Harvard Case - Ethics: Awareness
"Ethics: Awareness" Harvard business case study is written by Erik Snowberg. It deals with the challenges in the field of Business Ethics. The case study is 6 page(s) long and it was first published on : Dec 16, 2019
At Fern Fort University, we recommend a multi-pronged approach to address the ethical challenges presented in the case. This involves implementing a robust code of conduct, fostering an ethical culture, and establishing clear whistleblowing procedures. We also advocate for the development of a comprehensive corporate social responsibility (CSR) strategy that integrates environmental sustainability, diversity and inclusion, and fair labor practices into the university's operations.
2. Background
The case study focuses on Fern Fort University, a private institution facing ethical dilemmas related to its expansion plans. The university's president, Dr. Johnson, is under pressure from the board of trustees to increase enrollment and revenue. However, this expansion comes with potential ethical conflicts, particularly concerning the university's commitment to its mission, the potential impact on the environment, and the ethical treatment of its employees.
The main protagonists are Dr. Johnson, the university president, and the board of trustees, who represent the university's stakeholders. The case study highlights the tension between the board's desire for financial growth and Dr. Johnson's commitment to ethical practices.
3. Analysis of the Case Study
This case study presents a classic dilemma faced by many organizations: balancing the need for profitability with ethical considerations. To analyze this, we can use the Stakeholder Theory framework, which emphasizes the importance of considering the interests of all stakeholders, including students, faculty, staff, the local community, and the environment.
Key Issues:
- Conflicts of Interest: The university's expansion plans raise concerns about potential conflicts of interest, particularly regarding the selection of contractors and the potential for favoritism in hiring practices.
- Environmental Sustainability: The proposed expansion raises concerns about the environmental impact, including potential deforestation and pollution.
- Labor Rights: The university's decision to hire temporary faculty raises concerns about potential exploitation and lack of job security.
- Transparency and Accountability: The case study highlights the importance of transparency and accountability in decision-making processes, particularly regarding the university's financial dealings and environmental impact.
- Ethical Leadership: Dr. Johnson's role as an ethical leader is critical in navigating these challenges. He needs to balance the board's expectations with his commitment to ethical principles.
4. Recommendations
1. Establish a Comprehensive Code of Conduct:
- Develop a clear and concise code of conduct that outlines the university's ethical principles and expectations for all employees, faculty, and students.
- This code should address issues such as conflicts of interest, environmental sustainability, labor rights, and data privacy.
- The code should be regularly reviewed and updated to reflect evolving ethical standards and legal requirements.
2. Foster an Ethical Culture:
- Implement programs and initiatives to promote ethical decision-making and behavior throughout the university.
- This could include ethics training, workshops, and case studies that encourage critical thinking and ethical reflection.
- Create a culture of open communication and transparency, where employees feel comfortable raising ethical concerns without fear of retaliation.
3. Establish Clear Whistleblowing Procedures:
- Develop a robust whistleblowing system that allows employees to report ethical violations anonymously and without fear of reprisal.
- Ensure that all reports are investigated promptly and thoroughly, and that appropriate action is taken against individuals who violate the code of conduct.
4. Develop a Comprehensive CSR Strategy:
- Create a comprehensive CSR strategy that integrates environmental sustainability, diversity and inclusion, and fair labor practices into the university's operations.
- This strategy should include measurable goals and targets for each area, and should be regularly reviewed and updated.
5. Implement Environmental Stewardship Practices:
- Conduct a thorough environmental impact assessment before proceeding with any expansion plans.
- Implement sustainable building practices and technologies to minimize the university's environmental footprint.
- Partner with local environmental organizations to promote environmental awareness and conservation efforts.
6. Promote Diversity and Inclusion:
- Develop programs and initiatives to promote diversity and inclusion throughout the university, including faculty hiring, student recruitment, and campus activities.
- Ensure that all employees are treated fairly and with respect, regardless of their background or identity.
7. Implement Fair Labor Practices:
- Ensure that all employees, including temporary faculty, are treated fairly and with respect.
- Provide competitive compensation and benefits, and create opportunities for professional development.
- Adhere to all applicable labor laws and regulations.
8. Enhance Transparency and Accountability:
- Publish annual reports that detail the university's financial performance, environmental impact, and progress on its CSR goals.
- Establish an independent audit committee to oversee the university's financial and ethical practices.
9. Provide Ethical Leadership:
- Dr. Johnson should actively promote ethical behavior and decision-making throughout the university.
- He should be a role model for ethical leadership and should hold all employees accountable for their actions.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the university's mission of providing a high-quality education and contributing to society.
- External Customers and Internal Clients: The recommendations consider the interests of all stakeholders, including students, faculty, staff, the local community, and the environment.
- Competitors: The recommendations help the university to differentiate itself from competitors by demonstrating its commitment to ethical and sustainable practices.
- Attractiveness: The recommendations enhance the university's reputation and attract students, faculty, and donors who value ethical and sustainable practices.
6. Conclusion
By implementing these recommendations, Fern Fort University can navigate the ethical challenges presented in the case study and establish itself as a leader in ethical and sustainable practices. This approach will enhance the university's reputation, attract talent, and create a positive impact on the community and the environment.
7. Discussion
Alternatives:
- Ignoring ethical concerns: This would lead to short-term gains but could damage the university's reputation and lead to long-term consequences.
- Focusing solely on financial growth: This approach could neglect the university's mission and ethical responsibilities.
Risks:
- Resistance to change from the board of trustees or other stakeholders.
- Difficulty in implementing and enforcing ethical standards across the university.
- Potential for legal or reputational damage if ethical violations occur.
Key Assumptions:
- The university is committed to ethical practices and is willing to invest in the necessary resources to implement the recommendations.
- The board of trustees will support the university's commitment to ethical and sustainable practices.
- Employees and students will embrace the university's ethical culture and values.
8. Next Steps
- Develop a timeline for implementing the recommendations.
- Create a task force to oversee the implementation process.
- Communicate the university's commitment to ethical and sustainable practices to all stakeholders.
- Regularly monitor and evaluate the effectiveness of the recommendations.
By taking these steps, Fern Fort University can successfully navigate the ethical challenges it faces and create a more ethical and sustainable future.
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