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TheBusiness
Ethics
Workshop,v.1.0

1.6CaseStudies

byJamesBrusseau

GrayMatters

Source:PhotocourtesyofSasha
Wolff,http://www.flickr.com/photo
s/sashawolff/3388815964.

Tofosterethicaldiscussionandunderstandingintheworkplace,theLockheedMartincompanydevelopeda
quizforemployeescalledGrayMatters.Thequizismultiplechoice,witharangeofpointsawarded(or
subtracted)dependingontheresponse.Subsequently,theapproachhasbeenadoptedbyawiderangeof
corporations.Heresatypicalquestionmatchedwithitspossibleanswersandthecorrespondingpoints:
Sixmonthsafteryouhiredanassistantaccountantwhohasbeenworkingcompetentlyand
responsibly,youlearnthatshedepartedfromthetruthonheremploymentapplication:she
claimedshehadacollegedegreewhenshedidnt.Yourehermanagerwhatshouldyoudo?
A.Nothingbecauseshesdoingherjobjustfine.(10points)
B.Bringtheissuetothehumanresourcesdepartmenttodetermineexactlyhowcompany
policydeterminesthesituationshouldbehandled.(10points)
C.Fireherforlying.(5points)
D.Carefullyweighherworkperformance,herlengthofservice,andherpotentialbenefit
tothecompanybeforeinforminganyoneofwhathappenedormakingany
recommendations.(0points)

QUES TIONS
1.Thethreeprinciplecomponentsofbusinessethicsarefacts,values,andarguments.Whatarethefacts
pernenttoanethicalevaluaonofthiscase?Isthereanyinformaonnotcontainedinthequesonthat
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youdliketohavebeforemakingadecisionaboutwhatshouldbedone?
2.Fromthefactsandinformaonprovided,canyousketchasetofvaluesandchainofreasoningjusfyingthe
answerthatthequizsoriginalauthorssanconedastherightone?(Leavethedecisioninthehandsofthe
HRdepartmentandexisngcompanypolicy.)
3.YougetsomepointsforC(ringher).Whatvaluesandreasoningmayleadtothatdeterminaon?
4.Accordingtothequizauthors,theworstanswerisA.Maybetheyrewrong,though.Whatvaluesand
reasoningmayleadtotheconclusionthatdoingnothingbecauseshesdoingherjobjustneisan
excellentresponse?
5.Oneofthemostimportantquesonsaboutasituaonsfactsiswhosinvolved?
Woulditbereasonabletosaythat,ethically,thisisanissuejustbetweenyouandthewoman
whoyouhiredaersheliedonherrsum?
Ifyouexpandtheansweraboutwhosinvolvedtoincludeotherworkmatesatthecompany,as
wellasthecompanysclientsandshareholders,doesthatchangetheethicalperspecveyou
haveonwhatshouldbedonewiththelying(butcapable)coworker?
6.Whatsthedierencebetweenmoralityandethics?
WouldyoucategorizeresponseB(bringtheissuetoHRtodetermineexactlyhowcompany
policydeterminesthesituaonshouldbehandled)asleadingtoadecisionmorebasedon
moralityormorebasedonethics?Explain.
WouldyoucategorizeresponseD(carefullyweighherworkperformance,herlengthofservice,
andherpotenalbenettothecompanybeforeinforminganyoneofwhathappenedor
makinganyrecommendaons)asleadingtoadecisionmorebasedonmoralityorethics?
Explain.

WhoMadeYouriPhone?

Source:PhotocourtesyofTobias
Myrstrand
Leander,http://www.flickr.com/ph
otos/s8an/5207806926/.

ConnieGuglielmo,areporterforBloombergnewsservices,beginsanarticleonApplethisway:AppleInc.
saidthreeofitssuppliershired11underageworkerstohelpbuildtheiPhone,iPodandMacintoshcomputer
[1]

lastyear,aviolationituncoveredaspartofitsonsiteauditof102factories.

Herstoryaddsdetails.Theunderageworkerswerefifteeninplaceswheretheminimumlegalagefor
employmentissixteen.Shewasntabletodiscoverthespecificcountries,butlearnedtheinfractionsoccurred

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inoneormoreofthefollowing:China,Taiwan,Thailand,Malaysia,Singapore,SouthKorea,theCzech
Republic,andthePhilippines.
Followingthediscovery,theemployeeswerereleased,anddisciplinaryactionwastakenagainstanumberof
theforeignsuppliers.Inonecase,Applestoppedcontractingwiththecompanyentirely.
Thestorycloseswiththis:Applerose$2.62to$204.62yesterdayinNasdaqStockMarkettrading.The
sharesmorethandoubledlastyear.

QUES TIONS
1.TheethicalquesoniswhetherAppleoughttocontract(throughsuppliers)eenyearoldstoworkon
factoryoors.Isthefactthatthestockpricehasbeenzoomingupapernentfact,ordoesitnotaectthe
ethics?Explain.
2.Fromtheinformaongivenandreasonableassumponsaboutthesefactoriesandthelivingcondionsof
peopleworkinginsidethem,sketchanethicalargumentagainstAppleenforcingtheageworkplacerule.
Whatfundamentalvaluesunderwritetheargument?
3.Fromtheinformaongivenandreasonableassumponsaboutthesefactoriesandthelivingcondionsof
peopleworkinginsidethem,sketchanargumentinfavorofAppleenforcingtheageworkplacerule.What
fundamentalvaluesunderwritetheargument?
4.WithinthecontextoftheApplesituaon,whatsthedierencebetweenmakingadecisionintermsofthe
lawandintermsofethics?
5.Assumethatinthecountrieswhereeenyearoldswereworking,itscustomaryforchildreneven
youngertoearnanadulttypeliving.
Whatisanadvantageoffollowingthelocalcustomswhenmakingeconomicdecisionslikethe
oneconfronngApple?
Doesthecustomofemployingyoungworkersinsomecountrieschangeyourethical
consideraonofthepracceinthoseplaces?Whyorwhynot?
6.Aribungresponsibilityblaminganotherfordoingwrongrequiresthatthefollowingcondions
hold:
Thepersonisabletounderstandrightandwrong.
Thepersonactstocause(orfailstoacttoprevent)awrong.
Thepersonactsknowingwhattheyredoing.
Thepersonactsfromtheirownfreewill.
AssumingitsunethicalforeenyearoldstoworkfactoryshismakingiPhones,whobears
responsibilityforthewrong?
Dotheeenyearoldsbearsomeresponsibility?Explain.
DoesSteveJobs,theCEOofApple?Explain.
Areshareholdersguilty?Explain.
DopeoplewhouseiPhonesbearresponsibility?Explain.

ISwear

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Since2006,studentsattheColumbiaBusinessSchoolhavebeenrequiredtopledgeIadheretothe
principlesoftruth,integrity,andrespect.Iwillnotlie,cheat,steal,ortoleratethosewhodo.
Thisisasubstantialpromise,butitdoesntsoundlikeitllcreatetoomanytremendousburdensorrequire
hugesacrifices.
Asomewhatmoredemandingpledgesolidifiedin2010whenagroupofbusinessschoolstudentsfrom
Columbia,DukeFuqua,Harvard,MITSloan,NYUStern,RensselaerLally,Thunderbird,UNCKenanFlagler,
andYalemettoformalizethefollowingMBAOath:
AsabusinessleaderIrecognizemyroleinsociety.
Mypurposeistoleadpeopleandmanageresourcestocreatevaluethatnosingle
individualcancreatealone.
Mydecisionsaffectthewellbeingofindividualsinsideandoutsidemyenterprise,
todayandtomorrow.
Therefore,Ipromisethat:
Iwillmanagemyenterprisewithloyaltyandcare,andwillnotadvancemypersonal
interestsattheexpenseofmyenterpriseorsociety.
Iwillunderstandanduphold,inletterandspirit,thelawsandcontractsgoverningmy
conductandthatofmyenterprise.
Iwillrefrainfromcorruption,unfaircompetition,orbusinesspracticesharmfulto
society.
Iwillprotectthehumanrightsanddignityofallpeopleaffectedbymyenterprise,and
Iwillopposediscriminationandexploitation.
Iwillprotecttherightoffuturegenerationstoadvancetheirstandardoflivingand
enjoyahealthyplanet.
Iwillreporttheperformanceandrisksofmyenterpriseaccuratelyandhonestly.
Iwillinvestindevelopingmyselfandothers,helpingthemanagementprofession
continuetoadvanceandcreatesustainableandinclusiveprosperity.
Inexercisingmyprofessionaldutiesaccordingtotheseprinciples,Irecognizethatmybehavior
mustsetanexampleofintegrity,elicitingtrustandesteemfromthoseIserve.Iwillremain
[2]

accountabletomypeersandtosocietyformyactionsandforupholdingthesestandards.

QUES TIONS

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1.ThesecondintroductoryclauseoftheMBAOathisMydecisionsaectthewellbeingofindividualsinside
[3]

andoutsidemyenterprise,todayandtomorrow. Whatsthedierencebetweenseeingthisasaposive
ethicalstandinfavorofabroadsocialresponsibilityheldbythoseinbusiness,andseeingitasarrogance?
2.LookingattheMBAOath,canyoulistasetofvaluesthatareprobablysharedbythoseresponsibleforits
creaon?
3.AllthispledgingandoathingsuddenlypoppingupatbusinessschoolsdrewtheaenonoftheNew
YorkTimes,andsoonaer,anarcleappeared:APromisetoBeEthicalinanEraof
[4]

Immorality. Manyofthereaderscommentsattheendareinteresng.Thecommenterpaulnyc
writesthatmoststudentsgotoMBAprogramstoadvancetheircareersandtoearnmoremoney,pure
[5]

andsimple,andthereisnothingwrongwithit.

Whatvaluesunderliepaulnycsperspecve?
Howispaulnycsvisiondierentfromtheoneespousedintheoath?
4.ThecommenterJerryNYwrote,GreedISgoodaslongasitispairedwiththespiritoffairness.Virtually
allofthemajoradvancesinscienceandtechnologyweremadewithgreedasoneofthemovang
factors.Gugliemo[sic]Marconi,AlexanderGrahamBell,BillGates,HenryFordandSteveJobswouldnot
havegivenusthelifechangingtechnologicaladvancesofourmewereitnotforpersonalgreed.
[6]

Removethatelement,andyourclassisdesnedformediocrity.

IsitplausibletoassertthatJerryNYsharesmostofthevaluesofthosewhowrotetheMBAOath,its
justthatheseesadierentbusinessatudeasthebestwaytoservethosevalues?Ifso,explain.Ifnot,
whynot?
5.Ericwrites,
Iwouldrefusetotakethatoathonprinciple.Theideathatanindividualspropermove
shouldbetoservethegreatergoodishighlyquesonable.Thisaltruiscethiciswhat
supportedthecollecvistofcommunismandnaonalsocialism.Ifmylifebelongsrstand
foremosttothegreatergood,itfollowsthatthegreatestvirtueistoliveasaslave.Aslaves
existence,aerall,isdevotedprimarilyforthebenetofhismaster.Themastercanbea
plantaonowneroraKingoranoligarchyorasocietythatdemandsyourservitude.
TheonlyoathIdbewillingtotakeis,Iswear,bymylifeandmyloveofit,thatIwillneverlive
[7]

forthesakeofanotherman,noraskanothermantoliveformine.

Inyourownwords,contrastthevaluestheMBAOathsupportersespousewiththevaluesthe
commenterEricespouses.
6.ThecommenterClydeWynantisskepcal.HewritesthisaboutthosewhotaketheMBAOath:Callme
hypercynical,butIcanthelpwonderingifalotofthesekidsarenthopingthathavingthispledgeon
[8]

theirrsummighthelpthemlookgood.

Isitunethicaltotakethepledgewithoutexpecngtoadheretoitsimplybecauseyouthinkitwillhelp
inyourjobsearch,oristhatstrategyjustadierentkindofethics?Explain.

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7.ThecommenterMikhailisskepcal.Hewrites,GivemeabreakWiththenextupswingofthe
economy,theseleecheswillbesuckingthelifebloodoutofourcollecveeconomieslikethechampions
theytrulyare!!!Yes,perhapsopportuniscparasiteseverylastoneofthembutreally,itsnottheir
[9]

faulttheyrejustprogrammedthatway.

Whenhesaysbusinessschoolstudentsareprogrammed,whatdoeshemean?Ifsomeoneis
programmedtobeanopportuniscparasiteinbusiness,canweblamethemforwhattheydo?Ifso,
how?Ifnot,whoshouldbeblamed?
8.Thecommenterasisskepcal.Hewrites,Dontmakemelaugh.Iftheyaresoconcernedaboutthe
[10]

greatergood,gointoteachingandnursing.

AssumetheMBAOathdoesstresstheimportanceofthegreatergood,andyoutooaregoingintothe
economicworldwiththatasaprivilegedvalue.Howcouldyourespondtotheargumentthatyoureally
shouldbedoingnursingorsomethingmoreobviouslyservingthegeneralgood?
9.AccordingtotheTimes,BschoolersarentliningupfortheMBAOath:onlyabout20percenttakethe
pledge.Howcouldyouconvincetheother80percenttosignon?

I.M.P.(ItsMyParty)

Lookatthem!hesaid,hiseyesdancing.Thatswhatitsallabout,thewaythepeoplefeel.Its
notabouttheselloutperformancesandthecaliberofthebandswhoappearhere.Itsaboutthe
peoplewhobuytickets,havingagoodtime.

[11]

Source:PhotocourtesyofKevin
Dooley,http://www.flickr.com/pho
tos/pagedooley/4530723795/.

ThatsSethHurwitzquotedintheWashingtonPost,talkingabouthis9:30Club,asmallvenueplayingover
thehillbandsonthewaydown,andfreshactsscratchingtheirwayup.
ThestoryscuriousdetailisthateventhoughHurwitzcallshiscompanyI.M.P.(ItsMyParty),hedoesnt
spendmuchtimeathisclub.Infact,hesalmostneverthere.Partofthereasonisthathisworkdaybeginsat6
a.m.,sohesactuallybackinbedpreparingforthenextdaybeforehisenterprisegetsgoinginearnesteach
night.Hisjobisstraightforward:sittinginthesecondfloorofficeofhissuburbanDChome,hescrutinizesthe
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musicpublicationsandstatistics,probingforbandsthatpeoplewanttoseeandthatwontchargetoomuchto
appear.HetoldthePostthathewontbookanactasafavor,andhewontflatteragroupintoplayinghisclub
tokeepthemawayfromthecompetitionbyoverpayingthem.Idontsubscribe,hesays,todoingshows
thatwilllosemoney.
Hurwitzhasbeenconnectedwithmusicinonewayoranotherforalmostaslongashecanremember.
ThePostrelatessomeofhisearlymemories:
Heriggedasystemtobroadcastradiofromhisbasementtohisparentsandbrothersinthe
livingroom.Iusedtobringmysinglesintoclassandplaythem,Hurwitzsaid.Whenhewas
16,hedecidedhewantedtobeadeejayandgothischancewhenalternativerockstationWHFS
gavehimaspot.Itwasfrom7:45to8fifteenminutes,hesaid,laughing.Butthatwasokay
becauseIwantedtobeontheradio,andIhadmyownshow,asahighschoolstudent.Hesaid
[12]

hewasfiredforbeingtooprogressive.

ItsalongwayfromgettingfiredforplayingmusictooobscureforalternativeradiotowhereHurwitzisnow:
puttingonconcertsbybandsselectedbecausetheyllmakemoney.

QUES TIONS

1.Hurwitzisbrutallyhonestaboutthefactthathellonlycontractbandscapableofturningaprot.When
hewasyoungerandadeejay,heinsistedonplayingthemusichejudgedbestnomaerhowmany
peopleturnedotheradiowhenhisshowcameon(anatudethatcosthimthejob).
What,ifanything,isHurwitztheolderconcertpromotercompromisingtogetahead?Isthere
anethicalobjeconthatcouldberaisedhere?Ifso,what?Ifnot,whynot?
WhenHurwitzwasadeejay,heplayedrecordsthatledpeopletochangethestaon.Thenthe
staonchangedhim.Isthisanexampleofbusinessregulangitself?Isthereanethicalsideto
this,orisitjustthewaymoneyworks?Explain.
Fromtheinformaongiven,wouldyoujudgethatHurwitzissuccessfulinbusiness?Whyor
whynot?
Areallthesequesonspartofinstuonalbusinessethicsorpersonalbusinessethics?Explain.
2.Hurwitzsaysthathedoesntbookbandsasfavors.Presumablyatleastsomeofthefavorshestalking
aboutwouldbetofriends.
Dopeoplewhoruntheirowncompanyhaveanethicalresponsibilitytoseparatefriendsfrom
business?
3.OnenicethingaboutHurwitzworkingupstairsinhisownhouseisthathecanshowupforworkinthe
morninginhispajamas.Shouldallplacesofbusinessbelikethatwithpeoplefreetowearwhateverthey
wantforwork?Explainyouranswerfromanethicalperspecve.
4.MostofHurwitzsshowsareonweeknights.Someconcertgoersmayhavesuchagoodmethatthey
cantmakeitintoworkthenextday.
IfyougotoaconcertonaWednesdayandaretoohungovertomakeittoworkonThursday,
whatshouldyoutellyourbossonFriday?Thatyouwerehungover?Thatyourcarbrokedown?
Somethingelse?Jusfy.
ShouldHurwitzacceptsomeresponsibilityandblameforabsentemployees?Explain.
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