978-0470639948 Chapter 1 Solution Manual Part 4

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Collins Instructor’s Guide

CHAPTER 1 ANCILLARY MATERIALS

Websites to Explore

Business Ethics surveys

oEthics Resource Center, available at:

http://www.ethics.org/topic/national-surveys.

oJosephson Institute, available at: http://josephsoninstitute.org/.

oGallup Poll business ethics surveys, available at:

http://www.gallup.com/search/default.aspx?q=business+ethics&s=&p=1.

Government statistics

oBureau of Justice, available at: http://bjs.ojp.usdoj.gov/.

oU.S. Equal Employment Opportunity Commission, “Discrimination by Type,”

available at: http://www.eeoc.gov/laws/types/index.cfm.

100 Wallets Dropped in Front of Hidden Cameras to Test Honesty, available at:

www.wallettest.com.

Best Place to Work Video

Best Place to Work – SAS, available at:

http://money.cnn.com/video/fortune/2010/01/20/f_bctwf_sas.fortune/.

Business Ethics Issue Video

“The Spill,” Frontline, about the BP Oil Spill, October 26, 2010, 54 minutes, available at:

http://www.pbs.org/wgbh/pages/frontline/the-spill/?

utm_campaign=viewpage&utm_medium=grid&utm_source=grid.

TEDTalks Videos

Born with Blank Slate Mind and Innate Traits: Steven Pinker talks about his book The

Blank Slate which argues that all humans are born with some innate traits; February,

2003, 22 minutes, available at

http://www.ted.com/talks/steven_pinker_chalks_it_up_to_the_blank_slate.html.

Human Beings Compared to Animals: Jane Goodall, the primatologist, says the only real

difference between humans and chimps is our sophisticated language; March 2002, 28

minutes, available at:

http://www.ted.com/talks/lang/eng/jane_goodall_on_what_separates_us_from_the_apes.h

tml.

Conversations with Charlie Rose

A conversation about how the brain controls social behavior; January 19, 2010, 53

minutes, available at: http://www.charlierose.com/view/interview/10820.

A conversation with former Secretary of Education William Bennett about his book “Our

Sacred Honor”, which offers pieces of moral wisdom from the country’s founding fathers;

October 1, 1997, 31 minutes, available at:

http://www.charlierose.com/view/interview/5333.

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Collins Instructor’s Guide

CHAPTER 1 ETHICAL DILEMMA ANALYSIS

Each chapter contains three real-life ethical dilemmas: (a) What would you do? (all scenarios

provided by my students), (b) Let’s Build a Building (all scenarios provided by a construction

consultant), and (c) In the Real Word: Enron (more in-depth explanations available in Denis

Collins (2006) Behaving Badly: Ethical Lessons from Enron.

Have students apply Exhibit 5.11 “Critical Thinking Decision-Making Process Table” to analyze

these ethical dilemmas (instructions below). By doing so, students develop a habit for analyzing

decisions that take into consideration ethical concerns.

Step 1: Write the decision options in the appropriate column below.

Step 2: Apply the seven “Applying Ethical Theories to Decision Making” questions to the

decision to obtain relevant ethical information.

Step 3: Insert the ethical strength and weakness revealed by each of the seven ethical questions in

the appropriate column below.

Step 4: Review the option strengths and insert in the options column what “value” supports the

option (i.e., honesty, loyalty, efficiency, respect, job security, profits, etc.)

Step 5: Given the strengths and weaknesses, choose a decision option, explain why that option

and value were chosen rather than the alternative options, and determine how to manage the

weaknesses associated with the option chosen.

NOTE ON ETHICAL DILEMMA ANALYSES AND AUTHOR RECOMMENDATION – The

“author” (me) is stating his best judgment. All the ethical dilemmas are difficult and involve

tradeoffs, some more so than others. As noted throughout the textbook, everyone has a different

moral intuition and those reasoning at the same level of moral development can disagree about

the right thing to do. In addition, everyone has a different level of risk comfort (my risk comfort

is rather high). The teacher can use my recommendation as grounds for student agreement or

disagreement.

CHAPTER 1 ANALYSIS FOR WHAT WOULD YOU DO?

1) Who are all the people affected by the action?

You (marketing manager), owner, customers, supplier, businesses and homeowners robbed,

upset community members, police, thief

2) What option benefits me the most?

Mixed: If you purchase the design you can make a lot money, but you will also make enemies

of businesses and homeowners recently robbed

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Collins Instructor’s Guide

3) What option does my social group support?

4) What option is legal?

5) What option is the greatest good for the greatest number of people affected?

6) What option is based on truthfulness and respect/integrity toward each stakeholder?

Don’t purchase the design (#2): This demonstrates respect for victims, police, and

7) What option would a virtuous person do?

Don’t purchase the design (#2): Moral character is strengthened by standing up for your

personal moral beliefs and refusing to glorify a criminal.

Option Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

Chosen Because #1: Purchase the design: you maximize profits, customers shop at your

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demonstrates respect for community well-being

AUTHOR RECOMMENDATION: Option #2: Don’t purchase the design – This is based on

social group relativism, cultural relativism, utilitarianism, deontology, and virtue ethics. You may

lose some revenue, but you are respecting nearby businesses, victims, and community members.

Continue to find innovative designs that appeal to college customers without glorifying a

criminal.

CHAPTER 1 ANALYSIS FOR LET’S BUILD A BUILDING

1) Who are all the people affected by the action?

2) What option benefits me the most?

3) What option does my social group support?

4) What option is legal?

5) What option is the greatest good for the greatest number of people affected?

Difficult to determine: Holding brokers accountable for land use impacts many people. But

6) What option is based on truthfulness and respect/integrity toward each stakeholder?

Sue the broker (#1): Suing the broker holds the broker accountable for knowing the contract

7) What option would a virtuous person do?

All can be: Moral character is strengthened by suing the broker who should be accountable.

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$275,000 makes you feel like the business park owner is manipulating you; however, if it

Option Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

recover costs, sell

park owner, sell

modification,

rezone, open fall

2014

Makes building greener

plan, rezone, open

fall 2015

Option and Value

#1: Sue broker, recover costs: Holds broker accountable

Chosen Because #1: Sue broker, recover costs: Need to hold people accountable for actions

How Will You

#1: Change plans to incorporate an additional year to get land

AUTHOR RECOMMENDATION: Option 1: Sue the broker and Option 4: Keep $3 million

plan, rezone, and open fall 2015 – Option 1 is based on social group relativism, cultural

relativism, deontology, and virtue ethics. The broker needs to be held accountable for not

knowing the land stipulation when making the deal. This also prevents the broker from maker

CHAPTER 1 ANALYSIS FOR IN THE REAL WORLD: ENRON

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Collins Instructor’s Guide

1) Who are all the people affected by the action?

You (CEO of Enron/Ken Lay), Irwin Jacobs, InterNorth and HNG shareholders, InterNorth

2) What option benefits me the most?

3) What option does my social group support?

Merge (Option #2): CEO’s have duty to act in the best interests of shareholders. Shareholders

4) What option is legal?

5) What option is the greatest good for the greatest number of people affected?

Merge (#2): Shareholders immediately maximize wealth and HNG would now be part of the

6) What option is based on truthfulness and respect/integrity toward each stakeholder?

Mixed: Merging respects shareholders and they can sell stock immediately, but this can result

7) What option would a virtuous person do?

Mixed: Moral character can be strengthened by taking on the challenges and responsibilities

Option Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

#2: Merge with

Financial windfall for you and

You and other executives may lose

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Huge debt

Option and Value

#1: Reject Proposal: Stability

Chosen Because #1: HNG is doing well as regional player, this opportunity is too risky

How Will You

#1: Look for other opportunities that do not entail so much debt incurred.

AUTHOR RECOMMENDATION: Option #2: Merge – This is based on social group relativism,

cultural relativism, and utilitarianism. Merging creates many benefits for HNG operations. A lot

hinges on being able to manage the $4.3 billion debt (deontology and virtue ethics). Assuming

that it can be managed, accept the merger opportunity and build into the agreement safeguards to

limit the harms likely to be incurred by HNG employees losing their jobs and the city of

Houston. Hone political skills to come out on top in the merged organization and remain

prominent in Houston. Find new revenue streams to manage the additional debt.

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