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Loyola University Chicago Graduate School of Business

Executive MBA Program

BUSINESS ETHICS

John R. Boatright

Fall 2003

DESCRIPTION This is a business ethics course for experienced managers that uses readings and case studies to reflect on the ethical aspects of managerial decision making and the management of ethics in organizations. The objectives of this course consist of a set of attitudes, knowledge, and skills that enable managers to make ethical decisions and to implement them effectively in an organizational setting. The course does not seek to impose any particular values or standards but provides instead an opportunity for examining one's own moral convictions and integrating them into management practice.

REQUIREMENTS The course material consists primarily of readings and case studies, and class sessions are conducted mostly by case discussion. In order for the case study method to work, it is essential that all assigned cases be read carefully and that issues and alternative courses of action be formulated and considered beforehand. In addition to the assigned reading and class participation, the requirements for the course include the one writing assignment of approximately 2,000 words. There are no examinations. The grade in the course is determined as follows: participation two-thirds and the writing assignment one-third.

WRITING ASSIGNMENT The writing assignment is a description of and a reflection on an ethical dilemma that you have faced in business. This assignment is an opportunity to reconsider a decision that you made with the benefit of the reading and discussion in this course. Because ethical dilemmas may involve sensitive and even confidential information, you may disguise the situation and the individuals involved. It may also be prudent to choose a

dilemma that minimizes the use of sensitive and confidential information. All papers will be treated as confidential and will be returned to you after they are graded. The paper should be approximately 2000 words (about 10 double-spaced pages). The papers should be double-spaced with one-inch margins, and stapled without any kind of binder. The writing assignment is due on the last class session, September 26.

CONTACT INFORMATION I may be reached by telephone at 312-915-6994. You may also communicate through fax at 312-9156988 or e-mail using the address [email protected] The mailing address is: School of Business Administration, Loyola University Chicago, 820 N. Michigan Avenue, Chicago, IL 60611. Further information, including this syllabus, is available on my personal homepage: http://homepages.luc.edu/~jboatri.

SCHEDULE Session 1 Reading: Reading: Case: Session 2 Reading: Reading: Case: Session 3 Reading: Reading: Case: Case: Case: Case: Session 4 Reading: Reading: Reading: August 23 a.m. Ethics and the Managerial Role

Business Ethics: A View from the Trenches The Discipline of Building Character Kathryn McNeil (A) August 23 p.m. Organizational Influences on Ethics

Moral Mazes: Bureaucracy and Managerial Work Ethical Leadership and the Psychology of Decision Making James Burke (A & B) September 12 Managing Ethics in Organizations

Managing for Organizational Integrity How Organizations Socialize Individuals into Evildoing Denny's Restaurants (A) Sears Auto Centers Salomon Brothers Beech-Nut's Bogus Apple Juice September 13 Corporate Social Responsibility

Can Socially Responsible Firms Survive in a Competitive Environment? The Next Wave of Corporate Community Involvement: Corporate Social Initiatives The Legitimacy of Direct Corporate Humanitarian Investment

Case: Case: Case: Session 5 Reading: Reading: Reading:

Merck & Co., Inc. (A & B) The Nun and the CEO Campbell Soup Company September 26 The Purpose of the Corporation

Whose Interests Should Corporations Serve? Ethics and Corporate Governance: Justifying the Role of Shareholder Hostile Takeovers

SOURCES Badaracco, Joseph L., "The Discipline of Building Character," Harvard Business Review (MarchApril 1998), 115-124. Badaracco, Joseph L., and Webb, Allen P., "Business Ethics: A View from the Trenches," California Management Review (Winter 1995), 8-28. Blair, Margaret M., "Whose Interests Should Corporations Serve?" in Ownership and Control: Rethinking Corporate Governance for the Twentieth-First Century (Washington, DC: The Brookings Institution, 1995). Boatright, John R., "Ethics and Corporate Governance: Justifying the Role of Shareholder," in Norman E. Bowie, ed., The Blackwell Guide to Business Ethics (Malden, MA: Blackwell Publishers, 2002). Boatright, John R., "Hostile Takeovers," in Ethics in Finance (Malden, MA: Blackwell Publishers, 1999). Darley, "How Organizations Socialize Individuals into Evildoing," in David M. Messick and Anne E. Tenbrunsel, eds., Codes of Conduct: Behavioral Research into Business Ethics (New York: Russell Sage Foundation, 1996). Dunfee, Thomas W., and Hess, David, "The Legitimacy of Direct Corporate Humanitarian Investment," Business Ethics Quarterly, 10 (2000), 95-109. Frank, Robert H., "Can Socially Responsible Firms Survive in a Competitive Environment?" in David M. Messick and Anne E. Tenbrunsel, eds., Codes of Conduct: Behavioral Research into Business Ethics (New York: Russell Sage Foundation, 1996). Hess, David, Rogovsky, Nikolai, and Dunfee, Thomas W., "The Next Wave of Corporate Community Involvement: Corporate Social Initiatives," California Management Review (Winter 2002), 110125. Jackall, Robert, "Moral Mazes: Bureaucracy and Managerial Work," Harvard Business Review (September-October 1983), 118-130. Messick, David M. and Bazerman, Max, "Ethical Leadership and the Psychology of Decision Making," Sloan Management Review (Winter 1996), 9-22. Paine, Lynn S., "Managing for Organizational Integrity," Harvard Business Review (March-April 1994), 106-17.

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