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Supplements the (A) case.

Supplements the (A) case.

A corporation can and should have a conscience. Organizational agents such as corporations should be no more and no less morally responsible (rational, self-interested, altruistic) than ordinary persons. The analogy that holds between the individual and the corporation makes it possible to project to corporations the concept of moral responsibility as it applies to persons.

Gulf Oil in Italy was confronted by the need to increase the authorized capacity at a refinery in the face of substantial opposition. Raises the issue of their use of "facilitating gratuities" to minor officials, payments to influence news reports, and the employment of a consultant to assist in government relations to gain passage of the permit.

A set of twelve questions provides executives with a framework to test pragmatically the ethical content of business decisions. The inquiry draws on traditional philosophical frameworks while avoiding the utopian and anticapitalistic bias prevalent in current applied business philosophy. The ethical inquiry method articulates corporate responsibilities and lays them open for examination.

Relates the April 1979 discovery of improper income transferal practices used at the H.J. Heinz Co. Background data on the company is presented, along with a detailed description of the organizational practices, the management incentive system, and the corporate ethical policy then in use. Also contains an organization chart and financial data for the 1972-78 fiscal years.

Summarizes the investigation conducted by outside legal and accounting firms under the Heinz audit committee. Improper practices were found at three of the five Heinz domestic divisions and at a number of foreign operations. Presents restated financial data for the period, filed by Heinz with the SEC. Summarizes the committee's assessment of contributing factors and its conclusions.

Presents a condensation of the audit committee's recommendations for organizational and policy changes to help prevent a recurrence of improper income transferal practices used at the H.J. Heinz Co.

Supplements the (C) case.

A recent MBA without a stable work history in the private sector feels that he is being forced to compromise his personal convictions and professional integrity through a violation of the Robinson-Patman Act. This person is in his mid-thirties, married, and carries substantial financial and family responsibilities. He has been forced to do other unsavory business practices but wants to call a halt to such compliance before he lets himself get involved in a larger spiral of illegal activity.

Supplements the (A) case.

A review of the activities following the expose of the cheating incident at West Point and leading up to the Secretary of the Army's decision on the situation.

An outline of the Secretary of the Army's decision in the matter of the 1976 cheating scandal at West Point.

Presents a review of published data on the 1976 cheating scandal at West Point. Written from the perspective of the Academy Superintendent, it raises issues of ethics, organizational change and action planning in the face of conflicting stakeholder interests.

Daniel Potter receives a boost in his young career as a CPA by being specially placed on a particularly important assignment. He and his boss, who is known both for his accounting acumen and his autocratic manner, come into direct conflict over the evaluation and reporting of one of the client's real estate properties.

Peter Green, a new salesperson for Scott Carpets, learns firsthand that his largest account has always been given a discount based on falsified information and expects the same preferred treatment to continue. Peter's boss condones the discount. Peter must decide whether to pursue the order on these conditions and how to handle his already shattered relationship with his boss.

In order to maintain commitment to ethical standards, companies must foster professional pride and honest business practices in their employees. Examination of the paper industry price-fixing conspiracy in 1976 indicates that a crowded and mature market, declining demand, and absence of product differentiation can create a ripe climate for price collusion. To avoid this, top managers must recognize these dangerous conditions, clearly communicate their intentions, and by their conduct set a good example for their subordinates.

An actual case history emphasizes the personal and business ethics managers currently face. Interviews gain insight into the reactions of three managers who were aware that their superiors were falsifying records for the home office. The managers suggested greater communication between the home office and the company office in order to avoid a similar occurrence. HBR readers respond in Sequel to Quasar Stellar, #68504.

Business, like poker, is often a game of strategic bluffs. The worlds of private and business life are separate and demand separate codes of ethics. The pressure to deceive is felt everywhere in business and deceptions are ethically justifiable. If public opinion and legal authorities raise a clamor, industry will create and enforce its own code to avoid government regulation. Blatantly unethical practices only serve to spoil the consumer environment in the long run. Aggression and competition are built into our society and business provides a useful outlet for them. The individual is pressured in many of these instances and must subordinate his feelings to carry out the objective. Departing from the strict truth and the golden rule is part of the strategy of business.

Public expectations with regard to big-business enterprise are rising sharply, and business leaders must prepare themselves to meet this challenge. Big companies are no longer private affairs, but community assets, and are expected to promote the country's competitiveness in world markets and innovate policies in new areas such as semi-free markets. They must also develop a code of conduct that reflects the double role of executives as businessmen and professionals.