Business Ethics in the Social and Political Environment
PHI 2031-01
Spring 2004
Profs. Brennan and Fesmire
Office: Terrace B
287-8286 (wk); 287-4334 (hm)
fesmires@greenmtn.edu
RESPECT: We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness,
callousness and arrogance don’t belong here.
COMMUNICATION: We have an obligation to communicate. Here, we take the time to talk with one another… and to listen. We
believe that information is meant to move and that information moves people.
INTEGRITY: We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it;
when we say we cannot or will not do something, then we won’t do it.
EXCELLENCE: We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone.
The great fun here will be for all of us to discover just how good we can really be.
Enron, 1998 Annual Report
Text (in addition to handouts and reserve readings): Donaldson, Werhane, and Cording, Ethical Issues in
Business, 7th edition (Prentice Hall)
Course Description:
This course is an interdisciplinary approach to the role of business in society including ethical
responsibilities to employees, consumers, stockholders, government, and the environment, as well as corporate
responsibility in the community. Emphasis will be on application of ethical theories to real business situations.
Although readings in philosophy, government, and social issues will be assigned, this is a case discussion
course with individual class participation and an oral team presentation counting heavily toward the course grade.
Two written analyses of cases (essays) will be assigned on corporate ethics or corporate social responsibility issues
of current interest.
The social institution of business permeates our lives as citizens, consumers, employees, and/or managers.
This raises questions of profound practical relevance for each of us, regardless of our chosen profession. For
example:
n What is the appropriate ethical relationship between business and society?
n In making consumer choices, what are our responsibilities to our natural and social environments?
n What responsibilities, if any, do businesses have to employees? To consumers of their products? To the wider society in which
they operate? To the natural environment?
n What do profit-making businesses contribute to society?
n What social, economic, and political arrangements are best suited to the ethical conduct of businesses and individuals? How
well does the American system measure up? Are global free-trade agreements a help, or a hindrance?
Requirements:
I. Two written case analyses on current issues. Deadlines for submitting these papers must be honored because
the case is discussed that day. 20% each.
II. Team presentations (in April). Cases to be assigned. 15%
III. Final essay or exam. 20%
IV. Attendance, Participation, and Preparation. Please be prepared for unannounced quizzes and/or questions for
reflection. Read assigned material in full prior to our discussions. Failure to do so will, as Aristotle would wisely
point out, directly affect your character. It will also annoy your colleagues. Attendance, participation, and
preparation, combined with grades for unannounced quizzes and in-class writing, will together count 25% of the
final grade.
A new case and/or reading is assigned for each class meeting. Each student is expected to do the following
for each case assigned:
1) Be thoroughly familiar with the case situation.
2) Have reached a decision as to the critical issues, or most important problems, involved in the case.
3) Have considered what plan of action would be most appropriate.
For this course to be meaningful, voluntary participation is essential. You will be expected to approach
the situation as if you were actually a manager in the firm being considered. Each student is expected to share his or
her analysis, opinions, and plan of action with the class through our discussions. Attendance is required.
V. Internet. For assistance with ethical theories, use the ethics website at the University of San Diego:
http://ethics.acusd.edu. For additional cases, see http://www.businessethics.ca/cases/index.html.
VI. News. Philosophy, as a “critique of prejudices,” serves to interpret, evaluate, criticize, and redirect a culture.
This cannot be done effectively if we dabble in business ethics as though it is detached from our contemporary
headlines. Please try to keep abreast of goings-on during the semester, and share relevant stories with the class.
One good option would be to listen to National Public Radio News on Vermont Public Radio (88.7 FM).
Academic Honesty and Grading: Please review both the grading system (p. 39, 2001-03 catalog) and the policy on
academic integrity (pp. 47-49) described in the Green Mountain College Catalog. Plagiarism (presenting another’s
work as your own) of any sort will not be tolerated.
Preliminary Schedule of Cases and Readings:
It is highly unlikely that all readings below will be assigned. On some days, other readings, films, or activities will be
substituted.
Date
T Jan 20
Th Jan 22
Case
Peter Green’s First Day (handout)
BASF Corporation vs. Hilton
Head Developers (pp. 1-3)
T Jan 27
H.B. Fuller in Honduras (pp. 20-32)
Th Jan 29
Italian Tax Mores (pp. 98-101)
T Feb 3
The Challenger Disaster (pp. 83-86,
91-96)
Plasma International (pp. 140-141)
Th Feb 5
T Feb 10
Th Feb 12
T Feb 17
Th Feb 19
T Feb 24
Th Feb 26
T Mar 2
Reading(s)
Introduction to the course
“The Social Responsibility of Business is to Increase
its Profits” (Friedman, pp. 33-37); “Stakeholder
Theory of the Modern Corporation” (Freeman, pp. 38-48)
Introduction to Ethical Reasoning (pp. 3-11); General
Issues in Business Ethics (pp. 12-19)
“Truthfulness” (Kant, 100-106); “Is Business Bluffing
Ethical?” (Carr, 106-112); “The Business of Ethics”
(Gillespie, 112-118)
Reading TBA
Intro--Property, Profit, and Justice (pp. 131-139); “The
Justification of Private Property” (Locke, 150-154);
“Benefits of the Profit Motive” (Smith, 155-158)
Dorrence Corporation Trade-offs
“Alienated Labor” (Marx, 159-163); “Wealth” (Carnegie,
(pp. 142-149)
164-168)
‘McMadness’ Hong Kong Style
“The Judgment of Thamus” (Postman, 176-181); “Needed:
(pp. 169-175)
A New System of Intellectual Property Rights” (Thurow,
182-191)
The Oil Rig (pp. 192-193)
“Distributive Justice” (Rawls, 193-203); “The Entitlement
Theory” (Nozick, 203-209)
Attend: Family Farm Seminar Series: “Social Costs of Losing Farms,” Thomas Lyson, Cornell
University
WRITTEN CASE ANALYSIS / RECOMMENDATIONS #1 DUE
Readings TBA
Merck: The Business Enterprise “Does Business Ethics Make Sense?” (Sen, 244-251);
Trust (pp. 238-243)
“Can Socially Responsible Firms Survive in a Competitive
Environment?” (Frank, 252-261); “The Parable of the
Sadhu” (McCoy, 262-269)
Run, Inc.: The Am. Instit. of
“Moral Mazes: Bureaucracy and Managerial Work”
Certified Public Accts (pp. 269-283)
(Jackall, 284-301); “The Moral Muteness of Managers”
(Bird and Waters, 302-314)
Th Mar 4
Spring Break
T 3/16
Th 3/18
T 3/23
Th 3/25
Autonomy,
The Aircraft Brake Scandal
(pp. 323-335)
“Whistleblowing and Professional Responsibilities” (Bok,
335-342); “Employment at Will, Employee Rights, and Future
Directions for Employment” (Radin and Werhane, 343-352); “In
Defense of the Contract at Will” (Epstein, 352-361)
The Case of the Unequal Opportunity
(Gentile, 364-370)
“Management Women and the New Facts of Life” (Schwartz,
370); “White Privilege and Male Privilege: A Personal
Account” (McIntosh, 381)
Ethical Relativism: What Price Safety? International Business, Introduction (pp. 391-395); “The
(pp. 396-399)
Challenge of Cultural Relativism” (Rachels, 410-419); “The
United Nations Declaration of Human Rights” (pp. 424-428)
Just When Is a “Tip” ONLY “To “International Business Ethics and Incipient Capitalism: A
Insure Promptness?” (pp. 429-431);
Double Standard?” (De George, 458-470); “Values in Tension:
Levi Strauss & Co.: Global Sourcing
Ethics Away From Home” (Donaldson, 471- 481)
(Payne and Katz, 432-455)
Fingerhut’s Price Strategy (pp. 486Introduction (482-485); “Persuasive Advertising,
498); Kate: Dot-Com CEO (Schwartz, the Creation of Desire” (Crisp, 503-511); “Ethical Mypopia”
500-503)
(Singer et. al., 511-520)
T 3/30
WRITTEN CASE ANALYSIS / RECOMMENDATIONS #2 DUE
Readings TBA
Th 4/1
Shell and Nigerian Oil (pp. 522-539)
“Scarcity or Abundance” (Simon, 541-550); “The Natural Step”
(Warren and Larson, 550-559); “Cost-Benefit Analysis: An
Ethical Critique” (Kelman, 559-564)
[Thurs., April 1: Family Farm Series: “Successful Models of Community-Based Agricultural Enterprises,” Allen
Matthews, UVM]
T 4/6
Sears Auto Centers (pp. 565-580) “Management Research and Practice: Citigroup’s John Reed”
(Huff, 583-586); “Managing for Organizational Integrity”
(Paine, 586-599); “The Leader’s New Work: Building Learning
Organizations” (Senge, 599-612)
Holiday Break
T 4/13
Th 4/15
T 4/20
Th 4/22
T 4/27
Th 4/29
T 5/4
Final Exam
TBA
Case TBA
Case TBA
Case TBA
Case TBA
Case TBA
Review/Conclusion
Team #1 Presentation; Reading TBA
Team #2 Presentation; Reading TBA
Team #3 Presentation; Reading TBA
Team #4 Presentation; Reading TBA
Team #5 Presentation; Reading TBA