CH-5-7 Ethics as Organizational Culture – Managing Business Ethics: Straight Talk about How to Do It Right : Chapter Notes

This Document Contains Chapters 5 to 7 Chapter 5 Ethics as Organizational Culture Contents: (Please note: the Instructor Guide for every chapter will follow this structure.) 1. Chapter Outline 2. Teaching Notes 3. In-Class Exercises 4. Homework Assignments 5. Additional Resources Chapter Outline I Introduction II Organizational Ethics as Culture A. What is Culture? B. Strong vs. Weak Cultures C. How Culture Influences Behavior: Socialization and Internalization III Ethical Culture: A Multisystem Framework A. Alignment of Ethical Culture Systems IV Ethical Leadership A. Executive Leaders Create Culture B. Leaders Maintain or Change Organizational Culture V Other Formal Cultural Systems A. Selection Systems B. Values and Mission Statements C. Policies and Codes D. Orientation and Training Programs E. Performance Management Systems F. Organizational Authority Structure G. Decision-Making Processes VI Informal Cultural Systems A. Role Models and Heroes B. Norms: “The Way We Do Things Around Here” C. Rituals D. Myths and Stories E. Language VI Organizational Climates: Fairness, Benevolence, Self-Interest, Principles VII Developing and Changing the Ethical Culture A. How an Ethical Culture Can Become an Unethical Culture B. Becoming a More Ethical Culture VIII A Cultural Approach to Changing Organizational Ethics A. Audit of the Ethical Culture B. A Cultural Systems View C. A Long-Term View D. Assumptions about People E. Diagnosis: The Ethical Culture Audit F. Ethical Culture Change Intervention IX The Ethics of Managing Organizational Ethics X Conclusion XI Discussion Questions XII Cases (Texaco, TAP Pharmaceuticals, Synthes) Teaching Notes - Discussion Questions Note to Instructor: The discussion questions in this chapter all assume that students have had significant work experience to draw upon in conducting their own “ethical culture audit.” If this isn't the case, you have several options. One approach that has worked well for us is to divide students into groups in which at least some of the members have significant work experience. The students talk about their experiences and choose an organization to focus on. The individual student who worked for that organization becomes the information source and "teacher" for the other students who ask questions. The groups can then be asked to present their findings to the rest of the class. If you are teaching a group with little or no work experience (e.g., undergraduates), you can assign them to interview someone they know (parents, neighbors, relatives, coaches). This works especially well if the assignment is due after a holiday (Thanksgiving, Spring Break) when students are likely to take a trip home and have the opportunity to interview a family member. Remind students that it's okay to focus on an organization that they perceived to be highly ethical or unethical. It makes for an exciting class when these are contrasted. Assuming that you'll get examples of both, it is also helpful to build here on discussions from Chapter 1. Ask which type of organization individuals preferred to work for and why. It soon becomes clear that students have been inspired by companies with ethical cultures and repelled by those with unethical cultures. 1. Does your organization address ethical issues in a formal, systematic way? If so, is it a cookie cutter, one-size-fits-all approach, or has the organization customized an ethical culture to match its unique needs? Probes to Stimulate Discussion • “What does your organization do, if anything, to support ethical conduct?" • “How do you know if the approach is cookie cutter or customized?" 2. To the best of your ability, use the questions in Tables 5.1 and 5.2 to conduct an ethics audit of the formal and informal systems in your organization. Instructors: Our students have had no difficulty answering these questions, assuming that they have work experience (as discussed above). 3. Having conducted the ethics audit, identify the formal and informal systems that are in need of attention. Where is the culture out of alignment? Design a change program to address weaknesses and to align formal and informal systems into a strong ethical culture Instructors: Remind students that they need to look beyond individual systems to be insure consistency and "alignment" among systems. Culture change programs take years to implement. An evaluation plan should be incorporated in the program. 4. How would you change the culture audit questions if you were planning to use them to conduct an ethics culture audit of a firm you were considering joining? Similar questions can be used, but they can also be altered to fit the person to whom such questions are to be directed. Applicants can probably learn the most by asking their future peers questions about how things are really done in the organization, about the informal cultural systems. One way to get at these questions is to ask the individual to tell stories about their organizational experiences. Can they tell a story about how integrity has been emphasized by executives and supervisors? About a time when business was turned down because of concerns about ethics? About a time when someone was dismissed for unethical conduct? About who gets ahead and how? Applicants can also ask questions about the formal systems and they can direct these to a future supervisor, someone in human resources, or both. For example, ask to see the ethics code and ask about the systems that surround it. How does one report an ethical concern and to whom does one report it? How well does the organization respond and follow up? Ask to see the performance management materials and see if issues such as integrity are incorporated. Are employees held accountable for behaving in ways that are consistent with ethical values are is only bottom line performance rewarded? Consider nonverbal reactions as well as verbal responses to such questions. If the respondent seems comfortable answering questions about the ethical culture in the organization, and has concrete stories to share, that’s a very good sign. If not, beware. In-Class Exercises Case: Culture Change at Texaco Case based Questions and Answers 1. Identify the ethical culture problem at Texaco in the mid-1990s. Possible Answer Multiple systems supported racism and discrimination against minorities, including lower pay and racist language. 2. Based on the facts in the case and what you have learned in Chapter 5, evaluate the culture change effort that is underway. What cultural systems have been targeted in the cultural change effort? What systems are missing, if any? Does the culture appear to be in alignment? Misalignment? What else might management do that they haven’t already done to make the culture change successful? Possible Answer Perhaps most important is CEO commitment to change. The CEO made a commitment to diversity throughout the organization and showed he meant it by hiring a number of minority executives. He targeted multiple systems including selection, rules/policies, reward systems, and decision processes. New recruiting systems were set up to recruit minorities at every level. Women and minorities were included on human resources committees to make sure that their perspectives were heard. The company even established scholarships to help ensure a pool of minority hires for the future and set up leadership development programs to help minorities advance within the firm. Systems were put in place for reporting problems and filing grievances. Perhaps most important, Bijur tied managers’ performance appraisal and compensation to their commitment to implementing the new initiatives. From what we know, at least the formal systems seem to be aligned to support the change. We know less about the informal systems and those will be key to long-term success. We also have no information about the new CEO and his commitment to sustaining these changes. 3. How long might such a culture change take? Possible Answer Such culture change efforts generally take years – as many as 6-15 years! Case: An Unethical Culture in Need of Change - TAP Pharmaceuticals Case based Questions and Answers 1. Analyze the ethical culture at TAP. Does the culture appear to be in alignment? Misalignment? Possible Answer Based on what we’re told in the case, this appears to be a culture perfectly aligned to support unethical conduct. The reward system focused only on the bottom line. Leadership didn’t support attempts to change the reward system. Informal norms supported illegal conduct such as bribing physicians. There is no language and there are no systems in place to encourage ethical conduct (selection systems, rules/policies or codes, etc.). The legal counsel is thought of as the “sales prevention” department rather than a source to help everyone keep their conduct within the law. 2. Based on the facts in the case and what you have learned in Chapter 5, evaluate the culture change effort that Douglas Durand undertook. What cultural systems did he target in the cultural change effort? What systems were missing, if any? Possible Answer After attempts at simple persuasion failed, he focused his change attempt on the reward system, arguably the most important one. So, he did the right thing. And for a short time, the change had the intended effect because people do respond to rewards. But, (and this is key) senior management overturned his efforts. So, senior leadership support, essential to any culture change effort, was clearly missing. All other systems that we know about were aligned to support unethical conduct. So, his attempts were probably doomed from the start. He also attempted to change the informal norms, by appealing to concerns about physicians’ trust, but was met with “rolled eyes.” 3. Why did his cultural change effort fail? What would it take for it to succeed? Possible Answer His culture change effort failed because he did not have the authority, or the support from those who did, for the change effort. As a result, he was able to target change in isolated cultural systems, but not throughout the culture as a whole. An important message from this case is that culture change is very difficult. Even someone at a relatively high VP level, will not be able to change culture without substantial support from senior management for a company-wide change effort. Case: “Bad to the Bone” – Synthes 1. What information did you glean about the culture at Synthes? How do you think the culture might be related to the behavior of the company’s employees? Possible Answer The culture appears to have been fear-based – a “do as you’re told” obedience to authority culture. People did what was expected or faced consequences. The culture seemed to be driven by potential sales rather than concern for human life. Misalignment issues abound, especially management’s ignoring of regulatory staffers’ concerns. These regulatory staffers are there (formal system), but they are sidelined (informal system). Management used punishment to discourage dissent as when researchers who warned the company about safety issues found that their contracts were not renewed. 2. Johnson & Johnson, a company with a reputation for ethics and social responsibility, acquired Synthes. From an ethical culture perspective, what would you recommend if you were going to try to combine these companies, especially if you wanted to change the culture at Synthes? We find it interesting that Johnson & Johnson bought a company with these ethical and legal issues. A complete overhaul of the ethical culture is probably needed. One would begin with an ethical culture audit and then proceed to attempt to fix problems and misalignments. Many managers may need to go. It may be worth discussing Johnson & Johnson and having students think about what it might really mean to try to integrate the culture of this company into the Johnson & Johnson culture. Johnson & Johnson has had many legal and ethical problems in the last few years that may have come from its purchase of companies like this without due consideration of the potential impact on the J & J culture. In our view, companies do much more due diligence on the financial side of mergers and acquisitions and not nearly enough due diligence on culture issues. 3. Do you think jail time for the executives was appropriate in this case? We don’t know the details of the specific cases, but the prison terms seem to be quite short to us given the loss of life involved. This would be a good discussion to have with students. Homework Assignment Assignment #1: Interview an Ethical Leader If you didn’t use this assignment in Chapter 1 (Interview someone you respect), you can use it now. This assignment involves students identifying and interviewing an ethical leader they know. It can be anyone they feel demonstrates integrity: a parent or another relative, a teacher, a manager, a neighbor, a scout leader, a religious leader – it has to be someone they personally know. The interview should be 20 – 30 minutes and students should ask a series of questions that they are then prepared to discuss in class: 1. How important do you think ethical leadership is on a scale of 1 to 10 (1 being not important; 10 being vital)? Why? 2. In your experience, where do most people learn about ethics? 3. Who had the most important influence on the formation of your ethical character? 4. Describe a situation that you feel really tested your ethics. Is there anything you wish you had done differently? 5. In your experience, what factors can make it difficult for people to make ethical decisions? 6. How important do you think it is for someone to be vocal or open about their ethical standards? 7. Should people be rewarded for being ethical? Students should also provide information about the interviewee including, their occupation, their relationship to the student, how long the student has known the interviewee, and what made the student select the interviewee. Assignment #2: Conduct an Ethical Culture Audit This assignment can be used with undergraduates or graduate students. If the graduate students have work experience, they can conduct an ethical culture audit of an organization they worked for. If not, they can interview someone with significant work experience. Our undergraduates often interview a parent or relative and they learn a great deal about the person as well as the organization. You can use the audit questions in the chapter as a guide for the assignment. Be sure to ask students to assess alignment issues. It might also be worthwhile to have students look at what the organization says about itself online and compare that with what they learn from an insider. Are the messages the same or contradictory? Especially if they find the latter, the exercise can motivate them to talk with insiders before accepting a position with a company. A variation on this is to have students analyze the culture of your school. You can also use this as an in-class discussion that prepares students to go off and conduct the ethical culture audit of an organization on their own. Assignment #3: Goldman Sachs and Ethical Culture Another interesting assignment could involve students researching Goldman Sachs and the ethical culture of that firm, which has been under such a microscope as a result of the 2008 financial debacle and the recession that followed. You could refer students to this blog entry on the New York Times website: Goldman Sachs and the Trader Culture http://opinionator.blogs.nytimes.com/2010/04/29/goldman-still-greedy-no-longer-patient/?hp Students can do additional research on Goldman and the debacle and write a paper or be ready to discuss in class how Goldman’s culture evolved and what effect this has had on the company, their clients, and the public. Additional Resources: 1. Video: The Danish Solution One of the most remarkable stories of ethical conduct involves the entire country of Denmark. During World War II, when European Jews were being rounded up and murdered by the millions, the Danish people saved almost all of the Jews in Denmark by defying Nazi orders to turn over Jews. Danes took their Jewish neighbors into their homes and through an elaborate system of Dane helping Dane, managed to smuggle almost every Jew out of Denmark to neutral Sweden. Then Danes tended Jewish property until the Jews returned at the end of the War. There are two movies that tell this unbelievable story: 1. “Act of Faith” available through Nostalgia Family Video – 30 minutes, inexpensive, old and grainy – but authentic and tells the story effectively (www.nostalgiafamilyvideo.com) 2. “The Danish Solution” – 58 minutes, color, narrated by Garrison Keillor, expensive, but beautifully made film. Available through: www.filmakers.com Probes to Stimulate Discussion: • Why did the Danish people behave almost as one in this effort? • How were the Danes able do this and not people in other European countries? • Could an effort like this ever happen today? Why? Why not? • What can this effort tell us about ethical leadership? • What can organizations learn from this situation? More information about the Danish rescue of Jews from “A Conspiracy of Decency,” by Emmy E. Werner, 2002, Westview Press: What factors contributed to the success of the effort? • Lack of anti-Semitism • Feelings/attitudes of civic equality for all citizens in Danish culture • Assimilations of Jews into Danish society • Participation in rescue efforts was endorsed by a wide range of organizations: professional, business, social organizations • Relative leniency on the part of the German commanders in Denmark • Decent people in positions of authority (Danish royalty, police, doctors, teachers, etc.) Rescuers tended to be one of four types: • Type #1 – Had strong and cohesive family bonds; reported being closely attached to their parents and valued caring for others, dependability, self-reliance, and independent judgment. These people tended to have a strong religious commitment, be “good” neighbors, and have many close friends. • Type #2 – Had consistently close contacts with Jews, and tended to have close Jewish ties – friends, living arrangements, relatives, etc., and were extremely disturbed by anti-Semitic propaganda • Type #3 – Had a strong sense of responsibility for the welfare and improvement of society as a whole. While not necessarily close to family, they credited a “parent” figure (could well have been a parent) with encouraging them to be independent, self-reliant, and to practice helpfulness and caring toward people who came from different classes and religions. • Type #4 – Were concerned more abstractly with egalitarianism. They derived their sense of responsibility from their identification with humanity as a whole and their empathy for people who were suffering. They were moved by other people’s pain and felt a strong responsibility to help them. Motives of rescuers: • Helping Jews was an affirmation of the value system they were brought up with: “to love your neighbor as yourself.” (52%) • Great empathy and distress for those who were persecuted and suffering (37%) • Principles alone (11%) Principles identified by rescuers as having been learned when they were children from a parent, parent surrogate, or teacher: 1. Human beings are basically the same and differences between them are to be respected. 2. The world is not divided into “them” and “us,” but we all have a common bond of humanity. 3. We should have a clear sense of right and wrong and we should stand up for our beliefs. 4. We should practice kindness and compassion toward others. 5. We should be independent and self-sufficient and never blindly follow the crowd. This story has the potential to be used successfully in multiple chapters. Here, one could discuss how an entire national culture supported such courageous action. 2. Video: ”Enron: The Smartest Guys in the Room” The first 30 minutes of this video provide an excellent description and analysis of how organizational culture can drive ethical behavior – or in the case of Enron, unethical behavior. We strongly urge you to show the entire film in class. It is a classic and an excellent overview of why ethics in organizations is critical. Chapter 6 Managing Ethics and Legal Compliance Contents: (Please note: the Instructor Guide for every chapter will follow this structure.) 1. Chapter Outline 2. Teaching Notes 3. In-Class Exercises 4. Homework Assignments 5. Additional Resources Chapter Outline I Introduction II Structuring Ethics Management A. Making Ethics Comprehensive and Holistic B. Managing Ethics: The Corporate Ethics Office C. Ethics and Compliance Officers D. The Ethics Infrastructure E. The Corporate Ethics Committee III Communicating Ethics A. Basic Communication Principles B. Evaluating the Current State of Ethics Communication C. Multiple Communication Channels for Formal Communication D. Interactive Approaches to Communication at USAA E. Mission or Values Statements F. Organizational Policy G. Codes of Conduct H. Communicating Senior Management Commitment to Ethics I. Formal and Informal Systems to Resolve Questions and Report Ethical Concerns IV Using the Reward System to Reinforce the Ethics Message V Evaluating the Ethics Program A. Surveys VI Values or Compliance Approaches VI Globalizing an Ethics Program VII Conclusion VIII Discussion Questions IX Short Case X Case: Improving Ethical Culture at Georgia-Pacific Teaching Notes - Discussion Questions 1. Think about the impact of the U.S. Sentencing Guidelines. Would organizations have tried to drive ethical behavior among employees without government encouragement? The Sentencing Guidelines clearly motivated organizations to develop the formal systems prescribed in the guidelines. There were almost no formal “ethics offices” prior to the early 1990s except perhaps in the Defense Industry as a result of the Defense Industry Initiative which inspired the Sentencing Guidelines. Probes to Stimulate Discussion: • Do you think that encouraging ethical behavior among employees is at all related to government regulations in general? • What might the attitude be toward ethics of a company that is being basically “forced” to adapt these measures by the government? 2. After reading about how a number of large companies try to encourage ethical behavior, what stands out? What approach is most unique? Which one do you think is most effective? Which one would make the biggest impression on you if you were an employee? The companies featured in this chapter are all trying – using sometimes similar and sometimes very different means – to accomplish the same goal of effectively integrating ethics into their cultures. An interesting exercise might be to imagine possible outcomes for companies that have been in the news for unethical behavior (BP, Goldman Sachs, etc.) if they had tried to instill ethics in their cultures using some of the methods described here. Probes to Stimulate Discussion: • Which techniques described in this chapter might work in a company like BP? At Goldman Sachs? • What about a particular industry might influence which tools to encourage ethics would work best? 3. Imagine that it's your responsibility to select an ethics officer for your organization. What qualities, background, and experience would you look for? Would you ever be interested in such a position? Why or why not? Generally, insiders who have held line management positions, who are thought to be fair, trustworthy, and credible, and who have a good relationship with the top management team are thought to make the best ethics officers. The General Counsel may not be the best choice because a lawyer is trained to, first and foremost, protect the company. Employees may not feel that they can go to this person with a problem, especially if it involves misconduct at higher levels. An ethics officer needs to have an internal as well as an external focus. She or he must be concerned about fairness to employees and customers, as well as protecting the organization from outside attack. Note that, after an ethics or compliance failure, companies generally turn to outsiders to fill senior ethics and compliance positions because outsiders are thought to bring a fresh perspective and less bias to the position. Probes to Stimulate Discussion • "What sorts of ethical issues will an ethics officer in your organization have to decide or resolve?" • "Is there technical knowledge required? How could a non-technical person acquire the knowledge necessary to resolve issues?" • "Is a background in the law essential?" • "Could a young person -- under age 35 -- do the job, or would employees be more comfortable with an older person?" • "What kind of experience within your company would make the most well-rounded ethics officer?" • "How could an outsider gain credibility within your organization?" • "Is there anything which could bar an insider from the job of ethics officer?" 4. What are the advantages of having an ethics office or officer report to a company's chief executive officer, the legal department, human resources, audit, or directly to the board of directors? What are the disadvantages? The ethics officer should report to the CEO or to the Board (or both). Many chief ethics and compliance officers report to one with a dotted line relationship to the other. Reporting to a single department suggests that the ethics office is strictly about obeying the law, or auditing for compliance. In fact, ethics management should involve all of those departments and should be part of the overall organizational culture. That is best accomplished if the top management team is directly involved and takes it to be their responsibility. Probes to Stimulate Discussion • "Think about the mission of all of the departments listed -- legal, audit, human resources, the CEO -- what are the risks associated with raising an issue with each of the departments?" • "What advice could each provide?" • "What protection could each provide?" 5. Think about an organization where you've worked. What kinds of ethical dilemmas are unique to that organization? To that industry? What might be the best way to prepare employees to deal with those issues? Probes to Stimulate Discussion • "Is your industry regulated? By whom?" • "What do the regulators think are the biggest problems in your industry?" • "Is there something in your corporate culture that could put your company at increased risk for an ethical problem?" • "Is there any aspect of your company or industry that has been criticized by the media or the public?" 6. Think about all of the communication opportunities provided by social media. How could an organization use social media like Facebook, Twitter, and the like to promote ethical behavior and communicate the organization’s values? What are the advantages and dangers of those media? The efforts by Kathleen Edmond at Best Buy to get employees thinking about ethics are not only award-winning, but they are really gaining traction in the company – among an employee population (retail) that is notoriously difficult to reach because they do not sit at computers all day. Probes to Stimulate Discussion: • Why are Edmond’s efforts so successful? • Do you think this could work in other companies? In what industries do you think this approach would work best? • How could companies get employees attention with Twitter or Facebook? • Are there other social media that could be used to raise ethical awareness? Which ones and how could they be used? 7. Which of the following exist in the organization? Mission or values statement, policy manual, code of conduct, ethics training (who conducts it), hotline? Are they consistent and credible? Probes to Stimulate Discussion • "Do all employees receive copies of the policy manual, values or mission statement, conduct code?" • "Does everyone receive ethics training?" • "Have you ever read the policy manual or conduct code or other materials relating to ethics?" • "Is your company saying one thing in its printed materials and doing another?" • "Who conducts ethics training in your organization? Are they -- to the best of your knowledge -- ethical?" • "Who answers the company hotline? Who resolves the issues raised on the hotline? Is the hotline confidential?" 8. Is senior management committed to ethics? How do you know? What could they do differently or better? Probes to Stimulate Discussion • "Do senior managers ever write articles on ethics for company communications (newsletters or magazines)?" • "Do they ever reference ethical behavior in speeches or orientations?" • "Is any senior executive "known" for his or her integrity?" • "Is there a senior executive who is especially trusted by employees?" 9. Are leaders at all levels held accountable for their ethical conduct? If so, how? If not, why not? What would you recommend? Probes to Stimulate Discussion • "Can you think of any employees within your organization who have been fired or disciplined for their behavior or for unethical conduct? How did you find out about it?" • "How long after the problem occurred did it take for them to be disciplined? Who actually did the firing?” • "How did other employees interpret the discipline -- what messages did it send?" • "Has anyone been commended for his or her high ethical conduct? What form did the praise or commendation take? How did other employees interpret it -- what messages did it send?" 10. What recommendations would you make for handling frivolous calls to the hotline? There may be some frivolous calls. But, our experience suggests that these are relatively rare and there is often some truth buried in what may appear to be a frivolous concern. The best thing to do is to handle each call as if it were serious because most of them are serious requests for information or serious reports of violations. Generally, if an employee calls, the issue isn’t frivolous to him or her, even if it seems so to you. The focus should be on fairness to all concerned when an accusation is being made. The best ethics programs consider any call to be relevant. In other words, if the issue seems to be a human resource issue, the person called the ethics office for a reason. To that person, the human resource issue (usually a fairness concern) is an ethical issue. The ethics office needs to take responsibility for handling the call, even if it is in conjunction with HR professionals. Probes to Stimulate Discussion • "How would you define a frivolous call?" • "Are problems relating to human resources issues -- arguments with supervisors, for example -- frivolous?" • "Could employees calling with frivolous complaints be penalized? Should they be? Should their managers be notified?" 11. Does the organization evaluate its ethics initiatives? How? If not, why not? Probes to Stimulate Discussion • "Have you ever received an employee survey that has tried to assess your attitudes toward ethical issues?" • "Have you ever participated in employee focus groups that have involved ethics?" • "Have you ever read about any ethics evaluations efforts in your company newsletter or magazine?" • "Have your company's senior executives ever distributed reports on how the organization's ethics program is doing?" 12. Would you characterize the ethics efforts in this organization as taking a values, compliance, or combination approach? Is it effective? Recommend improvements. Probes to Stimulate Discussion • "Has senior management spoken publicly about ethics initiatives?" • "Have they issued any printed material on ethics?" • "Is the program receiving senior attention?" • "Do senior executives and middle managers participate in ethics training programs?" • "Are only the company's lawyers involved in the ethics program?" 13. How would you raise an ethical concern in this organization? List all of the resources available to you. Which ones would you be likely to use? Why or why not? Probes to Stimulate Discussion • "How would the following people/departments react if you were to raise an ethics issue: your manager, your manager's manager, the legal department, the human resources department, the audit department, the ethics officer/department, the chief financial officer, the head of public relations/communications, the head of your division/department, the president of your organization, the CEO, the board of directors?" • "If you had to go outside of your chain of command, who would you approach and why?" • "Under what circumstances would you approach any of the above?" 14. Imagine that you're the CEO of a small manufacturing company. An employee has dumped toxic waste in a nearby stream. Who would you call into your office and what would you want to know? Develop a short-term and long-term action plan for dealing with the crisis. Who would you communicate with and why? Obviously, you would need to talk with the employee and decide how to handle the issue as a personnel issue. Was it an accident or was it intentional? Your response in terms of dealing with the employee, will depend on what you learn. But, first you would need quick help from anyone in the organization with expertise in environmental issues, especially the nature of the toxic waste, and how dangerous it is. You should immediately call your local and/or state environmental protection agency for help. Your goal should be to try to prevent health problems in the community and work with environmental experts to do so. You may also want to speak with the press openly to avoid speculation and unnecessary fear. Probes to Stimulate Discussion • "Who are the stakeholders in this situation?" • "Who on your staff (which kind of job) could you count on to handle each stakeholder group? • "Does your strategy for coping with the disaster address the needs of all stakeholders?” • "Does your plan include being forthright, accepting responsibility, and making some sort of restitution to effected stakeholders?" 15. Evaluate the ethics program at your organization from the perspective of “fit.” Has the ethics program been designed to “fit” the organization’s overall culture? If so, how? If not, what could be done to make the program a better fit? • “What are the three most key values in your organization?” • “Are workers rewarded for exhibiting those values?” • “Is your organization’s ethics program consistent with what your company rewards?” 16. Think about your own positive, memorable, “peak experiences” when it comes to ethics. Be prepared to discuss those with others in your class and to think about the conditions that would make it possible for such experiences to happen more regularly at work. Or, if you don’t have much work experience yourself, interview someone who has and ask these questions. Be prepared to report back what you learned from the interview. In-Class Exercises Case #1 -- What's Wrong with This Picture? You're a management consultant who has been asked by Green Company to help design an ethics communication and training program for all Green Company employees. Your meetings to date have been with the head of human resources, and your contract with the company has been negotiated with him. Once the papers have been signed, you begin your research and are quickly stymied by Green's corporate counsel. He says that you will not be allowed to ask employees about ethical dilemmas that have occurred at Green. He specifically asks that you get your information from other sources such as press accounts of problems in the industry, or from other organizations with which you've worked. In addition, the head of human resources has told you that you'll be unable to meet the three most senior executives because they're busy negotiating a large acquisition. You will have access to other high-level managers who can tell you what they think the seniors want. You're instructed to write a code of conduct for the company and a mission statement, and prepare presentations for the seniors to give to employees sometime next month on corporate expectations and values. Case-Based Questions and Possible Answers: 1. Based on what you know about developing ethical cultures and programs, identify the problems presented by this case. There are three big problems. First, you're being denied access to employees and, therefore, the real ethical dilemmas in the company. As a result, it'll be next to impossible for you to develop a program that addresses real issues. While you'll be able to develop some materials based on press accounts and publicly available documents about the industry, nothing you develop will be specific to the organization. The second problem is the unavailability of senior management. If this issue isn't important enough for senior managers to focus on, then there'll be little commitment from the executive ranks for whatever you develop. A third problem involves you, as an outsider, developing a corporate mission statement and code of conduct. It would be difficult enough for an insider to accomplish that; it will be almost impossible for an outsider to write something that reflects an intimate knowledge of the organization. And that kind of intimate knowledge of organizations is the only way a statement or code can ring true with employees. 2. Why do you think the corporate counsel has responded in this way? What will be your response to him, if any? The corporate counsel is being paranoid about disclosure of company information ("dirty linen") to an outsider. Of course, that issue could be circumvented by having you sign a nondisclosure agreement. However, some company lawyers feel that it's still risky to have an outsider privy to company "secrets." What you could do is inform the corporate counsel that you're not interested in what has happened. You're only interested in what could happen. That kind of response can allay the fears of some lawyers. 3. As a consultant, what are your ethical obligations, if any? Your obligations are to help an organization and not do harm. Fiddling around with a company's ethics communications and training can do major damage if you can't develop a realistic program and if you don't have senior management commitment. The situation described in the case is a very dangerous one, and the consultant should proceed with great caution. 4. How will you proceed? Many consultants would find a way to develop something in a situation like the one described in this case. However, if the corporate counsel remains adamant that you receive no information from employees, and if you are unable to meet with senior management, and if you are to receive no help from the inside with a mission statement and code of conduct, you should probably resign the account. The task is impossible. And while you may be doing management a short-term favor by sticking your finger in the ethics dike, you'll be doing them (and all employees) a long-term disservice by developing something without their help. It's one almost sure way to destroy a company's credibility. Additional Resources: 1. Ask a Local Company for Materials or a Guest Speaker Many companies are willing to share the materials they've developed to increase their employees' awareness of ethical issues. You or your students can contact various corporations and request copies of their mission/values statements, policy manuals, and codes of conduct. It's an interesting exercise to compare statements, codes, and manuals from various companies and look for clues about what's important to each organization, what ethical problems they may be anticipating, etc. Another idea is to ask corporate representatives to talk about their own highly ethical organization. Students will believe them more than they will believe you. They can demonstrate how their organizations train employees in ethics and compliance, and how they do all of the other things necessary to create a strongly aligned ethical culture. A corporate representative discussing the program or demonstrating it is very valuable for students. 2. DVD – Ethics: The Fabric of Business The Society for Human Resources Management has produced a DVD entitled "Ethics, The Fabric of Business: A Case Study of Lockheed Martin Corporation," that focuses on Lockheed Martin, one of our profiled organizations. Follow this link for more information: http://www.shrm.org/about/foundation/products/Pages/EthicsDVD.aspx 3. Online Video: The Surprising Truth About What Motivates Us This online video is ingenious and entertaining – an artist illustrates the 10-minute video as the narrator is talking. And it describes research that shows that higher rewards only incentivize certain kinds of work. When cognitive creativity or productivity is required, high rewards actually deter high performance. People who are doing cognitive work respond best to autonomy, mastery, and purpose. Great video that could be used in a number of chapters! http://www.ritholtz.com/blog/2010/05/the-surprising-truth-about-what-motivates-us/ Chapter 7 Managing for Ethical Conduct Contents: (Please note: the Instructor Guide for every chapter will follow this structure.) 1. Chapter Outline 2. Teaching Notes 3. In-Class Exercises 4. Homework Assignments 5. Additional Resources Chapter Outline I Introduction II In Business, Ethics Is about Behavior A. Practical Advice for Managers: Ethical Behavior III Our Multiple Ethical Selves A. The Kenneth Lay Example B. The Dennis Levine Example C. Practical Advice for Managers” Multiple Ethical Selves IV Rewards and Discipline A. People Do What’s Rewarded and Avoid Doing What’s Punished B. People Will Go the Extra Mile to Achieve Goals Set by Managers C. How Goals Combined with Rewards Can Encourage Unethical Behavior D. Practical Advice for Managers: Goals, Rewards, and Discipline E. Recognize the Power of Indirect Rewards and Punishments F. Can Managers Really Reward Ethical Behavior? G. What about the Role of Discipline? H. Practical Advice for Managers: Discipline V “Everyone’s Doing It” A. People Follow Group Norms B. Rationalizing Unethical Behavior C. Practical Advice for Managers: Group Norms VI People Fulfill Assigned Roles A. The Zimbardo Prison Experiment B. Roles at Work C. Conflicting Roles can Lead to Unethical Behavior D. Roles Can Also Support Ethical Behavior E. Practical Advice for Managers: Roles VI People Do What They’re Told A. The Milgram Experiments B. Obedience to Authority at Work C. Practical Advice for Managers: Obedience to Authority VII Responsibility Is Diffused in Organizations A. “Don’t Worry – We’re Taking Care of Everything” B. Diffusing Responsibility in Groups C. Diffusing Responsibility by Dividing Responsibility D. Diffusing Responsibility by Creating Psychological Distance E. Practical Advice for Managers: Personal Responsibility VIII Conclusion A. Am I Walking My Ethical Talk? IX Discussion Questions X Case: Sears, Roebuck and Co.: The Auto Center Scandal XI. Short Case Teaching Notes - Discussion Questions 1. Have you ever been in a situation, especially a work situation, where the norms supported a particular behavior, ethical or unethical, where you felt pressured to go along? Explain. Undergraduate students have limited work experience. But, they will often cite examples from summer jobs such as working in a fast food restaurant where the rules said you couldn't eat the food, but everyone did. Or, they may have had a job where they worked hard at first, but after being charged with "rate busting," slowed down to match the work levels of regular workers. Graduate students with work experience will have lots of examples some good and some bad. It's good to solicit both. That way the message is clear that organizations and managers vary and perhaps one should attempt to learn about the ethical values of an organization or manager before accepting a job. Probes to Stimulate Discussion With examples of pressure toward unethical behavior, ask: • "What was the nature of the pressure? Why did you feel you should go along? What options did you think you had if you didn't go along?" With examples of pressure toward ethical behavior, ask: • "How did you feel about the pressure?" Often the reaction is quite positive. Rather than pressure, they may experience it as "support" for doing the right thing. Discuss the difference. • "Do you think it's okay to pressure people to do 'the right thing,' such as supporting a blood drive or the United Way?" 2. Have you ever been in a situation where the rewards explicitly or implicitly supported unethical conduct? Explain. Again, the discussion will depend upon examples generated by the students. The most frequent examples will probably be the sales job that rewards on commission and provides no guidance regarding how the goal is reached. 3. Can you think of situations in which unethical behavior was dealt with appropriately (punished justly) or inappropriately? What were the reactions of others in the organization? Generally, students will speak positively about situations where "bad guys" were punished, and negatively about situations where people "got away with" misconduct. This reaction supports the idea that people want to work in “just” environments where reasonable rules are enforced. Probes to Stimulate Discussion • "How would you feel if someone cheated on a test and was not disciplined?" • “Would you feel differently if the test was curved?” This is the time to discuss the important social effects of rewards and punishments. As a manager, you need to think about not only the person you're rewarding or punishing, but also the reactions of others who are aware of the situation. They will judge your behavior primarily in terms of its fairness to everyone. The situation with cheating is similar to a work situation where there is a fixed pie of benefits (e.g., bonus money) and one salesperson who is using unethical sales tactics is likely to get the money while the honest salespeople will be left with nothing (but their integrity). 4. What do you think would be appropriate punishment for those found guilty of assault or indecent exposure in the Tailhook situation? Why? This question will probably generate a lively discussion. You may want to see if the answers differ for females versus males, those with military experience versus those without military experience. One point that is important to make, however, is that management of the Navy needs to take responsibility for whatever role it played in allowing this behavior to continue year after year. It was obviously considered a "rewarding" experience for many of the men involved, and we know that people do what's rewarded. So, it might be most appropriate to discipline individuals at the highest levels who were responsible for tacitly condoning the behavior. On Nov. 14, 1994, Newsweek ran an article entitled "The Military Fights the Gender Wars," p. 35. They discussed sex related scandals in the Navy and at West Point. At West Point, women cadets complained that they were fondled by army football players during an Oct. pep rally. Citing that they'd learned the lesson of Tailhook, Lt. Gen. Howard Graves (superintendent of the academy) notified the Pentagon, launched an immediate investigation, and talked to the New York Times openly. Paula Coughlin, the Tailhook navy lieutenant, won a $6.7 million jury award from the Las Vegas hotel where the convention occurred. In 1996, (2/5) Newsweek reported that, in the four years since Tailhook, the Navy had received more than 1,000 sexual harassment complaints and more than 3,500 charges of indecent assault. There have been other sex-related scandals in the military more recently, including students at the Air Force Academy who claimed that they were raped by fellow students and that school officials either ignored their complaints or punished the accusers for complaining. Students can be asked to do research to bring the Tailhook discussion up to date. You can also discuss how the military’s experience relates to the experiences of other work organizations with sexual harassment. In another example of how this issue continues to grow, an Air Force general in early 2013 overturned an officer’s sexual assault conviction based on the general’s belief that the officer was a “long-serving officer who loved his wife and child.” A firestorm erupted in the press as a result, with the U.S. Congress hosting competing bills to combat the power of commanding officers to overturn the results of an authorized, legitimate court martial. Students can search for descriptions of the struggle in the U.S. Senate between Sen. Claire McCaskill (Missouri) and Se. Kirsten Gillibrand (New York), which is a fascinating case of how the military handles such cases and how Congress is trying to change that. Probes to Stimulate Discussion • "What do the women/men in the class think?" (Note that sexual harassment and abuse are not limited to women – men are victims too). • "What do those with military experience think?" • "How should punishment be distributed to participants and high ranking officers who didn't participate, but tacitly 'allowed' such behavior to occur?" 5. Have you ever felt obligated to do something you felt was wrong because a person in a position of authority told you to do it? Discussion related to this question will rely upon students' experience. Expect to hear stories about experience in sales positions where students are told to be dishonest with customers in order to sell their wares telling someone the shoes fit when they don't, or that buying a coat in July is really a good idea! 6. Think about how you might design work to maximize workers' taking responsibility for the consequences of their actions. Possible Answers Make employees responsible for a whole, identifiable piece of work. The more it is chopped up into pieces, the less aware they are likely to be of the consequences. Create opportunities for employees to interact with the people who might be affected by their behavior or decisions. Both of these answers relate to the job design literature, which suggests that jobs designed along these lines would also be more motivating. 7. Evaluate yourself or a manager you know using the "do you walk your talk" questions above. Probes to Stimulate Discussion • “Are these the right questions to ask?” • “Are there others we should be asking?” In-Class Exercises Case #1: Sears, Roebuck, and Company: The Auto Center Scandal Case based Questions and Answers 1. Identify the ethical issues involved in the case from a consequentialist and deontological perspective (refer to Chapter 2). Deontological approaches seem most useful here. For example, fairness, honesty, and the obligation to provide customers with only needed service are the most obvious ethical issues in the case. Consequentialist approaches would point one toward the costs to society of thousands of people paying for unnecessary service. The primary harm seems to be monetary and the loss of trust. A virtue ethics approach begs the question, what is the relevant community here? Mechanics and service advisors are not professionals with established codes to guide their conduct. However, they would probably agree that people of integrity don't lie. And, doing so certainly wouldn’t look very good on the front page of the local newspaper. 2. Identify the management issues involved in the case. For example, think about the case in terms of multiple ethical selves, norms, reward systems, diffusion of responsibility, and obedience to authority. What factors contributed the most to the alleged unethical conduct on the part of service advisors and mechanics? Multiple ethical selves. Most of the people who were dishonest to customers are probably upstanding members of the community who think of themselves as good, honest people. It is likely that this view of themselves didn't change because of their behavior at work. Norms. It seems that dishonesty became the norm in this environment. It became the way things were done. Roles Consider making quality an important part of the mechanic and service advisor roles. Another possibility is to create a new role quality control person. But, this is not an ideal solution. Why checkup after the fact if you can avoid problems from the start? This case also suggests that there are role conflicts for those who diagnose problems and sell service to customers. These roles should be separate. Reward System. Clearly the reward system is the biggest problem in this case. Management has designed a reward system that focuses on ends (quantity, not quality), but not means (honesty with customers). It also rewards people not only for selling more service, but implicitly rewards them for being dishonest. It also punishes those who are honest, if by being honest you will do less repair work. For a company that has prided itself on customer service over the years, this new reward system created problems with consumer trust that take years to rectify. The reward system contributed the most to the unethical conduct. The reward system can be changed to focus goals on quality, customer satisfaction, and/or repeat customers rather than amount of service sold. A great exercise - have students design this new reward system. Diffusion of responsibility. Diffusion of responsibility is a factor in this case, especially with the new reward system that maintains commission for mechanics. For example, if a mechanic is the one diagnosing the problem, s/he may list more problems (or bigger problems) than really exist because of the reward system. But, this is even more possible because s/he might think, "I'm not the one really advising the customer." "I'm just making a list of problems and handing it to the service advisor." So, the responsibility for the bad advice is diffused between the mechanic and the service advisor. And, it's possible for either or both to point to the other as "really responsible." Psychological distance comes into play here as well. If the mechanic never sees the customer, it's probably easier to be dishonest than if s/he has to lie to the customer face to face. Obedience to authority. Nobody was openly telling these people to be dishonest. But, in the absence of clear statements, employees will try to figure out what authority figures want them to do. In this case, employees figured out that management wanted them to sell more service at any cost and they did. 3. How would you evaluate Sears' response to the allegations and the changes they made? Has Sears resolved its problem? Why or why not? Brennan's response was weak. He should have apologized and fully accepted management's responsibility for creating a faulty reward system. He should also send a strong message to employees about future expectations. Some of the ideas that were implemented are okay. For example, commissions based upon customer satisfaction should turn attention to satisfying the customer rather than selling a certain number of brake jobs. And, shopping audits can provide management with useful information about the kind of service customers are really getting. However, Sears has definitely not resolved the problem. The fact they the company maintained the compensation system for mechanics is a huge problem. As the letter from Chuck Fabbri stated so well, mechanics are frequently the ones who provide the diagnosis. This system encourages them to oversell or recommend more repair work than is needed. 4. What do you think is the impact of the scandal on Sears' reputation for quality and service? There is no good way to know, but thousands of business school students are studying this case every year through versions published in this book and elsewhere. It might be interesting to conduct a brief survey of students in the class to find out whether they would take their car to Sears, or what they would advise their parents to do. It might be interesting to note that, since the scandal, Sears has invested heavily in a corporate ethics program. They even won an award for it. So, they seem to be aware of the importance of ethics and their reputation. 5. Respond to Brennan's comment, "We have to have some way to measure performance." What can management do to prevent "overselling?" Propose a management plan (including a compensation system) that allows management to measure performance and encourages auto center employees to behave ethically. Be specific. Certainly, management needs some way to measure performance, but they selected inappropriate ways to do it. Again, any goals or incentives based on sales run the risk of promoting the sale of unnecessary service, or overselling. At the very least, if they insist on sales quotas, they must counterbalance these with strong ethics training and harsh and enforced penalties for dishonesty. They certainly shouldn't punish people for being honest. The company might think about implementing a straight salary system, with bonuses for quality, customer satisfaction (based on surveys), and referrals. Some of these could be team based which would encourage mechanics to work together, consult each other for ideas on how to solve problems, etc. It would probably also help to have the mechanic meet the customer and talk with him or her about the problem (reducing psychological distance). Midas muffler mechanics work in glassed-in shops so that customers can watch them work. They also bring customers into the shop to show them what's wrong the hole in the muffler, for example. Obviously, that's easier with mufflers, but it could probably be done with other problems, and would do a lot to inspire trust. An important part of any new reward system will be making it clear that any future dishonesty will be harshly disciplined, and then following through. The current system focuses only on selling more service to current customers. How about looking beyond these customers to think about ways to bring more customers in? They might consider getting service employees involved in coming up with creative ideas to attract new customers. If they're successful, they should share in the profits. Goals or incentives based on quality, new customers, referrals, or customer satisfaction focus on satisfying customers. Service managers and mechanics would then be motivated to satisfy customers over the long term rather than to make short term sales. Sears might also consider implementing some kind of simple code to guide mechanics, like, "Would I recommend this service if this were my mother's car?" You can have students work in teams to design a reward system. They can present their ideas to the other teams who can play the role of devil’s advocate. Given the reward system, what is the behavior that is rewarded, punished? Hopefully, students will learn what an important management role designing reward systems is. 6. Should anyone be disciplined? If so, who and when? What should the discipline be? Take care when discussing this question. Students (especially undergraduates) will often want to harshly discipline the "unethical" workers to make an example of them. But, discipline must be perceived to be fair (by observers and by those punished) if it is going to be effective. So, first, management must take responsibility for its role in tacitly encouraging the unethical behavior through the poorly designed reward system. The best answer here is for management to acknowledge its role, to make clear that things are changing, to change the reward system to one that doesn't encourage unethical behavior, to state clearly that unethical behavior will be harshly punished in the future, and then to follow through at the first opportunity. Under these circumstances, discipline will be very appropriate and necessary. 7. Think more generally about Sears management’s response to the firm’s financial problems. How else could they have increased auto center sales without providing incentives to employees to sell specific products? There are many possible responses to this question. They could offer discounts in an attempt to increase volume, improve customer service so that people are more likely to come back for service when they need it, etc. An addition resource for the Sears case: Rucci, A.J., Kirn, S.P. & Quinn, R.T. 1998. The employee-customer-profit chain at Sears. Harvard Business Review, 76(1): 82-97. A good teaching note to accompany the case. (Thanks to Stu Youngblood at Texas Christian University for bringing this to our attention). Case #2: Another Short Case for Discussion 1. What are the ethical issues in this case? Fairness is a prominent issue in this case. What is the fairest allocation of resources given the three regions’ size and needs? The fairest approach is to support all three regions, not just Bill’s. The golden rule would certainly support that position, as would Kant’s categorical imperative. Fairness comes up again when Bill says he’ll recommend you and your people for every award, AND give you a monetary bonus out of his own pocket. That begins to feel like bribery and undue influence and should be avoided at all costs. 2. What are some reasons the decision maker in this case might be inclined to go along? Not go along? Obedience to authority may come into play here. Bill does represent the largest region and the biggest money maker. Depending upon the company’s values, Bill may have more power than the other regional directors, and that puts pressure on the decision maker in this case. But, the decision maker’s gut should be screaming as well about the fairness and bribery issues which would make him or her think more than twice about the situation. 3. If you were the decision maker, how would you handle the situation? This probably depends a lot on the organization’s culture. In some organizations, Bill would be allowed to get away with these shenanigans because of his region’s financial success. The best approach is to first have a frank conversation with Bill about the situation and your fairness concerns. You can explain that your approach will be to work with each regional director with equal enthusiasm and provide the best service possible to all of them. You also need to be clear that you cannot accept the monetary bonus. If he continues to insist on preferential treatment, you might suggest that you and all of the regional directors have a problem-solving meeting with their manager to discuss the situation. If you take a problem-solving approach, you may be able to come up with a creative solution. For example, if Bill’s area is clearly the most important to the company, maybe you can designate a particular person or persons to work closely with Bill. The organization might even pay for additional staff. But, whatever you do, it needs to be out in the open and not some side deal. Would you report the conversation to your manager? Why or why not? You could certainly solicit advice and support from your manager on this sticky situation. That’s what managers are there for. Your manager may have information about Bill and the others that could be helpful in working the situation out. You may also gain insight into what the organization’s stance is likely to be by talking with your manager. Homework Assignment Please note that either of the in-class discussion cases would make excellent homework assignments. Additional Resources: 1. Video: “Obedience” A 45-minute, classic film about Milgram's experiments is entitled "Obedience." Although the film is old, it makes an extremely powerful statement about the notion that "people do what they're told." We recommend that you preview the film and then prepare students for what is to come. Students typically react to the "worst" obedience scenes with nervous laughter. If you explain to them that they are likely to react that way, they'll understand their own discomfort better. Advise them to feel free to laugh, but to think about why they’re laughing and be prepared to discuss that. Be sure that you leave enough time for discussion. Students will often argue that "people are different now" and that they would never comply as those in the film did. The major point to be made here is that the research overwhelmingly supports that idea that people do what they're told. This wasn’t just one study, but many studies that are documented in Milgram’s book. Therefore, managers/leaders have a great deal of influence on most people's conduct and that responsibility must be taken seriously. Another important point to be made is that experiments such as Milgram's could not be done today because of the Human Subjects Committees at universities that protect the rights of research subjects. 2. Video: “Quiet Rage” A newer, 50-minute video entitled, Quiet Rage; the Stanford Prison Study, is similarly powerful. It is narrated by Zimbardo and includes scenes from the actual experiment. It’s highly recommended for discussion on the power of roles to mold behavior. Reading about the experiment just doesn't do it. 3. Video: “Invitation to Social Psychology” A shorter film/video, entitled "Invitation to Social Psychology" has very brief vignettes from both Milgram's and Zimbardo's studies. Both the full-length Milgram film and the Zimbardo film are highly recommended for students at any level. Students report that they are thought provoking and memorable. The important lessons about the power of obedience and roles won’t soon be forgotten. Some websites devoted to Stanley Milgram and his work can be found by putting Stanley Milgram into the Google search engine. 4. Primetime Live – a recent “Obedience” experiment In November, 2005, Primetime Live ran a powerful segment about a situation that occurred in a number of McDonald’s restaurants. Much of the segment was from video recorded on a McDonald’s surveillance camera. A man, saying he was a policeman, called. He claimed to have a McDonald’s manager with him. He requested to talk to the restaurant manager and told this manager that a young female employee who he described had stolen something and should be called into the private office. The caller proceeded to make requests that involved requiring the 18-year old woman to take off her clothes so that she can be searched, and worse. The young woman in the segment ended up being physically abused by a man (the restaurant manager’s boyfriend who was called in to watch the young woman while the manager went back to work). The restaurant manager, a middle-aged woman, came across as not evil, but simply following orders from an authority figure (a policeman). She never questioned him about his requests. The segment was not available to purchase when we last checked, but it has been rerun. So, you may want to look for it. We tell you about it because sometimes students say, “Oh, this couldn’t happen today.” This story clearly counters that belief. P.S. The perpetrator was caught (by tracking down his calling card). For more information and the script of the segment, see http://abcnews.go.com/Primetime/story?id=1297922&page=1 You can also purchase a DVD that ABC created. It’s available on Amazon.com as part of a series ABC News Primetime called “Basic Instincts” – it’s number 5 in the series and is entitled “The Milgram Experiment Re-Visited,” It demonstrates how a University of Santa Clara psychologist replicated the Milgram experiment (with some serious tweaks to reflect today’s ethical standards). It shows variations on the Milgram experiment as well as a very short segment on the McDonald’s story. If you use it (especially the part about what happened at McDonald’s) you may want to warn the class. We have had students get upset (one young man who had daughters found it very difficult to watch; a young woman who had been sexually abused also had a negative reaction – so when we use this video we warn students about it and give them the opportunity to leave if they wish – of course with no repercussions at all). But, the large majority of students find this to be an extraordinarily educational video. Instructor Manual for Managing Business Ethics: Straight Talk about How to Do It Right Linda K. Trevino, Katherine A. Nelson 9781118582671