case #1
Opening Case Part II Instructions
Overall Instructions
We will again be using the following two files for this assignment: 1) “A Domestic Garment Company – Sample Case and Answer PDF File”; and 2) “Opening Case PDF File.” Both are posted in the folder labeled “Exercise and Case Assignments” on your Course Home Page. If you did not save printouts of these two cases, please reprint them again.
Remember that you do not have to cite any material from the chapter, outline, and/or lectures from these sources in this course.
This is an INDIVIDUAL ASSIGNMENT, not a group assignment. I expect your answers to be your own thoughts and written in your own words! (See the discussion in your Syllabus regarding ECU’s Academic Integrity Policy.)
Save your file as a Word 2003 document (“.doc”), Word 2007 document (“.docx”), Word 2010 document (“.docx”), or in “rtf” format. DO NOT USE MICROSOFT WORKS OR SAVE YOUR FILE IN ANY OTHER FORMAT. I WILL NOT BE ABLE TO ACCESS YOUR FILE AND THEREFORE WOULD HAVE TO GIVE YOU A GRADE OF “0.”
Save the file as “OpeningCasePartII” and then your last name, first name initial, and middle initial. For example, my last name is obviously “Jones,” my first name initial is “C,” and my middle initial is “C.” Therefore, I would save my file as “OpeningCasePartIIJonesCC.” If you do not have a middle name, enter your first name initial twice. If you have more than one middle name, use the initial of your first middle name only. DO NOT LEAVE SPACES IN YOUR FILE NAME because it prevents me from properly archiving your file.
Opening Case Part II Instructions (Continued)
Overall Instructions (Continued)
Type your answers according to the “Assignment Instructions” below (Instructor’s Note: Failure to following the format when completing this assignment can cost you a significant number of points). Then, save your file according to instructions 4 – 5 above, PROOFREAD YOUR PAPER (grammatical errors in your paper can cost you significant points), then submit it BEFORE the deadline as shown on your Blackboard Calendar and as explained in instruction 7 below.
Submit your file by clicking on the “Exercise/Case Assignments” Tab in the left-hand frame in Blackboard. Then click on the assignment titled “Opening Case Part II” and scroll down until you see the words “Attach File” and the buttons to the right titled “Browse My Computer” and “Browse Course.” Click the “Browse My Computer” button and attach your file (DO NOT type your answer to this exercise in the “Submission” text box). When you see that your file has been properly attached, click the “Submit” button. You will not be able to access this assignment until you have scored at least a 90% on Chapter 7's Practice Quiz.
Opening Case Part II Instructions (Continued)
Assignment Instructions
To help better understand the format of your case analyses, I am dividing the opening case assignment into two parts: Opening Case Part I and Opening Case Part II. In Part I we covered the first two steps of case analysis: Ethical Issue Identification and Stakeholder Analysis. In Part II will cover the third step of case analysis: Decision(s) and Analysis. To help understand this process, we will use the same two files that we used in Part I: “A Domestic Garment Company – Sample Case and Answer PDF File” as a sample case and “Opening Case PDF File” as the case you will analyze. To make sure everyone is using the same ethical issue and stakeholder analysis, I have given you this information in the following section. Use it for your Part II analysis, NOT what you handed in to me.
Opening Case Part II Instructions (Continued)
Opening Case Part II Format
Ethical Issue(s)
The ethical issue in this case is whether to follow the narrow view or broader view of corporate social responsibility. The narrow view of corporate social responsibility, also called profit maximization, is most associated with Milton Friedman. In his book Capitalism and Freedom, economist Milton Friedman (1912–2006) argues that diverting corporations from the pursuit of profit makes the economic system less efficient. Therefore, Friedman argues that business’s only social responsibility is to make money within the rules of the game. The broader view of corporate social responsibility, also called the stakeholder model, states that business has obligations in addition to pursuing profits. In other words, a corporation has obligations not only to its stockholders, but to all other constituencies that affect, or are affected by, its behavior. Most scholars recognize the broader view of corporate social responsibility as the most ethical approach to decision-making. As the CEO of Nike, I have the ultimate responsibility for our corporation’s welfare. In response to a lawsuit against my company for false advertising, my legal team fought the claim on the grounds of corporate free speech with the ultimate goal of protecting the stockholders of Nike. However, the underlying reasons for the false advertisement lawsuit—misleading claims about working conditions inside Nike factories—were not considered. Therefore, I need to use the broader view of corporate social responsibility to determine what Nike’s next step will be in this situation.
Opening Case Part II Instructions (Continued)
Opening Case Part II Format (Continued)
Stakeholder Analysis
CEO Philip Knight (Decision-Maker)/Nike
I want to make a decision that will consider all of our stakeholders’ stakes.
I fear alienating present and potential customers.
I want to make a decision that is based on sound reasoning.
I hope to find a way of effectively dealing with the lawsuit.
I do not want to make false claims about the working conditions inside Nike factories even if they are protected by commercial freedom of speech rights.
Nike Stockholders
They want to maximize the return on their investment over the long-term.
Present/Potential Customers
They want quality products made by workers who have not been exploited or forced to work in poor working conditions.
They want quality products at competitive prices.
[There are other stakeholders and stakes not listed here. For purposes of completing step three of the case analysis, we will only analyze the eight stakes above.]
Opening Case Part II Instructions (Continued)
Opening Case Part II Format (Continued)
Step 3: Decision(s) and Analysis
Decision(s) (10 points)
Determine what the most ethical decision or decisions are that resolve all of the ethical issues you identified in Step 1. List and describe each decision in a separate paragraph labeling them sequentially (e.g., Decision #1, Decision #2, etc.) as shown in the sample case and answers.
VERY IMPORTANT: Make sure you do not make alternate decisions. Alternate decisions are “either-or” decisions. For example, if I stated in the sample case that my Decision #1 was to lay off one-third of the sewers and my Decision #2 was to cut all sewers’ pay by one-third, these would be alternate decisions in this case. There is no way to implement both decisions at the same time and, therefore, no way to analyze which decision is the most ethical.
After listing and describing all of your decisions, explain how they resolve all of the ethical issues you identified in Step 1 of the case.
Opening Case Part II Instructions (Continued)
Opening Case Part II Format (Continued)
Nonconsequentialist Analysis of Decisions (10 points)
Review all of the 26 SUBCHARACTERISTICS identified on the Six Pillars of Character Outline in Chapter 2 (i.e., ones with an “(S)” after them) asking yourself if any ONE of your decisions violates that subcharacteristic. If any one of your decision(s) violates a subcharacteristic, it is not an ethical decision using a nonconsequentialist analysis. For example, if I decided to immediately layoff 1000 sewers in the sample case, that decision violates the WARN Act and violates the lawfulness subcharacteristic. That decision would not be an ethical decision and I would need to start over.
If none of your decision(s) violates one of the 26 subcharacteristics, then choose the STRONGEST FOUR subcharacteristics that you feel support your decision(s) as being the most ethical.
In a separate paragraph for each subcharacteristic:
First, type the name of the subcharacteristic with a “:” after it.
Second, copy and paste the EXACT definition of the subcharacteristic used in the Six Pillars of Character Outline.
Third, explain in detail how a specific decision or decisions uphold the subcharacteristic identified.
Opening Case Part II Instructions (Continued)
Opening Case Part II Format (Continued)
Consequentialist Analysis of Decisions (10 points)
BASED ON YOUR DECISIONS ABOVE, categorize every stake identified in Step 2 as either a cost, a benefit, or part cost and benefit. DO NOT RE-NUMBER YOUR STAKES.
Categorize any additional costs and benefits generated by your decisions.
Analyze your costs and benefits identified in #1 and #2 above. Do the benefits outweigh the costs? If so, your decision(s) are ethical using a consequentialist analysis. If not, your decision(s) are unethical using a consequentialist analysis and you need to start over.
If you believe the benefits outweigh the costs, argue why you believe so in no more than one paragraph.