Schedule of Topics and Assignments

FIRST WEEK

INTRODUCTION TO THE COURSE: BASIC ETHICAL CONCEPTS (APPENDIX I & II)

1. The Heightened Importance of Ethical Concerns
2. IQ vs. EQ
3. Ethical Reasoning Tools (ERTs)
4. Fundamental Ethical Theories: Consequential and Nonconsequential Theories
5. The Four R's of Professional Responsibility
6. Market Failures and Regulation
7. Structuring the Business Environment to Yield Ethical Behavior: New Game Theory
8. Why Good Managers Make Bad Ethical Choices
9. Optimum Ethical Outcomes: Case - "Promises, Promises"

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SECOND WEEK: PART 1

GIFTS, SIDE DEALS AND PAYOFFS (MODULE #2)

Cases:

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Study Questions:

1. Apply Neutral Omnipartial Rule Making (NORM) to the "Rodger Berg" case. Does it meet all of the requirements of this ERT? Explain.
2. Using Consequential Ethical Theories (CET), who are the winners and losers in the Rodger Berg case? Is the net benefit to society positive or negative? Support your conclusion with other ERTs.
3. What alternative course of action could Rodger have taken which would have yielded a more optimum ethical outcome (OPT)?
4. Apply NORM to the "Buynow Stores" case. Does it meet all of the requirements of this ERT? Explain.
5. If the buyer keeps the envelope of cash provided by the suppliers who are the winners and losers? Use appropriate ERTs in your answer.
6. What alternative action could the buyer take which would yield a more optimum outcome (OPT)?

SECOND WEEK: PART 2

SOCIAL RESPONSIBILITY (MODULE #5)

Cases:

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Study Questions:

1. Utilizing the Consequential Theories ERT who are the winners and losers in the Plasma International case? Is there a net gain or loss to society? Also apply Nonconsequential Theories (NET) to this case. Does this analysis contradict or support the CET analysis? Explain.
2. Apply Stakeholder Analysis (SA) to the "Plasma International" case. Do the same with Friedman's Social Responsibility Concept (FSR). Can you reconcile the two ethical concepts? Do the same with the Property Concept and Social Entity Concept of the Corporation.
3. Identify the principal economic, financial and social factors which enabled Enron to grow and prosper.
4. Utilizing appropriate ERTs, explain the apparent reasons for aberrant and alleged illegal activities of Enron's independent auditor, Arthur Anderson, and its principal investment bankers, J.P. Morgan Chase and Citicorp.
5. What remedial actions would you recommend to prevent another Enron from occurring?

THIRD WEEK: PART 1

INDUSTRIAL ESPIONAGE AND TRADE SECRETS (MODULE #6)

Cases:

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Study Questions:

1. In the Stockbrokers Story Case, was Carol Hoffman justified in taking a diskette with the names, addresses, telephone numbers and financial holdings of all her clients at Smith & Co. to her new position at Jones and Co.? Support your answer with appropriate ERTs.
2. In the Secret Suit Case, was the fact that a number of Bayer's Agfa key personnel had been hired by its rival GE in the last few years, evidence that GE was engaged in a concerted effort to learn Bayer's technical secrets? What other evidence in this case would support such an assertion? Use ERTs in your analysis.

THIRD WEEK: PART 2

WHISTLE BLOWING AND LOYALTY (MODULE #3)

Cases:

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Study Questions:

1. Is Sam Phelps in the "Delta Industries" case justified in blowing the whistle? Use your whistle blowing ERT and other appropriate ERTs to support your answer.
2. Is Bill Jones in the "Copper "O" Case" justified in blowing the whistle? Use the whistle blowing ERT and other appropriate ERTs to support your answer.
3. Is there a way for Sam Jones to blow the whistle in a manner that may minimize the chances of him losing his job?

FOURTH WEEK: PART 1

CONTROL BY LAW: COMPLIANCE AND THE CORPORATE SENTENCING GUIDELINES (MODULE #7)

Cases:

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Study Questions:

1. Does it seem fair that Daiwa Bank, which has incurred a major loss, should be so heavily penalized by the U.S. government? Explain utilizing appropriate ERTs.
2. How could Daiwa or any other company which violated Corporate Sentencing Guidelines lessen the severity of fines and/or imprisonment.
3. In the Darling International Inc. case (Pollution Case), where did the employees go wrong? Use appropriate ERTs in your analysis.
4. How or will the Corporate Sentencing Guidelines affect your behavior vis a vis your company as you pursue your career goals?

FOURTH WEEK: PART 2

PRODUCT LIABILITY (MODULE #9)

Cases:

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Study Questions:

1. What ethical norms were breached in the Dalkon Shield and Breast Implant Cases? Support your answers with appropriate ERTs.
2. How do you explain the behavior of A.H. Robins given that they were a pharmaceutical company attuned to a strict regulatory process under the aegis of the FDA?
3. How does the circumstances of the Norplant case differ from the Dalkon Shield and Breast Implants Cases? Using appropriate ERTs do you believe the suits against Norplant were justified?
4. Several states have or are seriously considering limiting the size of jury awards in product liability cases. The U.S. Congress is also considering such legislation. Do you support these actions? Explain utilizing ethical reasoning tools.
5. What role can "Moral Hazard" play in product liability situations? Where else does this concept apply?

FIFTH WEEK: PART 1

MORAL STANDARDS ACROSS BORDERS (MODULE #8): SIMULATION

Case:

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Study Questions:

1. Donaldson presents a list of moral minimums plus an algorithm for resolving home/host country conflicts. Apply Donaldon's concepts to the Oil Rig Case. List the differences in treatment between the Expats and Angolans. Which are justified? Which, if any, are not? Keep in mind that the home country standards which you identify cannot exceed those actually practiced (prevailing) in the home country. Be sure to utilize appropriate ERTs to justify your positions.
2. 2. Using Consequential Ethical Theories (CET) who are the winners and losers in the Oil Rig Case? Also apply Nonconsequential Theories (NET) to the case. Does this analysis contradict or support CET analysis?
3. Are there other ERTs which are helpful in analyzing this case? Explain.

Note: Since this is a simulation no Memorandums should be submitted for the Oil Rig Case.

FIFTH WEEK: PART 2

RIGHTS TO PRIVACY? (MODULE #13)

Cases:

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Study Questions:

1. Based on the "Open Secrets" case, evaluate, utilizing appropriate ERTs, the positive and negative impacts of Employee Assistance Programs (EAPs). Does your current (or most recent employer) offer these services to its employed? How could they be structured to protect the privacy of those who choose to participate?
2. Should information on an individual's medical/psychological treatment by a hospital or medical professional be treated differently than other data? Explain using appropriate ERTs.
3. Do you believe the current state of privacy rights on the internet is adequate? Support your answer with appropriate ERTs.
4. Given the pervasiveness of electronic information gathering in our society can you suggest any steps to protect the privacy of individuals?

SIXTH WEEK: PART 1

SALES ETHICS IN FINANCIAL MARKETS (MODULE #10) SIMULATION

Case:

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Study Questions:

1. Describe the relationship (duty) of the broker to his company (Brock Mason) vs. his relationship to his client (Mrs. Sternwell) Are these obligations incompatible?
2. Given Mrs. Sternwell's background, financial profile and goals, evaluate each of the investments in which her funds were placed by her broker. Which ones are appropriate, which are not? Use appropriate ERTs in your assessments.
3. Does Mrs. Sternwell bear any responsibility for her plight? Explain.
4. Utilizing an appropriate ERT explain how the basic conflict between a broker and a client could be resolved by changing the compensation structure for security brokers. Use appropriate ERTs in your discussion

Note: Since this is a simulation no Memorandum should be submitted for the Brock Mason case.

SIXTH WEEK: PART 2

INSIDER TRADING (Module #11)

Cases:

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Study Questions:

1. In the Accountants case which SEC regulation (Insider Trading Theory) did the bank president Werner Wolf violate? Is the accountant Donald Davidson correct in his assessment that by trading on the information given to him by Mr. Wolf he will encounter no problems? Explain utilizing ERTs.
2. Utilizing appropriate ethical reasoning explain why the Supreme Court overruled the SEC's reprimand at Raymond Dirks in the Equity Funding case in the 1960's.
3. In "The Tip" case, was Robert Sacks merely an amateur, seeking "to make a buck" or a violator of the SEC rules on Insider Trading?
4. Do you believe, as is argued in the text of the Accountant's Case, that Insider Trading prohibitions inhibit the efficiency of financial markets? Or do you agree with the Supreme Court and the SEC that the current Insider Trading regulations are essential to the fairness and growth of financial markets? Use Ethical reasoning tools in your analysis.

SEVENTH WEEK: PART 1

PATTERNS OF DISCRIMINATION (MODULE #12)

Cases:

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Study Questions:

1. In the Foreign Assignment case has Sara Strong experienced "sexual harassment"? In this regard evaluate the behavior of Bill Vitam her colleague in Mexico and executive vice president Tom Fried?
2. If Sara decides to leave the Bank's employment, apply Consequential Ethical Theories and determine the winners and losers. Are there other ERTs which would be helpful in this case? Explain.
3. Do the circumstances of the Propmore case qualify as "Sexual Harassment"? What actions, if any, should Jane Thompson's boss take?
4. Given current EEOC guidelines and 1998 Supreme Court decisions on "Sexual Harassment" how can a company limit its potential liability when one of its employees alleges sexual harassment?

SEVENTH WEEK: PART 2

FINAL EXAMINATION

Students will be required to analyze two cases they have not seen before. This is a closed book exam. The instructor will provide a list of the Ethical Reasoning Tools (ERTs) used in the course.