MOR 573 Ethical and Social Issues in Business - USC Marshall

MOR 573Ethical and Social Issues in BusinessProf. Paul S. AdlerSpring, 2008Tu-Th 9:30-10:50amDraft: Dec 6, 2007Some background to the courseMarshall MBA students have shown a growing interest in social and ethical issues inbusiness. In response to this interest, I volunteered to work with interested students and theNet Impact chapter to develop a course on these topics. Several students offered input overthe Fall 2007 semester, and this course syllabus in the fruit of that collaboration.Course descriptionBusiness leaders confront increasingly complex challenges in both the market andnon-market dimensions, and the two are increasingly intertwined. In the market domain,businesses face increasingly assertive competitors, investors, customers, and suppliers. Thenon-market challenges are just as daunting: growing pressures from legislators, regulators,social movements, community groups, and unions; an increasingly diverse workforce with newexpectations of work; new ethical dilemmas; and all these complicated by the greater globalspan of business organizations.Your other MBA courses equip you to deal with the market challenges; this course isdesigned to equip you to play a leadership role relative to the non-market challenges and totheir interconnection with the market challenges. We will examine the resulting issues fromthe economic, socio-political, strategic, and ethical perspectives. We will study a range oftension points at the global/societal, industry, firm, and individual levels.Teaching/learning methods used in this course will include case studies, lectures,guest speakers, class presentations, and a research/consulting project.Course objectives To help you develop a broader and deeper understanding of the social and ethicalchallenges facing business. To deepen your understanding of the diverse stakeholder groups that interact withbusiness organizations and the kinds of expectations they hold with respect to their role in thebusiness enterprise and society. To sensitize you to the major responsibilities of business -- economic, legal, social, andethical -- and to appreciate the tensions among these. To develop your understanding of how ethical and social issues can shape corporatestrategy and conduct. To give you analytic tools for analyzing these dimensions of business problems and modelsfor decision-making.To develop your skills in rigorous argumentation and in written and oral presentation.Course structure and themesThere are many issues that should to be explored under the broad heading of “ethicaland social issues in business” – far too many to be covered in a single course. But in broadoutline, there are some major headings that are essential:

2* Introduction* Business as a contested social institution* Perspectives and criteria for assessing business’s economic and social performance* Ethics* Economics* Managerial/strategic* Technological change and intellectual property rights* Business’s relations with key stakeholders* Investors* Government* Natural environment* Suppliers* Customers* Employees* Unions* Community* Media* Activist organizations* Social entrepreneurs* Organizational governance* Goals: business and social entrepreneurship* Processes: external and internal linkages* Personal challenges in dealing with these issues.Within this broad outline, the course focuses on cases that reflect the objectiveimportance of the issues as well as the student design team’s interests. Since environmentalissues are rank high on both lists, this year we will emphasize sustainability issues in ourchoice of cases.ProjectsA project will be the centerpiece of the course. You can work as a team (4 studentsmaximum) or as an individual. You will choose the topic as a function of your personalinterests and in discussion with the instructor. There are two generic types of topics: (a) an“ethics and social performance” audit of an organization that you are interested in, and (b) ananalysis of a social issue that you are interested in. Possible topics include: a marketing planfor a social-entrepreneurship venture, Wal-Mart’s employment or environmental practices,sweatshops in LA, pollution controls at the LA ports, etc. You may not rely exclusively onlibrary research: you must also meet with or at least interview by phone a range of therelevant stakeholders.You are encouraged to select an industry of interest to you, and identify asocial/ethical issue relevant to actors within that industry. For example:* automobile: pollution, green manufacturing, alternative transportation* food: agriculture supply chain, farm subsidies, organics* finance: microfinance, social investment funds* energy: alternative energy sources* housing/real estate: urban development* education: public, charter, and private schools.You will need to select a specific client who is the intended audience of your projectreport. You can choose your client from a number of possibilities:* a firm’s CEO or board* an activist organization’s leader or board* a relevant industry regulator* a relevant legislative committee.In the course of the project research, you will need to:

3* identify a client;* identify the stakeholders and their interests;* identify and analyze the relevant social, economic, and/or legal factors;* identify the key ethical and social issues;* identify and analyze the available options; and* propose and defend a resolution for your client.As described in more detail in the Appendix, each group will make two presentationson their project to the entire class, one in the form of a progress report and the other at theend of the term. I will also meet with each group three times over the course of the semesterto review your progress. The final deliverable is the oral report to the class plus a “talkingdocument.”I realize that you are busy with many other commitments, and moreover, classprojects are difficult because of their team coordination requirements. We will therefore usesome class time alleviate those pressures. However, I assume I will also need to meet outsideclass time with your team, during weekdays, evenings, or weekends as a function of ourvarious schedule constraints.Topic memosOver the course of the semester, you will need to submit a total of 4 topic memos.Each memo will present your analysis of the case or sets of readings assigned for a specificclass session. You can choose any 4 of the class sessions to fit your interests and schedule.The memos will be about 3-5 pages single-spaced. They should answer the Key Questionsspecified in the Session-by-session description below. They are due at the start of class; youcan email me ahead of time or give it to me at the start of the session. I cannot accept lateassignments.Class attendance and participation Students are expected to attend class regularly. Class attendance will be part of the classparticipation evaluation, so absences will be penalized. If you are absent for a class, you can reduce by 50% the impact on your participationgrade by preparing an extra topic memo for the materials under discussion that day, so longas I receive it within 24 hours of the end of class. Since during class I may call on students at any time, please avoid embarrassment bytelling me before class if you are not prepared. If you are uncomfortable with class participation, please let me know at the beginning ofterm and I will work with you to help you overcome this barrier.GradingThe project will account for the greater part of the course grade. The project grade willbe a group grade, adjusted up or down as a function of team members’ peer evaluations (seeAppendix).Project 57%Individual class participation 15%Topic memos (4 x 7%) 28%Total 100%Classroom etiquetteAn atmosphere of mutual respect is in order. So please...

4 arrive at class on time: late arrivals are disruptive to your fellow classmates and to theconduct of the class;turn off your cell phones before you enter the classroom;do not engage in side conversations during class;do not pack up and leave towards the end of the class until it is clear the class is over.Use of laptops during classLaptop use is not allowed during this class. In this class, it is far important toparticipate than to take detailed notes. A few hand-written notes will suffice. After each class,I recommend you can take some time to reflect on the discussion and type up whatever notesseem useful.Academic integrityThe following information on academic integrity, dishonesty, and the grading standardare placed here at the recommendation of the School of Business Administration Faculty andare taken from the Faculty Handbook:“The University, as an instrument of learning, is predicated on the existence of anenvironment of integrity. As members of the academic community, faculty, students,and administrative officials share the responsibility for maintaining this environment.Faculty have the primary responsibility for establishing and maintaining anatmosphere and attitude of academic integrity such that the enterprise may flourish inan open and honest way. Students share this responsibility for maintaining standardsof academic performance and classroom behavior conducive to the learning process.Administrative officials are responsible for the establishment and maintenance ofprocedures to support and enforce those academic standards. Thus, the entireUniversity community bears the responsibility for maintaining an environment ofintegrity and for taking appropriate action to sanction individuals involved in anyviolation. When there is a clear indication that such individuals are unwilling or unableto support these standards, they should not be allowed to remain in the University.”(Faculty Handbook, 1994: 20)Academic dishonesty includes: (Faculty Handbook, 1994: 21-22) Examination behavior - any use of external assistance during an examination shall beconsidered academically dishonest unless expressly permitted by the teacher. Fabrication - any intentional falsification or invention of data or citation in an academicexercise will be considered a violation of academic integrity. Plagiarism - the appropriation and subsequent passing off of another’s ideas or words asone’s own. If the words or ideas of another are used, acknowledgment of the original sourcemust be made through recognized referencing practices. Other types of academic dishonesty - submitting a paper written by or obtained fromanother, using a paper or essay in more than one class without the teacher’s expresspermission, obtaining a copy of an examination in advance without the knowledge and consentof the teacher, changing academic records outside of normal procedures and/or petitions,using another person to complete homework assignments or take-home exams without theknowledge or consent of the teacher.Students with disabilitiesAny student requesting academic accommodations based on a disability is required toregister with Disability Services and Programs (DSP) each semester. A letter of verification forapproved accommodations can be obtained from DSP. Please be sure the letter is delivered tothe instructor as early in the semester as possible. DSP is located in STU 301 and is open from8:30 am to 5:00 pm, Monday through Friday. The phone number of DSP is (213) 740-0776Returned papers

5Papers unclaimed by a student will be discarded after four weeks, and so will not beavailable should a grade appeal be pursued by the student following receipt of his/her coursegrade.COURSE OUTLINE(draft version: to be refined with student design team)Date Theme Case Project milestonesIntroduction: The contested place of business in societyTues Jan 15 Introductions Ford Pinto (handed out inclass)Thurs Jan 17Business undereconomic and socialpressureTues Jan 22Perspectives and criteriaProject brainstorming sessionThurs Jan 24 Ethics Selections from: A.Weston: 21 st CenturyEthical ToolboxTues Jan 29 Managerial/strategy Amanco: Developing asustainability scorecardThurs Jan 31 Political-economy Week of 1/29: Topicdefined – team meetswith instructor outsideclass timeTues Feb 5 Combining perspectives AIDS in AfricaBusiness’s relations with key stakeholdersThurs Feb 7 Investors Sustainable developmentand socially responsibleinvesting: ABB in 2000Tues Feb 12 Government The politics of tobaccocontrolThurs Feb 14 Government (cont’d) Workers’ rights and globaltrade: The US-CambodiaBilateral Trade AgreementTues Feb 19 Environment Wal-Mart’s sustainabilitystrategyThurs Feb 21 Environment (cont’d) UBS and climate changeTues Feb 26Thurs Feb 28Project: progress reports to classProject: progress reports to class

6Date Theme Case Project milestonesTues Mar 4 Suppliers Charles Veillon Sometime between 2/27 and 3/6:Team meets with instructor outsideclass time to review progress reportThurs Mar 6 Customers Beech-NutTues Mar 11 Employees Deloitte & ToucheThurs Mar 13 Unions La ConexionFamiliarTues Mar 25 Community Canyon JohnsonUrban FundThurs Mar 27Tues April 1Thurs April 3ActivistorganizationsStrategic activism:The RainforestAction NetworkWorkshop on rough-cut presentationsWorkshop on rough-cut presentationsTues April 8Thurs April 10Tues April 15SocialentrepreneursIntegrating socialand business goalsWhen it all goessourGreen Dot publicschoolsOrganizational governancePatagoniaWorldComPersonal challengesSometime between 4/2 and 4/10:Team meets with instructor outsideclass time to review rough-cutThurs April 17 Standing up Martha McCaskeyTues April 22Thurs April 24Final presentations to classFinal presentations to classTues April 29Wrap up

7TOPICS, ASSIGNED READING, ASSIGNMENT QUESTIONS,OPTIONAL BACKGROUND READINGSINTRODUCTION: THE CONTESTED PLACE OF BUSINESS IN SOCIETYTues Jan 15: IntroductionsCase: Ford Pinto (handed out in class)Thurs Jan 17: Business under economic and social pressureAssigned readings: Net Impact mission statement M. Friedman: “The social responsibility of business is to increase its profits” New YorkTimes Magazine, Sept 13, 1970 H. Leavitt, “The dangers of social responsibility” HBR Sept-Oct 1958 K. Sundaram and A. C. Inkpen, “The corporate objective revisited,” OrganizationScience, May-June 2004 R. E. Freeman, A. C. Wicks, and B. Parmar, “Stakeholder theory and ‘The corporateobjective revisited,’” Organization Science, May-June 2004 D. Doane, “The myth of CSR,” Stanford Social Innovation Review, Fall 2005Assignment questions:1. In your view, should corporations attempt to take on social responsibilities beyondthose to their investors and the law? How do you respond to the arguments againstyour position?2. What conditions external to the corporation would encourage or discourage corporatesocial responsibility?Optional background reading: Michael Bradley and Cindy A. Schipani, Anant K. Sundaram, and James P. Walsh.(1999) “The Purposes and Accountability of the Corporation in Contemporary Society:Corporate Governance at a Crossroads.” Law and Contemporary Problems 62: 9-47 John Kay and Aubrey Silberston. (1995) “Corporate Governance.” National InstituteEconomic Review 95 (3): 84-97. D. Millon, “Theories of the corporation.” Duke Law Review, 1990 W. T. Allen, “ Our schizophrenic conception of the business corporation” Cardozo LawReview 1992Tues Jan 22: Project brainstorming sessionPERSPECTIVES AND CRITERIAThurs Jan 24: EthicsAssigned reading: Selections from A. Weston: 21st Century Ethical Toolbox (Oxford U.P. 2001)Assignment questions:1. Use Weston’s framework to analyze the Pinto case from Jan 15.Tues Jan 29: Managerial/strategyCase: Amanco: Developing a sustainability scorecard (HBS 107-038)

8Assigned reading: Strategies beyond the market (HBS 707-469)Assignment questions:1. Is the Amanco strategy an example of corporate social responsibility or corporate selfinterest?2. Why does Salas need a strategy map and balanced scorecard to pursue his triplebottom-line objectives?3. Why did he feel he needed to modify the more standard strategy map/BSC format?4. What challenges face Salas as he tries to implement this strategy? Whatrecommendations do you have for him?Optional background readings: D. P. Baron, “Private politics, corporate social responsibility, and integrated strategy,” J.of Economics & Management Strategy, Spring 2001 R. S. Kaplan and D. P. Norton, “Transforming the Balanced Scorecard from PerformanceMeasurement to Strategic Management: Part I,” Accounting Horizons (March 2001):87–104.Thurs Jan 31: Political-economyAssigned readings: Adam Smith: selection from The Wealth of Nations F.A. Hayek, “The use of knowledge in society,” American Economic Review Sept 1945 M. and R. Friedman, selections from Free to Choose F. Engels, Socialism: Utopian and Scientific, part 3. E. O. Wright, “Compass points: Towards a socialist alternative,” New Left Review, Sept-Oct 2006Assignment questions:1. What do these various conceptions of the political-economy of capitalism suggest aboutthe desirability and feasibility of corporations assuming broader social responsibility?Optional background readings: G. Esping-Andersen and K. van Kersbergen, “Contemporary research on socialdemocracy,” Ann. Rev. Sociol. 1992Thurs Feb 5: Combining perspectives: intellectual property rightsCase: Life, death, and property rights: The pharmaceutical industry faces AIDS in Africa (HBS702-049)Assignment questions:1. How should the pharmaceutical companies respond to the plague of AIDS in Africa?2. What strategy should they follow to protect their property rights?3. How far should they be willing to go? What are the costs and benefits?Optional background readings: Alan F. Holmer, “The case for innovation: The role of intellectual property protection,”Statement before the Economist’s Second Annual Pharmaceuticals Roundtable, Nov 20,2002 S. Taurel, “The Worldwide Campaign against Pharmaceutical Innovation.” AmericanEnterprise Institute, March 19, 2003 Heller, M. A., R. S. Eisenberg, 1998. “Can patents deter innovation? The anticommonsin biomedical research.” Science. 280 (5364) 698-701. Doctors Without Borders, “Equitable access: Scaling up HIV/AIDS treatment indeveloping countries,” Dec. 2002 Debra Watson, “US pharmaceutical companies reap huge profits from AIDS drugs,”World Socialist web site, June 5, 1999

9 L. Lessig, “The people own ideas!” Technology Review, June 2005BUSINESS’S RELATIONS WITH KEY STAKEHOLDERSTues Feb 7: InvestorsCase: Sustainable development and socially responsible investing: ABB in 2000 (HBS 701-082)Assignment questions:Optional background readings: The fiduciary relationship: A legal perspective (HBS 304-064) When investing and social objectives meet (HBS 106-043) Social Investment Forum, 2005 Report on Socially Responsible Investing Trends in theUnited States, Washington DC, Jan 2006 Peter Camejo, ed., The SRI Advantage: Why Socially Responsible Investing HasOutperformed Financially. New Society Publishers, 2002.Thurs Feb 12: GovernmentCase: The politics of tobacco control (KEL 062)Assignment questions:Optional background readings: Note on lobbying (HBS 707-471) Public law: The rules of the game (HB 806-172) Influencing power: reviewing the conduct and content of corporate lobbying(Sustainability, WWF)Thurs Feb 14: Government (cont’d)Case: Workers’ rights and global trade: The US-Cambodia Bilateral Trade Agreement (HBS703-034)Assignment questions:1. Did Cambodia do the right thing in signing this agreement?2. How should we portray the agreement? Is it a case of progress or protectionism? Onwhat basis is it one or the other?3. Looking ahead, what should Cambodia do? What advice would you give to MinisterPrasidh?Optional background readings: The World Trade Organization (HBS 703-015) To trade or not to trade: NAFTA (HBS 705-034) Inequality and globalization (HBS 705-040) J. Bhagwati, “Why the critics of globalization are mistaken” De Economist, 2007 K. Watkins, “Trade, globalization and poverty reduction: Why the rules of the gamematter,” presentation at the Carnegie Endowment for International Peace Seminar onworld trade and poverty, July 2002 A. Sen, Development as Freedom, Oxford U.P. 1999 J. E. Stiglitz, Globalization and its discontents, Norton 2003 J. E. Stiglitz, The overselling of globalization, in Globalization: What's New, edited byMichael M. Weinstein, Columbia University Press, 2005, pp. 228-261. E. Aisbett, “Why are the critics so convinced that globalization is bad for the poor?”NBER, 2004

10 Elissa Alben, “GATT and the Fair Wage: A Historical Perspective on the Labor-TradeLink,” Columbia Law Review, 101, 6: 1410-1447.Tues Feb 19: EnvironmentCase: Wal-Mart’s sustainability strategy (Stanford OIT-71)Assignment questions:1. Given the fact that Wal-Mart’s customers generally are unwilling to pay a premium forenvironmentally friendly products, how is the company deriving business value from itssustainability strategy, or if not, how can it ensure that it does in the future?2. Imagine that you are Andy Ruben or Tyler Elm, evaluating the progress of theelectronics, seafood, and textiles networks. Which networks have been mostsuccessful? What explains the success or lack of it in these networks?3. How is Wal-Mart motivating its suppliers to continuously reduce the environmentalimpacts of their products and process, and to share information about how they dothat? How can the company stimulate the development of disruptive, breakthroughinnovations?4. Focus on one network: if you last name begins with the letter A through F, focus onseafood; G-M electronics: N-Z textiles. For the network to which you have beenassigned, propose one new “game changer” or “innovation project” not described in thecase. To support your proposal, outline the environmental benefits, the profitopportunity for Wal-Mart, the greatest challenges in implementation, and how Wal-Martcould overcome them.5. As evidenced by Ex 12, Wal-Mart’s sustainability strategy has generally been veryprofitable. However, two initiatives described in the case benefit society and theenvironment while apparently reduced Wal-Mart’s profits. Identify those two initiativesand imagine that you are their internal champion. How do you propose to justifypursuing those initiatives?Optional background readings: S. L. Hart, “Beyond greening: strategies for a sustainable world,” HBR Jan-Feb 1997 www.sustainability.com Geyer and Jackson, “Supply loops and their constraints: the industrial ecology ofrecycling and reuse” Calif. Mgt. Rev. Winter 2004 G. Hardin, “The tragedy of the commons,” Science. 162: 1243-1248 M. J. Epstein, “Improving environmental management with full environmental costaccounting,” Epstein, Environmental Quality Management, 1996 Environment Agency, UK, “Corporate Environmental Governance” 2004 J. Howard, J. Nash, J. Ehrenfeld, “Standard or smokescreen? Implementation of avoluntary environmental code,” California Management Review, Winter 2000Thurs Feb 21: Environment (cont’d)Case: UBS and climate change: Warming up to global action? (HBS 707-511)Assignment questions:1. Which of the four options should Suter support and why?2. If UBS decides to adopt any of the four options, do you recommend reducing thecompany’s own energy consumption, or should UBS buy carbon offsets? If yourecommend the latter, is your recommendation to invest in CERs, ERUs, or VERs?Optional background readings: Global climate change and emissions trading (HBS 707-015) D. Cullenward and D. G. Victor, “Making carbon markets work,” Scientific American,Sept 24, 2007

11 Bill Baue, “Emissions trading commodifies carbon, but does it really solve climatechange?” 2007Tues Feb 26: Project progress reports to classThurs Feb 28: Project progress reports to classTues Mar 4: SuppliersCase: Charles Veillon (A) (HBS 307-002)Assignment questions:1. Did Zwahlen terminate relations with existing carpet suppliers too quickly?2. To what extent if any is the use of child labor and other supplier practices theresponsibility of Zwahlen and his company?3. As Zwahlen, what if any further action would you take regarding child labor and supplierwork practices?4. If Zwahlen decides to take further action, would you recommend that Veillon actunilaterally or that it collaborate with others? If the latter, what kind of collaborationwould you recommend?5. As Zwahlen, would you accept the invitation to appear on “La Marche du Siecle”?Optional background readings: Harrison, J. Scorse, “Improving the conditions of workers? Minimum wage legislationand anti-sweatshop activism,” California Management Review, Winter 2006) Locke, R., Kochan, M., Romis, M., and Qin, F., “Beyond corporate codes of conduct:Work organization and labour standards at Nike’s suppliers,” International LabourReview, 2007Thurs Mar 6: CustomersCase: Beech-Nut Nutrition Corporation (A-1) (HBS 392-084)Assignment questions:1. In Anderson’s position, what would be your concerns on learning about the Fridayincident?2. In Storer’s position, what would be your assessment of the apple juice situation?3. What are the origins of Anderson’s problems?4. What would you advise Anderson to do? What do you think he will do?Optional background readings: J. P. Foley, “Ethics in advertising” J. Public Policy and Marketing, Fall 1998 Pontificial Council for Social Communications (1997), Ethics in Advertising. Vatican City:Vatican Documents G. R. Laczniak, “Reflections on the 1997 Vatican Statements regarding ethics inadvertising” J. Public Policy and Marketing, Fall 1998 Deception in business: A legal perspective (HBS 306-019) Note on individual and corporate liability (HBS 305-049) M. E. Drumwright and P. E. Murphy, “How advertising practitioners view ethics,” Journalof Advertising, Summer 2004Tues Mar 11: EmployeesCases: Deloitte & Touche: Changing the workplace (B) (HBS 9-300-013)Assignment questions:

121. What were the factors accounting for Deloitte & Touche’s poor track record withwomen’s careers?2. What explains the progress they have made?3. What should Copeland do?Optional background readings: William A. Darity, Jr., and Patrick L. Mason, “Evidence on discrimination inemployment: Codes of color, codes of gender,” J. Economic Perspectives, Spring 1998 James J. Heckman, “Detecting Discrimination,” J. Economic Perspectives, Spring 1998Thurs Mar 13: UnionsCase: Sprint: La Conexion Familiar (A) (Ivey 9A97C001)Assignment questions:1. What is the problem that Sprint faces?2. What should Sprint management do? What implications will this decision have on thefuture of its long distance service market?3. How important is the Communications Workers of America’s potential reaction to anydecision Sprint makes?Optional background readings: Barry Hirsch, “What do unions do for economic performance?” Journal of LaborResearch (Summer 2004) J. P. Ferguson and T. A. Kochan, “Sequential failures in workers’ right to organize,” MITMarch 2006 M. Levitt, Confessions of a union buster (Crown, 1993)Tues Mar 25: CommunityCase: Canyon Johnson Urban Fund (HBS 706-442)Assignment questions:1. What are Canyon Johnson Urban Fund’s internal rates of return for the Sunset and theHollywood projects? (CJUF believes it can obtain debt financing at a 5% interest ratefor a term of 25 years. In your valuation of Hollywood and Highland, disregard thefund’s option for partial ownership of the hotel.)2. Which project should Turner choose?Optional background readings: Michael E. Porter. “Realizing the Inner City Retail Opportunity: Progress and NewDirections,” report by ICIC and the Boston Consulting Group, 2006Thurs Mar 27: Activist organizationsCase: Anatomy of a corporate campaign: Rainforest Action Network and Citigroup (A, B)(Stanford P-42A, P-42B)Assignment questions:1. Was it strategically wise for RAN to launch a campaign on project finance? Can RANrealistically expect to affect project finance, which is provided by banks around theworld?2. Was Citigroup a good or bad target for RAN? Why not focus on project contractorsthemselves?3. At the end of the B case, should Citibank have adopted its new policy? How should itimplement that policy?4. How should RAN enforce and monitor Citigroup’s compliance? Is Citigroup’s reportingpledge adequate?5. What strategy should RAN use to obtain agreements with The Liquidators?

13Optional background readings: D. Spar, L. T. La Mur, “The power of activism: Assessing the impact of NGOs on globalbusiness” California Management Review Spring 2003Tues April 1: Workshop on rough-cut presentationsThurs April 3: Workshop on rough-cut presentationsTues April 8: Social entrepreneursCase: Green Dot public schools: To collaborate or compete? (HBS 307-086)Assignment questions:Optional background readings: Note on student outcomes in US public education (HBS 307-068) J. Kozol, The Shame of the Nation: The Restoration of Apartheid Schooling in America(2005), Letters to a Young Teacher (2007)ORGANIZATIONAL GOVERNANCEThurs April 10: Integrating social and business goalsCase: Patagonia (HBS 703-035)Assignment questions:1. Evaluate Patagonia’s strategy2. How important to Patagonia’s strategy is its environmental position?3. How fast can Patagonia grow? How fast should it grow?4. How would Patagonia’s strategy differ if it were publicly held?Optional background readings: The social enterprise spectrum: Philanthropy to commerce (HBS 396-343)Tues April 15: When it all goes sourCase: Restoring trust at WorldCom (HBS 404-138)Assigned readings: Corporate reform in the United States (HBS 304-091) E. Spitzer, “Business ethics, regulation, and the “ownership society,’” National PressClub, Jan 31, 2005Assignment questions:1. What are the three or four central objectives that Bradeen hopes to achieve with theproposals on “Restoring trust”?2. Will these proposals be effective in preventing another WorldCom or will they devolveinto a mere checklist?3. Are Bradeen’s recommendations aimed at avoiding major misconduct or improving firmperformance?4. Which of the five board models is ideal from the point of view of Capellas, the newlyappointed CEO? From the point of view of a prospective board member? Which will beencouraged by Bradeen’s proposals?5. Would you sign the Undertaking and Pledge as Capellas did? As the CEO of any publiccompany? As a prospective director? As an employee?Optional background readings: J. S. Demski, “Corporate conflicts of interest,” J. Ec. Perspectives, Spring 2003

14 R. W. Clement, “Just how unethical is American business?” Business Horizons 49, 2006 KPMG: Integrity Survey 2005-2006 L. K. Trevino, G. R. Weaver, D. G. Gibson, B. L. Toffler, “Managing ethics and legalcompliance: What works and what hurts,” California Management Review, Winter 1999 T. A. Kochan, “Restoring trust in American corporations: Addressing the root cause,”Journal of Management and Governance, 7, 2003PERSONAL CHALLENGESThurs April 17: Standing upCase: Martha McCaskey (HBS 403-114)Assignment questions:Optional background readings: S. Bok, “Whistleblowing and professional responsibility.” NYU Education Qrtly, Summer1980 R. A. Larmer, “Whistleblowing and employee loyalty,” J. Bus Ethics, 11, 1992 David Luban, Alan Strudler, and David Wasserman: “Moral Responsibility in the Age ofBureaucracy.” Michigan Law Review, Aug 1992Tues April 22: Final presentations to classThurs April 24: Final presentations to classTues April 29: Wrap up

15APPENDIX: PROJECT DETAILSTeam meetings with instructor during weeks of Jan 29, March4, April 8,Each team needs to meet with me outside class three times over the course of thesemester to review your progress and brainstorm improvements. Each time, we will need tofind one hour that works for me and all the team members. I will be available evenings andweekends if necessary.Program for class on Feb 26, 28The goal on these days is to (a) give you an opportunity to pull together a "preliminaryassessment", (b) bring the class up to date on what you have learned, (c) give us anopportunity to challenge your thinking.I realize that these are just "interim reports" so there will be gaps where you simplyhaven't had a chance to do the research or do your analysis yet. But by trying to do aspolished a presentation as you can, you will see where the gaps are more clearly.Each team will get 15 minute for their oral presentation -- that's a firm time limit! Youmay find you have too much material to cover in just 15 minutes -- but this limit will force youto think about what's most important in what you want to say. Then we'll have 10-15 minutesfor Q&A from the audience.You should use Powerpoint Slides and bring Handouts for the entire class. Yourhandouts can include charts, data, whatever backup material you think will be helpful to us. Inyour Ppt presentation, since this is just an interim report, it's ok for you to have a couple of"placeholder" slides -- i.e. ones were you say, "This is where we plan to discuss x, y, z, buthaven't got the material ready yet..."You should also use this as an opportunity to educate me on your topic: Please bringme copies of the most valuable documents you have found so that I can read up on the issueand help you move forward.Here is a general outline of your presentation:1. Summary: the main issue and your proposed solution2. The relevant facts3. The key stakeholders4. The significant rights, interests and issues (legal, economic, social,moral/ethical) for each stakeholder5. The main options for resolving the problem6. The significance of the various options for the various stakeholders: how are theirrights and concerns affected?7. Recommendation and rationale for this recommendationSome observations: The main issue: it's often not easy to identify the main issue: people will have differentopinions on how to define the "real issue" at stake in any given problem area. Decidingwhat the real issue is -- and convincing us that your characterization is correct -- mayrequire of you some analysis of the facts (step 2). The relevant facts: your view of the relevant facts might change as you get to the laterparts of the analysis Stakeholders are any people affected by the issue: sometimes, some stakeholders may notbe obvious at first sight -- they may be people far “downstream” or “upstream.” Options: there are often many possible options: focus on the plausible ones -- not bogusones. And it's usually important for the clarity of your argument that you identify just 2, or3,or at most 4 main ones -- that's not always easy to do: the main ones are the ones that

16are most strongly contrasting rather than just minor variants of each other. It’s best if theyare mutually exclusive. Assessing significance of the options: You might end up with a chart that lists the options inthe columns and assesses their merit in terms of the various concerns -- rights, costs, etc,-- that the stakeholders have Select an option and make your argument: This is usually the hardest part of thepresentation: it's easy to tell us what you think should be done, but the hard part isconvincing us that any reasonable person should agree with you!!Program for class on April 1,3Each team only needs to come to one of these two days, April 1 or 3 -- the other day,you will have free; you can email me at your convenience to tell me which date you prefer andI will try to accommodate your preferences;Please bring copies of handouts for the entire audience, and bring me any newdocuments that you have found valuable so that I can do some further reading to help youmove forward.Each day, each team will have about 30-45 minutes: 15 minutes to present, and 15-30 minutes for follow-up Q&A and discussion with the audience.After each team's presentation, the students in the audience and I will all do writtenevaluations on both the content and the form. I will collect these evaluations at the end of thesession.I will meet with each team for one hour some time in the week following thepresentations. During the meeting, I will feed back to you a synthesis of the audienceevaluations and my own suggestions for improvement; I will brainstorm with you what yourcan do to make your final presentations as solid, interesting, and convincing as possible.Program for class on April 22, 24These two sessions will be devoted to final project presentations. Everyone is expected toattend on both days. Each team will have 15 minutes to present, followed by Q&A time.Apart from the oral presentation, each team has three deliverables. For the instructor: acopy of your “Talking Document” and “Memo” and for the class: black-and-white Handouts ofyour Powerpoint slides.Your Talking Document is composed of: Powerpoint Slides: you all know a lot about how to compose good slides (remember theGoldilocks rules: not too much content, nor too little) Notes Pages: where the Slide bullet points are not self-explanatory, Notes are important.These Notes should not be your voice-over script and should not be a prose report indisguise: they should simply add, in bullet point form, whatever extra information thereader would need to understand the points being made on the Slide. Appendices that show backup analysis or data required to support your analysis andrecommendation. (Not a data dump!)Your Memo: in about 4-5 pages single-spaced, you should lay out the key points of yourargument. Write it as if it were going to your client and as if they had not seen yourpresentation. You can refer to the Talking Document appendices for the data underlying yourassertions. But apart from that, the memo should be able to stand alone: i.e. reading it shouldbe a good substitute for being at the presentation meeting.Your Handout: please be ready to give everyone in the audience a Handout with 2-4 pptslides per page.

17MOR 573Project Presentation Grading SheetTeam/Project:The issue:* Has the team identified a real issue that underlies the “presenting symptoms”?* Has the team defined the issued in a convincing way?The stakeholders:* Has the team identified all the relevant stakeholders?* Has the team identified the “stakes” (rights, concerns) that each stakeholder has in the issue?The alternatives:* Has the team identified a good range of possible solutions to the problem?* Has the team analyzed these alternatives’ pros and cons from all the relevant ethical and socialperspectives?The recommendation:* Has the team made a compelling argument for its preferred solution?* Is the recommendation realistic?The presentation:* Does the argument flow in logical way?* Is the oral presentation engaging?* Are audio-visual materials used to good effect?* Is the hand-out well crafted?The memo:* Does it present your analysis clearly, logically, compellingly?The Appendices:* Do these provide backup evidence for your key assertions?* Do these provide evidence that you have really “done your homework” on the project?Overall comment:Overall grade for the project:

18MOR 573Peer Evaluation FormPlease use the following scale to rate your team members and yourself:F: Seriously deficientC: WeakB. GoodA. ExcellentPlease use the back of the form to provide any supporting narrative that would help illustratenotable strengths or weaknesses and that would justify an unusually high or low evaluation.Team member (TM) name (you are team member #1):TM1: TM2: TM3: TM4Evaluations:Preparation: Rate the extent to which the member completed the necessary assignments,had read the related material, and was ready to contribute to the team. Ratings for each teammember:TM1: TM2: TM3: TM4:Input: Rate the extent to which the member provided valuable input of ideas towards theteam’s work. Ratings for each team member:TM1: TM2: TM3: TM4:Diligence: Rate the extent to which the member took on the necessary roles to complete theteam’s work, their timeliness in completing and distributing work, and the quality of the workperformed. Ratings for each team member:TM1: TM2: TM3: TM4:Facilitation: Rate the extent to which the member helped the team maintain a positiveclimate and work together effectively. Ratings for each team member:TM1: TM2: TM3: TM4: