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Chapter01–EthicsandBusiness
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IMChapter1:
EthicsandBusiness
ChapterObjectives
Afterreadingthischapter,youwillbeableto:
1.Explainthreelevelsatwhichethicaldecisionsgetmadeinbusiness.
2.Explainthenatureofbusinessethicsasanacademicdiscipline.
3.Explainwhyethicsisimportantinthebusinessenvironment.
4.Explainwhyethicalresponsibilitiesgobeyondlegalcompliance.
5.Distinguishtheethicsofpersonalintegrityfromtheethicsofsocialresponsibility.
6.Distinguishethicalnormsandvaluesfromotherbusiness-relatednormsandvalues.
7.Describeethicaldecisionmakingasaformofpracticalreasoning.
OpeningDecisionPoint-WellsFargo
TheWellsFargocasecanbeusedtointroducearangeoftopicsthatwillemergethroughoutthisbook.Thecaseinvolvesdecisionmakingatanumberoflevels,fromindividualentry-levelemployees(likemanyofourstudents),tobranchmanagers,tomid-levelmanagement,seniorexecutives,andtheboardofdirectors.Agooddiscussioncanbegeneratedbyaskingstudentstoassignresponsibility,bothintermsofwhoisatfault(whoisaccountable?)andwhatcouldbeonetopreventitfromre-occurring(whatcausedit?).
Thesediscussionscaneasilyleadintothedecision-makingmodelthatwillbeintroducedlateinthechapter.Whatfactswouldbehelpfultomakethesejudgmentsofresponsibility?Whatfactswouldchangeyourdecision?Whoarethestakeholdersinvolved,rangingfromentry-levelemployees,tocustomers,tostockholders,tocompetitors.Whatstake,exactly,dothesegroupshaveinthiscase?Howweretheyharmed?How,ifatall,weretheirinterestsrepresentedintheprocess?
Thisisalsoagoodcasewithwhichtointroducethetopicsofcorporatecultureandleadership.Howwerethedecisionsmadebyindividualsinfluencedbythesurroundingculture,andhowdidthatcultureemergeatWellsFargo?Howfreewereemployeesateverylevel,includingseniorexecutives,todivergefromtheprevalentculture?Howmightthatinstitutionalculturebechanged?Whoisresponsibleforinstitutionaldecisions?Whichinstitutionalpoliciesandpracticesenabledthisscandal?Howmighttheybechangedtoavoidare-occurrence?
Anothertopicthatcanbeintroducedinvolvesprofessionalresponsibilitiesofbankersandfinancialprofessionals.ThisdiscussioncanbehelpfulinsettingthestageforChapter5andthegeneraltopicofcorporatesocialresponsibility.Adiscussionoffiduciarydutiescanintroduceseveralimportantquestions.Whatresponsibilitiesdomanagers,perhapsespeciallyseniorexecutives,havetostockholders?Howmighttheseresponsibilitiesconflictwiththeirresponsibilitiesasfinancialprofessionals?
Thiscasecanalsointroducethequestionofgovernmentregulationwithinamarketeconomy.Whatistheproperroleforgovernmentagencies,bothintermsoffsettingstandardstopreventmisconduct,andinenforcingsanctionsafterthefact?Howdoesthisinfluencethe“freemarket”system?
Introduction:GettingComfortablewiththeTopic
Itisnotuncommonforstudentstoenterabusinessethicsclasswithsomedegreeofdoubt,confusion,andapprehensionaboutthetopic.Thisopeningchapteraimstorelievethoseconcernsbyintroducingbusinessethicsasanunavoidableandnon-threateningpartofbusiness(andlife).
Thetopicisintroducedbyreviewingsomeofthepastandrecentwell-knownscandals,butalsopointingoutsomewell-knownexamplesofcommendablecorporateethics.Itcanbeworthwhiletoremindstudentsofbestcaseexamplesasameanstoremindingthemthatbusinessethicsdoesnotassumethatonlythebadcasesdeserveattention.
Wealsoremindstudentsthatbusinessethicsisnotlimitedtothetypeofmajorcorporatedecisionswithdramaticsocialconsequences.Atsomepointeveryworker,andcertainlyeveryoneinamanagementrole,willbefacedwithanissuethatwillrequireethicaldecision-making.
Thisopeningsectionidentifies5generalgoalsforabusinessethicsclass:
1.Developtheknowledgebaseandskillsneededtoidentifyethicalissues.
2.Understandhowandwhypeoplebehaveunethically.
3.Decidehowweshouldact,whatweshoulddo,andthetypeofpersonweshouldbeasindividuals.
4.Createethicalorganizations.
5.Thinkthroughthesocial,economic,andpoliticalpoliciesthatweshouldsupportascitizens.
*RealityCheck:PsychologicalEgoism”providesabriefphilosophicalrefutationofacommonassumptionthatunderliesmuchoftheskepticismaboutbusinessethics,includingtheseparationthesis.Thatassumptionistheviewthatallhumanbehaviorismotivatedbyselfishinterest,otherwiseknownas“psychologicalegoism.”
MakingtheCaseforBusinessEthics
The“Separationthesis”describedacommonwhichholdsthatethicalstandardsareseparatefromthestandardsthatapplyinbusinessactivities.Thisviewholdsthatbusinesshasitsownrulesthatgovernhowthegameisplayedand,therefore,businessisexemptfromordinaryethicaljudgments.
ThisseparationthesisisrepresentedprominentlyinMiltonFreidman’sfamousessay,“TheSocialResponsibilityofBusinessistoIncreaseitsprofits.”Thisverycommonperspectivecanbeseeninmanycasesdiscussedthroughoutthistext,andshouldbecontrastedwiththe“stakeholdertheory”describedinChapter5.
Relationshipbetweeneconomicandmoralvalues:Howshouldweconceiveoftherelationshipbetweenbusinessandmarketactivity,ontheonehand,andethicalconcerns,ontheother?Thisisnotanewquestion,butonethatcanbefoundsincetheverydawnofmoderncapitalism.
TherelationshipbetweenAdamSmith’stwobooks,TheWealthofNationsandTheTheoryofMoralSentiments,canbeseenasrepresentingthisquestion.
Theissueoftherelationshipofeconomicandmoralvaluesisaddressedinthestudyofbusinessethics.
Asrecentlyasthemid-1990s,articlesinsuchmajorpublicationsasTheWallStreetJournal,theHarvardBusinessReview,andU.S.NewsandWorldReportquestionedthelegitimacyandvalueofteachingclassesinbusinessethics.
Leadersrealizethattheycannolongeraffordthisapproachincontemporarybusiness.Thedirectcostsofunethicalbusinesspracticearemorevisibletodaythanperhapstheyhaveeverbeenbefore.
Thefirstdecadeofthenewmillenniumwasriddledwithhighly-publicizedcorporatescandals,theeffectsofwhichdidnotescapepeopleofanysocialorincomeclass.Moreover,wesawtheeconomybeginadownwardspiralintooneofthelargestfinancialcrisesofthelast80years.
Theselendingandtradingeffortsencouragedbaddebttoappreciatebeyondlevelsthatthemarketcouldbear.Theinevitablecorrectioncausedrealestatevaluesinmostmarketstodeclinesharply,domesticcreditmarketstofreeze,andthefederalgovernmenttointervenewitharescuepackage.
Economicturmoilincitesmisconduct;thereisasignificantbumpinobservedworkplacemisconductduringtimesofeconomicchallenges.Somemoney-savingstrategiesdeployedbystrugglingcompanies,suchascompensation/benefitreductionsandhiringfreezes,havebeenfoundtoincreasemisconductbymorethan35percent.
*ChapterObjective1AddressedBelow*
Tounderstandtheoriginsoftheshiftfromwhetherethicsorvaluesshouldplayaroleinbusinessdecisionstothealmostfranticsearchforhowmosteffectively(andquickly!)todoit,considertherangeofpeoplewhowereharmedbytheWellsFargoscheme:Customers,employees,investors,competitors,andthecommunitiesinwhichthesepeoplelive.
Expansionofethicallyresponsiblebusinessdecision-making:Ethicallyresponsiblebusinessdecision-makingmustmovebeyondanarrowconcernwithstockholders,andconsidertheimpactthatdecisionswillhaveonawiderangeofstakeholders.Inageneralsense,abusinessstakeholderwillbeanyoneaffected,forbetterorworse,bydecisionsmadewithinthefirm.
*Reference:“RealityCheck-WhyBeEthical?BecausetheLawRequiresIt”*(describessomelegalrequirementsthathavebeencreatedsincetheEnronfiasco)
Reasonstobeconcernedwithethicalissues:Beyondspecificlegalobligations,contemporarybusinessmanagershavemanyotherreasonstobeconcernedwithethicalissues.
Unethicalbehaviornotonlycreateslegalrisksforabusiness,itcreatesfinancialandmarketingrisksaswell.
Managingtheserisksrequiresmanagersandexecutivestoremainvigilantabouttheircompany’sethics.
Afirm’sethicalreputationcanprovideacompetitiveadvantage,ordisadvantage,inthemarketplaceandwithcustomers,suppliers,andemployees.
Managingethicallycanalsopaysignificantdividendsinorganizationalstructureandefficiency.
Trust,loyalty,commitment,creativity,andinitiativearejustsomeoftheorganizationalbenefitsthataremorelikelytoflourishwithinethicallystableandcredibleorganizations
*Reference:“RealityCheck-WhyBeGood?”*
Reasonstobeconcernedwithethicalissuesforbusinessstudents:Theneedtostudyethicsshouldbeasclearastheneedtostudytheothersub-fieldsofbusinesseducation.Withoutthisbackground,studentssimplywillbeunpreparedforacareerincontemporarybusiness.
But,evenforstudentsnotanticipatingacareerinbusinessmanagementorbusinessadministration,familiaritywithbusinessethicsisjustascrucial.
Asleadersandasemergingleaders,weneedtoexplorehowtomanagetheethicalbehaviorofotherssothatwecanimpacttheirdecisionsandencouragethemtomakeethical,ormoreethical,decisions.
Thecaseforbusinessethicsisclearandpersuasive.Businessmusttakeethicsintoaccountandintegrateethicsintoitsorganizationalstructure.Studentsneedtostudybusinessethics.
BusinessEthicsasEthicalDecision-making
Sowhatisthepointofabusinessethicscourse?
Asthetitleofthisbooksuggests,ourapproachtobusinessethicswillemphasizeethicaldecision-making.
HistoricalContext:Ononehand,ethicsreferstoanacademicdisciplinewithacenturiesoldhistoryandwemightexpectknowledgeaboutthishistorytobeamongtheprimarygoalsofaclassinethics.
Thus,inanethicscourse,studentsmightbeexpectedtolearnaboutthegreatethicistsofhistorysuchasAristotle,JohnStuartMill,andImmanuelKant.Ashappensinmanyothercourses,thisapproachtoethicswouldfocusontheinformationalcontentoftheclass.
*ChapterObjective2AddressedBelow*
EthicalBehavior/NormativeContent:Yet,accordingtosomeobservers,learningaboutethicaltheoriesandgainingknowledgeaboutthehistoryofethicsisbesidethepoint.
Manypeople,rangingfrombusinesseslookingtohirecollegegraduatestobusinessstudentsandteachersthemselves,expectanethicsclasstoaddressethicalbehavior,notjustinformationandknowledgeaboutethics.
Afterall,shouldn’tanethicsclasshelppreventfutureMadoffs?Ethicsrefersnotonlytoanacademicdiscipline,buttothatarenaofhumanlifestudiedbythisacademicdiscipline,namely,howhumanbeingsproperlyshouldlivetheirlives.
TheRoleofInfluence...Yet,thereisanappropriatecautionaboutinfluencingbehaviorwithinaclassroom.
Partofthishesitationinvolvesthepotentialforabuse;expectingteacherstoinfluencebehaviormaybeviewedaspermissionforteacherstoimposetheirownviewsonstudents.
Manybelievethatteachersshouldremainvalue-neutralintheclassroomandrespectastudent’sownviews.
Anotherpartofthisconcernisthattherecanbeanarrowlinebetweenmotivatingstudentsandmanipulatingstudents.
Therearemanywaystoinfluencesomeone’sbehavior,includingthreats,guilt,pressure,bullying,andintimidation.
Someoftheexecutivesinvolvedintheworstoftherecentcorporatescandalswereverygoodatusingsomeofthesemeanstomotivatethepeoplewhoworkedforthem.
Presumably,noneoftheseapproachesbelonginacollegeclassroom,andespeciallynotinanethicalclassroom.[TeachingNote:thiswouldbeagoodopportunitytodiscussappropriateandinappropriatemeansforgettingstudentstocompletetheirhomeworkassignments.Whatteachingmethodsrespectstudents?Whichdisrespectthem?Why?Contrastthistomanagerialinfluence:aretheresomeinappropriatewaysformanagerstogetworkerstocompleteatask?]
Butnotallformsofinfluencingbehaviorraisesuchconcerns.Thereisamajordifferencebetweenmanipulatingsomeoneandpersuadingsomeone,betweenthreatsandreasons.Thistextbookresolvesthetensionbetweenknowledgeandbehaviorbyemphasizingethicaljudgment,ethicaldeliberation,andethicaldecision-making.
Weagreewiththosewhobelievethatanethicsclassshouldstrivetoproducemoreethicalbehavioramongthestudentswhoenroll.
Butwebelievethattheonlyacademicallyandethicallylegitimatewaytodothisisthroughcarefulandreasoneddecision-making.
Ourfundamentalassumptionisthataprocessofrationaldecision-making,aprocessthatinvolvescarefulthoughtanddeliberation,canandwillresultinbehaviorthatisbothmorereasonableandmoreethical.
RoleofaCourse:Teachingethicsmust,onthisview,involvestudentsthinkingforthemselves.
BusinessEthicsasPersonalIntegrityandSocialResponsibility
Socialcircumstancesareanotherelementofourenvironmentthatimpactourethicaldecision-makingandbehavior.
SocialContext:Anindividualmayhavecarefullythoughtthroughasituationandhavedecidedwhatisright,andthenmaybemotivatedtoactaccordingly.Butthecorporateorsocialcontextsurroundingtheindividualmaycreateseriousbarrierstobehaveinthatway.
Asindividuals,weneedtorecognizethatoursocialenvironmentwillgreatlyinfluencetherangeofoptionsthatareopentousandcansignificantlyinfluenceourbehavior.
Peoplewhoareotherwisequitedecentcan,underthewrongcircumstances,engageinunethicalbehaviorwhilelessethically-motivatedindividualscan,intherightcircumstances,dothe“rightthing.”
EthicalLeadership:
Businessleadersthereforehavearesponsibilityforthebusinessenvironmentthattheycreate;whatweshalllaterrefertothisenvironmentasthe“corporateculture.”Theenvironmentcanthereforestronglyencourageordiscourageethicalbehavior.
Ethicalbusinessleadershipispreciselythisskill:tocreatethecircumstanceswithinwhichgoodpeopleareabletodogood,andbadpeoplearepreventedfromdoingbad.
TheEnroncaseprovidesanexample.TheDecisionPointincludedbelow(takenfromapreviouseditionofthisbook)describedthecaseofSherronWatkins,anEnronvicepresident.Sheseemedtounderstandfullythecorruptionanddeceptionthatwasoccurringwithinthecompany,andshetooksomesmallstepstoaddresstheproblemswithintheEnronenvironment.Butwhenitbecameclearthatherbossmightuseherconcernsagainsther,shebackedoff.ThesamecircumstanceswereinvolvedinconnectionwithsomeoftheArthurAndersenauditors.WhensomeindividualsraisedconcernsaboutEnron’saccountingpractices,theirsupervisorspointedoutthatthe$100millionannualrevenuesgeneratedbytheEnronaccountprovidedgoodreasonstobackoff.The“SherronWatkins”DecisionPoint,below,exemplifiestheculturepresentatEnronduringtheheatofitsdownfallandthisexamplemightbeusedasaclassdiscussiontopicorevenapaperassignmenttopic.
DecisionPoint
SherronWatkins
SherronWatkins,aVPatEnron,sentamemotoCEOKenLayexpressingconcernsaboutthecompany’squestionableaccountingpractices.Shewashopingtoturnthingsaroundinordertorightthewrongsbeforetheywereexposedtothepublic.Shebroughttohisattentionthefactthatmanypeopleknewabout,orweresuspiciousabout,theinappropriatebehavioroccurringatthefirmandthattheywouldnotbeabletohideitmuchlonger.ShealsovoicedherconcernfortheinvestorsaswellasfortheEnronemployeesthatsheknewwereawareofthesituationandwerealmostdesperateforthecompanytogetcaught.
WatkinswasfeaturedonthecoverofTimemagazineafterEnron’scollapseandhonoredasacorporatewhistleblower,althoughsheneversharedherconcernswithanyoneotherthanKenLaybefore“blowingthewhistle.”WasWatkinsanethicalherointakingthesesteps?Shouldshehavegonefurtherinreportingpotentialwrongdoingtooutsideauthorities?AsinthecaseofAaronFeuerstein,Thiscanbeanotheropportunitytoraisethedistinctionbetweenethicallyobligatoryactsandheroicacts(ethicallypraiseworthy,butnotrequired).
StudentsareaskedtoconsiderthefollowingquestionsindeterminingwhetherWatkinswasanethicalhero:
WhatfactswouldyouwanttoknowbeforemakingajudgmentaboutWatkins?Whatethicalissuesdoesthissituationraise?
BesidesKennethLay,whoelsemighthavehadaninterestinhearingfromWatkins?Whoelsemighthavehadarighttobeinformed?DidWatkinshavearesponsibilitytoanyoneotherthanLay?
OtherthaninformingLay,whatotheralternativesmighthavebeenopentoWatkins?
Whatmighttheconsequencesofeachofthesealternativeshadbeen?
Fromthissectionofthememo,howwouldyoucharacterizeWatkins’motivation?
Whatfactorsseemtohavemotivatedhertoact?
IfyouwereKenLayandhadreceivedthememo,whatoptionsfornextstepsmightyouhaveperceived?Whymightyouhavechosenoneoptionoveranother?
DoyouthinkWatkinsshouldhavetakenherconcernsbeyondKennethLaytooutsidelegalauthorities?
*ChapterObjective3AddressedBelow*
TheEthicalQuestion:Ethicsinvolveswhatisperhapsthemostmonumentalquestionanyhumanbeingcanask:Howshouldwelive?
Ethicsis,inthissense,practical,havingtodowithhowweact,choose,behave,anddothings.
Philosophersoftenemphasizethatethicsisnormative,whichmeansthatitdealswithourreasoningabouthowweshouldact.
Socialsciencessuchaspsychologyandsociologyalsoexaminehumandecisionmakingandactions,butthesesciencesaredescriptiveratherthannormative.Whenwesaythattheyaredescriptive,werefertothefacethattheyprovideanaccountofhowandwhypeopledoactthewaytheydo;asanormativediscipline,ethicsseeksanaccountofhowandwhypeopleshouldact,ratherthanhowtheydoact.
Howshouldwelive?Thisfundamentalquestionofethicscanbeinterpretedintwoways.
"We"canmeaneachoneofusindividually,oritmightmeanallofuscollectively.
Inthefirstsense,thisisaquestionabouthowIshouldlivemylife,howIshouldact,whatIshoulddo,andwhatkindofpersonIshouldbe.Thismeaningofethicsisbasedonourvaluestructures,definedbyourmoralsystems;and,therefore,itissometimesreferredtoasmorality.Itistheaspectofethicsthatwerefertobythephrase“personalintegrity.”Ifmoralsrefertotheunderlyingvaluesonwhichourdecisionsarebased,ethicsreferstotheapplicationsofthosemoralstothedecisionsthemselves.
Inthesecondsense,“Howshouldwelive?”referstohowwelivetogetherinacommunity.Thisisaquestionabouthowasocietyandsocialinstitutionssuchascorporationsoughttobestructuredandabouthowweoughttolivetogether.Thisareaissometimesreferredtoassocialethicsanditraisesquestionsofjustice,publicpolicy,law,civicvirtues,organizationalstructure,andpoliticalphilosophy.
Inthissense,businessethicsisconcernedwithhowbusinessinstitutionsoughttobestructured,aboutwhethertheyhavearesponsibilitytothegreatersociety(corporatesocialresponsibilityorCSR),aboutmakingdecisionsthatwillimpactmanypeopleotherthantheindividualdecisionmaker.
Werefertothisbroadersocialaspectofethicsasdecision-makingforsocialresponsibility.
TeachingNote:Thefollowinghypotheticalcasecanbeusedtohighlightthedistinctionbetweentheethicsofindividualintegrityandthesocialjustice.ImagineanHRmanagerwhoishiringtwoemployees.Assumethatthetoptwocandidates,onemaleandonefemale,areequallyqualifiedandthattheHRmanagerwishestohireboth.AssumethattheHRmanagerhimselfwillgetevaluated,inpart,byhowwellhecontrolscompensationexpenses.Asaresult,hehasbothaprofessionalandpersonalresponsibilitytopaythelowestsalarythatisnecessarytogetthecandidatetoaccepttheposition.Atthelastinterview,themanageraskseachabouttheirsalaryexpectations.Imaginethatthefemalecandidateasksforasalarythatissubstantiallybelowwhatthemaleasks.Heknowsthatthemalemaynotacceptthejobofferatalowersalary,andknowsthatthefemaleiswillingtoaccepttheloweroffer.WhatresponsibilitydoestheHRmanagerhaveforpayingequallyqualifiedemployees?Ifthemanagerpaysthefemaleless,wouldyoucharacterizehimassexist?Isthisdecisionunfairworkplacediscrimination?ImaginenowthattheHRmanagerisawoman?Wouldthischangeyourjudgment?Agooddiscussioncanfollowonhowparticularsocialcontextscanshapedecisionsand,despitethebestintentionsofindividualsinvolved,resultinsociallyundesirableconsequences.
DecisionPoint
ManagementandEthics
Imaginethatyouareexaminingthischapter’sopeningscenarioinoneofyourclassesonOrganizationalBehaviororManagerialFinance.WhatadvicewouldyouoffertoSodexo?Whatjudgmentwouldyoumakeaboutthiscasefromafinancialperspective?Afterofferingyouranalysisandrecommendations,reflectonyourownthinkinganddescribewhatvaluesunderliethoserecommendations.
? Whatfactswouldhelpyoumakeyourdecision?
? Doesthescenarioraisevaluesthatareparticulartomanagers?
? Whatstakeholdersshouldbeinvolvedinyouradvice?
? Whatvaluesdoyourelyoninofferingyouradvice?
EthicalDecision-Making:Withinabusinesssetting,individualswillconstantlybeaskedtomakedecisionsaffectingboththeirownpersonalintegrityandtheirsocialresponsibilities.
Eachdecisionmadebyabusinessmanagerinvolvesnotonlyapersonaldecision,butalsoadecisiononbehalfof,andinthenameof,anorganizationthatexistswithinaparticularsocial,legal,andpoliticalenvironment.
Whateverdecisionbusinessmanagersmake,theywillhavetakenastandonanethicalissue,atleastimplicitly.
Theactionseachoneofustakesandthelivesweleadgiveverypracticalandunavoidableanswerstofundamentalethicalquestions.
DecisionPoint
EthicsAfteranOilSpill
ThefollowinganswersarelengthierthanthosethatfollowintherestofthisInstructors’Manualinordertogiveabitofguidanceattheoutset.
EthicsAfteranOilSpill
In2011,anoilpipelineownedbytheenergycompanyEnbridgesprungaleaknearthetownofWrigleyintheCanadianNorthwestTerritory.ThecitizensofWrigleymaintainatraditionalstyleoflifethatdependsonthehealthoflocalforestsandwaterways.Environmentalprotectionisn’tjustaquestionofprincipleforthepeopleofWrigley;it’samatterofsurvival.Enbridgedevisedadetailedcleanupplan-acomplextechnicaldocument600pageslong.Whenthecompanyoffered$5,000sothatthecommunitycouldhireitsownexpertstoevaluatetheplan,localswereoffendedbysuchatinypayment.ThiswasasignificantblowtoEnbridge’simage,comingshortlyafteranotherEnbridgepipelinerupturedinMichigan.Andatthesametime,Enbridgewasinthemidstoftryingtowinapprovalforanewprojectinthefaceofoppositionfromenvironmentalgroups.
ThecompanyfacedanumberofdifficultissuesinthewakeoftheWrigleyspill.First,Enbridgehadtocleanupthespilledoil.Then,theyhadtoconsidertheissueofremediation–therestorationthepollutedlandbacktosomethinglikeitsoriginalstate.Further,therewasthequestionofcompensationtothelocalcommunityforthepollutionandlossofuseofsomeoftheirtraditionalhuntinggrounds.Allofthiswassetagainstabackdropofcontroversysurroundingtheimpactthatoilpipelineshaveonthelandsandcommunitiesthroughwhichtheyrun.
Whatdoyouthinkmotivatedthecompany’sdecisiontoofferthecommunity$5,000tohireitsownexpert?Whydoyouthinkthecommunitywasinsulted?Ifyouwerethecompany’slocalmanager,whatwouldyouhavedone?
Thiscaseprovidesanopportunitytoaccomplishseveralintroductorygoals.Inthemostgeneralterms,thisdiscussionhelpsinexploringwiththestudentspriortochapterstwoandthreethesource/originsofourvaluesorstronglyheldbeliefs,whatencouragesustomakethedecisionsthatwemake,the“whys”behindourchoices.
Onecanusethecaseasameansfordiscussingdecision-making:WhatoptionsareavailabletoEnbridge?Howwoulditdecide?Whatfactorsarerelevanttothedecision?Whatisarationaldecision?Askstudentstotakevariouspointsofview—Enbridge,itsfinancialadvisor,thecity’smayor,Wrigley’scitizens—andcontrastlikelyalternativedecisions.
Onecanalsousethecasetosubtlyintroducevariousperspectivesonethics:whatisthedifferencebetweendoingsomethingethicallyrequiredanddoingsomethingheroicorcharitable?OnwhatgroundsdoyoureachyourownopinionaboutEnbridge?Whattypeofcompanyisit,andwhatisitscorporatecharacter?
Thiscasealsoallowsforanintroductiontothebasicdebateaboutcorporatesocialresponsibility:Whatresponsibilitiesdoesacompanyhavetothecommunityinwhichitislocated?Forwhosebenefitoughtacompanybeoperated?Enbridgeisapubliclytradedcorporation.Howmightthefactorsconsideredinitsdecision-makingchangeifitwereprivatelycontrolled?
Whatfactswouldbehelpfultoyou,asanoutsider,inevaluatingthecompany’sbehaviorafterthespill?
Itwouldbehelpfultoknowthebusiness’financialsituationbeforetheoilspill,thecompany’senvironmentalrecordpriortothespill,anypriorrelationshipthecompanyhadtoWrigley,whatalternativeswereavailableandhowfeasibleeachwouldbe.Inaddition,didthefirmhaveamissionstatement,oranyotherobligationstoWrigleyorothersthatthestudentsbelieveshouldbeupheld?Whatareotherpossiblesourcesof“obligations?”
Whatvaluesareinvolvedinthissituation?HowwouldEn
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