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  • Chevron and Chad: A Pipeline Dream?

    Chevron Corporation invested in a Chadian-Cameroon oil pipeline consortium in the early 2000s. The project was extremely profitable through the decade, but it was subjected to claims of human rights violations that left a tarnish on Chevron's name. Chevron is considering divesting its stake in the pipeline as its strategy has shifted since initial investment and it isn't sure the future stability of the project. Students will gain an understanding of the role of human rights in a complex setting and will be able to articulate challenges of creating an industry within a developing country.
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  • Weighing the Evidence: One University Takes a Hard Look at Disordered Eating Among Athletes

    Colburn University is the largest private university in the fictitious state of Columbia and is often recognized by people from distant parts of the country for its award-winning Division I athletic teams. That's why when athletic director Harry Ritchie makes an offhanded comment about Colburn student-athletes with eating disorders, the press pounces. This incident coupled with a complaint from a parent draws the attention of Dean Francis Reilly, who finds himself needing to peel back some of the layers embedding college athletics on the issue of eating disorders among athletes. Throughout the narrative, different perspectives on sports and eating disorders are revealed from top-level administrators, like Dean Reilly, to the student-athletes themselves. As the story concludes, the conversation about eating disorders has begun, but questions still remain on how to make Colburn University a healthy environment for its student-athletes.
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  • Starbright Jewelers

    Roger Cosgrove had to make a decision on what to do with his employee, Jennifer Johnson, whom he learned had allegedly stolen $120,000 from his former business associate, Michael Libretti. He was conflicted by the ethical dilemmas this issue raised. In April 2011, Cosgrove had a chance meeting with Libretti at Libretti's place of business, Starbright Jewelers. Cosgrove and Libretti once operated Starbright in a joint operation but, because of changing economic conditions, dissolved their joint operation amicably in 2008. Johnson, who had worked for both men at Starbright, elected, at Cosgrove's request, to follow him to his new business venture, Silver Shine. She continued to work part time on Saturdays for Libretti at Starbright, to supplement her income. Cosgrove and Libretti had remained friends, and occasionally met to catch up on news. It was at one of these get-togethers that Cosgrove heard from Libretti the accusation of theft. Johnson had left her part-time job at Starbright in 2010 on her own accord. When Libretti subsequently hired a replacement for Johnson, he discovered through the replacement's efforts that Johnson stole about $120,000 from him from 2004 through 2010. After Libretti shared with Cosgrove this story, he asked Cosgrove what he, Cosgrove, was going to do, in Libretti's words, "with the thief who is working for you now." Cosgrove had to balance the competing needs of the many persons who had an interest in his decision. He wanted to protect his business, his reputation, and his customers from exposure to a potential thief. He wanted to protect his family's well-being and also to be supportive to his business associate, Libretti. Even so, he felt that taking action on Johnson was assuming she was guilty already, without benefit of any investigation. He sought advice from several sources, and was frustrated that there was no clear direction to follow.
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  • Al-Shabaab, Gatekeepers, and the Ethics of Humanitarian Aid

    Following decades of civil strife among warring clans, and exacerbated by the worst drought in decades (2010-2012), millions of starving dislocated Somalis resided in crowded camps throughout the country. Humanitarian aid organizations made good-faith efforts to distribute food and medical treatment and supplies to those who suffered most. Almost always, however, these nongovernmental organizations (NGOs) were thwarted by so-called gatekeepers, who, backed by military force, required that all aid be delivered first to themselves and only thereafter to the intended recipients, under conditions the gatekeeper set. This case summarizes the tactics used by the gatekeepers of Al-Shabaab (a cell of the radical Islamic group Al-Qaeda) in Somalia and the corresponding risks that the United Nations and NGOs had to confront.
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  • Somalia's Volatile Politics and the Ethics of Engagement

    The case expands its companion case, "Al-Shabaab, Gatekeepers, and the Ethics of Humanitarian Aid" (ETH-1), from the level of individual-within-organization to the level of organization-within-political system. The dire need for humanitarian assistance to Somalia's hundreds of thousands of internally displaced persons (IDPs) was confounded by the presence of a government that seemed hopelessly weak. Weak governmental institutions created a power vacuum largely filled by Al-Shabaab, a jihadist group with geo-political and religious ambitions. The conditions insisted on by Al-Shabaab gatekeepers and their senior leaders (shura) resulted in the eviction of several NGOs from Somalia. Their reluctant exit left many other humanitarian aid organizations to contemplate whether "negotiating with terrorists" was worth it when such negotiations perpetuated the system of corruption, oppression, and physical danger.
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  • Ethics in Commerce

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. Chapter 1, Ethics in Commerce, provides historical and philosophical context for the overall discussion of ethical management and the author's focus on ethical conduct for companies doing business globally. He defines social responsibility as the broader concept of caring about others versus ethics, which provide more specific and practical guidance. He considers different perspectives on ethics in globalization, from those who believe a company should engage in ethical outreach as they enter new countries to those who believe a company should accept the environment in new countries. He also outlines the factors that he believes have brought ethics to the forefront of management discussions, including an overview of how an ethical or unethical public perception can impact a business.
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  • Ethics and the Strategic Determination

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. Chapter 2, Ethics and the Strategic Determination, the author begins with an overview of global business and the factors that influence a company's decision to operate in another country. He recommends that a company include ethics as part of corporate strategy and applies ethical components to SWOT analysis and Porter's 5 Forces using companies such as Nike and ExxonMobil to illustrate. He explores how the human rights environment in country impacts a global business, with an analysis of the Alien Tort Claims Act and comments on handling human rights violations. He examines other challenges to ethical conduct including foreign national labor practices, the impact of non-government organizations (NGOs), media attention, public perception and pressure for transparency. He also reviews the U.S. Sarbanes-Oxley Act which drew public attention to unethical practices and how ethics can impact corporate branding.
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  • Ethical Value Development

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. In Chapter 3, Ethical Value Development, the author examines how ethics develop and introduces the concept of a global ethical conduct code. He posits that public awareness of recent human rights violations has increased pressure on global firms to be proactive in defining and implementing a code of ethics. He considers the role of companies as social institutions with analysis of Milton Friedman's economic theory of being profitable while conforming to the basic rules of society. He looks at corporate reputations and how unethical practices can have negative impact on finances and long-term success. He contrasts social responsibility and ethics, and shares perspectives from different countries. He also explores the realm of public perception and if people are already biased against corporations, which the author interprets as a need for a proactive approach to ethics. He also considers how global businesses influence local labor relations.
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  • Ethics Unabridged

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. In Chapter 4, Ethics Unabridged (68 pages), the author examines how the role of ethics in management decisions has taken on greater importance. He explains how ethics have become a critical factor for success. He describes how history, public demand for transparency, and the constant media access due to the Internet, have shaped the current business landscape in terms of the need for ethical standards. He reviews two approaches to corporate social responsibility, institutional and profit maximization, and provides both historic and contemporary examples. He also explores the more recent developments in responsible leadership. The chapter ends with a review of the Principles for Responsible Management Education developed by the Globally Responsible Leadership Initiative.
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  • Time for a Change?

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. Chapter 5, Time for a Change? (45 pages) presents the author's theory that every multinational business should develop a global code of conduct. He offers three evaluation methods for transnational companies in determining the kind of ethical strategy needed. He reviews several resources, including the UN Universal Declaration of Human Rights and the Global Sullivan Principles, and outlines several ethical philosophies that influence personal ethics. He also considers how different mindsets influence global strategy application and presents a matrix of ethical directions according to cultural relativism and ethical imperialism. He concludes with a recommendation of 4 elements that constitute an appropriate ethical approach.
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  • A Universal Code Template

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. Chapter 6, A Universal Code Template (46 pages), starts with an analysis of the Herzberg theory of work motivation and Maslow's hierarchy of needs as they relate to the motivation behind ethical strategy. The author explores the concept of "connected capitalism" through Coca-Cola's development of a corporate moral compass. He offers practical guidelines for constructing a code of conduct, using the Vitruvian Man model as an example of balancing integrates absolutes and relatives. He also explains the importance of verification and monitoring, with recommendations for organizational structure and implications for managers. He considers the ultimate cost-benefit of ethical practices and provides an in-depth analysis of the codes of conduct for Nike Inc. and Gap Inc. as best practice. He ends with a look at historic examples of ethical conduct.
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  • Global Ethical Strategies and Conclusions

    A Strategic and Tactical Approach to Global Business Ethics, Second Edition, is a seven-chapter book published by Business Expert Press in 2015 and written by Lawrence A. Beer, professor emeritus at the W. P. Carey School of Business at Arizona State University. The second edition expands the discussion of integrating ethics into the planning, administration, and operations of a multi-national business. The author provides an in-depth examination of the issues around the importance of ethical strategy and offers practical guidance on how a company should establish a code of conduct. He includes numerous real-world examples as well as both literary and philosophical references. He ends each chapter with reflections for managers that build upon the concepts presented in the chapter and offer topics for further discussion. In Chapter 7, Global Ethical Strategies and Conclusions (19 pages), the author recommends that a global business determine its strategic position: neutrality, deflection, or proactive change. He offers practical tools to guide ethical decision-making, including a list of questions to identify "deal-breakers," a model to evaluate entry into a potential country, and a process to evaluate potential foreign partners. He further recommends a global ethical-positioning scale in advance of facing an ethical violation. He provides the 4W approach as a series of questions to help a company handle an infraction in the absence of a prior plan. He concludes by revisiting the importance of having an ethical strategy to guide global business.
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  • Responsibilities to Employees

    The note provides a framework to conceptualize managers' responsibilities to employees in relation to economic, legal and ethical considerations. The note frames the central ethical challenge for managers as exercising power in a fair manner. The fair exercise of power involves three components: respect for legitimate expectations, procedural fairness, and distributional fairness.
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  • Through the Eyes of a Whistle-Blower: How Sherry Hunt Spoke Up About Citibank's Mortgage Fraud

    In 2011, Sherry Hunt was a vice president and chief underwriter at CitiMortgage headquarters in the United States. For years she had been witnessing fraud, as the company bought billions of dollars in mortgage loans from external lenders that did not meet Citi credit policy and sold them to government-sponsored enterprises (GSEs). This resulted in Citi selling to GSEs such as Fannie Mae and Freddie Mac pools of loans that were considerably defective and thus likely to default. Citi had also approved hundreds of millions of dollars' worth of defective mortgage files for U.S. Federal Housing Administration insurance. After reporting the mortgage defects in regular reports, notifying and working closely with her direct supervisor (who was subsequently asked to leave Citi after alerting the chairman of the board to these issues) to stop the purchase of defective loans, leaving anonymous tips on the FBI's and the Department of Housing and Urban Development's websites, and receiving threats from two of her superiors who demanded that she change the results of her quality control unit's reports, the shy and conflict-avoidant Hunt had to decide who she should tell about the fraud, and how. The case gives students the opportunity to recommend how Hunt should proceed based on their analysis of the stakeholders involved. To aid instructors, the case includes Kellogg-produced videos of Hunt-the only on-camera interviews she has ever given-explaining what happened after she reported the fraud to Citi HR and, later, the U.S. Department of Justice. Within the case, students are also briefly exposed to legislation and bodies pertinent to whistle-blowing in the United States, including the Dodd-Frank Act, the Sarbanes-Oxley Act, and the SEC Office of the Whistleblower.
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  • The National Football League and Brain Injuries

    The National Football League (NFL) was both the most popular spectator sport in the U.S. and a major economic entity, taking in roughly $10 billion a year in revenue. However through the early twenty-first century, an increased understanding of the long-term effects of head injuries on NFL players indicated a serious threat to the long-term viability of the game. Particularly concerning was the indication that some deceased professional football players had developed chronic traumatic encephalopathy (CTE)-a neurodegenerative disease which had a strong influence on a person's mental and physical health-most likely as a result of repetitive hits sustained during their football careers and which may have contributed to their deaths. Over 4,000 retired players had jointly sued the NFL over the head injuries they had sustained during their time in the NFL and the resulting health problems they attributed to these injuries. In part, the lawsuit alleged that the NFL had not been forthcoming with players about the health risks of head injuries. The two sides had reached a tentative $765 million settlement in 2013, the bulk of which would go to compensating retired players suffering from such diseases as Alzheimer's or dementia. While this settlement compensated retired players, it was not applicable to current or future players. Could the NFL preserve the sport by making it safer through new rules or equipment changes, or was football an inherently physical game that no amount of new rules or equipment could make completely safe? Were current and future players, now knowing full well the potential long-term health implications of football, tacitly accepting the risks involved? As a team owner, is now the time to sell while franchise value and fan support are at their peaks, or will the business of the NFL be viable for years to come?
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  • Honeywell and the Great Recession (A)

    CEO Dave Cote spent six years turning around an ailing Honeywell and in 2008 Cote and his team face a new challenge: how to respond to the Great Recession. Cote does not want to give up the gains he made in transforming and unifying Honeywell. With a fall-off in demand, Cote and the team must decide how to enact spending cuts in all parts of the business. They face choices in whether to employ layoffs or furloughs (unpaid leaves) for any needed workforce reductions, and whether to enact hiring freezes and other cost-saving changes to employee and executive compensation programs and benefits. Each of these choices is hard, and together they may derail the company's momentum if not handled carefully.
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  • Honeywell and the Great Recession: The Economic Recovery (B)

    Five years after the Great Recession, Honeywell's CEO Dave Cote and his executive team reflect on the choices they made to manage costs and earnings forecasts during that uncertain time. They discuss which cost cutting measures they decided to take and their personal decisions of whether or not to accept bonuses in 2009. Cote also discusses the challenges Honeywell faced implementing unpaid work leaves (furloughs) in different parts of the world and how he believes the choices they made during the recession positioned Honeywell to respond to the economic recovery.
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  • 'The Nut Behind the Wheel' to 'Moral Machines:' A Brief History of Auto Safety

    Driverless cars - once the stuff of science fiction - are fast becoming reality. Indeed, some automotive companies have said they expect to sell autonomous vehicles to the public by 2020. The advent of such self-driving vehicles raises numerous ethical and legal questions that will need to be addressed before such cars can hit the road in significant numbers. This case traces the history and evolution of auto safety in the United States, beginning with the very first automotive-related fatality on September 13, 1899 and ending with a coming era in which, some predict, humans will be banned from driving their own vehicles and machines will be obliged to have ethical systems.
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  • Solving the Problems of New Product Forecasting

    An important consideration in solving the problems of new product forecasting entails distinguishing new product forecasting from the process of forecasting existing products. Particular differences between the two can be identified across the dimensions of data, analytics, forecast, plan, and measurement. For example, new product forecasting features little to no data with which to begin the process, whereas data are available and accessible in forecasting existing products. The minimal data situation requires a qualitative approach that lays out assumptions to provide transparency; in contrast, quantitative techniques are predominantly used when forecasting existing products. Different assumptions help construct a range of new product forecast outcomes on which company contingencies can be planned versus a singular point forecast for an existing product. And the measure of forecast accuracy, which is a common metric in forecasting existing products, must give way to meaningfulness so that the new product forecast is actionable. Recognizing new product forecasting as a cross-functional, company-wide process helps resolve the problems of new product forecasting. While incapable of remedying all problems, a properly understood and organized new product forecasting effort can help the company better prepare, execute, and support a new product launch, affording a greater propensity to achieve new product success.
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  • The Palm Oil Dilemma

    This case explores the events leading to the creating of a multi-stakeholder platform, the Roundtable on Sustainable Palm Oil (RSPO). The promotion of palm oil as an alternative to fossil fuels has increased demand, hence the "palm oil dilemma": to produce oil more sustainably or save the forests? The ability to respond to NGOs and the additional cost of certified palm oil are some of the future challenges facing the RSPO.
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