1. The Importance of Commitments: A Case Study of a Broken Promise

2. Summarize the reasons that might justify Jesse’s actions.

3. Summary of Reasons
He needed to secure a position for economic reasons (student loans)
People change their minds all the time
Potter can fill the position easily
The offer was made 16 months in advance of start date
Jesse gave four months notice
Jesse worked for too many supervisors
Jesse was pressured to accept the offer from Daschow
Potter merged with another firm after Jesse’s internship ended

4. Summarize the reasons that suggest Jesse’s actions were wrong.

5. Summary of Reasons
A promise represents a commitment. People should honor their commitments
Jesse was “gaming the system” by accepting this job as a “safety net” until something better came along
Jesse only cares about himself. His resignation letter was perfunctory and selfish
Jesse’s actions tarnish his reputation
Jesse’s actions jeopardize other students’ chances of getting an internship with Potter
If Jesse breaks his commitment it could tarnish the University, other students, and alumni

6. What could Jesse have done differently?

7. Options Do not accept the offer in the first place.
Discuss concerns with Dr. Goodkin prior to accepting offer from Potter
Meet face-to-face with Daschow to explain problem and actions
Meet with Dr. Goodkin after receiving Bancroft offer
Request an extension of time before accepting offer from Potter

8. How could the overall system be improved?
Generally speaking, how does the context of the recruiting situation create pressures on students and employers?
How could the overall system be improved?

9. Situational Context Students Recruiters
Feel pressure to land a job after graduation
A “bird in the hand is worth two in a bush”
Authority figure wines and dines you making it tough to say no
Recruiters
Competition for top-tier students is intense
Firm personnel feel pressure to land interns for full-time employment
If we wait too long to fill up our hiring needs we may eventually be understaffed.

10. An ethical decision is one that…

11. Ethical Frameworks
Utilitarian approach: Ethical actions provide the most good for stakeholders and do the least harm to stakeholders
Rights approach: Ethical actions protect the moral rights of those involved.
Fairness approach: Ethical actions treat all human beings equally, or if action is unequal it is based on a defensible standard
Common good approach: Ethical actions exhibit compassion for all others, especially the vulnerable.

12. What is your step-by-step process for making decisions with embedded ethical dilemmas?

13. Ethical Decision Making
Step 1: Gather all pertinent facts
Step 2: Define all of the stakeholders who will be affected by the decision
Step 3: Define the possible courses of action
Step 4: Define the impact of each course of action on each stakeholder group
Step 5: Seek guidance from external references
Codes of conduct, Credos, Confidants

14. Ethical Decision Making
Step 6: Engage affected parties in a discussion of the issues
Step 7: Contemplate if your moral judgment is being clouded (obedience, bystander, peer pressure, etc.)
Step 8: Are there possible real options?
Step 9: Make decision based on all available information and your value system
Step 10: Reality check (visibility generality, etc.)

15. How might the framework on the prior two slides have helped Jesse?

16. What would be the key components of your code of conduct?
Would a formalized code of conduct for the recruiting process be useful for students and recruiters?
What would be the key components of your code of conduct?

17. Leventhal School of Accounting at USC: A Code of Conduct

18. What would be the key components of your corporate code of conduct?

19. Corporate Codes of Conduct
Fiduciary (diligence and loyalty)
Property (protection and theft)
Reliability (contracts, promises, and commitment)
Transparency (Truthfulness, disclosure, candor, and objectivity)

20. Corporate Codes of Conduct
Dignity (Respect, confidentiality, learning and development, and association & expression)
Fairness (dealing, treatment, competition, and process)
Citizenship (Laws, public goods, and civic contribution)
Responsiveness (address concerns and public involvement)

21. What implications does The Parable of the Sadhu have for effective business management?