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Chapter 04 - Demanding Ethical and Socially Responsible Behavior
4-60
lecture enhancer 4-9
KEEPING THE NFL GREEN IN SUSTAINABLE STADIUMS
Although the intensity of the gridiron will undoubtedly remain the same every year, but some
fans might notice big changes around their local stadiums. That’s because after years of outcry to green
up the game, a number of NFL teams have revamped their arenas with a variety of energy-saving and
cost-cutting measures.
In San Francisco’s Levi’s Stadium, for instance, an 18,000-square-foot canopy of greenery and
flowers has been planted as a “living roof” above an eight-story tower of luxury seats. The garden pro-
vides natural insulation and helps cut down on energy use for the building as a whole. The $1.2 billion
49ers stadium is also home to a field of drought proof grass as well as hundreds of solar panels scattered
across the structure. These improvements allow the San Francisco arena to offset its energy consumption
even during the most crowded games.
Meanwhile, administrators for the Philadelphia Eagles have packed the city’s Lincoln Financial
Field with 11,000 solar panels and 14 wind turbines. The team was the first to go green in a big way, and
now it’s one of ten NFL franchises to have implemented a sustainability program. So far, all environmen-
tal action has come from the teams and their owners rather than the NFL itself. Besides providing infor-
mation about the benefits of going green, the league doesn’t feel it has the authority to mandate any
sweeping changes to a collection of independent owners. However, an inter-sports organization called the
Green Sports Alliance has led the charge for change through a coalition of owners led by the Seattle Sea-
hawks’ Paul Allen. Comprised of nearly two-thirds of all Major League Baseball teams, half the NHL and
half the NFL, the alliance advocates going green to save money as well as the planet. As more teams join
the alliance, the consensus might drive the NFL and other leagues to make sustainability the standard at
stadiums across the countrys.vii
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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critical
thinking exercises
Name: ___________________________
Date: ___________________________
critical thinking exercise 4-1
EXPLORING COMMUNITY SERVICE
One of the most common reasons people give for not contributing more of their time to their
community is that they don’t know where to go to volunteer. You can find out about volunteer options in
your zip code by visiting these Internet sites—www.volunteermatch.org, www.1-800-volunteer.org, or
www.networkforgood.org.viii
(Sometimes the Web address for a location changes. You might need to
search to find the exact location mentioned.)
1. Go to one of these volunteer websites. Use the site’s search tools to see what types of volunteer
options are available in your area. If your area is not yet included in the site’s database, choose a
nearby zip code so that you have an idea of what types of agencies you can contact to offer your
services. Write down several volunteer opportunities and the skills required.
2. A new trend in community service is virtual volunteering. Click on the virtual link and search for
volunteer opportunities you can do from your computer. Are virtual volunteer opportunities more
or less attractive to you than actual hands-on activities? Why?
3. The best way to learn about volunteering is by volunteering, so put your community service plan
into action by offering your services to one of the agencies in your area.
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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Name: ___________________________
Date: ___________________________
critical thinking exercise 4-2
ETHICAL DILEMMAS
Below are several situations that present ethical questions in a business. Discuss each situation
(a) from the strictly legal viewpoint, (b) from a moral and ethical viewpoint, and (c) from the point of
view of what is best in the long run for the company. Be sure to consider both short- and long-range con-
sequences. Also look at each situation from the perspective of all groups concerned: customers, stock-
holders, employees, government, and community.
1. A disgruntled employee of your major competitor mails top-secret information or new product
samples to you. Do you begin to do a dance on your desktop or do you immediately mail the in-
formation back to your competitor? What would you do?
a. Throw the plans or secrets away.
b. Send them to your research department for analysis.
c. Notify your competitor about what is going on.
d. Call the FBI.
2. You are the general manager of a regional chemical company. In the course of producing your
bulk chemicals, large amounts of particles and smoke are emitted through your plant’s smoke-
stack. The level of pollutants is below current EPA regulations, and you are violating no laws, but
neighborhood groups are complaining about minor health problems caused by the smoke. After
investigating numerous alternatives, you find the most effective solution would be to install a
“scrubber” system, which will remove 90% of the pollutants and ash. Cost: $1 million. Do you
install the system?
3. You are a general manager in a cosmetics firm. The results of a study show that your major brand
could cause skin cancer. What do you do?
4. You have the opportunity to offer a job to a friend who really needs it. Although you believe that
the friend could perform adequately, there are more qualified applicants. What would you do?
5. You are the vice president of a beer company in a state that sets the legal drinking age at 21. Your
boss asks you to organize a lobbying effort to have the drinking age reduced to 18. What would
you do?
6. Because of a loophole in federal laws you find that you could legally pay your workers less than
the minimum wage. The cost savings you recommend may mean your getting a choice promo-
tion. What would you do?
7. You are an accountant in a large firm. Your boss tells you to use a controversial accounting prac-
tice, which will make the company’s profits seem higher. She tells you it is only to impress
stockholders and will not be used in statements submitted to the IRS. What would you do?
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critical thinking exercise 4-2 (continued)
8. You are required to fire a worker for persistent absenteeism, but you know that her absence is be-
cause she is caring for her father who is in the advanced stage of Alzheimer’s disease. You feel
that the organization is being inhumane in its attitude, but your boss remains insistent. What
would you do?
9. A worker is repeatedly late for work. You know she has family problems and is going through a
difficult period with an alcoholic husband. Her work is inconsistent—sometimes average, often
excellent. She has been with the company for nine years. On Monday she was two hours late for
work. What would you do?
10. You believe that your (male) boss is overly friendly with a (female) member of your staff and that
she is taking advantage of the situation. What would you do?
notes for critical thinking exercise 4-2
Each of these situations may have several possible solutions. The best solution from the compa-
ny’s point of view may be quite different from one’s own philosophical point of view. Below are some
discussion points.
1. This actual situation is at the heart of a dispute between rivals 3M Corporation and Johnson &
Johnson. It seems a 3M employee named Philip Stegora mailed samples he stole of a new casting
tape to J&J and three other competitors. He offered to meet and explain the technology for a fee
of $20,000.
Here’s what happened in the 3M and J&J case: None of the contacted companies reported his
scheme to 3M. Instead, an outside source contacted 3M, who then turned the case over to the FBI.
The case could have ended there, but in patent-infringement proceedings, 3M found that J&J had
done chemical tests on the sample Stegora had sent. 3M sued and was awarded $116.3 million
from J&J for infringing on its patent and misappropriating trade secrets. Sounds like someone
should have sent the tape back to J&J in the first place.
2. In considering whether to install the scrubber, both the short- and long-term consequences should
be addressed. While the level of pollution is legal today, is it likely to be regulated tomorrow?
What would be the public relations impact for the company if it installed the system? If it did not?
Should the company publicize the scrubber installation or avoid discussing pollution at all?
3. The key word in this question is could. The evidence is inconclusive. How would the company be
affected if the product were pulled prematurely? How would it be affected if the product causes
dozens of cancers and results in huge lawsuits?
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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4. This is a gray area. Hiring a friend may smack of favoritism. However, with a friend you already
know about his or her background, reputation, experience, and work ethic. The friend may be the
best one for the job if you value his or her abilities. The downside is that you may have to fire
your friend, losing an employee and a friendship.
5. Eighteen- to 21-year-olds represent a huge market for liquor. But, again, the public reaction
should be considered.
6. Many smaller companies are exempt from minimum wage laws but still pay the prevailing wage.
The supply and demand for workers is a more important price factor. A company that pays less
than minimum wage will not be able to attract as many qualified workers as one that does.
7. This is the only black and white dilemma. To use dual accounting practices to deceive investors is
illegal.
8. This is a direct order from your superior. You might take a meeting with the supervisor to explain
the extenuating circumstances, but if there’s no change in his or her position, you will have to fire
the employee or be ready to leave your job.
9. This worker is going through a difficult time. Her work is, however, “often excellent.” The costs
of training a replacement worker must be weighed against her possibly temporary reduction in
productivity.
10. Your boss is guilty of sexual harassment. The female member of your staff may be taking ad-
vantage of it, but that does not change the reality. The boss’s actions may open up your company
to a sexual harassment suit. Fighting it will be costly and generate bad publicity. The boss needs
to be warned, although you might not be the one to do it. If you have a mentor in the firm or a
sympathetic friend in upper management, you might approach him or her, confidentially, about
the situation. If you decide to talk to the boss yourself, how would you handle the encounter?
What could your first sentence possibly be?
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Name: ___________________________
Date: ___________________________
critical thinking exercise 4-3
RESEARCHING CODES OF ETHICS
Most companies now publish codes of ethics to provide ethical guidelines for employees. Many
of the larger companies publish these codes on their websites, but they may be hard to find.
The Center for the Study of Ethics in the Professions (CSEP) has collected over 850 codes of eth-
ics and put them on its website (http://ethics.iit.edu/research/codes-ethics-collection). (Sometimes the
Web address for a location changes. You might need to search to find the exact location mentioned.) The
collection includes codes of ethics for professional societies, corporations, government, and academic
institutions. Earlier versions of codes of ethics of some organizations are available so you can study the
development of codes.
(Some of the more interesting codes of ethics that CSEP has collected are the codes of ethics for
the CIA and for Enron.)
1. Locate the codes of ethics for an educational institution, a media organization, and a business or-
ganization. What do the three codes have in common? In what ways do they differ?
2. Find a company for which a previous code is available (such as IBM). Review the key sections.
How has the code changed?
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Name: ___________________________
Date: ___________________________
critical thinking exercise 4-4
SOCIAL RESPONSIBILITY SUCCESSES AND FAILURES
Name at least one example of a company that succeeded or failed to be socially responsible in
each of the categories below. Describe the success or failure. Record the exact URL of the site you visit.
CATEGORY
SUCCESS
FAILURE
Corporate Philanthropy
Company:
URL:
Description:
Company:
URL:
Description:
Employee Health and
Safety
Company:
URL:
Description:
Company:
URL:
Description:
Environmental
Stewardship
Company:
URL:
Description:
Company:
URL:
Description:
Minority and Women’s
Employment and
Advancement
Company:
URL:
Description:
Company:
URL:
Description:
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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Name: ___________________________
Date: ___________________________
critical thinking exercise 4-5
SURVEYING PUBLIC INTEREST ORGANIZATIONS
Newspapers and the Internet are full of stories about individuals and organizations that are not
socially responsible. What about those individuals and organizations that do take social responsibility se-
riously? We don’t read about them as often. Do a little investigative reporting of your own. List two of
the public interest power groups in your community and identify their officers, their objectives, their
sources, and the amount of financial support they receive, the size and characteristics of their member-
ship, and examples of their recent actions and/or accomplishments.
1. ORGANIZATION Sources of Funds Annual Budget
______________________ ___________________ ____________________
Officers
______________________________________________________________________
______________________________________________________________________
Size and Characteristics of Membership ______________________________________
______________________________________________________________________
Objectives
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Recent Actions and/or Accomplishments _____________________________________
______________________________________________________________________
______________________________________________________________________
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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2. ORGANIZATION Sources of Funds Annual Budget
______________________ ___________________ ____________________
Officers
______________________________________________________________________
______________________________________________________________________
Size and Characteristics of Membership ______________________________________
______________________________________________________________________
Objectives
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Recent Actions and/or Accomplishments _____________________________________
______________________________________________________________________
______________________________________________________________________
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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notes on critical thinking exercise 4-5
Students can research these organizations on the Internet or call the local Chamber of Commerce
or Better Business Bureau for help. Also, they can call local government agencies or visit government
websites and see what private firms are operating in your area that have the public interest in mind. For
example, there are likely to be environmental groups, animal protection groups, and political action com-
mittees.
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bonus
case
bonus case 4-1
CORPORATIONS FILL FOREIGN AID VOID
In the mid-20th century, many struggling nations around the world relied heavily on outside gov-
ernments for assistance. Foreign aid of this nature accounted for 71 percent of all worldwide capital flows
as recently as 1960. As the years progressed, however, governments largely removed themselves from the
global development game. Today, foreign aid accounts for less than 1 percent of the U.S. budget and only
9 percent of current capital flows.
To fill this void, non-governmental organizations and groups such as the Bill and Melinda Gates
Foundation have stepped up their efforts to improve the developing world. But charities like these aren’t
the only ones looking to lend a hand. Increasingly, multinational corporations are coming up with their
own large-scale foreign aid plans. For instance, three years ago Coca-Cola launched its 5by20 initiative,
pledging to teach business skills to 5 million poor women by 2020. Since then, the soft drink giant has
helped more than 500,000 women in 44 countries start their own small businesses. These include conven-
ience store owners in the Philippines, mango farmers in Kenya, and impoverished Mexican villagers with
bottle recycling operations.
It’s no coincidence that Coca-Cola has established presences in these seemingly far-flung places.
The 5by20 program specifically assists those who have a stake in the company’s global value chain. This
includes fruit growers, recyclers, and even women who repurpose Coca-Cola merchandise to make their
own crafts. By training and financing these people, the company earns a ton of brand loyalty while also
enjoying positive PR for their philanthropy. Most corporations require this sort of win-win scenario be-
fore getting involved in foreign aid, but companies must be careful not to seem like they’re solely con-
cerned about their own gain. Approximately 10 percent of all global U.S. firms have serious charitable
initiatives that help themselves as much as the poor. In Coca-Cola’s case, the company must ensure that
the life-changing effects that the 5by20 program can have on participants outweigh the fringe benefits the
brand receives.ix
discussion questions for bonus case 4-1
1. Why did Coca Cola become actively involved in global development issues?
2. How does Adam Smith’s “invisible hand” fit with multinational firms efforts?
Chapter 04 - Demanding Ethical and Socially Responsible Behavior
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notes on discussion questions for bonus case 4-1
1. Why did Coca Cola become actively involved in global development issues?
Coca Cola sees a win-win situation by involving itself in global assistance issues in the develop-
2. How does Adam Smith’s “invisible hand” fit with multinational firms efforts?
Adam Smith’s invisible hand theory notes, businesspeople do not go into business intending to
help others. Instead, they focus on selfish interests. However, with business success, like an invis-
.
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endnotes
i Source: Charles B. Wilbanks, “Ex-Enron CEO Jeff Skilling to Leave Prison Early,” CBS MoneyWatch, June 21,
2013.
ii Sources: Calum MacLeod, “China, New Superpower, Tries to Master Environment,” USA Today, August 10,
2010; Dexter Roberts, “Bribery Is Losing Its Charm in China,” Bloomberg Businessweek, July 8, 2010.
iii Source: Joe Klein, “Can Service Save Us?” Time, July 1, 2013.
iv Source: Alina Dizik, “Social Concerns Gain New Urgency,” The Wall Street Journal, March 4, 2010.
v Source: Matthew Harper and Rebecca Ruiz, “Snake Oil in Your Snacks,” Forbes, June 7, 2010.
vi Source: Associated Press, “Colleges Going to School on Apps,” Investors Business Daily, January 24, 2011.
vii Source: Associated Press, “Colleges Going to School on Apps,” Investors Business Daily, January 24, 2011.
viii The Internet is a dynamic, changing information source. Web links noted of this manual were checked at the time
of publication, but content may change over time. Please review the website before recommending it to your stu-
dents.
ix Source: Nina Easton, “As Foreign Aid Dries Up, Companies Take the Lead in global Development,” Fortune, July
24, 2014.
