Business Ethics: Decision Making for Personal Integrity & Social Responsibility 5th Edition by Laura

 
Construct a list of all the people who were adversely affected by Bernie Madoff’s Ponzi scheme.  Who, among these people, would you say had their rights violated?  What responsibilities, if any, did Madoff have to each of these constituencies?
The concept of “stakeholders” will be introduced in chapters 2 and 3; therefore this question is to help students get started thinking about the nature of “stakeholders.” Ask students to list the stakeholders in the Madoff situation.   An interesting side discussion can be generated by asking students to describe how all of these stakeholders were harmed, and whether or not they view the losses faced by some individuals or organizations (e.g., The Elie Wiezel Foundation for Humanity) differently than those faced by others (e.g., hedge funds or individual celebrities).
 
What difference, if any, exists between ethical reasons and reasons of self-interest? If a business performs a socially beneficial act in order to receive good publicity, or if it creates an ethical culture as a business strategy, has the business acted in a less than ethically praiseworthy way?
This question introduces the concepts of corporate culture and social responsibility, which will be discussed in chapters 4 and 5.
 
9.   During the recession of 2008-2009, many reputable companies suffered bankruptcies while others struggled to survive. Of those that did remain, some opted to reduce the size of their work forces significantly. In a business environment during those times, consider a company that has been doing fairly well, posting profits every quarter and showing a sustainable growth expectation for the future. However, the general ill ease in the market has caused the company’s stock price to fall. In response to this problem, the CEO decides to layoff a fraction of his employees, hoping to cut costs and to improve the bottom line. This action raises investor confidence; consequently, the stock price goes up. What is your impression of the CEO’s decision? Was there any kind of ethical lapse in laying off the employees, or was it a practical decision necessary for the survival of the company?
      Students should list and consider each of the stakeholders impacted by the company’s decision and analyze the business decision in the context of the business’ social responsibilities.
 
10. Every year, Ethisphere Magazine publishes a list of the world's most ethical companies. Go to their website; find and evaluate their rating methodology and criteria; and engage in an assessment (i.e. provide suggestions for any modifications you might make or a more or less comprehensive list, and so on).
      http://ethisphere.com/wme/