Ethics and Business

University of Texas/MBA Houston

Summer 2009

 

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 modules, per the schedule below. 

 

Participation: You are expected to have read the assigned readings before class (including the cases presented that day) and be prepared to discuss them.  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:  Student groups will lead the presentation of each of the 10 ethics case problems.  There is no written presentation required as part of this work, though student teams may wish to prepare slides or handouts as part of their presentations of the case.   The presentation should lay out the case or problem briefly (5 min. or less), and your team’s proposed course of action.  Your team 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 in April.

 

Ethical Analysis:   You should choose two current ethical dilemmas faced by business firms.  These can be taken you’re your own experiences or from contemporary news accounts, but should not cover the same episodes or examples we discuss in class.  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 16

         

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:  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)

 

May 29/30 

    

Module 3:  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:  Lichfield, France and Total Under Fire for ‘Financing’ Regime, The Independent (Sept. 2007)

·        Reading:  Christian Science Monitor’s “Ethical Investing” web page (browse)

·        Problem 4:  Fair Trade Flowers (handout)

·        Problem 5:  Child labor (handout)

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

 

 

June 12/13

         

Module 4:  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 5:   

·        Reading:  Hoecklin, Managing Cultural Differences: Strategies for Competitive Advantage (pp. 1-48)

·        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)