You work for a construction firm that is submitting a bid for the construction of a new
company headquarters building for Smithco. A friend you have known since high
school works in Smithco’s capital budgeting area and has full knowledge of all the bids
from all firms. It would be unethical for your friend to share that information with you
before you submitted your bid.
An illegal act is an unethical act.
Warren Buffett bought FINOVA in bankruptcy.
Mark-to-market accounting gave corporate officers discretion in reporting earnings.
Voice mail messages on employee phones can be monitored by employers.
Moral relativism is circumstantial ethics.
BP had unaddressed safety violations at the time of the Texas City Refinery explosion.
The sale of a product with known, but undisclosed dangers, is unethical.
Richard Scrushy said, “Shine a light on someone ” it’s funny how numbers improve.”
How does this Scrushy philosophy compare with those of other CEOs in the cases you
have studied?
In November 2009, world-class golfer Tiger Woods crashed his escalade into a tree near
his Florida home. One of the windows in his Escalade had been smashed with a golf
club. Mr. Woods’ wife pulled him from the car and he was taken to the hospital, treated
for injuries, and released. A sordid tale emerged over the next few days of a pattern of
extra-marital affairs by Mr. Woods with a resulting separation from his wife and their
eventual divorce. Following these public disclosures, sports writers, golf pros, country
club staff members, and even CEOs of companies said that they were all aware of Mr.
Woods’ infidelity and that it was the best kept widely known secret among and between
those who were golf players and/or fans. One said, “We just had a pact of silence.”
When the news of Mr. Woods’ serial infidelity made international news, some of his
sponsors dropped him and others continued with him as a spokesperson. Are there any
ethical issues here? Who faces them? Discuss whether you would have gone along with
the pact.
A purchasing agent for a company could accept a Rolex from a supplier so long as there
is no bid pending.
Ethical egoism is selfishness.
In the “Parable of the Sadhu,” Bowen McCoy realizes that the times when he didn”t
reach the summit were more memorable than when he did.
With respect to #27, it would be unethical for you to hire your friend to get him to bring
the information to your company.
When there is a developing safety issue in the workplace, it is best for an employer to
just wait and see how much harm can result before taking precautions.
Some employee screening devices are not as valid as others.
Discuss the benefits for a company of not downsizing, as in the case of Aaron
Feuerstein and Malden Mills.