MODULE 44: Using “Bad” Things to Increase Profits
Core Module Issues:
• What, if any, legal products and services are “bad”.
• Can companies ethically profit from selling such products and
services?
Module Teaching Notes
Some students will be surprised to learn that the pornography industry is larger than all major sports
leagues combined. Others may be looking at porn on their laptops during your class and, if they were not
so distracted, would not be surprised in the slightest.
At any rate…
A good opening discussion here is on which legal products and services are immoral. You might include a
discussion on things that are subject to special “sin taxes” in your state – maybe alcohol, tobacco, casinos,
etc.
Students often have very strong opinions about some products, especially cigarettes.
Then, transition into pornography. Make it a given that you are not talking about child pornography, or
unusually violent images. Keep the discussion to “regular” porn, in which all actors/models are “of age”.
Get an initial read on whether students find porn somewhat distasteful, very distasteful, or no problem at all.
Make them defend their positions.
In the scenario, a very wealthy fellow is presented with the idea that he should make pay-per-view
pornography available in his hotel rooms.
He is also pitched the idea that he could become involved in the production and distribution of pornography.
If you wish, you can easily expand the discussion to other things that your class seems to dislike. Maybe
the character is also presented with a chance to operate a casino, or is asked whether he wants to invest
heavily in tobacco, or guns, or whatever.
But again, the key point for discussion here is whether legal products are “OK”, or whether people should
pass by chances to make money from “bad but legal” things.
You might ask the class whether they would themselves invest in tobacco companies, pornography
producers, etc. when saving for their own retirements, if they were convinced that those investment options
would generate a maximized return.
It is interesting to watch some students make an “about face” when you substitute them for the hypothetical
character in the module.
Discussion Points for Scenario Questions
1. Should Allen approve the showing of X-rated pay-per-view movies in his hotel’s rooms?
A. YES – WOULD YOU WANT TO STAY IN A HOTEL THAT OFFERED
PORN? WOULD THE ANSWER BE DIFFERENT IF YOUR CHILDREN WERE
WITH YOU.
2. Would your answer to the first question be any different if the hotels were failing and the
addition of X-rated movies was a way to keep the hotels out of bankruptcy?
A. SAME ANSWER – BOTH OK OR NOT OK?
B. DIFFERENT ANSWER – IS ETHICAL BEHAVIOR A LUXURY? ONLY FOR
“GOOD ECONOMIC TIMES”?
3. Should Allen acquire the pornography distribution company? Why or why not?
A. YES – DOESN’T THIS GO A BIT FAR – DIRECTLY CREATING AS
OPPOSED TO PROFITING FROM EXISTING PORNORGAPHY?
4. Should Allen acquire the pornography production company? Why or why not?
A. YES – SURELY THIS GOES A BIT TOO FAR, DOESN’T IT?
B. NO – WON’T “SOMEONE ELSE” JUST DO DISTRIBUTE IT ANYWAY?
5. Rate tobacco companies and producers of pornography on the following scale:
Should be Illegal —————————————→Completely Acceptable
Tobacco Companies 1 —– 2 —– 3 —– 4 —– 5 —– 6 —– 7
Pornographers 1 —– 2 —– 3 —– 4 —– 5 —– 6 —– 7
If your ratings are different, why is one higher than the other?