Chapter 1
Introducing Straight Talk About Business Ethics: Where We’re Going and Why
Contents: (Please note: The Instructor Guide for every chapter will follow this structure.)
1. Chapter Outline
2. Discussion Questions – Teaching Notes
3. In-Class Exercises
4. Homework Assignments
5. Additional Resources
Chapter Outline
I Introduction
II The Financial Disaster of 2008
A. Borrowing Was Cheap
B. Real Estate Became the Investment of Choice
C. Mortgage Originators Peddled “Liar Loans”
D. Banks Securitized the Poison and Spread It Around
E. Those Who Were Supposed to Protect Us Didn’t
III Moving Beyond Cynicism
A. The MBA Oath
IV Can Business Ethics Be Taught?
A. Aren’t Bad Apples the Cause of Ethical Problems in Organizations?
B. Shouldn’t Employees Already Know the Difference between Right and
Wrong?
C. Aren’t Adults’ Ethics Fully Formed and Unchangeable?
Defining ethics
Good control or bad control?
V This Book Is About Managing Ethics in Business
VI Ethics and the Law
VII Why Be Ethical? Why Bother? Who Cares?
, A. Individuals Are About Ethics: The Motivation to be Ethical
B. Employees Care: Employee Attraction and Commitment
C. Managers Care About Ethics
D. Executive Leaders Care About Ethics
E. Industries Care About Ethics
F. Society Cares: Business and Social Responsibility
VIII The Importance of Trust
IX The Importance of Values
X How This Book Is Structured
XI Conclusion
XII Discussion Questions
XIII Exercise: Your Cynicism Quotient
Discussion Questions – Teaching Notes
1. Before reading this chapter, did you think of ethics as "just a fad?" Why or why
not? What do you think now? Why?
Probes to Stimulate Discussion
"If a roving reporter had stopped you last week on the street and asked you your
opinion of the attention being given in the media to business ethics, what would you
have said?"
"Would you have said the same thing if the street had been Wall Street?"
"Has your opinion changed since reading this chapter? Why?"
"What three points would you use to respond to someone who claims that business
ethics is a fad?"
2. Have you been cynical about business and its leaders? Why or why not?
(See the following cynicism exercise.) How does cynicism affect you, as a
business student or as a manager?
,Probes to Stimulate Discussion
"If you are cynical, name two instances that illustrate the source of your cynicism."
"What about each of these instances makes you cynical?"
"If you don't feel cynical, what is your opinion about the lapses in ethics represented
by such practices as sexual harassment disclosures, attempted bribes, or skimming
profits?”
"What does your score on the "Cynicism Quotient" mean to you? Were you
surprised by it?"
“How does cynicism affect you, as a business student or as a manager?”
"In what ways would the cynical attitudes of others influence your ethical behavior?"
3. Can you think of something that is legal but unethical, or something that is
ethical, but illegal?
Probes to Stimulate Discussion
“If something is legal but unethical, what do you think would be the best way to
‘manage’ it in the organization?”
“Is it appropriate for an individual to act on personal ethical beliefs (e.g., pro-life
beliefs) in a work organization? For example, would it be appropriate to picket your
company for offering health care benefits for abortion?”
4. Do you think business ethics is important? Why or why not?
Recall what was said in Chapter 1 about the cynicism of the public regarding business
and industry in light of the media coverage of their ethical lapses:
a. Public holds contemptuous mistrust of many professional groups
b. Prevalence of cynicism among managers and business students that
employers do or will require them to compromise their ethics
c. Causes of cynicism:
Businesses' preoccupation with gain
Lack of reinforcement of ethical behavior
Competition
, Acceptance of unethical practices within business and industry
Perception that only results are important
Ineffective enforcement of ethics codes
Although there are mixed research results regarding the claim that good ethics is good
business, it behooves any intelligent organization to get and maintain an ethical image if
they want to retain and increase their client base.
It is the social responsibility of organizations to conduct their business ethically, because
they are role models for their employees and society at large.
Business ethics gives an organization the knowledge and skills necessary to:
Set ethical standards for themselves and their employees
Establish policies and practices that support ethical behavior
Provide managers the tools to manage unethical behavior
Probes to Stimulate Discussion
"Regarding the responses above, what was the basis of response #1?" (Economic
concern)
"What was the basis of response #2?" (Moral concern)
"Have you observed situations where business ethics was important? Describe one.
What would have happened differently if the participants hadn't behaved ethically?"
"Briefly describe two different situations, one which relates an ethical behavior that
you have observed, the other which relates an unethical behavior that you have
observed."
5. Identify reasons why an organization would be interested in being ethical, and
classify those reasons in terms of whether they represent moral motivation or
economic motivation.
Possible Answers with Economic Motives
Ability to attract employees
Better public image
Industry pressure
Sentencing guidelines
Possible Answers with Moral Motives
The fair and right thing to do
Consistent with values of the organization
Introducing Straight Talk About Business Ethics: Where We’re Going and Why
Contents: (Please note: The Instructor Guide for every chapter will follow this structure.)
1. Chapter Outline
2. Discussion Questions – Teaching Notes
3. In-Class Exercises
4. Homework Assignments
5. Additional Resources
Chapter Outline
I Introduction
II The Financial Disaster of 2008
A. Borrowing Was Cheap
B. Real Estate Became the Investment of Choice
C. Mortgage Originators Peddled “Liar Loans”
D. Banks Securitized the Poison and Spread It Around
E. Those Who Were Supposed to Protect Us Didn’t
III Moving Beyond Cynicism
A. The MBA Oath
IV Can Business Ethics Be Taught?
A. Aren’t Bad Apples the Cause of Ethical Problems in Organizations?
B. Shouldn’t Employees Already Know the Difference between Right and
Wrong?
C. Aren’t Adults’ Ethics Fully Formed and Unchangeable?
Defining ethics
Good control or bad control?
V This Book Is About Managing Ethics in Business
VI Ethics and the Law
VII Why Be Ethical? Why Bother? Who Cares?
, A. Individuals Are About Ethics: The Motivation to be Ethical
B. Employees Care: Employee Attraction and Commitment
C. Managers Care About Ethics
D. Executive Leaders Care About Ethics
E. Industries Care About Ethics
F. Society Cares: Business and Social Responsibility
VIII The Importance of Trust
IX The Importance of Values
X How This Book Is Structured
XI Conclusion
XII Discussion Questions
XIII Exercise: Your Cynicism Quotient
Discussion Questions – Teaching Notes
1. Before reading this chapter, did you think of ethics as "just a fad?" Why or why
not? What do you think now? Why?
Probes to Stimulate Discussion
"If a roving reporter had stopped you last week on the street and asked you your
opinion of the attention being given in the media to business ethics, what would you
have said?"
"Would you have said the same thing if the street had been Wall Street?"
"Has your opinion changed since reading this chapter? Why?"
"What three points would you use to respond to someone who claims that business
ethics is a fad?"
2. Have you been cynical about business and its leaders? Why or why not?
(See the following cynicism exercise.) How does cynicism affect you, as a
business student or as a manager?
,Probes to Stimulate Discussion
"If you are cynical, name two instances that illustrate the source of your cynicism."
"What about each of these instances makes you cynical?"
"If you don't feel cynical, what is your opinion about the lapses in ethics represented
by such practices as sexual harassment disclosures, attempted bribes, or skimming
profits?”
"What does your score on the "Cynicism Quotient" mean to you? Were you
surprised by it?"
“How does cynicism affect you, as a business student or as a manager?”
"In what ways would the cynical attitudes of others influence your ethical behavior?"
3. Can you think of something that is legal but unethical, or something that is
ethical, but illegal?
Probes to Stimulate Discussion
“If something is legal but unethical, what do you think would be the best way to
‘manage’ it in the organization?”
“Is it appropriate for an individual to act on personal ethical beliefs (e.g., pro-life
beliefs) in a work organization? For example, would it be appropriate to picket your
company for offering health care benefits for abortion?”
4. Do you think business ethics is important? Why or why not?
Recall what was said in Chapter 1 about the cynicism of the public regarding business
and industry in light of the media coverage of their ethical lapses:
a. Public holds contemptuous mistrust of many professional groups
b. Prevalence of cynicism among managers and business students that
employers do or will require them to compromise their ethics
c. Causes of cynicism:
Businesses' preoccupation with gain
Lack of reinforcement of ethical behavior
Competition
, Acceptance of unethical practices within business and industry
Perception that only results are important
Ineffective enforcement of ethics codes
Although there are mixed research results regarding the claim that good ethics is good
business, it behooves any intelligent organization to get and maintain an ethical image if
they want to retain and increase their client base.
It is the social responsibility of organizations to conduct their business ethically, because
they are role models for their employees and society at large.
Business ethics gives an organization the knowledge and skills necessary to:
Set ethical standards for themselves and their employees
Establish policies and practices that support ethical behavior
Provide managers the tools to manage unethical behavior
Probes to Stimulate Discussion
"Regarding the responses above, what was the basis of response #1?" (Economic
concern)
"What was the basis of response #2?" (Moral concern)
"Have you observed situations where business ethics was important? Describe one.
What would have happened differently if the participants hadn't behaved ethically?"
"Briefly describe two different situations, one which relates an ethical behavior that
you have observed, the other which relates an unethical behavior that you have
observed."
5. Identify reasons why an organization would be interested in being ethical, and
classify those reasons in terms of whether they represent moral motivation or
economic motivation.
Possible Answers with Economic Motives
Ability to attract employees
Better public image
Industry pressure
Sentencing guidelines
Possible Answers with Moral Motives
The fair and right thing to do
Consistent with values of the organization
