University of Pittsburgh, Summer 1999
Philosophy 1380: Business Ethics
C.L. G13—Mondays, 6 p.m. to 8:55 p.m.
Ben Eggleston—egglestn@pitt.edu
Business Ethics
I. Description
What are the ethical responsibilities of businesses? Should a business just look out for its “bottom line,” or should it look out for its employees, customers, community, and environment, too? When a business such as Nike operates in a third-world country, is it morally obligated to pay wages that would be considered fair in America, or is Nike doing enough if it abides by local laws and regulations? And how can the ethical point of view shed light on a disaster such as the Challenger explosion, which was apparently caused more by the corporate culture of NASA than by any individual’s negligence? These are the kinds of questions we will be considering in this course, by reading not only introductory discussions of various issues in business ethics but also studies—some of them first-hand—of particular cases. Evaluation will be based on a mix of writing assignments, tests, presentations, attendance, and participation in discussions.
II. Aims
This course’s aims include
· familiarizing you with the important ethical issues that arise in business (such as consumer protection, drug testing, and discrimination, and others)
· introducing you to theoretical concepts (such as the free-rider problem, utilitarianism, and Kantianism) that will help you to think about these issues more abstractly and systematically
· developing your ability to discuss these issues extemporaneously
· developing your ability to explain a position in this field in an oral presentation
· developing your ability to formulate and defend, in a paper of some length, a cogent and considered position in this field
III. Books
The required reading is contained in the following book:
· Tom L. Beauchamp and Norman E. Bowie (eds.), Ethical Theory and Business, fifth edition (Upper Saddle River, N.J.: Prentice-Hall, 1997)
—ISBN: 0-13-398520-2
—$50 new, $37.50 used
IV. Requirements
Your grade will be based on the following:
· five short (i.e., 1–2 pages each) reaction papers (5 percent each)
· one term paper of 6–8 pages (25 percent)
· attendance and participation (15 percent)
· one in-class presentation (15 percent)
· the final exam (20 percent)
These requirements may change, as may other plans described in this syllabus. Revisions will be announced in class and will be posted on the “Announcements” page on the class Web site (whose address is given in the last section of this syllabus).
V. Schedule
Following is a list of topics and associated reading assignments, each of which must be done before it’s discussed in class. (Note: ETB refers to Ethical Theory and Business, mentioned above.)
Week Assignment
1 Introduction,
discussion of in-class readings
2 Protecting consumers and investors
Consumer
protection
·
ETB, pp.
250–254 (Henningsen v. Bloomfield Motors,
Inc. and Chrysler Corporation)
·
ETB, pp.
191–195 (editors’ introduction)
·
ETB, pp.
201–209 (Manuel G. Velasquez, “The Ethics of Consumer Production”)
·
ETB, pp.
210–215 (George G. Brenkert, “Strict Products Liability and Compensatory
Justice”)
Investor
protection
·
ETB, pp.
262–263 (“Case 2: Do Apple Computer Shareholders Need Protection?”)
·
ETB, pp. 263–264
(“Case 3: Virazole and Investor Risk”)
·
ETB, pp.
195–197 (editors’ introduction)
·
ETB, pp.
236–243 (Robert E. Frederick and W. Michael Hoffman, “The Individual Investor
in Securities Markets: An Ethical Analysis”)
3 Social
responsibilities of business, part 1: the received view
—reaction paper no. 1 due
·
movie: Wall Street (shown in class)
·
ETB, pp.
50–53 (editors’ introduction)
·
ETB, pp.
56–61 (Milton Friedman, “The Social Responsibility of Business Is to Increase
its Profits”)
4 Social responsibilities of business,
part 2: reactions to the received view
·
ETB, pp.
53–54 (editors’ introduction)
·
ETB, pp.
66–76 (R. Edward Freeman, “A Stakeholder Theory of the Modern Corporation”)
·
ETB, pp.
54–56 (editors’ introduction)
·
ETB, pp.
85–96 (John R. Boatright, “Fiduciary Duties and the Shareholder-Management
Relation: Or, What’s So Special About Shareholders?”)
5 Regulating
business, part 1: theoretical issues
—reaction paper no. 2 due
·
ETB, pp.
187–188 (“Case 1: The Advertising Code Case”)
·
ETB, pp. 188–189
(“Case 2: Beech-Nut Corporation”)
·
ETB, pp.
117–123 (editors’ introduction)
·
ETB, pp.
124–126 (Kenneth J. Arrow, “Business Codes and Economic Efficiency”)
·
ETB, pp.
126–135 (Ian Maitland, “The Limits of Business Self-Regulation”)
6 Regulating
business, part 2: important cases
·
ETB, pp.
136–143 (Richard T. DeGeorge, “Ethical Responsibilities of Engineers in Large
Organizations: The Pinto Case”)
·
ETB, pp.
143–157 (Russell P. Boisjoly, Ellen Foster Curtis, and Eugene Mellican, “Roger
Boisjoly and the Challenger Disaster:
The Ethical Dimensions”)
7 Fundamentals
of ethical theory
·
ETB, pp. 1–42
(editors’ introduction)
8 Theories
of justice
·
ETB, pp.
654–655 (“Case 1: Baseball Economics”)
·
ETB, pp.
655–656 (“Case 2: Selling Cyclamates Abroad”)
·
ETB, pp. 656–657
(“Case 3: Cocaine at the Fortune-500 Level”)
·
ETB, pp.
658–659 (“Case 4: Covering the Costs of Health Care”)
·
ETB, pp.
609–613 (editors’ introduction)
·
ETB, pp.
617–625 (John Rawls, “An Egalitarian Theory of Justice”)
·
ETB, pp.
625–629 (Robert Nozick, “An Entitlement Theory”)
·
ETB, pp.
629–635 (Peter Singer, “Rich and Poor”)
9 Employers and employees, part 1:
testing and whistleblowing
—reaction paper no. 3 due
Privacy
and drug/dishonesty testing
·
ETB, pp.
358–359 (“Case 2: Catching a Thief by Honesty Exams”)
·
ETB, pp.
268–272 (editors’ introduction)
·
ETB, pp.
292–309 (Mark A. Rothstein, “Drug Testing in the Workplace: The Challenge to
Employment Relations and Employment Law”)
·
ETB, pp.
309–320 (Joseph DesJardins and Ronald Duska, “Drug Testing in Employment”)
Whistleblowing
·
ETB, pp.
344–348 (Potter v. Village Bank of New
Jersey)
·
ETB, pp.
273–274 (editors’ introduction)
·
ETB, pp.
328–334 (Sissela Bok, “Whistleblowing and Professional Responsibility”)
·
ETB, pp.
335–339 (Ronald Duska, “Whistleblowing and Employee Loyalty”)
10 Employers and employees, part 2:
discrimination and affirmative action
·
ETB, pp.
437–438 (“Case 2: Sing’s Chinese Restaurant”)
·
ETB, pp.
438–439 (“Case 3: USAir’s Hiring Channel”)
·
ETB, pp.
361–365 (editors’ introduction)
·
ETB, pp. 370–374
(Thomas Nagel, “A Defense of Affirmative Action”)
·
ETB, pp.
374–379 (Louis P. Pojman, “The Moral Status of Affirmative Action”)
11 Employers
and employees, part 2: sexual harassment
—reaction paper no. 4 due
·
ETB, pp.
436–437 (“Case 1: ‘Harassment’ at Brademore Electric”)
·
ETB, pp.
368–370 (editors’ introduction)
·
ETB, pp.
410–412 (Edmund Wall, “The Definition of Sexual Harassment”)
·
ETB, pp.
413–419 (Vaughana Macy Feary, “Sexual Harassment: Why the Corporate World Still
Doesn’t ‘Get It’ ”)
12 The
ethics of information, part 1: disclosing
Advertising
·
ETB, pp.
506–507 (“Case 1: Food Labels and Artful Sales”)
·
ETB, pp.
509–510 (“Case 3: Green Advertising”)
·
ETB, pp.
510–511 (“Case 4: Computer Math for Car Loans”)
·
ETB, p. 512
(“Case 5: Marketing the Giant Quart”)
·
ETB, pp.
443–446 (editors’ introduction)
·
ETB, pp.
472–480 (Tom L. Beauchamp, “Manipulative Advertising”)
·
ETB, pp.
480–490 (George C. Brenkert, “Marketing to Inner-City Blacks: PowerMaster and
Moral Responsibility”)
13 The
ethics of information, part 2: bluffing, lying, and spying
Bluffing
·
ETB, pp.
508–509 (“Case 2: The Conventions of Lying on Wall Street”)
·
ETB, pp.
446–448 (editors’ introduction)
·
ETB, pp.
451–456 (Albert Z. Carr, “Is Business Bluffing Ethical?”)
·
ETB, pp.
456–462 (Thomas Carson, “Second Thoughts About Bluffing”)
Spying
·
ETB, pp.
449–451 (editors’ introduction)
·
ETB, pp.
491–498 (Lynn Sharp Paine, “Corporate Policy and Ethics of Competitor
Intelligence Gathering”)
14 Ethical
issues in international business
—reaction paper no. 5 due
—term paper due
·
ETB, pp.
514–517 (editors’ introduction)
·
ETB, pp.
535–545 (Thomas Donaldson, “Fundamental Rights and Multinational Duties”)
·
ETB, pp.
545–555 (Richard T. DeGeorge, “International Business Ethics: Russia and
Eastern Europe”)
·
ETB, pp. 556–568
(Iwao Taka, “Business Ethics: A Japanese View”)
15 Final
exam
VI. Presentations
Following are the reading assignments on which presentations may be done. Look them over if you want to, consider what your schedule will be in the coming weeks (vacations, etc.), and come to the second class ready to talk about specific dates. Be prepared to be flexible, since we’ve got to find a slot for everyone.
Week Assignment
2 1. ETB, pp. 210–215 (George G. Brenkert,
“Strict Products Liability and Compensatory Justice”)
2. ETB,
pp. 236–243 (Robert E. Frederick and W. Michael Hoffman, “The Individual
Investor in Securities Markets: An Ethical Analysis”)
3 3. ETB,
pp. 56–61 (Milton Friedman, “The Social Responsibility of Business Is to
Increase its Profits”)
4 4. ETB,
pp. 66–76 (R. Edward Freeman, “A Stakeholder Theory of the Modern Corporation”)
5. ETB,
pp. 85–96 (John R. Boatright, “Fiduciary Duties and the Shareholder-Management
Relation: Or, What’s So Special About Shareholders?”)
5 6. ETB,
pp. 126–135 (Ian Maitland, “The Limits of Business Self-Regulation”)
6 7. ETB,
pp. 136–143 (Richard T. DeGeorge, “Ethical Responsibilities of Engineers in
Large Organizations: The Pinto Case”)
8. ETB,
pp. 143–157 (Russell P. Boisjoly, Ellen Foster Curtis, and Eugene Mellican,
“Roger Boisjoly and the Challenger
Disaster: The Ethical Dimensions”)
7 9. ETB,
pp. 1–6 (editors’ introduction to morality vs. ethical theory, prudence, and
law)
8 10. ETB,
pp. 625–629 (Robert Nozick, “An Entitlement Theory”)
11. ETB, pp. 629–635 (Peter Singer, “Rich
and Poor”)
9 12. ETB, pp. 309–320 (Joseph
DesJardins and Ronald Duska, “Drug Testing in Employment”)
13. ETB,
pp. 335–339 (Ronald Duska, “Whistleblowing and Employee Loyalty”)
10 14. ETB,
pp. 374–379 (Louis P. Pojman, “The Moral Status of Affirmative Action”)
11 15. ETB, pp. 413–419 (Vaughana Macy Feary,
“Sexual Harassment: Why the Corporate World Still Doesn’t ‘Get It’ ”)
12 16. ETB,
pp. 480–490 (George C. Brenkert, “Marketing to Inner-City Blacks: PowerMaster
and Moral Responsibility”)
13 17. ETB, pp. 456–462 (Thomas Carson, “Second
Thoughts About Bluffing”)
18. ETB, pp. 491–498 (Lynn Sharp Paine,
“Corporate Policy and Ethics of Competitor Intelligence Gathering”)
14 19. ETB,
pp. 545–555 (Richard T. DeGeorge, “International Business Ethics: Russia and
Eastern Europe”)
20. ETB,
pp. 556–568 (Iwao Taka, “Business Ethics: A Japanese View”)
VII. Other resources
There are other documents, besides this syllabus, that you should read
for information about this course: in particular, my “General Policies” handout
and my “Guidelines for Writing a Philosophy Paper” handout. These documents,
like this syllabus, are part of the course Web site, at
www.pitt.edu/~egglestn/business_ethics.html. And, of course, I have office
hours that you should feel absolutely free to come to. They’re indicated
on my Web site, at www.pitt.edu/~egglestn.