College of Business Administration

Seminar in Business and the Good Society

Discussion Questions for November 21, 2000:

Business Horizons

1) In many of the articles in the Business Horizons issue there is a struggle to define the corporation as an individual in giving it personhood status. Corporations have individual rights but are not held morally responsible for their actions. "The corporation cannot be kicked, whipped, imprisoned, or hanged by the neck until dead" ( Gibson, as cited in "Foundational Considerations in the Corporate Social Responsibility Debate", Richard J. Klonski)
How can you get beyond this hurdle in dealing with the moral responsibilities of the corporation? Is it possible? If not should the individual rights be taken away because of this lack of repercussion?

2) In "Are Corporations Inherently Wicked?", Dunn states that "duty demands that managers maximize organizational efficiency: self-interest urges the manager to consume corporate resources" creating a conflict of interest and moral dilemma.
Do corporations provide shelters for managers as a safeguard from morality? From the law? What changes to hold managers accountable for their actions?

3) The assets of shareholders of corporations cannot be used to satisfy the obligations of the corporation.
Are we as a society promoting self-interest within the corporate framework by allowing corporations to exist?

4) In Carrol's "Pyramid of Social Responsibility", it is argued that ethical responsibilities embrace these activities and practices that are expected or prohibited by societal members even though they are not coded into law.
Why is it so hard to incorporate ethical responsibilities into law? How can we expect corporations to hold themselves to a higher code than law? If these responsibilities are that important to us why don't we code them into law and take the responsibility off the corporation? Do you agree with coding philanthropic and ethical responsibilities into law? Do you agree with the order of the pyramid?

5) To which stakeholders are the managers responsible? Do they need to practice "moral" management with all of the stakeholders? What is the cost of practicing moral management? Do the benefits outweigh the costs?

6) In your utopia, do corporations exist? Why? Why not?

7) In Post's article entitled "Managing as if the Earth Mattered", a situation is recounted in which Mr. Gomez and Mr. Crumholtz are involved in making a decision that will affect the global commons.
Should people be given the opportunity to make decisions like this about the global commons? If not, how do you go about governing these decisions on a global level?

8) What level of importance does the environment play in your utopia? Do you believe that corporations should be responsible for the environment above and beyond their legal requirements? If not, who should? Why? Is more government intervention necessary to preserve the environment?

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