BOLDER BOULDER (1998)
Nancy Sampson, Vijaya Narapareddy & Keri Ellisor, University of
Denver
Case Objectives and Use
This case deals with a dilemma that the Bolder Boulder race organizers faced when they tried to impose a new rule restricting the number of Kenyan elite competitors in the Bolder Boulder race in 1998. In debating the men't of the Bolder Boulder's proposed participation format and deciding the best participant policy, students have the opportunity to apply Management models of decisionmaking and the three models of Ethics, viz., Utilitarian, Moral Rights, and Justice.
The case is appropriate for graduate or undergraduate courses in Public
Policy, and Ethics. It will be of special interest to graduate students
in Sports Management programs.
Case Synopsis
The case describes the controversy, which surrounded the decision made in Spring 1998 by the Bolder Boulder race organizers. The format limited foreign runners to a maximum of three athletes per country in the men's and women's divisions, while U.S. runners were unlimited in numbers. A front-page article in the New York Times suggested that the decision was racially motivated.
Bolder Boulder organizers were confronted with the dual challenge of responding to the unanticipated wave of accusations and of having some U.S. runners place high in the elite races. Distance running in the U.S. was a declining sport. Leaders in the track and field community, including the USA Track & Field officials encountered the daunting task of attracting, retaining, and developing a cadre of professionally talented young runners.
The case presents the unique opportunity of debating the ethics surrounding
the policy keeping in mind the realities of the issues faced by American
long-distance sporting community leaders.
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BUSINESS AS WARFARE" AT MCDONNEL DOUGLAS CORPORATION
Robert J. Rafalko, University of New Haven
James E. Fisher, St. Louis University
Case Objectives and Use
This case illustrates the dangers (morally and prudentially) of carrying
an analogy too far. Specifically, "Business as Warfare' at McDonnell Douglas
Corporation" illustrates the dangers of applying heavy-handed tactics to
business practice and treating business decisions like wartime strategies.
The case is intended for both undergraduate and graduate audiences. It
is targeted specifically for a managerially-oriented business ethics course
for MBA's, but would be appropriate for managerial and personnel courses-perhaps
in a module on labor-management relations or negotiations-or, more broadly,
to introduce larger issues about business and society or competing concepts
of corporate responsibility that might arise in a variety of business,
economics or philosophy courses.
Case Synopsis
The case describes a major labor dispute that occurred in 1996 between
McDonnell Douglas Corporation (MDC), a large U.S. defense contractor, and
its employees who were members of the International Association of Machinists
and Aerospace Workers (IAM). Herbert Lanese, MDC's point man in this episode,
became the focus of considerable controversy with his tough negotiating
tactics and provocative public statements. In this case, the management-labor
struggle is placed in a larger business context: MDC's struggle to emerge
on a sound financial footing in a defense industry undergoing dramatic
restructuring in a post-Cold War era and a similar trend among U.S. businesses
to downsize their labor force, to cut costs, and to engage in other efforts
that held forth prospects for improved productivity and enhanced competitiveness.
A 99-day strike by the IAM against MDC was in many respects emblematic
of a larger national controversy about the stability and mutuality of the
employer-employee relationship as well as reflecting concerns and doubts
about the solidarity of labor. Although the strike was eventually settled
at MDC, it came at considerable cost for many involved. In addition to
providing further strain on employee morale, the episode also sullied MDC's
reputation as a socially responsible and ethically motivated organization;
the company's prospects for an important government contract had dimmed
considerably; it also apparently cost Herb Lanese his job as well as impairing
his future career prospects.
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COLUMBIA/HCA AND THE MEDICARE FRAUD SCANDAL
Anne T. Lawrence, San Jose State University
Case Objectives and Use
The objective of this case is to encourage students to think broadly
about the causes of, and remedies for, unethical or fraudulent behavior
by corporations.
The case suggests that both external and internal factors may have
contributed to the commission of Medicare fraud at Columbia/HCA. An effective
strategy to reduce or eliminate fraud may, therefore, require changes in
both the external environment and management behavior. Students may be
challenged to consider: In what ways did public policy or the actions of
government regulators contribute to the problem? In what ways did the company's
strategy, culture, leadership, or organizational structure and practices
contribute? What could or should Columbia management have done differently?
How should Columbia respond to the government jiwesticyafion? In general,
what actions by health care corporations, government regulators, the public
(health care consumers), industry shareholders, and other stakeholders
would help reduce the incidence of health care fraud?
This case is suitable for graduate or upper-division undergraduate courses
in business and society, business ethics, health care policy, or business
policy and strategy. It is especially useful in modules dealing with the
interaction of ethics and strategy in health care or other highly regulated
industries.
Case Synopsis
This case focuses on decisions facing the top management of Columbia/HCA
Corporation following initiation of a massive anti-fraud investigation
of the company by the federal government in July, 1997. Columbia at the
time was the largest health care company in the United States, with 340
hospitals under ownership. The government probe focused on allegations
that Columbia/HCA had systematically and criminally defrauded Medicare,
the federal health insurance program for the elderly and disabled. The
case describes the history of Columbia/HCA and the company's strategy,
leadership, and organizational policies. It also provides a brief history
of Medicare and a description of the extent and nature of Medicare fraud
and
its regulation. The case closes with the dilemma facing Columbia/HCA's
board of directors, as it considered how best to respond to the allegations
against the company.
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FISH OR CUT BAIT...
Melodie Philhours & Sarath Noms, Arkansas State University
Case Objectives and Use
"Fish or Cut Bait..." illustrates the ethical and practical considerations present in a complex decision making situation. The student is encouraged to apply the concepts of ethical decision, making, along with the theoretical basis for such decision making, in light of the realities of human nature involved in the case. A second objective is to provide the opportunity for students to explore the traits of non-decision-makers as well as the ethical implications of these traits. A third objective of "Fish or Cut Bait" is the evaluation of the misuse of, or reliance on, outdated and possibly invalid data as support for a decision when better information is available and the ethical implications of this practice. A fourth objective of the case is to introduce the student to the College Level Examination Program (CLEP).
The case and teaching note were written for undergraduate courses in Ethics, Organizational Management, Leadership or Organizational Behavior.
Case Synopsis
In "Fish or Cut Bait...," the Chairman of the Economics and Decision Sciences, Dr. Charles Bingham, was faced with a somewhat difficult decision and plagued by a number of considerations as well as an apparent aversion to decision making. There's the "easy" thing to do, the "night" thing to do, the "what looks wrong, but is right" thing to do, the "I don't know what to do." He had been approached by a faculty member from the Marketing Department regarding the credit-granting CLEP score for the Microeconomics course. Dr. Steve Norman's wife took the exam, scored well above the credit-granting score set up the American Council of Education but below the score required by the Economics and Decision Sciences Department. After researching the situation, Dr. Norman made a very convincing argument for reevaluating the required score.
The standard was set in 1971, when Greenville University began to accept CLEP credit. It was studied in 1973 using sample of three students taking the Microeconomics exam. The standard had not been reevaluated since, even though the CLEP exam has been modified several times due to changes in subject content. The standard is above those of one comparable and two much larger universities. At all three institutions, Mrs. Norman's score would have produced credit.
The case illustrates the reluctance of an individual to make a decision and the ethical considerations and realities of making or not making the decision. The Chairman must either "fish or cut bait... !"
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GEO SEARCH Co. LTD. AND THE MINE EYE PROJECT
Armand Gilinsky, Jr., Sonoma State University
Case QbjecCives and Use
Land mines and their removal pose seemingly long term, intractable problems and necessitate potentially costly and far-reaching solutions. This situation is most acute in poor, war-tom nations where the preponderance of landmines has been deployed. The 1997 Nobel Peace Prize was awarded to the International Campaign to Ban Land Mines. The UN estimates that there are 120 million unexploded land mines around the world, with millions being laid each year. To solve the problems of clearing those mines could involve an estimated $33 billion and 1,100 years. The "Geo Search Co. Ltd. and the Mine Eye Project" case was written to illustrate the various-and often conflicting-contexts in which financial decisions regarding new ventures and corporate diversification are made.
The "Geo Search Co. Ltd. and the Mine Eye Project" case is suitable for use in an undergraduate or graduate-level introductory Finance course. It could also be used in business school courses such as Business and Society; Management of Technology; or Entrepreneurship. As indicated in the teaching note, at the core of the case is the issue of relationships. These include financial relationships used to determine the valuation of an opportunity and social relationships that can satisfy the needs and wants of the stakeholders of the enterprise. What happens when these relationships come into conflict, i.e., the tension between the economic or "bottom-line" performance of the venture and corporate social performance, which does not easily lend itself to clearly defined "bottom-line" measurement?
Case Synopsis
Geo Search Ltd., a Japanese entrepreneurial venture, attained success in creating the world's first practical sinkhole detection system using "Ground Penetrating Radar" (GPR). This technology became very effective after the devastating earthquake in Kobe, Japan, in January 1995. This tragedy greatly increased the company's 1996 revenues to $4.88 million and profits estimated at $500,000. At a conference in Sweden, the company's President, Hiroshi Tomita, stumbled upon a diversification opportunity upon meeting some of the victims of land mine detonations. Tomita ("Tommy") sought and received support from his board of directors to spend $2 million to adapt GPR technology to a prototype device for land mine detection, called Mine Eye. Mine Eye was subsequently lauded by experts as a breakthrough technology, however, an estimated additional $2 million was needed to perfect the prototype and bring it closer to production, perhaps as early as 1999. Geo Search sought outside financing since it did not have enough capital to sustain the project nor to build engineering capabilities and production capacity. A not-for-profit foundation, Japan Alliance for Humanitarian Demining Support, (JAHDS) was formed in early 1997, to direct fund raising efforts in Japan and in America via the company's Houston subsidiary, but there were no guarantees that needed funds would ever be raised by JAHDS nor that the device could ever be profitable.
If Geo Search were to take the lead in providing technology and raising
funds for production of a system to mitigate the land mine problem, it
could provide a needed boost to Japan's languishing industrial competitiveness
and restore a sense of national pride.
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GET FIRED UP FOR THE UNITED WAY OR GET FIRED?
Joyce M. Beggs, UNC-Charlotte
Case Objectives and Use
The purpose of the case is to provide and example of a conflict between personal interests and company interests. Betty Beauregard has been asked to lead a United Way fund raising campaign. This conflicts with her personal feelings toward the organization. Henri Fayol, the father of the classical school of management, presented the principle of subordination of individual goals to company goals. Betty does not know whether she is willing to place company goals above individual goals.
The case can be taught in a 50-minute class. Data for the case were gathered from field research, and the names of the company and the individuals were changed. The case has been classroom related.
The discussion of the case can be based on ethical principles. Students should be encouraged to provide arguments for and against each issue. The case is appropriate for junior or senior level management courses including business ethics, business and society, and principles of management. A teaching suggestion is to role-play the meeting between Betty, Harry Rosenblatt, the CEO, and Sarah Applebee, Senior Personnel Administrator. Another teaching suggestion is to have the students' debate the issues with the discussion organized around ethical decision making rules.
Case Synopsis
Betty Beauregard sat in her office contemplating the decision of whether
to head the United Way fund raising campaign at First Street Bank. She
had arranged a meeting with Sarah Applebee, Senior Personnel Administrator,
and Harry Rosenblatt, CEO. This meeting was to start in one hour. She had
problems with the pressures that the bank puts on its employees to donate
to the United Way. First Street had a policy that states that employees
were not to be solicited during company hours but made an exception for
the United Way. In addition, the past scandal of the United Way involved
Mr. Aramony, the previous president of the organization, defrauding the
charity out of more than $1,000,000 made her question the ethics of the
United Way, She was faced with the decision of whether to lead or decline
to lead the fund raising project for First Street.
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LE FAUX MONNAYEUR
Vijaya Narapareddy & Reza Gharai, University of Denver
Case Objectives and Use
This case deals with the predicament a young business school graduate confronts on his first job as he discovers the corrupt business practices prevalent in the global lice trading business. Consequently, he faces the difficult decision of whether to stay on the job or quit. This classtested case captures the interest of students with ease as it enables students to engage in a simple yet powerful discussion of the dilemma that a whistle blower faces on the job, and to decide the appropriate course of action.
The case is appropriate for use in undergraduate and graduate courses
in International Management as well as Ethics and Social Responsibility.
It offers the opportunity to discuss pertinent issues offered in the "Whistle
Blowing" literature and to revisit the classic debate of economics vs.
ethics.
Case Synopsis
This case describes the ethical dilemma and inner turmoil a young and
new employee, Andr6 Confus, faces at his first job as he stumbles onto
inconsistencies, which lead him to understand the true nature of deals
made by his employer in the rice trading business. The realization that
the poor in developing countries were being ripped off by greedy government
officials and rice traders like his boss infuriate him. Andr6 confronts
his boss only to find himself being ridiculed. He is stunned by his boss'
casual reaction and feels helpless when his boss chastises him. The case
ends with the storm that brews in Andr6's mind as he is faced with the
personal dilemma of making a decision regarding his job and communicating
it to his elderly parents.
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"SAVE THE RAINFOREST, BOYCOTT MITSUBISHI!"
Rebecca L. English, Bentley College
Supervised by John A. Seeger, Bentley College
Case ObJectives and Use
Students should learn 1) to see both sides of a contentious issue, and to identify bias in the views expressed by involved parties; 2) to identify the constraints upon decision-makers in a corporate environment, and search for ways to circumvent those constraints; 3) to evaluate the validity of civil disobedience as a strategy of the environmental movement; and 4) to see the importance of personal relationships between adversaries in long-term conflict resolution. The case and note are written for graduate or undergraduate courses in Business and Society, with possible applications also in Strategic Management. The case permits students to identify with a leading environment activist cause (if they so choose, and we think many will), and then to consider the actual effects of "beating" the enemy.
Case Synopsis
Beginning in 1989, environmental groups campaigned against the Mitsubishi Corporation and its affiliated companies in a worldwide effort to force the company to change its policies and actions. Mitsubishi (MC) was engaged in at least 15 logging and development projects, ranging from Malaysia to Siberia to Chile to Alaska. In 1991, the Rainforest Action Network (RAN) focussed on two units of the Mitsubishi keiretsu with concentrated operations in the United States - Mitsubishi Motors Sales of America (MMSA) and Mitsubishi Electric of America (MEA). Auto dealers and electronics stores began to feel the impact of demonstrations, protests, and civil disobedience as Rainforest local groups and national staff drew public interest to the "Boycott Mitsubishi!" campaign.
By 1995, the leadership of MMSA and MEA professed agreement with the
Rainforest objectives. A personal relationship between RAN's Michael Marx
and MMSA's Dick Recchia developed, and the framework of an agreement was
reached as the two men stood in the Roaring Fork River in Colorado, during
a negotiating meeting at the Rocky Mountain Institute. They caught (and
released) some 36 trout during the conversation. Three more years of detailed
negotiations produced a 1998 agreement: all would work toward sustainable
environmental practices, the Mitsubishi units would press their keiretsu
partners and other corporations to join in the effort. A full-page ad in
the New York Times trumpeted, "Before, Rainforest Action Network and Mitsubishi
Electric America were barely on the same planet. Now, they're on the same
page."
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THE NEW YORK STATE ASSEMBLY WAYS AND MEANS COMMITTEE
Mitchell Langbert, Brooklyn College, C.U.N.Y.
Case Objectives and Use
In the context of a look at New York State's accounting and financial control policies, this case illustrates public choice theories about the role of interest groups in the development of public policy. It illustrates the interaction among interest group pressures, government accounting principles and public sector management as well. It does so in the context of a decision that a senior budget analyst, Jeannette Penske has to make concerning the decision whether or not to send a letter to the Governmental Accounting Standards Board that reflects her thoughts on governmental accounting but that might prove troublesome to her employer, the New York State Assembly. The case therefore additionally illustrates ethical issues in whistle blowing.
The case was written for an undergraduate course in public policy and ethics, and is expected to be useful following readings and discussion about the role of interest groups in public policy formulation and ethical issues in whistle blowing. It is also directed at courses on accounting and public sector management.
Case Synopsis
Jeannette Penske, senior analyst for the New York State's Assembly's
ways and means committee, is asked to develop a response to the Governmental
Accounting Standard Board's proposed changes to rules on governmental financial
statements. Penske is reluctant to develop the response that she believes
is correct because of the issue's political sensitivity. In particular,
Penske believes that in large measure private sector accounting principles
could be applied to the public sector. She believes various management
problems that have plagued New York, for example, excessive construction
costs, to be artifacts of unnecessarily complex accounting rules that shield
inefficient state management processes from public scrutiny. However, excessively
vocal calls for reform might be inconsistent with tacit norms among the
state assembly's hierarchy. Her ethical problems is to balance expression
of her beliefs with her career goals.
(Compiled by JDH on 5/11/2000)