In 2001 the top executives of America’s seventh largest company walked away with over one billion dollars, while investors and employees lost everything.

(DVD—Amazon.com—$8.99).“The greatest innovation of the new economy was greed.”

Trailer: http://www.youtube.com/watch?v=1dNZaKLjYbc

ACCOUNTING FRAUD/SARBANES-OXLEY ACT OF 2002:Enron’s financial condition was sustained by systematic and creatively-planned accounting fraud. How does Sarbanes-Oxley help to change such conditions?

(2010) The Inside Job.Documentary of how 2008 financial crash happened via deregulation, greed. And deep-rooted corruption that left middle-income Americans jobless and homeless. Journalist, politicians, and financial insiders are interviewed. (DVD—Sony—$14.99). “There’s nothing we can trust anymore.”

Trailer:

http://www.blockbuster.com/browse/catalog/movieDetails/486860

FINANCE/ECONOMICS:How did repeal of Glass-Steagall act lead to the creation of mega-banks that combined traditional lending with risky investment banking and a high-risk gambling mentality?

(2005) North Country.A fictionalized account of the experiences of Lois Jenson, a real person who waged one of first major successful class-action sexual harassment cases in the United States—Lois E. Jenson v. Eveleth Taconite Co. (Warner Home Video

DVD—Amazon.com—$7.63).“All she wanted to do was to make a living, instead she made history.”

Trailer: http://www.youtube.com/watch?v=jXkVQm0QPyY

WORKPLACE GENDER ISSUES:Moral, social, and legal aspects of a woman’s right to equal pay for equal work. Many occasions arose when top management could have taken some positive action to stop the abuse, but did not. Why not?

(Continued on next page)

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56

J. NELSON ET AL.

APPENDIX D: A Sampling of Movies, TV Interviews, Streaming Videos, and YouTube Clips

(Continued)

Title and synopsis Framework/ethical questions

(2005) Thank You For Smoking.Fictional dark-comedy about tobacco industry lobbyist Nick Naylor whose job is to promote cigarette smoking in a time when health hazards are all too apparent. Nick, however, loves his job, and uses twisted logic to place his clients (the tobacco industry) in the positions of either being altruistic do-gooders or victims. (DVD—Amazon.com—$2.99).“Nick Naylor doesn’t hide the truth...he filters it.”

Trailer: http://www.youtube.com/watch?v=iBELC vxqhI

ADVERTISING/LOBBYIST—TOBACCO, ALCOHOL AND FIREARMS:What ethical dilemmas does lobbying present for products that are lethal? How does an advertising person manage conflict between a need to protect human lives, and a great bottom line?

(1999) The Insider.Docudrama about Jeffrey Wigand, a real-life Brown & Williamson tobacco executive, who decides to appear on the CBS-TV News show “60 Minutes” to acknowledge the tobacco industry, has been both aware that cigarettes are addictive. The big tobacco corporations try to silence Wigand, threatening his life and his family. (DVD— $6.41—Buy.com).“What got broken here doesn’t go back together again.”

Trailer: http://www.youtube.com/watch?v=6wwJp8VDGzE

WHISTLEBLOWER/HEALTH/LEGAL ISSUES:

How can it be made possible for insiders who know about unethical situations in corporations be able to come forward without punitive damages?

Why self-sacrificing oneself at the expense of the safety of one’s family?

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