Contents: Please note: The Instructor Guide for every chapter will follow this structure.

Solutions Manual for Managing Business Ethics Straight Talk about How to Do It Right, 7e Linda K.Trevino (All Chapters) 1 / 4

Managing Business Ethics, by L. Treviño & K. Nelson, 7 th Edition Chapter 1 Chapter 1

Introducing Straight Talk About Business Ethics: Where We’re Going and Why

Contents: (Please note: The Instructor Guide for every chapter will follow this structure.)

• Chapter Outline
• Discussion Questions – Teaching Notes
• In-Class Exercises
• Homework Assignments
• Additional Resources

Chapter Outline

I Introduction

II The Financial Disaster of 2008

• Borrowing Was Cheap
• Real Estate Became the Investment of Choice
• Mortgage Originators Peddled “Liar Loans”
• Banks Securitized the Poison and Spread It Around
• Those Who Were Supposed to Protect Us Didn’t

III Moving Beyond Cynicism

• The MBA Oath

IV Can Business Ethics Be Taught?

• Aren’t Bad Apples the Cause of Ethical Problems in Organizations?
• Shouldn’t Employees Already Know the Difference between Right and Wrong?
• Aren’t Adults’ Ethics Fully Formed and Unchangeable?

• Defining ethics • Good control or bad control?

V This Book Is About Managing Ethics in Business

VI Ethics and the Law

VII Why Be Ethical? Why Bother? Who Cares?

A. Individuals Are About Ethics: The Motivation to be Ethical

B. Employees Care: Employee Attraction and Commitment

• Managers Care About Ethics
• Executive Leaders Care About Ethics
• Industries Care About Ethics

F. Society Cares: Business and Social Responsibility

• / 4

Managing Business Ethics, by L. Treviño & K. Nelson, 7 th Edition Chapter 1 VIII The Importance of Trust

IX The Importance of Values

X How This Book Is Structured

XI Conclusion

XII Discussion Questions

XIII Exercise: Your Cynicism Quotient

Discussion Questions – Teaching Notes

• Before reading this chapter, did you think of ethics as "just a fad?" Why or why not?

What do you think now? Why?

Probes to Stimulate Discussion

• "If a roving reporter had stopped you last week on the street and asked you your opinion of the attention being given in the media to business ethics, what would you have said?"

• "Would you have said the same thing if the street had been Wall Street?"

• "Has your opinion changed since reading this chapter? Why?"

• "What three points would you use to respond to someone who claims that business ethics is a fad?"

• Have you been cynical about business and its leaders? Why or why not?

(See the following cynicism exercise.) How does cynicism affect you, as a business student or as a manager?

Probes to Stimulate Discussion

• "If you are cynical, name two instances that illustrate the source of your cynicism."

• "What about each of these instances makes you cynical?"

• "If you don't feel cynical, what is your opinion about the lapses in ethics represented by such practices as sexual harassment disclosures, attempted bribes, or skimming profits?”

• "What does your score on the "Cynicism Quotient" mean to you? Were you surprised by it?"

• “How does cynicism affect you, as a business student or as a manager?”

• / 4

Managing Business Ethics, by L. Treviño & K. Nelson, 7 th Edition Chapter 1 • "In what ways would the cynical attitudes of others influence your ethical behavior?"

• Can you think of something that is legal but unethical, or something that is ethical,

but illegal?

Probes to Stimulate Discussion

• “If something is legal but unethical, what do you think would be the best way to ‘manage’ it in the organization?”

• “Is it appropriate for an individual to act on personal ethical beliefs (e.g., pro-life beliefs) in a work organization? For example, would it be appropriate to picket your company for offering health care benefits for abortion?”

• Do you think business ethics is important? Why or why not?

Recall what was said in Chapter 1 about the cynicism of the public regarding business and

industry in light of the media coverage of their ethical lapses:

• Public holds contemptuous mistrust of many professional groups
• Prevalence of cynicism among managers and business students that employers do or

will require them to compromise their ethics

c. Causes of cynicism:

• Businesses' preoccupation with gain • Lack of reinforcement of ethical behavior • Competition • Acceptance of unethical practices within business and industry • Perception that only results are important • Ineffective enforcement of ethics codes

Although there are mixed research results regarding the claim that good ethics is good business, it behooves any intelligent organization to get and maintain an ethical image if they want to retain and increase their client base.

It is the social responsibility of organizations to conduct their business ethically, because they are role models for their employees and society at large.

Business ethics gives an organization the knowledge and skills necessary to:

• Set ethical standards for themselves and their employees • Establish policies and practices that support ethical behavior • Provide managers the tools to manage unethical behavior

Probes to Stimulate Discussion

• "Regarding the responses above, what was the basis of response #1?" (Economic concern)

• "What was the basis of response #2?" (Moral concern)

• / 4