The following questions relate primarily to Schwartz's The Battle for Human Nature
1) On page 216 of his text, Schwartz argues:
One of the criticisms of economics developed in Chapter 6 was that what economists regard as eternal characteristics of human nature are actually rather recent historical developments, dependent on the existence of a market system that encouraged people to pursue their individual, economic interests. "Rational economic man" was an eighteenth-century invention, having little relation to how people actually behaved in societies prior to that time. Once invented, the economic man concept led to the formation of social practices and institutions that were consistent with it but that undermined previous forms of social organization. Thus, the economic man conception was a self-fulfilling one. First, one claims that deep down people are really such and such; then a world is created in which people can only survive if they act like they are such and such; sure enough, in that world, people become such and such deep down. Otherwise, they simply disappear.Is self-interestedness a human characteristic acquired by nurture, or is it rather a matter of innate nature? What reasons can you offer in defense of your position?2) Schwartz claims that the notion of 'moral man' has given way to that of 'economic man.' As evidence of this phenomenon, consider the following excerpt from the October 26, 1992 issue of Business Week:
Gary S. Becker, who on Oct. 13 was awarded the Nobel Memorial Prize in Economic Science… more than any other economist, has turned the spotlight of economic reasoning onto the decisions that individuals and families make in their personal lives. He starts with a basic economic approach that says people make rational choices to benefit themselves, and that those choices are strongly affected by the economic incentives they face. Then, he applies the model to families, marriage, education, and other topics of day-to-day existence..."No other economist has so broadened the range of economic analysis," says Milton Friedman...As one example of such reasoning, Becker believes illicit drugs should be gradually legalized: 'This might increase drug use. But legalizing drugs would reduce crime and free police for more serious activities.' Describe the moral-theoretic framework upon which Becker is building his arguments. Do you agree that public policy prescriptions ought to be made without reference to explicitly 'moral' considerations? Why or why not?Consider the following discussion case vignettes for this class session (all are from Trevino & Nelson's Managing Business Ethics: Straight Talk About How to do it Right (New York: John Wiley & Sons, Inc., 1995, pp. 62-64):
Human Resources Issue
Your division has formed a committee of employees to examine suggestions and create a strategy for how to reward good employee ideas. You are the only minority member of the committee, which has five other members. You're pleased to be part of this effort since appointments to committees such as this one are viewed generally as a positive reflection on job performance. At the first meeting, tasks are assigned and all the other committee members think you should survey minority members for their input. During the weeks that follow, you discover that several committee meetings have been held without your knowledge. When you ask why you weren't notified, two committee members tell you that survey information wasn't needed at the meetings and you'd be notified when a general meeting was scheduled. When you visit one committee member in his office, you spot a report on the suggestion program that you've never seen before. When you ask about it, he says it's just a draft he and two others have produced.
How would you handle this?Conflicts of Interest Issue
You've just cemented a deal between a $100 million pension fund and Green Company, a large regional money manager. You and your staff put in long hours and a lot of effort to close the deal and are feeling very good about it. You and three of your direct reports are having lunch in a fancy restaurant to celebrate a promotion, when the waiter brings you a phone. A senior account executive from Green is on the phone and wants to buy you lunch in gratitude for all your efforts. "I'll leave my credit card number with the restaurant owner," he says. "You and your team have a great time on me."
Describe three courses of action you might take and the pros and cons of each.Customer Confidence Issue
You're the vice president of finance for a small computer company, which has shown a small profit during the last three years. Your company is planning a stock offering, and positive earnings forecasts are essential to its success. While you're preparing the forecasts, a friend tells you in confidence that his company--the major chip supplier to your company--is experiencing serious manufacturing difficulties. He says that, although it won't be announced for several weeks, chips will be in short supply for at least a year. He estimates that your company's supplies may be cut by as much as 25%. Your earnings forecast is scheduled to be issued two weeks before the announcement from the chip supplier.
Should you consider this information in preparing for the stock offering?Use of Corporate Resources Issue
You work for Red Co. You and a colleague, Pat Brown, are asked by your manager to attend a week-long conference in Los Angeles. At least 25 other employees from Red Co. are attending, as well as many customers and competitors from other institutions. At the conference, you attend every session and see many of the Red Co. people, but you never run into Pat. Although you've left several phone messages for her, her schedule doesn't appear to allow room for a meeting. However, when you get back to the office, the department secretary, who's coordinating expense reports, mentions to you that your dinner in L.A. must have been quite the affair. When you ask, "What dinner?", she describes a dinner with 20 customers and Red Co. employees that Pat paid for at a posh L.A. restaurant. When you explain that you didn't attend, she shows you the expense report with your name prominently listed as one of the attendees.
Describe at least two ways in which you could handle this situation.
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