CENTRAL MICHIGAN UNIVERSITY

COLLEGE OF EXTENDED LEARNING

METRO DETROIT REGION

Philosophy 318: Business Ethics

I. Identifying Information

Course Reference Number: 57787

Location: Livonia Center -

Course Dates/Times: Friday, June 20 (6 p.m. – 10 p.m.); Saturday, June 21 (8:00 a.m. – 5 :00 p.m.);

Friday, June 27 (6 p.m. – 10 p.m.); Saturday, June 28 (8:00 a.m. – 5:00 p.m.);

Friday, July 11 (6 p.m. – 10 p.m.); Saturday, July 12 (8:00 a.m. – 5:00 p.m.).

Course prerequisites: None

Instructor: Dr. Robert Noggle

Associate Professor of Philosophy

CMU, Main Campus

Ph.D., Philosophy, University of Illinois at Chicago, 1995

Primary Areas of Research and Teaching: Moral Theory, Moral Psychology, Political Philosophy, Applied Ethics (including business ethics and moral issues relating to children)

Instructor Contact Information:

Phone: (989) 774-2651

E-Mail: <R.Noggle@cmich.edu>

Home page: <http://www.chsbs.cmich.edu/robert_noggle/>

Availability: I am generally available at the number listed Monday through Thursday during business hours. If you don’t reach me, please leave a message with a good time to get back to you (I’ll return calls in the evening if you wish). I check my email almost daily.

II. TEXTBOOKS AND INSTRUCTIONAL MATERIALS

The following texts are required:

(1) Business Ethics, 4^th ed., by William H. Shaw. Wadsworth, 2002. ISBN 0-534-57349-5

(2) A course pack of supplementary materials. Prepared by Primis (McGraw-Hill Custom Publishing). ISBN: 0072021047

III. COURSE DESCRIPTION

Business ethics involves two main kinds of moral standards. One kind of standard derives from the goals of the business enterprise itself. These ethical standards–many of which have become codified in the law–are meant to improve both the efficiency and the fairness of the business system. A second kind of standard derives from the need to integrate the values and goals of business with other moral, social, and personal values that we hold, both as individuals, and as a society. This second kind of issue can be thought of as involving the question of how to be a successful business person while maintaining one’s own personal integrity. This course will provide students with an understanding of both kinds of issues. It will also provide students with a conceptual framework (derived from moral philosophy) for thinking about values, moral principles, and standards of ethics. It will provide students with an understanding of both the content and the rationale for the standards of ethics that are widely endorsed (though not always practiced) in our society. It will also provide some training and practice in applying those standards, and in moral problem-solving.

IV. COURSE GOALS AND OBJECTIVES

As a result of this course, students should

1. Learn the basic ideas of moral philosophy and moral psychology and how they apply to the business context. In particular, students should

A. Understand the nature and value of personal integrity

B. Learn to recognize various pitfalls that can lead good persons to make unethical choices.

C. Gain a deeper understanding of the moral values and principles espoused by civilized society. This will include a brief introduction to moral philosophy, which is field that studies those values and principles.

D. Learn strategies for making moral decisions when important values and principles seem to conflict with one another.

2. Become familiar with the content, justification, and application of the prevailing standards of ethical conduct in the business world. In particular, students should

A. Understand how unethical conduct can affect both the individual business and the business profession as a whole

B. Understand what the prevailing moral standards require for ethical business conduct.

C. Understand the reasons behind these standards, and their relation to widely shared social values and presuppositions about what moral behavior requires

D. Practice applying those standards to specific, real world cases, including cases in which moral standards and values conflict with one another.

3. Understand the various arguments concerning a number of controversial issues about morality and business, including the proper scope of business’s responsibility to society, the moral status of advertising, the limits and scope of workers’ rights, etc.

V. METHODOLOGY

I will assume that students will come to class having already read the assigned reading for that session. Diligent reading of the texts will be crucial to your success in the course. For the most part, the texts are sufficiently clear that I should not need to lecture over every point they make. Therefore, I will usually avoid simply lecturing over the content of the texts. Instead, we will spend class time engaged in a variety of activities designed to build on what you have already learned from your reading.

These activities will include lectures about information which was not included in the readings or which requires further explanation; discussions of the meaning and application of the ideas from the texts; debates about various moral and political questions regarding business; small-group discussion of cases involving the application of various moral principles; and viewing and discussing films and video clips that deal with various topics in or questions about business ethics.

Unless I say otherwise in class, you are responsible for all of the assigned material from the texts–even the material that is clear enough that I don’t need to repeat in lecture. Such material is “fair game” for the exams. If you don’t understand something in the text, and if I do not cover it in class, it is your responsibility to ask me about it.

IV. COURSE OUTLINE/ASSIGNMENTS:

A. Outline: A detailed course outline, with a list of reading and other assignments, appears at the end of this document.

B. Assignments: The major assignments for this course will consist of a midterm exam, a final exam, and a 6-8 page paper. The midterm exam will count for 100 points, and the final exam will count for 120 points. The paper will count for 80 points. I reserve the right to give unannounced quizzes, if I feel it is necessary to motivate students to put forward their best efforts. Outstanding participation will have some positive effect on the final course grade, especially if you are on the borderline between two grades.

1. Midterm and Final Exams: The midterm and final exams will consist mainly of multiple choice questions, with a small number of short essay questions. The final exam will not be “strongly” cumulative. That is, its main focus will be on the material from the second half of the course, though it may contain a couple of questions from the earlier parts. All exams will be graded on a straight or absolute scale (i.e., they will not be “curved”). 90 to 100% is the A and A- range; 80-89% is the B-/B/B+ range; 70-79% is the C-/C/C+ range; 60-69% is the D-/D/D+ range; below 60% is failing. Any material from the book or from lectures, class discussions, or other activities (including films) is “fair game” for the exams, unless I tell you otherwise in class. The midterm exam will be worth 100 points; the final exam will be worth 120 points.

2. Paper: The paper must be 6-8 pages long, and must be on an approved topic. Longer than 8 pages is fine; shorter than six pages is not fine. (A “page” here means a double-spaced page with no more than 1” margins and a 11-12 point font. Such a page will hold 250-300 words). The paper is due at the end of the final meeting for this class (you may turn it in earlier if you wish). You may submit the paper by email. If you do not wish to submit by email, then you must get the paper to me no later than the due date (so I suggest that you use a reliable form of delivery service). It is your responsibility to make sure that you have the paper in my possession at the proper time. It is also your responsibility to keep a copy of the paper until you receive a final grade for the course. The paper will be worth 80 points.

Paper Topics: I will suggest a number of pre-approved topics as we go. If you want to write about some other topic, you must clear it with me ahead of time. The paper must deal in a substantial way with some moral issue relating to business. Several different types of paper will be acceptable: One acceptable kind of paper would be an extended case study of an incident or issue in the business world with an important and interesting moral dimension (for example, the Enron/Arthur Anderson scandal, the Ford-Firestone scandal, the business practices of Mircrosoft, or some moral dilemma you have faced, seen, or heard about in your own experience). Another acceptable kind of paper would be an argumentative paper that argues for a specific position on some controversial moral or public policy issue relating to business (such as the extent of the social responsibility of business, whether insider trading should be legalized, etc.). A third acceptable kind of paper would be a “journalistic” investigation of whether some particular business or institution is violating any moral or legal norms (in the past, students have chosen to write about the university bookstore and price gouging, the CMU board of trustees and conflict of interest, and the local gas stations and price-fixing). A fourth acceptable type of paper would be a traditional research paper which digs into the legal, historical, or business background of some topic discussed in the course (for example: a careful, detailed exploration of the SEC rules on insider trading, a discussion of the regulations governing the accounting profession, a survey of a number of corporate codes of ethics, a survey of various approaches to defining and prohibiting conflicts of interest).

C. Pre-Class Assignment: Your assignment for the first weekend of the course is to read the required readings for topics 1, 2, 3, and 4. You do not need to read the handout mentioned under topic three until after the first weekend (which is when I will give it to you). You should be prepared with a specific list of questions about anything that you do not understand from the reading. Near the end of the first weekend, if I have not answered those questions already, you should be sure to ask them.

D. Assignment Due Dates: Exam dates and due dates for all assignments are listed on the course outline, which appears at the end of this document.

E. Student-Involvement Hours: In addition to the 36 hours that the course meets, you should plan to spend a significant amount of time outside of class reading, studying, thinking, and writing. The rule of thumb for an on-campus course is that you should spend around two hours working outside of class for every hour you spend inside class. Since there are fewer classroom hours in a CEL class, you should expect to do more of the total course work outside of class. Thus, you should expect to spend between two and three hours outside of class for each classroom hour. That means that your total time commitment for this course should be between 108 (36 + 2 X 36) hours and 144 (36 + 3 X 36) hours. Depending on your abilities and previous experience, you may be able to do well in the course without putting in this many hours. However, IF YOU ARE UNABLE OR UNWILLING TO MAKE A SIGNIFICANT COMMITMENT OF TIME TO THIS COURSE, THEN YOU SHOULD NOT BE SURPRISED IF YOU DO NOT DO AS WELL AS YOU MIGHT LIKE ON THE EXAMS AND PAPER.

VII. CRITERIA FOR EVALUATION

A. Exams: The exams will be mainly multiple-choice, with a few very short essays. Exams will be graded on a straight scale (i.e., no “curving”), with 90-100% constituting the A/A- range; 80-89% the B-/B/B+ range, 70-79% the C-/C/C+ range, and 60-69% the D-/D/D+ range. The midterm exam will be worth 100 points; the final exam will be worth 120 points.

B. Papers: Papers are graded on a standard of excellence, not a standard of mediocrity. A paper that merely meets the minimum requirements will not earn higher than a C. In order to earn a B, a paper must not simply meet the minimum requirements; it must exceed them. A paper will earn an A only if it is truly excellent or outstanding. A paper that is substandard in quality will earn no higher than a D. Letter grades will be assigned for papers and then converted to point values in the following manner: A+ = 99%, A = 96%, A- = 93%, B+ = 87%, B = 85%, B- = 82%, C+ = 77%, C = 75%, C- = 72%, D+ = 67%, D = 65%, D- = 62%. Failing papers will receive no more than 59 points, with the exact number depending on how far they fall short of passing quality. The criteria for assigning paper grades include:

a. How well you have demonstrated an understanding of the moral issues you discuss

b. The intellectual content of the paper, which consists of

1. The quality of your research. While you should cite any ideas or information you get from anywhere else, and while it is appropriate to use a few quotations, the bulk of the paper should be in your own words. Also, note that high-quality research does NOT consist simply of restating facts from one or two sources, but rather in integrating or synthesizing information from multiple sources in a way that displays your own intellectual initiative. Good research does not simply compile information; it analyzes that information or uses it to draw some conclusion, illustrate some claim, or answer some question. Remember, good research is much more than collecting and relaying facts. The point is not simply to collect and relay information, but to THINK about it and to USE it.

2. The quality of the argument about and/or analysis of the moral issues addressed by the paper. Arguments given in a paper should be intelligent. They should be free of logical errors, and any claims that they rely on should be supported by evidence or reasons. Arguments should also anticipate any obvious objections. Responses to opposing arguments should portray them accurately.

c. The quality of the writing. This includes clarity, organization, and focus, as well as mechanics such as grammar, punctuation, spelling etc. The quality of your writing counts in the real world, and it counts in this class. A paper that lacks clarity, focus, and organization suggests that the author’s understanding of the topic and ideas about it are disorganized, illogical, or fuzzy. A paper that displays bad grammar, spelling, and punctuation suggests that the author either does not understand the elementary rules of grammar and punctuation, or does not care enough about what s/he is writing to put the proper effort into writing it well. Obviously, you don’t want to make any of these impressions on your reader–whether your reader is your professor, or whether s/he is your employer, employee, colleague, or customer. A paper that displays two or more errors in basic high-school composition or grammar per page is ipso facto an unacceptable paper for a 300 level college class and will not receive a passing grade. A list of common grammar and punctuation errors can be found on my website. Please consult it.

ADVICE: One way to write a good paper is to think of it as answering a question. The more interesting the question, and the better your answer to it, the better the paper is likely to be. For example, a paper that answers a very obvious question is not as good as a paper that answers a more challenging, difficult-to-answer question. This way of thinking about your papers also helps you stay focused: Keep in mind what your question is (it can even be the title of the paper) and keep reminding yourself as you write that your job is to answer that question, and, of course, to support that answer with arguments, analysis, or research.

D. Determination of Final Course Grades: Your grade will be based on a 300-point scale. The points you earn on the exams and papers will make up your base grade. The overall grades for the course will be determined by an absolute or straight scale (i.e., no “curving”), with 90-100% constituting the A/A- range; 80-89% the B-/B/B+ range, 70-79% the C-/C/C+ range, and 60-69% the D-/D/D+ range.

E. Attendance/Participation Policy: Regular attendance and participation is crucial to obtaining a good grade in this course. I reserve the right to give pop quizzes if attendance (or preparation) is less than satisfactory. Exams may be made up only if it was, through no fault of your own, physically impossible for you to take the exam at the scheduled time. I will require documentation in such cases.

F. Incompletes: The Incomplete (I) is a temporary grade used in cases when a student is unable to complete course requirements because of illness or other justifiable circumstances. An Incomplete (I) is assigned in cases in which the student has completed satisfactorily the major portion (50%) of the course requirements and has the ability to complete the remaining work without re-registering for the course. Further information on Incomplete (I) can be found in the current Bulletin.

G. Copies of Assignments: It is your responsibility to retain a copy of any materials that you mail or hand in to a center or to your instructor. This includes, but is not limited to, exams, assignments, cases, or reports.

VIII. SUPPORT SERVICES AND OTHER REQUIREMENTS

A. OCLS: CMU offers you a variety of library services through Off-Campus Library Services. Check the OCLS website, <http://ocls.cmich.edu>, for more information and our current hours. Reference Librarians provide help using research tools such as the library catalog and research databases and help you find information related to your research topic. Document Delivery provides the specific books and journal articles you request. You can order up to 50 items per class, per week from Document Delivery. However, only 20 requests will be taken over the phone. Requests over 20 can be faxed or e-mailed.

Reference Librarians contact information: Toll-free phone 1-800-274-3838; Email <oclsref@cmich.edu> ; Ask OCLS request form at <http://ocls.cmich.edu/ask_e-ref.htm>.

Document Delivery contact information: Toll-free phone 1-800-274-3838; Toll-free fax 1-877-329-6257; Email: < oclibsvc@cmich.edu>. Document Delivery request forms at <http://ocls.cmich.edu/ddorequests.htm>.

B. Academic Dishonesty: Written or other work, which a student submits, must be the product of her/his own efforts. Plagiarism, cheating, and other forms of academic dishonesty, including dishonesty involving computer technology, are prohibited. Further information on Academic Dishonesty can be found in the current Bulletin.

I have a zero tolerance policy with regard to cheating or plagiarism in my class, and I am very good at catching it (it’s easier to detect than you think it is).

Remember, it is your responsibility to know, understand, and follow the rules on academic integrity.  "I did not know it was plagiarism" is NOT an excuse; you will be held responsible for any instance of plagiarism that appears in your paper, regardless of whether you knew it was plagiarism, or whether you intended to plagiarize.  To learn more about plagiarism and how to avoid it, check out the University of Indiana Writing Center's fine site (Plagiarism).  To view CMU's policy on Academic Integrity, go to the Academic Senate website (The Academic Senate). If you are unsure about whether something counts as plagiarism, it is your responsibility to ask me.

The absolute minimum penalty for cheating on an exam or plagiarizing on a paper is a zero for that assignment. That, however, is a minimum; in general I am committed to imposing the maximum allowable penalty on those who engage in academic misconduct. Normally, this means that cheaters will fail the entire course.

C. Americans with Disabilities Act: CMU provides individuals with disabilities reasonable accommodations to participate in educational programs, activities, and services. Students with disabilities requiring accommodations to participate in class activities or meet course requirements should contact Ms. Heather Rigby, Coordinator of Metro Detroit Student Services, at (248) 244-1220, Extension 211, as soon as you register for class. Students who need accommodations should present to me a “Notification to Instructor” letter informing me of approved accommodations.

IX. A FINAL NOTE: OPINIONS, OPEN DEBATE, AND ACADEMIC FREEDOM:

Much of the course will involve the transmission of information from me (and the book) to you. However, we will also spend a good deal of time discussing various controversial moral and political issues relating to business–issues about which reasonable people can and do disagree. During such discussions, I will encourage you to express your own personal moral and political opinions, and to present reasons for them. I will also feel free to state my own personal opinions, which may differ from yours. When I do this, I will make it clear that I am merely presenting my own opinion, and that you need not agree with what I am saying. At no time will I ask you to believe a particular position on a controversial issue, though you will often be required to understand such positions. I will never grade your work based on what position you take on a controversial issue. Instead, I will evaluate your work in terms of how well you understand the various positions, and how well you can present arguments for the position you adopt. On controversial issues, there is no bonus for agreeing with me, and no penalty for disagreeing.

CMU, an AA/EO institution, strongly and actively strives to increase diversity within its community.

Required Reading List

Topic 1: Introduction

(1) “The Parable of the Sadhu,” by Bowen McCoy (in the Primis Supplementary Readings [“Primis”]).

(2) Reading from Bill Shaw, Business Ethics (“Shaw”), Chapter One, pages 2-13

Topic 2: Why Good People Do Bad Things

(1) “Why ‘Good’ Managers Make Bad Ethical Choices,” by Saul Gellerman (Primis)

(2) Shaw, Chapter One, pages 21-25.

(3) “Conflicting Responsibilities,” Harvard Business School (Primis)

Topic 3: Ethical Principles

(1) Shaw, Chapter Two, pages 49-67, and 71-73 (you are not required to know the material on the good will on pages 56-57) (i.e., you may skip the following sections in chapter two: “Consequentialist and non-consequentialist theories”, “non-consequentialism in an organizational context,” “Critical inquiries of non-consequentialism,” and “Utilitarianism once more.”)

(2) Handout on “Moral Principles,” by Robert Noggle (I’ll distribute this in class.)

Topic 4: Markets and Morality

(1) Shaw, Chapter 4, pages 122-139 (i.e., you may skip the following sections from chapter 4: “Today’s economic challenges”)

(2) Shaw, Chapter 10, pages 359-363 (i.e., you are to read the sections titled “prices,” “price-fixing,” and “labeling and packaging.”)

(3) Supplements on Legal Aspects of Competition, by Corley, Reed, and Shedd (all in Primis): “Anti-Trust Laws,” “FTC: Unfair Competition,” “Illegal Marketing: Price Fixing,” “Illegal Marketing: Price Discrimination,” and “Other Illegal Marketing Practices.”

Topic 5: Corporate Social Responsibility

(1) Shaw, Chapter 5, pages 156-160 and 165-181

(2) “The Moral Responsibility of the Corporation is to Increase its Profits,” by Milton Friedman (Primis)

(3) “A Stakeholder Theory of the Modern Corporation,” by William Evan and R. Edward Freeman (Primis)

Topic 6: The Rights of Workers

(1) Shaw, Chapter 6, pages 202-217, 219-224 (you may skip the following sections in chapter 6: “Wages,” “Union tactics”)

(2) Shaw, Chapter 7, pages 237-260 (complete)

(3) “Other Employment Issues,” by Corley, Reed, and Shedd (Primis)

(4) Shaw, chapter 9, pages 309-331 (complete)

(5) “Discriminatory Employment Practices,” by Corley, Reed, and Shedd (Primis)

Topic 7: Obligations to the Company

(1) Shaw, Chapter 8, pages 276-298 (complete)

(2) “The Agency Relationship: Creation, Duties, and Termination,” by Barnes, Dworkin, and Richards (Primis) (You may skip the sections on “Enforcement of Liabilities between Principals and Agents,” “Termination of Agent’s Powers,” and “International Agency Agreements.”)

(3) “Securities Exchange Act of 1934,” by Corley, Reed, & Shedd (Primis)

(4) "Whistle Blowing," by Richard DeGeorge (Primis)

(5) "Whistle Blowing: Its Moral Justification," by Gene James (Primis)

Topic 8: Product Safety

(1) Shaw, Chapter 10, pages 346-359

(2) “History: Product Liability,” by Corley, Reed, & Shedd (Primis)

(3) “Basic Theories [of Product Liability],” by Corley, Reed, & Shedd (Primis)

Topic 9: Advertising

(1) Shaw, Chapter 10, pages 363-376

(2) "The Dependence Effect," by John Kenneth Galbraith (Primis)

(3) "The Non‑Sequitur of the 'Dependence Effect,'" by F. A. von Hayek (Primis)

Topic 10: The Environment

(1) Shaw, Chapter 11, pages 389-404.

PHL 318 (Business Ethics--CEL Version): Schedule
Friday Classes meet 6:00 p.m.-10:00 p.m.; Saturday Classes meet 8:00 a.m. -5:00 p.m.
Session (2 hours each)	Topic	Activities
Weekend One
Friday: Session 1	Topic 1: Introduction
Friday: Session 2	Topic 2: Why Good People Do Bad Things	Film: Wall Street
Saturday Morning: Session 1	Topic 2: Why Good People Do Bad Things	Lecture/discussion
Saturday Morning: Session 2	Topic 3: Ethical Principles	Lecture/discussion
Saturday Afternoon: Session 1	Topic 4: Markets and Morality	Lecture/discussion
Saturday Afternoon: Session 2	Topic 4: Markets and Morality	Cases: Ethics and Competition
Weekend Two
Friday: Session 1	Topic 5: Corporate Social Responsibility	Lecture/discussion
Friday: Session 2	Topic 5: Corporate Social Responsibility	Lecture/discussion
Saturday Morning: Session 1	MIDTERM EXAM	Exam
Saturday Morning: Session 2	Topic 6: The Rights of Workers	Lecture; Cases: Workers’ Rights
Saturday Afternoon: Session 1	Topic 6: Rights of Workers	Lecture; Cases: Diversity and Discrimination
Saturday Afternoon Session 2	Topic 7: Obligations to the Company	Lecture; Cases: Agents, Principals & Duties
Weekend Three
Friday: Session 1	Topic 7: Obligations to the Company	Lecture; Cases: Conflict of Interest, Insider Trading
Friday: Session 2	Topic 7: Obligations to the Company	Video Clip: “The Milgram Experiments”; lecture
Saturday Morning: Session 1	Topic 8: Product Safety	Lecture; Video: Rollover
Saturday Morning: Session 2	Topic 9: Advertising	Lecture/discussion
Saturday Afternoon: Session 1	Topic 10: The Environment	Video: Affluenza
Saturday Afternoon: Session 2	Final exam	Exam
The term paper is due at the end of the last class meeting.