LSB 3213 1st Edition Lecture 5 Outline of Last Lecture - Bill of Rights- Free Speecho Child Molester Case example- Market Place of Ideas- 2nd Amendmento Example- Search WarrantsLecture 5Privacy Rights- Personal information/Confidential Data- HIPAA – health informationo Specifically describes how to protect medical dataRight to Remain Silent- Individual vs. corporate rightso An individual can be quiet, but corporations can not So, this is an individual right, not a corporate right- Criminal vs. civil cases- Document discoveryo What you write or produce at work is “discoverable” when/ if a corporation/ business is being sued Discoverable means that what you write or say can be found and used in court against youDue Process- 5th and 14th amendments- The government cannot deprive a person or business of life, liberty, or property without due process- Due process: opportunity for defense- Applies only to government actionsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.o Means that anything not related to state or federal government does not guarantee due process- Examples:o The ethics committee at OSU finds that you have cheated on an exam, and immediately suspends you without listening to your defense This is not allowed- One notice to pay property tax before the house is taken is not due process, not allowedEqual Protection- 14th amendment- Equal treatment for similarly situated people and businesses- Higher scrutiny for race, gender, national origin- Rational basis review for businesseso Is there a rational basis for treating one business different than another? Less highly scrutinized- Iowa Gambling Caseo Pre-1989: race tracks onlyo 1989: slots on river boats (20% tax)o 1994: slots at race tracks (36% tax)o Violation of equal protection?o Rational basis? Difference between race track and a river boat, one on water, one on land, race track has two forms of gambling river boat only has oneo The court ruling was straight forward, stating that there was a rational basis Chapter 5: Business Ethics- How to make the right business decisiono It is hard to answer what is right- Thinking about ethics- Behaving ethicallyUnethical Practices- Corporate Scandalso Enrono Worldcomo Arthur Anderseno Tycoo Countrywide MortgageUnethical Reputation- Lawyers- How can you tell when a lawyer is lying?o The lawyer’s lips are moving.- How does an attorney sleep?o First the lawyer lies on one side… then the lawyer lies on the other- This is most often not a true or accurate description of lawyersThree Frameworks to Determine Ethical Behavior:- Deontology- Utilitarianism- Virtue Ethics- This semester’s goal:o Learn legal reasoning for business decisionsDeontology- Duty-based ethicso Do your duty by following laws, codes, religion- Categorical imperative (humanitarian)- Kant’s Categorical Imperative:o People are not a means to an end Owe a duty to humans, what is good for all is the right decisiono Universalize the decision If it is okay for everyone else, it is okay for meUtilitarianism- Greatest good for the greatest number- Measures severity and probabilityo Does the severity or probability of success/failure outweigh the alternative decision- Cost / benefit analysis (outcome based)Virtue Ethics- Aristotle: “we are what we repeatedly do. Excellence, then, is not an act but a habit.”- Being over doing- opposite of duty based- Inward focus- Look at our self and integrity, then the actions will followGoal- Learn different analytical frameworks- Apply each of them to business questions- Disciplined analysisSalmonella Example- In charge of quality control at peanut processing companyo The initial report says that a sample tested came back positive for Salmonella andpossibly affected a shipment about to leave  Holding the shipment could decrease profits, miss deadlines, etc Could also keep thousands of consumers from getting sickApply Deontology- Define the dutyo Are there any regulations that say I have to stop the shipment?; Is there a duty toshareholders to maximize the value of the company and not ship the products?- Potential downsides to deontology?o Doesn’t specify which duty to followo Struggle between what the duty says and what you feel is rightApply Utilitarianism- Run a cost / benefit analysiso Cost of not shipping the product vs. the cost of legal fees or decrease in shares, etc?o Jobs and people affected by both scenarios- Potential downsides to utilitarianism?o It is based on outcomes and hard to predictVirtue Ethics- Define the virtueo I never had issues with the product before, so I am not going to stop the shipment nowo Start with internal values- Potential downsides to virtue ethics?o Hard to define what is right, depends on the personContext Matters- Thinking ethically vs. acting ethicallyo Acting ethically involves internal values- Philosophy vs. courageSystematic Approach- Creating a system to solve ethical dilemmas…o Help make better decisionso Provide documentation  For defending decision and remembering why you made the decision and whenExample Approach from the Textbook- Gather facts- Discuss, brainstorm o get input- Decideo Where ethical frameworks come into play- Explain, justify why you made the decision- Evaluate resultso At a later date to see how the decision has panned out or if the decision needs tobe revisedStudying for Exams- More heavily tested on class discussion than the textbooko Understand and apply concepts, not just memorize definitions- Study guide with terminology will be posted on D2L next week, will not help with how toapply the concepts- No questions will come straight from the textbook that was not discussed in classo The textbook provides more background and detail on concepts learned in class- Need a Green Scantron- There will be quizzes before Exam 2 and 3 that will be over the same material as the exams and help to prepare for the examso Quizzes are straight forward and rather simpleo Exams are more in depth and challenging- We will use clickers in class to practice for the examSample Question 1- Which legal philosophy does the following legal argument rely on most strongly?- “Your honor, Company A should be liable for stealing my restaurant’s secret recipe. Of course everyone knows that stealing has always been against the written law, but most importantly, this behavior is just plain