UNIVERSITY OF SOUTHERN INDIANA
School of Business
Management 361
Business Environmental Factors
Spring 2005
MWF 1100-1150a OC 2017
Dane M. Partridge, Ph.D.
OC 3066C
465-7085
465-1044 (fax)
dpartrid@usi.edu
http://business.usi.edu/dpartrid/
Office Hours:
MWF 930-1045a
W 430-545p
and by appt.
INTRODUCTION
This course builds on the introductory courses in Management and Marketing to provide
students with a broader view of the business organization. The primary objectives of the
course are to enhance students’ awareness of the various stakeholders of an organization and
increase students’ understanding of ethics and social responsibility in organizational decisionmaking. “If the challenge for executives in the 1990s was to transform corporate behemoths
into nimble competitors, the challenge in the coming years will be to create corporate cultures
that encourage and reward integrity as much as creativity and entrepreneurship” (Business
Week Special Report, “The Crisis in Corporate Governance,” May 6, 2002). How can an
organization create such a culture?
Note: MNGT 201: Survey of Management or MNGT 305: Management of Organizational
Behavior and MKTG 201: Introduction to Marketing or MKTG 305: Principles of Marketing, are
prerequisites for this course.
READINGS
Students should obtain the following book:
Lawrence, Anne T., James Weber, and James E. Post. Business and Society, 11e
(McGraw-Hill Irwin, 2005). (Note that new books available for purchase come shrinkwrapped with a registration code to premium content.)
Note also the textbook web site: http://www.mhhe.com/lawrence11e.
Copies of the text should be available for purchase in the Bookstore. All other assigned
readings will be on reserve in the David L. Rice Library or available from the instructor.
Supplements to the course outline and reading assignments may be distributed during the
semester.
Much of the information about trends in management that you will obtain as a manager will
come from business periodicals, such as the Wall Street Journal, Business Week, and Fortune.
It is important to learn how to read these sources quickly and critically. As you do so, you
should keep in mind the following questions: (1) What is the “story” that the article is telling?
And (2) What kind of evidence does the article use (should we believe the article’s conclusions)?
COURSE REQUIREMENTS, METHODS OF EVALUATION, AND RESPONSIBILITIES
In addition to the required reading, there will be four exams and a number of individual and
group exercises. Any assignments turned in late will be penalized by 50 percent (and any late
assignments must be submitted no later than one week following the original due date). Any
in-class assignment missed due to absence must be submitted within one week.
Grading will be determined on the basis of the following weights:
Exams
Cases and Exercises
Briefings and class
participation
60% (4 @ 15% each)
30%
10%
Regular attendance is recommended, as the required readings and class meetings are intended
to be complements, not substitutes. On the exams, students will be responsible for both
material covered by the readings and material discussed in class. Students are expected to
keep up with the required reading, as assigned, and to come to class prepared for discussion.
Students are reminded that under the credit hour system a three-credit class requires on
average six hours of outside preparation per week.
Students often observe that they would like their classes to “better relate to the real world.”
For students to apply what they have learned in the classroom to actual work environments
students have responsibility for active, rather than passive, involvement in the learning
process. The instructor’s role in active or experiential learning is to serve as a facilitator of
student-directed learning, rather than being the provider of teacher-directed instruction. Some
have called this a shift from “teaching by talking” toward “learning by doing.”
The
responsibility for learning is borne by the learner, while the teacher makes resources available
and helps the learning process.
Case Assignments
Each student will participate in several case assignments, which will include (1) the
preparation of a written case note and (2) presentation of the note and leading of class
discussion of the case (plan for 10-20 minutes). One case assignment (team) will involve a
Case Study in Corporate Social Policy at the end of the text, while at least one other case
(individual) will involve a Discussion Case at the end of one of the chapters in the text. The
Text-end Case Study note should be no more than five pages, typed, double-spaced; the
Chapter Discussion Case note should be no more than two pages, typed, double-spaced. Case
notes are due at the beginning of class the day the case is scheduled for discussion.
When preparing your case note, assume the reader is familiar with the case; there is no need to
summarize the facts of the case. The case note should include an analysis of the case and
consideration of the questions posed at the end of the case. The class presentation should
discuss the problem, the alternatives, and the recommended solution. Presenters should be
prepared to answer questions from the instructor and/or their classmates, and are encouraged
to use appropriate visual aids.
Further details of these requirements and grading procedures will be discussed in class as is
necessary.
Students are encouraged to stop in during office hours to talk about any problems or
suggestions you may have concerning the course, about careers, or just about management or
things in general. If the scheduled office hours are inconvenient feel free to make an
appointment. To underscore the value of office hours each student will be expected to meet
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briefly with Dr. Partridge early in the semester. To facilitate electronic communication,
students are requested to schedule this initial appointment via e-mail. Please be reminded that
USI provides free e-mail for students through MyUSI. The University routinely uses this USI email account for both formal and informal communications with students. Students are
expected to check their USI e-mail account regularly for University correspondence. If
you prefer to use an e-mail account other than the one provided you by USI, you should
forward your USI e-mail to the account you use most often.
WHAT (SOME) STUDENTS LIKED LEAST…



“Hardly anybody got involved in discussion”
o Many students report that they prefer classes with discussion to straight lecture,
but they also report that participation should be voluntary – seems to me that
means many students prefer to be in a room where discussion is occurring,
provided they’re not expected to contribute…
“We talked more about current events than course material that was on exams”
o The required reading is the foundation for the course; the class meetings build on
that foundation. My task in class is not to read the chapter to you, but to provide
an overview and supplemental material. Your job is to come to class prepared for
discussion and ask questions about anything you don’t understand.
“Calls on students; participation should be voluntary”
o Exams aren’t optional, projects aren’t optional, why should participation be
voluntary?
Student Rights and Responsibilities: Academic Misconduct
Truth and honesty are necessary to a university community. Each student is expected to do his
or her academic work without recourse to unauthorized means of any kind. Both students and
faculty are expected to report violations of the expectations of academic honesty. USI policies
and regulations governing the conduct of students and the procedures for handling violations
of these policies and regulations are found in the USI Bulletin and on the Dean of Students'
website (http://www.usi.edu/stl/index.htm).
Students are reminded of the School of Business expectations regarding the avoidance of
plagiarism. Plagiarism includes:
(1) failing to cite quotations and borrowed ideas,
(2) failing to enclose borrowed language in quotation marks, and
(3) failing to put summaries and paraphrases in your own words.
(Source: Diana Hacker, A Pocket Style Manual 2e (Boston: Bedford/St. Martin’s, 1997), p. 92.)
Students are specifically reminded that electronically copying text from a source document
such as a web page and pasting that into one’s own document, without putting the borrowed
language in quotation marks, is plagiarism, even if the source of that language is included in a
reference list or an in-text citation.
Point of Information:
From Business Week, December 9, 2002:
College students are disturbed by recent corporate scandals: Some 84% believe
the U.S. is having a business crisis, and 77% think CEOs should be held
personally responsible for it. But when students are asked about their own
ethics, it’s another story. Some 59% admit cheating on a test. And only 19%
say they would report a classmate who cheated…. “There’s a lack of
understanding about ethics and how ethics are applied in real life,” says Alvin
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Rohrs [CEO of Students in Free Enterprise]. “We have to get young people to
stop and think about ethics and the decisions they’re making.”
THE INSTRUCTOR
DANE M. PARTRIDGE -- Associate Professor of Management; B.A., Michigan State University;
M.S., Cornell University; Ph.D., Cornell University. Dr. Partridge's primary teaching and research
interests involve human resource management and labor relations. His research has been
published in the Journal of Collective Negotiations in the Public Sector, the Employee
Responsibilities and Rights Journal, the Journal of Labor Research, and the Denver University
Law Review. Current research areas include the effect of pay structures on worker attitudes and
gender differences in perceptions of sexual harassment. Dr. Partridge has presented management
development programs on topics including employee involvement in quality improvement and
managing workforce diversity. Dr. Partridge has also taught at Virginia Tech, Radford University,
and Roanoke College, and has received several awards for teaching excellence.
COURSE OUTLINE, TENTATIVE SCHEDULE, AND READING ASSIGNMENTS
Note: only those supplemental readings marked with a “*” are assigned to all; others will be
divided for presentation by individual students. Those readings marked with a “@” will be
divided for presentation by a pair of students. Presentations of supplemental readings are
expected to be a brief summary of the several key points in the article and the implications for
managers; these presentations will be expected to make use of a visual aid such as a
PowerPoint-generated overhead transparency. The briefings are intended to reinforce students’
analytical and communication skills: every USI business graduate should be able to read a Wall
Street Journal, Harvard Business Review, or other practitioner publication article, identify the
key points (the implications for managers), and communicate those points effectively to their
colleagues. Consistent with the active learning approach, if you’re not sure what the point of a
briefing is (the “so what”), ask! All supplemental readings are intended to reinforce, elaborate
upon, or provide additional examples of material contained in the text and lecture.
INTRODUCTION AND OVERVIEW (1/10)
 “Tapping the Trust Fund,” Fortune, April 29, 2002. (*)
1. THE CORPORATION IN SOCIETY
a. The Corporation and Its Stakeholders (1/12, 1/14)
 Joseph Fuller, “A Letter to the Chief Executive,” Harvard Business
Review, October 2002. (@)
 Cisco in the Coyote Valley
b. Public Affairs Management (1/19, 1/21)
 Humane Treatment of Animals – The Fast-Food Industry under the
Spotlight
2. BUSINESS AND THE SOCIAL ENVIRONMENT
a. Corporate Social Responsibility (1/24)
 “Should Companies Care?” Fortune, June 11, 2001. (*)
 Roger Martin, “The Virtue Matrix,” Harvard Business Review, March
2002. (@)
 Aaron Feuerstein – Facing Challenges as a Socially Responsible Owner
b. Corporate Citizenship (1/26, 1/28)
 “God and Business,” Fortune, July 9, 2001. (*)
 “Enlisting Multinationals in Battle,” Wall Street Journal, November 30,
2001.
 “How to Save the World? Treat It Like a Business,” New York Times,
December 20, 2003.
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 Social Auditing at VanCity
 GlaxoSmithKline and AIDS Drugs for Africa
 EXAM I (1/31)
3. BUSINESS AND THE ETHICAL ENVIRONMENT
a. Ethical Issues in Business (2/2, 2/4)
 “Photo Processors Face a Tough Dilemma: When to Call Police,” Wall
Street Journal, June 1, 2001.
 “Company’s Silence Countered Safety Fears About Asbestos,” New York
Times, July 9, 2001.
 “P&G’s Covert Operation,” Fortune, September 17, 2001.
 “How Corrupt Is Wall Street?” Business Week, May 13, 2002. (*)
 “Why the Bad Guys of the Boardroom Emerged en Masse,” New York
Times, June 20, 2002.
 “Spinning the numbers,” HRMagazine, November 2002. (*)
 Max H. Bazerman, George Loewenstein, and Don A. Moore, “Why Good
Accountants Do Bad Audits,” Harvard Business Review, November
2002. (@)
 “Ex-Executives Tell How Bristol Burnished Its Financial Results,” Wall
Street Journal, December 12, 2002.
 “None of Our Business?” Harvard Business Review, December 2004. (*)
 Viagra – Wonder Drug or Ethical Irresponsibility?
 “Study Questions High-Cost Drugs for Hypertension,” Wall Street
Journal, December 18, 2002.
 “E-Mails Suggest Merck Knew Vioxx’s Dangers at Early Stage,” Wall
Street Journal, November 1, 2004.
 “Viagra: A Drug Ad Too Far?” Business Week Online, November 17, 2004.
(*)
 “Celebrex Drama May Finally Prompt Changes at the FDA,” Wall Street
Journal, December 20, 2004.
 The Collapse of Enron
 “Behind Wave of Corporate Fraud, A Change in How Auditors Work,” Wall
Street Journal, March 24, 2004.
b. Ethical Reasoning and Corporate Programs (2/7, 2/9)
 Constance E. Bagley, “The Ethical Leader’s Decision Tree,” Harvard
Business Review, February 2003. (@)
 Eric M. Pillmore, “How We’re Fixing Up Tyco,” Harvard Business Review,
December 2003. (@)
 “For Financial Whistle-Blowers, New Shield Is an Imperfect One,” Wall
Street Journal, October 4, 2004.
 PPG’s Corporate Ethics Program
4. BUSINESS AND GOVERNMENT IN A GLOBAL SOCIETY
a. The Challenges of Globalization (2/11, 2/14)
 “Globalization,” Fortune, November 26, 2001. (*)
 Joseph E. Stiglitz, “You Have to Walk the Talk,” Fortune, November 26,
2001.
 “The American Way,” Fortune, November 26, 2001. (*)
 Michael Yaziji, “Turning Gadflies into Allies,” Harvard Business Review,
February 2004. (@)
 Conflict Diamonds
 Shell Oil in Nigeria
 “Oil Giant Could Do Better in Nigeria,” Fortune, October 1, 2001.
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 “Flow of Oil Wealth Skirts Nigerian Village,” New York Times, December
22, 2002.
b. Business-Government Relations (2/16, 2/18)
 Ginger L. Graham, “The Leader as Lobbyist,” Harvard Business Review,
June 2001. (@)
 Protecting the U.S. Steel Industry
 Columbia/HCA and the Medicare Fraud Scandal
c. Influencing the Political Environment (2/21, 2/23)
 Doctors and Malpractice Insurance
d. Antitrust, Mergers, and Competition Policy (2/25, 2/28)
 Oracle’s Bid for PeopleSoft
 The Anti-Trust Case against Microsoft
 EXAM II (3/2)
5. THE CORPORATION AND THE NATURAL ENVIRONMENT
a. Ecology and Sustainable Development in Global Business (3/4, 3/14)
 “As Biotech Crops Multiply, Consumers Get Little Choice,” New York
Times, June 10, 2001.
 Chad Holliday, “Sustainable Growth, the DuPont Way,” Harvard Business
Review, September 2001. (@)
 “Tree Huggers, Soy Lovers, and Profits,” Fortune, June 9, 2003. (*)
 Damming the Yangtze River
b. Managing Environmental Issues (3/16, 3/18)
 Auden Schendler, “Where’s the Green in Green Business?” Harvard
Business Review, June 2002. (@)
 “How Green Is BP?” New York Times Magazine, December 8, 2002. (*)
 “Once Targeted by Protestors, Home Depot Plays Green Role,” Wall Street
Journal, August 6, 2004.
 Common Sense in Arizona
 The Transformation of Shell
6. BUSINESS AND TECHNOLOGICAL CHANGE
a. Technology: A Global Economic-Social Force (3/21, 3/23)
 The Dark Side of the Internet
b. Managing Technological Challenges (3/28, 3/30)
 File-Sharing Music: Legal? Ethical?
 EXAM III (4/1)
7. BUILDING RELATIONSHIPS WITH STAKEHOLDERS
a. Stockholder Rights and Corporate Governance (4/4, 4/6)
 “How to Fix Corporate Governance,” Business Week, May 6, 2002. (*)
 “Reining In the Imperial CEO,” New York Times, September 15, 2002.
 “A Boss for the Boss,” New York Times, December 14, 2003.
 “Democracy Looks for an Opening – In the Boardroom,” Wall Street
Journal, March 22, 2004.
 David A. Nadler, “Building Better Boards,” Harvard Business Review, May
2004. (@)
 Out of Control at Adelphia
b. Consumer Protection (4/8, 4/11)
 “Popularity of Breast Implants Rising,” Washington Post, September 22,
2002.
 “Despite Mad-Cow Warnings, Industry Resisted Safeguards,” New York
Times, December 28, 2003.
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 “Teenage Shooting Opens a Window On Safety Agency,” Wall Street
Journal, April 29, 2004.
 “For More Teenage Girls, Adult Plastic Surgery,” Washington Post,
October 26, 2004.
 “In Global Food-Trade Skirmish, Safety Is the Weapon of Choice,” Wall
Street Journal, December 15, 2004.
 Big Fat Liability
 “Taking the Cake,” Harvard Business Review, March 2004. (*)
 “Defensive Coke Backs Research That Asks: Is Sugar All Bad?” Wall
Street Journal, October 22, 2004.
 Odwalla, Inc., and the E. Coli Outbreak
 Dow Corning and the Silicone Breast Implant Controversy
c. The Community and the Corporation (4/13, 4/15)
 Michael E. Porter and Mark R. Kramer, “The Competitive Advantage of
Corporate Philanthropy,” Harvard Business Review, December 2002.
(@)
 “The Corporate Givers,” Business Week, November 29, 2004. (*)
 Timberland’s Path to Service
 The Tobacco Deal
 “The World Health Organization Takes on Big Tobacco (But Don’t Hold
Your Breath),” Fortune, September 17, 2001.
d. Employees and the Corporation (4/18, 4/20)
 “In limbo on a new hire,” HRMagazine, November 2001. (*)
 Case Study: “The Moonlighter,” Harvard Business Review, November
2002. (*)
 “Year of the Whistleblower,” Business Week, December 16, 2002. (*)
 “Persons of the Year,” Time, December 22, 2002. (*)
 “Gap Offers Unusual Look at Factory Conditions,” Wall Street Journal,
May 12, 2004.
 Elliot Schrage, “Supply and the Brand,” Harvard Business Review, June
2004. (@)
 “Civics and Civility,” Harvard Business Review, October 2004. (*)
 Smoking in the Workplace
 Nike’s Dispute with the University of Oregon
e. Managing a Diverse Workforce (4/22, 4/25)
 “When a Workplace Dispute Goes Very Public,” New York Times,
November 25, 2001.
 “The 10 Percent Solution,” New York Times, April 14, 2002.
 “A question of appearances,” HRMagazine, April 2002. (*)
 Case Study: “The Best of Intentions,” Harvard Business Review, July
2002. (*)
 “Why Diversity Is Good Business,” Business Week, January 17, 2003. (*)
 Coca-Cola Addresses Charges of Racial Discrimination
f. Business and the Media (4/27, 4/29)
 Case Study: “When No News Is Good News,” Harvard Business Review,
April 2001. (*)
 “S.U.V. Tire Defects Were Known in ’96 but Not Reported,” New York
Times, June 24, 2001.
 Two Different Public Relations Strategies – Bridgestone/Firestone and
Ford
 FINAL EXAM: Monday, May 2, 1100a-100p
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