John R. Boatright
 

   
GB 445 - Ethical Aspects of Corporate Decision Making
Graduate School of Business
Loyola University Chicago
 
John R. Boatright 
Fall Quarter 2003
 

Description

This is an advanced business ethics course that uses readings and case studies to explore issues in the management of ethics in organizations. The objective of this course is to develop an understanding of the challenges of creating and maintaining an ethical corporate climate and of preventing significant ethical and legal misconduct. An assumption of this course is that being an effective manager or leader involves not merely an understanding of what is ethical behavior but an ability to produce ethical behavior in an organizational environment.
Prerequisite: MGMT 441 Business Ethics or the equivalent.

Requirements

The course material consists primarily of readings and case studies, and the class sessions are conducted mainly by discussion of this material. Consequently, participation in class discussion is an important part of the learning experience. In addition to the assigned course material and class discussion, the requirements for the course include a research project conducted in groups. The research project involves a written report and a brief class presentation. The grade for the course is determined as follows: participation 60%, the research project 40%.
 

Office Hours

Office hours are maintained on Monday and Tuesday from 9:00 a.m. to 12:00 p.m. and from 1:00 to 4:00. Other times by appointment.

Office: 25 E. Pearson, Room 1379.
Telephone: 312.915.6994.
Fax: 312-915-6988.
E-mail: jboatri@luc.edu.

Course information, including this syllabus, is available through the Internet at: http://homepages.luc.edu/~jboatri.

Reading

The course material is contained in two sets of articles and cases and in one book. One set of articles and cases is produced by the Harvard Business School and another set by the Loyola copy center. The book is Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Blackwell Publishers, 2002). This reading is indicated in the schedule as the Harvard packet (H), the Loyola packet (L), and The Blackwell Guide (B). Be sure to purchase all three items.

Schedule
   
August 25 - Introduction  
   
  • Badaracco and Webb, "Business Ethics: A View from the Trenches" H
  • Badaracco, "Business Ethics: Four Spheres of Executive Responsibility" H
  • Paine, "Managing for Organizational Integrity" H
  • Kathryn McNeil (A) H
   
September 5 - Ethics and Leadership
   
  • Ciulla, "Trust and the Future of Leadership" B
  • Morsing and Pruzan, "Values-Based Leadership" L
  • Senge, "The Leader's New Work: Building Learning Organizations" L
   
September 8 - Ethics in Organizations
   
  • Messick and Bazerman "Ethical Leadership and the Psychology of Decision Making" L
  • Jackall, "Moral Mazes: Bureaucracy and Managerial Work" H
  • Darley, "How Organizations Socialize Individuals into Evildoing" L
  • The Playskool Travel-Lite Crib (A & B) [handout]
   
September 15 - Corporate Ethics Programs
   
  • Weaver and Trevino, "Compliance and Values Oriented Ethics Programs" L
  • Trevino, et al., "Managing Ethics and Legal Compliance: What Works and What Hurts" H
  • Verkerk, et al., From Responsible Management to Responsible Organizations" LP
  • Sears Auto Centers (A) H
   
September 22 - Non-Profits and Healthcare
   
  • Jeavons, "Ethics in Nonprofit Management: Creating a Culture of Integrity" L
  • O'Neill, "Ethical Dimensions of Nonprofit Administration" L
  • Werhane, "Business Ethics, Organization Ethics, and Systems Ethics for Health Care" B
  • The American Medical Association-Sunbeam Deal (A) H
   
September 29 - Corporate Social Responsibility
   
  • Frank, "Can Socially Responsible Firms Survive in a Competitive Environment?"L
  • Dunfee and Hess, "The Legitimacy of Direct Corporate Humanitarian Investment" L
  • Hess, et al., "The Next Wave of Corporate Community Involvement: Corporate Social Initiatives" L
  • Merck Global Health Initiatives (A) H
   
October 6- The Purpose of the Corporation
   
  • Blair, "Whose Interests Should Corporations Serve?" L
  • Boatright, "Ethics and Corporate Governance: Justifying the Role of Shareholder" B
  • Jones, et al., "Stakeholder Theory: The State of the Art" B
    Marriott Corporation (A) H
   
October 13- Managing in a Global Environment
   
  • Donaldson, "Values in Tension: Ethics Away from Home" H
  • Sethi, "Standards for Corporate Conduct in the International Arena L
  • Mirvis, "Transformation at Shell L
  • Royal Dutch/Shell in Nigeria (A) H
   
October 20 - Accounting and Corporate Governance
   
  • Armstrong, "Ethical Issues in Accounting" B
  • Bentson, et al., "What's Wrong-and Right-with Corporate Accounting and Auditing in the United States" L
  • Brooks, "Governance, Accounting, and Auditing Post-Enron" [handout]
   
October 27  
  Presentation of Research Projects

Sources

  • Armstrong, Mary Beth, "Ethical Issues in Accounting," in Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Malden, MA: Blackwell Publishers, 2002.
  • Badaracco, Joseph L., "Business Ethics: Four Spheres of Executive Responsibility," California Management Review (Spring 1992), 64-79.
  • Badaracco, Joseph L., and Webb, Allen P., "Business Ethics: A View from the Trenches," California Management Review (Winter 1995), 8-28.
  • Bentson, George, Bromwich, Michael, Litan, Robert E., and Wagenhofer, Alfred, "What's Wrong-and Right-with Corporate Accounting and Auditing in the United States," in Following the Money: The Enron Failure and the State of Corporate Governance (Washington, DC: AEI-Brookings Joint Center for Regulatory Studies, 2003).
  • Blair, Margaret M., "Whose Interests Should Corporations Serve?" in Ownership and Control: Rethinking Corporate Governance for the Twentieth-First Century (Washington, DC: The Brookings Institution, 1995).
  • Boatright, "Ethics and Corporate Governance: Justifying the Role of Shareholder," in Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Malden, MA: Blackwell Publishers, 2002.
  • Brooks, Leonard J., "Governance, Accounting, and Auditing Post-Enron," in Business and Professional Ethics for Accountants (Cincinnati:South-Western College/West, 2003).
  • Ciulla, "Trust and the Future of Leadership," in Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Malden, MA: Blackwell Publishers, 2002.
  • Darley, "How Organizations Socialize Individuals into Evildoing," in David M. Messick and Anne E. Tenbrunsel, eds., Codes of Conduct: Behavioral Research into Business Ethics (New York: Russell Sage Foundation, 1996).
  • Donaldson, Thomas, "Values in Tension: Ethics Away from Home," Harvard Business Review (September-October 1996), 48-62.
  • Dunfee, Thomas W., and Hess, David, "The Legitimacy of Direct Corporate Humanitarian Investment," Business Ethics Quarterly, 10 (2000), 95-109.
  • Frank, Robert H., "Can Socially Responsible Firms Survive in a Competitive Environment?" in David M. Messick and Anne E. Tenbrunsel, eds., Codes of Conduct: Behavioral Research into Business Ethics (New York: Russell Sage Foundation, 1996).
  • Hess, David, Rogovsky, Nikolai, and Dunfee, Thomas W., "The Next Wave of Corporate Community Involvement: Corporate Social Initiatives," California Management Review (Winter 2002), 110-125.
  • Jackall, Robert, "Moral Mazes: Bureaucracy and Managerial Work," Harvard Business Review (September-October 1983), 118-130.
  • Jeavons, Thomas H., "Ethics in Nonprofit Management: Creating a Culture of Integrity," in Robert D. Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management (San Francisco: Jossey-Bass, 1994).
  • Jones, et al., "Stakeholder Theory: The State of the Art," in Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Malden, MA: Blackwell Publishers, 2002.
  • Messick, David M. and Bazerman, Max, "Ethical Leadership and the Psychology of Decision Making," Sloan Management Review (Winter 1996), 9-22.
  • Mirvis, Philip H., "Transformation at Shell," Business and Society Review, 105 (2000), 63-84.
  • Morsing, Mette, and Pruzan, Peter, "Values-Based Leadership," in Laszlo Zsolnai, ed., Ethics in the Economy: Handbook of Business Ethics (Bern: Peter Lang, 2002).
  • O'Neill, Michael, Ethical Dimensions of Nonprofit Administration (San Francisco, CA: Institute for Nonprofit Organization Management, 1992).
  • Paine, Lynn S., "Managing for Organizational Integrity," Harvard Business Review (March-April, 1994), 106-17.
  • Senge, Peter M., "The Leader's New Work: Building Learning Organizations," Sloan Management Review (Fall 1990), 7-23.
    Sethi, S. Prakash, "Standards for Corporate Conduct in the International Arena," Business and Society Review, 107 (2002), 20-40.
  • Trevino, Linda Klebe, Weaver, Gary R., Gibson, David G., and Toffler, Barbara Ley, "Managing Ethics and Legal Compliance: What Works and What Hurts," California Management Review (Winter 1999), 131-152.
  • Verkerk, Maarten, Leede, Jan de, and Nijhof, Andre H., "Responsible Management to Responsible Organizations," Business and Society Review, 106 (2001), 353-378.
  • Weaver, Gary R., and Trevino, Linda Klebe, "Compliance and Values Oriented Ethics Programs: Influences on Employees' Attitudes and Behavior," Business Ethics Quarterly, 9 (1999), 315-335.
  • Werhane, Patricia H., "Business Ethics, Organization Ethics, and Systems Ethics for Health Care," in Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Malden, MA: Blackwell Publishers, 2002.