Chapter 1: The Language of Ethics
Sample Discussion Answers
1. Why are managers uncomfortable discussing ethics? Relate both the answers
provided in the chapter and your own ideas based on your experiences. (Page 2)
There are many reasons why managers may feel uncomfortable discussing ethics – see p.
2 for the list summary of the findings of Bird and Waters: i) managers believe they lack
2. What is ethics, and what does it mean to “put business and ethics together”?
From your vantage point, what would it mean for a company to do this well? (Page
4)
Ethics is about human welfare, both our own and that of others, Ethics in this sense
includes not only an imperative to not inflict harm upon others, but also entails a
prescription for excellence. Such excellence may be manifested in any number of ways
3. What are the three traditions of ethics, and how do they provide guidance to help
inform your managerial decision making? (Page 5)
There is a tremendous amount of literature from throughout history exploring issues of
ethics. That literature can be broadly categorized into three large themes:
1. The actions or “means” people use to achieve their goals. This dimension of
ethics is concerned with identifying the intrinsic moral value of particular actions.
2. The agents or “persons” who are acting in the situation. This tradition of
thought sees ethical behavior and ethical people as one in the same: people who
3. The ends or “goals” that are outcomes of actions. This branch of ethics
evaluates the moral value of an action in terms of the consequences of that action.
These three themes are each facets of ethics that can be considered when evaluating
ethical justifications. Each tradition brings with it certain insights that can help guide
managerial decision making.
The actions-based tradition is probably the tradition of thought most people immediately
associate with ethics, possibly because it is a constant presence in daily life. Social
norms, standards of conduct, legal systems, and religious beliefs all shape what people
believe to be virtuous or immoral actions. Very likely, these institutions have already
shaped your own beliefs as to what constitutes ethical actions – beliefs that guide your
decisions on a daily basis. Do you apply those same precepts within the workplace as you
do in life outside of work? Why or why not?
The agent-based tradition can further help one evaluate an ethical decision by considering
how the decision will affect one’s character. One way to benefit from this tradition is to
ask oneself what kind of manager one wants to become and what kind of actions will lead
to becoming that kind of manager. (i.e. what would <insert personal hero> do in this
situation?) Likewise, some could argue that, just as the actions of an individual determine
that individual’s character, the actions of a company determine that company’s ethical
culture. As a manager, what kind of corporate culture do you wish to foster? How is that
Finally, the ends-based tradition serves to remind that, good intentions aside, good ethical
decisions require a consideration of the consequences of an action. One can use this
dimension of analysis as a manager to evaluate how one’s decisions align with one’s
goals. What are the consequences of this action? What are the consequences of those
consequences?
Note that this line of reasoning can lead to conclusions that counter the prescriptions of
actions-based and agent-based traditions. If lying in a certain circumstance results in a
better outcome than not having lied in that situation (e.g. lying to the mass-murderer who
asks for directions to the children’s hospital), then the result would justify the act. Lying,
in this example, could be considered the morally justifiable (perhaps, even virtuous) thing
to do. Some fear that this sort of reasoning can devolve into an excuse for any number of
objectionable acts. So long as the ends are desirable, are any and all means justifiable? If
different means could provide the same end, could one select from among the means one
that provides the most good/least harm? If so, one would need to consider what it means
4. Discuss the three guides to avoid rationalizations and provide your own examples
to illustrate how they may help you make better decisions. (Page 16)
Three tests that could be used to help avoid rationalizations include:
1.) The Publicity Test
2.) The Reversibility Test
If the situation were “reversed” and you had to bear the burden of the negative
3.) The Generalizability Test
5. What is reflective equilibrium? How does one get into reflective equilibrium, and
what is it that tends to take people out of it? (Page 17)
Reflective equilibrium reflects a state where one’s moral intuitions are congruent with
one’s moral principles: practice re-enforces theory and vice versa. An idea underlying
6. Why do your decisions, particularly as they relate to ethically charged issues,
matter? Please draw from both what the chapter suggests and your own ideas.
(Pages 19-20)
Responses should vary by individual, but here are some points that the book mentions:
Accountability to the Stakeholders
Ethics Talk is Helpful
Regardless of what some people might say, ethics does matter to people. Being able to
talk about ethics and understand ethical concerns and problems will help you more
effectively work with employees, the public, customers, suppliers, the media, and the
Ethical Decisions Are Part of the Job
A manager must be prepared to make difficult decisions. You ability to make sound,
Personal Integrity Is Important
While many aspects of our lives are determined by external circumstances and dumb
Legal Reasoning Is Necessary, But Not Sufficient
Obviously, working within the boundaries of the law should be a give. But a good
manager should go beyond merely following the letter of the law, and understand that the
reason why laws are made is to encourage good behavior.
Perhaps an analogy could be useful here. Suppose an individual is trying to learn good
Competitive Advantage
Teaching Notes
Synopsis
Alex Franklin, project manager for APEX computer software company, is put into a
difficult situation. He is the lead rep for his company on this project and his main contact
with the potential client (First Street Bank), Sean McBride, has just provided him with
information that may set him up for either a huge opportunity or a giant mistake. Franklin
has to sort out which it is and make a decision that could well define his career and the
reputation of his company. There is a lot at stake for him personally and for his firm. If he
wins the bid with this client his star is on the rise and he will likely move into a senior
management position in the near term – if he doesn’t get the contract, he will likely have
trouble moving up the corporate ladder and will need to go elsewhere to be promoted.
The firm is also under financial pressure, so winning the contract could be a big positive
turn of events while losing out to the competition could mean layoffs for APEX. A major
factor as well is First Street Bank (FSB) and how to interpret Sean McBride’s actions.
From the case it appears that FSB plays things close to the vest and does business by the
book. In this case they have asked for secret bidding among competitors – so is
McBride’s offer of the folder (which appears to contain the bid of APEX’s main rival) a
trick designed to test Franklin’s integrity, the act of a rogue employee intent on getting
the best deal for his company, or a pressure tactic from FSB to see how badly APEX
wants to do business with them? All these, and other motivations, are possible.
Objective
This case provides a great starting point for your discussions and a chance for students to
get their feet wet in thinking about ethics in business. It is also a great opportunity to start
Questions for Discussion
1. How many of you are tempted to look at the folder? How many of you would
actually look? [VOTE] Give a one sentence answer for why you would or would
not look?
2. What is being offered here? Do I know this, or if not, what do I know? How does
that impact what I should do?
3. What is at stake here? How much should that matter to my decision?
4. Is there anything wrong with looking? Is it stealing or cheating? If so, why would
you say that?
5. Isn’t business competition about doing your best to look out for your organization
within the terms set by those running the competition? Given that FSB has given
us access to this information, isn’t that reason enough to look?
6. Does your answer about whether it is OK to look at the folder change if you knew
that your competitor would look at your folder if they were given the chance?
7. Is time a factor here? Particularly if I care about not looking, and being seen as
having not looked, what do I need to do and how soon do I need to do it?
8. Make the best case for your decision here – why is your choice (look or don’t
look) the best one?
Suggested Lesson Plan (85 minutes)
1. Question 1 (10 minutes): This provides a chance to see how many folks really
think about this as an attractive option and then to really hold their feet to the fire
2. Questions 2 & 3 (20 minutes): this is a chance to step back and think about the
context and what is going on – do I know what is in the folder? No. Do I have
some sense about this? Probably. Again, for the purposes of having a good
3. Questions 4-6 (25 minutes): here is a chance to dig further into why students
may have discomfort with looking as well as why some may feel it is perfectly
4. Question 7 (10 minutes): time may matter a great deal in some cases. One could
argue that time is critical here, particularly if you care about being see as having
5. Question 8 (20 minutes): here’s a chance to let the debate rage. Push students to
think about the kind of argument they are making, and whether they are picking
up on the kinds of arguments used by others. Is it about deontology and the rules
or is this a debate about consequences? Or is character the driver? If one is caught
Yahoo! and Customer Privacy
Teaching Notes
Synopsis
In the summer of 2004, the Chinese government requested that Yahoo! disclose to them
the name and address of the Yahoo! subscriber “houyan1989@yahoo.com.cn.” The
government did not divulge their reasons for wanting that information; and in the
political climate of China at the time, employees at Yahoo! feared that the Chinese
government was seeking the information for political purposes. There were concerns that
revealing the name and address of the subscriber might put his or her welfare in danger.
At the same time, Yahoo! was beginning to gain a foothold in what could potentially
become the largest and most lucrative internet market in the world. Upsetting the Chinese
government could potentially result in greater restrictions on all online companies and
freedom of speech in China.
Objectives
The case of Yahoo‘s operations in China present us with an interesting opportunity to
explore ethics and business in a context where ethical norms are not clearly defined.
More specifically, Yahoo is operating in a country with a different political and social
setting than that found in the U.S, raising some direct issues for the firm about how it will
conduct business globally. Questions of the privacy rights (and expectations) of its users,
Questions for Discussion
1. What is your gut reaction to whether Yahoo! should comply or push back?
2. Why do you believe that action to be the right thing to do? What guides you choosing
that particular decision?
3. Assuming that you follow through with this line of action, how would this decision
shape Yahoo! as a company? What kind of precedent is set by pursing this act? What
values are at stake for you and for Yahoo!?
4. What are the consequences of this action? Who stands the most to gain or lose by your
decision? Could better outcomes have been achieved through different means?
5. Imagine that your decision were reported on the front page of the New York Times.
Would you still abide by that decision? Would your answer be different if it was The
China Daily or Der Spiegel (or some other international newspaper)?
6. What does this case suggest about doing business globally?
Suggested Lesson Plan (85 minutes)
1. Question 1 (10 minutes): There are valid arguments for either position (to
disclose or to not disclose). What’s more important is the justification for either
2. Question 2 (15 minutes): Is the act moral under the actions-based tradition of
ethics? What sources of moral guidance do students use in making their
3. Question 3 (15 minutes): If Yahoo! decides to acquiesce to the Chinese
government’s demands now, what kind of example would that set for future
decisions of the company? What kind of company will Yahoo! become if it
4. Question 4 (15 minutes): It is hard to know the consequences of our actions in
advance, but we can try to think about possible outcomes to possible actions. For
example, would it be possible that, by surrendering the name and address in
question, Yahoo! could build up its internet base, become more firmly entrenched
in China, and from that vantage point be a force for gradually improving human
5. Question 5 (10 minutes): This is the publicity test. It brings us to an interesting
point. It may be possible that an action a student may consider to be the right
6. Question 6 (15 minutes): This provides an opportunity to step back and think
through more about what it takes to compete internationally and what broader
lessons to draw from this case. Do we need a set of universal values to apply the
same in all contexts, no values at all since we have to adapt to each context, or
some third alternative? Take some time to think this through and anticipate where
