Session 4
Case Study Development
Below is the Framework we will use for formal case study analyses. Read Case: Conflict of an Insurance Broker, p. 62-63. Then, using the model below, prepare a written analysis of the case. It will not be turned in to be graded. This is a practice case study, but it’s important you get practice before you turn in the analysis of the cases that are a part of your mid-term and final exams. If you would like the instructor to look over your written analysis for the Case: Conflict of an Insurance Broker for feedback, feel free to email it to the instructor.
Ethical Decision Making: A Model for Case Study Analysis
Step 1: Summary of the Case and the Stakeholders
- In the first step of the case analysis, you should briefly summarize the case. I suggest that you read the case study multiple times to get a complete understanding of the case. Your summary should concisely reflect the main points of the case.
- Identify the ethical issue that is involved in this case. It’s often easiest to state the issue as a question. For example, “Is it ethical for John Doe to _____ in this situation?”
- Next, list all the primary people and organizations involved in the case. State how they are involved and what their stake in the case is.
- Then, identify the major ethical issue(s) involved in this case. What is the dilemma you are addressing?
- The summary should be no longer than 1 1/2 pages, including listing the stakeholders and identifying the major ethical issue(s).
Step 2 – Alternatives Development and Selection
- Develop alternative courses of action to choose from. For example, in this situation John Doe could _____, or ______, or ______. List as many viable options as you can think of. You will consider each of these optional courses of action based on the various moral philosophies and the law in the steps below.
Step 3: Absolutes
- Are there any absolutes involved in this case or in the possible courses of action you identified in step 2? If so, what are they? (An absolute is a principle that is always right or always wrong, such as life, truth, freedom, etc.)
- If an absolute has been broken or will be broken if you chose a specific course of action, then you know you should avoid that choice.
- If an absolute has not been broken in this case analysis, then move to the next step of analysis. (For the purposes of this class, even if an absolute has been broken, move on to the next step.)
- Be sure to clearly define the absolute and state why you think an absolute is involved, if it is. You do not need to deal with the three views on conflicting or non-conflicting absolutism. However, if there seems to be more than one absolute involved, and if they appear to conflict, then point this out.
- This will take less than one page.
Step 4 – Laws
- Has a law been broken in this case, or will a law be broken if you select a particular course of action?
- Has a professional guideline been violated? Specifically, have any GAAP practices been violated?
- If so, then you know you should avoid that choice. If not, then move on to the fourth step in the analysis. (Again, for the purposes of this class, move on to the next step even if a law is involved.)
- This is not a class in business law, so if you are unaware of laws involved, do not spend too much time researching. I mostly want you to recognize that in business, you must become familiar with the laws involved in your work.
- This will take less than one page.
Step 5: Other Moral Philosophies
This is where you consider other ethical principles that can influence your perception of the case or your decision about the choices you will make. For the purpose of this assignment, you should consider all of the ethical principles we have discussed to show that you understand how these approaches are used to make decisions. In real life, I suggest you determine which approaches you see as being the most beneficial to your decision making and use those. Approach the case from the ethical systems listed below. Use a different heading for each of these so it will be clear which approach you are discussing. Be as complete as you can in your use of these philosophies.
- Rights
- Justice
- Utilitarianism
- Care
- Virtues
- Market Theory
Step 6 – Decision Selection and Follow Up
- Given the analysis above, which of your possible courses of action is the most ethical? Is a combination of decisions better (assuming the combination does not involve actions that are mutually exclusive)?
- Consider the wisdom and practical applicability of the choice you have made. Is this choice actually feasible?
- Would you want the press to run a story on the front page about your decision?
- Would you want your mother, spouse, kids, or your pastor to know about your decision?
Session 7
Test 1
The first test will cover the assigned readings and lectures in the first six sessions, and you may use your book and notes as you take the exam. It will be comprised of objective (multiple choice) questions, short and long essay questions, and application of some moral philosophies to a short case study. You will have three hours to complete the exam once you begin, but must complete the exam in one sitting. You may not give or receive any assistance on the exam. Cheating in any form will be grounds for a failure of the course and possible action by the University. The test will remain open through the last day of this session. You may not take the exam after this date/time so do not put it off until the last minute in case you end up with technical difficulties and miss the deadline.
Case Study Development
In this session, you should also begin working on development of your first formal case analysis. Accounting students must analyze KPMG’s Tax Shelter Business (p. 44-45). Other students may choose between that case and Case: Martha Stewart: Inside Trading (p. 264-65). Use the outline provided below for the analysis. Use each point in the outline as a heading for your paper and include all sections. The analysis should be no less than five pages and is due by the end of Session 9.
Ethical Decision Making: A Model for Case Study Analysis
Step 1: Summary of the Case and the Stakeholders
- In the first step of the case analysis, you should briefly summarize the case. I suggest that you read the case study multiple times to get a complete understanding of the case. Your summary should concisely reflect the main points of the case.
- Identify the ethical issue that is involved in this case. It’s often easiest to state the issue as a question. For example, “Is it ethical for John Doe to _____ in this situation?”
- Next, list all the primary people and organizations involved in the case. State how they are involved and what their stake in the case is.
- Then, identify the major ethical issue(s) involved in this case. What is the dilemma you are addressing?
- The summary should be no longer than 1 1/2 pages, including listing the stakeholders and identifying the major ethical issue(s).
Step 2 – Alternatives Development and Selection
- Develop alternative courses of action to choose from. For example, in this situation John Doe could _____, or ______, or ______. List as many viable options as you can think of. You will consider each of these optional courses of action based on the various moral philosophies and the law in the steps below.
Step 3: Absolutes
- Are there any absolutes involved in this case or in the possible courses of action you identified in step 2? If so, what are they? (An absolute is a principle that is always right or always wrong, such as life, truth, freedom, etc.)
- If an absolute has been broken or will be broken if you chose a specific course of action, then you know you should avoid that choice.
- If an absolute has not been broken in this case analysis, then move to the next step of analysis. (For the purposes of this class, even if an absolute has been broken, move on to the next step.)
- Be sure to clearly define the absolute and state why you think an absolute is involved, if it is. You do not need to deal with the three views on conflicting or non-conflicting absolutism. However, if there seems to be more than one absolute involved, and if they appear to conflict, then point this out.
- This will take less than one page.
Step 4 – Laws
- Has a law been broken in this case, or will a law be broken if you select a particular course of action?
- Has a professional guideline been violated? Specifically, have any GAAP practices been violated?
- If so, then you know you should avoid that choice. If not, then move on to the fourth step in the analysis. (Again, for the purposes of this class, move on to the next step even if a law is involved.)
- This is not a class in business law, so if you are unaware of laws involved, do not spend too much time researching. I mostly want you to recognize that in business, you must become familiar with the laws involved in your work.
- This will take less than one page.
Step 5: Other Moral Philosophies
This is where you consider other ethical principles that can influence your perception of the case or your decision about the choices you will make. For the purpose of this assignment, you should consider all of the ethical principles we have discussed to show that you understand how these approaches are used to make decisions. In real life, I suggest you determine which approaches you see as being the most beneficial to your decision making and use those. Approach the case from the ethical systems listed below. Use a different heading for each of these so it will be clear which approach you are discussing. Be as complete as you can in your use of these philosophies.
- Rights
- Justice
- Utilitarianism
- Care
- Virtues
- Market Theory
Step 6 – Decision Selection and Follow Up
- Given the analysis above, which of your possible courses of action is the most ethical? Is a combination of decisions better (assuming the combination does not involve actions that are mutually exclusive)?
- Consider the wisdom and practical applicability of the choice you have made. Is this choice actually feasible?
- Would you want the press to run a story on the front page about your decision?
- Would you want your mother, spouse, kids, or your pastor to know about your decision?
Students will analyze one case study during the semester using the guideline provided by the instructor. Case study analyses should be a minimum of five double-spaced pages (standard margins, Times New Roman, 12 pt.). The case summary and stakeholder identification should take no more than 1.5 pages with the remaining pages devoted to developing the issue, analyzing the issue in light of various moral philosophies, alternative development, and selection. This case study analysis is worth 20% of your grade. Accounting students must develop an accounting-related case study, incorporating AICPA ethics rules into the discussion. This case study development paper is due October 31, midnight.
See Sessions 4 and 7 for more detailed information about the case analysis.
