PHL 313 Z2 - BUSINESS ETHICS
DISTANCE LEARNING [Home Study]
SUMMER, 2006
Lawrence P. Ulrich, Ph.D.
Lawrence.Ulrich@notes.udayton.edu
ASSIGNMENTS



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Exam 1

Exam 2

Exam 3

Case Study
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COURSE EVALUATION FORM


For a brief summary of these deadlines and the schedule of the threaded discussions and chat rooms, CLICK HERE.


GENERAL ORIENTATION TO THE ASSIGNMENTS: The first few pages of each "Part" in Ethical Issues in Business: A Philosophical Approach highlight the issues to be discussed in the chapter. These should be read to give you a general perspective of the issues to be discussed in the "Part."


Course Assignments:

FIRST PERIOD: [Due: JUNE 6]
 

This assignment consists of 176 pages of reading material.
The video on ethical systems should also be viewed during this period.
The assignments in this period will introduce the student to the general ethical contexts, principles, and methods which provide the framework for analyzing issues, which arise in business practices and furnish the tools for resolving conflicts which may arise. Students will become familiar with the notion of virtue and virtuous practices in the conduct of business on the part of corporate executives, managers, and employees.  Students should also begin to become sensitive to the difficulty of developing a uniform set of ethical expectations for a pluralistic society especially when business is conducted between nations, which vary widely in their cultural norms. The responsibilities of corporations and marketing practices will be used to illustrate the theoretical issues in this section.
CLICK HERE for Examination 1.

 

CONCEPTUAL TOOLS: ETHICAL CONCEPTS, PRINCIPLES, AND METHODS.

Introduction to the unit (Streaming Video --- 2 minutes).

Wake Up Calls: Classic Cases in Business Ethics.
    Part I: The Discipline of Ethics: An Introduction, pp. 3-19.
Ethical Issues in Business: A Philosophical Approach.
    "Introduction to Ethical Reasoning", pp. 1-11.
Readings Webpage: Ulrich, LP. "Ethical Systems in Business Ethics."  (11 pages)
Readings Webpage: Ulrich, LP. "Ethical Principles in Business  Ethics." (10 pages)

Navigating to Ethical Decisions. <mms://lsmedia.udayton.edu/Ulrich/Ethical.wmv> One-hour video produced by the Department of Philosophy. [You will probably need a high speed line to view this video.] Click on "Connecting" in the Windows Media Player and then click on "Play in Default Player."
Ethical Issues in Business: A Philosophical Approach.
    "General Issues in Business Ethics", pp. 12-19.

THE RESPONSIBILITY OF CORPORATIONS. 

Introduction to the unit (Streaming Video --- 2 minutes).

Ethical Issues in Business: A Philosophical Approach.

   Friedman, Milton. "The Social Responsibility of Business Is to Increase Its Profits." pp. 33-38.
    Freeman, R. Edward. "Stakeholder Theory of the Modern Corporation." pp. 38-48.

         Stakeholders (1 page) [Slide].
    Goodpaster, Kenneth E. "Business Ethics and Stakeholder Analysis." pp. 49-60.
ERESERVE: Heath, Eugene. "Corporate Responsibility." (4 pages).

"NASDAQ Credo" from The Wall Street Journal, 2/21/02. [Slides]
"Integrity: A Statement by PrinceWaterhouseCoopers" from The Wall Street Journal, 1/16/03. (1 page).

"KPMG Settlement" from The Wall Street Journal, 08/29/05.

"KPMG Charges" from The Wall Street Journal, 08/30/05.

"KPMG and Congress" from The Wall Street Journal, 08/30/05.

"KPMG Tentative Settlement" from The Wall Street Journal, 11/01/05.

"KPMG Decision Highlights" from The Wall Street Journal, 06/28/06.

 

VIRTUE AND THE VIRTUOUS PRACTICES OF MANAGERS.

Introduction to the unit (Streaming Video --- 2 minutes).

ERESERVE: Aristotle. "On Virtue" from Nicomachean Ethics. (4 pages).
ERESERVE: Heath, Eugene. "Character and Commerce." (6 pages).

     Virtues of Managers. [Slide]

      Hume's catalogue of Virtues. [Slide]

      Virtues (Robert Solomon). [Slide] 

ERESERVE: Olick, Robert. "Integrity." 6 pages.

     Trust [Slides]

"Integrity: A Statement of PriceWaterHouseCoopers" from The Wall Street Journal, 1/16/03. [1page]
Ethical Issues in Business: A Philosophical Approach.
    Soloman, Robert C. "Corporate Roles, Personal Virtues: An Aristotelean Approach to Business Ethics." pp. 71-83.
    Waters, James A. "The Moral Muteness of Managers." pp. 302-314.

     Brenkert, George G. "Trust, Morality, and International Business." pp. 118-130.

"How Enron Bosses Created a Culture of Pushing Limits" from The Wall Street Journal, 8/26/02. (3 pages).

Report of Special Investigative Committee of Board of Directors of Enron, 02/01/2002.

"California Sues Enron" from The Wall Street Journal, 6/2/04.

"Enron Tapes" from The Wall Street Journal, 6/2/04

"Lay is Indicted" from The Wall Street Journal, 7/8/04.

US v. Lay , Full Text of Indictment, 7/7/04.

"Lay's Indictment Excerpts" from The Wall Street Journal, 7/8/04.

SEC Amended Complaint against Kenneth Lay, et.al. , 7/8/04.

"Lay's Response to Indictment" from The Wall Street Journal, 7/8/04.

"Kenneth Lay's Biography" from The Wall Street Journal, 7/9/04.

"Enron's Code of Ethics," 2000.

"Enron's Legal Defense" from The Wall Street Journal, 01/20/06.

"Fall of Enron" from The Houston Chronicle Special Report. Look under category "Business." 2006.

"Skilling's Testimony I" from The Wall Street Journal, 04/11/06.

"Skilling's Testimony II" from The Wall Street Journal, 04/11/06.

"Enron's Lay's Shaky Performance" from The Wall Street Journal, 05/01/06.

"Enron's Lay Defends Practices" from The Wall Street Journal, 05/03/06.

"Enron Closing Arguments" from The Wall Street Journal, 05/16/06.

"Enron's Defense Attacks "Fictional" Case' from The Wall Street Journal, 05/17/06.

"Enron Waiting for Verdict" from The Wall Street Journal, 05/20/06.

"Enron's Legacy" from The Wall Street Journal, 05/20/06.

"Enron's Lay, Skilling Conviction from The Wall Street Journal, 05/26/06.

"Enron's Conviction Opinion WSJ from The Wall Street Journal, 05/26/06.

"Enron's Skilling Interview I from The Wall Street Journal, 061706.

"Enron's Skilling Interview II from The Wall Street Journal, 061906.

"Enron's Lay and Skilling - $183 Sought by Government from The Wall Street Journal, 07/01/06.

"Enron's Lay's Death and Legacy from The Wall Street Journal, 07/06/06.

 

 

HONESTY AND TRUTH TELLING.

Ethical Issues in Business: A Philosophical Approach.
    Bowie, Norman E. "A Kantian Approach to Business Ethics." pp.61-71.
    Kant, Immanuel. "Truthfulness." pp.100-105.

                Kant on Lying [Slides].

ERESERVE: Heath, Eugene. "Honesty and Integrity in Business: Honesty." (4 pages).
"Tyco's Accounting Practices" from The Wall Street Journal, 12/31/02. (3 pages).

"Tyco's Conviction" from The Wall Street Journal, 6/17/05.

American Institute of Certified Public Accountants (AICPA). (Reference)

"Bernard Ebbers and Accounting Fraud from The Wall Street Journal 6/6/03.

"Executives' Conflict of interest at Sprint" from The Wall Street Journal, 2/10/03.

"Accounting Conflict of Interest" from The Wall Street Journal, 2/7/03.

"Sprint Tax Breaks" from The Wall Street Journal, 2/13/03.

"Ethics and Anderson" from The Wall Street Journal, 3/20/03.

"U.S. Supreme Court Overturns Anderson Verdict" from The Wall Street Journal, 6/1/05.

"Staff Accounting Fraud at WorldCom" from The Wall Street Journal, 6/23/03.

 

Ethical Issues in Business: A Philosophical Approach.
    Carr, Albert. "Is Business Bluffing Ethical?" pp.106-112.
    Crisp, Roger. "Persuasive Advertising, Autonomy, and the Creation of Desire." pp. 503-510.

"Marketing and Telling the Whole Truth: The Case of Viagra and AIDS" from The Wall Street Journal 3/7/03.
    Fennel, Lee, et al. "Fingerhut's Price Strategy." pp.486-498.

"Nexium and Prilosec" from The Wall Street Journal, 6/6/02.

"Vioxx Verdict"  from The Wall Street Journal, 08/22/05.

"Vioxx Verdict Backlash" from The Wall Street Journal, 08/22/05.

"Vioxx Timeline" from The Wall Street Journal, 08/22/05.

"Vioxx Verdict: Merck Response" from The Wall Street Journal, 08/22/05.

"Vioxx Litigation" from The Wall Street Journal, 08/25/05.

"Vioxx Verdict Casts Doubt on Merck" from The Wall Street Journal, 08/24/05.

"Merck Acquited" from The Wall Street Journal, 11/03/05.

"Merck's Victory from The Wall Street Journal, 11/04/05.

"Merck Liable" from The Wall Street Journal, 04/06/06.

"Merck's Punitive Damages" from The Wall Street Journal, 04/11/06.

"Merck and Fosamax" from The Wall Street Journal, 04/12/06.

"Merck-Gardasil from The Wall Street Journal, 06/09/06.

 

A Case in Ethical Decision Making: The Right to Nutritious Food --- Marketing Infant Formula in Third World Countries. <mms://lsmedia.udayton.edu/Ulrich/formula.wmv> One-hour video produced by the Department of Philosophy. [You will probably need a high speed line to view this video.] Click on "Connecting" in the Windows Media Player and then click on "Play in Default Player."

 



SECOND PERIOD: [Due: JUNE 26]
 
This assignment consists of 163 pages of reading material.
This section focuses on a discussion of human rights and the way various cultures have attempted to identify them. As a part of this discussion students will reflect on the impact that assertions of human rights might have on corporations doing business in the global marketplace.  There will also be consideration of moral issues raised in a capitalist system and the demands of justice, which are raised in this system. Finally it will examine theories of property, profit, and justice as they relate to business practices. There will be some preliminary investigation into the issues of intellectual property within the context of human rights and the demands of justice.
CLICK HERE for Examination 2.

 

RIGHTS, HUMAN RIGHTS, AND CULTURAL RELATIVISM.
Introduction to the unit (Streaming Video --- 2 minutes).

ERESERVE: Facione, P.A. "Rights and Duties."(22 pages).
United Nations Declaration of Human Rights. pp. 424-428. (also found on line --- see next item)
UN Declaration of Human Rights (1948)
Declaration of the Rights of Man and the Citizen (French Revolution) (1789).
Rights of Women (1791)
Constitution of Virginia (1776)
US Bill of  Rights (1789)
English Bill of Rights (1689)
Magna Carta (1215)
Aboriginal Charter of Rights (2000).
Ethical Issues in Business: A Philosophical Approach.
    Rachels, James. "The Challenge of Cultural Relativism." pp. 410-419.
    Donaldson, Thomas and Dunfee, Thomas. "A Social Contracts Approach to Business Ethics." pp. 419-424.
    Brenkert, George C. "Trust, Morality, and International Business." pp. 118-130.

         Trust [Slides]
    Donaldson, Thomas. "Values in Tension: Ethics Away from Home." pp. 471-481.

JUSTICE AND THE ACCUMULATION AND DISTRIBUTION OF WEALTH.

Introduction to the unit (Streaming Video --- 2 minutes).

ERESERVE: Heath, Eugene. "Justice." (7 pages).
ERESERVE: Heath, Eugene. "Selfishness." (2 pages).

"Bernard Ebbers and the Acquisition of Wealth" from The Wall Street Journal, 12/31/02. (5 pages).

"Ethics and Anderson" from The Wall Street Journal, 3/20/03.

"Bernard Ebbers and Accounting Fraud from The Wall Street Journal, 6/6/03.

"Staff Accounting Fraud at WorldCom" from The Wall Street Journal, 6/23/03.

"SEC Settlement for WorldCom is Approved" ($750 Million) from The Wall Street Journal, 7/8/03.    

     SEC v. WorldCom. $750 million Settlement Decision, 7/7/03.

"Bernard Ebbers Indicted from The Wall Street Journal, 03/03/04.

"Bernard Ebbers and Uneasy Partnership" The Wall Street Journal, 1/12/05.

"Bernard Ebbers Conviction" from The Wall Street Journal, 031505.

"EbbersSentencing" from The Wall Street Journal, 07/14/05.

"Adelphia Convictions" from The Wall Street Journal, 7/9/04.

Ethical Issues in Business: A Philosophical Approach.
   Carnegie, Andrew. "Wealth." pp. 164-168.

    Rawls, John. "Distributive Justice." pp. 193-203.
    Nozick, Robert. "The Entitlement Theory." pp. 203-209.

    Walzer, Michael. "Complex Equality." pp. 210-227.
    Thurow, Lester C. "Needed: A New System of Intellectual Property Rights." pp. 182-191.    

CAPITALISM, PROFIT, AND THE TREATMENT OF WORKERS

    "Standards for Determining Insider Trading" from The Wall Street Journal, 12/31/02.

    "Spring Loading As Insider Trading" from The Wall Street Journal, 07/08/06.

     "Martha Stewart Insider Trading" from The Wall Street Journal, 6/14/02.

    "Martha Stewart's Possible Indictment" from The Wall Street Journal, 6/4/03.   

     "Martha Stewart, Broker Indicted" from The Wall street Journal, 6/5/03.

    "Mayham over Martha" Editorial from The Wall Street Journal, 6/5/03.

    "Martha Stewart's Declining Profits" [or "Bad Ethics Makes for Bad Business"] from The Wall Street Journal,   8/12/03.

     The United States of America v. Martha Stewart and Peter Bacanovic: Legal Indictment.

   "Martha Stewart's Conviction" from The Wall Street Journal. 3/8/04.

   "Martha Stewart's Reactions I" from The Wall Street Journal, 7/19/04.

   "Martha Stewart's Reactions II" from The Wall Street Journal, 7/19/04.

   "Martha Stewart and the SEC" from The Wall Street Journal, 7/16/04.

 

LEGAL DEFINITION OF INSIDER TRADING: Trading in possession of material, nonpublic information obtained in breach of a duty.

 

Ethical Issues in Business: A Philosophical Approach.
    Part Two: Property, Profit and Justice: Introduction, pp.131-139.
    Locke, John. "The Justification of Private Property." pp.150-155.
    Smith, Adam. "Benefits of the Profit Motive." pp. 155-159.
    Marx, Karl. "Alienated Labor." pp. 159-163.

    Marx, Karl. "Alienated Labor" from the Economic and Philosophical Manuscripts of 1844.  ERESERVE:
    Carnegie, Andrew. "Wealth." pp. 164-168.

    "Free Market Drugs" from The Wall Street Journal, 2/28/03.

    "Profits for Generic Drugs" from The Wall Street Journal, 3/31/03.

    "Profiting From Medicare Drug Plan" from The Wall Street Journal, 06/21/06.

    "Big Buyers Push Drug Cuts" from The Wall Street Journal, 06/22/06.

    "Generic Zocor For Sale from The Wall Street Journal, 06/24/06.

    "Merck Prices Zocor Below Generic" from The Wall Street Journal, 06/21/06.

    "Merck Sells Zocor Below Generic" from The Wall Street Journal, 06/22/06.

    "Grasso's Pay, First Disclosure" from The Wall Street Journal, 8/28/04.

    "SEC Demands Details on Grasso from The Wall Street Journal, 09/03/03.

    "Grasso Influenced Pay Package" from The Wall Street Journal, 9/11/03.

    "Grasso Quits NYSE" from The Wall Street Journal, 9/18/04.

    "Grasso and Greed" from The Wall Street Journal, 9/18/04.

    "Grasso's Hopes" from The Wall Street Journal, 9/26/04.

    "Grasso Report: Executive Summary" from The Wall Street Journal, 2/2/05.

    "Response from Grasso's Spokesman" from The Wall Street Journal, 02/02/05.

    "Spitzer Files Suit against Grasso" from The Wall Street Journal, 5/25/04

    NewYork V Grasso (Full Text - PDF file -106 pages) 5/24/04.

    New York V Grasso (Excerpts) from The Wall Street Journal, 5/25/04.

    "CEOs' Excessive Pay" from The Wall Street Journal, 4/26/06.

    "Survey CEOs' Compensation" from The Wall Street Journal, 4/10/06.

    "Exxon Raymond's Pay" from The Wall Street Journal, 4/10/06.

    "Exxon Raymond's Pension Package" from The Wall Street Journal, 5/20/06.

     "Executives' Pensions Increase While Workers' Decrease" from The Wall Street Journal, 06/23/06.

    "GM Cuts Pay and Benefits" from The Wall Street Journal, 2/21/02.

 

    "Debt Symbol of Capital" from The Wall Street Journal, 05/17/05.

 

 

    Nozick, Robert. "The Entitlement Theory." pp. 203-209.

 



THIRD PERIOD: [Due: JULY 13]
 
This assignment consists of 171 pages of reading material.
This section focuses the rights and responsibilities of employees and the responsibility of corporations to honor employee rights and create a "healthy" environment for employees. Specific issues of whistleblowing, employee security, affirmative action/diversity, and sexual harassment receive special attention. It also examines the obligations of corporations for the environment. Finally, it examines issues in leadership, which will position managers and corporations to operate in the 21st century.
CLICK HERE for Examination 3.

 

RIGHTS AND RESPONSIBILITIES OF EMPLOYEES.
Introduction to the unit (Streaming Video --- 2 minutes).

Ethical Issues in Business: A Philosophical Approach.
    Part Three: Corporations, Persons, and Morality: Employee Rights and Responsibilities, pp. 228-237.
ERESERVE: Heath, Eugene. "Responsibility, Actions, and the Conduct of Business" (3 pages).

WHISTLEBLOWING.

ERESERVE: Heath, Eugene. "Integrity, Loyalty, and Whistleblowing." (3 pages).
Ethical Issues in Business: A Philosophical Approach.
    Bok, Sissela. "Whistleblowing and Professional Responsibilities." pp. 335-342.

    "The Complex Goals and Unseen Costs of Whistle-Blowing" [The story of Ted Beatty] from The Wall Street Journal, 11/25/02 page A1. (4 pages)

    "Whistleblowing and HealthSouth Fraud" from The Wall Street Journal,  5/20/03.

    "HealthSouth: More Allegations" from The Wall Street Journal, 7/25/03.

    "HealthSouth Legal Defense" from The Wall Street Journal, 02/02/05.

    "HealthSouthScrushyAcquited" from The Wall Street Journal, 06/29/05.

    "HealthSouth Key Events in Scrushy Case" from The Wall Street Journal, 08/26/05.

    "HealthSouth CFO Sentence" from The Wall Street Journal, 08/26/05.

   "HealthSouth Scrushy Bribery Conviction from The Wall Street Journal, 06/30/06.

   "HealthSouth Scrushy Conviction Appeal from The Wall Street Journal, 07/01/06.

 

    "Staff Accounting Fraud at WorldCom" from The Wall Street Journal, 6/23/03.

 

EMPLOYEE SECURITY.

Ethical Issues in Business: A Philosophical Approach.
    Radin, Tara and Werhane, Patricia. "Employment at Will, Employee Rights, and Future Directions for Employment." pp. 343-352.
    Epstein, Richard A. "In Defense of the Contract at Will." pp. 352-361.
    Kanter, Rosabeth M. "Employability Security." pp. 361-363.

"Job Security: What Could Happen Without It" from The Wall Street Journal  3/5/03

"Employee Termination to Save Health Care Costs" from The Wall Street Journal, 7/14/03.

"Laid-Off  Factory Workers Drying Up" from The Wall Street Journal, 7/21/03.

"Mining in Australia" from The Wall Street Journal, 7/21/04.

"Cutting Retiree Benefits" from The Wall Street Journal, 03/16/04.

"United Record Pension Default" from The Wall street Journal, 5/11/05.

 "Pensions for Retirees" from The Wall Street Journal, 5/18/05.

"Retirement Benefits" from The Wall Street Journal, 07/19/05.

"Blogging About the Workplace" from USA Today, 05/27/05.

AFFIRMATIVE ACTION AND DIVERSITY.

ERESERVE: Beauchamp TL. "Reverse Discrimination." (5 pages).
ERESERVE: Ezorsky G."Moral Perspectives on Affirmative Action." (9 pages).
ERESERVE: Pojman L"The Moral Status of Affirmative Action." (13 pages).
Ethical Issues in Business: A Philosophical Approach.
    Swartz, Felice N. "Management Women and the New Facts of Life." pp. 370-381.
    Gentile, Mary C. "The Case of Unequal Opportunity." pp. 364-370.

"Affirmative Action at the University of Michigan" from The Wall Street Journal, 2/10/03.

    "US Supreme Court Decision on Affirmative Action at University of Michigan from The Wall Street Journal 6/23/03.

    "US Supreme Court Decision on Affirmative Action at University of Michigan from The Wall Street Journal 6/24/03.

    "Gruttner v. Bollinger."  US Supreme Court Decision on Affirmative Action at the University of Michigan (Law School). 6/23/03.

    "Gratz v. Bollinger." US Supreme Court Decision on Affirmative Action at the University of Michigan (Undergraduate School). 6/23/03.

    Excerpts from US Supreme Court Decisions on Affirmative Action at the University of Michigan from The Wall Street Journal, 6/24/03

    "Corporate Goal: Ethnic Variety, No Quotas." Impact of the US Supreme Court's decision on Affirmative Action from The Wall Street Journal,6/24/03.

"Affirmative Action and the Wealthy" from The Wall Street Journal, 2/20/03.

SEXUAL HARASSMENT.

ERESERVE: Dodds SM et al."Sexual Harassment." (13 pages).
Wake Up Calls: Classic Cases in Business Ethics.
    "Must We Maintain a Friendly Workplace? Sexual  Harassment on the Job." pp. 71-84.

"Sexual Harassment at Salomon Smith Barney" from The Wall Street Journal, 12/17/02.

THE RESPONSIBILITY OF CORPORATIONS FOR THE ENVIRONMENT.

Introduction to the Unit (Streaming Video --- 2 minutes).

ERESERVE: Heath, Eugene. "Business, Technology, and Environmental Ethics." (10 pages).
Ethical Issues in Business: A Philosophical Approach.
    Simon, Julian L. "Scarcity or Abundance." pp. 541-550.
    Warren, Wendy and Larson, Andrea. "The Natural Step." pp. 550-558.

"Dupont and Greenhouse Gases" from The Wall Street Journal, 1/16/03.

"Chemical Manufacturers Elude Crackdown on Toxic Materials." from The Wall Street Journal, 5/21/03.

BUSINESS LEADERSHIP IN THE 21ST CENTURY.
Introduction to the Unit (Streaming Video --- 2 minutes).

Ethical Issues in Business: A Philosophical Approach.
    Paine, Lynn S. "Managing for Organizational Integrity." pp. 586-598.
    Senge, Peter M. "The Leader's New Work: Building Learning Organizations. pp. 599-613.

"When Older Workers Have Young Bosses" from The Desert Sun, 7/11/05.

 


 FOURTH PERIOD: [Due: JULY 26]

An outline of the expectations for and organization of the case study paper is posted on the website <http://academic.udayton.edu/LawrenceUlrich/313s05casestudy.html> (check the index page <http://academic.udayton.edu/LawrenceUlrich/> on the website for the course). Students will be asked to select a case for analysis. The case may be selected from the many cases in the textbook by Donaldson and Werhane or from the case book by Newton and Schmidt. For those living in Dayton there are also case books, which can be utilized, on reserve in the Roesch Library. You may choose any case you wish except that you may not choose a case that has been the subject of a question in the examinations or for discussion in a threaded discussion. [This applies even if you did not answer the question on the examination and if you did not participate in a particular threaded discussion.] A case study may also be done of a situation which has arisen in the work experience of the student or it may be a case drawn from another source. However, if this option is chosen, care must be taken that adequate information is available to provide a basis for a legitimate analysis of the issues involved in the situation. Contact the professor about this last option before undertaking the assignment. The paper should be about six (6) to ten (10) pages in double-spaced typewritten form. If students wish to utilize library resources in their local community, they are welcome to do so. The paper must show that the students have been able to integrate the information they have learned from the course.

AT THE TIME YOU SUBMIT YOUR CASE STUDY, PLEASE COMPLETE THE COURSE EVALUATION. CLICK HERE TO GO TO THE EVALUATION AND ITS SPECIFICATIONS.