Ivey Publishing

Managing Business Ethics: Straight Talk about How to Do It Right

Trevino, L.K.; Nelson, K.A.,6/e (United States, Wiley, 2014)
Prepared By Hadi Chapardar, PhD Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introducing Straight Talk About Managing Business Ethics: Where We’re Going And Why

NEWMONT MINING CORP. AND A MERCURY SPILL IN PERU (A)
Jaana Woiceshyn, Allan Ingelson

Product Number: 9B13M002
Publication Date: 3/22/2013
Revision Date: 3/22/2013
Length: 12 pages

The CEO of Newmont Mining Corporation (Newmont) had learned that a subcontractor’s truck en route to Lima from Yanacocha, a gold mine operated by Newmont, spilled mercury along the highway and in small villages. Local residents had picked up some mercury with their bare hands and taken it to their homes. The CEO was trying to determine the best way to handle the situation. This A case describes the mine developer’s history, the operations at Newmont’s most profitable gold mine, the significance of foreign investment to Peru’s economy, the environmental impact of gold mining and the local and anti-mining movements' responses to mine operations. In the B case, Newmont Mining Corp. and a Mercury Spill in Peru (B) 9B13M003, the new CEO is trying to decide what else Newmont is morally required to implement before continuing to operate Yanacocha, and Newmont’s other mines, successfully.

Teaching Note: 8B13M002 (9 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Moral responsibility; legal liability; moral decision principles; Peru
Difficulty: 4 - Undergraduate/MBA



SINYI REAL ESTATE IN TAIWAN
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



NES CHINA: BUSINESS ETHICS (A)
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 2:
Deciding What’s Right: A Prescriptive Approach

PATRICIA COULTER'S DILEMMA (A)
John S. Haywood-Farmer, Samantha Winkler

Product Number: 9B13C020
Publication Date: 5/31/2013
Revision Date: 5/27/2013
Length: 8 pages

A graduating fourth-year HBA student faces an ethical dilemma as she struggles to decide which one of two job offers to accept. The situation is complicated by the fact that she has received an exploding offer from one firm and she must respond to it on the same day as she participates in a final-round interview with the other firm. The stakeholders in this case include the student, the two firms, the university and its career-management program, and the other graduating students in the HBA program. The (B) case 9B13C021 is set about two weeks later, when Patricia Coulter is wrestling with another decision.

Teaching Note: 8B13C020 (8 pages)
Industry: Educational Services
Issues: Ethical Decisions; Personal Values; Recruiting; Career Planning; Professional Firms; Customer Services; Canada
Difficulty: 4 - Undergraduate/MBA



ONLINE PIRACY: JAYWALKING OR THEFT?
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



PHIL CHAN (A)
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



A FEW TIPS ABOUT CORRUPTION IN THE U.S.
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 3:
Deciding What’s Right: A Psychological Approach

SARAH VICKERS: POST ACQUISITION CAREER MANAGEMENT
Alison Konrad, Moira Saganski

Product Number: 9B13C015
Publication Date: 11/19/2013
Revision Date: 11/19/2013
Length: 2 pages

A large U.S. investment management corporation has recently acquired a prominent Canadian investment management company with the justification for the cost of the acquisition largely based on huge economies of scale from integrating parts of the operations of both companies. A senior vice-president of the Canadian company has been asked to recommend how this should be done. She concludes that it would be best to keep administrative functions under the Canadian company’s authority, but when she presents her report to the chief executive officer of the U.S. firm, he requests that she change her report to give these functions to the Canadian branch of the U.S. company. Should she bow to her superior’s wishes and change her recommendation? What are the ethics and career impact of changing a professional opinion under pressure from top management?

Teaching Note: 8B13C015 (3 pages)
Industry: Finance and Insurance
Issues: Ethical Decision Making; Mergers and Acquisitions; Career Decision-making; Managing Your Boss; Canada
Difficulty: 4 - Undergraduate/MBA



A TATTLE TALE?
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



WESTWOOD SECURITIES (A)
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



ORANGEWERKS: A QUESTION OF ETHICS
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


Chapter 4:
Addressing Individuals’ Common Ethical Problems

TOO CHICKEN TO CONVERT? A CHICK-FIL-A DILEMMA
Matthew Thomson, Seung Hwan (Mark) Lee, Valerie Ho

Product Number: 9B13A030
Publication Date: 10/8/2013
Revision Date: 10/8/2013
Length: 4 pages

The president and chief operating officer of Chick-fil-A is a devout Christian who publicly operates his restaurants according to Biblical principles. A recent controversy has surrounded his public opposition to gay marriage. As a result, the company is being accused of discrimination and prejudice. Are the company’s deeply rooted Christian values hindering the business?

Teaching Note: 8B13A030 (3 pages)
Industry: Accommodation & Food Services
Issues: Brand equity; public relations; ethics; United States
Difficulty: 4 - Undergraduate/MBA



FUZZY MATH
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



COASTAL UNIFORMS
David J. Sharp, Ken Mark

Product Number: 9B05M014
Publication Date: 12/20/2004
Revision Date: 9/30/2009
Length: 4 pages

Coastal Uniforms provides a cleaning service for work uniforms. In an effort to improve profitability, the company institutes a series of measures of increasingly questionable ethics, causing a downward spiral of the company's corporate culture and budget/incentive system. A sales representative for the company must decide if he should quit his job or consider legal action in response to the changes to the incentive program.

Teaching Note: 8B05M14 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Control Systems; Corporate Culture; Ethical Issues; Incentives
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Ethics As Organizational Culture

ORNGE: A CRISIS AT ONTARIO’S AIR AMBULANCE SERVICE
W. Glenn Rowe, Sharda Prashad

Product Number: 9B13C005
Publication Date: 11/20/2013
Revision Date: 12/2/2013
Length: 8 pages

The interim president and chief executive officer (CEO) of Ontario’s air ambulance service is reflecting on the first challenging months of his tenure. Previously a deputy minister in the provincial government, he now has to deal with ongoing issues of accountability within the organization and the safety of its fleet of helicopters. In the middle of a media storm of accusations of mismanagement, questionable business and spending practices that had wasted millions of dollars of public funding, problematic hiring of unqualified staff and extravagant salaries, along with possible personal improprieties of the previous CEO, he is wondering what new allegations might surface and how he might not only remedy the internal management problems but regain the public’s trust in the organization.

Teaching Note: 8B13C005 (5 pages)
Industry: Health Care Services
Issues: Ethics; leadership; non-profit organization; Canada
Difficulty: 4 - Undergraduate/MBA



THE GLOBE AND MAIL: CUT-AND-PASTE PLAGIARISM SCANDAL
Jana Seijts, Paul Bigus

Product Number: 9B13M047
Publication Date: 4/9/2013
Revision Date: 4/9/2013
Length: 11 pages

The public editor of The Globe and Mail, Canada’s leading national newspaper, faces a significant ethical situation. An advocate of media standards has released a blog post outlining allegations of plagiarism against a prominent newspaper columnist. Following the release of the blog post, numerous members of the public and the journalism community began commenting on the situation. The public editor is responsible for upholding journalistic ethics and for investigating and responding to public concerns. She needs to respond to the allegations of plagiarism and ensure the public that the national newspaper upholds strong ethical standards.

Teaching Note: 8B13M047 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Communications; Plagiarism; Media, Accountability; Canada
Difficulty: 4 - Undergraduate/MBA



SUMERU SOFTWARE SOLUTIONS: CREATING A CULTURE OF SERENE DYNAMISM
Amit Gupta, Kshitij Saxena

Product Number: 9B11C036
Publication Date: 10/6/2011
Revision Date: 2/22/2012
Length: 23 pages

Sumeru Software Solutions was a software development consultancy firm headquartered in Bangalore, India, with offices in Washington, D.C., Dubai, and London. It began operations in July 2001 as a single project with two employees, and grew over 10 years into an organization with approximately 200 employees. The founding objective of Sumeru Software Solutions was to support Art of Living’s social development initiatives through profits earned from delivering high-quality services. Art of Living (AOL) was founded in 1981 by Sri Sri Ravi Shankarji as a not-for-profit, educational, humanitarian non-governmental organization engaged in stress-management programs, including yoga and meditation. Sumeru had developed a unique culture that combined corporate culture with the Art of Living principles of Seva, Satsang, Sadhana, and positivity even in the face of adversity. In line with the AOL principles, the four pillars of Sumeru culture were ethics, caring, sharing and trust. It purported to follow a peaceful yet aggressive way of doing business called “Serene Dynamism.” Harish Ramachandran, CEO of Sumeru Software Solutions, had created an enterprise that was different from other IT organizations. He was wondering how he would sustain the culture of the organization and make Sumeru a high-performing company over the next 10 years as it expanded its business and hired new employees.

Teaching Note: 8B11C036 (15 pages)
Industry: Information, Media & Telecommunications
Issues: Corporate Culture; Corporate Social Responsibility; Management Philosophy; Value-based Management; Work-life Balance; India; IIM-Bangalore/Ivey
Difficulty: 4 - Undergraduate/MBA



CRESCENT STANDARD INVESTMENT BANK LIMITED — GOVERNANCE FAILURE
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



STAFFING WAL-MART STORES, INC. (A)
Alison Konrad, Ken Mark

Product Number: 9B04C006
Publication Date: 1/26/2004
Revision Date: 10/6/2009
Length: 9 pages

Wal-Mart Stores, Inc. is a large Fortune 500 retail chain. The distinction of being the top-ranked company comes with intense scrutiny from the public and, especially, critics. Wal-Mart, a company lauded for its rapid response capability and stated commitments to gender equality is shown to be deficient in some glaring areas - the percentage of women compared to men at all levels of the company, and the compensation paid to women versus men at all levels of the company, to cite two examples. An executive vice-president must examine why these inequalities exist when the company seems to be doing everything else right. The company is the target of several gender discrimination lawsuits and the executive vice-president has the opportunity to obtain information that would be useful in the current situation, and must determine what information is needed. In the supplement, Staffing Wal-Mart Stores, Inc. (B), product 9B04C007, the executive vice-president receives information and must determine how to address the situation.

Teaching Note: 8B04C06 (7 pages)
Industry: Retail Trade
Issues: Management Decisions; Pay Equity
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Managing Ethics and Legal Compliance

BAYER CROPSCIENCE IN INDIA (A): AGAINST CHILD LABOR
Charles Dhanaraj, Oana Branzei, Satyajeet Subramanian

Product Number: 9B10M061
Publication Date: 1/27/2011
Length: 19 pages

AWARD WINNING CASE - Indian Management Issues and Opportunities Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case explores value-driven strategy formulation and implementation by bringing to the fore issues of ethics, responsible leadership, social intiatives in emerging markets, and the global-local tensions in corporate social responsibility. It examines how Bayer CropScience addressed the issue of child labor in its cotton seed supply chain in rural India between 2002 and 2008. Bayer had been operating in India for more than a century. In December 2002, the Bayer Group completed the acquisition of India-based Aventis CropScience. Bayer CropScience first learned about the occurrence and prevalence of child labor in its newly acquired India-based cotton seed operations a few months post-acquisition, in April 2003. The Aventis acquisition had brought onboard a well-known Indian company, Proagro, which already had operations in the cotton seed production and marketing - a new segment of the supply chain for Bayer. Child labor was widespread in cotton seed production — a traditional practice taken for granted not only by Indian farmers but also by several hundred Indian companies then accounting for approximately 90 per cent of the market share. The (A) case focuses on Bayer’s decision whether, when, and how to launch a self-run program that would take direct responsibility for tracking and eradicating child labor in rural India.

Teaching Note: 8B10M061 (11 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Emerging Markets; Strategy Implementation; Ethical Issues; Crisis Management; Corporate Responsibility; India
Difficulty: 4 - Undergraduate/MBA



GOOD INTENTIONS GONE AWRY AT THE NATIONAL KIDNEY FOUNDATION
Hwee Sing Khoo, Audrey Chia, Vivien K. G. Lim

Product Number: 9B10M017
Publication Date: 4/21/2010
Length: 14 pages

This case illustrates the rise and fall of the former chief executive officer (CEO) of the National Kidney Foundation (NKF) Singapore, T.T. Durai. In June 2007, Durai was charged with corruption and sentenced to three months in jail. Just less than two years prior, he had been the prolific CEO who had transformed the NKF from a small foundation into Singapore's largest charity, with 21 dialysis centres. Durai spent 37 years of his life volunteering and working with the NKF, and initiated research, marketing and fund-raising strategies for the charity. Under Durai's helm, the charity's revenue grew from $17 million to $116 million. Dialysis centres in other parts of the world sought Durai's expertise to improve their dialysis programs. This case documents the unfolding events that led to surprising revelations in court. These include Durai's leadership style, controversial decisions, bountiful entitlements and debatable actions taken to achieve his aims. In all, the case provides a perceptive insight into how differing perceptions of responsible leadership affected the stakeholders of the NKF, and encourages readers to analyze and propose how things could be improved, or could have turned out differently.

Teaching Note: 8B10M17 (8 pages)
Industry: Health Care Services
Issues: Health Administration; Transformational Leadership; Ethical Issues; Non-Profit Organization
Difficulty: 4 - Undergraduate/MBA



MALAWI BUSINESS ACTION AGAINST CORRUPTION
Oonagh Fitzgerald, James Ng'ombe

Product Number: 9B07M037
Publication Date: 10/4/2007
Length: 18 pages

The founding executive director of the African Institute for Corporate Citizenship (AICC), felt very tense as he typed the last revisions to the speech he would be giving to a Llongwe merchants' association later in the week. He really enjoyed proudly describing his initiative, "Business Action Against Corruption", and the Business Code of Conduct for Combating Corruption in Malawi, to potential new partners. However, the founding executive director was beginning to feel concerned about its slow pace of adoption. He was particularly worried about how to manage the delicate relationship with the government.

Teaching Note: 8B07M37 (6 pages)
Issues: Negotiation; Ethical Issues; Corporate Responsibility; Globalization; Political Environment; Procurement
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Managing For Ethical Conduct

THE CULTURAL BATTLE OF THE AUSTRALIAN ARMY
Gerard Seijts, Jana Seijts, Paul Bigus

Product Number: 9B13C035
Publication Date: 10/9/2013
Revision Date: 12/2/2013
Length: 7 pages

The Chief of the Australian Army faces a significant public scandal. In recent weeks, allegations have emerged that members of the country’s defence forces, including officers, shared explicit emails and photos that denigrated women. The scandal occurs as the Australian Defence Force is actively encouraging more women to join the ranks of the military. The Chief of the Australian Army needs to devise a strategy to communicate to the victims of the scandal, members of the army and the general public that the Australian Army is a national institution with strong values and moral standards and will not tolerate chauvinism of any kind.

Teaching Note: 8B13C035 (12 pages)
Industry: Other Services
Issues: Sexism; organizational culture; leadership character; communication; change; Australia
Difficulty: 4 - Undergraduate/MBA



LGBTA AT TORONTO-DOMINION BANK IN 2012
Cara C. Maurer, Andrew Cornies

Product Number: 9B12C027
Publication Date: 10/26/2012
Revision Date: 10/25/2012
Length: 8 pages

This case concerns the implementation and strategic direction of LGBTA (lesbian, gay, bisexual, transgendered and ally) initiatives at TD Bank Financial Group (TD). In order to maintain its position as the “employer of choice” for the LGBTA community, TD must expand the measures it had taken since its Diversity Leadership Council was created in 2006 to promote a comfortable, barrier-free and inclusive work environment for all employees. TD’s corporate diversity group had been providing a growing number of resources, events and LGBTA-related sponsorships for the past six years, resulting in an exponential growth of engagement by LGBTA employees, but lately the bank’s competitors and other large companies were catching up. Moreover, a recent review showed that there was a large variance in the quality of experience between the different subgroups of TD’s LGBTA community. The bank’s senior manager of corporate diversity must report within a week to the Diversity Leadership Council on how to solve these issues.

Teaching Note: 8B12C027 (8 pages)
Industry: Finance and Insurance
Issues: Change Management; Corporate Social Responsibility; Diversity Management; Social Values and Economic Value; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Ethical Problems Of Managers

DELOITTE CONSULTING GTA: THE DELOITTE DADS INITIATIVE
Alison Konrad, Amy Shuh

Product Number: 9B13C046
Publication Date: 12/20/2013
Revision Date: 12/20/2013
Length: 9 pages

Deloitte Dads is a firm-sponsored diversity and inclusion initiative aimed at supporting working fathers within Deloitte (Canada) LLP, an independent member of the Deloitte Touche Tohmatsu Limited global network. With support from senior management, Deloitte Dads was founded in 2010 by a junior consultant in the management consulting division in the company’s Greater Toronto Area office and quickly gained both members and media attention. The group not only had to be distinctly separate from other parenting initiatives already in place but had to negotiate with the company’s performance management practices, which historically had not considered flexibility in appraising employees. In 2013, the founder was wondering not only if the group could be rolled out to other divisions within the company across the country and perhaps across the world but also how best to handle its success while managing his own career and the demands of being a father of two small children. He had mastered the quarterly events within his office, but how could he create a formal governance model? Already working 80 to 90 hours per week, with no end in sight, how was he going to make Deloitte Dads sustainable and successful?

Teaching Note: 8B13C046 (11 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Gender; diversity; human resource management; change management; family-work interaction; Canada
Difficulty: 4 - Undergraduate/MBA



MANAGING ROMANCE IN THE OFFICE
Lisa A. Mainiero, Alison Konrad

Product Number: 9B11C014
Publication Date: 7/21/2011
Length: 16 pages

Office romance has challenged sexual norms at work. Under the prevailing norms 40 years ago, a workplace affair meant a semi-clandestine liaison between a male executive (married or unmarried) and a female secretary or low-level assistant. Over the past few decades, sexual norms have become more flexible, and office romances are more likely to be out in the open. This case provides six real-life examples of office romance. In each case, students have an opportunity to consider how well the parties to the romance have conducted the relationship in a business context and what leaders could have done to manage the situation.

Teaching Note: 8B11C014 (7 pages)
Issues: Women in Management; Sexual Harassment; Ethical Issues; Workplace Relationships
Difficulty: 4 - Undergraduate/MBA



AGCHEMCO COMPANY
William J. Russell

Product Number: 9B08C001
Publication Date: 10/31/2008
Length: 14 pages

This case involves a personnel matter at an agricultural chemical industry mining complex. A middle-level supervisor has been accused of gender-based and other discrimination. The complaint has come primarily from one employee who works under that supervisor's direction, but is supported at least in part by the testimony of other employees. The evidence is typical of the sorts of evidence that usually attend human resource disputes. Company policy manuals bear on the propriety of the mill coordinator's conduct apart from the issue of discrimination. Ultimately, an appellate process is also integrated into the procedural tools. This case considers the process by which the employment discrimination complaint is investigated, considered and resolved, including the weighing and evaluation of information gathered from those in the workplace. Various practical, legal and ethical issues typical to such cases are apparent.

Teaching Note: 8B08C01 (12 pages)
Issues: Perception; Work-Force Management; Risk Management; Morale; Mining; Ethical Issues; Employee Grievances
Difficulty: 4 - Undergraduate/MBA



BC METAL (A)
James A. Erskine, Aaron Anticic

Product Number: 9B07C020
Publication Date: 6/4/2007
Revision Date: 10/19/2007
Length: 5 pages

The president of a metal products manufacturer and distributor is informed that the company controller is having an affair with another employee who is married to the general manager of production. The president is in the process of selling the company and wonders what affect the affair, if true, will have. Three short supplementary cases are also available: 9B07C021, 9B07C022 and 9B07C023.

Teaching Note: 8B07C20 (5 pages)
Industry: Manufacturing
Issues: Ethical Issues; Office Extramarital Affairs; Sexual Harassment; Employee Relations
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Corporate Social Responsibility

NOVO NORDISK: MANAGING SUSTAINABILITY AT HOME AND ABROAD
Jette Steen Knudsen, Dana Brown

Product Number: 9B12M081
Publication Date: 9/7/2012
Revision Date: 2/14/2013
Length: 17 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case study deals with the opportunities and challenges faced by Danish pharmaceutical company Novo Nordisk with regard to its sustainability approach in China as of 2012. Novo Nordisk is well known for striving to integrate its business activities in a financially, environmentally, and socially responsible way, and many Novo Nordisk employees proudly refer to Novo Nordisk as a “triple bottom line (TBL) company.” Novo Nordisk has been active in China for more than 50 years; however, since the Chinese economy has expanded tremendously, this increase in wealth and a more sedentary Western lifestyle have led to growing problems with obesity. As a result, China’s insulin market is booming.

Novo Nordisk therefore faces new challenges concerning how best to organize its TBL program in a way that ensures a comprehensive approach throughout the organization, yet allows Novo Nordisk China to adopt initiatives that fit the Chinese business context. Furthermore, with ever-increasing competition for access to China’s lucrative insulin market, Novo Nordisk’s competitors are also engaging in sustainability, which means that Novo Nordisk must keep innovating to stand out, and must use sustainability as a source of competitive advantage.


Teaching Note: 8B12M081 (8 pages)
Industry: Health Care Services
Issues: Corporate Social Responsibility; Non-market Strategy; China; Europe
Difficulty: 5 - MBA/Postgraduate



SUSTAINABILITY IN THE ARAB WORLD: THE ARAMEX WAY
Dima Jamali, Cedric Dawkins

Product Number: 9B11M060
Publication Date: 7/25/2011
Revision Date: 1/5/2017
Length: 16 pages

In 1982, Fadi Ghandour founded Aramex, a leading provider of logistics and transportation solutions with headquarters in Amman, Jordan. From its early inception, Ghandour strategically included principles and practices of corporate social responsibility (CSR) and sustainability in the company’s culture in order to align business interests and competence with stakeholders’ needs. The community and environment were regarded as key stakeholders driving Aramex to act as a responsible citizen. Since its inception, Aramex had been involved in sustainability activities grouped into six primary areas: education and youth empowerment; community development; entrepreneurship; sports; environment; and emergency relief. Committed to growth and opening new offices globally, Aramex faced the challenge of preserving CSR as an integral part of its expansion strategy. In late January 2011, Ghandour and Hattar began brainstorming ways to address the need to harmonize CSR and sustainability values and practices across operations and ensure that sustainability principles were firmly institutionalized across branches and subsidiaries.

Teaching Note: 8B11M060 (9 pages)
Industry: Transportation and Warehousing
Issues: Business and Society; Corporate Social Responsibility; Logistics and Transportation; Jordan, Middle East
Difficulty: 4 - Undergraduate/MBA



FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR "GREENWASHING"?
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



GOOGLE'S WAY - DON'T BE EVIL
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


Chapter 10:
Ethical Problems Of Organizations

FOOD FOR THOUGHT: THE 2008 CHINA MILK SCANDAL
Vivien K. G. Lim, Rashimah Rajah, Smrithi Prasad

Product Number: 9B12C047
Publication Date: 2/8/2013
Revision Date: 11/14/2012
Length: 8 pages

In 2008, a scandal in China involving milk products tainted with melamine (a chemical used in plastic production) brought regional and global attention to the country. More than 290,000 infants were affected and several died. At a time when international trade was important for China’s economic development, the tainted milk scandal raised concerns about the safety of products and food made in China. The case illustrates how the pressure of rapid economic development resulted in measures to cut costs at the expense of consumer safety and health, bringing into question the ethics underlying business practices in the country. The lack of quality control and corporate governance processes on the part of the company and government facilitated the ease with which the milk was tampered. The case also documents remedial efforts that followed the scandal, including recall of the tainted milk products, putting new government policies and regulations in place, arrest of top executives and the companies’ public apology in the unique form of a New Year text message.

Teaching Note: 8B12C047 (7 pages)
Industry: Manufacturing
Issues: Ethics; management in Asia; China
Difficulty: 4 - Undergraduate/MBA



WORK FROM HOME: CURSE OR BOON?
Ashok K. Mishra, Sangeeta Shah Bharadwaj

Product Number: 9B13C008
Publication Date: 5/1/2013
Revision Date: 5/7/2013
Length: 14 pages

KSOIL has a project that bills customers on units of documents delivered. The productivity of employees is evaluated on the same basis. The output of the home-based team has increased two to three times compared to its previous office-based performance. As a result, the rewards and compensation for the home-based team have doubled compared to office-based employees. The head of HR is convinced home-based workers are using unfair means to achieve such high output. She is against the decision of the project manager to increase the size of the home-based team. She believes this will only increase the unrest among office-based workers. The general manager needs to make a decision soon, while keeping in mind the profitability, employee welfare and ethics of the firm.

Teaching Note: 8B13C008 (10 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Business ethics; work life flexibility; outsourcing; home-based working; India; United States
Difficulty: 4 - Undergraduate/MBA



"OUR BEER PRINT": BREWING CORPORATE RESPONSIBILITY AT MOLSON COORS
Mary Weil, Chitra P. Reddin

Product Number: 9B13A026
Publication Date: 11/19/2013
Revision Date: 11/19/2013
Length: 14 pages

Molson Coors’ chief corporate responsibility officer has been tasked to use the company’s efforts toward global corporate responsibility to drive its global competitiveness. He must roll out new corporate responsibility initiatives to engage employees across the company’s range of geographic locations.

Teaching Note: 8B13A026 (9 pages)
Industry: Accommodation & Food Services
Issues: Corporate responsibility; sustainability; communications; responsible sourcing; United States
Difficulty: 3 - Undergraduate



AMERICAN APPAREL: UNWRAPPING ETHICS
June Cotte, Seung Hwan (Mark) Lee, Brittany Schuette

Product Number: 9B12A032
Publication Date: 8/13/2012
Revision Date: 8/13/2012
Length: 5 pages

American Apparel, a popular clothing manufacturer, has socially progressive labour policies and uses significant environmental advances in its manufacturing process. In addition, it has a well-established philanthropic arm. Set against these socially responsible policies is the highly sexualized nature of the company’s advertising. This element of the marketing mix seems, at least to some consumers, very much at odds with the other aims and policies of the company. The question facing students is whether this disconnect can be maintained or whether the brand’s advertising should change.

Teaching Note: 8B12A032 (2 pages)
Industry: Retail Trade
Issues: Ethics; Corporate Social Responsibility; Advertising Strategy; Controversial Advertising, United States
Difficulty: 2 - Intro/Undergraduate



TROUBLE IN PARADISE: STAKEHOLDER CONFLICT IN THE PASEO CARIBE PROJECT
Gwendolyn Toro, Julia Sagebien, Victor Quiñones

Product Number: 9B10M018
Publication Date: 5/5/2010
Length: 16 pages

The case centres on the many controversies surrounding the Paseo Caribe real estate development project in San Juan, the capital of Puerto Rico. The project developers had to contend with large demonstrations, civil disobedience, government intervention, legal proceedings and costly delays as a result of allegations that there had been multiple irregularities in the permit-granting processes and that the project had been built on public domain lands. The fact that Paseo Caribe was located in San Juan's prime tourist and convention area, as well as in a historically and culturally important zone, added significance and visibility to the debates. Jos' Antonio Moreno, president of the Puerto Rico Architects and Landscape Architects Association, is reflecting on the lessons learned by industry participants, as well as on ways the association can encourage industry actors to handle conflict in a less confrontational manner. The case illustrates the downside of not managing stakeholder relations proactively or effectively.

Teaching Note: 8B10M18 (9 pages)
Issues: ethical Issues; business and society; stakeholder analysis; conflict resolution; government and business; corruption; corporate social responsibility; developing countries; Puerto Rico
Difficulty: 4 - Undergraduate/MBA



REPUTATION RISK IN THE GLOBAL ART MARKET
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


Chapter 11:
Managing for Ethics and Social Responsibility in a Global Environment

CORRUPTION: THE INTERNATIONAL EVOLUTION OF NEW MANAGEMENT CHALLENGES
David W. Conklin

Product Number: 9B09M065
Publication Date: 10/21/2009
Length: 21 pages

Many countries have become increasingly concerned with the subject of corruption, and managers today must deal with changes in ethical norms and laws. New laws and international agreements seek to create a worldwide shift towards the reduction of corruption, and so management responsibilities are continually evolving. Both Transparency International and the World Bank provide estimates of the relative pervasiveness of corruption in different countries. Yet this subject is ambiguous and complex, creating significant challenges for managers. Both Volkswagen and Siemens have recently experienced public criticism and legal prosecution over corruption issues, some relating to internal and inter-corporate relations. Some cultures appear to accept corrupt practices as part of normal business-government relations. In China, guanxi is widely seen as a requirement for business success with the establishment of personal relationships that include an ongoing exchange of gifts and personal favours. Some managers may argue that the giving of gifts is acceptable, that bribes to expedite decisions may be necessary, and that only certain types of bribes should be seen as inappropriate corruption. However, this perspective involves the difficulty of drawing a line to guide decisions of corporate employees, and for many managers it is now necessary to implement clear corporate guidelines in regard to what they consider to be corruption. In this context, some managers may decide to avoid investing in certain countries until the culture of corruption has changed.

Teaching Note: 8B09M65 (3 pages)
Industry: Public Administration
Issues: Globalization; International Business; Business and Society
Difficulty: 4 - Undergraduate/MBA



ETHICS OF OFFSHORING: NOVO NORDISK AND CLINICAL TRIALS IN EMERGING ECONOMIES
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



KILLER COKE: THE CAMPAIGN AGAINST COCA-COLA
Henry W. Lane, David T.A. Wesley

Product Number: 9B07C003
Publication Date: 1/31/2007
Revision Date: 2/24/2010
Length: 23 pages

The CEO of Coca-Cola is faced with increasing criticism over the company's handling of alleged human rights abuses in Colombia. A grass roots protest movement known as The Campaign to Stop Killer Coke has built international support for a boycott of Coca-Cola products on college campuses. The campaign centers specifically on the intimidation and murder of union leaders at a specific Coca-Cola bottling plant in Colombia. Coca-Cola asserted that it was not responsible for such abuses. Rather, the violence at the Coca-Cola plant was the product of a political situation that was beyond the company's control. The company further argued that it was in compliance with local labor laws, and had been dismissed as the defendant in lawsuits filed in Colombia and U.S. courts. At the time of the case, Coca-Cola is faced with anti-Coke campaigns at more than 100 college campuses worldwide and official boycotts of its products at a number of large well-known campuses in the United States. In response, the company has undertaken an audit of its bottling plants in Colombia. It also launched a public relations campaign aimed at refuting accusations of human rights violations. The case can be used to discuss corporate ethics, extraterritoriality, marketing and public relations.

Teaching Note: 8B07C03 (11 pages)
Industry: Manufacturing
Issues: Trade Unions; Ethical Issues; Emerging Markets; Supplier Selection; Northeastern
Difficulty: 4 - Undergraduate/MBA



GOOGLE IN CHINA
Deborah Compeau, Prahar Shah

Product Number: 9B06E019
Publication Date: 5/1/2007
Revision Date: 5/23/2017
Length: 9 pages

The case describes the circumstances surrounding the introduction of www.google.cn. In order to comply with Chinese government requirements, google.cn censors web results. This appears to contradict Google’s stated philosophy and its mission to organize and make accessible the world’s information. A public outcry ensues and Google is forced to defend its controversial decision. The case presents both sides of the debate and asks students to consider what they feel is right.

Teaching Note: 8B06E19 (4 pages)
Industry: Other Services
Issues: Information Systems; Government and Business; Ethics; Censorship; Internet; China
Difficulty: 4 - Undergraduate/MBA