Professional Responsibility: Market, Ethics And Law
Fall and Spring Course

1. Overview
2. Guidelines for Classroom Discussion
3. Ethical Reasoning Tools
4. Schedule of Topics and Assignments

Overview

Objectives

This is a course in professional responsibility. It is designed to enable students to think critically about the broader context and consequences of the decisions they will make as professionals and managers. To this end, the course demonstrates that ethical considerations are important in the decision-making process. The course then develops analytical reasoning skills that enable the student to identify and weigh competing ethical concerns, and lastly, through specific examples and case discussion, the student is made aware of the importance of understanding the interdependence of markets, ethics, and law in a free market society.

The course also introduces a broad range of "non-market" issues encountered by managers and business professionals, and helps develop a set of analytical perspectives for making judgments when such issues arise.

More directly, students exercise professional ethical judgment through discussion and analysis. This requires the examination of cases, as indicated on the course outline. The readings accompanying the cases provide the ethical reasoning tools of analysis.

Preparation for Class

This is a case course. Accordingly, the student's primary obligation is to prepare for class discussions by thorough reading and analysis of assigned materials. Case discussions and in-class activities are the principal means to achieve the course's objectives. Adequate preparation involves four elements:

1. Cases and accompanying readings
2. Supplementary materials
3. Study questions
4. Memorandums

Cases and Accompanying Readings. This is a seven week course. The first week introduces the course, develops the concepts of ethical reasoning tools (ERTs), includes a number of readings which provide the fundamental ethical reasoning tools and the opportunity to analyze a case. Students should read all of the assigned articles which are found in the two appendices at the end of the text in the course and in the Supplementary Materials for the first week of the course.

In the six weeks that follow there are 12 modules each dealing with a different ethical issue. Students should read all of the cases listed in each module as well as the accompanying readings. Although the individual cases deal with a specific situation, they all contain information which contributes to finding an ethical solution.

Supplemental Materials. Prior to the week when an ethical issue is to be discussed the instructor will provide Supplementary Materials to amplify the information in the text. They are brief and should not be viewed as a substitute for the assignments in the text.

Study Questions. Each ethics module contains a series of Study Questions which serve to assist students in analyzing the cases and provide a useful structure for classroom discussion. Students are responsible for mentally preparing answers to these study questions before coming to class. The instructor may ask some students to provide their answers to these questions as a basis for discussing the case.

Memorandums. Students are required to submit four memorandums during the course. All students are required to submit a memorandum for the Gifts, Side Deals and Payoff Module or the Social Responsibility Modules which are assigned for the second week of the course. To be assured that memorandums are written on all four cases (two in each module) the instructor will assign them during the first class. This will provide all students with an early opportunity to analyze a case and receive feedback from the discussion of the cases in class and in the form of written comments on your memorandum. Since some students are uncertain as to what is required on the first memorandum, you have the option of submitting a fifth memo to replace the grade on the first one. All memorandums must be submitted prior to the discussion in class. Memorandums will be graded on a zero to ten basis and will be returned at the next class.

The remaining three memorandums may be selected from any of the remaining modules with the exception of the cases in the two classroom simulations - Moral Standards Across Borders: "The Oil Rig" case, and Sales Ethics in Financial Markets: "Commission on Sales at Brock Mason" brokerage case.

In preparing your memorandum, please keep the following in mind:

1. All memorandums must be submitted by the class when the subject (Module) is discussed. If for some reason you are unable to be present at the class the memorandum can be left in my mailbox or under my office door in the Economics Department Room 7-84 of the KMC, or faxed to my office (212) 995-4218. To avoid recurrent problems with Email attachments, no Email submissions will be accepted.
2. Confine your analysis to one of the cases in the Module.
3. Only one memorandum (case) can be submitted per Module.
4. Memorandums should be typed, double spaced and two to three pages in length. Abbreviations and acronyms may be used.
5. Study Questions should not as a rule be used to format your memorandums.

Simulations. To add a dynamic element to the course there will be two simulations during the semester. These involve the "Oil Rig" (Model #8, Moral Standards Across Borders) and "Commission on Sales at Brock Mason" (Module #10, Sales Ethics in Financial Markets) cases. Each simulation involves four students who volunteer to be principals in the case. The balance of the class serve as the decision making body. Students who choose to volunteer prepare oral testimony regarding the ethical issue at hand (two pro, two con). They are graded on the basis of their respective presentations. To encourage participation they receive credit for one written memorandum as well as class participation credit.

The balance of the class, which will constitute the decision making bodies (board of directors and arbitration panel), can earn class participation credit based on the questions they ask the respective witnesses as well as their comments and contributions to the deliberation process.

In addition to the information provided in the textbook (case texts and readings Modules #8 and #10). The instructor will provide supplementary material.

The "Oil Rig" simulation is scheduled for the fifth week of the course and the " Commission on Sales at Brock Mason Brokerage" on the sixth week of the course.

Classroom Discussion. Given the importance of classroom discussion it is important they be held in an effective and congenial manner. Please read and follow the attached guidelines.

Moreover, given the subject matter of the course it is natural that in the course of classroom discussions a variety of viewpoints will be expressed. This course is not designed to challenge students' respective views. Rather it seeks to instruct as to one's professional responsibilities. In this context it is the instructor's function to direct the discussion to the norms currently prevailing in society. He must also assure that all students in the class have an equal opportunity to contribute to the discourse.

Attendance. Ideally all students should attend every class. At the same time it is recognized that work pressures, illness or family obligations may prevent some students from doing so. It is better to attend part of a class than to miss an entire class.

The instructor would appreciate it if you are going to be late for a class or have to leave early for business or family reasons to let him know in advance.

Given that classroom discussions are a critically important part of this course, students who are absent from classes will suffer in terms of the learning process and in their grades.

Grading

Grade Distribution. Professional Responsibility is a core course. The Stern School suggested grade distribution for core courses is as follows:

It is recognized that particular sections may vary somewhat from the above schedule.

Text. B.S. Buchanan and Rachel Kowal, et al. Professional Responsibility: Markets, Ethics and Law. Latest edition.

Guidelines for Classroom Discussion

About Listening. This course relies heavily on classroom discussion so it is appropriate to give some thought to how we should go about it. The following is a short list of suggestions which will make our discussions more productive. Each class session lasts 170 minutes. During this time, you will spend at most 10 minutes speaking. The rest of the time, about 160 minutes, you will be listening. It is important, then, to listen well. It is recommended:

1. that you look at the person who is speaking
2. that you actively try to understand what he or she is saying
3. that you do not speak when someone else is speaking
4. that you do not raise your hand while someone else is speaking
5. that you always show patience and courtesy.

About Speaking. As noted it will not be possible for every student to speak during each class period. Thus, when you do get an opportunity to speak the time should be used productively. To this end the following is suggested:

1. that any time you speak you make one major point, not more
2. that you reference earlier comments, whenever appropriate
3. that you rely on cases and reading, not extraneous material
4. that you speak loudly and clearly to be heard throughout the room
5. that you express disagreements with courtesy and respect.

Ethical Reasoning Tools

1. Consequential Ethical Theories (CET)
2. Utilitarianism (U)
3. Nonconsequential Ethical Theories (NET)
4. Deontological Theories (DT)
5. The 4Rs of Professional Responsibility (4Rs)
6. Market Failures (MFs)
7. New Game Theory (NGT)
8. Why Good Managers Make Bad Ethical Choices (WGM…)
9. Optimum Ethical Outcomes (OPT)
10. Neutral Omnipartial Rule Making (NORM)
11. Employment at Will (EW)
12. Fiduciary Duties (FD)
13. Friedman's Social Responsibility Concept (FRS)
14. Stakeholder Analysis (SA)
15. Nemo.Dat Principle (NDP)
16. The Property Concept of the Corporation (PC)
17. The Social Entity Concept of the Corporation (SEC)
18. Trade Secret Protection (TSP)
19. De George's Conditions for Whistle Blowing (DGC-WB)
20. James' Checklist for Whistle Blowing (JC-WB)
21. Corporate Sentencing Guidelines (CSG)
22. Product Liability Law (PLL)
23. Moral Hazard (MH)
24. Donaldson's Algorithm (DA)
25. Fair Information Practices (FIP)
26. Limited Paternalism (LP)
27. SEC Insider Trading Rules 10b5 and 14e3 (10b5, 14e3)
28. EEOC Guidelines on Sex Discrimination (EEOC)

Schedule of Topics and Assignments