University of New Hampshire

The Whittemore School of Business & Economics

MGT 701: BUSINESS, GOVERNMENT AND SOCIETY

William Naumes

Fall 2002

SYLLABUS

According to the catalog, this course deals with "Managerial problem solving relative to the ethical, economic, social, legal, political, and technical aspects of an organization's environment." It is designed to explore the forces, within and outside the organization, which affect business. A corporate decision often influences more than the internal allocation of resources. Stockholders, customers, the local labor market, and the physical environment may also feel changes. Political, legal or economic forces, foreign events, and technological change are factors beyond the firm's control that nevertheless must be considered during the planning process.

The objectives of this course are:

-To identify the various environments and "stakeholders" involved in different corporate issues.

-To identify and apply conceptual models ("theory") to concrete situations.

-To understand the implications of alternative decisions, for the firm and its stakeholders.

-To develop a personal frame of reference in dealing with issues so that you may move from a reactive to an anticipatory mode of behavior.

Course Format and Requirements

The primary instructional technique will be class discussion of cases and related readings. Many times the news will provide examples which are more striking than those in the book, and we will cover these current issues as well. Because of this format, class discussion will be an important component of the final grade. Discussion grades are based on a student's participation in class, both quantity and quality. This requires being prepared for class, including having read and thought about the assigned materials. The end of chapter cases and their questions are an important part of this process. Occasionally, there will be short written assignments that will count toward the discussion grade.

In addition, there will be three specific assignments. Two of these assignments will be in-class exams based on cases that will be handed out in advance. The exam dates are shown on the course outline. Exams will be held during the common exam period.

The final assignment is a group research paper and presentation on an issue appropriate to this course. It will involve library research, and may also include personal experience and/or contact with a company. It will cover an issue relating to some aspect of the external environment that affects business in general, or one specific industry. This assignment will be in two parts: a written case, and the solution to the case (analysis and recommendations) which will be presented in class and then written as a formal proposal. The analysis must consider all relevant stakeholders, and must present a proposed course of action. A list of recommended topics will be distributed during September, but a group may also develop its own topic. Further information will be provided in class. A topic proposal (minimum: one paragraph) and partial bibliography will be due on Tuesday, October 1. The case (factual) portion of the paper will be due on Tuesday, October 29. I will be happy to discuss topics, sources, etc., and to read drafts of both the case and the final paper. The analysis will be presented in class during the last two weeks of the semester (including the possibility of presentations during a 12:40-2:00 common exam period). The final paper will be due at noon on Tuesday, December 17.

Each project group will allocate the paper and presentation grades among its members, by turning in a list of the group members' names and the percentage each is to receive, signed by all group members, due at the time that the paper is turned in. If group members do not agree on the distribution, each person individually must turn in a signed sheet, allocating the grade among all group members. {An example of allocating the grade: Suppose a 4 person group gets a "B" on the paper. 4 people x 3.0 points (the grade) = 12.0 points to be allocated/ The percentages decided on by the group were 30%, 25%, 25% and 20%. 30% of 12 = 3.6 (an "A-"). 25% of 12 = 3.0 (a "B"). 20% of 12 = 2.4 (a "C+").}

Grading for the course will consist of the two case exams (20% and 25%), the term paper (35%), and class discussion (20%). There will be occasional short additional assignments, which will count as part of class discussion.

Extra Credit: Top managers are also expected to represent their company to the community. For many executives, this takes the form of Agiving something back,@ not just through financial contributions but also through personal activities. Any student in this course may earn extra credit by developing and carrying out an unpaid service project. For it to be counted for course credit (up to +10% for an individual or +5% for each member of a group), your project must be pre-approved by the instructor prior to Thursday, October 31^st, and a written description and evaluation of the project and its impact must be turned in on or before the last day of class.

WHITTEMORE SCHOOL OF BUSINESS AND ECONOMICS

Management 701

Business, Government and Society

Professor William Naumes Fall 2002

Office: McConnell 415 Office Hours: T-Th 9:30-10:30

Communication: 862-2618 (o) and by appointment

868-7080 (h) bill.naumes@unh.edu

Text:

James E. Post, Anne T. Lawrence & James Weber, Business and Society: Corporate Strategy, Public Policy, Ethics, 10^th ed. (McGraw-Hill, 2002)

Reading packets should be purchased at the McConnell Hall Copy Center, Room 105. (R)

It is strongly recommended that you read The Wall Street Journal, Business Week, Fortune, or some other business periodical on a regular basis.

Course Outline

Introduction and Requirements

9/03 Post, ch. 1, AThe Corporation and Its Stakeholders"

Changes in the business environment have been increasing at a rapid rate, requiring managers to become more in tune with their environment and to understand what those changes do to their decision making capabilities. This section outlines what some of those impacts are and describes how the text readings will focus on those issues.

The Corporation in Society

9/05 Post, Chapter 2: ABusiness and Public Issues@

Case: ATaking the Rap for Corporate Values@ (Hand out)

This chapter looks at the importance of the external environment, and at the need for the organization to actively manage its relationships with stakeholders and its handling of public issues.

Instructions for the "Taking the Rap" case will be given in class on the first day.

Business and the Social Environment

9/10 Post, Chapter 3: ACorporate Social Responsibility"

The definitions and base of the concept of the link between Business and Society are defined. The precedents for the modern link between Business, Government and Society will be discussed through a quick trip through several thousands of years of recorded history.

Written assignment: What is the most difficult decision that you have had to make? Pick a decision. In one paragraph, briefly describe the facts of the decision. In the second paragraph, describe why this decision was difficult to make.

9/12 Post, Chapter 4: ASocially Responsible Management@

Naumes, Kammermeyer, Naumes, ASocial Entrepreneurship...@ (R)

Steve Kerr, AOn the Folly of Rewarding A While Hoping for B@ (R)

There are multiple views concerning how a corporation should act if it is to be socially responsible. Using the text and the articles as starting points, we will debate these issues. Members of the class will be assigned different points of view. Questions will include: What is the minimum appropriate level of social responsibility? What stakeholders should be considered? The roles of objectives, expectations and environmental concerns are discussed and explored. We will look for examples of companies which practice different levels of corporate social responsibility.

Corporate Governance and Stakeholders

9/17 Post, Chapter 14: "Stockholders and Corporate Governance"

CASE: AColumbia/HCA and the Medicare Fraud Scandal@ (pp. 524-535)

List of Project Group members due

Millions of Americans are stockholders, directly or via their pension funds. Although its stockholders are the owners of the corporation, they typically do not manage the company, or even set its strategic direction. What, then, are the responsibilities of the Board of Directors, elected by the stockholders to represent their interests, and of top management?

At Columbia/HCA, there have been allegations that top management has behaved unethically. Looking at its Board of Directors, consider whether the Board has control over top management. What types of interests or expertise would you like to see on Columbia=s Board, if you were a stockholder? How would you evaluate the company=s response to stockholder (and stakeholder) pressures?

Business Ethics

9/19 Post, Chapter 5: AEthical Dilemmas in Business"

Allport Vernon Lindzey Study of Values (Hand out)

AManagerial Responsibility Form@ (Hand out)

What types of conflicts in ethical reasoning occur in everyday business life? How do managers face these dilemmas? What is the long term impact of these decisions? Apply these issues to your own daily life! We will use the Study of Values and the Managerial Responsibility form as the basis for discussing business and personal values.

9/24 Post, Chapter 6: AEthical Reasoning and Corporate Programs"

CASE: "Hannah Sullivan" (R)

Selection of project topics

What are the conceptual types of ethical response systems that are available to managers? How might managers evaluate the positions in which they find themselves? What impacts might their decisions have on themselves, their companies and their environments?

Analyze the issues involved in Hannah Sullivan=s dilemma. What are her alternatives? On what basis should she make a decision? What is the likely impact of any decision she might make?

Business and Government in a Global Society

9/26 Post, Chapter 7: ABusiness and Public Policy"

Henry Mintzberg, "Who Should Control the Corporation?"(R)

CASE: "Protecting Human Food Supplies@, pp. 181-183

There are a number of alternative ways in which government and business can interact. They are based on different assumptions concerning businesses' freedom to make decisions and government's role to represent the interests of society in general.

The public policy issues raised in this case are in the news every week: to what extent should we, as consumers, be responsible for making smart choices about what we eat, or should we rely on governments, particularly the federal government, to protect us? European countries have raised the issue of genetically modified foods, not allowing these foods or ingredients to be imported. Should the U.S. take legal action to ban production? What are the positive aspects of these Agengineered@

foods?

10/01 Post, Chapter 9: AAntitrust, Mergers, and Global Competition"

Case: AThe Antitrust Case against Microsoft,@ pp. 548-557

Project topic paragraphs and bibliography due

The conflicting goals of competitive advantage and the desire for perfect competition are presented. Factors leading to market imperfections and anti competitive issues should be analyzed to determine the appropriate response of government legislation to control big business, especially in the context of an increasingly global, competitive environment.

Who are the stakeholders in the Microsoft antitrust decision? What are their positions, strength and interests? What are the benefits and disadvantages of each of the proposed remedies? What should be the response of Microsoft senior managers? We will be debating the impact of the Microsoft decision; you will be assigned a point of view for the discussion.

10/03 In-Class Case Analysis (exam) 12:40-2:00 PM

10/08 Post, Chapter 8: AManaging Business-Government Relations"

We will continue to look at the interactions between business and government, this time from the perspective of public policy. Instead of a case, we will look at one or more issues that are currently being debated in the media. We will also discuss what businesses can do to have an impact on governmental or political decisions concerning important issues.

The Corporation and the Natural Environment

10/10 Post, Chapter 10: AEcology, Sustainable Development, and Global Business@

AThe Kyoto Protocol@ (R)

Case: (Hand out)

Business and political leaders in the economically developed countries are becoming concerned with issues relating to the ability of the natural environment to sustain global economic development. Yet many of the developing countries appear to be still willing to sell their natural resources or accept pollution in order to build their economies.

President Bush has recently reversed the U.S.=s position on the Kyoto Protocol, a major international agreement on the environment, while protestors have repeatedly targeted meetings of the World Trade Organization and other summit meetings. Describe the stakeholders who are helped by agreements such as the Kyoto Protocol, and those who are hurt by it. Costs and benefits may be difficult to identify, depend on one=s point of view, and be difficult to measure. We will use a short case in-class to study the benefits and problems of Cost/Benefit Analysis.

10/15 Post, Chapter 11: AManaging Environmental Issues"

CASE: "Gustavson Farm@ (R)

The cost and benefits of environmental regulation and control are presented. The role of government in regulating and promoting environmental concerns and safeguards can be evaluated. These factors can be discussed in the context of potential opportunities of environmental controls and initiatives.

The environment affects us all. Sometimes the effects are more direct and important than others. Analyze the case from the perspective of John Gustavson. What is the impact of his neighbor=s actions on him? What constraints is he faced with in this situation? What are his options? What would you propose he do, and how should he implement your plan?

Business and Technological Change

10/17 Post, Chapter 12: ATechnology: An Economic-Social Force@

CASE: "Ethical Principles for E-Commerce@ (pp. 302-304)

Over the past century, technological change has created a world that is radically different than in previous decades or centuries. These changes continue to affect our society. However, the impact differs across industries and among countries. We will examine some of the current directions of technological change and the societal, governmental, and business issues that are raised.

E-commerce has become an important way for producers and sellers to reach buyers. It includes everything from producer/supplier linkages to on-line versions of traditional retailers (e.g.,Barnes & Noble.com) to all-internet companies such as Amazon.com and E-Bay. As retailers of all kinds prepare for the holiday buying season, we will use current issues to discuss the proposed AEthical Principles for E-Commerce@ that are described in the case.

10/22 Post, Chapter 13: AManaging Technological Challenges@

CASE: ANapster - Free Access or Musical Piracy?@ (pp. 324-326)

One of the important issues raised by new technologies is the ownership of information. This includes your personal information, as well as intellectual property such as patents and copyrights. The Internet makes information easily available, frequently at no charge to the user. How should the interests of inventors/artists be protected? What about the rights and interests of other stakeholders? To what extent do you believe that government action is necessary to resolve these issues? How should intellectual property be protected?

Responding to Stakeholders: Consumerism

10/24 Post, Chapter 14: AConsumer Protection@

CASE: ADoes This Milkshake Taste Funny?@ (R)

The consumerist movement in the United States has a long history. Key consumer protection laws and regulations as well as important issues being proposed and stressed by the consumerism movement are discussed. Managers may respond to competition and consumer demand in many different ways, depending on the other stakeholders involved, including government.

While George Stein is facing an ethical dilemma, Eastern Dairy also has ethical and consumer problems. What is the likely impact of the situation on Eastern Dairy=s customers? How does this situation measure up under the Consumer Bill of Rights? What government protection is available? What should Eastern Dairy do?

10/29 CASE: "Office Mart" (R)

Project case draft due

At times, a manager may feel the need to go beyond customers' demands and to be proactive, rather than reactive. How should Jim Tutwiler respond to the issues raised by the problems at Business Warehouse? Develop a list of alternatives for Jim. For each, consider its feasibility and its impact on key stakeholders.

Responding to Stakeholders: Employees and the Corporation

10/31 Post, Chapter 17: AEmployees and the Corporation@

CASE: "I Still Do My Job, Don't I?" (R)

Last day for pre-approval for extra-credit project

Employees are essential to the corporation's ability to create a product or service, and therefore, to carry out its mission and achieve its objectives. There are many laws and regulations which must be considered by both sides in the employer/ employee relationship. Over time, the relative importance of work and other aspects of life, particularly family issues, has shifted, with the impact often falling particularly on women.

Consider the problems at Yancey's Family Steakhouse of Nashville. Which problems are interrelated, or symptoms of a deeper problem? What can William Bonney personally do to resolve these problems? What needs to be done to prevent problems from reoccurring?

11/05 Post, Ch. 18: AManaging a Diverse Workforce@

Readings: (Hand out)

Guest Speaker: Pat Gormley, Affirmative Action Officer

Class may meet from 12:40 - 2:00 PM

Responding to Stakeholders: Business and the Community

11/07 Post, Chapter 16: AThe Community and the Corporation@

All businesses exist within one or more communities. They have neighbors, and are part of the economic life of the community. We will consider the nature of these inter-relationships, and the benefits and responsibilities on both sides. Does a business need to be a "good neighbor"? What are some of the ways in which businesses have responded to community needs? We will use Durham as one of our "cases".

11/12 No class - Monday Schedule

Global Issues

11/14 Post, Chapter 20: AGlobal Social Issues for a New Century@

CASE: ANike=s Dispute with the University of Oregon@ (pp. 570-580)

Revised Case due.

Up until this point in the course, we have primarily considered issues from a U.S. perspective. Increasingly, however, businesses must operate internationally. This means that they are likely to make decisions that will be carried out in economies that operate under different assumptions about the relationship between government and business. They will also need to consider the impact of cultural differences.

Although the two main groups in the Nike case are both U.S.-based, their dispute raises issues of global competitiveness and global equity. Many manufacturers in developed countries have shifted their production facilities to lower cost, less developed regions. Who has the ultimate responsibility for the wages and working conditions of these employees? We will look at this question from the point of view of different stakeholders, including Nike, human rights organizations, labor unions, and the governments of countries such as Indonesia and Thailand.

GROUP PROJECT INFORMATION

Management 701 ~ Fall 2002

The group project for "Business, Government and Society" will be an in-depth look at a topic involving multiple stakeholders and a managerial decision. Groups will consist of 4 or 5 people, and will choose their own topic. A list of recommended topics will be distributed, and groups may sign up for one of those topics after class on Tuesday, September 24. (I will have the list available at the end of class. One group per topic, first come- first served). If a group wishes to develop its own topic, it must meet with me by Tuesday, September 24. A paragraph giving key issues and stakeholders, and accompanied by a partial bibliography, is due on Tuesday, October 1.

The project is in three (3) parts, which will be evaluated separately. Each group will research and write its own case, which will be revised and used as the basis for the other two parts of the project. During the last two weeks of class, each group will make a formal presentation to the class, analyzing and making recommendations for the decision maker in its case. Finally, a written version of the analysis and recommendation, revised and expanded, will be due during exam week.

THE CASE is a description of the facts of the situation you are researching. It describes an actual dilemma or decision facing a real manager. The case should include:

$ the history and background of the issue;

$ a description of the organization;

$ a detailed description of the decision maker(s), including their position, background, and personal values

$ the internal and environmental factors that will affect the decision; and

$ information on the viewpoints of other significant stakeholders.

The case will be based on extensive library and web research. Multiple points of view must be included. Examples would be industry information and views about the issue; analysts such as stock analysts; customers; competitors; etc.

The case should not include your analysis, opinions, or recommendation. References, including footnotes or endnotes, are required. A checklist of the characteristics of an effective case is attached.

I will be happy to read drafts of your case at any time. A draft of the case is due on Tuesday, October 29, and will be graded (5% of the course grade). The case may be re-written, and will be handed out to the class to read in preparation for your presentation. The revised version for class is due on Tuesday, November 19.

THE PRESENTATION, which will be 15% of the course grade, will be about 30 minutes, with an additional 10 minutes for Q & A. It is a formal presentation, with appropriate dress, handouts, visual aids, etc. The project will be presented in class during the last two weeks of the semester (December 3, 5, 10 and 12). It may also be necessary to meet during the common exam period on either Thursday, December 5 or Tuesday, December 10.

Your audience for the presentation is the class. You can expect that the class will understand the basic facts, as they will have read your case prior to your presentation. The focus of the presentation is to help the class understand the important issues affecting your topic and your company. The presentation should include:

*a definition of the key problem(s) or significant issue(s);

*all relevant stakeholders (direct and indirect) and their relationship to the situation;

*alternative courses of action & the criteria for evaluating them;

*the group's recommended decision and how to implement it;

*the impact of the decision on the different stakeholders.

THE PAPER, which will be 20% of the course grade, will contain a more complete version of the material presented in class, and whatever additional information is necessary, relevant, or interesting. It will also incorporate responses to issues raised during the presentation. It will be in two sections, with the first section being the final version of the case (which may be a further revision to be re-graded).

The second section includes a complete analysis and recommendation. It must focus on the decisions that your company needs to make and must contain a specific, detailed recommendation. The analysis should be written as a unified paper (i.e., if written in sections by different people, please check for consistency, completeness, and repetition), and should contain sources and references. It should contain expanded versions of all of the points needed for the presentation. It should also address any significant issues that were raised during the Q & A period.

The final paper is due by noon on Tuesday, December 17.

ELEMENTS OF A WELL-WRITTEN CASE

This is not an all-inclusive checklist, but is intended to help you identify some of the most common trouble-spots in case writing. Depending on your objectives for the case, not all of these questions may apply.

Message

Is there a hook?

What are the key issues or learning objectives that students should identify?

Are there linkages to theory or models in your field?

Do the case characteristics match your chosen educational objective?

Details

Is there sufficient information for students to carry out your desired analysis?

Is there more information than needed? If so, is its purpose to lend realistic complexity?

to add interesting details?

to allow students to follow "red herrings" and make judgements?

Are there characters with whom students can identify?

Do the characters speak in their own words, when possible?

Is the material organized in a logical fashion?

Are there exhibits, with detailed explanatory material? If not, should there be exhibits?

Is the timing of events clear?

Style

Is the case entirely in past tense (except for direct quotes)?

Is the tone objective?

(i.e., no value judgements such as "obviously", "excellent manager", etc.

unless they are in direct quotes)

Does the case have "life"?