Module 0

Foundations of Moral Conduct

Contents
Module Summary ............................................................................................................................... 1
Module Learning Outcomes ................................................................................................................ 1
Class Activities .................................................................................................................................... 2
A Case: The Equifax Data Breach......................................................................................................... 2
Critical Thinking .................................................................................................................................. 2
Discussion Question ............................................................................................................................ 3
Here is the question ............................................................................................................................ 3

“Thus, a company enters a social contract with society as whole, an implicit agreement among all
members to cooperate for social benefits. Even as a company pursues the maximizing of stockholder
profit, it must also acknowledge that all of society will be affected to some extent by its operations.”
Business Ethics, P. 14

Module Summary
This module is the beginning of the course, and it introduces students to the foundations of moral
conduct by addressing the meaning of ethics and morality, what constitutes ethics, and why morality
matters. In doing that, students will connect in classroom activity ethics and business operations by
addressing the question of integrity, responsibility, and the nature of ethical decision. They will learn
about several ethical concepts pertinent to Business Ethics. Using online discussion platform, students
will work on satisfying the “’Applied Focus” learning outcome by responding in their group to a
discussion learning question.

Module Learning Outcomes

By the end of this section, students will be able to:

• Describe the role of ethics in a business environment

• Explain what it means to be a professional of integrity

• Distinguish between ethical and legal responsibilities

• Describe three approaches for examining the ethical nature of a decision

• Course Learning Outcomes Linked (Applied Focus)

Demonstrate how global cultures and institutions impact businesses.
Readings
Business Ethics, Chapter One, “Why Ethics Matter,” Pages 7-24

Class Activities
Single Cohort: Monday, Tuesday, Wednesday, All Cohorts: Thursday
Thursday
• Workshop on the discussion question
A. Lecture: On Ethics

1.1 Being a person of professional integrity

1.2 Ethics and profitability
1.3 Multiple versus single ethical standard
1.4 A Case from the Real World

B. Class Activity on the Key Terms

A Case: The Equifax Data Breach

In 2017, from mid-May to July, hackers gained unauthorized access to servers used by Equifax, a major
credit reporting agency, and accessed the personal information of nearly one-half the U.S. population.9
Equifax executives sold off nearly $2 million of company stock they owned after finding out about the
hack in late July, weeks before it was publicly announced on September 7, 2017, in potential violation of
insider trading rules. The company’s shares fell nearly 14 percent after the announcement, but few
expect Equifax managers to be held liable for their mistakes, face any regulatory discipline, or pay any
penalties for profiting from their actions. To make amends to customers and clients in the aftermath of
the hack, the company offered free credit monitoring and identity-theft protection. On September 15,
2017, the company’s chief information officer and chief of security retired. On September 26, 2017, the
CEO resigned, days before he was to testify before Congress about the breach. To date, numerous
government investigations and hundreds of private lawsuits have been filed as a result of the hack.

Critical Thinking
1. Which elements of this case might involve issues of legal compliance?
2. Which elements illustrate acting legally but not ethically?
3. What would acting ethically and with personal integrity in this situation look like?
4. How do you think this breach will affect Equifax’s position relative to those of its competitors?
5. How might it affect the future success of the company?
6. Was it sufficient for Equifax to offer online privacy protection to those whose personal
information was hacked? What else might it have done?
Discussion Question
You have completed the assigned readings and engaged in class activities. This is your opportunity to
deepen your understanding and extend your perspective. To get the most out of your online discussion
board posts, you need to actually have a conversation. When you are posting, think about what you are
saying: why do you think this way? Using sources like your textbooks or even a journal article can boost
your credibility and increase the points you earn for your posts. This exercise has two parts:

First Part: Second Part:

Group response to the question by the due date
– Sunday, 11:59pm Weihai Time. The response
should be developed with critical insights with 3
paragraphs and no less than 500 and longer than
750 words. The response should contain at least
two (2) textual references documented in MLA
or APA style. To enhance the response, the
textual references should be integrated
effectively and grammatically, and cannot be just
added to the sentences.
Individual Peer Reviews of the group’s response.
You should respond to at least three (3)
responses posted by different groups than yours
by the Due Date: Monday, 11: 59pm Weihai
Time.
Your response should not be less than 200
words for each peer review.

You can respond by doing any of the following, and you should accomplish any of them respectfully:

1. Agree with a reason to show the logic of your understanding.

2. Agree and expand on the idea to show other perspectives.
3. Disagree with a reason to show the logic of your disagreement and apparent error in the post.
4. Ask questions based on context: do not let your response just be a question; you should supply
the context to show why the question is relevant and use the question to challenge your peers.
5. Comparison and Synthesis: show how several responses relate to one another or to an
experience or something you read.

Here is the question:

• Think of your group as a business organization. Who are the members of your organization and
what are their values? How do you define the common good for your business based on your
culture? What does it mean for your customers, your employees, the community where your
business is located, your investors, and supporters? How do you make good ethical decisions?
Do you uphold multiple or single ethical standards? What are these standards? Why do you
think ethics matters or not for your business?

• You do not need to answer the questions one after the other. I expect you to use the questions
to develop the blueprint of the ethical nature and outlook of your group/organization.