Business Ethics Research Project

All answers are from the textbook “Business Ethics: A Conversation”.https://www.bvtlabbook.com/account

BA 290 – SPRING 2024 3rd PORTION OF RESEARCH PROJECT – REQUIRED SUBMISSION © The objective of the 3rd Portion of the Research Project is for the student to demonstrate a basic understanding of: a) what is a corporation; b) roles or purposes of a corporation in our society; c) corporate governance concepts, including legal duties imposed upon directors, officers, managers, employees, and agents of the corporation; d) corporate ethical leadership principles; e) moral “rights” in the workplace; f) diversity, discrimination, and sexual harassment in the workplace concepts; and g) concerns doing business in a “global arena,” including United States’ “Foreign Corrupt Practices Act.” The maximum possible points for this 3rd portion of the Research Project are 10.0 points. This represents another 10.0% of the total points that will be available for the Research Project. However, working on this portion is also intended to help prepare you for the 2nd Test!!! For the 3rd portion of the Research Project, you are required to answer/respond to each of the five mandatory items (i.e., including all subparts under each item) listed below by 11:59 PM on Monday, March 11, 2024 (i.e., must be submitted via email to me before midnight!). Please note that each question or request for information is identified by a black square like this: ▪ (Sample black square which identifies a required question or request to be answered/responded). Students are to submit their complete answers/responses to each of the five items in a PDF1 type document attached to an email sent to me at [email protected]. ***For each day a submission is late/delayed, 5 points will be deducted from the score. So, for instance, if a student’s email submission is sent at any time on Tuesday, March 12, 2024, 5 points will be deducted from their score (e.g., so, if a student received a score of 10 for their answers/responses, that score would be reduced to 5.0 points). *** For submissions after 11:59 PM on Tuesday, March 12, 2024, no points will be earned! 1 Students can copy the questions/requests for information as a Word document for answers typing purposes, but must save the Word document version as a PDF type document and attach the PDF version to their email. Page 1 of 20 The five items below are based upon the five chapters that will be covered on the 2nd Test (i.e., Chapters 5 through 9 of our textbook). Work on this 3rd portion of the Research Project involves only searching for information that is contained in the textbook. Most of the items required to be answered/responded to are easily found in the textbook. Additionally, “hints” as to where in the textbook you can locate the information are included with virtually every request. As such, though this 3rd portion involves numerous requests, it should take minimal effort to provide correct/accurate answers/responses. Included below, with this 3rd portion of the Research Project, is another rubric for how this portion’s requirements will be scored. As noted in the rubric, points will be missed if there are incomplete or inaccurate answers/responses. So, please make sure you answer/respond to all subparts! It’s a good idea to double-check that all subparts are answered/responded to before submission. Good skill and luck with your efforts! Page 2 of 20 ITEMS TO BE COMPLETELY ANSWERED AND/OR RESPONDED TO FOR 3rd PORTION OF RESEARCH PROJECT 1) The subparts of this first item are based on Chapter 5, “Corporate Social Responsibility” of the textbook. a) In Chapter 5 Professor Roe starts out with the question: “What is a corporation?” This question is analyzed by distinguishing sole proprietorships and partnerships from corporations. Professor Roe explains that personal owners of a sole proprietorship or partnership are personally liable for the debts of their business/partnership. Professor Roe then states as follows: “This personal liability for the business debts strongly discourages __________ ___________ who might be willing to risk financial investment, but unwilling to risk ___________ __________ for the business debts. To address this problem, the law created the concept of the business corporation, which is a “____________ __________” __________ and ____________ from the owners. In the corporate business structure, the __________ and ______________ generally have no risk of ____________ _____________ for the business debts.” ▪ Fill in the missing blanks in red type. [Hint: See, Chapter 5, page 64]. Answer/Response: b) Next in chapter 5, Professor Roe explains that a corporation is “an artificial person” and then goes on to explain, however, that when decisions are made within a corporation, there is always “some person [or persons]” who makes the decision. Professor Roe goes on to state: “So, when we consider issues of corporate ethics and social responsibility, it is important to remember that each and every ____________ ___________ faced by a corporation is really being faced by people, _______ ________________, _______ _____________ ___ ____________, ____ ____________, and ____________, and its employees.” ▪ Fill in the missing blanks in red type. [Hint: See, Chapter 5, page 65, first full paragraph]. Answer/Response: Page 3 of 20 c) Professor Roe next explains: “… it should be pointed out that the traditional definition of a corporation has been evolving, at least from a legal perspective. Courts have been endowing corporations with many of the attributes of the human beings who own and run them. Traditionally, the inanimate corporation was not even capable of committing a crime, because it could not think or have criminal intent (remember, it doesn’t have a soul or a mind). Over the past 50 years, the courts and lawmakers have recognized that a corporation is capable of criminal intent.” Professor Roe then states that, since 2010, the US Supreme Court has ruled that a business corporation has certain other rights like the rights of individuals. [See, second full paragraph on page 65 of Chapter 5]. ▪ Identify the three rights that the US Supreme Court has ruled a business corporation can have, as stated by Professor Roe. [Hint: See, Chapter 5, page 65, third full paragraph]. Answer/Response (typed in red): i. ii. iii. d) An important issue is next addressed by Professor Roe. That being: “What is the Role of a Corporation?” ▪ List the three views of the role or purpose of a corporation as identified by Professor Roe in subsections 5.4, 5.5, and 5.6 of Chapter 5. Also briefly describe each of these three views. [Hint: For some good short descriptions, see, Chapter Highlights at the end of Chapter 5, items 3, 4 and 5, at page 74]. Answer/Response (typed in red): i. ii. iii. Page 4 of 20 e) The last topic Professor Roe addresses in Chapter 5 is responsibility for corporate wrongdoing. [This is in section 5.8 of Chapter 5]. Professor Roe goes on to address two different views of the “moral responsibility” for wrongdoing within a corporation. ▪ State, and briefly describe both views of “moral responsibility” for wrongdoing within the corporation, as discussed by Professor Roe. [Hint: See, Chapter Highlights at the end of Chapter 5, items 7 and 8, at page 75]. Answer/Response (typed in red): i. ii. 2) The subparts of this second item are based on Chapter 6, “Corporate Governance and Ethical Leadership” of the textbook. a) In Chapter 6, “Corporate Governance and Ethical Leadership,” Professor Roe starts off by addressing some legal duties that arise with corporations. During lectures it was explained that these legal duties arise out of the principal-agent relationship (i.e., agency law concepts) between the directors, officers, and employees of the corporation (the agents) and the corporation itself (the principal). ▪ List the three duties owed by agents to the corporation addressed in Chapter 6. [Hint: See, Chapter 6, at pages 78 – 81]. Answer/Response (typed in red): i) ii) iii) Page 5 of 20 b) With respect to the duty of obedience, Professor Roe states: “When we speak of the duty of obedience, we mean that you are not to act outside of the ___________ ____ ______ _________________________ ______________ as it is defined in the company’s ________________ ____ ________________________, or in violation of the laws of the state in which the company is _______________________.” ▪ Fill in the missing blanks in red type. [Hint: See, Chapter 6, page 78, first full paragraph]. Answer/Response: c) In Chapter 6 Professor Roe raises the question of whether a corporation’s mission statement (also sometimes referred to as a vision statement) must be obeyed as a legal duty. Professor Roe then goes on to give examples of five corporations’ mission statements. [See, Chapter 6, bottom of page 78 and top of page 79] ▪ Of those five examples, state which corporation’s mission statement is described to be more in line with the “shareholder” view of the role or purpose of the corporation because it speaks of “maximizing shareholder profits.” ▪ Also state which of those examples of corporation mission statements you find is most likely (i.e., in your opinion, meaning there is no correct/accurate answer for this second part!) to be found to impose a legal duty of obedience on the agents of the corporation. Answer/Response (typed in red): i) ii) Page 6 of 20 d) With respect to the duty of loyalty, the following is stated in Chapter 6: “The duty of loyalty dictates that a director or corporate officer must act in ________ __________ and must not allow his or her personal interest to prevail over the interests of the __________________. Put another way, you have a duty to ______ ________ ______ _______________ ____ ______ ________ _____________________________ ______ ________ __________________, and not what is first and foremost in your own personal interest.” ▪ Fill in the missing blanks in red type. [Hint: See, Chapter 6, starting at the bottom of page 79 and on to the top of page 80]. Answer/Response: e) The duty of care is described as follows in Chapter 6: “The duty of care requires you to be _______________ and _____________ in managing the corporation’s affairs. This does not mean that you can never make a mistake. In fact, under a principle of the law of corporations called the _________________ ________________ ________________, you are not liable for losses incurred for decisions you make in _________ _________ and in the exercise of ______________________ ________.” ▪ Fill in the missing blanks in red type. [Hint: See, Chapter 6, starting at the bottom of page 80 and on to the top of page 81]. Answer/Response: Page 7 of 20 f) Discussed in the section titled “Ethical Leadership” [See, Chapter 6, page 81], Professor Roe addresses seven guidelines that have become the foundation for companies to follow in establishing themselves as a minimally ethical company. These are described as the “Seven Pillars of Corporate Compliance?” ▪ List the seven principles for corporate conduct. [Hint: See, Chapter 6, pages 82 – 87]. Answer/Response (typed in red): i) ii) iii) iv) v) vi) vii) ▪ Professor Roe also described why these seven principles should be taken “seriously.” State why, as described by Professor Roe, these seven principles should be taken seriously. [Hint: See, Chapter 6, bottom of page 87 onto the top of page 88]. State the reason the seven pillars should be taken “seriously” (typed in red): Page 8 of 20 3) The subparts of this third item are based on Chapter 7, “Moral Rights in the Workplace,” of the textbook. a) Chapter 7 starts off with a discussion of the concept of a “ right to work.” Professor Roe distinguishes the “philosophy” of a “right to work” as stated in Article 23 of the United Nations Universal Declaration of Human Rights from what the legal context of a “right to work” is in the United States. During this “right to work” discussion, Professor Roe addresses whether, in the United States, either the private sector or the public sector has a duty to employ/hire anyone. [See, Chapter 7, pages 93 in 94]. ▪ State which, if any, of the private and public sectors is under a legal duty in the United States to employ/hire anyone. ▪ Also, fill in the blanks for this quote from Professor Roe’s discussion of the “right to work” (in red type): “At best, one has the right to _________________ ________________ of being employed, but again, no __________________ ___________ to an actual job.” [Hint: See, second full paragraph on page 94 of Chapter 7]. ▪ Additionally, Professor Roe then goes on to mention what the “right to work” means in a legal context. State what Professor Roe describes as the “so-called right to work.” [Hint: See, last paragraph of page 94 of Chapter 7]. Answer/Response (typed in red): 1) 2) 3) Page 9 of 20 b) Professor Roe next discusses the employment-at-will doctrine. After initially explaining what is meant by the employment-at-will doctrine, Professor Roe goes on to address three arguments in favor of the employment-at-will doctrine, as well as some counter arguments. [See, pages 96 and 90 seven of Chapter 7]. ▪ Explain what is meant by the employment-at-will doctrine. [Hint: See, the first three sentences of section 7.3 of Chapter 7]. ▪ List the three arguments addressed by Professor Roe which favor the employment-at-will doctrine. [Hint: See, the Chapter Highlights at the end of Chapter 7, item #6]. Answer/Response (typed in red): 1) 2) c) Professor Roe goes on to suggest that, though employees under the employment-at-will doctrine can be terminated for no reason, ethically, “…employees should have some rights to what we call ‘due process,’ and should not fear being terminated for no valid reason.” Professor Roe then discusses two aspects of “due process.” ▪ List and briefly explain the two aspects of due process as addressed by Professor Roe. [Hint: See, item #7 of the Chapter Highlights at the end of Chapter 7]. Answer/Response (typed in red): Page 10 of 20 d) A couple of contract rights are next discussed in Chapter 7. Those include: 1) covenants not to compete; and 2) confidentiality agreements. Professor Roe addresses how one of these type contracts/agreements are typically enforced under the law when deemed reasonable based upon three (3) requirements being met while the other type is typically enforced because it is based upon the concept of an employee’s duty of loyalty. [See, last paragraph at the bottom of page 99 and discussion on page 100 of Chapter 7]. ▪ State which of these two types of contracts is typically only enforceable when deemed reasonable based upon the three (3) requirements being met and which one is enforceable because it is based upon the concept of an employee’s duty of loyalty. ▪ Professor Roe goes on to discuss that, for covenants not to compete to be enforceable, the employer must establish that its covenant not to compete agreement passes the “reasonability test.” State the three areas that this “reasonability test” requires to be reasonable. [Hint: See, item #8 of the Chapter Highlights at the end of Chapter 7]. Answer/Response (typed in red): 1) 2) e) When discussing health and safety in the workplace, Professor Roe explains “that there is no such thing as a completely safe work environment.” Professor Roe goes on to suggest that there is a “twofold analysis of risk” that can be applied to any activity in which we engage. [See, page 101 of Chapter 7]. The discussion of the risk analysis leads to Professor Roe identifying “two moving targets and any decision that we make when it comes to risk analysis.” [See, page 101 of Chapter 7]. ▪ List the “two moving targets” that, according to Professor Roe, are involved in any decision that we make when it comes to a risk analysis. [Hint: See, second full paragraph on page 102 of Chapter 7]. Answer/Response (typed in red): Page 11 of 20 f) The last thing discussed in Chapter 7 is the concept of whether there is a right to privacy in the workplace. ▪ With respect to things like company computers, cell phones, emails and similar items, state what the general rule is to whether an employee has any workplace privacy rights. [Hint: See, item #11 of the Chapter Highlights at the end of Chapter 7]. Answer/Response (typed in red): Page 12 of 20 4) The subparts of this fourth item are based on Chapter 8, “Diversity and Discrimination,” of the textbook. a) In section 8.3 of Chapter 8, title “Preferential Hiring,” Professor Roe states: “preferential hiring in affirmative action is most often justified as a form of compensatory justice.” ▪ State what is meant by compensatory justice as it applies to hiring preferences. [Hint: See, item #3 of the Chapter Highlights at the end of Chapter 8]. Answer/Response (typed in red): b) Sexual harassment is discussed in section 8.4 of Chapter 8. Professor Roe starts by addressing what, according to the United States Equal Employment Opportunity Commission (EEOC), constitutes sexual harassment. ▪ State what the EEOC describes as “sexual harassment.” [Hint: see, page 118 of Chapter 8, second paragraph of the quote from the EEOC, and item #7 of the Chapter Highlights at the end of Chapter 8]. Answer/Response (typed in red): c) There are two forms of sexual harassment that are discussed in chapter eight. ▪ List the two forms of sexual harassment addressed in Chapter 8. [Hint: See, last two paragraphs on page 119 of Chapter 8]. Answer/Response (typed in red): Page 13 of 20 d) In order for there to be a finding of liability on a claim of sexual harassment based upon a “hostile work environment,” four things must be shown or proven. ▪ List the four things the current EEOC guidelines states must be established or proven for there to be a finding of liability on a claim of sexual harassment based upon a “hostile work environment.” [Hint: See, numbered items on page 120 of Chapter 8]. Answer/Response (typed in red): i. ii. iii. iv. e) Professor Roe goes on to address “some fairly good guidelines” provided by the EEOC to prevent sexual harassment in the workplace. Some things that “an effective preventive program” should have are then addressed by Professor Roe. ▪ List the three items that Professor Roe states a company should have or do for an effective sexual harassment preventive program. [Hint: See, numbered items starting on the bottom page 121 of Chapter 8]. Answer/Response (typed in red): i. ii. iii. Page 14 of 20 f) The last topic discussed in Chapter 8 is what a company should do after it receives a complaint of sexual harassment. ▪ List the five things that a corporation/employer should do after it receives a complaint of sexual harassment. [Hint: See, numbered items at the top of page 122 of Chapter 8]. Answer/Response (typed in red): i. ii. iii. iv. v. Page 15 of 20 5) The subparts of this fifth item are based on Chapter 9, “Ethics in a Global Environment,” of the textbook. In the introduction to Chapter 9, ethics in a global environment, Professor Roe states that, the simple fact is, that we live in a global environment. He goes on to state that the odds are excellent that most of us, eventually, are going to be involved in some aspect of international trade and business. [This is also covered at page 33 of the chapter 4 lecture notes]. ▪ State what Professor Roe describes as the most common ethical challenge faced by companies and individuals working in a “global environment.” Answer/Response (typed in red): ▪ When was the United States Foreign Corrupt Practices Act (FCPA) enacted and what was the FCPA enacted in response to (according to Professor Roe)? [Hint: See, Page 130, first paragraph of section 9.3 of Chapter 9]. Answer/Response (typed in red): ▪ According to Professor Roe, what does the FCPA prohibit? [Hint: See, page 130, section 9.3, of Chapter 9]. Answer/Response (typed in red): Page 16 of 20 Starting at the bottom of page 130 of Chapter 9, Professor Roe states that: “Before the government can successfully prosecute someone for violation of the [FCPA], its case must pass by tests.” ▪ List the five tests which the government must establish to successfully prosecute someone for a violation of the FCPA. [Hint: You need only restate what is contained in the first sentence of each of the paragraphs each step is identified in. You do not have to provide any further explanations, though Professor Roe goes on to further explain each of the five steps.] Answer/Response (typed in red): 1) 2) 3) 4) 5) Page 17 of 20 Professor Roe next addresses what happens if the government accuses you of violating the FCPA. He then addresses two types of defenses to a charge of violating the FCPA. ▪ State the two types of defenses to a charge of violating the FCPA addressed by Professor Roe. [Hint: See, The last two paragraphs of page 133 and the first full paragraph of page 134 of Chapter 9]. ▪ Also, describe what types of payments are considered “facilitating payments,” which are a type of payment that is allowed under the FCPA. [See, the first full paragraph of page 134 of Chapter 9]. Answer/Response (typed in red): i. ii. Facilitating payments are defined as (typed in red): Page 18 of 20 BA 290 – Grading Rubric for 3rd Portion of Research Project Possible Points → Item 1: 2.0 points 1.5 points 1.0 point All answers/responses Most, but not all, Less than half of the to the questions or answers/responses to answers/responses to requested information the questions or the questions or were completely requested information requested information accurate. were complete or were complete or accurate. accurate. All answers/responses Most, but not all, Less than half of the to the questions or answers/responses to answers/responses to requested information the questions or the questions or were completely requested information requested information accurate. were complete or were complete or accurate. accurate. All answers/responses Most, but not all, Less than half of the to the questions or answers/responses to answers/responses to requested information the questions or the questions or Chapter 7, “Moral were completely requested information requested information Rights in the accurate. were complete or were complete or accurate. accurate. All answers/responses Most, but not all, Less than half of the to the questions or answers/responses to answers/responses to requested information the questions or the questions or were completely requested information requested information accurate. were complete or were complete or accurate. accurate. Materials from Chapter 5, “Corporate Social Responsibility” Item 2: Materials from Chapter 6, “Corporate Governance and 0 points No answer/response. No answer response. Ethical Leadership” Item 3: Materials from Workplace” Item 4: Materials from Chapter 8, “Diversity and Discrimination” Page 19 of 20 No answer/response. No answer/response. Item 5: Materials from All answers/responses Most, but not all, Less than half of the Chapter 9, “Ethics in to the questions or answers/responses to answers/responses to a Global requested information the questions or the questions or Environment” were completely requested information requested information accurate. were complete or were complete or accurate. accurate. No answer/response. *** 5 points will be deducted for each day the submission of Not available Not available answers/responses is late. *** So, for submissions more than 1 day late, no points will be earned! Page 20 of 20 Not available Not available

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