Ivey Publishing

Business Ethics: A Managerial Approach

Wicks, A.C., Freeman, R.E., Werhane, P.H., Martin, K.E.,1e (United States, Pearson, 2010)
Prepared By Michael Wood, Ph.D. Student (Strategy)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Language of Ethics

Wee Ling Loo

Product Number: 9B09C007
Publication Date: 3/31/2009
Length: 2 pages

T.J., an undergraduate at a business school, was upset to find a group mate's contribution to his group project containing plagiarized and poorly paraphrased content (also without any citation as to source in some instances). T.J. and four others had to work with K.C., the errant group member, on three group projects that together made up 30 per cent of the final mark for the course. In particular, T.J. was upset by the shoddy corrections provided by K.C. when his error was highlighted. T.J. was also appalled at K.C.'s nonchalant attitude towards plagiarism and the group projects, especially after discovering that K.C. had done the same on their first group project. T.J. felt strongly that the matter should be brought up to the course professor but two of his group mates disagreed, fearing that the group harmony would be adversely affected, thus jeopardizing their last group project, which carried significantly higher weight at 20 per cent. The remaining two group mates did not seem to consider the matter a serious one. T.J. wondered what the right thing to do would be. This case was written for use in the introductory class to a business ethics course. However, it has potential for use in lessons on negotiation, conflict resolution and team dynamics. The case is based on an actual occurrence but names have been changed to provide anonymity. The subject of plagiarism and a poorly contributing group member to group assignments is one that resonates deeply with students pursuing any course that emphasizes group work as a necessary component of the course assessment. The case has practical relevance to the working world inasmuch as the incident can occur in that context. Apart from being a useful opener to any course on ethics, the case also serves as a good reminder to students about plagiarism. It provides opportunities for clarification and discussion on what exactly constitutes plagiarism and the professors'/universities' stand on the matter.

Teaching Note: 8B09C07 (6 pages)
Industry: Educational Services
Issues: Ethical Issues; Plagiarism; Whistleblower; Group Behaviour
Difficulty: 2 - Intro/Undergraduate

Klaus Meyer

Product Number: 9B09M001
Publication Date: 1/9/2009
Revision Date: 5/3/2017
Length: 13 pages

The case outlines the conflicting ethical demands on a Danish pharmaceuticals company, Novo Nordisk, that is operating globally and is aspiring to high standards of corporate social responsibility. A recent report alleges that multinational pharmaceutical companies routinely conduct trials in developing countries under alleged unethical conditions. The company's director reflects on how to respond to a request from a journalist for an interview. This triggers a discussion on the appropriate ethical principles and how to communicate them. As a company emphasizing corporate responsibility, the interaction with the media presents both opportunities and risks to Novo Nordisk. The case focuses on clinical trials that are required to attain regulatory approval in, for example, Europe and North America, and that are conducted at multiple sites around the world, including many emerging economies. Novo Nordisk has implemented numerous procedures to protect its various stakeholders, yet will this satisfy journalists and non-governmental organizations, and how should the company communicate with these stakeholders?

Teaching Note: 8B09M01 (11 pages)
Industry: Manufacturing
Issues: Location Strategy; Ethical Issues; Emerging Markets; Research and Development
Difficulty: 4 - Undergraduate/MBA

Andrew Karl Delios

Product Number: 9B06M089
Publication Date: 11/6/2006
Length: 7 pages

This case presents the situation faced by three people in the United States as they exit a restaurant in California. They are discussing whether tipping is a form of private sector corruption, similar to public sector corruption that pervades many countries worldwide. Discussion ensues on what constitutes corruption, and whether private and public sector corruption are required and ethical business practices.

Teaching Note: 8B06M89 (9 pages)
Industry: Manufacturing
Issues: China; Ethical Issues; Political Environment; International Business; Internationalization
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
A Look at the Sources of Ethical Problems in Business and How to Prevent Them

Niraj Dawar, Jordan Mitchell

Product Number: 9B06A020
Publication Date: 7/27/2006
Revision Date: 1/9/2008
Length: 24 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2006 European Foundation for Management Development (EFMD) Case Writing Competition. In early 2005, Nestle is in the midst of a decision: whether or not the Fairtrade mark should be applied on Partners' Blend, a new instant coffee product to be marketed in the growing UK 'ethical' coffee segment. Application of the Fairtrade mark on the Partners Blend product means that Nestle must go against its historical position of not offering minimum guaranteed prices to coffee farmers. As part of their deliberations, Nestle executives must consider their coffee sourcing program at large, their corporate social responsibility framework, Nescafe and corporate Nestle branding, the UK market and the potential consumer benefits or backlash that could result from releasing such a product.

Teaching Note: 8B06A20 (12 pages)
Industry: Manufacturing
Issues: New Products; Corporate Responsibility; Brand Management; Product Strategy
Difficulty: 4 - Undergraduate/MBA

Christina A. Cavanagh, Ken Mark

Product Number: 9B01C007
Publication Date: 4/23/2001
Revision Date: 5/18/2017
Length: 4 pages

OrangeWerks, an entrepreneurial company that creates software applications, is preparing to present to venture capital firms for its first major round of funding. However, during routine network maintenance, the network administrator becomes aware that the company may not have purchased the original software used to create the company's product, and that government workplace safety insurance was not in place. He must decide how to proceed with the knowledge by assessing available options and judging the stakeholder impact, as well as his career implications.

Teaching Note: 8B01C07 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Action Planning and Implementation; E-Commerce; Organizational Behaviour; Ethical Issues
Difficulty: 4 - Undergraduate/MBA

Joerg Dietz, Xin Zhang

Product Number: 9B01C029
Publication Date: 10/18/2001
Revision Date: 12/16/2009
Length: 9 pages

NES is one of Germany's largest industrial manufacturing groups. The company wants to set up a holding company to facilitate its manufacturing activities in China. They have authorized representatives in their Beijing office to draw up the holding company application and to negotiate with the Chinese government for terms of this agreement. In order to maximize their chances of having their application accepted, the NES team in Beijing hires a government affairs coordinator who is a native Chinese and whose professional background has familiarized her with Chinese ways of doing business. NES's government affairs coordinator finds herself in a difficult position when she proposes that gifts should be given to government officials in order to establish a working relationship that will better NES's chance of having its application approved. This method of doing business is quite common in China. The other members of the NES team are shocked at what would be considered bribery and a criminal offence in their country. The coordinator must find a practical way to bridge the gap between working within accepted business practices in China and respecting her employers' code of business ethics. The complementary (B) case (9B01C030) gives a brief summary of the eventual solution to this problem.

Teaching Note: 8B01C29 (9 pages)
Industry: Manufacturing
Issues: China; Ethical Issues; Cross Cultural Management; Management Behaviour; International Business
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Ethics, Stakeholders, Corporate Strategy, and Value Creation

Terence Tsai, Borshiuan Cheng, Shubo Philip Liu

Product Number: 9B08M077
Publication Date: 1/12/2009
Revision Date: 6/11/2009
Length: 20 pages

As the economies of Greater China continued the process of rapid transformation and industrialization, newly industrialized countries (NICs), such as Taiwan and mainland China, experienced dramatic changes in their business settings. Accompanying the industrialization of east Asian economies, business ethics were in a state of flux, as traditional values were often swept aside to justify profit maximization. In this ever-changing business environment, what were the characteristics and benefits of Chinese business ethics? What role did they play? Could an integrity-based business practice serve as a source of competitive advantage? What business settings were supporting business ethics? Few studies have paid attention to these kinds of questions. Sinyi was one of the most successful real estate agent companies in Taiwan and mainland China. From a Confucian perspective, Sinyi's founder cultivated a people-centered culture for both its customers and employees. By applying business ethics as a central differentiating strategy, Sinyi established an excellent corporate image and was regarded by many as the role model of responsible business. Sinyi service was regarded as premier in Taiwan. Its customer satisfaction rating was also far above the industry average. Trustworthiness and fair dealing were the company's guiding principles. This was in contrast to the-then chaotic environment of the real estate industry in Taiwan, where basic trust between buyers and sellers was rare and deceit existed everywhere. Focusing on using business ethics as a central differentiating strategy, Sinyi had grown into Sinyi Group, which successfully integrated upstream, midstream and downstream industries and established a highly-acclaimed business model. Over the past two decades, Sinyi Group had expanded its operations to mainland China and forged an alliance with global real estate brokerage Coldwell Banker. The case can be used for MBA and EMBA courses in business ethics (in a module on culture and business ethics) and strategic management (in a module on strategic business ethics). This case should provoke holistic thinking and discussion on sustainable business, Confucian entrepreneurship and the relationship between business ethics and competitive advantages.

Teaching Note: 8B08M77 (13 pages)
Industry: Real Estate and Rental and Leasing
Issues: Ethical Issues; Sustainability; Management Science and Info. Systems; Human Resources Management; Corporate Social Responsibility; Differentiation; Strategy; CEIBS
Difficulty: 5 - MBA/Postgraduate

Diane M. Phillips, Jason Keith Phillips

Product Number: 9B07M049
Publication Date: 10/24/2007
Revision Date: 9/8/2009
Length: 10 pages

This case is designed to examine the issue of corporate social responsibility in a small firm. The key issue is how a small organization can maintain its strong social responsibility philosophy when (a) the organization is growing, (b) the environment in which the organization exists is extremely competitive, and (c) the entrepreneurial visionary who started the firm is getting ready to step down. The case describes the dilemma the owner of White Dog Cafe has regarding the transition of current management to the new management team and the development of the White Dog Cafe's social responsibility philosophy, the challenges that other socially responsible organizations have had as they have grown, and the strategies that the company has used to successfully keep its philosophies and goals at the forefront of its business operations.

Teaching Note: 8B07M49 (6 pages)
Industry: Accommodation & Food Services
Issues: Ethical Issues; Corporate Culture; Entrepreneurial Business Growth; Social Marketing
Difficulty: 4 - Undergraduate/MBA

Michael J. Rouse, Guo-Liang Frank Jiang

Product Number: 9B07M007
Publication Date: 12/15/2006
Length: 10 pages

GVM Exploration Limited's (GVM) $2 million environmental assessment project at Grizzly Valley was disrupted by a road blockade set up by a small group of local First Nation people. How GVM handled this situation would not only affect the progress of the Grizzly Valley project but also other ongoing projects. The case challenges students to address an emergent situation. Students will need to think through the short-term and long-term implications of the potential project delay or legal actions. They must assess the issues, alternatives, and decision criteria before selecting the actions to be recommended. The case introduces stakeholder management and corporate social responsibility (CSR). However, the case provides a fairly inclusive scenario where a stakeholder or CSR perspective alone does not dictate strategic directions. Students will need to take into account both stakeholder and business imperatives.

Teaching Note: 8B07M07 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Resource Allocation; Stakeholder Analysis; Growth; Ethical Issues
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Business Ethics in the Global Marketplace

Kimberley Howard, William Wei, Eric Zengxiang Wang

Product Number: 9B09M062
Publication Date: 10/9/2009
Revision Date: 7/27/2017
Length: 6 pages

When Yves Saint Laurent died in June 2008, his estate passed to his business partner, Pierre Bergé. Bergé decided to auction several items from Laurent's estate at Christie's international auction house, including two antique bronzes from China. The general feeling in China was that these artifacts had been looted and should be repatriated rather than auctioned. The case highlights issues of ethics, corporate governance and corporate responsibility.

Teaching Note: 8B09M62 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: ethical issues; corporate responsibility; customer relationship management; corporate governance; luxury goods
Difficulty: 4 - Undergraduate/MBA

Paul W. Beamish, Jean-Louis Schaan

Product Number: 9B08M038
Publication Date: 4/18/2008
Length: 8 pages

The case deals with a scam that has been run out of Nigeria since 1990. In it, foreign companies are approached for their assistance in facilitating an international transfer of funds in order to receive a very large but unearned commission. In the case, a Hong Kong-based manager who is travelling to Nigeria is unaware that he is walking into a situation where his company is about to be cheated. The objective of the case is to raise the issue of ethics in the conduct of international business. A follow-up case (9B08M039) is available.

Teaching Note: 8B08M38 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Negotiation; Human Behaviour; Ethical Issues; Personal Values
Difficulty: 4 - Undergraduate/MBA

Lawrence Beer

Product Number: 9B01M070
Publication Date: 3/28/2002
Revision Date: 11/9/2012
Length: 10 pages

Textron Ltd. is a family-owned manufacturer of cotton and sponge fabricated items. The company wants to expand its business with an offshore manufacturing enterprise that will fit with the company's policy of caring for their employees and providing quality products. The company is looking at two options: a guaranteed outsourcing purchase agreement or a joint venture. After several meetings with offshore alliance candidates the vice-president of the company must analyse the cross-cultural differences to established corporate guidelines of global ethics and social responsibility that the company can use in their negotiations with a foreign manufacturing firm.

Teaching Note: 8B01M70 (5 pages)
Industry: Manufacturing
Issues: China; International Business; Ethical Issues; Business and Society; Developing Countries
Difficulty: 4 - Undergraduate/MBA

Chapter 5:

Muntazar Bashir Ahmed

Product Number: 9B08M068
Publication Date: 10/20/2008
Revision Date: 12/12/2008
Length: 25 pages

The Crescent Standard Investment Bank Limited (CSIBL) was the largest investment bank quoted on all the stock exchanges in Pakistan, so when it declared a huge loss of Rs2.1 billion (US$35.5 million) for the year December 31, 2005, the market was taken by surprise. There had been some rumours that all was not well and that the investment banking regulator, Securities and Exchange Commission of Pakistan (SECP), had sent a team to investigate the affairs of the bank. Since the main shareholders were individuals or companies of the well-known business group known as the Crescent Group, there was enormous interest in the CSIBL affairs by financial and political circles.The case describes the various types of entities that were merged to form the CSIBL, principally to protect the stakeholders by creating an entity with a large capitalization. The bank had reported in its annual reports that all the internal control mechanisms for good governance stipulated by the SECP were in place and the auditors (internal and external) had reported that these were satisfactory. Yet, when subjected to an investigation, it was revealed that the internal management was involved in a variety of acts of misrepresentation and concealment. The case focuses on the weaknesses in the structure of the corporate governance regime in Pakistan. The fact remains that no amount of internal or external checks can stop internal management from colluding to perpetrate fraud.

Teaching Note: 8B08M68 (12 pages)
Industry: Finance and Insurance
Issues: Corporate Responsibility; Corporate Governance; Ethical Issues; Financial Management; Pakistan
Difficulty: 4 - Undergraduate/MBA

W. Glenn Rowe, Yeong-Yuh Chiang

Product Number: 9B08M079
Publication Date: 10/28/2008
Revision Date: 1/16/2009
Length: 9 pages

Dr. C.V. Chen received news that one of Lee and Li's senior assistants had found a loophole in a power of attorney from one of the firm's clients, SanDisk Corporation (SanDisk), that had allowed him to illegally sell the client's shares in a Taiwanese company and to sneak out of Taiwan with over NT$3 billion. Unfortunately, Lee and Li had no insurance to cover this embezzlement. Chen knew that the three senior partners needed to develop a plan of action to save the law firm, take care of the lawyers and other employees, maintain the reputation of the firm within Taiwan and abroad intact, do what was best for SanDisk and Lee and Li, and keep the more than 12,000 clients from deserting the firm.

Teaching Note: 8B08M79 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Crisis Management; Accountability; Management of Professionals; Leadership; Ethical Issues; Decision Making; Crisis and Change; Professional Firms; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA

W. Glenn Rowe, Yeong-Yuh Chiang

Product Number: 9B08M080
Publication Date: 10/28/2008
Revision Date: 12/15/2008
Length: 6 pages

Dr. C.V. Chen learned that one of Lee and Li's senior legal assistants had illegally sold a client's shares in a Taiwanese company and sneaked out of Taiwan with over NT$3 billion. Lee and Li took several actions to minimize the impact of the situation on the firm, its clients and its employees. Now Chen began to review the events and the actions taken. Although he knew that the worst was behind, he also knew that a great deal of work needed to be done in order to ensure the reputation of the firm would remain intact in the future.

Teaching Note: 8B08M79 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Accountability; Leadership; Ethical Issues; Crisis Management; Decision Making; Professional Firms; Management of Professionals; Crisis and Change; CNCCU/Ivey
Difficulty: 4 - Undergraduate/MBA

Gerard Seijts, Ivy Kyei-Poku

Product Number: 9B08C007
Publication Date: 4/1/2008
Length: 15 pages

The case explains the ordeal of the newly appointed manager of planning and reporting at Connectco, an outbound call centre in Ontario, Canada, who suspected wrong-doing early on at work. After his fears were confirmed, he was very uncomfortable with the situation he found himself in. However, he had to make a choice about how he would respond. This case also portrays, among other things, how young professionals find themselves in situations that create moral distress when they are aware of unethical conduct but feel constrained from taking action to correct it.

Teaching Note: 8B08C07 (6 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Ethical Issues; Leadership; Whistleblower; Accountability
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Marketing and Operations

James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA

Hari Bapuji, Paul W. Beamish

Product Number: 9B08M010
Publication Date: 2/21/2008
Revision Date: 5/18/2017
Length: 14 pages

On July 30, 2007 the senior executive team of Mattel under the leadership of Bob Eckert, chief executive officer, received reports that the surface paint on the Sarge Cars, made in China, contained lead in excess of U.S. federal regulations. It was certainly not good news for Mattel, which was about to recall 967,000 other Chinese-made children's character toys because of excess lead in the paint. Not surprisingly, the decision ahead was not only about whether to recall the Sarge Cars and other toys that might be unsafe, but also how to deal with the recall situation. The (A) case details the events leading up to the recall and highlights the difficulties a multinational enterprise faces in managing global operations. Use with Ivey case 9B08M011, Mattel and the Toy Recalls (B).

Teaching Note: 8B08M10 (28 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Offshoring; Outsourcing; Product Quality; Product Recall; Multinational Enterprise Stakeholders; the United States and China
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer

Product Number: 9B05D017
Publication Date: 2/6/2006
Revision Date: 9/28/2009
Length: 11 pages

A consultant at an executive search and training firm must decide how to deal with the loss of seven of the firm's highly trained consultants who have decided to start their own consulting firm. As the consultants discuss the loss of their peers, there is a great deal of emotion including a sense of humiliation. Students are asked to take the position of the consultant, although they might also take the role of the firm's managers.

Teaching Note: 8B05D17 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Professional Firms; Employee Training; Ethical Issues; Management of Professionals
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Finance and Accounting

David J. Sharp, Mary Gillett, Jessica Frisch

Product Number: 9B04N007
Publication Date: 4/5/2004
Revision Date: 10/15/2009
Length: 6 pages

Biovail Corporation, a large pharmaceutical company, recently had its stock downgraded by a well known pharmaceutical analyst and a number of other analysts were also scrutinizing the company. The outcome was not favorable, as Biovail's acquisition methods were labeled as unethical and their accounting practices were questioned. An investor with the company must decide if she will continue to invest in a company that has been identified with low ethical standards. The supplement Biovail Corporation (B), product 9B04N008 discusses the investor's decision, and some information that caused her to reconsider that decision.

Teaching Note: 8B04N07 (7 pages)
Industry: Manufacturing
Issues: Patents; Ethical Issues; Investments
Difficulty: 4 - Undergraduate/MBA

James A. Erskine, Joanna Shostack

Product Number: 9B03C017
Publication Date: 5/1/2003
Revision Date: 10/17/2009
Length: 7 pages

A junior broker at a securities firm has mixed emotions. He enjoys the success his sales have brought him, however, he is concerned about misleading clients to obtain those sales. He has been offered a promotion to senior broker and must decide whether to accept the promotion, continue in his current position or leave the firm. The supplement Westwood Securities (B), product 9B03C018 discusses his decision.

Teaching Note: 8B03C17 (5 pages)
Industry: Finance and Insurance
Issues: Career Development; Sales Strategy; Securities; Ethical Issues
Difficulty: 4 - Undergraduate/MBA

David J. Sharp, Niels Billou

Product Number: 9A99N017
Publication Date: 9/13/1999
Revision Date: 1/21/2010
Length: 2 pages

An investment advisor has received an order to buy 1,000 coffee contracts for her client. The client, a senior weather analyst at Environmex, a private weather forecasting service, told her that he had just seen the latest long-range satellite weather data for Brazil that indicated a strong likelihood of frost in the coffee-producing regions. Frost would kill the coffee plants, seriously reducing the supply of coffee, which in turn would lead to an increase in price of the contracts. The information would be made public in a day or so. She thought to herself, This client has been pretty accurate with these forecasts; maybe it's time I started telling my other clients and put in some of my own capital. The main pedagogical objective of this case is to explore the definition of, and responsibility for, insider trading. The situation in this case is intentionally highly ambiguous. The question When is it appropriate to use information not widely available to the market? should be the main focus of student debate. Other ethical issues include confidentiality and using corporate information for personal use.

Teaching Note: 8A99N17 (4 pages)
Industry: Finance and Insurance
Issues: Ethical Issues
Difficulty: 4 - Undergraduate/MBA

Chapter 8:

Alison Konrad, Shannon Thomson

Product Number: 9B09C011
Publication Date: 6/26/2009
Length: 12 pages

An intern has completed her summer internship as Brussels and Bradshaw (B&B), an investment bank in Toronto, Ontario. She now faces her final performance review where she will be told whether or not she has been offered full-time employment following her graduation. After a grueling summer during which she received little training, no formal mentorship and worked tireless 100 hour weeks with no praise, she was frustrated, hurt and bitter about the experience. Despite enjoying finance and the actual work, the intern is unsure whether taking B&B's offer is a good idea, should B&B extend her the opportunity. Despite it being one of the most prestigious banks in the world, she had seen little to no improvement in the abusive approach of her superiors. As she walks to the business department manager's office, she reviews whether or not she should bring up the unresolved issues that transpired during the summer, the mounting frustration of working in teams that gossiped and did not respect her work, and finally her inability to understand why she had been treated so poorly despite her diligent work ethic. On the one hand, the intern could bring up such issues and try to explain herself before the business department manager decides whether or not to extend her the offer. Or, she could listen to the review and continue to take full responsibility for the problems which were not her making in the hopes that it might make her look more mature and professional and potentially aid her in obtaining her full-time offer.

Teaching Note: 8B09C11 (11 pages)
Industry: Finance and Insurance
Issues: Career Development; Work-Life Flexibility; Organizational Culture; Women in Management
Difficulty: 4 - Undergraduate/MBA

David J. Sharp, Ken Mark

Product Number: 9B02C014
Publication Date: 4/8/2002
Revision Date: 10/29/2009
Length: 7 pages

Northeastern Mutual Life is a large insurance company. As a result of falling profitability, the chief executive officer has to evaluate the rights of various stakeholders as he plans to reduce staff. He must quantify in dollar terms the moral claims of shareholders and various other stakeholders, and apply ethical analysis where legal requirements are unclear. In particular, he must decide how to manage the layoffs and the implications to the company of the payout of pension benefits.

Teaching Note: 8B02C14 (4 pages)
Industry: Finance and Insurance
Issues: Ethical Issues; Employee Termination; Productivity; Human Resources Management
Difficulty: 4 - Undergraduate/MBA

Kathleen E. Slaughter, Donna Everatt, Xiaojun Qian

Product Number: 9A99C007
Publication Date: 6/23/1999
Revision Date: 5/24/2017
Length: 8 pages

The newly appointed division head must examine organizational or communication problems within a division of a billion dollar semiconductor manufacturer. The manager made a decision, which an employee emotionally responded to, creating the potential for conflict within the department. Cross-cultural issues come into play given that the manager, although originally from China, was educated and gathered extensive experience in the West and was thus considered an expatriate by his employees. The manager must also examine the effect of organizational culture on an employee's behavior.

Teaching Note: 8A99C07 (8 pages)
Industry: Manufacturing
Issues: China; Interpersonal Relations; Intercultural Relations; Conflict Resolution; Management Communication
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
Environmental Sustainability and Its Challenges to Management

Jennifer Lynes

Product Number: 9B09M028
Publication Date: 6/11/2009
Length: 11 pages

Scandinavian Airlines (SAS) is an innovator of strategic environmental management in the airline industry. Being a first-mover can have both its advantages and disadvantages. This case looks at the airline's decision of whether they should invest in the best available environmental technology for a fleet of new aircraft that would serve them for the next 25 years. While the technology for these low-emission engines had been around since the 1970s, it had never really been commercialized. SAS was feeling pressure from the regulatory authorities with regards to potential new charges and taxes that could affect the future operating costs of the fleet. Despite these anticipated future costs, at the time of the decision, the director of aircraft and engine analysis for SAS could not make an economic case for the more expensive engines. The challenge was for the fleet development team to try to convince the SAS management team to spend the extra kr5 million (Swedish Kronor) per aircraft for the dual combustor engine. Given that corporations are faced with increasing pressure with regards to greenhouse gas emissions and climate change, this case study presents an opportunity for discussion and analysis of various environmental concepts including strategic environmental management, adoption of best available environmental technologies, the role of internal environmental leadership in a large corporation and the effect of market-based mechanisms to improve a sector's environmental performance. The case illustrates the complexities of environmental decisions in striking a balance between meeting ambitious commitments and dealing with real capabilities of companies and external pressures.

Teaching Note: 8B09M28 (14 pages)
Issues: Corporate Culture; Management Decisions; Competitive Advantage; Environment
Difficulty: 4 - Undergraduate/MBA

Pratima Bansal, Jijun Gao

Product Number: 9B08M073
Publication Date: 9/22/2008
Revision Date: 11/18/2008
Length: 17 pages

The chief executive officer of an oil and gas company must decide whether he wants to invest heavily in reducing greenhouse gases. Specifically, Suncor Energy must evaluate whether it should invest $425 million in carbon capture and storage or wait until there is greater certainty in the political, social and business environment. The case will help students develop skills of analyzing business decisions under higher environmental uncertainty, especially when the outcome is a long-term goal. Further, the issues presented in the case open up discussions about climate change and the interaction between business actions and societal expectations. There is also an opportunity to speak about the interaction between business and public policy.

Teaching Note: 8B08M73 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Decision Making; Tradeoff Analysis; Uncertainty
Difficulty: 4 - Undergraduate/MBA

Robert Klassen, Jordan Mitchell

Product Number: 9B06M044
Publication Date: 3/29/2006
Revision Date: 9/21/2009
Length: 22 pages

Managers at Norway's Hydro are wondering whether or not an economically viable business case can be made to commercialize a wind-hydrogen solution. The company has successfully installed a wind-hydrogen renewable energy system as a research and development project on the 200 person remote island of Utsira. Now, they are considering two early markets to which to sell the idea: remote island communities or grid power balancing for grid operators with high reliance on wind power. Students will be introduced to current trends in renewable energy and will look at the threats and opportunities and business drivers in launching a new project. Students will analyse the priorities of the company by looking at economic, social and environmental objectives.

Teaching Note: 8B06M44 (13 pages)
Industry: Utilities
Issues: Innovation; Environmental Business Management; Feasibility Analysis; New Products
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Managing on the Ethical Frontier

Alex Beamish, Paul W. Beamish

Product Number: 9B09C018
Publication Date: 9/18/2009
Revision Date: 3/24/2010
Length: 8 pages

In September 2009, Brian Lee purchased a computer game developed by a major company and, like other customers, he was experiencing difficulty running it. The source of the problems was a highly restrictive system of digital rights management (DRM), which, while more or less universally disliked, was causing serious technical problems for a minority of users. Lee began to share his experience on the company's message board and was engaging in a debate about online piracy with a company representative. He was curious about piracy in the file-sharing age and wondered why it would be wrong to download a pirated version of the game with the DRM circumvented. The case deals with an issue which resonates with students. Although the context is simple, the problem is complex, thus giving instructors wide latitude on how to teach the case. It is suitable for modules or courses focused on ethics, service operations, intellectual property rights and information technology.

Teaching Note: 8B09C18 (7 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Service Recovery; Intellectual Property; Internet; Ethical Issues
Difficulty: 4 - Undergraduate/MBA

Anne T. Lawrence

Product Number: 9B09M011
Publication Date: 2/19/2009
Length: 11 pages

How can a biotechnology start-up navigate a complex regulatory and stakeholder terrain to bring to market an innovative product with potentially significant public health benefits? This case focuses on the challenges facing Ventria Bioscience, a small biotechnology firm based in California. The company had developed an innovative technology for growing medical proteins useful in the treatment of childhood diarrhea in genetically modified rice. The company's efforts to obtain regulatory approval in California to commercialize its invention met with a firestorm of opposition from a wide range of stakeholders, including environmentalists, food safety activists, consumer advocates and rice farmers. The case presents the hurdles faced by Ventria as it has attempted to commercialize its invention in the context of the broader debate over the ethics of plant-based medicines. This case is suitable for an upper-division undergraduate or graduate course in entrepreneurship, small business, the management of technology or biotechnology. In such a course, it is best positioned in a discussion of the regulatory environment and stakeholder relations. Alternatively, the case may be used in a segment on technology or stakeholder relationships in a course in business and society.

Teaching Note: 8B09M11 (10 pages)
Issues: Genetically Modified Crops; Stakeholders; Biotechnology; Government Regulation
Difficulty: 4 - Undergraduate/MBA

Pratima Bansal, Marlene J. Le Ber

Product Number: 9B07M067
Publication Date: 1/4/2008
Revision Date: 7/3/2008
Length: 14 pages

Wall Street's darling, Google Inc., offered more than a pretty financial picture. Poverty, communicable diseases and climate change - some of the world's largest problems - were also key interests of Google's cofounders. By applying innovation and significant resources, Google's cofounders hoped that their efforts in these areas would one day eclipse Google itself in worldwide impact. On February 22, 2006, Google Inc. announced the appointment of an executive director of the newly created Google.org. With one per cent of Google Inc.'s equity and profit as seed money, Google.org's mandate was to address climate change, global public health, economic development and poverty. Although charity by successful entrepreneurs was not unusual, this press release signaled a new organizational form, a for-profit philanthropic company. The new executive director's task ahead was unprecedented. How could he leverage the company's for-profit status to make the biggest impact possible with the resources trusted to Google.org? What decision-making criteria should be used for strategic investments? How would he measure Google.org's success?

Teaching Note: 8B07M67 (11 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Governance; Strategic Decision Making; Business Sustainability; New Organizational Forms
Difficulty: 4 - Undergraduate/MBA