College Courses Prepare Students for Ethical Issues at Work

In a time of polarizing workplace issues, professors are asking students to consider their moral and ethical obligations on the job beyond the bottom line ("Business Schools Now Teaching #MeToo, N.F.L. Protests and Trump." The New York Times, December 25, 2017). "Students have said ethical issues, not finances, are a business’s most important responsibility, according to a survey of business school students worldwide conducted by a United Nations group and Macquarie University in Australia."

Discussion Questions:

1. Although a campus discussion of ethical and moral responsibility at work can be useful, how does a recent college graduate face corporate culture that condones discriminatory behavior?
2. If you have experienced unethical actions at work, how did you handle the situation? Was the outcome fair to all parties affected?
3. If a student in college does not already possess a moral compass of right and wrong, can a college class positively change his/her perceptions and actions? Why or why not?

Dealing with Unethical Situations at Work

Learn how to handle a directive to engage in unethical behavior on the job with these practical suggestions ("When the Boss Wants You to Do Something Unethical," The New York Times, July 6, 2017). Get clarification from your supervisor to make sure you understood what is being asked of you. Research the situation to decide if the potential action goes against company policy. Determine the consequences of compromising your integrity to save your job before you bring your concerns about your boss to another person or group overseeing your boss. This article provides more great options should you encounter such situations at work.

Discussion Questions:

1. Did you think the article provided useful strategies for employees who have been asked to do something unethical at work? Why or why not?
2. Have you faced such a request to do something you thought was dishonest? Did you decide to stay on the job or resign?
3. Do you think it is important for a company to have a code of ethics, so employees know what is expected of them on the job? Why or why not?
4. Do you think companies that place an emphasis on maintaining an ethical workplace are more profitable? Why or why not?

Unethical Actions of Employees Added to a Database?

To improve the reputation of financial firms in light of recent scandals, bankers are discussing the creation of a database to keep track of ethical lapses that violate business codes ("Wall Street Mulls Naughty List for Ethically Challenged Bankers," Bloomberg Business, December 22, 2015). This list would be available only to banking-related companies that are regulated by federal agencies such as the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve System (Fed) in their quest to screen job applicants. A few issues about this new plan have yet to be decided, but this system is supposed to provide employees with the right to challenge false information in their profile.

Discussion Questions:

1. Do you think an unethical employee database is a good idea that other companies beyond banking should develop? Why or why not?
2. Would you be less likely to engage in unethical behavior that's not necessarily illegal, if you knew your name and misdeed may be added to a database that can be searched by prospective employers? Why or why not?
3. This plan mentions that employees could dispute errors in the database but doesn't say how erroneous information would be removed from the database. Do you think it would be commonplace for employers with a grudge against an employee to add misinformation to a worker's profile? Why or why not?

Can Volkswagen Ever Be Trusted?

Volkswagen's faulty emissions scandal negatively impacted much more than air quality ("VW Employees Responsible for 'Dieselgate:' Where's the Legal, Moral, & Ethical Compass?" Philadelphia Business Journal, October 5, 2015)? Stanley W. Silverman, article author and Chairman of the Board at Drexel University College of Medicine, notes that it is likely that VW caused deaths as a result of adding to the air some "10 to 40 times more nitrogen oxides (NOx) than allowed by regulation" (see also: Cheating Cost 5 to 20 Lives a Year, Data Show from Philly.com, October 6, 2015). Silverman suggests that a large number of employees had to know about this deliberate deception.

Discussion Questions:

1. If you knew that your company was engaging in deliberate illegal acts, would you act with honor and blow the whistle? Why or why not?
2. Should VW change its name? Would it make a difference in getting people to buy its vehicles? Why or why not?
3. Should VW executives be fined instead of the company itself? Why or why not?

Survey Finds on the Job Ethics Improving Possibly Due to a Slow Economy

Businesses seem to be promoting ethical behavior on the job, but less than robust economic conditions may provide a stronger incentive for good employee conduct, according to a recent survey ("Workplace Ethics Increasing, Perhaps Because of the Recession, but Misconduct on the Job Still High, Survey Finds," Cleveland.com (Cleveland Plain Dealer), February 10, 2014).

The 19th National Business Ethics Survey from the Ethics Resource Center (ERC) using "6420 responses from employees in the for-profit sector" found that retaliation for reporting misconduct was still a concern even though it saw a slight decline. Yet, there was an increase in employee reporting of unethical behavior on the job. However, the ERC President mentioned that if a stronger economy returns, more employees may be tempted to engage in unauthorized practices to increase the bottom line for themselves and their employers.

Discussion Questions:

1. Do people you know act ethically on the job and in their personal lives? Why or why not?
2. Would you report misconduct that you observed in your workplace even if you might face retaliation?
3. Have you ever worked for an unethical supervisor? If so, how did his or her behavior affect you?

Illegal Pay Practices Surface for Minimum Wage Workers

Results of a recent study of low-income workers exposed a widespread disregard by their employers for federal labor laws related to overtime pay and minimum wage standards ("Low-Wage Workers Are Often Cheated, Study Says" - The New York Times, September 1, 2009). The study found that of the 4,387 employees studied, 68 percent received an average of 15% less income than they actually earned. Legal immigrants and American-born workers comprised 61% of the workers studied. Workers also reported that 57% were not given "mandatory pay documents the previous week" and 12% said that some tips were withheld. Employees in Los Angeles, Chicago, and New York City took part in the study, “Broken Laws, Unprotected Workers" sponsored by the Ford Foundation, the John Randolph Haynes and Dora Haynes Foundation, the Joyce Foundation and the Russell Sage Foundation.

Discussion Questions:

1. Workers for this study were questioned about wages in early 2008 before the economic downturn hit its peak. In 2009, do you think workers likely experience more illegal wage practices as a result of worsening economic conditions for employers? Why or why not?
2. Do you know someone who has received less pay and tips than they expected due to an employer illegally withholding wages? Do they have an estimate on how much income they lost as a result?
3. Does the government need to hire more people to check on employers pay practices? Or do business groups need to take more action to encourage employers to pay workers fair wages?
   

Kyocera Founder Touts Benevolent Capitalism

Kazuo Inamori, founder of Kyocera, a Japanese cell phone manufacturer, says that companies should "seek profits supported by sound ethics and a strong sense of morality," something that is lacking in the current capitalistic model. ("Kyocera Founder Kazuo Inamori Criticizes U.S. CEO Excesses," April 21, 2009 - USA Today). Greed should not be the underlying principle in the quest for profit according to Inamori. He suggests that profit making should be tempered with what actions are "for the good of society." Inamori also says that astronomically-high executive salaries should not be the norm, because a CEO should share the wealth with all the players who contributed to company success.

Discussion Questions:

1. Are U.S. executives likely to buy into Inamori's philosophy about profit making with a heart? Why or why not?
2. Inamori also talks about profit making for the long haul so companies don't settle for short-term profit at the expense of long-term company viability. Will international companies continue to aim for short-term gains instead of long-term solvency as a result of the current economic crisis? Why or why not?
   
3. Inamori is an ordained Zen Buddhist monk. Do you believe that religious principles can guide a company to become more successful and increase profits? Why or why not?
   

Company Put Profits over Safety in Tainted Peanut Scandal

Allegations that the Peanut Corporation of America (PCA) willfully sold salmonella-contaminated peanuts that caused at least nine deaths and made over 600 people ill in 43 states continues to rock the entire food industry (Salmonella Outbreak Eases Way for Food Safety Reforms, Baltimore Sun, February 15, 2009). The U.S. Food and Drug Administration (FDA) notes that PCA owner, Stewart Parnell disregarded "at least 12 tests revealing salmonella in 2007 and 2008" and persisted in distributing peanut products in a quest to increase profits. A criminal investigation is underway into PCA's actions.

In the wake of this tragedy, food safety advocates are calling for reform of the FDA with one Connecticut congressperson calling for a new agency, Food Safety Administration to work proactively to prevent food contamination. Rep. Rosa DeLauro sponsored legislation for the Food Safety Modernization Act to mandate that "companies control health hazards in their operations and meet federal standards for removing contaminants and be subject to regular inspections, based on the "risk profile" of the food they produce." Also, the act would give government the ability to "seize unsafe products and order recalls."

Discussion Questions:

1. Why would a company risk lives by distributing unsafe products? Are companies so desperate to make money in a downturned economy that they would do anything to increase profits? Didn't someone realize that continuing to distribute these dangerous products would ultimately cause the downfall of the company and related businesses?
2. Despite additional government inspections and regulations, the consumer still must depend on the food industry to act responsibly and follow safe practices when processing their products. How can the food industry ensure that companies employ best practices when processing food?
3. After reading this article from the Baltimore Sun, what other practices or regulations would you recommend to improve food safety?