Title: INTEGRATING ETHICS IN THE BUSINESS CLASSROOM

ETHICS IN MEDIA
Andra Gumbus
Assistant Professor Mana!ement
"o#n $% &e'(# Co''e!e of Business
Sa(red Heart Uni)ersit*
!umbusa+sa(red#eart%edu
Des(ri,tion-
Current media attention to the topic of business ethics has resulted in increased emphasis
on the teaching of business ethics in colleges and universities around the world.
Educational activities sensitize students to ethical issues in business by recognizing there
is an ethical dilemma, and integrating this knowledge into practice. In this module a
process of ethical analysis is provided to guide discussion and generate possible solutions
to current ethical business problems. This ethics module outlines teaching
methodologies that can be used to teach a variety of business ethics topics. The
teaching methods are:
!. Ethical "ecision #aking $rameworks
%. Case &tudy 'nalysis
(. &takeholder 'nalysis
). Conflict of Interest 'nalysis
. Cost *enefit 'nalysis
' focus of the ethics module is integrating ethics utilizing films, animation, and
commercials to generate dialog and discussion of ethical topics. $ilms are a rich resource
for learning management theories, concepts and issues that are readily available on
videotape and "+" representing over a century of filmmaking. ,Champou-, %..!/ $ilms
offer a visualization of concepts that may be abstract in te-tbooks or lectures and students
respond favorably to the link between film scenes and abstract theory and concepts. '
carefully selected film clip can dramatically reinforce theory and concepts in the
classroom. *enefits of using film to teach ethics have been articulated by 0iacalone and
1uriewicz as: &tudents en2oy and are acclimated to movies, films provide a systemic
conte-t for ethical decisions, films have depth and richness not found in cases, films
develop critical thinking skills, films link decisions and decision3makers, and finally they
make the connection between theoretical and practical ethical decision making. The
visual nature of short film clips allows for stopping and starting the clip and staggering
discussion and dialog that is critical to teaching ethics.
Et#i(s Modu'e Bod*
I ETHICAL DECISION MA.ING $RAME&OR.S
+arious approaches can be used to teach ethics utilizing film clips in a way that analyzes
the situation from an ethical perspective. These include ethical decision3making
frameworks, case study analysis, stakeholder analysis, conflict of interest analysis, and
cost4benefit analysis. Each of these methods is briefly described below with e-amples of
supporting film clips that illustrate the ethical decision making approach. Ethical
decision3making frameworks include: 5tilitarianism, 6rinciple of Individual 7ights,
6rinciple of "istributive 1ustice, and +irtue Ethics.
5tilitarianism is the moral doctrine that we should always act to produce the greatest
good for the greatest number, and that our action should produce the greatest possible
balance of good over bad for everyone affected by our action. 'n action is right or wrong
depending on its conse8uences. The ends 2ustify the means and motivations are not
considered. *y utilitarian standards, an individual9s decision or organization9s policy is
good if it promotes the general welfare more than any other alternative. 5tilitarianism
encourages managers to focus on the results of actions or policies. #anagers may still
8uestion whether actions are wrong even when they produce some good. 'ccording to
the utilitarian doctrine it is acceptable to sacrifice someone9s happiness in order to serve
the greater good.
The 6rinciple of Individual 7ights states that you should never take an action that
infringes on another9s basic rights. ' right is an entitlement to act or have others act
according to rights derived from a legal system, rights as human beings, or moral rights.
#oral rights derive from relationships or roles we are in ,e.g., students have the right to
be graded fairly/. :uman rights are moral rights that are universal and natural ,as
opposed to legal rights/. These are rights to life, free speech and according to some,
rights to religious freedom, medical care, education, e8ual 2ob opportunity and
comparable pay. Individual freedom, welfare, safety, health and the pursuit of happiness
are some of the core values of moral rights. 'n action is right or wrong depending on
whether the rights of others are aided or enhanced, or at least not obstructed.
The 6rinciple of "istributive 1ustice states that you should not take an action that harms
the least fortunate among us. 'n action is right or wrong depending on whether the harms
and benefits are distributed in a fair and e8uitable way. The focus is on the distribution of
opportunities, hardships, punishments and rewards. The principle of 2ustice protects the
poor, the unemployed and others less fortunate. In the 2ustice perspective, people should
be treated e8ually, and all people have e8ual opportunity in society. There are several
types of 2ustice: compensatory 2ustice, retributive 2ustice, distributive 2ustice and
procedural 2ustice.
+irtue Ethics holds that we are concerned with personal virtue, and should not do
anything that is dishonest, untruthful or lacks integrity. ;ne way of e-pressing this is
through <the golden rule= or by the <T+ or front page test= > would you want this action
reported on T+ or in the company newsletter? 6ersonal virtue also responds to 8uestions
such as: can you look yourself in the mirror after committing the act, and can you sleep at
night? These four frameworks can be used to analyze an ethical situation and 2ustify the
decision made. $ilms that can be used to illustrate these frameworks are *oiler 7oom and
0lengarry 0len 7oss. &ummaries of clips of these two films and corresponding guided
8uestions are below.
Boi'er Room
1.T. #arlin company is in the business of selling stock to selected customers in order to
swindle money from innocent victims. &ales training consists of unethical selling
practices to '*C > always be closing, and never sell to women. 'n investor is fast talked
into using a home down payment to buy stock and will loose it all unless &eth gets his
boss to do one right thing before the $*I raids the company. &eth had learned to <lie and
cheat people out of their money,= but redeems himself by returning the money to :arry.
T;6IC: Ethical "ecision #aking $rameworks
@5E&TI;A: :ow does this film illustrate the four ethical decision making frameworks:
5tilitarianism, Individual 7ights, "istributive 1ustice, and +irtue Ethics?
T;6IC: +irtue Ethics
@5E&TI;A: :ow does *en Bounger practice ethical management? "iscuss &eth9s
business decision as an e-ample of virtue ethics.
T;6IC: Concept of a 7ight
@5E&TI;A: "oes 1.T. #arlin have the right to sell stock to < selected= customers in the
way it sees fit? "oes :arry have the right to refuse to buy?
G'en!arr* G'en Ross
5nethical selling practices in a real estate office that belittles and demeans the sales force
into action. The meaning of money and high salaries versus other values is e-plored.
"oes threatening employees with termination get results? Is it better to drive a *#C
than a :undai? If you don9t like your 2ob should you leave it? :ow do ethical sales
people follow the selling rules of: 'I"' 'ttention Interest "ecision and 'ction?
T;6IC: "istributive 2ustice, retributive 2ustice, compensatory 2ustice
@5E&TI;A: "oes a salary of DEF.,... fairly compensate 1ames $oley? Chat salary
does 1ack Gemmon deserve? :ow do these ( aspects of 2ustice ,distributive, retributive
and compensatory/ according to 'ristotle apply in the film?
T;6IC: $air e8uality of opportunity
@5E&TI;A: :ow is 7awl9s principle of e8ual opportunity addressed in the film? In your
opinion, are salesmen and women born and not made?
II CASE STUD/ ANAL/SIS
The case study approach involves a series of steps that resemble the problem solving
approach in rational decision making in order to analyze an ethical dilemma. The steps in
case analysis are below.
IDENTI$ICATION- Chat is the primary conceptual topic?
THEOR/: "efine and point out models and theoretical frameworks. Chat relevant
theories apply to the case? Identify and assess relationships.
PROBLEM ANAL/SIS: 6roblem analysis goes beyond the application of theory to
analyzing and proposing a solution.
DATA COLLECTION AND INTERPRETATION: &ort out data that will be useful in
determining the state of the situation and issues. &ort out irrelevant from relevant data to
develop a diagnosis of the current situation. Identify relevant facts.
CRITICAL ISSUES- Identify critical issues and problems. ;ne way to look for
problems is to identify factors that threaten the survival, goals or performance of the
organization. Think in terms of cause and effect but do not confuse the symptoms with
the problem. "ig beneath the surface and determine if something more basic is generating
the problem.
THEOR/ APPLICATION- 0o back to the theories you referenced to see if the theories
can be used to understand the problem. 're the relationships clearer when viewed in light
of the models? :ow can knowledge of the theory assist you in generating possible
solutions?
GENERATING SOLUTIONS: *rainstorm a list of possible solutions. "o not evaluate
the feasibility or rationality of each, simply write down a list. *e creative and do not limit
yourself to ideas presented in the case.
SELECT BEST SOLUTION- 'fter generating a list of wide3ranging possibilities,
review your problem statement and identify alternatives that have a direct link with
solving the problem. Combine similar suggestions. 'nalyze the pros and cons of each
course of action by doing a logical assessment: 're there cost constraints? Chat about
timeliness? 7esource availability?
Constituents to consider? $uture shock waves?
COURSE O$ ACTION 0 PLAN $OR IMPLEMENTATION- &elect the best course
of action based on pros and cons and your logical assessment of each alternative. Take
risks, be creative and imaginative in developing your answers. #any solutions die
because no one considered possible roadblocks to implementation. Bour implementation
plan should review steps, people involved, and time frames. ,'dapted from: #anaging
;rganizations and 6eople: Cases in #anagement, ;* and :7#, *uller, 6. and &chuler,
7. %.../ The above case study approach can be used with articles from newspapers,
2ournals, case studies, video clips and current media e-amples of ethical dilemmas. $ilms
with good e-amples to use for case study analysis are The Insider and #ore that are
summarized below.
T#e Insider
Tobacco companies are in the nicotine delivery business in order to provide a fi- to
addicted smokers. They enhance the product with nicotine boosters spiking with
ammonia to enhance the need and addiction to the drug. 're health issues consciously
ignored by the industry? Is <poor communication skills= a valid reason for terminating
the whistleblower?
T;6IC: Case &tudy 'nalysis #ethodology
@5E&TI;A: 'pply the case study analysis format to the movie clip. :ow does The
Insider demonstrate the steps of case analysis?
T;6IC: Chistle blowing
@5E&TI;A: Is nicotine boosting an ethical business practice of tobacco companies? Is
blowing the whistle 2ustified in this case? Is it ever 2ustified? Cere there alternative
courses of action?
T;6IC: 5n2ust dismissal
@5E&TI;A: "oes being fired for <poor communication skills= constitute un2ust
termination without cause?
More
'n elderly inventor can make the best invention yet and use his creative spark to find
happiness in his life work. Childhood dreams and aspirations can be lost in the day3to3
day grind of factory work. 7epetitive work produces boredom, feeling of oppression,
frustration and stress. Bet, the creative spark lives inside and wonderful creative ideas
produce <bliss= as dreams are fulfilled and the greatest inventor ever succeeds with a new
product. Chat happens when the CE; becomes focused on money and becomes 2ust
another <empty suit= at the top of the company? Everyone has a message. "o your best
everyday and don9t waste your life in unhappy work or doing something that bores you.
*e persistent, have new ideas and with inspiration, magic can happen.
T;6IC: &ummary and reflection on an ethical business career
@5E&TI;A: Chat is the message of <#ore?= :ow can you apply this message to the
ethical decisions you will make in your careers?

III STA.EHOLDER ANAL/SIS
The stakeholder theory approach to ethical dilemmas argues that corporations are
operated for reasons beyond the economic capitalism rationale of bottom line profits.
5sing this model, companies operate for all who have a stake in the business,
including both internal and e-ternal parties. These include employees, customers,
supplies, the board, the community and the industry. #anagers should take account
of the relationship of various groups to the business since all have a stake in the
success of the enterprise. #otives beyond the purely economic are considered, and
much of the success is based on managing competing stakeholders. $rom an ethical
standpoint stakeholder analysis can be used as a normative approach of how
managers recognize the interests of varying groups. This approach has a caveat in
that difficult trade3offs must often be made among competing and conflicting
stakeholders with the recognition that decisions that benefit one group may have the
opposite effect on another group. The stakeholder approach involves the following
8uestions:
Cho are the stakeholders?
Chat is responsibility of corporation to each group of stakeholders?
Cho are hidden stakeholders?
Chat are potential conflicts among groups?
:ow do you manage trade3offs that result from corporate decisions?
$ilm clips that can be used to guide discussion of stakeholder analysis are 7ainmaker,
7oger and #e and T+ Aation. $ilm clips to be used in the discussion of the stakeholder
8uestions above are summarized below.
Rainma1er
"anny "e+ito is a paralawyer with no scruples. :e is an ambulance chaser who preys on
in2ured victims from car crashes in order to get their money. :e encourages out of court
settlements rather than e-posing the criminals. This is something he never learned in <the
big fat ethics books in law school.=
T;6IC: &takeholder analysis
@5E&TI;A: :ow do 7ainmaker, 7oger and #e and4or T+ Aation illustrate stakeholder
analysis? 7espond to the above 8uestions using content from a film clip.
T;6IC: Ethics, Economics and the #arket &ystem
@5E&TI;A: Is "e+ito 2ustified in his actions based on the concept of a free market
system?
T;6IC: Ethics and the Gaw
@5E&TI;A: Chy is the law not enough when it comes to business ethics? :ow does the
film clip 2ustify this statement?
Ro!er and Me
#ichael #oore e-plores the devastating effects of layoffs and a 0# plant closing on
$lint #ichigan. 0# chairman 7oger &mith delivers the annual Christmas message to
employees filled with hope and 2oy while laid off employees are evicted and suffer
physically and emotionally from the loss of 2obs and income. The broader social issues of
crime and reputation of $lint as the worst place to live are discussed.

T;6IC: Ethics and corporations
@5E&TI;A: 're layoffs 2ustified? "ebate the 0# position as personified by 7oger
&mith and the employee impact and economic devastation of 2ob loss.
T;6IC: &ocial responsibility
@5E&TI;A: Chat are the larger social issues , crime / resulting from the closing of the
0# plant in $lint?
T2 Nation
#ichael #oore e-poses 5& companies doing business in #e-ico in the free trade era
under A'$T'. ;ver ..,... #e-icans work for 5& companies getting F cents per hour
, D ! a day versus D!.. in ABC for camera crew work /. Ao environmental fanatics to
imposer ;&:' safety rules attract 5& based companies. Is outsourcing a good or bad
thing? Chat results in the lost 2obs and gained economic wealth abroad? Chy can9t we
compete in the 5&?
T;6IC: ;utsourcing 2obs to #e-ico under A'$T'
@5E&TI;A: Chat wage and working conditions are acceptable in third world countries?
&hould they differ from ours in the 5&?
@5E&TI;A: Chat are the pros and cons of outsourcing or moving 5& 2obs offshore?
're foreign workers e-ploited by 5& companies?

I2 CON$LICT O$ INTEREST ANAL/SIS
'n ethical dilemma can be analyzed from the perspective of the roles of the business
professionals and potential conflict of interest. $or e-ample, in the Enron debacle,
professional groups can be e-amined such as the board of directors and senior e-ecutives
to better understand how they lived up to their professional roles. In this e-ample some of
these professional roles include: The board of directors, e-ecutive leadership, and
managementH 'ccountants 4 internal and e-ternal auditorsH &ell side analysts and
brokerage firmsH Investment bankers , role of lenders, underwriters, merger advisors,
partnerships/H Gawyers 4 internal and e-ternal counselH Consultants and credit ratersH
6rofessional associations such as 'IC6'. 5sing this same e-ample a conflict of interest
approach can easily be used in the Enron case to analyze the multiple conflicts that
business professionals e-perienced. &ome e-amples of conflict of interest are
professionals that were compliant to corporate paymasters and unconcerned about other
constituencies. Compromised independence of professionals such as accountants and
analysts is another e-ample of conflict of interest. Enron management interests were in
conflict with independent advice and duty to clients. Consulting and auditing
responsibility was in conflict with other professional roles at Enron. The consulting
relationship was in conflict with the role of management e-pert. 'nd finally, financial
services conflict over roles as investment bankers and research analysts. $ilms that can be
used in the business classroom to study conflict of interest include Call &treet, Changing
Ganes and various T75T: commercials which are summarized below.
&a'' Street
#ichael "ouglas is given insider information about an upcoming $'' announcement
that will make *lue &tar 'irlines stockholders wealthy. Information is a valuable
commodity, and he buys %.,... shares and sells the company after making a sizable
retirement package. :e has no concern for the I... employees of the airline. :e states
that <greed is good.=
T;6IC: Conflict of Interest 'nalysis
@5E&TI;A: :ow do Call &treet, Changing Ganes and4or T75T: commercials
demonstrate the conflict of interest method of analyzing ethical issues?
T;6IC: Insider Trading
@5E&TI;A: :ow much money is enough? :ow much money do you need? 'nalyze
#ichael "ouglas speech: <0reed is good. 0reed is right. 0reed works. It captures the
essence of the revolutionary spirit.=
T;6IC: Conflict of interest
@5E&TI;A: Is the golden parachute "ouglas created as head of *lue &tar airlines a
conflict of interest?
C#an!in! Lanes
'n important file is lost and a law firm decides how to replace the file by forging
signatures and producing a fraudulent file. Choices are e-plored, business behavior
e-amined in analyzing whether the ends 2ustify the means.
T;6IC: Corporate ethics codes
@5E&TI;A: 'nalyze the 8uote < Bou gotta learn to walk on a tight rope in the world of
business.= Is this true? Chat would you have done to <replace= the file?
@5E&TI;A: In corporate life is there another standard to live by besides, < at the end of
the day I do more good than harm.=
Trut# Commer(ia's
T;6IC: Ethical issues in advertising
@5E&TI;A: Chat differentiates the T75T: commercials? :ow do they address
Jennedy9s *ill of 7ights for consumers?
@5E&TI;A: <Caveat emptor is the rule of the marketplace.= "iscuss this principle as it
applies to the sale of cigarettes versus the disclosure of information.
2 COST BENE$IT ANAL/SIS
Cost benefit analysis places a monetary value on the costs and benefits of a course of
action. 6roponents argue that an advantage of cost benefit is that it makes values e-plicit,
and it is not intended as the sole basis for decision making. Efficiency in the use of
resources cannot be the only decision criteria when evaluating alternatives from a legal
and ethical perspective. 0oods are assigned a value for the purpose of comparison,
however, 8uestions arise regarding the ability to place a value on human life. 6roblems
with a cost benefit approach are the narrow focus on economic efficiency in allocation of
resources, the fact that it is difficult to determine the rights of consumers in product
safety or environmental protection and the problems of assigning a monetary value to
intangible commodities like 8uality of life and life itself. The 8uestion arises, can or
should all things be assigned a monetary value? The spill over effects, direct and indirect
costs and conse8uences for the future are other topics to consider when using a cost
benefit analysis. $ilms summarized below that can help to illustrate the cost benefit
approach to ethical analysis are Civil 'ction and Erin *rockovich.
Ci)i' A(tion
' law firm takes an illegal dumping case after pondering the value of life. Cater from
wells was contaminated with a carcinogen that has killed ) children. ' witness saw
barrels dumped and buried in the ground resulting in neighbors sick and dying from
leukemia. The company was hiding to-ic solvents and illegally dumping, yet the witness
does <not want to be a rat= and blow the whistle.
T;6IC: Cost *enefit 'nalysis
@5E&TI;A: Chat is the value of life? Is a child worth less than a white male
professional under ). with high earning power?
@5E&TI;A: :ow do Civil 'ction and Erin *rockovich illustrate cost benefit analysis as
an ethical approach to decision making?
T;6IC: 5tilitarianism
@5E&TI;A: :ow do to-ic waste dumping and environmental issues relate to act3
utilitarianism and rule3utilitarianism?
@5E&TI;A: :ow does the film clip address the ) theses of the utilitarian principle:
Conse8uentialism, :edonism, #a-imalism,5niversalism
Erin Bro(1o)i(#
"ocuments are destroyed at the :inckley plant that verify contaminated water resulting
in kidney tumors, and health hazards for the population. Erin blows the whistle and
obtains signatures on a petition to e-pose the company for poisoning the water.
T;6IC: ;ccupational :ealth and &afety
@5E&TI;A: Chat responsibility does the :inckley plant have to provide a hazard free
workplace?
T;6IC: &ocial responsibility
@5E&TI;A: Chat is the company responsibility for natural resources , water, land / for
future generations?
T;6IC: Chistle blowing
@5E&TI;A: "o you agree with 1ulia 7oberts actions?

Su!!estions for C'assroom A(ti)ities
$ilm is an effective methodology to teach business ethics that engages the student
visually and allows analysis of ethical constructs and frameworks. The above film clips
were incorporated in a "+" entitled <Ethics in #edia= produced by the author and the
media studies department at &acred :eart 5niversity. $ilms were selected to demonstrate
ethical concepts with corresponding 8uestions posed to students after showing the film to
generate discussion and debate. 'n overview of the film provides students with a
common knowledge base in case they are unfamiliar with the content. $ilm clips can be
used as a part of each class that corresponds to the topic or chapter assigned for the class
or multiple films can be used in one class. Ethics in #edia film clips plus discussion can
take anywhere from ! minutes to F minutes of class time. The only e8uipment needed
is a "+" or videotape player and monitor. 'ny number of participants can be a part of
the class, however, larger classes re8uire more discussion time. The instructor may use
smaller teams to discuss the various decision making approaches and have teams report
to the larger group. &tudents do not need any preparation prior to class, although many
students have seen recent films in their entirety and can summarize the film for those in
the class that may not be familiar with it. The instructor preparation includes viewing the
film clip, preparing discussion 8uestions and linking the theory and decision making
approach to that used in their respective te-t book. ' typical class design utilizing film
might include presenting ethical theory or content in a brief lecture, summarizing the
film, alerting students to the 8uestions to consider while watching the film clip, showing
the clip, and posing .8uestions for guided discussion of the ethical decision making
approach.
$urt#er Resear(#
'lsop, 7onald. , &ept !F, %..( /. <The top business schools , a special report / 7ight and
wrong: can business schools teach students to be virtuous? In the wake of all the
corporate scandals, they have no choice but to try=, The Wall Street Journal. 7..E
*artlett, "ean , %..( /. <#anagement and business ethics: ' criti8ue and integration of
ethical decision3making models=, British Journal of Management. !), %%(3%(
Champou-, 1oseph E. 5sing $ilm to +isualize 6rinciples and 6ractices Edition !.
6ublished by &outh3Cestern 6ublishing. %..!.
Etzioni, '. ,'ug ), %..%/. <Chen It Comes to Ethics, *3&chools 0et an $= The
Washington Post. *..)
$arnsworth, 1.7., and Jleiner, *.:. ,%..(/. <Trends in ethics education at 5.&. colleges
and universities=. Management Research News. %I,%3)/. !(.3
0iacalone, 7.'. and 1uriewicz, C.G. , %..! / < Gights, camera, action: teaching ethical
decision making through the cinematic e-perience. Teaching Business Ethics , +ol
issue !, FE 3 KF
Jimm, &tephen, 1. <:ow ethics should be taught=, Across the Board, )..! 1an $eb, %..(,
I > II.
#erritt, 1. ,1an %F, %..(/. <Chy ethics is also *3&chool business=, Business Week. !..
7othenburg, Eric. , %..( /. <Incorporating business ethics into introductory accounting
courses.= The PA Journal. F(,!./. I 3
&ims, 7.7. , %..) / < *usiness ethics teaching: 5sing conversational learning to build an
effective classroom learning environment. Journal of Business Ethics, +ol )E issue %,
%.! 3 %%!
&tablein, 7. ,%..(/. <Teaching business ethics or teaching business ethically?=
Management ommunication !uarterl", !F,!/. !!3
+erschoor, Curtis. , %..( / <Is ethics education of future business leaders ade8uate?=
Strategic #inance. K,%/ %.
Internet 7esources
Corporate 0overnance: www.corpgov.net
Technology and &ociety www.tecsoc.org
:ow ethical are you? www.tolerance.org4hiddenLbias
Corporate crime www.corporatecrimereporter.com
*usiness news www.businessweek.com and www.fortune.com4fortune4
$amily friendly workplace www.familiesandwork.org
Comen and workplace www.catalystwomen.org
$ederal trade Commission www.ftc.gov