Chapter 03 – The Manager’s Changing Work Environment & Ethical Responsibilities: Doing the Right Thing
1. How does UPS’s approach toward sustainability impact the triple bottom line? Be
specific.
UPS’s CFO believes that companies have a responsibility to contribute to society
2. Which internal and external stakeholders are positively and negatively affected
by UPS’s approach to sustainability?
UPS’s approach to sustainability positively affects the communities (external
stakeholder) it works in. For example it provides safety training to drivers in
3. Which of the six general environmental forces influenced Mr. Kuehn’s approach
toward sustainability? Discuss.
There are a few general environmental forces influenced by UPS’s approach
toward sustainability. First are economic forces. UPS is paying attention to
MANAGEMENT IN ACTION:
UPS Actively Pursues Sustainability
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4. To what extent is UPS’s approach toward sustainability consistent with the four
approaches to deciding ethical dilemmas?
UPS is looking for maximum efficiency and minimum effort in deciding what not
5. Evaluate UPS’s approach toward sustainability against Carroll’s model of social
responsibility shown in Figure 3.2.
UPS is reconciling the ability to be profitable (economic responsibility), with being
a good global corporate citizen (philanthropic responsibility). It is hoping that it
6. How does UPS’s approach toward sustainability “pay off”? Discuss.
In the end, the “pay off” for this approach is through increased profits from
Chapter 03 – The Manager’s Changing Work Environment & Ethical Responsibilities: Doing the Right Thing
Is It Fair to Have Different Standards for Paying Bills versus Collecting Bills?
Mondelez International, a snack and food company formerly owned by Kraft Foods, is
Solving the Challenge:
Assume that you are a high-level manager at Mondelez International and that you
can affect the corporate policy of paying bills. What would you suggest that the
company do in regard to paying and collecting money?
1. Nothing. This is a free market decision and shareholders are the company’s most
important constituent: This policy maximizes the value to shareholders.
This option does not take into consideration outside stakeholders, such as
suppliers, distributors, the community, the mass-media, etc. Just focusing on your
2. Change the policy so that the company uses a consistent “time standard” in paying
and collecting money. This approach will also create good will among suppliers.
This option may seem like the most “just” form of payment procedure. However,
LEGAL/ETHICAL CHALLENGE
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3. It’s okay to have different “time standards” for paying and collecting money, but
120 days seems too long. I would use the industry average for both paying and
collecting money.
This option seems like a happy medium between the first two options above.
4. Invent other options. Discuss.
Proper supply chain management may assist organizations, big and small, in their
accounts payable and receivables issues. Software that track incoming and
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Objective
• To further students’ understanding regarding the four approaches to deciding
ethical dilemmas.
Introduction
Our personal values impact the determination of what is ethical. Researchers have
Instructions
1. Students should remain at their desks and read the scenario below.
2. You are a struggling writer. Several of your short stories are published thanks to
winning entries in various writing contests. You are majoring in creative writing and
3. Have each student decide what he or she would do based on each of the four
4. Break students into groups of 3-4.
5. Have students openly discuss what they would do for each approach and then
derive consensus recommendations.
GROUP EXERCISE: Solving an Ethical Dilemma
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Questions for Discussion
1. To what extent did the group develop different recommendations for each
approach?
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1) Raiding the Closet: Is It Okay to Steal Office Supplies?
Summary: Many people pocket a few pens, Post-its, or pads of paper from the office to
take home. Is pinching office supplies an action employers expect, a job perk, or a
crime? To get workers’ opinions, NBC News talked to the “employee on the street.”
Many people confessed to taking pens and pencils, a notepad or two, a hole puncher,
Discussion Questions:
1. Is it stealing to take office supplies from your workplace?
Answer: Observers suggest that employees seem to have a sense of
entitlement, feeling they are owed a few extras because of the long hours they
2. At what point does employee theft become grounds for firing?
VIDEO CASES
Chapter 03 – The Manager’s Changing Work Environment & Ethical Responsibilities: Doing the Right Thing
Answer: Four out of 10 managers responding to a survey on Inc.com said they
have fired employees for theft. One management consultant advises clients that
discovered and confirmed theft is grounds for immediate dismissal.
2) Grounded: Are U.S. Airlines Safe?
Teaching Objective: To illustrate how stakeholders in the internal and external
environment influence an organization and to demonstrate the importance of ethical and
socially responsible decisions.
Summary: The FAA found itself under intense scrutiny when a congressional oversight
panel found the organization to be too “cozy” with airline companies. Subsequent FAA
Questions:
1. How has the changing environment in the airline industry affected the cost of
operating an airline?
Answer: The cost of fuel as well as the cost of maintaining planes has led to
2. Who are the major stakeholders concerned with safety inside and outside of an
airline company?
Answer: Of course all stakeholders should be concerned with safety. Inside the
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3. What responsibility do airline companies and the FAA share to ensure the safety
of passengers?
Answer: Safety must come first, even before the bottom line. All companies and
Additional videos directly related to the textbook can be found in the Connect
Instructor’s Manual.
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Students may complete the “Ethics: Let’s Make a Fourth Quarter Deal” Manager’s Hot
Seat exercises in Connect for this chapter.
I. Introduction
This scenario provides a depiction of the ethical dilemmas that may arise when
II. Learning Objectives
1. To analyze the causes of ethical dilemmas
III. Scenario Description:
Overview: A Wall Street trading company, Smith/Blackwell, is coming to the end
of their 4th Quarter. BesTel Inc. has offered to invest 4 million dollars with
Smith/Blackwell which would not only save the department from lay-offs but
would create year-end bonuses for the manager’s team, which in recent months
Profile:
• Jason Powell, Director of New Accounts, manages a team of 25 people.
Held position for 4 years but in the past two years, investments have
fallen by over 50% department-wide.
MANAGER’S HOT SEAT
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References: The references included in the DVD are:
• Concepts in Ethical Behavior (PPT 2-3)
Back History: As the economy worsens, the new accounts department is facing
layoffs and downsizing. If the 4th Quarter numbers do not improve substantially,
up to 50% of their department will be laid off and the year-end bonuses will be
foregone for the entire department. The environment is stressed and morale is
low.
Scene Set-up: Travers makes an appointment with Powell to discuss some
recent opportunities.
Scene Location: Powell’s office.
The Meeting – Summary: Gina, the account representative approaches Jason
with a “deal” from BesTel that will save the department and allow everyone to
earn their bonuses for the year. Jason is reluctant to jump on board with this
Afterthoughts – Summary: Jason did not think the meeting went well. He was
concerned with Gina’s insistence on rushing to action without thoroughly thinking
through the consequences. He noted that there is always tension between the
Dossier: The specific artifacts included in the DVD are:
1. Document outlining the “restructuring” of the New Accounts
Department, should they not reach their financial goals for the 4th
Quarter.
Chapter 03 – The Manager’s Changing Work Environment & Ethical Responsibilities: Doing the Right Thing
IV. Discussion Questions:
The References and related Discussion Questions may be found in PowerPoint slides
2-1 to 2-11.
Learning Objective #1: To analyze the causes of ethical dilemmas
1. What is the source of this conflict and what role has the organization played to
contribute to this dilemma? (PPT 2–2)
The account representative is very motivated to make this deal go through
because the organization has tied her bonuses and salary increases to the
1. Why is Jason skeptical?
a. Client isn’t reliable
2. Which of the “Concepts in Ethical Behavior” are relevant to this scenario? Why?
(PPT 2-2 & 2-3)
Most would be considered in this scenario, students’ answers will vary.
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3. Organizations can effectively help their employees to behave and act ethically by
creating and communicating a code of ethics. What factors in this scenario should
be considered if you were to develop the code of ethics for Smith/Blackwell? See
“Sources for Codes of Ethics” PPT 2-4 & 2-5.
Students should address each of the three aspects affecting the
1. Describe Gina’s initial approach with Jason. What influence tactic does she use
initially? Was it successful? (PPT 2-6).
Initially, Gina relies on the common goals she and Jason share with
2. Jason’s behavior demonstrates:
a. caution
2. How does Gina handle Jason’s hesitation to move forward on the deal? How
does her reaction affect Jason? (PPT 2-6)
Gina gets flustered and does not use rational case to argue her point.
She begins to get defensive and uses a “bull–dozer” approach to
3. Gina’s over-excited. Jason should:
a. Calm Gina
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By agreeing with some aspect of her proposal he may decrease her
3. Upon realizing that Jason will not easily sign-off on the deal, Gina attempts a
variety of different influence techniques. Describe them and evaluate how
effective and appropriate they were given the situation. (PPT 2-7)
Gina tries to threaten Jason by saying she will go over his head and make
the deal happen with Jason’s boss. Depending on the culture of the
4. How should Jason respond to a threat?
a. Ignore it
Learning Objective #3: To apply principles of ethical decision making
1. Consider each of the principles to guide ethical conduct (PPT 2-9). Analyze this
situation from both Gina’s and Jason’s perspectives using these principles.
Which model did Gina rely on most heavily? Jason? (PPT 2-8)
Answers will vary. An argument could be made for any of the models.
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5. What are the risk factors?
a. Losing deal
2. Review the “Approaches to Social Responsibility” (PPT 2-11). Which approach
is most closely aligned with Gina’s behavior? Which approach most closely
matches Jason’s? Explain your choices. (PPT 2–10)
Gina’s behavior seems to resemble the Obstructionist approach because
she is not concerned with the legality of her actions. Jason is initially
6. What should Jason do next?
a. Let Gina make deal
b. Call Jack himself