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Collins Instructor’s Guide
CHAPTER 6 KEY WORDS
Assessment (p. 164): a systemic collection, review and use of information to determine
workshop effectiveness.
Embezzlement (p. 158): a particular type of theft and fraud where an employee steals money
from his or her employer.
Fraud (p. 158): the use of one's occupation for personal enrichment through the deliberate
misuse or misapplication of the employing organization's resources or asset.
Organizational trust (p. 146): having a positive attitude that another member of the
organization will be fair and not take advantage of one’s vulnerability or dependency in a risky
situation.
Theft (p. 158): taking someone’s property without their permission.
Web-based training (p. 148): software program that provides standardized information about
legal requirements and moral expectations.
CHAPTER 6 ANCILLARY MATERIALS
Websites to Explore
oEthical Dilemmas for Training
oInstitute for Global Ethics, Ethical Dilemmas, available at:
http://www.globalethics.org/dilemmas.php.
oThomsett International, “Crossing the Line” vignettes, available at:
http://www.thomsettinternational.com/main/articles/hot/hot_ethics.htm.
oSAIP Institute, eInsight Ethics Quiz, available at: http://ethics.jjhill.org/eQuiz_Start.cfm.
oGovernment Ethics Training
oInstitute for Local Self Government, Ethics Training Materials, available at:
http://www.cacities.org/resource_files/20383.completeguide.pdf.
oUnited States House of Representatives, Code of Conduct training, available at:
http://ethics.house.gov/Advice/Default.aspx.
oU.S. Department of Defense, “Encyclopedia of Ethical Failure,” September 2007,
available at:
www.dod.mil/dodgc/defense_ethics/dod_oge/Encyclopedia_of_Ethical_Failures_
2007_Full_Version.doc.
oMoral Development - Center for the Student of Ethical Development, available at:
http://www.centerforthestudyofethicaldevelopment.net/.
Best Place to Work Video
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Best Place to Work – Dreamworks, available at:
http://money.cnn.com/video/fortune/2009/01/21/fortune.bctwf.dreamworks.fortune/.
Business Ethics Issue Video
“A Dangerous Business,” Frontline, about worker safety and environmental violations at
McWane, Inc.; January 9, 2003, 54 minutes, available at:
http://www.pbs.org/wgbh/pages/frontline/shows/workplace/view/?
utm_campaign=viewpage&utm_medium=grid&utm_source=grid.
TEDTalks Videos
Difficult Negotiations: William Ury, author of Getting to Yes, offers a way to create
agreement in even the most difficult situations -- from family conflict to, perhaps, the
Middle East; October 2010, 19 minutes, available at:
http://www.ted.com/talks/william_ury.html.
Democracy and Public Policy Debates: Democracy thrives on civil debate, Michael
Sandel says, and leads a debate over a Supreme Court case (PGA Tour, Inc. v. Martin)
whose outcome reveals the critical ingredient in justice; February 2010, 20 minutes,
available at:
http://www.ted.com/talks/michael_sandel_the_lost_art_of_democratic_debate.html.
Conversations with Charlie Rose
A conversation with James Wolfensohn about the World Bank, the future of the world
economy and what it means to lead a global life; December 22, 2010, 20 minutes,
available at: http://www.charlierose.com/view/interview/11370.
A conversation with John Wood author of 'Leaving Microsoft to Change the World';
December 9, 2010, 15 minutes, available at:
http://www.charlierose.com/view/interview/11342.
CHAPTER 6 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
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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 6 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?
Refuse to finance loan (#3) or Let broker get real signature & warn don’t do it again (#4):
Some employees may take a strong disciplinary approach and refuse to finance this or future
4) What option is legal?
Refuse to finance loan (#3) or Let broker get real signature & warn don’t do it again (#4):
5) What option is the greatest good for the greatest number of people affected?
Refuse to finance loan (#3): It appears as if the broker planned to forge the signature.
6) What option is based on truthfulness and respect/integrity toward each stakeholder?
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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
You do not participate in the actual
forgery
standards
Option and Value
Chosen
#1: Accept client’s forged signature: Economic benefits
#2: Copy forged signature to look real: Economic benefits
Chosen Because #1: Accept client’s forged signature: Need for income
#2: Copy forged signature to look real: Need for income
How Will You
Manage Chosen
Option Weaknesses
#1: Accept client’s forged signature: Maintain silence and next time
highlight the need for original signature
#2: Copy forged signature to look real: Maintain silence and next time
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AUTHOR’S RECOMMENDATION: Option 3: Refuse to finance loan – This is based on social
group relativism, cultural relativism, utilitarianism, deontology, and virtue ethics. In your mind,
the mortgage broker intended to commit a crime by forging the client’s signature. Such behavior
is unacceptable and can result in your company being fined or losing its license. Do not let the
broker manipulate you, and don’t do business with an unethical broker. Put effort into obtaining
another large mortgage broker, and direct the client to a more reputable mortgage broker.
CHAPTER 6 ANALYSIS FOR LET’S BUILD A BUILDING
1) Who are all the people affected by the action?
You (employee overseeing project), rural building general contractor, metropolitan building
2) What option benefits me the most?
3) What option does my social group support?
Mixed: Some managers and general contractors do not want to be bullied by unions and want
4) What option is legal?
5) What option is the greatest good for the greatest number of people affected?
Nonunion plumbers (#2): Accepting the plumbers’ union president’s extortion demands
reinforces construction industry corruption. You are putting your metropolitan building
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
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Giving in to job extortion
Fair bidding process
Chosen Because #1: Union plumbers: Don’t want to threaten construction of the
How Will You
Manage Chosen
#1: Union plumbers: Negotiate for additional money from union
#2: Nonunion plumbers: Try reasoning with plumbers’ union president
AUTHOR’S RECOMMENDATION: Option 2: Nonunion plumbers – This option is based on
cultural relativism, utilitarianism, deontology, and virtue ethics. You are supporting a fair bid
process and standing up to an unethical bully. However, this may lead to labor unrest at your
other building site. Try reasoning with plumbers’ union president that such action may impact
negative evaluation of union members on future job sites. If the union president is unresponsive,
inform local and state authorities of threats.
CHAPTER 6 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?
Refuse to participate (#2) and inform the CEO (#3) or Arthur Andersen (#4): Fastow’s plan
violates the law as Fastow is providing the funds and profiting. If exposed, shareholders
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obligation to inform the SEC.
5) What option is the greatest good for the greatest number of people affected?
Refuse to participate (#2) and inform the CEO (#3): Fastow is not representing the best
6) What option is based on truthfulness and respect/integrity toward each stakeholder?
Refuse to participate (#2) and inform the CEO (#3): Fastow’s plan deceives the CEO, the
7) What option would a virtuous person do?
Refuse to participate (#2) and share intention to inform CEO if Fastow does not stop his plan.
Option Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
Option and Value
Chosen
#1: Support the plan: Money and loyalty to boss
#2: Refuse to participate: Honesty and Integrity, loyalty to law
Chosen Because #1: Support the plan: it financially benefits me
#2: Refuse to participate: it’s illegal and deceives shareholders
#3: Inform CEO: it’s illegal, deceives shareholders, and CEO is
How Will You
Manage Chosen
#1: Not inform anyone
#2: Document everything
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AUTHOR’S RECOMMENDATION: Begin with Option #2: Refuse to participate and continue
with other options to prevent this from happening – This is based on social group relativism,
cultural relativism, utilitarianism, deontology, and virtue ethics. Fastow is breaking the law by
funding the SPE with his own money and funneling profits to his Family Foundation. Try to
persuade Fastow not to do this. If he continues with this plan, inform CEO (#3), who can put an
end to this immediately. Attempt to solve the problem internally. If Lay is not responsive, then
inform Arthur Andersen who is responsible for auditing operations (#4). If Arthur Andersen is
not response, then inform the SEC (#5). Document these activities in case of dismissal or a future
lawsuit.
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