1. Concordia College
Moorhead, Minnesota
BUS 425 – Ethical Behavior in Organizations
Course Information
The following is a syllabus and study guide for BUS 425 – Ethical Behavior in Organizations. This is
an undergraduate course normally taken in the senior year. It is a management perspective of
organizational ethics and is required for management majors. I prefer the term organizational ethics
because many times the term business indicates a for-profit business and many of our students will be
going into a variety of organizational settings.
This course consists of 14 classes of 100 minutes each. It is comparable to a 3 credit course given at a
college/university with quarter systems. It is given over a ½ semester at Concordia College.
The course would have been longer but college restrictions on size of majors limited the length. It was
implemented about 2 years ago. The time frame actually works very well with the Ferrell Textbook.
The longer case studies are assigned for student reading outside of class. We also go through several of
the case studies from Ferrell where students read them in class (the shorter case studies). This works
well with the longer class periods. Each class period is usually divided up with lecture in the beginning,
a break, and then a case study from the text or others developed by myself.
The information contains a syllabus and an explanation of a term paper based on Tom Morris book If
Aristotle Ran General Motors. The course, textbook, and the Morris book received very positive
comments from students the first two times it has been taught.
I teach leadership, ethics and management on a 2/3 load and run the Center for Ethical Leadership as 1/3
of my time. In the Center we develop many programs for organizations in regard to ethics.
For further information or comments please contact me:

2. Concordia College
BUS 425 – Ethical Behavior in Organizations
Purpose of Course
This course focuses on ethical behavior in organizations. The philosophy, issues and topics apply to all
types of organization including corporations, small business, government, churches, and nonprofit.
Values and ethics, as they relate to individuals and organizations, are defined from several different
perspectives. Topics discussed include awareness of ethical issues in organizations, moral philosophies
that apply to organizational ethics, ethical decision making frameworks, organizational culture and
values that influence business ethics, the development of ethics programs and policies, global ethics, and
value-based leadership.
Students examine their own values in relation to ethical behavior, and their responsibility to themselves
and the organization in regard to different ethical situations.
Course Objectives
Upon completion of this course the student will be able to:
1. Define values, ethics and ethical leadership from several perspectives. Relate these terms and
concepts to different situations and different types of organizations. Discuss the development of
business ethics, reasons to study business ethics, and the use of a decision-making framework to
make good ethical decisions.
2. Describe the stakeholder model in relation to approaching ethical situations. Identify ethical
issues that are common in business including honesty and fairness, conflicts of interest, fraud,
discrimination, and information technology.
3. Discuss ethics in relation to social responsibility. Explain Carroll’s Model of Social
Responsibility. Describe social responsibility issues related to economic conditions,
competition, legal and regulatory areas, and philanthropic topics.
4. Explain the importance of ethical decision-making. Describe the factors that influence our
decisions including the ethical intensity of the issue, individual factors, organizational factors,
and opportunity. Describe the importance and the issues associated with corporate governance.
Explain a pragmatic model for making ethical decisions.
5. Moral philosophies are used to examine ethical issues in organizations. Explain six
philosophical approaches to ethics including egoism, utilitarianism, deontology, relativist
perspective, virtue ethics, and justice ethics. Apply these to several case studies and discuss
using the different philosophies to approach an ethical issue.

3. BUS 425 Ethical Behavior in Organizations Page 2
6. In making ethical decisions, organization factors have a strong influence on how we decide an
issue. Explain how culture and values influence our decisions as employee of organizations.
Discuss how power bases and leadership can influence ethical decisions. Discuss the influence
of small groups such as teams on our decision making.
7. Describe how the organizational factors of relationships and conflicts can influence our decision
making in relation to ethics. Discuss issues such as significant others, role relationships, whistle
blowing and organizational pressures.
8. Discuss the importance of an organizational ethics program. Explain the impact an ethics
program can have in relation to reducing legal problems. Define code of conduct, statement of
values, and ethics officer.
9. Describe an ethics audit. Discuss the benefits and risks to an ethics audit. Explain the process of
setting up an ethics audit including methods of measuring, verifying results, and reporting the
findings.
10. Ethical behavior and values can be interpreted differently in international situations. Explain the
issues in business ethics as it relates to a global economy. Discuss the issues related to sexual
and racial discrimination, human rights, price discrimination, bribery, harmful products,
pollution, and intellectual property protection.

4. BUS 425 Ethical Behavior in Organizations Page 3
Required Texts and Resources
Ferrell, O.C., Fraedrich, J., and Ferrell, L. (2008). Business ethics: Ethical making and
cases. Boston: Houghton Mifflin.
Morris, T. (1997). If Aristotle ran General Motors: The new soul of business. New
York: Henry Holt.
Course Requirements and Policies
1. Assigned material – Students are expected to read the assigned material and be prepared to
discuss the listed topics in class. Part of the student’s grade is based on responses to class
questions, contributing to the learning environment, and communicating a knowledge of the
material in class. Assignments are due on the date indicated (at class time). Late assignments
will be accepted only with special permission and with up to a 20% reduction in grade
(depending on circumstances).
2. Examinations – There will be two exams over the block course – both equal in points.
Each exam will cover the material assigned on the course calendar. All exams cover the material
from the last exam. The final examination will be the last class period. Make-up exams are not
permitted unless for a pre-approved activity, verified illness, or a verified emergency.
The exams are based on the assigned readings, the lecture notes, and handouts. A study guide is
handed out prior to the class unit addressing areas to study for the exam.
3. Reaction/Integration Paper – There are four short reaction papers based on the book by Tom
Morris – If Aristotle ran General Motors. Note the details regarding the paper later in the
syllabus. Each paper is worth 24 points.
4. Attendance – Students are expected to attend class and to be in class on time. Learning is an
active process. If you are unable to attend class or will be late, please notify the instructor ahead
of time.
Part of your grade (30 points) is based on class input (contributing to the class and discussing
issues) and case studies.
5. Honor Code – By attending Concordia College, students are demonstrating their commitment
to the Academic Integrity Code for the college. The code reminds students of their responsibility
to promote honesty by opposing any form of cheating or plagiarism. A complete policy is found
in the student handbook.

5. BUS 425 Ethical Behavior in Organizations Page 4
Course Grading
The course grade will be based approximately on the following:
First Exam 31% (100 Points)
Second Exam 31% (100 Points)
Term Paper 29% ( 96 Points)
Class Input & Case Studies 9% ( 30 Points)
The grading usually corresponds to traditional percentages. This would be 92 to
100 A; 90 to 91 A-; 88 to 89 B+; 82 to 87 B; 80 to 81 B-; 78 to 79 C+: 72 to 77 C; 70 to
71 C-; 68 to 69 D+; 62 to 67 D; 60 to 61 D-; 59 and below failing.
Students are always welcome to discuss their grades and may get an update on their grade status
at any time. A student who feels they received an unfair grade should discuss the issue with the
instructor to see if an error or misunderstanding occurred. If the student is not satisfied with the
result after the process, they may appeal their grade by petitioning the department chair and
following through with the grade appeal process as stated in the College Directory and
Handbook under the Student Appeals Processes.
Reaction/Integration Papers (Specific Directions)
There are four reaction papers due during the semester. The due dates are listed in your class
calendar. Read the assigned chapters for each session. Write a 3 to 4 page reaction paper for
each reading (there are four parts to the book). Discuss the following issues:
1. Main Points: Briefly introduce and summarize the main points that Morris is making in the
particular assigned reading.
2. Issues of Interest: What parts did you find interesting (discuss, relate to class material)?
3. Personal Ethics: How can you relate these ideas to your own values, ethics, and religion?
4. Workplace Ethics: How could you as a manager integrate these thoughts into the workplace?
The above answers may vary in length depending on the area you would find interesting.
Address issue #1 thoroughly but expand on the other three as you find meaningful. This is
a short reaction paper and not a research paper. Use headings for each of the above 4 topics.
Grading is based on four areas: organization of paper, writing style, quality of content,
and critical analysis. The critical analysis deals with any of the following: comparing
and applying to the workplace, applying to your own values and ethics, comparing to ethical
issues from class, and/or an in-depth discussion on the ideas.
Reaction Paper: January 11: Preface, Introduction, Chapters 1 to 3
Reaction Paper January 13: Chapters 4 to 6
Reaction Paper January18: Chapters 7 to 9
Reaction Paper January 20: Chapters 10 to 12

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Course Calendar and Assignments
Date Subject & Due Dates Assignments
Jan 4 Tue Introduction to Managerial Ethics
Discuss Course Outline
Jan 6 Thu Ethics Overview: Importance of Ethics. Chapter 1 (Ferrell)
Defining Ethics, Values, Ethical Leadership
Jan 11 Tue Stakeholder Relationships Chapter 2 (Ferrell)
Reaction Paper #1 Due
Jan 13 Thu Emerging Ethics Issues Chapter 3 (Ferrell)
Reaction Paper #2 Due
Jan 18 Tue Institutionalization of Business Ethics Chapter 4 (Ferrell)
Reaction Paper #3 Due
Jan 20 Thu Ethical Decision Making and Leadership Chapter 5 (Ferrell)
Reaction Paper #4 Due
Jan 25 Tue Individual Factors: Moral Philosophies & Values Chapter 6 (Ferrell &
Complete Tolstoy Worksheet in Study Guide Tolstoy Story)
Review for Test
Jan 27 Thu First Exam
Feb 1 Tue Business Ethics in a Global Economy Chapter 10
(Ferrell)
Feb 3 Thu Organizational Factors: Culture & Relationships Chapter 7 (Ferrell)
Case 1 Enron (Ferrell)
Feb 8 Tue Organizational Factors (continued) Chapter 7 (Ferrell)
Case 2 Tyco
(Ferrell)
Feb 10 Thu Developing Effective Ethics Programs Chapter 8 (Ferrell)
Feb 15 Tue Implementing and Auditing Ethics Programs Chapter 9 (Ferrell)
Review for Test

8. Feb 17 Thu Second Exam

9. BUS 425 Ethical Behavior in Organizations Page 6
Suggested Resources for Ethics Course
Badaracco, J. (1994). Defining moments. Boston: Harvard Business Review Press.
Chappell, T. (1993). The soul of a business: Managing for profit and the common good. New York:
Bantam.
Chappell, T. (1999). Managing upside down: The seven intentions of value-centered leadership. New
York: William Morrow. (HD 57.7.C43)
Elashmawi, F. & Harris, P.R. (1993). Multicultural management: New skills for global success.
Houston, TX: Gulf Publishing.
Golin, A. (2004). Trust or consequences: Build trust today or lose your market tomorrow. New York:
Amacom.
Greenleaf, R. (1997). Servant leadership: A journey into the nature of legitimate power and greatness.
Mahway, NJ: Paulist Press.
Handy, C. (1998). The hungry spirit: Beyond capitalism, a quest for purpose in the modern world.
New York: Broadway Books.
Hesse, H. (1992). The journey to the east. New York: The Noonday Press.
Johnson, C.E. (2001). Meeting the ethical challenge of leadership: Casting light or shadow. Thousand
Oaks, CA: Sage.
Johnson, L. & Phillips, B. (2003). Absolute honesty: Building a corporate culture that values straight
talk and rewards integrity. New York: Amacom.
Kuczmarski, S.S. & Kuczmarski, T.D. (1995). Value-based leadership. Englewood Cliffs, NJ:
Prentice Hall.
Maxwell, J.C. (2003). There’s no such thing as business ethics. New York: Warner Books.
Morris, T. (1998). If Aristotle ran General Motors: The new soul of business. Gordonsville, VA: Holt.
O’Toole,J. (1995). Leading change: The argument for value-based leadership. New York: Ballantine
Books.
Palmer, P. (1990). Leading from within: Reflections on spirituality and leadership. Indianapolis:
Indiana Office for Campus Ministries.

10. Ethics Term Paper Guidelines
Selected Book: Morris, Tom (1997). If Aristotle ran General Motors: The new soul of
a business. (New York: Henry Holt & Company).
Instructions: Read the assigned chapters for each session. Write a 3 to 4 page reaction
paper for each reading (there are 4 parts to the book). Answer the following questions:
1. Briefly summarize the main points that Morris is making in the particular assigned
reading.
2. What parts did you find that were interesting, areas that you agreed/disagreed, and/
or areas that relate well to our topic of ethics?
3. How can you relate Morris’ ideas to your own personal life, values and ethics?
4. How could you, as a manager, integrate some of Morris’ thoughts into the
workplace?
The above answers may vary in length depending on the area you would find interesting.
Address question #1 thoroughly but expand on the other three as you find meaningful.
This is a short reaction paper not a comprehensive research paper.
Grading is based on four areas: organization of paper, writing style, quality of content,
and critical analysis. The critical analysis deals with any of the following: comparing
and applying to the workplace, applying to your own life, comparing to other ethical
sources in class, and/or an in-depth discussion on the ideas (25 points for each paper).
The book is used by many corporations to stimulate thought and discussion on ethics.
Assignments:
January 11: Preface, Introduction, Chapters 1 to 3
January 13: Chapters 4 to 6
January 18: Chapters 7 to 9
January 20: Chapters 10 to 12

11. BUS 425 – Ethical Behavior in Organizations
Reaction/Integration Papers
Name __________________________________
Points Possible
Organization of Paper
(headings, organization of discussion) _____ 6
Writing Style
(grammar and style) _____ 6
Quality of Content
(issues explained well) _____ 6
Critical Analysis
(application and analysis) _____ 6
Total _____ 24
Comments/Suggestions for Improvements:
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