BUSINESSETHICS 2 0 1 5Articles | Books & Chapters | Cases Harvard ManageMentor® | Video

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CASES

Cases, slices of business life, focus on actual problems and decisions facing a company. Students are challenged to put themselves in the protagonist’s place and suggest business strategies, tactics, and solutions.

New Cases

Abercrombie & Fitch: Is It Unethical to Be Exclusive?Abercrombie and Fitch (A&F) has experienced enviable success in the teen apparel market. Yet the company has received harsh criticism for not offering plus-size clothing for women. The CEO maintains that A&F’s exclusive image is based on its marketing only to “cool, good-looking people.” This case explores the ethical challenges of employing such marketing practices. TN Ivey Publishing #W14096

Axel Springer and the Quest for the Boundaries of Corporate ResponsibilityAs publisher Axel Springer AG moves into digital news, it considers its responsibility for digital devices and by extension the conflict minerals that are extracted for devices’ production. This case helps students consider where a company’s ethical responsibilities begin and end. TN European School of Management & Technology #ES1431

Can an “Ethical” Bank Support Guns and Fracking? The founder of a new “ethical” bank faces a dilemma as he considers loan approvals from 2 potentially controversial borrowers. With the board members bitterly divided over these issues, he realizes that the bank has no clear guidelines on how to make values-based decisions. Harvard Business Review Case Study #R1404X

GlaxoSmithKline in China (A)Four GlaxoSmithKline employees stand accused of bribing Chinese health care workers to prescribe the company’s drugs. This case allows for a discussion of the economic structure of the Chinese health care system, the “when in Rome” defense of local bribery, and the speed and quality of GlaxoSmithKline’s response to the crisis. TN Harvard Business School #514049

The GSK Scandal: When Questionable Global Practices Met Imperfect Institutions in Emerging MarketsIn traditional markets, pharmaceutical companies are no strangers to wooing hospitals and doctors to favor prescriptions of their drugs. GlaxoSmithKline pushed these questionable

“marketing” practices even further in China, however, and those practices became news in 2013 after the government launched an investigation into the company’s operations. TN University of Hong Kong #HK1049

Hitting the Wall: Nike and International Labor Practices, 2002 (Case Flash Forward)This short Case Flash Forward provides an update on Nike’s international labor practices since 2002, including significant developments, current executives, key readings, and basic financials. It serves as a supplement to “Dollar General Going Private” and “Governance and Sustainability at Nike (A).” Harvard Business School Baker Library #6067

Honeywell and the Great Recession (A)After a drop-off in demand, Honeywell’s management must decide how to enact spending cuts in all parts of the business. Should they employ layoffs or furloughs, enact a hiring freeze, or make cost-saving changes to employee compensation programs? Each of these difficult choices must be handled carefully to sustain the company’s momentum. Harvard Business School #315022

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Is It Ever OK to Break a Promise? When a student is offered a dream job by a Silicon Valley startup, he must decide whether to break his promise and leave the company that sponsored his MBA. This case explores career advancement, conflicts of interest, difficult conversations, personal ethics in business, and talent management. Harvard Business Review Case Study #R1409X

Leader 360: Indra NooyiDelivered entirely online, Leader 360s compile publicly available content prepared by an experienced editor. This Leader 360 provides an overview of Indra Nooyi’s leadership style from different perspectives between 2006 and 2013 and serves as a supplement to the case

“PepsiCo, Profits, and Food: The Belt Tightens.” Harvard Business School Baker Library #6077

LGBT Issues at Exxon Mobil Corporation In September 2013, Exxon Mobil Corporation began offering benefits to spouses of its employees in same-sex marriages. This case covers what led Exxon Mobil to this decision; its previous relationship with the lesbian, gay, bisexual and transgender (LGBT) community; and its standing on LGBT issues relative to its peers’ in the oil and gas sector and the Fortune 500. Harvard Business School #314116

McKinsey & Co.: Protecting its Reputation (A)This case explores how management at a leading consulting firm responded to insider-trading allegations against its former managing partner. Students learn how McKinsey communicated with its constituents about the matter and the actions it took to prevent poor behavior in the future. TN Harvard Business School #415021

Responsibilities to Society: The Capitalist’s Contract, Module NoteSocieties face pressing challenges such as climate change, poverty, public health, and corruption. This module note presents a way of analyzing the implications of those challenges for business leaders, in their capacity as corporate fiduciaries and citizens. The note organizes major contemporary societal challenges into 4 “tragedies of the commons” and helps students consider how they, as future business leaders, will respond. Harvard Business School #115012

Rupert Murdoch and News Corp: The Phone Hacking ScandalOver 50 years, Rupert Murdoch built one of the most successful media conglomerates in the world. Though there had been criticism of his conduct in the past, it was only in the new millennium that allegations of phone hacking and bribery brought the threat of massive legal action against both Murdoch and his companies. TN INSEAD #INS519

These People are FiduciariesThis series of 3 vignettes explores the fiduciary duties of loyalty and care, the corporate opportunity doctrine, and the business judgment rule. Students learn about a classic test of loyalty between an individual partner and the partnership; the care and procedure directors should employ when approving a merger or sale of a company; and a board’s role in making hiring, firing, and severance decisions. Harvard Business School #314067

Through the Eyes of a Whistle-Blower: How Sherry Hunt Spoke Up About Citibank’s Mortgage Fraud As an underwriter in CitiBank’s mortgage group, Sherry Hunt witnessed fraud for years. After failed attempts to report it—to everyone from the boss to the FBI—Hunt wondered what to do next. This case gives students the opportunity to recommend how Hunt should proceed based on their analysis of the stakeholders involved. To aid instructors, the case also includes videos of Hunt explaining what happened. TN Kellogg School of Management #KEL852

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Too Much Information A university student is working on a group project for a business ethics course. A week before the project deadline, one of her fellow group members reveals that he has found part B of the assigned case on the Internet. It is clear to the protagonist that her group cannot use this information, but she is unsure how to handle the situation. TN Ivey Publishing #W14378

Vodafone in Egypt: National Crises and Their Implications for Multinational Corporations (A)During the 2011 Egyptian protest movement, President Hosni Mubarak’s government ordered wireless carriers to suspend service in selected areas. The CEO of Vodafone Egypt knew that his response would have consequences for the parent Vodafone Group and beyond. Students explore the implications of national crises for business, society, and ethics. TN European School of Management & Technology #ES1441

Popular Cases

Barclays and the LIBOR Scandal In 2012, Barclays plc admitted that it had manipulated the London Interbank Offered Rate (LIBOR) interest rate and agreed to pay $450 million in fines to U.K. and U.S. regulators. This case explains why LIBOR was an essential part of the global financial market, the mechanism used to establish the rate, and what Barclays did wrong. TN Harvard Business School #313075

Blood Bananas: Chiquita in ColombiaIn 2004, Chiquita voluntarily revealed that it had been making protection payments to terrorist groups in Colombia. The result of this was a plea deal with the U.S. Justice Department that included a $25 million fine and the distinction of being the first major U.S. company to be convicted of dealing with terrorists. TN Thunderbird School of Global Management #TB0245

Cipla 2011 Dr. Yusuf Hamied, head of the Indian pharmaceutical and generics manufacturing company Cipla, weighs options for how to continue to support the global fight against HIV/AIDS while positioning his company for growth in a changing regulatory landscape. Harvard Business School #511050

Following Lance Armstrong: Excellence CorruptedAfter years of vigorous denials, in 2013 Lance Armstrong admitted that he “doped” in each of his record 7 consecutive Tour de France victories. This confirmed the findings of the U.S. Anti-Doping Agency that he had orchestrated “a massive team doping scheme, more extensive than any previously revealed in professional sports history.” TN Harvard Business School #314015

An Intern’s Dilemma A Harvard Business School student is asked by his employer to misrepresent himself during the course of his summer internship in order to obtain data from industry competitors. Harvard Business School #611041

Kitchen Best: Ethics When Doing Cross-Boundary Business in Southern China Henry Chan, the new CEO of a Hong Kong-based appliance company, has ambitious plans for the business. However, several instances of misconduct and unethical behavior reveal that the business lacks internal control. What type of internal control mechanisms should Chan put in place to ensure future success? TN University of Hong Kong #HKU948

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PepsiCo, Profits, and Food: The Belt TightensThis case describes the issues facing Indra Nooyi after 5 years of PepsiCo’s new and controversial nutrition strategy. Students examine the challenges that leaders face when they take on important social and economic responsibilities and must think and act in strategic, financial, pragmatic, and political terms. TN Harvard Business School #314055

à Find more cases at hbsp.harvard.edu

BRIEF CASES

Rigorous and compact, Brief Cases from Harvard Business School present realistic management challenges for students to discuss. Audio versions are available for select Brief Cases to aid in student preparation.

WeaveTech: High Performance Change VP of Human Resources Frank Jennings must recommend how to reduce WeaveTech’s management workforce by 20%. The company has a new CEO, a new strategy, a changing market, and a deeply embedded high-performance culture. The case explores the HR manager’s ethical responsibilities during a period of non-crisis-driven change. TN #914553 L

à Find more brief cases at hbsp.harvard.edu/briefcases

MULTIMEDIA CASES

Now available online, multimedia cases put students in the center of business dilemmas by bringing concepts to life with animated charts, audio, and video segments. Premium Educators can see a Free Trial of each case online.

Fighting Corruption at SiemensIn 2006 German prosecutors raided offices and homes of Siemens AG staff as part of an ongoing investigation into bribery, and the subsequent investigations spanned operations in Asia, Africa, Europe, the Middle East, and the Americas. This multimedia case takes a look at how one of the world’s largest companies faced corruption head-on. TN Harvard Business School #112702

The Future of Financial ReportingThis case addresses the SEC’s work on improvements to financial reporting. Students review topical audio and video from various sources, including SEC footage and interviews with others involved. Students will be required to make actionable suggestions on the future of fair-value accounting and principles-based accounting. TN Harvard Business School #110701

à Find more multimedia cases at hbsp.harvard.edu/elearning

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ARTICLES

Articles from Harvard Business Review and other renowned journals provide up-to-the-minute ideas from the best business thinkers.

New Articles

Fostering an Ethical Organization from the Bottom Up and the Outside InEfforts to fight fraud often fail because a systematic approach is being used for a problem that is irregular and complex. Drawing on research from the field of behavioral ethics, the authors of this article propose a new approach that emphasizes informal practices that work from the “bottom up” and the “outside in.” Business Horizons #BH623

Game of Finance: The South Sea Bubble It was arguably the first financial scandal to play out in the public eye—and even Jonathan Swift and Daniel Defoe got behind it. Harvard Business Review #F1411Z

How a Social Logic Can Transform Your BusinessThis article outlines crucial ways in which social entrepreneurs differ from their traditional counterparts, beginning with the important distinction between “value creation” and

“value capture.” The author calls for mainstream economic theories and business models to acknowledge the valid place of others-regard, and not just self-interest, as a key driver of economic behavior. IESE-Insight Magazine #IIR125

The Paradox of Pharmaceutical CSR: The Sincerity Nexus This article examines the typical corporate social responsibility efforts of pharmaceutical companies and proposes a stronger model of corporate ethics for this and other industries. Business Horizons #BH590

Risky Business: How Social Psychology Can Help Improve Corporate Risk Management Drawing on research in management theory, risk analysis, and the social sciences, this article examines how diversity of thought in corporate governance can lead to successful risk management. The author applies social and cultural psychology to risk management, offering a critique of current practices with evidence from the 2007–2008 financial crisis. Business Horizons #BH624

The Truth about CSR There is increasing pressure to demand that every corporate social responsibility (CSR) initiative deliver business results. The authors argue that this is asking too much of CSR and distracts from its main goal: to align a firm’s social and environmental activities with its business purpose and values. Harvard Business Review #R1501B

Popular Articles

Developing and Sustaining an Ethical Corporate Culture: The Core Elements Of all the issues that boards of directors, executives, and managers face, unethical corporate activity is one of the most significant in terms of its potential negative impact—and also one of the most difficult to properly address. This article discusses the 3 key elements necessary to develop and maintain an ethical corporate culture. Business Horizons #BH506

The Drivers of GreenwashingThe skyrocketing incidence of greenwashing—misleading consumers about the environmental performance or benefits of a product or service—can have profoundly negative effects on consumer and investor confidence in green products. This article examines the drivers of greenwashing and offers recommendations for managers, policy makers, and NGOs to decrease its prevalence. California Management Review #CMR494

Ethical BreakdownsDespite large investments of time and money in compliance programs, unethical behavior in business remains widespread. The reason is that cognitive biases and organizational systems blind managers to unethical behavior. The authors offer 5 reasons for this blindness and suggest what to do about them. Harvard Business Review #R1104C

A Global Leader’s Guide to Managing Business Conduct Meeting core standards of corporate behavior requires new approaches to managing business conduct—especially for multinationals, in which different cultures follow different rules. This article offers guidelines for global organizations to follow when navigating their complex ethical landscapes. Harvard Business Review #W1109A

Greased Palms, Giant Headaches Bribery is pervasive in emerging markets, in part because of growth imperatives from headquarters, and companies can rack up millions in fines. The authors draw on extensive research to suggest steps managers can take to keep employees on the right side of the law. Harvard Business Review #F1209A

A Question of Principles One of the greatest fallouts of the recent economic crisis was a loss of trust, both between people and between companies and institutions. This article examines the foundations of trust, its value, and the methods used to build and maintain it. IESE-Insight Magazine #IIR013

When the Crowd Fights Corruption Corruption is one of the greatest impediments to conducting business in Russia, as it is in many emerging markets. But recent citizen-driven initiatives are raising public awareness about the problem like never before. This article focuses on RosPil, a web-based effort to expose corruption in Russia, and the issues that this and similar efforts raise for businesses. Harvard Business Review #R1301K

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BOOKS & CHAPTERS

Many academic titles from Harvard Business Review Press are now available as eBooks. Each eBook title is available as a PDF and comes with a full-text Educator Copy available to registered Premium Educators on the HBP for Educators web site.

Changing Your Company from the Inside Out: A Guide for Social IntrapreneursThis book is a road map for intrapreneurs seeking to reshape their companies into drivers of change. Drawing on lessons from social movements and successful intrapreneurs, the authors offer tools for creating positive social change within organizations. Available as an eBook. Harvard Business Review Press #11057

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Conscious Capitalism: Liberating the Heroic Spirit of Business In this book, Whole Foods Market cofounder John Mackey and Conscious Capitalism, Inc., cofounder Raj Sisodia argue for the inherent good of both business and capitalism. Featuring some of today’s best-known companies, they illustrate how these 2 forces can—and do—work most powerfully to create value for all stakeholders. Available as an eBook. Harvard Business Review Press #10845

The Good Struggle: Responsible Leadership in an Unforgiving World This book offers valuable, practical answers to the question of how to lead successfully and responsibly in our uncertain, high-pressure, turbulent world. Author Joseph Badaracco examines the need for leaders to create “the good struggle” in order to meet their goals at work and in life. Available as an eBook. Harvard Business Review Press #11540

Managing for Ethical-Organizational Integrity Business Expert Press These chapters provide a practical overview of business ethics for managers and students. They include:

� Appendix Material #BEP114

� Doing What Is Good #BEP111

� Ethics Programs #BEP113

� Rights, Duties, and Other Obligations #BEP112

What Happened to Goldman Sachs: An Insider’s Story of Organizational Drift and Its Unintended Consequences Author Steven G. Mandis examines the slow evolution and “organizational drift” at Goldman Sachs—addressing why and how the firm changed from an ethical standard to a legal one as it grew to be a leading global corporation. This insider’s history offers invaluable perspectives to leaders interested in understanding and managing organizational drift. Available as an eBook. Harvard Business Review Press #11798

à Find more books and chapters at hbsp.harvard.edu/ebooks

CASE STARTUP KIT

The Case Startup Kit recommends cases ideal for teaching as a “first case” for aspiring case teachers, with cases selected for their brevity, ease of use, and teachability. Each case comes with a Teaching Note. Cases for Business Ethics include:

� Against the Grain: Jim Teague in Tanzania (A) #112069

� Chris and Alison Weston (A) #612019

� IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A) #906414

� A Letter from Prison #110045

� Martha McCaskey #403114

� The Redgrove Axial Workshop #409034

� Two Tough Calls (A) #306027

à Find more Case Startup Kit cases at hbsp.harvard.edu/casestartupkit

HARVARD MANAGEMENTOR®

Delivered entirely online, Harvard ManageMentor® is the leading business reference from business experts, featuring 44 self-paced modules that address the full spectrum of management issues. Many modules are also available in Spanish, Portuguese, Mandarin and French. Modules in Business Ethics include:

� Ethics at Work #9018

à Find more Harvard ManageMentor® modules at hbsp.harvard.edu/hmm

VIDEO SHORTS

These free, short videos are all under 10 minutes long and illustrate a case’s central learning objective. The streaming video is available to registered Premium Educators at hbsp.harvard.edu. Cases with Video Shorts include:

� Burroughs Wellcome and AZT (A) #792004 � Reebok International Ltd. #589027 � Suzuki Samurai #589028

à Find more cases with Video Shorts at hbsp.harvard.edu/videoshorts

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Case Analysis CoachIDEAL FOR STUDENTS NEW TO CASE LEARNING

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The Case Analysis Coach is a self-paced tutorial that offers a concise introduction to the key concepts required for the analysis of business case studies. Delivered entirely online, the tutorial offers a framework that will prepare students for situations including formal presentations, written reports, “cold calls” during classroom discussion, and final exams.

The tutorial requires students to interpret both qualitative and quantitative data and develop short- and long-term action recommendations. It also includes a Case Analysis Worksheet that students can use repeatedly to analyze actual cases assigned for coursework.

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