BADM Business Ethics and Law George Washington University School of Business
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1 Course Administration Professor: Kirsten E. Martin Office: Funger Hall 615A Phone: Course Materials BADM Business Ethics and Law George Washington University School of Business Ethical Issues in Business : A Philosophical Approach (8e). Donaldson & Werhane. Essentials of Business Law and the Legal Environment, 10th Edition, Mann & Roberts. The ISBN for your text (which only includes a portion of the chapters) is This partial textbook is substantially cheaper than the full version. Lynn Stout Shareholder Value Myth Business Law Website: Great for materials and ideas for the presentations. Course Goals The purpose of this course is: (1) to introduce you to important frameworks in business ethics and the fundamentals of business law, (2) to allow you to practice assessing debating, writing about, and reaching consensus on ethical issues in business, (3) to provide stories of real and fictional ethical issues through which you can gain insights for your own experiences, and (4) to appreciate the role of ethics as central in business decision making. Grading/Assignments 1. Two case write-ups (10%) are due before the business ethics exam/paper. The write-ups (1-2 pgs) will analyze the case assigned for that day using the theory also assigned for that day. You are to give me our assessment of the issue using reasoning from the course. I will grade you on your ability to understand and apply the ethical framework. The write-ups are due before the class discussion that day in other words you do not get the benefit of the class discussion before completing the write-up. 2. Student presentations (15%) will begin after spring break during the business law portion of the class. Groups of 2-3 students will analyze a unique example using the theory assigned for that particular day. For example, if you are presenting for the class on agency, you would give an example that is close to the students to illuminate agency theory e.g., you have your brother mow the lawn 1
2 that you were hired to mow. In addition, you should be prepared to take a 3-4 questions from the class on your issue and your assessment. The presentation is due to me the day prior to your presentation. I will also be available to discuss the topic and topic ideas. The presentation should make 4 points. 1. The issue 2. How the issue exemplifies the legal theory for that day 3. How is would be analyzed using an ethical framework (using concepts from the course) 4. Actions to be taken and why. 3. Your participation (25%) is important to this class as we will run the classroom as a case discussion particularly for the first half. We will rely upon you and your peers to discuss and question the cases and examples in order to identify lessons, develop moral awareness and empathy, and practice arguing about ethical issues. In order to get the most out of a case discussion, everyone must be ready, attentive, and participating. At a minimum, I expect you to attend class and prepare readings in advance; that would constitute an entry-level C. In order to receive a better grade, you must participate. Participation is graded based not on the quantity of comments, but also on the quality of the comments to move the conversation forward, to build on what others have said, and to integrate the readings with the case. Your participation will make this class what it is and will help your colleagues think through the ethical and legal issues. Actions that hinder your ability to be attentive, respectful, and participating hurt your grade. For example, if you are texting in class, I simply write text in for your grade for that particular day. If you have questions about participating, please ask and we can work on ways to make sure you participate. You will receive a mid-course grade and feedback (from me and anonymously from your peers) on your participation in order to ensure there are no surprises. 4. The business ethics paper (25%). Each student will write a case/analysis paper on an ethical issue. Unconventional issues or assessments are welcome, and I will be happy to help anyone choose a topic and focus. The paper should be 6-8 pages. The paper must have headings that correspond to the 6- step model of decision making and/or an ethical theory from the class. We will talk more about the paper closer to the due date. The goal of this assignment is to use a theory or theories from the class to analyze a real ethical dilemma. I will help you as much as possible with this assignment and will make time during office hours to give in-person feedback on the topic as well as over Finally, there is a final exam (25%) during the exam period focusing on the business law portion of the class. 2
3 Course Schedule MODIFIED IN YELLOW Business Ethics and Law - Spring Jan Introduction CASE: Competitive Advantage (handout) 2 16-Jan Classics 3 21-Jan NO CLASS MLK Jr DAY 4 23-Jan CASE: Merck & Co Jan Stakeholder Theory 6 30-Jan CASE: H.B. Fuller in Honduras: Street Children 7 4-Feb CASE: ExxonMobil and the Chad/Cameroon Pipeline, 8 6-Feb Fairness and Social Contracts 9 11-Feb CASE: Bonuses and Bailouts Feb Moral Muteness Feb NO CLASS Feb WATCH/READ ENRON (office hrs only) Feb Perfect Storm ENRON Feb CASE: Arthur Kelly, Italian Tax Mores 15 4-Mar REVIEW 16 6-Mar PAPER DUE Mar NO CLASS Mar NO CLASS Mar NO CLASS Mar Introduction Mar Contracts: Basics of an Offer Mar TBD 23 1-Apr Contracts: Acceptance & Capacity Contracts: Consideration 24 3-Apr Written Contracts & Remedies 25 8-Apr Contract Remedies Apr NO CLASS Apr Negligence (Torts) Apr Intentional Torts Apr Agency Apr Summary Business Law Apr TBD 32 1-May FINAL CLASS -- Desginated Monday 3
4 Course Assignments 1 CASE: Competitive Advantage (Handout) 2 Ethical Frameworks. 3 Approaches - Rules, Consequences, Virtues. Rdg: "Introduction to Ethical Reasoning" by Donaldson and Werhane, Rdg: Gusafson, Andrew. Mill and Utilitarianism Rdg: Norm Bowie "A Kantian Approach to Business Ethics." The first reading gives an overview of the other two and covers the major ethical frameworks. 3 NO CLASS 4 CASE: Merck 1. Does Merck have a moral obligation to proceed (or not to proceed)? 2. What are Merck s responsibilities to its various stakeholders? 3. What would you have done if you were Merck? 5 Stakeholder Theory Rdg: Freeman, Managing for Stakeholders Rdg: Robert Solomon "Corporate Roles, Personal Virtues: An Aristotelean Approach to Business Ethics" 6 CASE: HB Fuller 7 CASE: ExxonMobil 1. Who are the most important stakeholders in the Fuller Case? 2. Is Fuller acting in a morally responsible manner? How so? 1. How would you characterize ExxonMobile s commitment to the environment? 2. Is this project an attractive opportunity for ExxonMobil? 3. What are the biggest risks and threats they face? 4. What stakeholder claims are most important for managers to consider? 5. Which stakeholders have the most to gain or lost by ExxonMobil s decision? 8 Fairness and Justice Rdgs: Intro, Rawls, Nozick. 9 CASE: Bailouts and Bonuses Would paying these traders be fair? Why or why not? 2. What should Matt do? Why? 10 Ethics and Organizations Rdg: Moral Muteness of Managers CASE: Parable of the Sadhu 11 NO CLASS 12 WATCH/READ ENRON on your own. Office hours only. 13 CASE: Enron. There are three options: (a) the case in the 8 th edition of the textbook, (b) MacLean s The Smartest Guys in the Room (book), (c) The Smartest Guys in the Room (movie/documentary) 4
5 1. Pick one item that Enron did wrong and explain why it was unethical/unfair using one of the ethical frameworks covered in class. 14 CASE: Italian Tax Case 1. Did the American manager do anything wrong? Why or why not? 2. What would you have done in his place? 15 REVIEW in CLASS if taking the exam, the take-home exam will be handed out. 16 PAPER/Exam DUE 17 NO CLASS SPRING BREAK 18 NO CLASS - SPRING BREAK **** Participation Due March 6**** 19 NO CLASS 20 Introduction to Business Law Rdg: M&R Chapter 1 : Introduction to Law, Rdg: M&R Chapter 3: Civil Dispute Resolution 21 Contracts M&R Chapter 9: Introduction to Contracts M&R Chapter 10: Mutual Assent 22 TBD 23 Invalidation and Consideration M&R Chapter 11: Conduct Invalidating Assent M&R Chapter 12: Consideration 24 Written Contracts M&R Chapter 13: Contracts in Writing 25 Contract Remedy M&R Chapter 14: Contract Remedies 26 NO CLASS 27 Negligence M&R Chapter 8: Negligence and Strict Liability 28 Intentional Torts M&R Chapter 7: Intentional Torts 29 Agency Theory M&R Chapter 17: Relationship of Principal and Agent M&R Chapter 18: Relationship with Third Parties 30 Business Law Summary 31 TBD 32 LAST CLASS Designated Monday 5
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