Chapter 4

Addressing Individuals’ Common Ethical Problems

Contents: (Please note: the Instructor Guide for every chapter will follow this structure.)

1. Chapter Outline

2. Teaching Notes

3. In-Class Exercises

4. Homework Assignments

5. Additional Resources

Chapter Outline

I. Introduction

A. Indentifying Your Values – and Voicing Them

II. People Issues

A. Discrimination

B. Harassment, Sexual and Otherwise

III. Conflicts of Interest

A. What Is It?

B. How Can We Think About This Issue?

C. Why Is It an Ethical Problem?

D. Costs

IV. Customer Confidence Issues

A. What Is It?

B. How Can We Think About This Issue?

C. Why Is It an Ethical Problem?

D. Costs

V. Use of Corporate Resources

A. What Is It?

B. How Can We Think About This Issue?

C. Why Is It an Ethical Problem?

D. Costs

VI. When All Else Fails: Blowing the Whistle

A. When to Blow the Whistle

B. How to Blow the Whistle

VII. Conclusion

VIII. Discussion Questions

IX. Short Cases

Teaching Notes - Discussion Questions

1. What do you value? Can you make a list of the three or four values you would stand up for? How will you explain to others what your values are and why?

This is the perfect place to begin linking the values exercises you (hopefully) did with your students in Chapter 2, with why it is important to identify their values. It is difficult, if not impossible, to voice values, if you have no idea what your values are! Go to the “Giving Voice to Values” website: (http://www3.babson.edu/babson2ndgen/GVV/default.cfm.

There are many exercises available there, which can help you teach the importance of identifying values and then provide tools you can use to help students begin to practice voicing their values.

2. Have you ever practiced raising an ethical issue to a professor or to your manager? What did you do? What were the results?

Again, see “Giving Voice to Values.” This would make a great homework assignment.

3. Have anti-discrimination laws helped or hurt the fair treatment of workers?

This really depends on whom you talk to. However, there is probably little argument among labor experts that the strides made by women and minorities in the workplace would probably never have taken place, (or would have occurred at a much slower pace) if not for anti-discrimination legislation. As with everything else, there has been a backlash of sorts. Also, many young women and minorities today find it impossible to believe that only 20 years ago, their prospects for employment and advancement would have been far different than they are now.

4. Is diversity management an ethical issue?

If we buy into the argument that diversity management helps us appreciate differences among various groups, then it could be viewed as an ethical issue from the standpoint of fairness and respect toward all individuals. If diversity management helps us manage people more fairly, then it certainly could be viewed as an ethical issue.

5. Is sexual harassment as important an issue for men, as it is for women?

Yes. If research is correct and sexual harassment is about power, then anyone can wield it. Whoever has the power -- male or female -- can make life difficult in various ways for those who have less power. According to Newsweek, 16% of sexual harassment claims filed with the U.S. Equal Employment Opportunity Commission (EEOC) are from males. (Gesaman, Krista. “Abuse of Power,” Newsweek, January 13, 2010. http://www.newsweek.com/2010/01/12/abuse-of-power.html, access date: July 27, 2010.)

Since so much interpretation of sexual harassment in the courts is based on what is "reasonable," try to determine what students think is reasonable. For example, try to determine what the class thinks is reasonable when it comes to asking someone out. Is it sexual harassment to ask someone out once? (Almost everyone will say "no.") Is it sexual harassment to ask someone out twice? (Almost everyone will still say "no," although one or two people may disagree.) How about five times? (The majority of people in the room will now think that it is sexual harassment.) How about ten times? (Now, it would be unusual for someone to think that this is not sexual harassment.) This exercise recently produced amusing results in one group of executive education students. One man in his 50's exclaimed that he had asked his wife out 20 times before she accepted, and he had no idea that his persistence would be considered harassment by almost all of his peers. Another man in the group said, “Today you would be considered a stalker.”

6. What conditions would make accepting a gift from a vendor or a client acceptable?

Accepting a gift from a vendor could be acceptable, if it was of nominal value -- probably under $100 (or whatever figure an employer has determined to be nominal). A gift could also be acceptable, if it was a food product that could be shared by a department. For example, many companies would consider it acceptable, if an elaborate tin of assorted cookies and snacks was sent to and accepted by a department of employees. The same present sent to and accepted by an individual, may not be acceptable depending on company policy. In most cases, the conditions should not change outside of the U.S. See Chapter 11 for more information on gifts.

Probes to Stimulate Discussion

· "Is there a difference between a gift given by an individual or one given by a company?"

· "What if the gift was an invitation to a party, or a day at a company-sponsored tennis match, where all clients were invited?"

7. Describe the conditions under which you could hire a college friend.

There are probably no circumstances under which this would be acceptable. Hiring implies that an individual would report to you and be appraised by you. That is a conflict of interest, regardless of how you look at it. The only possible exception could be a part-time, temporary job, like working in a department store during the holidays, or working on a construction detail during the summer. In both cases, the work is short term and the wages are set. The operative word in this question is "friend." The nature of the relationship is important. If the person is more of an acquaintance, hiring the person would probably be acceptable.

8. Why do certain professionals -- bankers, accountants, lawyers, physicians, clergy -- have fiduciary responsibilities?

Certain professions have fiduciary responsibilities, because they are known as "trust" professions. All of these professions have access to personal, confidential information about finances, health, or other highly private matters and therefore, they must exercise a higher standard of care regarding their clients' confidentiality.

9. What would you do if a former subordinate asked you to write him/her a letter of reference on corporate letterhead?

As is stated in the text, you should get your company’s permission to do so. It is almost always better (safer) to write a personal letter on your personal letterhead and attach a business card. That way, the reference represents your “personal opinion” and is not likely to be taken as a “corporate” position.

10. Do employers have a responsibility to alert other employers to an employee's wrongdoing by supplying an unfavorable reference? Why or why not? Discuss the conflict between community responsibility and self-protection.

There has been some publicity lately about the ethical responsibility of employers to warn other companies about workers who have been dismissed for "cause" (see Chapter 8 in the "Terminations" section for a description of "cause.") For example, in an ethics training session, held recently at a leading university in the Midwest, three former bank examiners complained about how employers keep quiet, when it comes to employees' misdeeds. "The slime just go from one institution to another because no one will point a finger at them," said one former regulator. No doubt, employers have a balancing act, between any responsibility they may have to protect other companies from unscrupulous employees, and their desire to protect themselves from lawsuits filed by those employees for bad references.

11. What conditions would have to be present for you to blow the whistle about unethical conduct you observed at work? How would you go about it?

It is good to have a plan, even though it is difficult for us to anticipate how we will react when a real situation occurs. Recommend that students think about the following: How much and what kind of harm would be “enough” to trigger action on their part?

12. If Sherron Watkins had blown the whistle to the Houston Chronicle and not to Enron’s CEO Ken Lay, do you think she would have kept her job at Enron?

That is highly unlikely. Whistleblowers who report organizational misconduct to the press are usually ostracized or worse. Despite being named a person of the year by Time magazine, some have criticized Ms. Watkins for not going outside the firm and not reporting the problems sooner. But, as we said in the chapter, blowing the whistle is difficult and we believe that Ms. Watkins should be commended for her efforts to at least alert senior executives inside the firm.

13. Research a story of whistle blowing. Relate what “your” whistle-blower did with the seven steps recommended in the chapter. What have you learned from the comparison?

Students could read Sherron Watkins’ book, view the film, The Insider, or read stories written by other whistleblowers. They will probably learn that most whistleblowers are caught off guard and have not planned what they would do in such a situation. We have used clips from The Insider successfully in class, as a basis for discussion of whistle-blowing. (There is more under Homework Assignments.)


In-Class Exercises – Cases in the Chapter Text

These are great springboards for discussions in class. Divide your class into teams of 3 – 5 students and give them 5 – 10 minutes to discuss each case in their teams. Then ask the teams to report out. Who are the stakeholders in each case? What are the ethical issues? What are the possible courses of action? In fact, starting each class with one of these cases is a great way to focus students and get their “heads in the game.”

Case # 1: Discrimination

You and Lisa met five years ago, when you were hired into the management training program of a large utility. Although you are now in different parts of the organization, you have managed to stay close over the years. Lisa recently had a baby and plans to take advantage of the full six months of maternity leave the company offers. She told you that she is definitely coming back to work after her leave, and that her department has promised to hold her job for her. Meanwhile, you have seen a posting for her job on the company’s website. You run into one of Lisa’s colleagues in the hall and ask about the posting. He says, “Oh yeah, they’re going to fill that job. But don’t tell Lisa. She’s got five more months to be a happy Mom. Besides, they’ll find something for her to do if she decides to come back.”

Notes:

The reverse of this situation is probably what happens more frequently in industry: Many new mothers give every indication that they are returning to their jobs after a maternity leave, and then they do not. Many companies jump through hoops to try to keep positions open for workers on maternity leave, only to have the workers quit at the end of their leaves. It would be interesting in class to probe around this issue; to see if students think companies have any ethical obligation to hold jobs open for workers on maternity (or other kinds of) leave; and whether students think that workers on leave have any ethical duties, regarding their return to an organization which may be holding a job open for them.

Case # 2: Sexual Harassment

One of your coworkers is Joanne, a computer whiz with an offbeat style and a great sense of humor. Two of Joanne's favorite "targets" are you and Bill, another coworker who tends to be quite standoffish in his business relationships. Joanne is the department clown and is forever goading you and Bill -- you because you are a great audience and clearly think she is hilarious; Bill, because she likes to try to get him to be more approachable. Joanne frequently alludes to sexual subjects and has called both you and Bill "little alley cats" and "studs." While Joanne's behavior does not offend you at all, you are surprised when Bill approaches you in the men's room and bitterly complains about Joanne's constant teasing.

Notes:

We purposely wrote this case with a man as the "victim," to illustrate the fact that sexual harassment is not just a women's issue. While it is not typical for men to be harassed, when such incidents occur, it is just as disturbing as when it happens to a female. (See the “Teaching Notes” under Discussion Question 5 for more information.)

With all of the publicity and sexual harassment training going on in corporations in the last few years, most workers have a pretty good idea of what behavior is inappropriate in a work setting with other employees. Similarly, most students have become sensitized to this issue, and in fact, some are almost paranoid about it. It is important that students be aware that they need to know their audience. For example, in one large, well-respected firm, a young woman filed suit, because a male senior executive had placed his hand on her knee, while they were sitting in front of a computer screen. Certainly, most women would not react that vehemently to such a gesture. However, this woman had endured years of sexual abuse as a child and as a result the executive's gesture unhinged her. The company settled out of court, and the executive (who had an outstanding reputation) was warned and that was the end of it. That is why it is important to know who you are dealing with, before you make any comment or gesture that could be considered sexual.