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Even as companies increasingly embrace corporate social responsibility, it remains controversial in terms of the bottom line. New research reveals an unexplored benefit: CSR activities can make a company more innovative and lead them to launch more new products.

This case tells the story of Bank of America, a single cog in the financial machine that survived a major crisis in 2008, though its repercussions continue to be felt in the industry and in the global economy more generally. The mechanics of the financial crisis are examined as well as the part played by Bank of America and Merrill Lynch. While seemingly better positioned than its competitors and able to acquire Merrill Lynch, Bank of America leaders engaged in a number of questionable practices that brought it under ethical and then legal scrutiny.

How should a chief financial officer respond when he uncovers a serious accounting fraud? Richard Okumoto, the newly-appointed CFO of Electro Scientific Industries, Inc., learned that around midnight several months earlier, a group of managers, led by a man who later became CEO, had reversed an accrued liability associated with the anticipated cost of employee retirement benefits. This "midnight journal entry" had allowed the company to report a gain, rather than a loss, for the quarter. Okumoto believed that the reversal was improper and the company's earnings should be restated. When he approached the CEO, the general counsel, and the audit committee with his concerns, however, he was told to "just get past it." Okumoto had to decide how best to act on his conviction that the company had committed an unethical and illegal act, while minimizing the risk to himself and his future career prospects.

Describes the basic elements of a typical corporate compliance or ethics program, focusing on the components of an "effective" program set forth in the U.S. Organizational Sentencing Guidelines as revised in 2010. Outlines key issues in program design and implementation and provides an overview of relevant research.

It supplements case UV5191 and UV5193

After two hours of further intense, heated debate, Belton's COO has acquiesced and agreed with the manager of a large management consulting firm on every major point. But the senior partner on the assessment, as well as the consultant's mentor, considers the results disastrous. "Our job is not to be right, our job is to help," he says.

Spreadsheet Supplements case UV5194

In January 2009, Mark Pincus, founder and CEO of the immensely popular and successful Zynga Game Network met with his sister Laura Hartman, DePaul University business ethics professor, to discuss building a new brand of corporate social strategy. Pincus wanted to find a way that Zynga could have a greater social impact on the world. He and Hartman talked about creating a new social strategy that would naturally flow out of Zynga's success in developing highly profitable interactive social games. The two of them wondered whether it was possible for one company to develop a strategy that would both be profitable and engender social change.

The B case of this three-case series outlines how Mark Pincus, with help from his sister Laura Hartman, began to implement his new brand of social strategy. Initial steps included two partnerships: (1) Zynga's YoVille and the San Francisco SPCA; and (2) Mafia Wars and the Huntington's Disease Society of America. A new program within Zynga was created: Zynga.org, which would focus on global problems and ways to address them. Its first project, in partnership with Zynga's wildly popular FarmVille, was a strategy in which users could purchase "Sweet Seeds for Haiti." Through FarmVille, Zynga would contribute 50% of all proceeds from the sale of these seeds to two Haiti-based causes: Fonkoze and FATEM (a microfinance initiative and an educational and school-meals program, respectively). In 2010, Zynga.org continued to evolve, with periodic bumps along the way when Zynga encountered bad press and unfavorable attention.

Following the May 2010 Sweet Seeds campaign, Zynga announced that it would expand its FATEM partnership to build a school for children in Haiti who had been affected by the devastating earthquake in January of that year. In one week, more than 45,000 FarmVille users raised $110,000 through the purchase of virtual social goods. Sweet Seeds would be the first of several campaigns Zynga launched to raise funds for the school. In the meantime, Zynga.org's management had to establish concrete measures for the various projects' success, including efficient implementation, self-sustainability, and replication. Maintaining a strong feedback loop so that those who contributed to these campaigns could see the results was important. Despite competition, Zynga remained, in 2010, a wildly successful company and its dot-org arm helped Mark Pincus and Laura Hartman realize the new type of social strategy they had discussed over the years.

John Hume, a veteran game farmer and founder of the Mauricedale Game Ranch in South Africa, was deeply troubled by the record upsurge in black rhino poaching incidents and black-market horn thefts in 2010 and 2011. While the endangered black rhino represented only one segment of Mauricedale's hunting and farming businesses in 2011, the animal's survival was an important component of the ranch's and industry's growth potential in the future. As both a businessman and a rhino advocate, John Hume was contemplating an innovative idea that might help stop the decline of the black rhino: the creation of a market for legalized black rhino hunting. As he pondered the possibilities and alternatives to determine what his next move should be, Hume had several questions on his mind: Was the legalization of the international sale and trade of rhino horns a viable solution? Was it Hume's responsibility to save the black rhino, and was the animal a good investment?

Xerox Production Manager Jim Deese has to address the concerns of an employee who is uncomfortable with the company's "vision quests," or creative and spiritual retreats. Starting in the early 1990s, Xerox began conducting these vision quests as a means of invigorating production and innovation at the company, which had struggled over the years with product development and increasing competition. Xerox has worked hard to better its product, increase workforce communication, and enable employees to develop spiritually and embrace a higher vision, both work-related and personally. Some studies have shown that incorporating some element of spirituality helps to generate a happier and more creative workplace. Nonetheless, the employee, a professed atheist, is uncomfortable with the vision quests and the company's other mildly spiritual practices, and Deese must decide how to respond.

The management of Telescope, a wildly popular online search engine, must deal with an impending crisis: a security breach in which information from thousands of users has been compromised. Technically-thanks to its carefully worded "terms of use"-the company is not financially liable for any ensuing damage. But Telescope prides itself on its commitment to acting responsibly. Its motto is "We Do Only Good," and the company has published a set of philosophies, including "Focus on the customer and harmony follows" and "Make money, not mischief." Telescope is well-respected in the Internet world for its non-corporate appearance and non-greedy attitude. Its IPO, almost 10 years ago, had been met with enthusiasm and the company had stellar revenues. The big question for CEO and Co-Founder Spencer Milo is, "How do the ideals and passion with which he had started Telescope come into play now?" He has to reconcile what the company stands for and how his organization can square its sense of purpose and faith with the actions that might be necessary to keep Telescope a thriving business.

The manager of a large meatpacking factory has agreed to the request of his 100-plus Muslim workers who have asked to take breaks at sunset to properly observe the Muslim holy month of Ramadan. Although such an exception is an irregularity, the manager believes it is an appropriate response to the religious needs of such a large percentage of his employee base. But the requested breaks-at very precise times-have begun to interfere with the overall operation of the plant, resulting in a loss of productivity. Other employees have become irritated, believing they are carrying the burden of the break times and resenting what they see as preferential treatment. Because of the productivity issues, the other employees' complaints, and concerns about the credibility of his management, the manager considers reneging on his agreement with the Muslim workers.

James Bowman, a founding partner of a private equity fund manager based in New York City, has traveled to China to meet with a China Power Investment Corporation manager in the hope of cultivating a business relationship. But Bowman is flabbergasted when the manager, in what is supposed to be an introductory conversation, asks that Bowman deposit $800,000 into a Chinese banking account. The money, the manager assures Bowman, will be returned to him within 30 minutes. This request, Bowman understands, is about the principles of Confucianism, which many in China incorporate into their work and home lives. These principles involve building close, trusting relationships in business. Bowman realizes that he is being tested, and he is uncertain how to respond.

These 14 vignettes have been developed to facilitate a discussion on the place of spirituality or religion in the workplace. Developed primarily from public sources, but

Ken Grossman walked into Bill Bales' office hoping to find an answer. Grossman, the owner of Sierra Nevada Brewing Company was considering the new reality that he was facing, and he brought the dilemma to Bales, his CFO. Grossman had made a commitment to environmental sustainability, the overriding cultural norm of his organization. Initially, the decision to install the five-phase solar array was made expecting California to provide tax incentives that would save the company a substantial amount of money on the installation. Grossman had received word that the company had run up against the "cap" for the State of California, which meant that they would no longer receive any subsidies for green power installments. With one phase of the installation yet to go, the question of possibly putting the money elsewhere kept nagging at Ken. Previous incentives meant the return on their environmental investments had always been fairly rapid, which enabled the company to continue aggressively pursuing their dedication to preserving the natural environment. Now, however, what to do? Finishing the solar array would be costly. Time to payback more than doubled from seven years to fifteen without the incentives from California State. As it stood, the brewery was light years ahead of industry standards and had completed the installation of the majority of the array.

The focus of this case is a series of ethical dilemmas faced by three undergraduate students, in their pursuit of solutions to perceived mismanagement, financial misdeeds, and possible fraud by their university's administrators. After Calvin Collins, Kent Russell, and Daniel Morris (who became known as the Tech-3) accidentally found confidential university payroll records discarded in a non-secure area, they took the records and their concerns to several administrators. Because they were rebuffed by university officials, the students "went public" to the news media and on to the state capitol. After their public cry for the resignation of the university president, the three students were put on probation and two of the three were arrested on criminal charges. University administrators attempted to break up the solidarity of the three students. After several months of "fighting the good fight," several enticements were offered to Collins by a university trustee. Collins must decide whether to accept the enticements and persuade his friends they should give up their fight to improve conditions at the university. If they continue to demand change, they would be going against extremely challenging obstacles. The administration make it impossible for them to complete their degrees. Continuing their battle will involve much personal sacrifice. Was it time for the students to give up? Had they already gone too far?

More and more firms are engaging in greenwashing, misleading consumers about their environmental performance or the environmental benefits of a product or service. The skyrocketing incidence of greenwashing can have profound negative effects on consumer and investor confidence in green products. Mitigating greenwashing is particularly challenging in a context of limited and uncertain regulation. This article examines the external (both institutional and market), organizational, and individual drivers of greenwashing and offers recommendations for managers, policy makers, and NGOs to decrease its prevalence.