TEACHING
BUSINESS &
PROFESSIONAL
ETHICS
USING CASE METHOD AND STRATEGIC ASSESSMENT
© JAVIER PINTO
Business and Professional
Ethics is not only a theory
within the realm of
management sciences but
also a discipline that should
teach how to analyze specific
business situations (cases); all
this in the manner of a five-
step strategic analysis.
This critical analysis, when built from case
studies, is an ordered inductive process that
allows presenting decision-making analyses
with normative criteria, that is, the
development of qualitative strategies for the
company, work, and the market.
The analysis structure in Business Ethics is
built based on the following conceptual
areas:
1. 'WHAT' or Critical Analysis
2. 'WHERE’ or Normative Analysis
3. TO WHAT EXTENT' or Qualitative Analysis
4. 'WHICH' or Decisional Analysis
5. 'HOW' or Resolution
CASE METHOD
What is happening or what situation do we see in the case? What is the underlying
issue?
1. WHAT (critical analysis) What areas (fields, topics, and matters) of business ethics are related to the case?
Which of them would be in conflict?
2. WHERE (normative analysis) How fair is what is being done so far or proposed to be done? What needs to
3. TO WHAT (qualitative analysis)
change to progress in justice and/or responsibility?
EXTENT 4.1. If the situation is unjust or minimally just, what alternatives do I have to
correct or improve it?
(decisional analysis) 4.2. If the situation is already just, should I and can I improve it in any way? What
4. WHICH alternatives do I have?
(resolution)
5. HOW How can I evaluate my decision?
5.1. EXPERIENCES & ADVICE
5.2. CAUTION & RISK MANAGEMENT
5.3. MANAGEMENT SCIENCE
5.4. BUSINESS INTELLIGENCE
5.5. INNOVATION & WITTEDNESS
How can you describe briefly the many
relationships of causality in the case?
Initially, the case must be approached through a critical analysis, that is,
motivation from a systemic or organizational perspective. For this, it is essential to
describe the positive aspects or conflicts in what is called a comprehensive
causality relationship (flow that demonstrates causal relationships in the
organization showing involved groups, causes of the problems, and
impacts). In other words, this means that there are aspects or dimensions
productivity of the activity that mutually or integrally affect each other in the company
and that this has triggered a conflict situation or, in other cases, has allowed
a qualitative improvement of the business activity.
low salaries For example, mistreatment of an employee reduces motivation; motivation,
productivity; and productivity, leads to poor product quality; which in turn
affects customer satisfaction. This causality relationship is not necessarily
unsatisfied linear, and more than one factor can affect a singular aspect (illness and
consumers mistreatment simultaneously decrease a worker's productivity).
Thus, it is essential to ask what the relevant issue is and, moreover, what are
the conditions that positively or negatively affect it. Therefore, we say, for
example, 'this is a productivity case' (the issue) and the factors that affect it
are 'worker health and poor working atmosphere'. In summary, a good
description answers the question about the substantial problem (i.e., its
relationship with normative aspects) and then identifies the factors that
low sales affect it systemically.
What is happening, or what
situation of conflict we see in the
case?
After a critical analysis allowing me to elucidate the issue at hand, a case study can showcase a
positive situation as well as a conflict. In this regard, the initial consideration about what is seen in
the case is its general category: 'this is right' or 'this is wrong'. It often happens that almost all readers
have the same positive or negative opinion regarding what is seen in the case (for example,
'Volkswagen's collusion is wrong'). The issue is to explain why it is right or wrong, that is, to justify, and
this requires formulating more precise or specific questions that question the problem (for example,
is Volkswagen's behavior really collusive?).
This initial part of the critical analysis of a case is usually presented as the background of the case or
the issue at hand. Usually, the situation, conflict, or theme that the case wants to highlight is well
summarized in the title of the document. But also, since a case study can be analyzed from other
disciplines (finance, accounting, strategy, etc.), the title does not always refer to the ethical problem.
What business & professional
ethics concepts are associated to
the case?
After a critical analysis that allows me to elucidate the problem at hand, a case study can show a
positive situation as well as a conflict. In this sense, the first consideration about what is seen in
the case is its general category: 'this is right' or 'this is wrong'. It often happens that almost all
readers have the same positive or negative opinion regarding what is seen in the case (for example,
'Volkswagen's collusion is wrong'). The issue is to explain why it is right or wrong, that is, to justify,
and this requires the formulation of more precise or delimited questions that call into question the
problem (for example, is Volkswagen's behavior really collusive?, therefore, one of the concepts at
stake is ‘collusion’)
This initial part of the critical analysis of a case is usually presented as the background of the case
or the issue at hand. Usually, the situation, conflict, or theme that the case wants to highlight is
well summarized in the title of the document. But also, as a case study can be analyzed from other
disciplines (finance, accounting, strategy, etc.), the title does not always refer to the ethical
problem.
WHERE
Areas, topics and topics: where
can be situated the problem, that
is, which ambits (areas, topics,
or subjects) are seen in the case
and which ones are in conflict
between them?
To begin the critical analysis of a case study or business situation
from the perspective of Business Ethics, it is essential to use the
appropriate theoretical framework. This theoretical framework is
provided by the course content, which has been explained
through analysis schemes in class and, to a lesser extent, in the
course book.
The purpose of the analysis schemes is not so much the analysis
of the case, nor organizational consideration, but rather the
understanding of the course content in the light of the case study.
Organizational analysis, corresponding to the positioning work,
comes afterward and must be carried out once the concepts of
business ethics have been correctly understood through reading
the book and with the help of the professor.
The positioning of the areas, subjects, and A practical way to identify concepts and
topics of Business and Professional Ethics that relationships known by a team or workgroup is
must be considered for a critical analysis are to use graphic resources, such as infographics
not necessarily individual, but a case may relate or mind maps. This is a preliminary
to more than one. However, it is important to consideration before organizational causality
consider the least possible, or the most relationships, but it allows us to know 'where we
important ones, so that it is possible to highlight are'.
the most relevant aspects of a case, and not
everything that is more or less related to a
business situation.
Thus, for example, an analysis may involve
aspects of labor ethics and corporate ethics as
main areas; and from these, a problem of
working conditions and corporate axiology
could be the most relevant topics. Thus, for
example, we can say that La Polar was a case of
Administrative Ethics and Commercial Ethics.
On the other hand, the analysis should be
descriptive: as relationships between topics and
areas. A consultant or student not only
identifies problems in a company but also
knows how to communicate them
comprehensively. In this sense, speaking the
same language is important.
VOCATION WORKING
CONDITIONS ETHICS OF WORK
ORGANIZATION
As shown below, we can
move from the areas to
the topics, and from the
topics to the specific
AREAS ETHICS IN LEADING
issues. The following map MANAGEMENT & PEOPLE AT WORK
is a fairly comprehensive PROFESSIONALISM
description of the
positioning alternatives
we have for analyzing CULTURE OF WORK
cases of business ethics. INSTITUTIONAL
For a clearer distribution RESPOSIBILITY
of areas, subjects, and
topics, you can see the
complete map displayed
below: RESPOSIBILITY
WITH COMPENSATION
STAKEHOLDERS ETHICS
Then, the analysis of a
case requires a more
precise positioning, which
translates into the RESPOSIBILITY IN
identification of themes in CORPORATE
EMPLOYMENT
the areas of business GOVERNANCE
ETHICS
ethics.
GUILDS & UNIONS
Thus, for example, we can
say that La Polar was a INDIVIDUAL
case of commercial INTEREST &
ethics, specifically, fair AMBITION
pricing.
TECHNOLOGY & BUSINESS & PUBLIC CORPORATE
SOCIETY GOOD CITEZENSHIP MARKETS´SOCIAL
VALUE VOCATION WORKING
CONDITIONS ETHICS OF WORK
FULL ORGANIZATION
CONCEPTUAL
ENVIRONMENT &
MAPP FOR SUSTAINABILITY ETHICS IN LEADING
PEOPLE AT WORK
AREAS AND
SUBJECTS
CULTURE OF WORK
INSTITUTIONAL
RESPOSIBILITY
RESPOSIBILITY
WITH COMPENSATION
STAKEHOLDERS ETHICS
SHARED VALUE
RESPOSIBILITY IN
CORPORATE
EMPLOYMENT
GOVERNANCE
MANAGEMENT & ETHICS
PROFESSIONALISM
GUILDS & UNIONS
INDIVIDUAL ETHICS IN TRADING THE MARKET AS A COMMERCIAL
INTEREST & COMMON GOOD MALPRACTICES
AMBITION
• Moral Authority • Mobbing
• Technical Authority • Occupation
• Axiological Conditions • Trade
• Resource Conditions • Paternalism
• Time Conditions • Power (K+L)
• Working Conditions • Justice in Compensation
• Physical Conditions • Profession
• Legal Conditions • Union Responsibility
• Psychological Conditions • Ethical Salary
• Social Conditions • Charisma
• Organizational Democracy • Sweatshops
• Taylorism and Fordism • Work
• Human Dignity in Work • Work and Effort
• Accountability • Professional Conduct • Benevolent Dimension of Work • Work and Personal Narrative
• Ambition in Administrative Ethics • Ombudsman • Practical Dimension of Work • Illicit Jobs
• Greed in Administrative Ethics • Whistleblowers • Productive Dimension of Work • Competitiveness
• Compliance • Conflict of Interest • Social Dimension of Work • Purpose
• Professional Conduct • Creative Accounting • Work Dimensions • Fellowship
• Ombudsman • Professional Objectivity • Discrimination • Unethical Warehousing
• Whistleblowers • Corruption in Administrative Ethics • Diversity • Economically Fair Value: Market Price
• Conflict of Interest • Discretion in Fiduciary Ethics • Empowerment • Vocation
• Creative Accounting • Common Stocks and Private Property Subsidiarity and • Engagement • Welfare
• Professional Objectivity Service in Administration • Justice and Accountability in Compensation • Right to Work
• Corruption in Administrative Ethics • Opportunism in Fiduciary Ethics • Ethics of Outsourcing • Sympathy
• Discretion in Fiduciary Ethics • Favoritism in Fiduciary Ethics • Ethics of Living Wages • Community of Interests
• Common Stocks and Private Property • Fiduciary Responsibility • Ethics of Variable Compensation • Labor Union
• Subsidiarity and Service in Administration • Institutional Responsibility • Ethics of Participatory Management • Guild
• Accountability • Professional Responsibility • Ethics of Minimum Wage • Responsible Union Negotiation
• Ambition in Administrative Ethics • Responsibility to Stakeholders • False Authority • Dominant Union Position
• Greed in Administrative Ethics • Self-interest in Administrative Ethics • Inclusion • Organizational Dominant Position
• Compliance • Sustainability • Labor/Service • Political Dominant Position
• Stakeholders • Meaningful Work • Sectoral Dominant Position
• Trickle-Down Economics in Stakeholders • Anti-union Practices
• Responsible Valuation of Stakeholders
• Strategic Stakeholder Valuation (Edward Freeman)
ISSUES
• Circular Economy • Collusions and Cartels • Speculation
• Corporate Citizenship • Interlocking • Environmental Care
• Corporate Axiology • Sustainability Ecosystem • Private Property in the Environment
• Corporate Activism • Privacy • Conservation in the Environment
• Corporate Riders • Intimacy • Accessibility in the Environment
• Asset Stripping • Ethics of Social Networks • Private Life and Public Life
• Public Good and Business • Ethics of Artificial Intelligence • Values and Principles
• Evasion • Ordoliberals
• Value Chain • Avoidance • Competition and Participation
• Formal and Material Cooperation • Unfair Taxes • Private Bribery
• Price Discrimination • Bribery • Ethics of the Data Industry
• Double Effect in Business Ethics • Corporate Philanthropy
• Pyramid Schemes • Monopolies
• Product Ethics
• Commutative Justice in the Market
• Pay-day Lending
• Ponzi Scheme
• Comprehensive Consumption
• Fair Price
• Predatory Lending
• Subprime Loans
• Golden Rule in Trade
• Consumer Sustainability (Household
Finance)
• Usury
COMPENSATION
ETHICS
Once we have located the areas,
themes, and issues involved in the
case, we can realize that there are
WORKING
many elements related to the case.
CONDITIONS
This means, in practice, that it can
be difficult to address a solution to
the case if the areas of business
ethics are too many to propose a
realistic solution.
Therefore, it is necessary to make a
decision and choose the areas,
themes, or issues that seem to have
the greatest relevance in the case. To
do this, we identify what we
consider the most relevant conflict,
that which identifies in a more
focused and significant way the
problem, dilemma, or difficulty of
the case. COMMERCIAL
MALPRACTICES
TO WHAT
EXTENT
To what extent both the situation in the case
and the potential decisions are fair enough?
What must be changed in the case in order to
move forward a situation of justice and
responsibility?
With 'qualitative analysis,' we refer to the degree
of justice of the problem that we have seen in the
case.
In this way, we move forward in considering that a In this sense, once we address the issue of justice, we already have
particular situation is unjust, just (minimum advanced positioning of the problem. Thus, for example, we could say that
justice), or responsible (maximum justice). La Polar was a scandal of Commercial Ethics and Administrative Ethics,
However, the important thing is not simply to give where the actions of the executives were unjust towards customers and
an opinion, but rather to systematically justify it. shareholders. In both areas, there are issues of justice, and to justify the
For this, qualitative analysis makes use of the injustice, we explain it based on what it means, for example, to engage in
analysis schemes used in class to understand how responsible commercial practice.
fair or unfair a situation is.
Now, to assess the fairness of a
decision, it is possible to make a
distinction in three areas: what is
happening in the case, the UNFAIR FAIR RESPONSIBLE
decision that could arise in the
case, and/or a hypothetical
decision, which is not in the case
but which we can propose.
i THE BUSINESS
CASE ii DECISIONS SEEN IN
THE CASE iii AN HYPOTHETICAL
DECISION
DECISION THAT HAVE BEEN THE DECISION THAT YOU
WHAT HAS BEEN DONE SO
TOKEN OR WILL BE TAKE IN THE (STUDENTS) CONSIDER
FAR…
CASE… SHOULD BE TAKEN
¿IS UNFAIR, MINIMUM FAIR, OR ¿IS UNFAIR, MINIMUM FAIR, OR CAN BE CONSIDERED FAIR OR
RESPONSIBLE? RESPONSIBLE? RESPOSIBILE? WHY?
WHICH
In the face of hypothetical decisions:
4.1. If the situation is unfair or minimally fair, what alternatives do I
have to correct or improve it?
4.2. If the situation is already minimally fair, should I and/or can I
improve it in any way? What alternatives do I have?
After identifying the problem of the case in one or more areas of
business ethics, and if the case presents a problem or a dilemma (for
example, the Volkswagen scandal), it is necessary to consider
alternative solutions. This means proposing action scenarios that are
worth reflecting on as a team. In other words, I should consider what
alternatives existed and how they would have turned out if they had
been effectively implemented, that is, the pros and cons of the
different action scenarios.
For example, if we think that the productivity problem is related to
labor ethics (area), but specifically to compensation and working
conditions, it is important to consider what can be done and what
consequences each alternative could have (for example, raising
salaries may increase the sense of organizational injustice). This
analysis can be depicted in a diagram like the one shown on the side.
And if the case has no conflicts and is already a case of success in good practices
Are there any related risks?
What happens if the case being analyzed is not a problem, scandal, or
dilemma, but rather an example of a good practice (for example, Nike
improves its working conditions)? In this case, it is not relevant to consider
scenarios, but risks. This means that if a decision is correct (for example,
Nike has effectively improved working conditions for its contractors in
China), it must entail some risk (increased production costs and
institutional responsibility risk).
HOW
¿How can I ponder
my proposal?
Finally, if I have considered action alternatives, it is important to justify the
one that seems best. That is, foreseeing (PROVISION) the most convenient
decision. This final critical analysis is not merely a discussion of viewpoints
but a relatively orderly process that responds to the integral parts of good
decision-making or prudence:
What has been done in similar circumstances and how has it turned out? /
EXPERIENCES & ADVICE
Regarding what would be done, is there any new way of doing things? /
INNOVATION & WITTEDNESS
What do the experts say? / MANAGEMENT SCIENCE (technical background
In this way, and after the entire
on operational, financial practice among others)
process of critical analysis, we
have moved from a correct
What would I find out to decide better? / INTELLIGENCE
assertion (“Madoff was
wrong") to an understanding
What sort of risk should I consider according to my decisions? / CAUTION &
of the reasons why it was a
RISK MANAGEMENT
bad practice, and furthermore,
to a solution analysis that can
materialize into a rather
concrete action plan.