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Crisis at the 11th Hour
A successful lawyer describes an important decision she had to make as a young attorney about whether to disclose information in a contract. -
Legal Analysis: Insider Trading Liability
There are numerous restrictions against trading on material, nonpublic information (MNPI)-typically called "insider trading." This note describes the limitations facing managers and investors as enforced civilly and criminally within the United States. -
The Business of Pain: Johnson & Johnson and the Promise of Opioids
This case is designed to provide an engrossing overview of stakeholder capitalism through a vigorous discussion of the conflicts that can arise when trying to serve multiple stakeholders. In 2007, Johnson & Johnson's (J&J) subsidiary Janssen has to decide whether or not to launch a new opioid painkiller-the first such launch in 25 years-amidst growing concerns about opioid abuse in the U.S. The (A) case starts with the history of human interaction with opioids, the most effective painkillers known, from the Sumarians through the innovation of controlled release opioids, led by Purdue Pharma's OxyContin. By the time J&J is ready to launch a new opioid, this innovation has led to increased opioid addiction, complicating the launch decision. Benefits to customers are now murky, employees may no longer feel the company is living up to its Credo, and society as a whole may be harmed. The (B) case summarizes the fallout of the opioid crisis, and how J&J's participation in that crisis has affected their brand, and society. -
Ethics: Awareness
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The Business of Pain: Johnson & Johnson and the Promise of Opioids (B)
This case is designed to provide an engrossing overview of stakeholder capitalism through a vigorous discussion of the conflicts that can arise when trying to serve multiple stakeholders. In 2007, Johnson & Johnson's (J&J) subsidiary Janssen has to decide whether or not to launch a new opioid painkiller-the first such launch in 25 years-amidst growing concerns about opioid abuse in the U.S. The (A) case starts with the history of human interaction with opioids, the most effective painkillers known, from the Sumarians through the innovation of controlled release opioids, lead by Purdue Pharma's OxyContin. By the time J&J is ready to launch a new opioid, this innovation has lead to increased opioid addiction, complicating the launch decision. Benefits to customers are now murky, employees may no longer feel the company is living up to its Credo, and society as a whole may be harmed. The (B) case summarizes the fallout of the opioid crisis, and how J&J's participation in that crisis has affected their brand, and society. -
Wells Fargo Bank, N.A.: The Fake Accounts Scandal
After years building a solid customer base by cross-selling its financial service offerings, Wells Fargo was engulfed by a scandal over unauthorized accounts opened in customers' names. Regulators discovered that hundreds of thousands of fake accounts had been opened by bank employees scrambling to meet sales quotas. Was it the work of rogue employees, or the result of an unethical corporate culture coupled with an unrelenting drive to "sell, sell, sell"? -
Facebook-Can Ethics Scale in the Digital Age? (B)
Supplement to case 319030. -
Darden Investment Sales
TJ, a manager at an investment company, is alarmed when, during an evening out with Leslie, his female colleague, and five male prospective clients, the men behave in an overly familiar way with her. Although Leslie assures TJ that she can handle this type of attention, TJ nonetheless is very uncomfortable with the situation. What should he do? -
The Ethics of Consulting
The consulting field, with its variety of different experiences and scenarios, often presents numerous challenges and conflicts for those involved. These vignettes, some based on actual situations, present a number of dilemmas in which the protagonists must determine the right course of action, often when that is not easily identifiable. These vignettes identify situations in which one's values, ethical judgment, and sense of fairness might be tested and where the road to a good resolution might not always be clear. -
Your Star Salesperson Lied. Should He Get a Second Chance? (HBR Case Study and Commentary)
The CEO of a fictional pharmaceutical marketing company in India has positioned the company as the ethical alternative to its competitors, going as far as to change the company's tagline from "Health for everyone" to "Health with integrity." So when he learns that the firm's star salesperson fudged the numbers on a recent report, the CEO has to decide whether or not to sack him. Is firing the salesperson the right thing to do or should he be given a second chance? This fictional case study by Sandeep Puri features commentary by Faiza Hughell & Mohammed Isaquddin Kureshi. -
Your Star Salesperson Lied. Should He Get a Second Chance? (HBR Case Study)
The CEO of a fictional pharmaceutical marketing company in India has positioned the company as the ethical alternative to its competitors, going as far as to change the company's tagline from "Health for everyone" to "Health with integrity." So when he learns that the firm's star salesperson fudged the numbers on a recent report, the CEO has to decide whether or not to sack him. Is firing the salesperson the right thing to do or should he be given a second chance? This fictional case study by Sandeep Puri features commentary by Faiza Hughell & Mohammed Isaquddin Kureshi. -
Your Star Salesperson Lied. Should He Get a Second Chance? (Commentary for HBR Case Study)
The CEO of a fictional pharmaceutical marketing company in India has positioned the company as the ethical alternative to its competitors, going as far as to change the company's tagline from "Health for everyone" to "Health with integrity." So when he learns that the firm's star salesperson fudged the numbers on a recent report, the CEO has to decide whether or not to sack him. Is firing the salesperson the right thing to do or should he be given a second chance? This fictional case study by Sandeep Puri features commentary by Faiza Hughell & Mohammed Isaquddin Kureshi. -
Magellan versus Quesada: To mutiny or not to mutiny?
In April 1520, Gaspar de Quesada and other Spanish Captains mutinied against their Portuguese admiral Ferdinand Magellan. After being retired by the Portuguese King, Magellan approached the Spanish King, Charles I, claiming to know a passage through the newly found continent to South-East-Asia. The king promised Magellan significant personal gain and full authority over an armada of five ships. When leaving Spain in 1519, Magellan did not reveal the details of his plans to the mostly Spanish captains of the other ships, but rather ordered them to just follow his boat. A minor signal of disobedience by Magellan's deputy was met with immediate force and the expedition continued until Magellan ordered to stay in a natural harbor during Winter season and drastically rationed supplies. The case study describes a meeting between the Spanish Captains under the command of Gaspar de Quesada during which they debate their options, namely a mutiny to get control of the largest ship, San Antonio. Using a historical case and setting, the case allows to discuss multiple issues of contemporary interest in the domains of leadership and (business) ethics, namely loyalty, authority, power, (dis-)obedience, psychological contracts (and their violations), organizational success, and triple bottom line thinking. -
Challenging an Industry: The Rise and Fall of Teo Taxi
In 2014, with Uber disrupting the taxi industry worldwide and Montreal's industry, hampered by obsolete rules and regulations, in dire need of a revolution, the founders of Teo Taxi hoped to offer a fresh alternative. They proposed a unique business model based on an electric-only taxicab fleet, decent wages for drivers, and profits reinvested in the local economy. Reinventing an industry and fighting strong adversaries such as Uber would however come at a huge cost. The case recounts the story of a young company striving to reach breakeven without compromising the social and environmental values at its core. Despite its best efforts, in January 2019, Teo Taxi filed for bankruptcy, leaving 450 drivers jobless. The case invites students to identify the factors that led to Teo Taxi's bankruptcy and propose strategies that could have helped to achieve breakeven, stabilize the business model, and ensure sustainability. -
Embedded Ethics: How Complex Systems and Structures Guide Ethical Outcomes
This article introduces a new concept, embedded ethics, to explain the subtle impact that complex systems and structures have on ethical outcomes. We define embedded ethics as the entrenched complex of networked structural indicators that subtly and silently direct actions in the form of normalized industrial, organizational, and/or functional-role behavior. We then describe two examples-one from the legal systems (corporate governance) and one from business (shareholder value)-to demonstrate the usefulness of this concept in helping to identify opportunities to improve unethical outcomes in systems in which actors otherwise are understood as just doing their job. The concept of embedded ethics is especially critical in our too-big-to-fail corporate environment and Post-Internet Age of technological innovation. -
Fake News and the News Feed
Tessa Lyons was a rising star at Facebook. She had been the project manager in charge of news feed integrity for a little over a year, stationed at the front lines in the battle against misinformation and "fake news." However, in early 2019, she faced an ethical dilemma that could define her tenure at the company and perhaps her career: whether to ban Alex Jones and the content from his platform, Infowars, from the Facebook news feed. -
Lafarge, ISIS and the Syrian Civil War: Business in the Face of Terrorism
In 2007, global building products company Lafarge purchased a dilapidated factory in northern Syria and invested $680 million to build and operationalize a cement plant, thus establishing a Middle East presence. But Lafarge did not foresee the political instability caused by the escalation of the Syrian civil war between President Bashar al-Assad's military and Syrian rebel groups. Additionally, the terrorist group known as Islamic State in Iraq and Syria (ISIS) entered the region, utilizing brutal tactics such as capture, torture, and beheadings, to spread fear and gain territorial control. By 2012, Lafarge had a difficult decision to make: close the plant or keep it operational? Closing the plant would result in a lost investment and could put local Syrian workers and their families into dire financial situations. Conversely, keeping the plant operational could risk the safety of employees and raise critical questions about Lafarge's ethical responsibilities amid the crisis. -
How to Design an Ethical Organization
From Volkswagen's emissions fiasco to Wells Fargo's deceptive sales practices to Uber's privacy intrusions, corporate scandals are a recurring reality in global business. Compliance programs increasingly take a legalistic approach to ethics that focuses on individual accountability. Yet behavioral science suggests that people are ethically malleable, so creating an ethical culture means thinking about ethics not simply as a "belief" problem but also as a "design" problem. The authors suggest four ways to make being good as easy as possible: Connect ethical principles to strategies and policies, keep ethics top of mind, reward ethical behavior through a variety of incentives, and encourage ethical norms in day-to-day practices. -
Facebook: Fake News, Free Speech and an Internet Platform's Responsibility
This case describes the role of Facebook in society and its degree of responsibility to protect the privacy of user data and address the real-world impacts of misinformation and fake news across its site. Facebook's idealistic goal of giving people the power to build community and bring the world closer together has seemingly backfired as nefarious actors have exploited user data and the site's infrastructure to advance political and economic goals. Facebook's leadership has been slow to recognize and acknowledge the influence the site has had on world events, including the 2016 U.S. presidential election, and the Myanmar genocide against the Rohingya minority group. Facebook has also been slow to stem the spread of fake news, and addressing user data privacy is at odds with the company's reliance on targeted advertising as its primary source of revenue. This case offers students the opportunity to discuss the changing social and business environment in the era of the Internet, especially issues related to privacy and free speech. -
WeWork: Oil Money and the Challenge of Achieving Carbon Neutrality
WeWork, a successful company that provides shared workspaces, has grown rapidly since its founding in 2010 and was valued at $45 billion in 2018. WeWork was considered a progressive company with a strong focus on sustainability, evidenced by its public commitment to achieve carbon neutrality by 2023. As part of its rapid growth, WeWork received very large investments from SoftBank's Vision Fund. Much of the Vision Fund was funded by Saudi Arabia's Public Investment Fund, which obtained its wealth from the sale of Saudi oil. This case presents the idea that WeWork's values may be in direct conflict with the values and actions of Saudi Arabia, yet WeWork continued to receive considerable funding from the kingdom. The case raises the question about a corporation's role in society and whether it has any responsibility to ensure its investors' values align with its own.