MBA 604
ETHICS
Fall, 2007
Instructor:
Office:
Telephone:
Paul C. Godfrey
789 TNRB
422-4522, Home 583-3188
WELCOME TO THIS CLASS!
Course Mission
The Wall Street Journal recently ranked BYU #2 in the nation for producing ethical MBA graduates.
I believe this ranking has as much (or more) to do with the caliber of people that enter our program
as with the training we provide them while they are here. What, then, is the purpose for our ethics
curriculum (aside from the not-so-critical goal of striving to get to #1 in WSJ)? One challenge in our
world is to make ethical people more potent forces for good in their organizations. My objective is
to help students exercise virtuous, constructive influence. I believe that BYU can make
organizations more ethical through you.
Reasoning and thinking about ethics is a valuable exercise, even for people who bring to the
exercise well-solidified ethical values and a code of conduct. Ethical issues are unique in their
level of complexity, ambiguity, and uncertainty. The study of ethical issues helps business
professionals strengthen their skills in both problem analysis (identification and solution generation)
and business reasoning and judgment (decision criteria and solution implementation).
Course Objectives
The mission of the course translates into the following specific objectives, consistent with the
Marriot School’s recently defined learning objectives. This course weaves in several of these
objectives in class content and cases, learning and evaluation projects, and through our
interactions with each other in and outside of the classroom. These objectives are:
1. Learning to work in groups and be part of an effective team—the group case assignment,
session-specific group assignments, and in-class exercises and discussion should all help
you improve your ability to perform in a group setting.
2. Being able to communicate effectively, both orally and in writing—class discussions, role
plays, and mini-presentations are designed to help you practice communicating clearly
about difficult, complex, and emotionally charged ethical issues in business. The Analysts
Dilemma assignment, the Group Case Project provides you with an opportunity to write
clearly, coherently, and compellingly about ethical challenges.
3. Develop a sense of ethical values that translate into the business community—This is the
core content of the course and we will focus on three concrete objectives. Our vision at the
Marriott School is that ethical organization and business behavior depends on an
individual’s ability to master personal, professional, and managerial ethical tasks. We will
focus our activities on the following areas:
A. Personal ethical understanding—while all of you come to our program mature and with
an existing set of ethical values, we will use several case studies, readings, and
discussions that invite to think deeply about what some of these tried and true values
(such as honesty, hard work, service, etc.) mean in various contexts.
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B. Application of ethics to business situations—most of our in-class and out-of-class
activities focus on this objective. Given that you have a clear set of moral values, the
question is how do our values play out in a business context? While many of us rely
on LDS teachings as our ethical foundation, learning to apply those values in a
business context is important, as President James E. Faust has taught: “It is the
responsibility of the prophets of God to teach the word of God, not to spell out every jot
and tittle of human conduct.” (Ensign, Nov 2003 “The Devil’s Throat”). Part of working
out our salvation entails learning through our own experiences to make wise choices.
While we can rely on the Holy Ghost for guidance, the scriptures are clear that such
inspiration, in many important cases, must be accompanied by our own work and effort
in preparation, meditation, and pondering (see D&C 9: 7-9 as one example). Each of
our discussions, cases, and assignments give you the opportunity to apply your ethical
values to business situations and to prepare for situations you are likely to face.
C. Ethical leadership—in a business context ethical leadership means not only doing what
is right, or arguing forcefully for an ethical course of action, but also designing and
structuring organizations and business transactions with a predisposition towards
ethical behavior. To paraphrase Thomas Aquinas, the ethical organization is one
where it is easy to be ethical and difficult to be unethical. We will consider a number of
concepts and models, and examine a number of cases where you can see how design
and administrative choices create an ethical climate for others, positive or negative.
4. Being able to participate actively and comfortably in a global environment—We use cases
(Purple Toenails, Becton-Dickinson) that take place in international settings. Other
readings and discussions will involve consideration of how ethical values are influenced by
cultural norms and traditions; you will be asked to confront the limitations of Wasatch Front
and U.S. centric thinking as you consider how managers should act in international
settings.
Course Format
The course uses case studies, books, short readings, and ample amounts of discussion to help you
develop skills in Identifying the moral dimension of business activity, Clarifying relationships
between the key business and moral elements, and Specifying a course of action to deal with the
issue. The course requires that you apply these skills in both in-class and out-of-class settings.
I assume you are motivated and that you bring to the learning community valuable knowledge,
experience, and expectations. I also assume you have a desire to relate what we do in class to
your own career, and so I encourage direct and specific questions you may have about how the
topics of the course relate to your career or specialty. I expect that you will come to each class
session on-time, prepared, and ready to participate. My role as the instructor is much more to
serve as an expert guide rather than a dispenser of information, although I will communicate how I
view and have resolved issues in my own career. I have worked to construct a meaningful,
challenging, and thought-provoking set of readings, cases, and exercises designed to facilitate our
joint learning. For the duration of the course, the burden of learning now shifts to you—you will get
out of this course as much as you put into it.
Because of the unique nature and mission of Brigham Young University, this course will attempt to
follow the mandates given by Brigham Young to “teach by the Spirit of God” and Spencer W.
Kimball to “bathe our teaching in the light and color of the Restored Gospel”. This too is a joint
responsibility, we must all work together to create an atmosphere where the Holy Ghost can be
present and be an active force to facilitate teaching, learning, and edification (c.f., D&C 50: 14-22).
We must all be willing to contribute to the class, to value the diversity in our opinions and views,
and to live lives of righteousness and integrity.
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Grades and Evaluation Criteria
Students in this class have two grading options in this course. Option 1 requires that you complete
all projects and assignments for the course. Option 2 allows you to forego the Reflective Essay
assignment. While Option 2 entails less thought and work, it also provides less of a reward.
Students choosing Option 2 can, at best, earn a B+ in the course. You do not need to declare an
option in advance; however, your final choice will be revealed on the due date of the Reflective
Essay.
Grades for the course will be based on the following:
Class Participation
Analysts Dilemma Assignment
Group Case Project
Reflective Essay
25 %
15 %
40 %
20 %
I reserve the right to adjust your grade one full mark (e.g., from an A- to a B+) up or down based on
my overall assessment of your performance in the course. If you choose Option 2 the highest
possible grade is a B+.
CLASS PARTICIPATION is the backbone of the course; if you don’t contribute there will be no
learning. As such, you need to attend each session and be committed to the work of the course.
Participation grades are based on: Assessed level of preparation and analysis as evidenced in
discussions; logical rigor and evidentiary support of positions; new insights that appear in your
contributions; engaging others constructively and courteously. I reserve the right to test the
assumptions and foundations of the positions you take in class to help you understand the nature
and depth of your commitment to certain virtues. The quantity of your contribution is less important
than its quality.
There will be at least two QUIZZES during the semester, one covering Victor Frankyl’s book Man’s
Search for Meaning and the other on the Papal Encyclical Centesimus Annus. The quizzes
presume that you have read the material carefully and thoughtfully, and the quizzes will cover both
the content and some of the potential implications of the work you are assigned. The lowest of the
quiz scores will be dropped in the grading process, and the remaining score(s) will be factored in to
your class participation grade.
The ANALYSTS DILEMMA ASSIGNMENT (Due 13 September, beginning of class) invites you
to resolve a moral dilemma and outline the moral reasoning you used to resolve the issue. The
case for the day involves a situation where the horns of the analyst’s dilemma involve a friend and
the needs of her firm. You must make a decision about how to act. You need to outline your
decision in the case (did you choose her or your firm), and outline the reasoning and motivation for
your choices. The assignment may be written as a traditional essay or as a letter to your friend
Lori. You should pay attention that you identify the nature of the moral dilemma, the core virtues in
play, and the choices those virtues imply. Be sure to clarify the consequences of your actions for
you, for Lori, and others; be sure to articulate the priority of different consequences in this case.
Pay special attention to explaining the reasoning that underlies your choice.
The GROUP CASE ASSIGNMENT requires your team to write a case about an ethical challenge.
Many ethics cases (including some we will discuss this semester) focus on dramatic, strategic,
macro-level decisions. While interesting, most of these cases may not represent well the dilemmas
you will encounter in the early years of your career. This assignment is designed to immerse you in
the details of an actual ethical dilemma that you could conceivably face within the next several
years. Working as a team, you will identify, research, analyze, and write up a real-life ethics case
involving decisions or dilemmas that confront entry- or mid-level managers. The steps of this
project are as follows:
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
Identify: using your team’s network of contacts (professional, family, etc.), find a few
examples of ethical challenges or dilemmas that people have encountered in a
professional setting during their early- to mid-careers. They need not be dramatic, but
should represent challenges that caused the decision-maker considerable reflection.
You may find that you have to probe deeply and give your contact time to think in order
to elicit good case examples. From these examples, select the one that you would like
to focus on. Selection considerations should include: complexity of the problem (more
complex is better), opportunities for new learning, your team’s interest in the problem,
and potential interest of classmates in the problem. On 11 September your team
needs to turn in a 1 page (single spaced) memorandum that identifies for me the
general outlines of the case you will write up: the subject or issue in play, the relevance
and importance of the issue for team members, where data can and will be gathered,
and a team plan of action (who will do what when, and how).

Research: as a team, familiarize yourself thoroughly with the particular dilemma you
have selected. Attempt to interview (where possible) several people who were involved
in the dilemma. You may want to interview others in your network who have faced
similar problems or challenges for additional insight and suggestions. Locate any
background information or literature that can shed light on the chronology of events,
the legal and organizational context, the relevant stakeholders, and the considerations
the decision-maker(s) employed. I recognize that in many cases, much of this
information may be inaccessible to you. Be creative in your fact-finding.

Write-up: crystallize your learning into a brief (1-2 pages single-spaced – no more
than 2!) case write-up that clearly describes the dilemma or decision you have
researched and provides enough information and detail to give future students a firm
grasp on the issues at stake. Alter all identifying information to strictly protect the
confidentiality of the actors or organizations in the case. Strive to develop a “teaching
case”; avoid providing solutions and conclusions. Rather, write your case to be
engaging to future students and to invite a variety of perspectives and opinions. If you
feel that literary license (i.e., fictionalizing elements of the case) is necessary to protect
confidentiality or to enhance the opportunity for readers to learn from the case, please
let me know the nature of your alterations before you submit the case. The write up is
due 23 October at 5 p.m.

Analyze: In a separate document (3-5 pages single-spaced), develop a careful
analysis of the case. The analysis should include at least the following:
 An application of concepts from class readings or lectures to the case
 AND/OR an application of ethics concepts/frameworks you have encountered in
your independent reading
 A report on your “consultation with sages” – in other words, the insights you gained
from discussing your written case with at least three experienced people whose
wisdom you respect
 At least two different moral perspectives that conflict in the case (i.e., sound
arguments for at least two different courses of action)
 Your ultimate recommendation as to what the actor(s) should do, including your
supporting logic for why it is the best course of action
These elements of your analysis need not represent separate sections in the write-up. In fact, there
will likely be considerable overlap among these elements. Although I won’t necessarily expect you
to use these bullets as an organizing logic for the analysis, I would like each of these elements to
be represented. The analysis is due 23 October at 5 p.m.
As a part of the group project you will be asked to assess the contribution and effort level of your
fellow group members. These peer evaluations are designed to detect both excellent and poor
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contributions on the part of group members; they include both a qualitative and quantitative
ranking. Differences in group peer evaluation scores may lead to different individual grades for the
group project.
The REFLECTIVE ESSAY (Due 26 October, 3:00 p.m.) gives you an opportunity to use writing to
create linkages between important ethical thinking and your own life and career. This is an
individual essay, between 7-10 double-spaced pages, where you reflect on your experiences in the
course and make applications to your own life and career. The exact things you choose to write
about are up to you; however, here are some helps to guide your thinking.
One meaning of reflect is “to think back.” What have you learned so far that has changed you?
What have you learned that has stimulated your thinking? What assumptions did you have going
into the course, about ethical behavior, or the nature of work organizations and moral conduct?
Have these assumptions been violated or upheld? How are you different because you have been
exposed to these materials? How are you different because you have been exposed to these
materials NOW? Another meaning of reflect is “to look forward.” I would like you to consider, and
write about what you will do differently based on some of the things you have read, discussed, and
thought about? How will your professional life be different? How will your personal life be different?
Required Texts and Presentations
Course readings packet.
Victor Frankl, Man’s Search for Meaning
There are several PowerPoint presentations used in class. These may be accessed at
http://marriottschool.byu.edu/teachDir/studentdir.cfm?direc=/mba604.
Disclaimers and Course Policies
There are several Marriott School course policies you should be aware of; these can be
found at http://marriottschool.byu.edu/classroompolicies/.
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PREPARATION QUESTIONS FOR INDIVIDUAL SESSIONS
Session 1: Introduction
1. For the overwhelmed ethics student, which “business judgments” precipitated the ethical
crisis?
2. Why didn’t the student’s strong ethical/religious values preclude unethical behavior?
Session 2: Rights, Duties, and Utilitarianism
1. How can people decide what the right, or ethical, thing to do is for a given situation?
Session 3: The Analysts Dilemma
The case for the day involves a situation where the horns of the analyst’s dilemma involve a
friend and the needs of her firm. You must make a decision about how to act. You need to
outline your decision in the case (did you choose her or your firm), and outline the reasoning
and motivation for your choices. The assignment may be written as a traditional essay or as a
letter to your friend Lori. You should pay attention that you identify the nature of the moral
dilemma, the core virtues in play, and the choices those virtues imply. Be sure to clarify the
consequences of your actions for you, for Lori, and others; be sure to articulate the priority of
different consequences in this case. Pay special attention to explaining the reasoning that
underlies your choice.
Session 4: Virtue Ethics
Character, or virtue ethics, originated with the classical ethicist Aristotle, and held favor through
much of the medieval period. Virtue ethics fell out of favor during the enlightenment due to the
focus on universalism and rationality. The postmodern period has been especially critical of
virtue ethics and its politically incorrect position that individual behavior and choice matters.
Recently, however, virtue ethics has enjoyed somewhat of a revival. We will consider the
original version of virtue ethics outlined by Aristotle, and there will be some in-class work for
your group to do on this topic. To prepare for this session please think about
2. What is the difference between a value and a virtue?
3. Which virtues define a person of good character?
Session 5: Meaning and Purpose (I)
Victor Frankl was born 26 March 1905 in Vienna Austria. After receiving his Medical Degree in
1930, Frankl began his career as a psychiatrist. He founded the “third Viennese school of
psychology”—Logotherapy, inspired largely by his life in the concentration camps. He survived
4 Nazi concentration camps, including Auschwitz. During his life he authored 32 books and
lectured at 209 universities on all five continents. Man’s Search for Meaning was voted as one
of the 10 most influential books in America today in a survey by the Library of Congress. The
book is now in its 73rd printing with over 9 Million copies sold worldwide.
Victor Frankl’s little book provides a powerful discourse on what it means to be virtuous under
the most extreme conditions of suffering, depravation, and inhumanity. Frankl’s account of his
life in a concentration camp is a gripping story in its own right, and a powerful essay on the
nature of virtue and the purpose of suffering. As you read the book, please consider the
following questions:
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1. What, for Frankl, constitutes a virtuous life?
2. How does the horror of a concentration camp resemble (and not resemble) competitive,
for-profit businesses?
There will be an in-class quiz on the Frankl reading
Session 6: Meaning and Purpose (II)
As you prepare for this session, take time, thoughtfully consider, and write down your answers
to the following questions. You will be asked in class to share these answers with members of
your group.
1. How does the dilemma of “survival vs. sacrifice” play out in the business world? What
does each term mean in a business context?
2. When does survival become the prime moral directive? When is it OK to solely look out for
yourself and when should you solely look out for others?
3. What answers do you think Frankl would suggest?
4. What insights does the Shema Yisrael provide on this issue?
Session 7: Creating an ethical culture
As managers and leaders in organizations it is important that you understand how
organizational practices and tools can be used to design systems that encourage good
behavior and punish bad behavior. During this session we will look at how some leading
companies, such as Merck, Boeing, and Intel create a climate for ethical behavior. The
reading by Anand, Ashforth and Joshi provides a cautionary tale for such efforts as they focus
on some latent social dynamics that work against formal efforts to create an ethical
organization. As you read the article consider the following questions:
1. Where have you seen and experienced rationalization tactics used by others to justify a
decision? Which of these tactics have you used yourself (I know this is uncomfortable but
if you look deeply you will see at least one of these that you have used) to justify a course
of action you were conflicted about?
2. Which socialization processes do you think are most common? What are the upsides of
these processes that encourage their use in some settings? Can you have the good
without the bad in these processes?
3. What are your overall key takeaways from this reading?
Session 8: Creating an ethical culture
Bausch & Lomb is a stellar corporate performer; however, as the case unfolds we see the
intense pressure on the organization to continue to perform. The pressure to perform has
some interesting consequences, and the case invites you to consider the ethical impact of
competitive pressure, and what executives and moral leaders can do to ameliorate some of
these pressures.
The case provides several business situations, some of which may be standard practice,
others very aggressive business practice, some clearly unethical, and some illegal. As you
read through the case, think about which situations you would categorize in each way. Also
think deeply about the following:
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1. When does a business practice cross the line from aggressive to unethical?
2. What is the basis for that judgment on your part?
4. What behaviors did Daniel Gill engage in that made it “easy to be bad” at Bausch and
Lomb?
5. How would you respond to Daniel Gill if you were the manager of the CLD and thought that
your business practices had crossed the line?
Session 9: Global Ethical Challenges
As businesses move operations oversees, or as they compete in global markets, they face
certain choices about acceptable business practices in the countries where they operate. At
the strategic level firms face one of three choices: They can choose to do business according
to the legal and ethical standards operating in the host country; they can choose to do
business according to the legal and ethical standards operating in the home country; or, they
can choose to do business according to legal and ethical standards as defined by global
bodies such as the United Nations.
Whichever choice made by top management, middle managers at work in the country face
challenges in implementing those decisions. The Purple Toenails case concerns the business
and ethical challenges facing Rose Chaser, a young and aspiring manager for BatterBest, a
global battery maker. As you read the case think about the following questions:
1. If you were a shareholder, how comfortable would you be with BatterBest’s investments in
Belostan?
2. What are Roses options in this situation? What ramifications does each option carry?
3. What criteria should Rose use to evaluate her options?
Session 10: International ethical issues and challenges
1. What pressures exist for Becton Dickinson employees to engage in unethical business
practices?
2. For a global corporation, what is the definition of an ethical business practice?
3. Should the company rely on United States law and custom? Should the company utilize
International standards (such as the Sullivan Principles)? Or, should the local laws and
customs of each market govern “what is right?”
Session 11: Corporate Social Responsibility
Corporate Social Responsibility has been defined as “actions that are not required by law but
that appear to further some social good, and extend beyond the explicit transactional interests
of the firm.” People on both sides of the debate agree that all business firms have an
obligation to obey the law and abide by the ethical customs in those countries where they do
business. Corporate Social Responsibility (or CSR) refers to discretionary activities that
businesses may engage in, but absent an economic, legal, or moral obligation.
Proponents of “socially responsible” business practices argue that businesses exist at the
pleasure of the state, and so have citizenship obligations to the state that may extend beyond
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profit making activities; firms could legitimately be asked to contribute to the solution of larger
social problems. Proponents also argue that businesses have resources, skills, and
knowledge that can effectively be brought to bear on many social problems.
Critics of “socially responsible” business practices argue that these practices are immoral. The
argument rests on the assumption that the managers of a firm are morally obligated to manage
the firm according to shareholder interests, which in most cases means making as much profit
as possible Critics also note that when businesses focus solely on profits, they make a
powerful positive contribution to society by creating jobs, tax revenues, and valuable products
and services.
As you prepare for this lecture, consider and evaluate your thinking about corporate social
responsibility. Consider the following question:
1. Why should rational, profit maximizing managers engage in socially responsible business
practices?
Session 12: Christianity and Business
Karol Jozef Wojtyla was born 18 May 1920 in Wadowice, Poland. During World War II, he
worked in a quarry and a chemical plant to earn a living and avoid deportation to Germany. In
1942, responding to a call to the priesthood he began clandestine studies near Cracow. He
was ordained to the priesthood on 1 November 1946. He obtained a doctorate in theology in
1948. In 1964 he was appointed Archbishop of Cracow, and made a Cardinal on 26 June
1967. He participated in the Vatican Council II. He assumed the name John Paul II upon his
election to the Papacy on 16 October, 1978. John Paul II was characterized as a defender of
orthodoxy within the Roman Catholic Church and is considered by many to be one of the finer
Popes the Church has had.
Published in 1991 under the title “On the Hundredth Anniversary of Rerum Novarum,” this
Papal encyclical outlines the Church’s position on economics, Capitalism, Marxism, and the
role of business in building a Christian social order. The Pope writes of the significant events
of 1989 (the fall of the Berlin Wall and the symbolic fall of communism throughout Eastern
Europe and the Soviet Union), and reinterprets Pope Leo XII’s teachings on the nature of
capitalism and the rights and obligations of workers, managers, and business owners in
building a just and equitable society.
The book provides a compelling and thoughtful argument for the freedoms and limits that
should be placed on businesses and capitalist economies in general. While no fan of Marxism
and its formal atheism, Pope John Paul’s work also contains clear warnings for Capitalists. As
you read this work, consider the following questions:
1. How are capitalism and communism similar? What risks does each system pose for
followers of Christ?
2. What are the theological underpinnings of capitalism?
3. What virtues does a career in business develop?
4. Where do markets fail in building a good society? How can Christians, as individuals and
professionals, survive and thrive in a capitalist system?
There will be an in-class quiz on the Papal Encyclical.
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Course Schedule and Readings
Date
04 Sep
Session
1
06 Sep
Topic
Packet Materials/ Assignments
Introduction
The Case of the Overwhelmed Ethics Student
Group Preparation—project or case
11 Sep
2
Ethical Theories—Rights and Utilitarianism
Case Project Identification Memo Due, beginning of
class
13 Sep
3
Conflict of interest
The Analysts Dilemma (HBS 9-394-056)
Analysts letter due, beginning of Class
18 Sep
4
Ethical Theory—Virtue ethics
20 Sep
5
Meaning and Purpose
Frankl, Man’s Search for Meaning
25 Sep
6
Meaning and Purpose
Frankl, Man’s Search for Meaning
27 Sep
Case/ project work day
02 Oct
7
Creating an ethical culture—basics
Anand, Ashforth, and Joshi, Business as Usual (AME)
04 Oct
8
Creating an ethical culture—application
Bausch and Lomb (HBS 9-198-009)
09 Oct
9
Managing Globally
Purple Toenails
11 Oct
10
Managing Globally
Becton-Dickinson (HBS 399-055)
Global Sullivan Principles
16 Oct
Case Preparation Day
18 Oct
11
Corporate Social Responsibility
In class exercises and lecture
23 Oct
12
Christianity & Business/ LDS Theology & Business
Centesimus Annus (available at http://www.vatican.va),
read chapters 2-4
Group Cases due 5 p.m.
Personal Reflective Essay due 3 p.m.
26 Oct
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