M 4/29 Frank (EIB 252-262); Case Study: Verespej (CS 325-329); Byrnes (CS 332-336)

Topic: Organizational Values – Can Ethics be Profitable?

1. How does the kidnapping example illustrate Frank’s claim that both parties would be better off if they cooperated, though there is no certainty that one or more parties won’t renege on the agreement after the fact? How does Frank try to overcome the latter problem?

2. What are the 5 ways a socially responsible firm might enjoy an advantage over other firms?

3. How does Frank respond to Friedman’s claim that cooperation of this type shouldn’t be characterized in terms of self-interest rather than social responsibility (see 252-253, 261)?