NBA 5140 - Ethics and Corporate Culture

(crosslisted) LAW 6392

Spring (second half of term). 1.5 credits. Letter grades only (no audit).

D. Radcliffe.

In the high-pressure worlds of business and law, all too often good people do bad things. In many cases, the unethical behavior is due in part to a toxic corporate culture. The attitudes, values, and practices that prevail in their organizations induce otherwise ethical employees to take actions that violate widely shared norms of conduct. Such behavior can be costly-even disastrous-leading to ruined careers, tarnished corporate reputations, and legal liability for the individuals and their companies. In an environment where “only results matter,” it can be difficult for a new MBA or law school graduate to recognize the risks. If she does see the dangers, she may still find it hard to avoid them. This course seeks to help MBAs and law students understand how a firm’s culture, combined with common human tendencies, can tempt-or push-employees into unethical behavior. It also considers how employees can meet ethical challenges posed by their firms’ cultures. Class sessions include discussion of case studies and readings reporting on relevant research in psychology and organizational behavior, as well as the annual Day Family Ethics Lecture by a noted guest speaker from business, law, journalism, or academia. The grade in the course is based on class participation and on two written case analyses, including a final project.