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SUFFOLK UNIVERSITY SAWYER SCHOOL OF MANAGEMENT MBA 730 -- Managing in the Global Legal and Economic Environment SPRING 2002 Day(s)/Time(s): Tuesday 7:15-9:55pm Sawyer 1021
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Professor: John Neylon
Office: 101 Tremont Street, Boston, MA 02108
Phone: (617) 542-9091; 1-800-287-9092
Office Fax: (617) 542-8722
E-mail: john@neylonlaw.com
Course Syllabus
Course Description and Objectives
Tomorrow’s manager will face an increasingly complex, evolving, and highly competitive global business environment. To manage effectively, the manager must understand the dominant legal, economic, ethical and regulatory forces shaping the global marketplace, and know how these forces interact both to create and limit competitive opportunities. After identifying key environmental forces likely to affect tomorrow’s business, this course develops multi-disciplinary analytical techniques to examine and integrate those environmental forces for use as a strategic management tool. Illustrative contemporary case studies, which are briefly introduced during the first half of the course, later are reconsidered utilizing the analytical and integrative techniques developed in the course.
Course Overview and Pedagogy
This multi-disciplinary course is carefully designed to juxtapose competing ideological/philosophical viewpoints on the legal, economic and ethical environment of business with related business case studies. Resolution of the problems at the heart of each business case study typically requires mastering, grappling with, and trying to find appropriate accommodation among the competing underlying legal, economic and ethical principles. The process of arriving at accommodation further entails a high degree of integration of the various business and social forces at play. A mixture of lecture, class discussion, case analysis and a group project is used to relate principles to business cases. Films, simulations, and guest speakers may also be used in some sections of this course.
For example, in class 2 of the Class Schedule, Kelman’s piercing ethical critique of the pervasive practice of “cost-benefit” analysis is examined alongside the Ford Pinto case study in which Ford’s “bean counters” concluded that it would be less expensive to pay legal damages to injured victims than to recall millions of automobiles to correct the potentially deadly fuel tank defect.
In class 3 of the Class Schedule, Ayn Rand’s famous 1961 lecture on “America’s Persecuted Minority: Big Business” (delivered in Boston’s Ford Hall Forum), in which she called for repeal of United States antitrust laws, is juxtaposed with the current Microsoft Antitrust case study.
A comparable pattern of readings and cases is intended to be followed throughout this course.
Course Requirements and Grading
At the discretion of the instructor.
Reading Materials
The reading materials for this course consist of a textbook, a publisher-customized reading packet, Jennings 5th ed., supplemented with additional materials at the discretion of the instructor. It is not expected that all of the included text and case materials will be covered in every class section. The materials are intentionally broad enough to provide individual instructors with reasonable latitude in selection and treatment.
* These materials must be covered in every section of the course.
Required Text
M. Jennings, Business: Its Legal, Ethical and Global Environment (5th ed. 1999 Southwestern)
* Chapter 1 – “Business: Its Legal, Ethical and Judicial Environment”
* Chapter 2 – “Business Ethics and Social Responsibility”
* Chapter 3 – “The Judicial System”
* Chapter 4 – “Managing Disputes: Alternative Dispute Resolution and Litigation Strategies”
* Chapter 5 – “Business and the Constitution”
* Chapter 6 – “Administrative Law”
Chapter 7 – “International Law”
Required Customized Reading Packet (Irwin/McGraw-Hill)
1. B.R. Schiller, Essentials of Economics (3rd ed. 1999 Irwin/McGraw-Hill)
* Chapter 1 – “The Challenge of Economics”
* Chapter 9 – “Government Intervention”
* Chapter 10 – “Macroeconomics: The Business Cycle”
* Chapter 11 – “Macroeconomics: Aggregate Supply and Demand”
* Chapter 15 – “Macroeconomics: Economic Growth”
2. L. P. Hartman, Perspectives in Business Ethics (1998, Irwin/McGraw-Hill)
* (a) S. Kelman, “Cost-Benefit Analysis: An Ethical Critique” (pages 35-40)
* (b) Ayn Rand, “America’s Persecuted Minority: Big Business” (pages 84-87)
* (c) R.E. Freeman, “A Stakeholder Theory of the Modern Corporation” (pages 171-181)
* (d) Milton Friedman, "The Social Responsibility of Business is to Increase Profits" (pages 246-251)
* (e) Adam Smith, “The Wealth of Nations” (pages 286-291)
* (f) The Ford Pinto Case (pages 340-356)
* 3. H. Vernon, Business and Society: A Managerial Approach (6th ed. 1998 Irwin/McGraw-Hill), Chapter 3 – “Strategy Implementation and Evaluation”
* 4. T. McAdams, Law, Business and Society (5th ed. 1998 Irwin), Chapter 1 – “Capitalism and the Role of Government”
* 5. G.A. Steiner and J.F. Steiner, Business, Government and Society: A Managerial Perspective (9th ed. 1999 Irwin/McGraw-Hill)
Chapter 5 – Case – “Union Carbide Corporation and Bhopal”
Chapter 6 – Case – “Levi-Strauss & Co. in China”
Chapter 7 – Case – “Dow Corning and Breast Implants”
* Chapter 9 – Case – “Airline Deregulation”
* Chapter 10 – Case – “Microsoft and Antitrust”
* Chapter 12 – Case – “North American Free Trade Agreement”
Chapter 13 – Case – “Caterpillar Inc. and Global Competition”
* Chapter 15 – Case – “Asbestos Litigation Bankrupts Manville”
Chapter 16 – Case – “Advertising Alcohol and Tobacco”
Chapter 17 – Case – “Drug Testing in the Workplace: Employer’s Rights and
Employees’ Rights”
Chapter 18 – Case – “Civil Rights at Work”
6. R. Grosse and D. Kujawa, International Business: Theory and Managerial Applications (3rd ed. 1995 Irwin)
Chapter 20 – “Doing Business in Industrialized Countries”
Chapter 21 – “Doing Business in Less-Developed and Formerly Communist Countries”
7. Wallace Mendelson, “Law and the Development of Nations,” 32 Journal of Politics 223 (1970).
8. Thomas G. Marx, “The Cost of Living: Life, Liberty and Cost – Benefit Analysis,” Policy Review (1983).
* 9. Keith Davis, “The Case for and Against Business Assumption of Social Responsibilities,” 16 Academy of Management Journal 312 (1973).
*10. David Silverstein, “The Litigation Audit: Preventive Legal Maintenance for Management,” 31 Business Horizons 34 (1988).
CLASS SCHEDULE
Date Topic, Readings, and Class Activities
I. LEGAL AND ECONOMIC FOUNDATIONS OF BUSINESS ETHICS AND GLOBAL CORPORATE SOCIAL RESPONSIBILITY
(Legal, Economics and Ethical Content)
Week 1 A. Economic, Ethical and Legal Aspects of Social Responsibility –
(1/15/02) Introduction
(1) Adam Smith, “The Wealth of Nations” (Reading Packet)
(2) Milton Friedman, “The Social Responsibility of Business is to Increase its Profits” (Reading Packet)
(3) Overview of Coming Attractions – (CHP 1 & 3) Various Ethics Code
Week 2 B. Principles and Illustrative Case Studies
(1/22/02)
(1) Jennings Text, Chapter 2 – “Business Ethics and Social Responsibility”
(2) Davis, “The Case for and Against Business Assumption of Social Responsibilities” (Reading Packet)
(3) Kelman, “Cost-Benefit Analysis: An Ethical Critique” (Reading Packet)
(4) Relevant case studies (instructor’s selection) – Suggestion: “Ford and the Pinto Automobile” Update – Ford/Firestone
(5) Enron – cf- Business Week, The Economist
II. BUSINESS OPERATIONS UNDER AMERICAN AND FOREIGN LEGAL SYSTEMS
(Legal Content)
Week 3 A. Business and Legal Process
(1/29/02)
(1) Jennings Text, Chapter 1 – “Business: Its Legal, Ethical and Judicial Environment”
(2) Rand, “America’s Persecuted Minority: Big Business” (Reading Packet)
(Student Volunteer Re: Other Rand Readings)
(3) Relevant case study (instructor’s selection) – Suggestion: “Microsoft and Antitrust” See chapter 16 of Jennings where this is covered as well also finding of fact, conclusions of law , trial court, appellate court, federal proposed settlement available on internet – try usgov.doj.antitrust.
Week 4 B Business and the Court System
(2/5/02)
(1) Jennings Text, Chapter 3 – “The Judicial System”
(2) Relevant case study (instructor’s selection) – Suggestion: “Dow Corning and Breast Implants”
Week 5 C. Management Aspects of a Civil Litigation/Alternative Dispute
(2/12/02) Resolution
(1) Jennings Text, Chapter 4 – “Managing Disputes: Alternative Dispute Resolution and Litigation Strategies”
(2) Relevant case study (instructor’s selection) – Suggestion: “Asbestos Litigation Bankrupts Manville”; FAS (B) #5’s role.
D. Business and the Administrative/Regulatory Process
(1) Jennings Text, Chapter 5 – “Business and the Constitution”
(2) Jennings Text, Chapter 6 – “Administrative Law”
(3) Relevant case study (instructor’s selection) – Suggestion: “Airline Deregulation”
Week 6 TEST I
(2/19/01)
Week 7 E. Business and International Law/Adapting to Varying Global
(2/26/02) Commercial Rules
(1) Jennings Text, Chapter 7 – “International Law”
(2) Relevant case study (instructor’s selection) – Suggestion: “North America Free Trade Agreement”
(3) Consideration of Euro’s Impact on EU
(Ethical Content)
Week 8 A. Stakeholder Analysis – Theories, Practices and Limitations
(3/5/02)
(1) Freeman, “A Stakeholder Theory of the Modern Corporation” (Reading Packet)
(2) Relevant case study (instructor’s selection) – Suggestion: “Advertising Alcohol and Tobacco”
B. Applications: Social Assessment Process/Social Assessment Matrix
(1) Vernon, Chapter 3 – “Strategy Implementation and Evaluation” (Reading Packet)
(2) Relevant case study (instructor’s selection) – Suggestion: “Levi Strauss & Co. in China”
Week 9 Jennings Chapters 9-10 – Business Torts & Products Liability
(3/12/02)
(3/19/02) NO CLASS – SPRING BREAK
Week 10 Jennings – Chapters 11 - Environmental
(3/26/02) Chapter 15 – Intellectual Property
(4/02/02) Quiz #2
IV. ECONOMIC FORCES IN THE GLOBAL BUSINESS ENVIRONMENT
(Global Economics Content)
Week 12 A. Economic Fundamentals of the Global Economy
(4/9/02)
(1) Schiller, Chapter 1 – “The Challenge of Economics” (Reading Packet)
(2) Schiller, Chapter 10 – “Macroeconomics: The Business Cycle” (Reading Packet)
Week 13 B. Global Competitiveness Under Alternative Macroeconomic Models
(4/16/02)
(1) Schiller, Chapter 11 – “Macroeconomics: Aggregate Supply and Demand” (Reading Packet)
Chapters 9, 15 Schiller
(2) McAdams, “Capitalism and the Role of Government” (Reading Packet)
(3) Mendelson, “Law and the Development of Nations” (Reading Packet)
(4) “Microsoft and Antitrust” Case Revisited
C. Growth, Public Policy and Economic Regulation in Mixed Economies
(1) Schiller, Chapter 9 – “Government Intervention” (Reading Packet)
(2) Schiller, Chapter 15 – “Macroeconomics: Economic Growth” (Reading Packet)
(3) Marx, “The Cost of Living: Life, Liberty and Cost – Benefit Analysis” (Reading Packet)
(4) “Airline Deregulation” Case Revisited
Week 14 D. Business Applications of Economic and Regulatory Fundamentals in
(4/23/02) Industrialized and Emerging Economies - Profiting from Varying
Global Commercial Rules
(1) Grosse & Kujawa, Chapter 20 – “Doing Business in Industrialized Countries” (Reading Packet)
(2) Grosse & Kujawa, Chapter 21 – “Doing Business in Less – Developed and Formerly Communist Countries” (Reading Packet)
(3) “North American Free Trade Agreement” Case Revisited
Student Volunteers – Economic Characteristics of Certain Countries
Week 15 Final - TBA
(4/30/02)
Other Possible Adds/Drops
SYNTHESIZING LEGAL AND ECONOMIC FORCES IN THE GLOBAL ENVIRONMENT
(Legal, Economics and Ethical Content)
Week 13/14 A. Adapting to a Changing Global Legal and Economic Environment
(1) Silverstein, “The Litigation Audit: Preventive Legal Maintenance for Management” (Reading Packet)
(2) “Asbestos Litigation Bankrupts Manville” Case Revisited
B. Additional Selected Case Studies and Legal Materials
1. Environmental Regulation
(1) Jennings Text, Chapter 11 – “Environmental Regulation”
(2) Related case studies (instructor’s selection)
2. Product Safety Regulation
(1) Jennings Text, Chapter 9 – “Negligence”
(2) Jennings Text, Chapter 10 – “Development of Product Liability”
(3) Related case studies (instructor’s selection)
3. Employee-Management Regulation
(1) Jennings Text, Chapter 18 – “Management of Employee Welfare” and “Labor Unions”
(2) Jennings Text, Chapter 19 – “Employment Discrimination”
(3) Related case studies (instructor’s selection)
4. International Business Regulation
(1) Jennings Text, international/global portions of chapters 9-11, 18 and 19
(2) Related case studies (instructor’s selection)
Summary of Course Content
Total Class Sessions: 13/14 Sessions
Legal Content 6 Sessions (46%)
Global Economics Content 5 Sessions (39%)
Ethics Content 2/3 Sessions (15%)