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Collins Instructor’s Guide
CHAPTER 12 KEY WORDS
Cause-related marketing (p. 335): a win-win strategic partnership whereby nonprofits benefit
by revenue generated through the sales of the donor’s product or service.
Corporate citizenship (p. 319): the extent to which a business meets its economic, legal, ethical,
and philanthropic responsibility in the community, or communities, in which it operates by
creating a higher standard of living and quality of life.
Interpenetrating Systems Model (p. 323): segments human activities into four major
subsystems: government, business, nonprofits, and personal-communal, each with its own
purpose.
Noblesse oblige (p. 327): the belief that the wealthy are obligated to exercise the virtue of
generosity.
Philanthropy (p. 326): the donation of money or property to assist a nonprofit organization or
people in need.
Primary stakeholders (p. 324): those who have an economic relationship with the organization,
such as owners, employees, customers and suppliers.
Sabbatical (p. 329): a corporate leave program where employees take time off to assist nonprofit
organizations or for personal development.
Secondary stakeholders (p. 324): those who indirectly affect or are affected by the company’s
activities, such as community members, nonprofits, the media, and the government.
Social entrepreneurship (p. 330): using business principles to directly meet basic human needs.
Socially Responsible Investment (SRI) (p. 320): a financial market that screens companies for
financial performance and social performance.
Strategic philanthropy (p. 333): partnering of a company and nonprofit organization to achieve
a communal good that also benefits the company.
Sweatshops (p. 320): a business facility that employs workers at low wages, for long hours, and
in unhealthy working conditions.
Tax avoidance (p. 316): legally not paying taxes
The Gospel of Wealth (p. 327): essay by industrialist Andrew Carnegie arguing that wealthy
individuals, particularly the self-made rich, had a moral responsibility to invest their fortunes for
the well-being of society.
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United Nations Global Compact Principles (p. 321): ten guiding principles developed by the
United nations in the areas of human rights, labor, environment, and corruption for conducting
business anywhere.
United Way (p. 328): a nonprofit organization that raises money from local businesses and
distributes the donations to local nonprofit organizations.
Volunteerism (p. 326): the donation of time to assist a nonprofit organization or people in need.
Work-life balance (p. 317): achieving the appropriate balance between time spent working and
one’s personal life.
CHAPTER 12 ANCILLARY MATERIALS
Websites to Explore
Timberland, “Corporate Responsibility: Service Toolkit,” available at:
http://www.timberland.com/graphics/media/tbl/TimberlandServiceToolKit.pdf.
Salesforce.com Foundation, “Share the Model,” available at:
www.salesforcefoundation.org/sharethemodel.
(RED), available at: www.joinred.com.
United Nations Global Compact, available at: http://www.unglobalcompact.org/.
Philanthropy
oUnited Way, available at: http://liveunited.org/.
oCouncil on Foundations, available at: www.cof.org.
oGiving USA, available at: http://www.givingusa.org/.
oBill & Melinda Gates Foundation, available at: http://www.gatesfoundation.org/.
oAmerican Institute of Philanthropy, available at: www.charitywatch.org.
oCharity Navigator, available at: www.charitynavigator.org.
Volunteering In America, available at: http://www.volunteeringinamerica.gov/.
Socially Responsible Investing (KLD), available at: http://www.kld.com/.
International Opportunities
oGlobalGiving, available at: www.globalgiving.com.
oKiva, available at: www.kiva.org.
oVittana, available at: http://www.vittana.org/.
Best Place to Work Video
Best Place to Work – Zappos, available at:
http://money.cnn.com/video/fortune/2009/01/21/fortune.bctwf.zappos.fortune/.
Business Ethics Issue Video
“Ten Million and Counting,” Frontline, about the politics behind the federal
government’s huge debt; March 24, 2009, 57 minutes, available at:
http://www.pbs.org/wgbh/pages/frontline/tentrillion/view/?
utm_campaign=viewpage&utm_medium=grid&utm_source=grid.
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TEDTalks Videos
Work Sabbatical: Designer Stefan Sagmeister, who every seven years closes his New
York studio for a yearlong sabbatical to rejuvenate and refresh their creative outlook,
explains the often overlooked value of time off and shows the innovative projects
inspired by his time in Bali; July 2009,18 minutes, available at:
http://www.ted.com/talks/stefan_sagmeister_the_power_of_time_off.html.
Kiva: Jessica Jackley, the co-founder of Kiva.org, talks about how her attitude about
people in poverty changed and how her work with microloans has brought new power to
people who live on a few dollars a day; July 2010, 19 minutes, available at:
http://www.ted.com/talks/jessica_jackley_poverty_money_and_love.html.
Conversations with Charlie Rose
A conversation with Bill Gates, Melinda Gates and Warren Buffett about 'The Giving
Pledge' to donate half of a person’s net worth to charity; June 16, 2010, 60 minutes,
available at: http://www.charlierose.com/view/interview/11063.
A discussion about Philanthropy and Foundations in the United States; August 22, 2007,
24 minutes, available at: http://www.charlierose.com/view/interview/8655.
CHAPTER 12 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.
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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 12 ANALYSIS FOR WHAT WOULD YOU DO?
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?
Speak with colleague later (#2): The colleague’s behavior can damage the bank’s reputation
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?
Speak with colleague later (#2): You can’t deny what you’ve observed. Speaking with the
7) What option would a virtuous person do?
Stop and say hello to colleague (#1): Moral character is strengthened by immediately
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
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colleague later
Provides colleague with time to
explain
Option and Value
Chosen
#1: Stop and say hello:
#2: Speak with colleague later:
Chosen Because #1: Stop and say hello:
#2: Speak with colleague later:
How Will You
Manage Chosen
#1: Stop and say hello
#2: Speak with colleague later
AUTHOR’S RECOMMENDATION: Option 1: Stop and say hello – This is based on virtue
ethics. Your colleague is damaging the company’s reputation, your client lunch meeting, and his
spouse and family. By addressing the issue immediately, without any accusation, the situation is
made very transparent to the colleague. Waiting until later is also a strong moral action, but it
contributes to an unfocused client lunch.
CHAPTER 12 ANALYSIS FOR LET’S BUILD A BUILDING
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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?
Not say anything (#2): Saying anything violates client confidentiality, but you must also hold
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?
7) What option would a virtuous person do?
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
Retail Store CAO
Option and Value
#1: Tell Medium Retail Store CAO: Friendship
Chosen Because #1: Tell Medium Retail Store CAO: Friends should share relevant
How Will You
Manage Chosen
#1: Tell Medium Retail Store CAO: Ensure that your friend will look into
issue in manner that is not traceable to you
AUTHOR’S RECOMMENDATION: Option 2: Not say anything – This is based on egoism,
social group relativism, cultural relativism, utilitarianism, and virtue ethics. You have a
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professional obligation to maintain client confidentiality. Breaking this confidentiality can result
in loss of business and litigation. Ensure Lois holds Big Construction accountable for violation
and be prepared to tell friend about your profession obligations when memo of agreement
violation is found out.
CHAPTER 12 ANALYSIS FOR IN THE REAL WORLD: ENRON
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?
6) What option is based on truthfulness and respect/integrity toward each stakeholder?
Preserve all Enron documents (#2): Destroying the documents so close to the highly
7) What option would a virtuous person do?
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
Enron documents
cooperate with SEC and Enron
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Option and Value
#1: Legally destroy redundant and nonessential documents: Loyalty to
Chosen Because #1: Legally destroy redundant and nonessential documents: You’ve been
How Will You
#1: Ensure that only redundant and nonessential documents are destroyed
AUTHOR’S RECOMMENDATION: Option 2: Preserve all Enron documents – This is based on
utilitarianism, deontology, and virtue ethics. Arthur Andersen is under a cease-and-desist order
from the SEC. Destroying documents, even if redundant and nonessential, can lead some people
to believe you are destroying evidence and participating in a cover-up. Speak with legal office
and explain why you believe that the policy should not be implemented under these
circumstances; document your efforts in doing so.
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