College of Business Administration

Seminar in Business Ethics and Social Institutions

Discussion Questions for July 24, 2003:

Questions related to Dienhart Chapter 4 – How individual decision-making relies on the ethical values established in economic institutions and organizations:

1) Is the Internal or External approach to the relationship between ethics and economics most applicable to an organization driven by delivering shareholder value? Why?

2) What are Constitutive and Regulative rules/principles? How do regulative rules/principles impact ethical decision-making within a corporation?

3) What are the 4 Institution and Market Conditions, and how are each impacted by Constitutive and Regulative rules/principles?

4) What are the inherent differences in the Goal-seeking view and Contract-based view of organizations? Which best subjects itself to ethical decision-making? To maximizing shareholder value?

Questions related to Dienhart Chapter 5 – Law and Ethical Decision-making and Bonacich article (hand-out):

5) Compare and contrast the Reinforcement View of Law and Public Choice Theory. Do major revisions of law reflect a change in societal values or increased pressure from those who are self-interested?

6) If E. Bonacich is right and “the capitalist system depends upon the exploitation of the poor by the rich”, how does Public Choice Theory explain the continued disparities in wealth accumulation, income, and opportunities?

Questions related to Milton Friedman - The Social Responsibility of Business is to Increase its Profits:

7) According to Milton, summarize how businessmen and businesses that “believe they are defending free enterprise” and “not concerned ‘merely’ with profit but also with promoting desirable ‘social’ ends;” actually hinder free enterprise.

Questions related to George Soros – The Capitalist Threat:

8) Why would having a blueprint for an Open Society be self-contradictory?

Conclusion:

9) At what point is regulation (government or otherwise) required or acceptable to maintain growth in a free-market capitalist society?

Return to Professor Dunn's home page.