Ethics and Business

University of Texas/MBA Houston

Summer 2008

 

Professor David Spence, David.Spence@mccombs.utexas.edu

 

Objective: This course is intended to help students explore ethical issues in business, including both intra-firm ethical dilemmas and broader issues concerning the social responsibility of business.   Each four-hour class period will be divided into two or three modules, per the schedule below.  Please use the discussion questions to guide your reading, and to anticipate the issues raised during class discussion.

 

Participation: You are expected to have read the assigned readings before class and be prepared to discuss the cases when called upon.  Much of the discussion will center on the resolution of the case problems presented.  Voluntary class participation is encouraged, and please be prepared when called upon to tell the class how you would resolve the questions presented by the case.  Missing class, being unprepared for class, and the general appearance of being disinterested or disengaged will hurt your participation grade.

 

In-class case presentations/debates:  During the sessions on May 17 and May 31, you will each lead (as part of a team) the presentation of an ethics case or problem, during class.  There is no written presentation required as part of this work.   However, you are expected to prepare your work before class.  The presentation should lay out the case or problem briefly (5 min. or less), and your team’s proposed course of action.  You should also lead the Q&A/discussion to follow.  The entire presentation (including discussion and Q&A) should consume 30 minutes, of which 20 minutes should be your team’s initial presentation.   A description of the various problems can be found here.  You will sign up for a specific problem during class on May 3.

 

Ethical Analysis:   You should choose two current ethical dilemmas faced by business firms.  These can be taken you’re your own experiences or from news accounts.  For each dilemma, provide a 1-2 page (single-spaced) memo addressing the following issues:

·        What is the ethical issue implicated or raised by this case?

·        How did the manager or company respond to this issue?

·        How would you have responded differently, and why?

Please append the news article(s) or other description of the facts to your memo.  This assignment is due at our last class meeting. 

 

Grading:  Your grade will comprise the following:  in-class discussion (30%); work in class on exercises or debates (35%); and ethical analysis (35%).

 

Readings:   All the readings for this class are contained in the coursepack, handounts and online materials linked via the syllabus.

 

 

Schedule, Readings, and Presentation Topics:

 

May 3

         

Module 1:  A Framework for Ethics and Corporate Social Responsibility

·        Reading:  Framework for ethical decision making, Santa Clara University (browse)

·        Reading:  The Economist’s Special Report on Corporate Social Responsibility (January 19, 2008)

 

Module 2: 

·        In-class debate – debate questions TBA

 

 

May 17

         

Module 3:  Bribery, Facilitation Payments and Campaign Contributions

·        Reading:  Bernardi and Vassill, “The Association Among Bribery and Unethical Corporate Actions:  An International Comparison,” Business Ethics: A European Review13: 342-53.

·        Problem 1:  Customs Agents and “Facilitation Payments” (handout)

·        Problem 2:  Guanxi and Gift-Giving (handout)

·        Problem 3:  Political Contributions (handout)

    

Module 4:  Ethical Consumption, Ethical Investing:  Fair Trade      

·        Reading:  Davies and Crane, “Ethical Decision-making in Fair Trade Companies,” Journal of Business Ethics 45: 79–92.

·        Reading:  Locke, “The Promise and Perils of Globalization:  The Case of Nike,” Working Paper (handout)

·        Problem 4:  Fair Trade Flowers (handout)

·        Problem 5:  Child labor (handout)

·        Problem 6:  A “Living wage” (handout)

 

 

May 31

         

Module 5:  Environment, health and safety – compliance vs. responsibility

·        Reading:  Sun Microsystems Working Paper, Moving Beyond Compliance to True Business Value (December 2005)

·        Problem 7:  Shell in Nigeria (handout)

·        Problem 8:  CO2 Emissions and Going ‘Beyond Compliance’ (handout)

 

Module 6:   

·        Reading:  Hampden-Turner and Trompenaars, Building Cross-Cultural Competence (Introduction, Chps. 1 and 7, excerpt)

·        Reading:  Krogh, Integrity:  Good People, Bad Choices and Lessons from the White House,  (Introduction and Chp. 1, excerpt)

·        Problem 9:   Sexual Harassment (handout)

·        Problem 10:  Making Ethical Decisions in Hierarchies (handout)