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UGBA 107: The Social, Political, and
Ethical Environment of Business

Week 6: Mar 14th, 2025

Agenda

● Admin
● Midterm Review
○ Logistics + Grading
○ Content
○ Let’s Practice: Sample Midterm
● Q+A
 Dates + Announcements
• No Section until Apr 11th
• Midterm: Monday, Mar 17th in class
• GSIs will not be answering emails about the midterm after 5PM
tomorrow
• Research Paper: Apr 7th
UGBA107 Course Roadmap

Politics &
Ethics
Regulation
(2 weeks)
(2 weeks)
Historical The
setting Environment
(1 week) Corporate The (1 week)
Social Stakeholders’
Responsibility View
(2 weeks) (2 weeks)
midterm
Let’s chat about the…

MIDTERM
Agenda

● Admin
● Midterm Review
○ Logistics + Grading
○ Content
○ Let’s Practice: Sample Midterm
● Q+A
 Midterm Logistics
When is the exam? What are the core expectations?

● Monday Mar 17 ● Read the fact pattern thoroughly!

● You will most likely need the full 2 hours ● ANSWER THE PROMPT - If it asks for an opinion or to answer a
specific question, give one…
What do you need for the exam? ● Use ALL of these frameworks in your analysis:
○ Ethical Frameworks: Deontology, Distributive Justice,
● Blue Book or Green Book Utilitarianism
● Writing Utensils (Prefer pen, can bring ○ CSR Lenses: Friedman and Haas
highlighters) ● It's in your best interest to discuss nuances or why the framework/
● Closed note, closed book (no class materials perspective is not a perfect fit for the case!
allowed) ○ If they pass the bill, use the tech, sell the product then..
○ If they do not pass the bill, do not use the tech, do not sell the
How should I structure my exam?
product then..
● It’s an ESSAY! You will lose points if you do not ● Solution and conclusion - Have a POV when presenting your
use full sentences or if you use bullets. concluding solution. This should be its own brief paragraph.
● Write in a logical, flowing format with a thesis, ● Hand in your exam to me and sign your name on the sheet
analysis, conclusion, etc. in multiple
DSP Students - Make sure to coordinate with the DSP office ASAP if you haven’t
paragraphs.
already.
Midterm Grading Criteria

Uses and defines ALL 5 frameworks (Utilitarianism,

Knowledge Deontology, Distributive Justice, Haas and Friedman)
and applies them correctly to each outcome.
Stakeholder interests are analyzed. All 5 frameworks
are applied using relevant principles from class and
Thoroughness
specific details from prompt. Any questions stated in
the prompt are answered.
Analyses are rational and well-organized. Arguments
Structure & Clarity
are clear and concise.
Writing Tips
● Make your thesis clear at the beginning - what is your answer to the prompt? If it asks you to
take an opinion, take an opinion!
● Use paragraphs with topic sentences to structure your analysis
● Feel free to underline, highlight and use formatting as you think might be helpful to clearly
structure your writing, but do write in full sentences.
● Not every detail from the case is needed for every framework; use what is relevant.
Discussion of some frameworks will not necessarily be as lengthy as others.
● Cover every framework (including definitions), but not every single principle will be relevant
to making your argument or analysis; use what makes sense while remaining thorough. Do
NOT throw spaghetti at the wall and hope it sticks.
● Citing the readings is not required to build a strong argument; all evidence you need is in the
case. If you cite to the readings, make it clear what support it brings.
Agenda

● Admin
● Midterm Review
○ Logistics + Grading
○ Content
○ Let’s Practice: Sample Midterm
● Q+A
Components

Ethical Frameworks CSR

Stakeholder 1. Utilitarianism Perspectives
Thesis 2. Deontology (at least Conclusion
Analysis 1. Friedman
3 relevant principles)
3. Distributive Justice 2. Haas
Ethics Review - Turn to Your Neighbor

Quiz each other on the definitions of

the three main ethical theories and
7 rules of deontology
Ethics Toolkit
Ethics Rubric
Framework/Theory What to cover in analysis

Utilitarianism ● Correct definition

● Specify rule vs act utilitarian application (recommend focusing on act)
● Majority defined accurately
● Cost vs. benefit analysis
● Short-term vs. long-term implications

Deontology ● Overall concept explained

● At least 3 rules mentioned, defined and applied
● Ideally discusses contradiction if there is one (which rules support/don’t
support)

Distributive justice ● Correct definition

● Least advantaged group defined and argued
● How they benefit
● How they are harmed
Two Perspectives: Haas + Friedman
Haas Friedman

“Increasingly consumers are holding corporations “There is one and only one social responsibility of
accountable, not only for their products and business—to use its resources and engage in
services, but also for how they are made and how activities designed to increase its profits so long
they're marketed. Consumers want more than as it stays within the rules of the game, which is to
growth and shareholder value from business. say, engages in open and free competition without
They also expect good corporate citizenship. deception or fraud.”
Great brands and businesses are built through a
combination of two things continuously providing
superior products and services and earning the
trust of consumers employees and the
communities in which they operate. This is the
formula for sustained business success.”

These are not necessarily a binary!

Agenda

● Admin
● Midterm Review
○ Logistics + Grading
○ Content
○ Let’s Practice: Sample Midterm
● Q+A
Mr. Magoo Motors Case
Step 1: Underline the Basic Facts
● US Auto Accidents: 40,000 Deaths (1M+ worldwide), 4.5M serious injuries, $1 trillion in costs
● AV expected to drastically reduce these numbers
● Decision: When a pedestrian blindly stumbles into oncoming traffic, what should DJ, the head
computer programmer, program the AV (with only 1 passenger, me) to do?
○ Do Nothing:
■ (1) Hit + probably kill pedestrian → 1 possible death
○ Do Something:
■ (2) Swerve into brand new $200K Maserati → 2 possible deaths or serious injury +
damage to both vehicles
■ (3) Swerve into brick wall + probably kill me (the passenger) → 1 possible death +
damage to 1 vehicle
■ (4) Apply brakes + be hit by an old Chrysler minivan → 2 possible deaths or serious injury
+ damage to both vehicles
● Prompt: Advise DJ as to the ethical considerations of the decision he is faced with. Also, advise Mr.
Magoo Motors about issues of corporate social responsibility for the Numbat and how DJ’s
decisions will affect the goal of widespread use of autonomous vehicles
 Apply the Theories!
Work with a partner on filling in the handout
5 Minutes
Stakeholder Analysis
Who are the main parties impacted by this decision and what are their interests? Let’s focus
on the non-obvious ones…

Most Likely
Stakeholder Interests
Preferred Decision
 Stakeholder Analysis
Who are the main parties impacted by this decision and what are their interests? Let’s focus
on the non-obvious ones…

Most Likely
Stakeholder Interests
Preferred Decision

Consumers Cars that keep them safe (1)

Government Reduce auto accidents (they cost $35B annually) (1)

The cheapest accident for the lowest payout (aka take out the Probably (1), but
Insurance Companies
Toyota Corolla, not the Maserati) maybe (3) or (4)

Healthcare Industry Keep costs down (accidents are expensive) - least # injured (1)

Environment + General Public Reduce greenhouse gas emissions (1)

How would an Act Utilitarian view this?
● Definition: Greatest benefit for the greatest # of people –
Morality is on the effect of a good action that benefits most
people
● Who is the majority?
● Decision of doing something (programming the car to swerve)
○ Cost:
■ Short-Term?
■ Long-Term?
○ Benefit:
● Cost >< Benefit? → Which decision?
How would an Act Utilitarian view this?
● Definition: Greatest benefit for the greatest # of people – Morality is on
the effect of a good action that benefits most people.
● Who is the majority? General Public
● Decision of doing something (programming the car to swerve)
○ Cost:
■ Short-Term: Kills potentially more than 1 person, damages
cars
■ Long-Term: Who would buy a car that is programmed to kill
them? → No one buys AVs → Overall auto accidents
remain high
○ Benefit: Save the pedestrian
● Cost (Reducing 40K deaths) > Benefit (Saving a few pedestrians) →
Utilitarian would recommend protecting the AV driver due to long-term
impact, so decision #1
How would a Deontologist view this?

● Concept: Do the right thing, Fidelity

motive/intention matters
● What are the rules that apply here? Reparations
How? What do they support?
Gratitude
Justice
Beneficence
Self-improvement
Nonmaleficence
 How would a Deontologist view this?

● Concept: Do the right thing, motive/intention Fidelity

matters
● What are the rules that apply here? How? What Reparations
do they support?
○ Fidelity (keeps promises and fulfills
Gratitude
contracts): MMM has a contract with its Justice
buyer to protect them → Option #1
○ Beneficence (seeks to benefit others): Try to Beneficence
reduce overall auto deaths → Option #1
Self-improvement
○ Nonmaleficence (avoids injury to others):
Shouldn’t intentionally swerve and potentially Nonmaleficence
kill others → Option #3
How would a Distributive Justice theorist view this?

● Definition: Protect the least advantaged

● Who is the least advantaged group? Why?
● Decision of doing something (programming the car to swerve)
○ How do they benefit?
○ How are they harmed?

JUSTICE
JOHN RAWLS
How would a Distributive Justice theorist view this?

● Definition: Protect the least advantaged

● Who is the least advantaged group? Pedestrian
○ Why? Don’t have a car (at least in this situation)
● Decision of doing something (programming the car to
swerve)
○ How do they benefit? They don’t die
○ How are they harmed? Emotional damage of
causing a car crash
○ Benefit > Harm → Distributive Justice theorist
would most likely support the 2nd (Maserati) or JUSTICE
JOHN RAWLS
3rd option (brick wall)
How would a Distributive Justice theorist view this?

● Definition: Protect the least advantaged

● Who is the least advantaged group? General Public
○ Why? Dying from auto accidents + climate change
● Decision of doing something (programming the car to
swerve)
○ How do they benefit? A few drivers protected from
potentially not killing a human
○ How are they harmed? Who would buy a car that is
programmed to kill them? → No one buys AVs → Overall
auto accidents remain high JUSTICE
○ Benefit < Harm → Distributive Justice theorist would JOHN RAWLS
most likely support the 1st option (pedestrian)
What would our CSR Theorists think?

Businesses should do It’s not up to businesses to

what they can to solve society’s problems;
improve the that’s the government’s job. If
profits increase, I’m for it.
community in which
they operate!
What would our CSR Theorists think?

Haas Friedman

● What is the best for society ● Who would buy a car that is
overall? We want people in programmed to kill them? → No
autonomous vehicles as they one buys AVs → MMM loses
drink and drive and crash, but profit → Option #1
they won’t buy AVs that are
programmed to kill them, so
Option #1
Common Pitfalls
● Writing before outlining.

○ Plan your answer and your time management before you start.

○ This response is somewhat different than your journals – how? Because of thesis expectations.. (but your critical analysis and
thinking if the same!)
■ For the midterm, a high level thesis is sufficient. You do not need to say whether something is ethical or not (you can.. but it's not required). You just need a
high level thesis (aka a stance). The midterm is much more of a personal opinion as opposed to the academic writing we did for journals. So, to align, here
are some example "theses" that is sufficient:
● I would suggest MMM critically look at the frameworks of Act Util, Deontology, and the countering views of CSR (Haas, Friedman)
● I would advise DJ to program the car..

● Reading the prompt too quickly or carelessly

○ The situation described will be intentionally dense. Read it multiple times, looking for tricky details and pitfalls.

● Self-indulging in opinions and quotations from reading or lecture.

○ This is not a test of how much you’ve memorized. This is a test of how well you can apply the concepts to a hypothetical situation.

● Forgetting about time

○ Leave extra time at the end to make sure you submit on time!
At Home Practice

You’re about ready to sign a big new client to a contract worth over
$50,000. Your boss is under a lot of pressure to increase sales. He
calls you into his office and tells you his job is on the line, and he
asks you to include the revenue for your contract in the sales
figures for the quarter that ends tomorrow. You know the contract
is a sure thing but the client is out of town and cannot possibly
sign by tomorrow. What do you do?
Q+A
Good luck – you will do amazing!
Have a great weekend!