MANAGEMENT
560
BUSINESS
ETHICS
Fall,
2002 (Module 1)
Professor
Doug Schuler
http://www.ruf.rice.edu/~schuler
Class Section 2: Tu-Th,
Section 1: Tu-Th,
Section 3: Tu-Th,
Doug Schuler Office: 348 New Bldg.;
Tel. 713. 348-5472; Email: schuler@rice.edu
Office
Hours: Wednesdays,
Course Objectives
This
course will be successful if it furthers your questioning and understanding of
business organizations. We probe the bases for managerial actions, particularly
concerning ethical, legal and economic rationales. We also investigate
decision-making at different levels of analysis. The intended result is a set
of experiences to develop your skills in managing and studying complex
organizations. Finally, this course will not be successful if it is not
interesting and fun.
Course Materials
James
Rachels. 2003. The
Elements of Moral Philosophy. 4th ed.
Reading packet. [New Bldg].
Assignments
Class Participation
reflects the quality and quantity of your contributions during the class
period. You are expected to be fully prepared to cover the readings and cases
assigned for the session. There will be opportunity for you not only to recite
the facts but also to highlight key points, ideas, assumptions, and
contradictions in the case. You are also responsible for the comments by your
classmates; if you think that someone has made an unfounded assertion, you
should (politely) make it known and offer an alternative explanation. We are not looking for rude and personal
verbal attacks, but for enlightened and vigorous discourse. Class participation
also reflects respect for your colleagues. I will assume that if you do not
listen to the comments of a classmate that you do not respect her or him and
will grade you accordingly. Additionally, I may call upon you in class with
certain questions. Superior marks (90% and higher) for participation reflect
consistent efforts made over the term in speaking, answering and listening
skills. Poor marks (below 70%) reflect, not inclusively, consistent lack of
participation or signs of disrespect for your colleagues. Class attendance is a
necessary (but not sufficient) part of the class participation component of
your grade. Excessive absences reduce the grade you will receive. Abuse of
computers in class (see below) also results in a reduction in class
participation.
First writing project
is an individual assignment based upon a caseshort on writing (2 pages) but
long on thinking. Details of the case
and questions will be posted soon.
There
is a final examination covering the
primary concepts from the lectures and the readings. You will be required to
use these concepts to critically analyze a case situation.
Grading
The
breakout for the final grades is the following:
Assignment Percentage
Class
participation 10
First
writing project 30
Final
exam 60
---------
100%
====
Grade Calculation
Students
are graded relative to each other. Good work will be accorded a B+, standard
work a B. Outstanding and substandard work will fall above or below these
levels accordingly. In general, it is difficult to get A's. Final course grades
are calculated as a weighted-average 100% numerical scale and reported to the
Registrar as a letter grade. To calculate the final course grade, all letter
grades are converted to a 100% numerical scale using a fixed formula.
A+
>
97 C+ = 77
A = 93 C = 73
A-
=
90 C- = 70
B+
=
87 D+ = 67
B = 83 D = 64
B-
=
80 D- = 60
F <
60
Under
this system, rounding is not used. A final course grade of 89.99 is a B+ and
not an A-. No appeals will be entertained on the basis of rounding. Only
calculation errors are a basis for re-grading.
Blind Grading
On
your First Writing Project and your Final Exam you should write your student ID
number (legibly!) in lieu of your name. You can sign the Honor Code (see below)
on the First Writing Project with your ID number. There will be a separate page
for the code on the Final Exam.
Honor Code
All
work required in this course is covered by
All
written assignments submitted to the instructor must carry the signed Honor
Code pledge, "On my honor, I have neither given nor received any aid on
this paper." (ID# or signature). Any
assignment not so signed will be returned to the student ungraded.
You
may and are encouraged to discuss cases and readings with other students. This
is a critical part of the learning process. However for the writing assignment
and the final exam you are not permitted to share or compare your analysis
until after each assignment is completed. IMPORTANT:
Section 2 students are not to discuss immediately after class the
material covered with Section 1 or 3 students until these students have
completed class for that day;; likewise for Section 1 students with Section 3
students.
Please
use a computer printer for the written assignment.
Any
student with a disability requiring accommodations in this class should speak
with me as soon as possible. All discussions will remain confidential. Students
with disabilities should also contact the Disabled Student Services in the
Use of Computers in Class.
You are welcome to use your computer in class to take notes, provided that it
is not disruptive to others. Unless directly instructed, you are not to surf
the web, send or receive e-mail, participate in any discussion groups, or do
any assignments not related to the discussion at hand.
Daily Assignments
You
will see the daily assignments on the following SCHEDULE. Generally, to prepare for each class you have
a set of readings and a case.
The readings and the case are necessary to prepare for class. It is important not only to read through the
case but to think about both the study questions and the connection between the
case and the readings.
For
each case, there are some "Questions."
These are suggestive rather than comprehensive.
It is a way to focus us on some central topics in each case. You are not
required to turn in your responses to these questions.
SCHEDULE
Tu Aug 27 Class #1 Introduction: Whats going on in here and out there?
Exercise and
discussion.
Amitai Etzioni,
When it comes to ethics, B-schools get an F. Washington Post,
Questions: Should
there be an ethics course in the MBA program? If so, what should it do?
Th Aug 29 Class #2 Legal and Moral Responsibilities of Managers
Constance
E. Bagley. What Insider Trading Is. Managers and the Legal Environment.
G.
Richard Shell. When is it legal to trade on inside information? MIT Sloan Management Review.
Fall 2001: 8990.
Doug Schuler. Principal-Agent Relationship. Note.
Garry B. Trudeau. Insider's Saga. Doonesbury. 1987/88.
James Rachels. The Idea of a Social Contract. The Elements
of Moral Philosophy. 2003:
Case: R.
Foster Winans (Cornell University, 1988) pp. 112.
Questions: Evaluate
the Kidder Peabody investigation. How
and why was the SEC widening the scope of insider trading? What do you think of the penalties?
Tu Sep 3 Class #3 The Moral Manager
James
Rachels. Psychological
Richard
Dawkins. Why are People? The Selfish Gene. 1989: pp. 111.
Case:
Questions: What
were Frank Armani's moral obligations?
What is the strongest moral claim upon Armani? Should Armani meet with Mr. Petz?
THE
FIRST WRITING ASSIGNMENT (FORD PINTO) IS DUE AT THE BEGINNING OF YOUR SECTION
ON THURSDAY, SEPTEMBER 5.
Th Sep 5 Class #4 The Ethics of Cost-Benefit Analysis
Christopher D. Stone, Why the market cant do it.
from Where the
law ends: the social control of corporate behavior, 1975, pp. 8892.
The Price of Life. The Economist.
Mark
Dowie, Pinto Madness, Mother Jones. Sep/Oct 1977. http://www.motherjones.com/mother_jones/SO77/dowie.html
James
Rachels, The Utilitarian
Approach, The Elements of Moral
Philosophy. 2003:
Case: Managing
product safety: The Ford Pinto (HBS 383129)
Question: Why did Ford put this car on
the road? Was it ethical for Ford to
sell this car? Could Ford have prevented
this incident?
Doug
Schuler. Sex Harassment. Sex Discrimination.
Note.
Jill-in-a-box. The Economist.
displayStory.cfm?Story_ID=S%26%29H%3C%2FRQ%5F%2A%0A
James
Rachels. Subjectivism in Ethics.
The Elements of Moral
Philosophy. 2003:
Case: Sally
Seymour, The Case of the Mismanaged Ms. Harvard Business Review. 1987: pp.
7787.
Questions: What should the human resources
director do about Ruth's case? Evaluate
Triton's corporate policy and complaint review process on affirmative
action. Does it need any changes? What should Ruth do?
William
C. Norris, Social needs and business opportunities, from New Frontiers for business leadership. 1983.
David
Freudberg, The Corporate
Conscience: Money, Power, and Responsible Business. 1986.
Doug
Schuler. Stakeholders. Duties of
Directors and Managers. Notes. 2002.
James
Rachels, The Challenge of
Cultural Relativism. The
Elements of Moral Philosophy. 2003:
Case: H.B.
Fuller in
Questions: Should
HB Fuller take its glue off of the market in
Tu
Sep 17 Class #7 Managerial
Decision-Making: Other Paradigms
Jennifer
L. DeNicolis, & Donald A. Hantula. Sinking
shots and sinking costs? Or, how long can I play in the NBA?
Case: Merck
& Co., Inc. (A) (Business
Questions: Apply Allison's Models I, II, and III to
evaluate the Merck case. Should Dr. Vangelos fund the
research project?
Wed Sep 18 Class #7.5** Royal Dutch Shell and Shell Oils Ethics Program
Guest Lecture: Jo Pease, Director, Ethics and Compliance
Office.
Shell Oil Company,
Shell
Oil Company. Code of Conduct: Shell in
the
James
Rachels. The ethics of virtue.
**Special
time and room:
Th Sep 19 Class #8 Meltdowns and (Maybe) Remedies
Public
Law 107-204. Sarbanes-Oxley Act of 2002. 107th Congress of the
James
Rachels. What would a satisfactory moral theory be
like? The Elements of
Moral Philosophy. 2003:
Questions:
What are the major provisions of the Sarbanes-Oxley Act? Do you think they will
achieve their goals? What type of behavior are they premised upon? How might
the law change if managers and organizations behaved differently?
FINAL
EXAM IS ON
EXAM
WILL BE HELD IN NEW BUILDING, ROOMS 212, 214, 312, 314, & 318.