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This case deals with the problems facing MMC in three of its key business areas, which surfaced in quick succession in 2003 and 2004. Its focus is primarily on the reputation risks facing the firm, and how shareholder value can be destroyed when such risks materialize. In two of the three cases, the market capitalization losses dwarf the accounting losses attribuable to fines, penalties, restitution, restructuring, etc., associated with the events.

Codes of conduct have long been a feature of corporate life. Today, they are arguably a legal necessity--at least for public companies with a presence in the United States. But the issue goes beyond U.S. legal and regulatory requirements. Sparked by corruption and excess of various types, dozens of industry, government, investor, and multisector groups worldwide have proposed codes and guidelines to govern corporate behavior. These initiatives reflect an increasingly global debate on the nature of corporate legitimacy. Given the legal, organizational, reputational, and strategic considerations, few companies will want to be without a code. But what should it say? Apart from a handful of essentials spelled out in Sarbanes-Oxley regulations and NYSE rules, authoritative guidance is sorely lacking. In search of some reference points for managers, the authors undertook a systematic analysis of a select group of codes. In this article, they present their findings in the form of a "codex," a reference source on code content. The Global Business Standards Codex contains a set of overarching principles as well as a set of conduct standards for putting those principles into practice. This codex is meant to be used as a benchmark by those wishing to create their own world-class code. The provisions of the codex must be customized to a company's specific business and situation; individual companies' codes will include their own distinctive elements as well. What the codex provides is a starting point grounded in ethical fundamentals and aligned with an emerging global consensus on basic standards of corporate behavior.

The head of clinical trials at Solnyx Pharmaceuticals had just been handed the results of a phase II trial of Atoxeril, a hypertension drug. Her task was to interpret these data in preparation for a meeting with her institutional review board and representatives of the Food and Drug Administration. This case introduces a number of concepts related to the analysis of clinical trials including dealing with missing data, ANOVA, regression and sample size calculations. Students will evaluate the design of the phase II clinical trial and interpret the trial results; they will also evaluate the implications of the angioedema incidence and how it might affect the design of a phase III trial.

Provides a brief overview of the employment-at-will doctrine, an important concept unique to the U.S. legal system and business landscape. Briefly surveys the history and development of this doctrine and certain limitations and exceptions to it, as well as some of the distinguishing features of the employment termination process in the United States relative to other countries.

Discusses several of the most important prohibitions on deception found in U.S. law, starting with the basic elements of liability for fraud and moving to important antifraud provisions in federal statutes, restrictions on "misrepresentation" in consumer and contract law, deceptive nondisclosure, and forms of sales "puffery" that are not legally actionable.

Provides a brief overview of the concept of bribery and the principal rationales prompting restrictions on such conduct. Also, reviews some of the most important U.S. and international laws prohibiting various forms of bribery.

Designed to test understanding of basic theories of insider trading under U.S. law. Presents six scenarios based on actual situations in which insider trading was alleged to have violated U.S. law, as well as a seventh scenario that took place in Italy, permitting comparison of U.S. and European approaches to insider trading regulation.

When the World Bank signed an agreement with the government of Peru in December, 1997 to provide a $22.5 million loan to help reform the country's antiquated and corrupt judicial system, the Bank knew it faced risks. Peru's President Alberto Fujimori was under fire and observers considered it possible that, rather than exhibiting real commitment to reform, the government may have been seeking the loan chiefly to lend a veneer of legitimacy to measures that in reality reduced judicial independence and concentrated more power in the executive. On balance, however, Bank officials who had to make the decision on whether to proceed with the agreement believed it offered a rare opportunity to address a variety of longstanding ills-including limited access to the justice system, a crumbling infrastructure, and inadequate training of judges and prosecutors. But just three months after the agreement had been signed, Peru's Congress-dominated by members loyal to the President-passed a measure which led Bank officials to question the good faith of the government. The new law limited the powers of one of the pillars of the loan agreement-the National Council of Magistrates, an independent entity mandated to , ratify and remove judges and prosecutors. The Council's members resigned en masse and, in response, the Bank postponed the effective date of the judicial reform loan by six months-halting any disbursement of funds. But in the days following the announcement, Peru's government put increasing pressure on the Bank to change its mind-and finally summoned the Bank's country director for Peru to a personal meeting with President Fujimori. The country director would have to decide whether to stick with the loan postponement-and, more broadly, take stock of what was really going on in Peru. Would the loan help a government sincerely embarked on reform? Or might it simply abet a government bent on subverting the judiciary to further its own political goals? HKS Case Number 1779.0

When the World Bank signed an agreement with the government of Peru in December, 1997 to provide a $22.5 million loan to help reform the country's antiquated and corrupt judicial system, the Bank knew it faced risks. Peru's President Alberto Fujimori was under fire and observers considered it possible that, rather than exhibiting real commitment to reform, the government may have been seeking the loan chiefly to lend a veneer of legitimacy to measures that in reality reduced judicial independence and concentrated more power in the executive. On balance, however, Bank officials who had to make the decision on whether to proceed with the agreement believed it offered a rare opportunity to address a variety of longstanding ills-including limited access to the justice system, a crumbling infrastructure, and inadequate training of judges and prosecutors. But just three months after the agreement had been signed, Peru's Congress-dominated by members loyal to the President-passed a measure which led Bank officials to question the good faith of the government. The new law limited the powers of one of the pillars of the loan agreement-the National Council of Magistrates, an independent entity mandated to , ratify and remove judges and prosecutors. The Council's members resigned en masse and, in response, the Bank postponed the effective date of the judicial reform loan by six months-halting any disbursement of funds. But in the days following the announcement, Peru's government put increasing pressure on the Bank to change its mind-and finally summoned the Bank's country director for Peru to a personal meeting with President Fujimori. The country director would have to decide whether to stick with the loan postponement-and, more broadly, take stock of what was really going on in Peru. Would the loan help a government sincerely embarked on reform? Or might it simply abet a government bent on subverting the judiciary to further its own political goals? HKS Case Number 1779.0

Explores Martha Stewart's December 2001 sale of ImClone Systems common stock, the ensuing federal investigations into possible insider trading, and Stewart's criminal prosecution and sentencing. Discusses the impact of publicity on Stewart's company, Martha Stewart Living Omnimedia, and on her personal image, and raises issues of prosecutorial discretion. Challenges students to consider the validity of the insider trading charge against Stewart as well as the securities fraud charge included in the indictment, the appropriate sentence, and whether federal authorities unfairly singled out Stewart for investigation.

Supplements the (A) case.

Supplements the (A) case.

Answers some of the most common questions managers ask about potential corporate and individual liability for corporate misconduct under U.S. law. Describes a few general principles of liability that managers should be aware of. A rewritten version of an earlier note.

The case narrates the first year of the Moving the World Program, a public-private CSR-driven partnership between TPG and the UN World Food Program. It describes the five joint initiatives, where the organizations would merger their experience and capabilities in the pursuit of enhanced performance in humanitarian operations worldwide.

The case narrates the internal processes of choosing and implementing a corporate social responsibility (CSR) initiative. It illustrates the process of choosing a cause, selecting partners, creating a working plan, and finally getting the company's executive board's commitment.

For a century, Tata Steel has provided a level of compassion that is unmatched in its sector or its country. But the onslaught of global competition and, crucially, global capital markets have sparked serious debate on the role, level and the sustainability of social spending at Tata Steel. In particular, a new emphasis on EVA risks upsetting the century-old commitment to CSR.

When a career public employee in a research division of the US Forest Service gets a call from a lobbyist for a coalition of environmental advocacy groups, he finds himself confronting an opportunity of which he's not sure it's right to avail himself. The lobbyist-well-versed in the specific research being undertaken by the department in which "Sammy Sockeye" works, and well aware of budget cuts affecting the quality and scope of such work-offers to "help." Her coalition would, if he agrees, exert public pressure in order to force the soon-to-be-announced federal budget to include an increase in the budget of Sammy's department. The fact that Sammy himself believes very much that the public would be better served by such a budget increase complicates the already difficult question.

This case present the dilemma of an employee who, having been terminated in a manner he deems is unfair, has to decide whether to cash or return a $2,500 check wrongfully sent him by his former employer.

Although not set in a business environment, this case illustrates a common dilemma existing in almost any setting: Do you uphold an institution's honor code, although it means implicating a friend and comrade of wrongdoing?

The case lays out the controversies surrounding the human genome project. The ability to generate any individual's genetic profile raises important legal, social, and ethical questions. How should these issues be addressed and how can the rights of the individual be protected? This case can be used to portray problems in the biotechnology industry, confidentiality in the health care industry, as well as the progress of technology and the ability of the present legal and medical system to deal with it.