Case Solution For Organizational Ethics A Practical Approach 5th Edition by Craig E. Johnson Chapter

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Organizational Ethics A Practical Approach 5 th Edition by Craig E. Johnson Chapter 1-12

Chapter 1: Ethical Competencies and Perspectives Case Study 1.1: Facial Recognition Technology: A Tool for Public Safety or Oppression?

Case Synopsis and Analysis Facial recognition technology enables law enforcement officials to identify suspects by comparing images from photos or video to pictures from drivers‟ licenses, mugshots, and other government databases. Police departments use the technology to solve crimes and border patrol agents employ the software to identify those entering the country illegally. However, facial recognition opponents argue that the potential costs of the technology outweigh any public safety benefit. The systems don‟t accurately identify minority subjects and there is no oversight of how the police use facial recognition. The Chinese government relies on the software to control its Uighur Muslim minority and to monitor the behavior of ordinary citizens. San Francisco became the first major American city to ban the use of facial recognition technology by law enforcement.

Others suggest that restrictions be put on its use rather than banning it altogether.

Learning Objectives 

Students will recognize utilitarian reasoning used in a real-world case.

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Students will identify the costs and benefits of facial recognition technology.

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Students will weigh the costs and benefits to determine if facial recognition technology should be banned or restricted.

Discussion Guide As a group, create a list of the costs and benefits of the use of facial recognition in law enforcement. Then ask students to determine whether they think the benefits outweigh the costs

and if any limitations should be put on the use of this software. Students may disagree even when using the same list of costs/benefits. Discuss why decision makers might reach different conclusions about what is the “greatest good” in this and other dilemmas (which is a weakness of utilitarianism). Ask the class to identify possible solutions that might satisfy both sides.

Conclude by polling students to determine how many support San Francisco‟s ban on facial recognition software. If time allows, have them defend their positions.

Case Study 1.2: Pets on Planes Case Synopsis and Analysis More Americans are bringing creatures of all kinds on airplanes, claiming that they are either service animals trained to do tasks for the disabled or emotional support animals that provide help with mental distress. Dishonest pet owners take advantage of federal regulations by buying fake service vests or fake emotional support certificates. As a result, many untrained, misbehaving pets are allowed on board, threatening the safety and comfort of other passengers.

Sham service animals can keep disabled passengers from flying since airlines can only accommodate a limited number of animals per flight. State legislatures and the federal government are tightening guidelines and punishing those who dress their pets as service dogs.

Emotional support animals may soon be banned.

Learning Objectives 

Students will recognize the consequences of violating Kant‟s Categorical Imperative.

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Students will identify the negative impact of sham service and emotional support animals on the dignity of disabled persons.

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Students will develop guidelines for allowing animals in passenger cabins.

Discussion Guide Class members may have encountered animals while flying. Have them describe those encounters. Discuss possible penalties for bringing sham service and support animals on board as well as additional limitations on allowing animals in passenger cabins. Highlight the fact that faking service animals violates Kant‟s Categorical Imperative. Bringing sham animals on board is always wrong because, as the case illustrates, we wouldn‟t want all pet owners to do so.

Passing off pets as service animals also violates respect for persons, as it makes life more difficult for the disabled.

Case Study 1.3: Entering Through the Side Door: The College Admissions Bribery Scandal Case Summary and Synopsis Wealthy parents paid college admissions consultant William Singer to ensure that their children were admitted to prestigious schools. Singer falsified the test scores of some applicants. In other cases, he bribed coaches to secure spots for applicants who wouldn‟t otherwise qualify for admission. For instance, actress Lori Laughlin and her husband fashion designer Mossimo Giannulli pled guilty to paying $500,000 to have their two daughters designated as members of the rowing team, though neither participated in the sport.

Singer bragged that he used athletics to create a “side door” for clients who couldn‟t qualify on their own merits (the “front door”) or by donating millions to build new campus buildings (the “back door”). Singer pled guilty and 50 others have been charged. However, some institutions continue to reserve admissions slots for children of alumni and guarantee admission for the children of large donors.

Learning Objectives 

Students will evaluate the fairness of the college admissions process.

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Students will critique the admissions process at their own schools.

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Students will develop guidelines for making the college admissions process more just.

Discussion Guide This case should spark lively discussion since students have first-hand experience with the college admissions process. They may have strong feelings about the college admissions system as well as admissions at their own school. (Take special care in guiding the discussion if your institution was one involved in the scandal.) Have class members suggest punishments (if any) for students admitted in the scheme. Ask them to determine if there should be lower standards for athletes and others with special talents. Address the inequities in the college admissions system, including legacy admissions and donating buildings to secure admissions slots. Solicit ideas for reforming the college admissions system to make it more equitable.

Case Notes

Chapter 2: Ethical Decision Making and Action Case Study 2.1: The Fall of an Auto Industry Icon Case Synopsis and Analysis At one point, Nissan/Renault CEO Carlos Ghosn was a star of the automotive industry, credited with saving Nissan and skillfully overseeing the global alliance of Renault, Nissan, and Mitsubishi. His reign as an automotive icon came to a sudden end in December 2018. He was charged with underreporting his income and was removed as chair of Nissan and Renault.

Subsequent investigations found that Ghosn maintained an extravagant lifestyle at company expense, apparently driven by greed and excessive pride in his accomplishments. Ghosn argues that his arrest was a coup engineered by Nissan executives fearful of losing their jobs in a merger with Renault.

Learning Objectives 

Students will recognize the ethical dangers posed by greed and pride.

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Students will analyze the apparent failure of Nissan and Renault to prevent Ghosn‟s alleged misuse of company funds.

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Students will identify steps that organizations and individuals can take to prevent unethical behavior driven by greed and pride.

Discussion Guide Ghosn is not the first leader (or follower) to fall victim to success. Ask the class for other examples of prominent people who failed after significant achievements. Don‟t overlook the role that the company played in this scandal by failing to rein in the CEO. Identify steps that organizations can take to prevent executives from being victimized by pride and greed. Record these on a board, and post up sheet or computer along with steps we can take as individuals to

avoid the same fate. You may want to come with suggestions to prime the discussion. For example, boards of directors can exert more control over the chief executive, systems can be put in place to encourage whistleblowing, and strong executive teams can provide wise counsel to CEOs. As individuals, we can surround ourselves with people who will tell us the truth, can remember to give credit to others, and can put mission and values above the pursuit of money.

Case Study 2.2: Scenarios for Analysis Case Synopsis and Analysis Five scenarios provide readers with an opportunity to apply one or more of the decision-making formats presented in the second half of the chapter. These scenarios are drawn from both business and nonprofit settings.

Learning Objectives 

Students will apply decision-making formats to analyze the scenarios.

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Students will present and explain their decision-making processes.

Discussion Guide These scenarios can be used as a class exercise. Divide students into groups and assign them a format to use during their deliberations. Each group can be assigned a different format or all groups can be given the same format. (You will want to assign the 5 “I” format if you choose to use it as a template for decision making throughout the course.) Let the teams decide which scenario they want to discuss and have them record their format steps and responses on post up sheets or on their computers. Ask each group to report to the rest of the class by displaying their steps and answers.

As an alternative, assign students to respond to the scenarios on their own using one of the formats from the chapter or one that you assign. Or select a scenario or two and process as a class using a selected format.

Case Notes Chapter 3: Components of Personal Ethical Development Case Study 3.1: Killers as Caregivers: California‟s Prison Gold Coats Case Synopsis and Analysis Older prison inmates are more prone to dementia than those living outside of prison walls.

Caring for prisoners with dementia is expensive, costing up to nine times more than caring for younger, healthier inmates. Prisoners with dementia must be protected from other prisoners and helped to follow orders. At the California Men‟s Colony and other state prison facilities, inmates serve as caregivers for demented prisoners. These Gold Coats (named for their yellow coats which contrast with traditional blue prison garb) spend their days assisting their fellow prisoners with personal hygiene, taking medications, eating, doctors‟ appointments, exercise classes and other activities. Many Gold Coats are convicted murderers who want to redeem themselves from their pasts. As caregivers they learn to become patient and flexible and develop empathy.

Families of loved ones cared for by Gold Coats don‟t seem bothered by their violent pasts, and are grateful for the care these prisoners provide.

Learning Objectives 

Students will identify the existence of altruism in a highly unusual setting.

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Students will recognize that compassion and empathy can be learned.

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Students will determine if altruism can compensate for past behavior.

Discussion Guide Students will likely be surprised that violent inmates, often written off by society, can serve as effective caregivers. They might feel uneasy knowing that a convicted murderer was taking care of one of their imprisoned family members, though that doesn‟t seem to be the case for the families described in the case. The Gold Coats demonstrate that compassion can be learned.

However, some students might be skeptical of the motivation of the Gold Coats, believing that prisoners participate in the program in order to earn a better chance at parole. Expect disagreement about how to view Gold Coats--as killers, as caregivers, or as both. The final question explores the larger question of whether altruistic behavior can redeem the past, in our own lives and in the lives of others.

Case Study 3.2: Mural, Mural on the Wall: The Fight‟s Not Over Case Synopsis and Analysis In San Francisco, liberals are battling liberals over how whether or not to remove a mural at the city‟s George Washington High School. Thirteen frescoes, critical of the nation‟s first president, show Washington as slave holder who promoted mistreatment of native Americans. Three of the panels depict Washington‟s slave, a Native American carrying a scalp, and a dead Native American at Washington‟s feet. Bowing to pressure, the San Francisco school board opted to paint over the panels, which sparked a storm of protest from those who claimed that doing so was a form censorship that would destroy a valuable piece of depression era art. The school board then decided to cover up the panels. Both sides were disappointed with the compromise and vowed to fight on.

This case demonstrates the power of shared narratives, illustrating that history is never entirely in the past. It also raises important questions about the purpose of art and how to balance competing values.

Learning Objectives 

Students will recognize the power of shared narratives.

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Students will take the perspective of students at the high school.

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Students will identify the competing values reflected in controversies surrounding art.

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Students will evaluate the school board‟s attempt to resolve the dispute.

Discussion Guide Students will likely have differing views of the mural—some considering it an attack on racism, others believing it reinforces racist messages. Probe to see if students think that the meaning of the story told by the panels has changed over time and how. Have class members put themselves in the place of Native American and African-American students at Washington High School.

(They likely will find the panel offensive.) Consider if saving the mural really does put art over people and if art should make us uncomfortable. You could ask for a show of hands (or polling results if on line) to determine who sides with the school board‟s decision to cover up the artwork. Ask those who agree and disagree with the decision to provide justification for their choice.

Case Study 3.3: “Notorious RBG”: Supreme Court Justice as Cultural Icon Case Synopsis and Analysis Supreme Court Justice Ruth Bader Ginsburg is a cultural icon, with her owlish glasses and lace collars appearing on tattoos, t-shirts, Valentines and greeting cards. Some refer to her as “Notorious RBG,” drawing a humorous and admiring contrast between the small Jewish

grandmother in her 80s and the 300-pound dead rapper Notorious B.I.G. RBG is a hero to many who object to recent court rulings. She is the most outspoken and prominent liberal on the court, which has shifted to the conservative right.

Ginsburg‟s life has been marked by a series of challenging passages. Her mother died the night before her high school graduation. She cared for her husband while finishing at the top of her law school class. RBG faced gender discrimination in college and as a professor. Later, she became only the second woman to be appointed to the Supreme Court. Over the years, Justice Ginsburg has battled pancreatic, colon, and lung cancer.

Though long past traditional retirement age, Ginsburg is committed to remaining on the bench as long as she can in order to promote equality under the law. She rarely misses a court session despite undergoing cancer treatments.

Learning Objectives  Students will examine the role of passages in promoting character growth.  Students will identify Justice Ginsburg‟s character traits.  Students will apply Ginsburg‟s example to their own character development.

Discussion Guide Some students may not be familiar with Ginsburg, despite her popularity. You might want to show her picture as well as examples of how her image appears in a variety of settings. Ginsburg overcame a series of life passages that might have proved insurmountable to others. Consider why she was able to grow from these challenges and how passages can promote our character development. Then ask students to identify the character traits, such as persistence, courage, compassion, wisdom and justice, they see in Ginsburg, and what we can learn about character development from her example.

Case Notes Chapter 4: Ethical Interpersonal Communication Case Study 4.1: Online Confirmation Case Synopsis and Analysis Dr. Modi is an experienced college professor known for creating a warm classroom atmosphere where students feel valued. She appears genuinely interested in student comments, makes an effort to learn the names and interests of all her students, and employs a variety of teaching strategies. Class members engage with each other and with the course material. Professor Modi was on sabbatical when courses went to online platforms during the COVID-19 pandemic. Now she must convert one of her courses to an online format. She is worried that her strengths as a traditional classroom instructor will not translate to the online environment. She wonders how she can create a warm atmosphere and communicate respect for class members when interacting electronically. Modi invites a small group of students to give her advice about what works and doesn‟t work in online courses.

Learning Objectives  Students will identify the characteristics of successful and unsuccessful online courses from their own experiences.  Students will recognize the link between confirmation and successful classroom experiences.  Students will outline strategies for confirming the value of students online.  Students will describe disconfirming online behaviors.

Discussion Guide Nearly all students have first-hand experience with online courses so they should have plenty of thoughts about what makes for a successful or unsuccessful online experience. Have them serve as the students advising Dr. Modi. Be sure to focus on the role of connection and engagement in creating effective online classes. Participants should identify specific confirming strategies (prompt responses, detailed assignment feedback, supportive comments) as well as disconfirming strategies (delayed feedback, minimal interaction with the group) that apply to online courses.

Case Study 4.2: Unfairly Taking the Blame Case Synopsis and Analysis Dave, an executive at a regional sandwich chain, has unfairly blamed his colleague Tom for the failure of a new location. Feeling betrayed, Tom decides to confront his fellow executive.

The case asks students to respond to a case of trust betrayal and to reflect on their responses to similar incidents.

Learning Objectives 

Students will practice strategies for coping with trust betrayal based on chapter concepts.

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Students will examine their own responses to trust betrayal and, if needed, develop more effective strategies.

Discussion Guide This case can be acted out with students playing the roles of Tom and Dave. (Feel free to change the names and gender of the two characters for the role plays.) Have the rest of the class evaluate the interaction. As an alternative, discuss the case as a large group. In either option, emphasize the importance of employing the ethical communication skills discussed in the chapter during

this encounter. Tom needs to be mindful, listen, try to confirm his colleague, and employ emotional intelligence. Ideally, Dave will do the same. After analyzing this interaction, ask students to reflect on their personal experiences with betrayal.

Case Study 4.3: Three Performance Reviews Case Synopsis and Analysis Joanna Sorensen, who oversees a new employee program at a small accounting firm, has completed performance evaluations for three recent hires. She is scheduled to meet individually with each one to provide positive feedback as well as constructive criticism. The case requires students to analyze the upcoming encounters, offering guidance to Joanna as well as to the three new employees.

Learning Objectives  Students will highlight the perspectives and goals of each of the participants.  Students will describe the positive and negative feedback to be provided in the performance reviews.  Students will identify the responsibilities of feedback recipients.  Students will determine the successful outcomes of providing and receiving feedback.

Discussion Guide This case draws on material from the last section of the chapter. The discussion questions ask students to consider the perspectives and goals of the participants as well as threats to the identities and self-concepts of the new hires. Class members should be able to identify specific positive and negative feedback for Joanna to provide to each of the new accountants. Don‟t overlook the ethical responsibility of the probationary employees. They have an obligation to learn from Sorensen‟s feedback and to contribute to an ethical outcome for the review. Remind

students that feedback is a special form of dialogue where both parties collaborate to ensure success. Get their thoughts on how they would define a successful performance review.

Case Notes Chapter 5: Exercising Ethical Influence Case Study 5.1: Moving Beyond Empowerment at Morning Star Case Synopsis and Analysis Morning Star, the world‟s largest tomato processor, claims to go beyond empowerment by eliminating managers altogether. Every worker is responsible for creating a personal mission statement that furthers the corporate mission statement. Each employee negotiates an annual Colleague Letter of Understanding (CLOU) with close associates. This agreement spells out relationships, outlines metrics for tracking progress, and serves as the basis of peer ratings that determine compensation. Employees are free to purchase tools and hire staff without the approval of senior executives and ideas come from anyone in the company. Business units provide annual performance reports to other units. The company promotes transparency by providing detailed financial statements to all employees.

Self-management at Morning Star encourages workers to take initiative and to develop their expertise. Nonetheless, it takes new workers a significant amount of time to adjust and the system breaks down if colleagues fail to confront poor performers. Self-management experiments have failed at other businesses and may not work in very large corporations.

Learning Objectives 

Students will analyze the self-management system at Morning Star.

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Students will identify the ethical benefits and dangers of self-management.

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Students will determine if self-management is a feasible model for other organizations.

Discussion Guide Some might be enthusiastic about working at Morning Star; others might find it hard to work there. Broaden the discussion to identify the merits and demerits of self-management, whether there is value in retaining some management positions, and whether self-management is a viable option for large organizations like Apple, Pepsi, CitiBank, and McDonalds. Conversion to a selfmanagement model may not work elsewhere but, as the case notes, some of the Morning Star‟s strategies could be incorporated into more traditional organizations.

Case Study 5.2: How to Win Friends and Influence People While Stealing Billions Case Synopsis and Analysis Low Taek Jho (better known as Joh Low) looted billions from Malaysia‟s 1MBD development fund. Low used his networking skills and image to carry out his thefts, building a relationship with Malaysian Prime Minister Najib and drawing on his contacts in the Middle East. Low then used his stolen funds to further burnish his image as one of the world‟s richest, most powerful men. He became a major player in the U.S. entertainment industry, purchased expensive properties and artwork, gambled heavily, showered gifts on friends, and threw lavish parties.

Low faces a variety of criminal charges and much of his property was seized by authorities. He is currently on the run from the law while denying any wrongdoing.

Low succeeded in large part because those who benefited from his scam let themselves be fooled. After all, they were getting what they wanted from the young criminal mastermind.

Learning Objectives 

Students will identify examples of unethical impression management.

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Students will determine the moral responsibility of those who are deceived by unethical impression management.

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Students will develop strategies for protecting themselves from those who use unethical impression management.

Discussion Guide As the case notes, many observers were puzzled that Jho Low, young and inexperienced, could carry off such a gigantic fraud. See if class members share that view. Then solicit examples of others, like Bernie Madoff, who have created false images to defraud others. (Google “Ponzi schemes” to get more examples to supply to the class. The television show American Greed also profiles a number of fraudsters.) Many apparently wanted to be fooled by Low because they benefitted from his generosity. Evaluate the culpability of those who were deceived by Low as well as victims of other frauds. Conclude by developing a set of strategies for protecting ourselves from those who project false images for unethical and illegal ends.

Case Study 5.3: “No One Calls to Say „I Love You‟”: Emotional Labor at the Call Center Case Synopsis and Analysis Customer service representatives at large call centers engage in more emotional labor than personnel in other service occupations. They interact more frequently with the public and must do their emotional work through their voices, all while being closely monitored. Worse yet, they are more likely to encounter dysfunctional customers because callers generally have a problem with a product or service. (As one employee put it, “No one calls to say, „Hey, I love you.‟”) In hopes of improving service, cable giant Comcast built a call center with such amenities as a quiet room, a movie theater, a gym, and a fish pond with a fire pit. Comcast employees like

their new facility but management experts believe that a better workspace won‟t be enough to boost customer service given that representatives have little authority to fix problems and still deal with “customers from hell.”

Learning Objectives  Students will identify the demands of service work at call centers.  Students will analyze their experiences with service representatives.  Students will avoid dysfunctional customer behaviors.  Students will develop strategies for reducing demands on emotional laborers.

Discussion Guide Highlight the special emotional demands placed on call center operators and take examples of other highly demanding emotional labor, like working in crowded restaurants and bars. Any who have worked at call centers can confirm if their experience was similar to that described in the case. See if anyone has recently called a center for help and have them describe their interactions. Students may be willing to admit if they engaged in dysfunctional customer behaviors. (If you, like the author, are guilty of occasionally behaving this way, you can admit this to the class.) Evaluate the likely impact of Comcast‟s new facility on customer service. Refer to the chapter material for a list of steps that organizations can take to reduce the damage done to employees by emotional labor. These can be adapted to the call center setting.

Case Notes

Chapter 6: Ethical Conflict Management Case Study 6.1: A Tale of Two (Un) Apologies Case Synopsis and Analysis This case examines two notably poor examples of apologies. The first was offered by United Airlines CEO Oscar Munoz after airport police violently removed a ticketed passenger from a flight. Munoz blamed the passenger at first. Later, he took full responsibility, vowed to make procedural changes, and reached out to the passenger. The second apology was offered by Navy Secretary Thomas Modly after he fired the captain of the Naval aircraft carrier, Theodore Roosevelt, during the COVID-19 pandemic. On a visit to the ship, Modly called the commander “naive” and “stupid.” Modly initially “stood by every word” but hours later tried to retract his comments, offering a vague, confusing statement. The Naval Secretary then resigned.

Learning Objectives 

Students will identify similar shortcomings in the apologies offered by Munoz and Modly.

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Students will offer suggestions for improving the two apologies.

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Students will reflect on their experiences with accepting and offering apologies.

Discussion Guide Probe to identify the weaknesses of these apologies based on the elements of complete (ethical) apologies described in the chapter—acknowledgement, remorse, explanation and reparation.

Solicit suggestions for improvement based on chapter material. Then focus on personal experiences with accepting or offering apologies. Doing so will demonstrate the relevance of ethical apologies both on and off the job. Students will likely differ on their responses to the final question, which asks if it is ever too late to apologize.

Case Study 6.2: Negotiating the Plant Reopening Case Synopsis and Analysis Brilliance Glass, which makes specialty colored glass products, is the largest employer in its small Nebraska community. Recently, state and federal officials discovered that the plant was releasing dangerous levels of cadmium, arsenic, and other toxic chemicals into the air. High levels of lead were found in the soil of a nearby day care center. Officials closed the plant and Brilliance installed a new pollution control system that should eliminate most of the toxic metal emissions.

The case asks readers to imagine they are heading up negotiations to reopen the plant as the company representative and identifies others participating in the negotiations. To prepare, students are asked to follow the steps of principled negotiation outlined in the chapter.

Learning Objectives  Students will develop their perspective-taking ability.  Students will demonstrate the ability to apply the steps of principled negotiation.

Discussion Guide This case is best discussed in small groups where all students are more likely to engage in answering the questions. After the groups have completed their work, call the class back together and debrief. Here are some suggested answers to each of the queries: 1. How can you encourage participants to take an integrative approach to negotiation?

All parties have an interest in seeing the plant reopen. Even the chair of the neighborhood association, who is most likely to oppose the reopening, probably recognizes that the plant is critical to the economic health of the town.

Point out that a win-win solution is possible, one that meets the needs of everyone coming to the table.

2. How might you separate the people from the problem?

There could be strong negative feelings. The neighborhood chair likely feels frightened; the mayor might be angry at government authorities for not monitoring emissions sooner.

You, as Brilliance‟s representative, may be frustrated that there is opposition to reopening even though your company has taken steps to address the pollution problems.

To separate the people from the problem, focus on the goal of the negotiation, which is to come to an agreement about reopening the plant, one that meets the concerns of all involved. Discourage finger pointing and blaming.

3. What are the interests of each party?

Brilliance representative—to reopen the plant but only if it can still generate profits.

State officials—to make sure the plant doesn‟t violate standards going forward.

Neighborhood chair—to keep neighbors (particularly children) safe.

Mayor—to keep citizens safe; to reopen the plant to revive the Husker economy; to keep the company from moving.

Regional tourism director—to reopen the plant to bring back tourists; to assure that pollution doesn‟t drive visitors away.

4. What possible solutions could meet the interests of all parties?

Keeping the plant closed would not meet the interests of the company or the regional tourist director. Opening the plant without assurances of curtailed emissions will not meet

the interests of the state officials, neighborhood representative, and perhaps, the mayor.

The best solution would assure that the plant reopens but operates safely. This would require regular monitoring according to mutually acceptable standards.

5. What criteria could be used to determine the terms of the final settlement?

State and federal standards should determine safe levels of emissions. A neutral third party could be appointed to regularly monitor the plant and to conduct soil tests. State officials could visit the plant to make sure that pollution controls are fully operational.

6. What ethical issues might arise during the negotiations and how might you deal with them?

The company might be tempted to lie about its pollution control steps, and the neighborhood representative might be tempted to exaggerate the danger posed by the plant. Negotiators could also use threats and other distributive tactics. Parties might overlook the fact that any decision could have a long-term impact on children, neighbors, local businesses, and other outside parties.

Case Study 6.3: The #MeToo Movement: Taking Sexual Harassment Seriously Case Synopsis and Analysis Following sexual abuse allegations against Hollywood producer Harvey Weinstein, actress Alyssa Milano encouraged women to use the #MeToo Twitter hashtag to reveal the extent of sexual abuse and harassment in the workplace. Millions of women around the world started using the phrase “MeToo” and a number of prominent men lost their jobs after being accused of sexual misconduct.

Prior to MeToo, sexual harassment on the job often went unpunished. Employers ignored the complaints of victims and often promoted the victimizers instead. Powerful men used nondisclosure agreements, where women accept payouts to keep silent, to hide their abuse. Now the complaints of victims are taken more seriously with states expanding sexual harassment protections to more women and banning non-disclosure agreements. The #MeToo movement has generated backlash, with some men reducing their close contact with women, making it harder for females to get certain jobs and to do their jobs.

Learning Objectives 

Students will evaluate the impact of the #MeToo moment on the workplace and society.

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Students will decide if nondisclosure agreements involving sexual abuse should be banned.

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Students will suggest additional steps to prevent sexual harassment.

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Students will develop strategies for preventing men from pulling away from women in the workplace.

Discussion Guide Begin by having students reflect on any changes (or lack of changes) in attitudes about sexual harassment and discrimination at their colleges and workplaces. Next, address the use of

nondisclosure agreements. Point out that such agreements do offer victims some benefits. They avoid unwanted publicity and lengthy court trials (which they could lose) while receiving compensation. See if the class members have any additional reforms they think would protect women from sexual harassment and if current punishments are enough to deter abusers. Address the #MeToo movement backlash. Some males in the class may fear that men will be falsely accused (which is rare). Some females may fear that their careers will be held back if men stop mentoring women and separate from their female coworkers. End by considering if the impact of #MeToo movement will soon fade or if the movement marks a permanent change in society and the workplace.

Case Notes Chapter 7: Leadership and Followership Ethics Case Study 7.1: Tech Worker Resistance Case Synopsis and Analysis A growing number of employees are publicly protesting their companies‟ actions and policies.

Tech workers are in the forefront of employee resistance. Employees at Microsoft, Google, Amazon, Facebook and other firms have protested contracts with big oil firms and the military, sexual harassment procedures, and cooperation with immigration authorities and the Chinese government. Tech followers are following the example of tech leaders who have taken moral stands on social issues. Employees also feel betrayed by tech companies who claim to be a force for global good. So far, the tech resistance movement has generated mixed results, with companies only dropping some controversial contracts.

Tech activism appears to signal a fundamental shift in the relationship between workers and their firms. Tech companies are not the “families” that tech leaders have claimed. Tech employees have different interests than management.

Learning Objectives 

Students will recognize the influence of followers.

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Students will decide how much input employees should have in setting company policies and strategies.

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Students will determine how companies should respond to employee protests.

Discussion Guide This case illustrates the importance of followership ethics. More employees are objecting to the actions of their firms based on ethical grounds. Probe to see what types of issues would prompt students to protest. Discuss the role of employees in shaping company strategy. Determine how firms should respond to employee activism. Gather their thoughts on the future of employee resistance in every sector of the workplace. Some experts suggest that the influence of followers will continue to grow. Participants may not agree, arguing that the power of political and business leaders is greater than ever.

Case Study 7.2: Power, Wealth, and the Sexual Predator Case Synopsis and Analysis Jeffery Epstein demonstrates how concentrated power corrupts leaders and those around them.

The disgraced financier used his power and wealth to engage in sex trafficking, paying underprivileged, underage girls to perform sex acts. Epstein was convicted of soliciting sex from a minor in 2008 but received a “sweetheart deal,” serving a short sentence that allowed him to go

to his office. Following his conviction, the financier (now a sex offender) continued to network with scientists and celebrities while making donations. In 2018, New York authorities opened a new investigation of Epstein, seizing thousands of photos of semi-nude and nude women and underaged girls from his apartment. Epstein was jailed on sex trafficking charges but killed himself in his cell.

Though dead, the damage Epstein did lives on. His victims are still dealing with the trauma. His celebrity friends were forced to deny that they engaged in sex while visiting Epstein on his island. His longtime girlfriend, accused of procuring his victims, maintains her innocence.

Alexander Acosta, the Secretary of Labor who arranged Epstein‟s plea deal, was forced to resign. M.I.T. apologized for accepting donations from the financier. Critics note that Epstein‟s case once again demonstrates that justice is weighted in favor of the powerful.

Learning Objectives 

Students will recognize that power corrupts.

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Students will analyze the responsibility of followers and colleagues for facilitating Epstein‟s crimes.

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Student will identify reforms for ensuring equal justice for the powerful and powerless.

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Students will evaluate the response of Harvard and M.I.T. to Epstein‟s donations.

Discussion Guide In discussing the case, be sure to identify who was corrupted by Epstein‟s power and influence.

This includes: --his victims --celebrities, including Prince Andrew and Alan Dershowitz

--Ghislain Maxwell --Alexander Acosta --M.I.T. --physicist Robert Lloyd After identifying who was corrupted, then address the responsibility that these individuals and institutions, as well as others, had for facilitating Epstein‟s crimes. While reforming the justice system is beyond a brief class discussion, at least consider how justice can be made more impartial. Harvard and M.I.T. responded very differently to Epstein‟s generosity. Poll the class to see who believes that Epstein‟s donations should be returned. Broaden the discussion to consider if any college or other nonprofit should accept a donation from a convicted criminal.

Case Study 7.3: Rosalynn Carter: Partner in a Lifetime of Service Case Synopsis and Analysis Former Presidential couple, Rosalynn and Jimmy Carter, are dedicated to service. They founded the Carter Center to foster world peace and to help eradicate diseases in developing countries.

Each year, the Carters spend a week on a Habitat for Humanity building project. Rosalynn also pursues her own humanitarian projects involving mental health, the elderly, and childhood immunization, which she has done since Jimmy was Georgia governor and then President. Most recently, she started the Rosalynn Carter Institute for Caregiving that assists those providing care for the elderly. Rosalynn has been honored with a number of awards for humanitarian service, including the United States Presidential Medal of Freedom.

Rosalynn‟s commitment to serving others stems from having to take care of her younger siblings when her father died, observing the mental disabilities of two of Jimmy‟s cousins, and

seeing the struggles of her mother-in-law Lillian Carter. She believes that her faith in God requires her to help. In their 90s, the Carters are the longest-married presidential couple. Both have serious health problems. They are committed to service despite their declining health, claiming they have more work to do.

Learning Objectives 

Students will recognize the servant leadership attributes of Rosalynn and Jimmy Carter.



Students will identify the characteristics of authentic leadership in the Carters.



Students will examine the motivations for servant leadership.

Discussion Guide Rosalynn and Jimmy Carter are exemplars of servant leadership. Make sure that students recognize their servant attributes based on material in the chapter. The Carters are (1) person centered, (2) concerned with equity and justice, (3) of high character, and (4) stewards who work tirelessly on behalf of others, encouraging followers to do the same. Rosalynn and Jimmy are authentic leaders as well. They demonstrate high self-awareness, internalized moral perspective, and relational transparency (even sleeping in a dorm on work projects). Highlight these elements as well as the trigger events in Rosalynn‟s life. Religious faith is a strong motivating factor for Rosalynn. With the class, speculate as to other factors, such as empathy, past experiences, friendships, and causes that motivate leaders to care for and to serve others. Identify additional examples of couples who have dedicated their lives to service. Participants may know of such couples working in religious organizations (husband/wide pastor teams, missionaries), and nonprofits (founders of hunger and environmental organizations, married residence hall directors). Some students might have parents who dedicate themselves to service through their work and volunteer efforts or by acting as foster parents.

Case Notes Chapter 8: Improving Group Ethical Performance Case Study 8.1: From “Dream Team” to Nightmare Case Synopsis and Analysis The Philadelphia Eagles of the National Football League put together an impressive roster of well-known football players in 2011, determined to win their first championship since 1960.

Signing so many star players created a frenzy of excitement before the season began,

culminating in one of the players declaring that they were the new “Dream Team.” However, Eagles players were more focused on their individual achievements than on team success. They lacked the team chemistry so essential to high performance. When the team hit adversity, it folded under pressure. Stories emerged about friction in the locker room, of players eating alone in their cars rather than joining their fellow players in the cafeteria. Players began pointing fingers at one another for losses.

Following two unsuccessful seasons, the “Dream Team” was disbanded. Players were released or traded and the long-time head coach was fired. A team with great potential on paper failed to live up to its billing, and the Eagles entered a rebuilding period.

Learning Objectives Students will analyze the role of team chemistry in group formation and performance. Students will recognize the importance of taking personal ethical responsibility in group settings. Students will identify group ethical danger signs in the Eagles team.

Discussion Guide This case provides an opportunity for students to discuss individual responsibility in creating team chemistry and success, as the Eagles demonstrate what happens when members fail to cooperate, to do their fair share or to support one another. While confidence is an important factor for organizational success, it cannot take the place of adequate planning, hard work, and collaboration in pursuit of a shared goal. The Philadelphia Eagles hoped to rest on players‟ laurels rather than work to create a dominant team. Players put individual statistics above winning. Encourage students to share their definitions of “team chemistry” and its role in group performance. Have them outline strategies for preventing teams (including their own groups) from becoming overconfident. Finally, highlight specific ethical pitfalls that victimized the team.

The Eagles seemed to swing from convergence to divergence, engaging in groupthink at first and

then diverging into polythink, unable to agree on how to solve their problems. The 2011 Eagles also used defense mechanisms, looking for someone else to blame.

Case Study 8.2: Navy SEALs: Breaking the Code of Silence Case Synopsis and Analysis Recent scandals have tarnished the image of Navy SEALs as American heroes. Members of this highly selective fighting group have been accused of murder, sexual assault, drinking on the job, and snorting cocaine while cheating urinalysis tests. In a case that made national headlines, Navy SEAL Commander Eddie Gallagher was charged with war crimes for shooting at unarmed civilians and for killing a teenage ISIS prisoner and then posing with his corpse. Gallagher was acquitted of the murder charges but was convicted of posing with the body. President Trump then pardoned the commander.

Observers blame the scandals on several factors, including long deployments, arrogance, and SEALS out to cash in on their fame. Reforming the SEALs ethical culture will prove difficult. Those who speak up about misconduct face retaliation for breaking the SEAL brotherhood‟s code of silence. They could jeopardize their careers and be branded as traitors.

Members of Gallagher‟s team spoke out despite the dangers, breaking the code of silence even when the Navy initially ignored their testimony. Those who testified model the willingness to stand alone, the toughest individual moral responsibility to fulfill.

Learning Objectives 

Students will identify factors contributing to the ethical breakdown in SEAL units.



Students will create strategies for helping SEALs honor their pledge to avoid recognition for their actions.

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Students will suggest policies for encouraging members of elite fighting groups to break the code of silence.



Students will identify signs of groupthink in SEAL teams.

Discussion Guide Examine the factors that may have led to the ethical breakdowns. In particular, some SEALS want to benefit from their service though they pledged not to seek recognition. As a class, speculate as to why SEALs now focus on individual achievement instead of group achievement.

Point out the encouraging members to stand alone is important for all groups, not just for groups faced with scandal. Have students identify signs of groupthink in SEAL teams, like the illusion of invulnerability, self-censorship, belief in the inherent morality of the group, and pressure on dissenters. Note that SEAL teams have a heightened risk of groupthink since they are highly cohesive, are often isolated from other groups, and operate under highly directive leaders.

Case Study 8.3: To Loan or Not to Loan?

Case Synopsis and Analysis Bank loan officer Harry Edwards must decide whether to loan an additional US$200,000 to a local grocery store for a renovation. The storeowners, who are behind on their payments on the initial US$600,000 loan, are convinced that the additional money will ensure completion of the project and generate much higher sales. (This will enable them to repay the bank.) However, a new superstore is opening in a nearby town. Complicating the decision is the fact the bank promotes relational banking based on establishing close bonds with customers. Students are to make a recommendation to Harry.

Edwards and the bank are in danger of following victim to the escalation of commitment.

Bank officers will lose their initial investment if the store doesn‟t finish its renovation. They are

tempted to take on more risk in hopes of recouping their losses and maintaining a relationship with the storeowners. Yet there is no guarantee that the renovation will generate enough money to repay the loan. A larger loan could mean greater losses.

Learning Objectives 

Students will identify factors leading to escalation of commitment.



Students will determine if additional funding is justified and defend their stance.

Discussion Guide There is no right or wrong answer to this dilemma. The bank could suffer if it doesn‟t make the loan. The grocery will probably fail and the bank will be out its original US$600,000 investment.

(Its relational reputation would take a hit as well.) On the other hand, there is high likelihood that loaning additional funds would be a case of “throwing good money after bad.” The bank would be out US$800,000 instead of US$600,000, further damaging its loan portfolio and financial standing. To heighten student engagement with the case, designate one side of the room for those who would approve the loan and the other side for those who would refuse the request. Have those standing on each side defend their position.

Case Notes

Chapter 9: Building an Ethical Organization Case Study 9.1: Making Ethics Matter at Tata Steel Case Synopsis and Analysis India‟s Tata Steel, one of the world‟s largest steel makers, takes ethics seriously. The firm sponsors an annual ethics month, honors reputation champions, publicizes code violations and disciplinary actions, and engages in a wide variety of social programs in local communities. The firm‟s ethical commitment can be traced back to its founder, Jamsetja Tata, who believed that business should serve society and uphold high ethical standards. Current company leaders are committed to continuing the founder‟s ethical legacy despite some moral missteps. Jamsetji Tata‟s values and ethos appear to be embedded in the firm‟s DNA. Learning Objectives 

Students will recognize the characteristics of an ethically transformed organization in Tata Steel.



Students will evaluate Tata‟s strategies for promoting ethics and whether they could be applied at other organizations.

Discussion Guide Tata Steel is an example of a value centered, ethically transformed organization. Have students identify the characteristics of ethically transformed organizations they see at Tata. Drill down to analyze elements of Tata‟s ethics efforts, addressing its ethics month, treatment of code violations, and efforts to brief families on the company‟s code of ethics. Determine if these strategies would be effective in other companies and organizations in other cultures.

Case Study 9.2: No Good Deed Goes Unpunished: Failing to Live Up to Corporate Values at U.S. Bank Case Synopsis and Analysis Minneapolis based US Bank violated its “people-first” corporate vision and values on Christmas Eve 2019. Portland Oregon call center employee Emily James drove to a local service station to give $20 to a bank customer so he could buy gas to drive home. For two days, the bank denied access to the customer‟s account and he was unable to buy presents for his son and daughter.

Instead of honoring James for her generous act, US Bank officials fired her as well as the supervisor who approved her rescue mission, claiming they had violated company policy and put the bank at unnecessary risk.

Initially US Bank defended its decision to fire James. After national and international outrage, the CEO then stepped in. He apologized, declaring “this is not who we are.” He offered to hire back both the supervisor (who accepted) and James, who took a position at another financial institution instead.

Learning Objectives 

Students will recognize the importance of living up to corporate values.



Students will develop strategies for bringing bank policies in line with corporate values.

Discussion Guide This case demonstrates that damage caused by not living up to corporate values. Massive size, bureaucracy and other factors make it difficult to live up to these commitments in every situation. Note, if students don‟t, that delivering the money to the customer could have endangered James (she might have been kidnapped or gotten into an accident). The company could have been held liable if anything happened to her. As an alternative to delivering the cash, a small amount of money could have been released to the customer‟s account to enable him to

buy fuel and make it home. In the future, the bank should empower employees to solve problems like the one faced by the customer. Like James, students might refuse to return to their jobs at US Bank after this incident.

Case Study 9.3: Striking Out: How the Astros‟ Culture of Success Became a Culture of Dysfunction Case Synopsis and Analysis The Houston Astros saw a meteoric rise to success, going from the worst team in Major League Baseball to World Series champions after only four years. Yet, as the team achieved great success on the field, it was developing a negative reputation around the league. The first major sign of dysfunction involved a rant by the team‟s assistant general manager. He celebrated the acquisition of a player who had been suspended for alleged domestic violence in front of a group of female reporters. It took intense public criticism to force the club to fire the official. Shortly after this incident, the Astros were accused of illegally stealing signs by using technology. Video evidence confirmed the accusations, and Major League Baseball declared the team guilty. Still, the team‟s owner seemed to show little remorse, refusing to acknowledge that the cheating had any effect on the team‟s success.

Learning Objectives  Students will analyze the role of winning and losing in organizational ethics and success.  Students will recognize the factors that contributed to the Houston Astros‟ dysfunctional culture.  Students will identify the steps the team should take in order to regain trust and repair its reputation.

Discussion Guide

Sports hold a major place in cultures across the globe. At the core of all major sports is the desire to win, and a team‟s success is directly measured by its wins and losses. The metaphor of winning and losing translates into the corporate environment as well, as organizations aim for monetary success, often comparing themselves with their competitors. Students quickly understand the analogy of sports with business and organizational leadership, and this case provides a good opportunity for examining those connections.

The Astros pursued success at the expense of culture and reputation. Discuss the importance of an ethical organizational culture and the steps the Astros need to take to create a more ethical culture. Ask students if they can think of other organizations that have had great success despite questionable tactics. Poll the class about whether or not the Astros are a story of success or failure. Have students debate both sides of the argument.

Case Notes

Chapter 10: Managing Ethical Hot Spots in the Organization Case Study 10.1: Marketing the Opioid Epidemic Case Synopsis and Analysis Purdue Pharma played a major role in triggering the nation‟s opioid epidemic. The company, owned by the Sackler family, aggressively marketed Oxycontin through funding favorable research studies, paying physicians to promote the drug, advertising in medical journals, giving out promotional items, and distributing promotional videos. Sales representatives told general practitioners that the addiction rate for patients taking Oxycontin was less than one percent, when it was actually much higher. Soon Oxycontin was generating a billion dollars a year for Purdue.

Users crushed Oxycontin pills and snorted them to get a powerful high. Patients began selling their pills and some doctors set up “pill mills‟ to profit from issuing OxyContin prescriptions. Despite evidence of abuse, Purdue didn‟t withdraw the Oxycontin from the market. Instead, it replaced the original Oxycontin pill with a new version that can‟t be ground up and appears to be ramping up its efforts to market the drug overseas using the same tactics. In 2007, the company pled guilty to criminal charges for its deceptive marketing. Purdue Pharma and the Sacklers currently face thousands of lawsuits. A number of museums and colleges are now refusing gifts from the Sackler family. Nevertheless, few institutions will return previous donations or take the Sackler name off of any donated building.

Learning Objectives 

Students will evaluate the marketing tactics of Purdue Pharma.



Students will identify common unethical marketing techniques.



Students will determine the consequences that Purdue Pharma and the Sackler family should face for their role in sparking the opioid epidemic.

Discussion Guide Purdue Pharma violated a number of ethical principles and standards outlined in section one of the chapter. You may want to focus on how the company violated one set of guidelines— honorable influence, the AMA Code of Ethics, or marketing virtues. Note that companies use similar strategies in marketing other questionable products—solicit suggestions about proper punishment for Purdue and the Sacklers. Most will likely agree that nonprofits should refuse future donations from the Sackler family; fewer will argue that these organizations should return previous donations.

Case Study 10.2: Accounting/Finance Ethics Scenarios Case Synopsis and Analysis The three scenarios all involve pressure to set aside personal and professional integrity for personal or company benefit. Readers are asked to evaluate the actions of the main characters using the Association of Independent Certified Public Accountants (AICPA) and Certified Financial Analyst (CFA) professional standards.

In each scenario, the protagonist makes a decision that violates widely held professional guidelines.

Learning Objectives 

Students will apply professional standards to evaluate the actions of finance professionals.



Students will identify the possible costs of violating professional standards.

Discussion Guide Be sure that students tie their judgments to particular code provisions. In all three scenarios, the main characters violate principles of integrity; fail to act in an ethical manner or exercise wise moral judgment. The protagonists benefit at the expense of outsiders—investors, the public, potential buyers and clients. Call on participants to identify the possible negative long-term consequences of these decisions for the actors as well as for their organizations.

Case Study 10.3: Google‟s Shadow Workforce Case Synopsis and Analysis Over half of Google‟s workforce is made up of temporary workers, vendors and contractors (TVCs). As the company‟s “underclass” or “shadow workforce,” TVCs make significantly less than full-time employees and don‟t have paid health insurance, retirement plans and parental leave. They may be reluctant to complain about sexual harassment and other mistreatment because they hope to be hired on full time.

Other tech giants also rely heavily on temp workers in order to save money. Officials are careful not to treat TVCs like full time employees, lest contractors fall under the same legal protections as traditional workers. Both full time and temporary employees are challenging Google‟s treatment of its shadow workforce, with 20,000 participating in a walkout. TVCs want Google to respect their humanity and to allow them to become full time employees. The firm responded to the protest by improving working conditions for TVCs, raising their pay and pledging to offer benefits by 2022. However, organizers of the walkout say more needs to be done to end the two-tier system at the company.

Learning Objectives  Students will evaluate the treatment of temporary employees at Google using principles and standards for ethical human resource management.  Students will outline tactics for protecting temporary workers and encouraging tech companies to hire more full-time employees.

Discussion Guide Many in the group may be taken back at Google‟s reliance on temporary workers given the company‟s reputation as a model employer. Google‟s treatment of TVCs appears to be exploitive and unjust (Question 4), violating Kantian principles, the SHRM code, and principles of justice.

Brainstorm a list of actions that could protect temporary workers from abuse and encourage big tech companies to hire more full-time employees. However, firms are likely to resist, wanting to keep their costs down and their stock prices up.

Case Notes Chapter 11: Promoting Sustainable Organizational Citizenship Case Study 11.1: A New Kind of Capitalism Case Synopsis and Analysis Two of the world‟s most influential business organizations, the Business Roundtable and the World Economic Forum, recently declared that corporations exist to serve the needs of stakeholders, not to make money for those who own stock in the company. In stakeholder

capitalism, companies serve not only shareholders but employees, customers, suppliers, local communities and society as well.

Business leaders are responding to growing pressure on business to act more responsibly.

They are reacting to attacks on capitalism for (1) focusing on short term profits at the expense of employees, sustainability and the environment; (2) exorbitant executive pay; and (3) growing income inequality. More young Americans prefer socialism to capitalism.

Skeptics doubt that members of the Round Table and World Economic Forum will back their commitment to stakeholder capitalism with concrete action. Wealthy executives appear unwilling to sacrifice any of their wealth or to change the status quo which benefits them.

Learning Objectives 

Students will reflect on their attitudes toward capitalism.



Students will evaluate the strengths and weaknesses of stakeholder capitalism.



Students will identify barriers to implementing stakeholder capitalism.

Discussion Guide Young Americans seem particularly disenchanted with capitalism. Determine if your group shares that view. Questions 2 & 3 encourage students to reflect on their current economic position and on whether they have lost faith in capitalism. If you have a mix of older and younger participants, you can compare the perspectives of both groups on these two questions.

Then evaluate stakeholder capitalism, determining if it addresses the weaknesses of shareholder capitalism. Consider whether business leaders will actually practice stakeholder capitalism given that doing so will call for sacrifice and changes to the status quo.

Case Study 11.2: Drowning in Plastic Case Synopsis and Analysis Plastic pollution is emerging as an important international environmental issue. Plastic creates a massive litter problem on land and it causes even more damage in the world‟s oceans, producing huge garbage patches and choking the marine creatures that mistake it for food. A number of nations, states and cities now ban single use plastics like grocery bags, straws, plates, cups and eating utensils. Such bans pose a threat to plastic manufacturers who employ close to a million people in the United States. Gas and oil producers want to supply new plastic petrochemical plans to make up for the reduced demand for petroleum products. Plastic makers complain about the patchwork system of bans currently in place.

Clothing may be the next battlefield in the war on plastic. Hundreds of thousands of synthetic plastic fibers are released in the average wash cycle and discharged into rivers and the ocean. Some fibers are recycled into our drinking water and food. Nonetheless, synthetic clothing is more affordable for less affluent consumers and organic clothes require huge amounts of water to produce.

Learning Objectives 

Students will identify their stance on plastic bans.



Students will recognize that plastic pollution is an emerging ethical issue.



Students will determine how the plastics and clothing industries should respond to plastic pollution

Discussion Guide The discussion questions ask students to reflect on their personal use of single use plastics, their attitudes towards plastic ban, and the effectiveness of such bans. Point out that the issue of plastic pollution appears to be moving to the consolidated and institutionalized stages of development described in the chapter. There is growing recognition of the problem, more businesses are responding to the issue, and governments are cracking down on plastic use.

Consider how the plastics industry should respond to the issue by, for instance, stepping up efforts to promote recycling and creating biodegradable plastic materials. Less attention is being paid to fiber pollution but the clothing industry should also manage this emerging issue. If it doesn‟t, the profits and reputation of clothing manufacturers will suffer. Clothing makers could develop fabrics that shed less, encourage washing machine manufacturers and sewage treatment plants to create filters that capture tiny fibers, and so on.

Case Study 11.3: Dick‟s Sporting Goods Takes a Stand Case Synopsis and Analysis Ed Stack, CEO of Dick‟s Sporting Goods, the nation‟s largest athletic retailer, decided to remove assault-type weapons and high capacity magazines in all company stores following the Parkland, Florida High School massacre in 2018. The retailer no longer sells firearms to anyone under age 21. Stack went a step beyond other CEO activists by laying out a set of specific steps for

government action, including, for example, a national ban on all assault weapons, raising the minimum age for gun purchases to 21, and stricter background checks.

Dick‟s gun stance cost it an estimated $300 million and the firm also destroyed $5 million worth of assault weapons that were in stock. Nevertheless, Stack stands by his decision, claiming the firm was acting on principle. The company‟s stock price and sales have since rebounded but gun supporters are furious with Dick‟s for its gun stance. Stack seems unfazed by the criticism, claiming that he is a “street fighter” who is willing to take on anyone.

Learning Objectives 

Students will decide if they support Stack‟s decision to limit gun sales.



Students will evaluate the fairness of restricting gun sales to 21 and older.



Students will identify expectations of CEO activists.

Discussion Guide Gun control is a controversial topic so take care that the discussion doesn‟t end up as a debate about gun rights. Instead, keep the focus on student response to Dick‟s decision to limit gun sales. Even those who support the company‟s restrictions may believe it is unfair to limit gun sales to those 21 or older. Question 5 looks beyond the Dick‟s gun stance to consider the future of CEO activism. Do students agree that CEO activists will have to follow Stack‟s lead, offering specific proposals for social change?

Case Notes

Chapter 12: Ethics in a Global Society Case Study 12.1: Leave Well Enough Alone?

Case Synopsis and Analysis The Sentinelese, who live on the Island of North Sentinel off the coast of India, are one of the remaining tribal groups who have little if any contact with modern society. These hunter gatherers are hostile to outsiders, shooting bows and arrows at visitors. The Indian government prohibits outsiders from coming near the island, fearing the tribe has no immunity to common diseases and that outside contact would destroy the group’s culture.

Young American Christian missionary and adventurer John Allen Chau hoped to evangelize the Sentinelese. He bribed local fishermen to take him to the island where he was killed and buried on the beach. Chau‟s friends and sponsoring mission organization called him a martyr but Indian government officials called him reckless. Even those sympathetic to evangelism were critical of his mission.

Chau‟s encounter with the North Sentinelese highlights the ethical questions raised by interaction with isolated cultures. Should they be left alone? Does initiating contact violate their right to determine their fate? Or is a hands-off approach outdated and paternalistic, denying isolated tribes the benefits of modern development?

Learning Objectives 

Students will evaluate Chau‟s mission to the North Sentinelese.



Students will determine if Chau violated the rights of the Sentinelese people.



Students will identify the risks and benefits of contact with isolated peoples.



Students will develop principles for guiding interaction with isolated tribal groups.

Discussion Guide Ask class members to judge Chau‟s trip to the North Sentinel Island, determining whether he was justified in breaking the law, whether he was ethnocentric, whether he violated the rights of the tribe, and whether he should be labeled as a reckless adventurer or as a martyr. The case serves as a platform for a broader consideration of the ethics of contact with any isolated cultural group. Identify the risks and benefits associated with such encounters. The class may be divided as to whether such groups should be left alone or brought into the global society. Create a list of principles to guide interaction with isolated groups. For instance: the tribe must initiate contact, don‟t put the group at risk for disease, strive to preserve tribal culture and so forth.

Case Study 12.2: Apple in China: Choosing Sides Case Synopsis and Analysis Apple has long been lauded for its consumer-friendly products and stellar customer service.

However, the company is between a rock and a hard place. On one hand, the company wants to maintain its positive public reputation. On the other hand, the firm, like many other corporations, recognizes the massive market share represented by China. This tension between reputation and maintaining good relations with the Chinese government comes through in this case, which focuses on the company‟s handling of the HK Map Live app. This program was designed to help citizens of Hong Kong track the locations of police activity and protests during massive demonstrations against the Chinese government in 2019. The Chinese government demanded that Apple remove the program from its app store, claiming that is was being used by activists to organize protests. Apple disabled the app, only to reopen it later after pressure from western critics. The incident is the latest in a series of China-related controversies for the company.

Apple continues to lose market share in China and appears caught between maintaining its integrity and appeasing China‟s communist leadership.

Learning Objectives  Students will recognize the complexity involved in international ethical business decisions.  Students will apply ethical guidelines and the HKH model to a real-world case.  Students will determine the appropriateness of Apple‟s response to governmental and consumer pressure.

Discussion Guide It takes a lot of work for companies to gain—and maintain—a positive reputation among consumers. At the same time, in order to expand to international markets, organizations need to become increasingly adept at navigating cultural expectations, rules, and norms. This case highlights those complexities. Focus on the ethical standards and guidelines from the chapter that can help resolve cross-cultural ethical conflicts like the one faced by Apple. Put the steps of the HKH model, designed for use by corporations in cross-cultural settings, on the board or on a computer screen. Assign groups to apply the HKH model to determine if Apple made the right ethical decision when pulling the app or when it reopened HKMapLive for download.

Case Study 12.3: Scenarios for Analysis Case Synopsis and Analysis These four scenarios highlight cross-cultural ethical issues. They are drawn from a variety of cultural settings and organizational contexts. Each scenario poses an issue to be resolved using material from this chapter as well concepts drawn from previous chapters.

Learning Objectives

 Students will apply cross-cultural ethical concepts to ethical diversity issues.  Students will defend their decisions based on text material.

Discussion Guide The scenarios can be discussed in class or completed by individual students as a graded assignment. (See Application Exercise 12.11.) In either case, class members should explain and defend their decisions based on material from the chapter, such as cosmopolitanism, universal ethical principles, and cross-cultural ethical decision-making models. Encourage students to also draw upon other concepts from the text when making their determinations. For example: ethical perspectives, decision making formats, character, stakeholder theory, ethical human resource management, organizational citizenship.