TO:
Graz Executive MBA Students
FROM:
Nelson Shelton
Instructor for GMAN 511, Ethical and Social Issues in Business
DATE:
June 6, 2007
RE:
GMAN 511
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I look forward to seeing you at Saint Mary’s College in August for GMAN 511. The
course is scheduled to take place in two full-day sessions on Saturday, August 4 and
Tuesday, August 7 or Wednesday, August 8 (depending on the final scheduling of
company visits). GMAN 511 is a half-length course, which explains the two-day
schedule.
The fundamental purpose of the course is to provide you with a framework for thinking
about – and incorporating into your decisions – ethical issues in business. Through a
variety of case studies, we will explore real and representative situations that contain
ethical dimensions, so that you will get practice in thinking through the ethical
implications of business decisions.
To make our two days together as productive as possible, you will need to do the reading
for the course before you come to Moraga. I have assigned a book to be read for the
course: Business Ethics at Work, by Elizabeth Vallance. This short book is unusual in
having a very distinct point of view about business ethics, and this clarity allows the
author to present a coherent and well integrated overview of the subject. However, not
everyone would agree with the author’s point of view, so we will want to consider how
adequate her perspective is for business professionals. In any case, the book provides a
very defensible and useful framework for business ethics that we will refer to throughout
our discussions of the course materials.
In addition to the book, I ask that you read other materials taken from the Harvard
Business School catalog of course materials. Most of these other readings are case
studies, but some are articles selected to provide you with explanations and perspectives
that are not included in the book. Below, I outline how the two days of class will be
organized, and identify the various readings associated with each part of the course.
Day 1: Theme: Ethics in an Organizational Context
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Commentary on and discussion of the framework for business ethics provided by
Elizabeth Vallance in her book Business Ethics at Work.
Consideration of the case presented in the film Other People’s Money, in light of
Vallance’s suggested ethics decision-making framework.
Discussion of the case Martha McCaskey. I will lead discussion of this case.
Discussion of the case Kathryn McNeil. I will lead discussion of this case.
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Creating an ethical organization, with reference to the article “Managing for
Organizational Integrity”, and the cases already discussed. Lecture/discussion
Discussion of the case Accounting Fraud at Worldcom. I will lead discussion of
this case.
Corporate governance and ethical misconduct by corporate officers, with
reference to the article “Five Elements of Corporate Governance to Manage
Strategic Risk.” Lecture/discussion.
Summary of Readings for Day 1:
1.
2.
3.
4.
5.
6.
Book: Business Ethics at Work
Case Study: Martha McKaskey
Case Study: Kathryn McNeil
Article: “Managing for Organizational Integrity.”
Case Study: Accounting Fraud at WorldCom.”
Article: “Five Elements of Corporate Governance to Manage Strategic Risk.”
Day 2: Theme: Ethics in a Stakeholder Context
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Introduction to the stakeholder context, and discussion of the ideas in two articles:
1) “Corporate Purpose and Responsibility,” and (2) “The Institutional Perspective
on Management.”.
Discussion of the case: Starbucks and Conservation International.” I will lead
discussion of this case.
Discussion of the case: Hitting the Wall: Nike and International Labor Practices.
I will lead discussion of this case.
Discussion of the article: “Values in Tension: Ethics Away from Home.”
Discussion of four cases, in the following order. For these cases, the class will be
organized into four equal-size groups of three students, and each group will
present and manage the discussion of one of the cases. See note below about this
case study assignment.
o IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor.
o Life, Death, and Property Rights: The Pharmaceutical Industry Faces
AIDS in Africa.
o Amanco: Developing the Sustainability Scorecard.
o Global Climate Change and BP Amoco.
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Summary/Conclusions and Writing Assignment for the course (due at a date to be
determined).
Summary of Readings for Day 2:
1. Article: “Corporate Purpose and Responsibility.”
2. Article: “The Institutional Perspective on Management.”
3. Case Study: Starbuck’s and Conservation International.
4. Case Study: Hitting the Wall: Nike and International Labor Practices.
5. Article: “Values in Tension: Ethics Away from Home.”
6. Case: IKEA’s Global Sourcing Strategy: Indian Rugs and Child Labor.
7. Case: Life, Death, and Property Rights: The Pharmaceutical Industry Faces AIDS in
Africa.
8. Case: Amanco: Developing the Sustainability Scorecard.
9. Case: Global Climate Change and BP Amoco.
Note on Case Studies and the Group Case Study assignment
In this course, you will be involved in discussing case studies in which I structure the
discussion, and also those in which you and other students will present and structure the
discussion as members of a small group. In both situations, you need to prepare yourself
to be an active and informed participant in the discussion.
For cases which are led by me or by another group of students, each of you should
prepare for the discussion by:
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Reading the case thoroughly, more than once if necessary.
Identifying the issue or issues that have an ethical dimension.
Developing a tentative position on the issue(s). Whenever possible, mentally
refer to the materials you are reading, such as the book or an accompanying
article, for ideas about how to analyze the issue(s). Elizabeth Vallance, the author
of the book, gives an ethical decision-making procedure that you should consider.
Identify arguments that support the position you have developed.
Even if you have a position, remain open to the arguments of others, and be
prepared to change your mind if you hear compelling reasons to do so.
For cases presented by student groups, be prepared to ask questions and/or
comment on the analysis given by the presenting group.
For the case which you and two other classmates will present:
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To develop a presentation, you will need to do all of the things noted above for
case preparation, plus organize a presentation of the case for the class.
Your presentation should have the following elements:
o A review of the story in the case, sufficiently detailed to provide a clear
description of the issue(s) facing the company in the case.
o Your group’s analysis of the alternatives facing the company, and of the
right course of action by the company, as well explained and defended as
possible.
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Your presentation should take no more than 25 minutes, and you should be
prepared to take questions and respond to comments for an additional 20 minutes.
Reading Materials and Organization of the Case groups:
Reading materials: Sue Coberg of the Graduate Business Office will arrange for you to
acquire the materials for the course. She can be contacted at scoberg@stmarys-ca.edu, if
you have any questions.
Group Formation and Case selection: You should have an opportunity during the four
days of your initial course (Management Communication) in Graz to organize yourselves
into four groups of three individuals each, and to decide which groups will do which of
the four cases identified for student presentation on Day 2. Please contact me at
nshelton@stmarys-ca.edu if you have any questions about this task.
Please email either me or Sue Coberg the composition of the four groups and which case
each group will present once you have decided on these things.
I look forward to meeting and interacting with you in August, and I hope we have a
productive and stimulating time together.