A STRATEGY FOR FACING ETHICAL DILEMMAS:



A STRATEGY FOR FACING ETHICAL DILEMMAS:

THE HARVARD CASE STUDY MODEL

Many business schools use the Harvard Case Study model as their primary learning and teaching tool. The model involves seven steps in a logical method of solving problems or understanding issues. The following version of the Harvard Case model has been modified to deal with ethical issues.

1. Identify the critical success factors in a given situation. These factors are used later in the process to evaluate proposed solutions. The factors might include both personal and organizational considerations.

2. Define the problem or issue. The issue in ethical dilemmas usually involves a difficult choice between or among conflicting actions.

3. Identify the causes. Often, ethical conflict results from an individual’s reluctance to adhere to group norms or organizational behaviour that run contrary to that individual’s values or beliefs.

4. Develop possible solutions that might address the root causes of the problem. These solutions might be developed in a brainstorming session; or, if you are too emotionally involved in the situation, you might have to consult an objective third party.

5. Choose evaluation criteria that emanate from the critical success factors. Apply these criteria equally to the potential solutions. An evaluation grid may be very useful in comparing the results of applying the criteria.

6. Choose the solution that comes closest to satisfying the combined evaluation criteria; make sure to consider the short-term and long-term consequences of implementing each solution. Rarely does a solution completely meet all criteria, so pick the best one.

7. Recommend a detailed plan of implementation—who should do what, when, how?

The Harvard Case Study method is useful in many situations: deciding among competing bids; solving technical problems; making career choices; choosing courses of study; dealing with difficult people; and making difficult ethical decisions. Here’s an ethical dilemma:

The Case of the Guilty Software Developer

You work for GoSoft, a software development firm that programs portable GPS devices. Recently, working on your own time, you have developed breakthrough “smart code” that allows GPS devices to locate each other. The code also facilitates text messaging on the GPS devices. With this development in hand, you consider the possibility of leaving your firm to become a freelance developer and then sell your “smart code” to the highest bidder. Similar developments have sold for as much as $1 million.

Two aspects of this plan bother you, however—although you alone have developed the code, it resulted from an idea generated in a conversation that you had with two colleagues at work. The three of you speculated whether GPS and texting functions could be made to converge. Also, you’re averse to risk and like your current job security.

You’ve consulted a lawyer who has advised that you have a legal right to your developed code because you’ve documented the time you’ve spent developing the program outside of work hours. Still, you feel guilty about claiming credit for a development that was sparked by an informal brainstorming session at work, and the code incorporates some of the general strategies you have used for company projects. And you feel indebted to GoSoft, which has treated you very well. Incidentally, on its website GoSoft says it “follows honest, ethical business practices.”

Use the Harvard Case Study model to explore options and choose the best course of action.

Solving the case

1. Your critical success factors:

□ Your business success could depend on how well GoSoft does (and thus continues to employ you). You could be very successful with products that you develop as a freelancer, but you like job security.

□ GoSoft apparently believes in “honest, ethical business practices.” Do you? Your own moral centre may influence your decision—how important is it for you to do the right thing, and how can you determine what is “right” in this situation?

□ Will you have the resources to respond to a lawsuit if GoSoft claims that you developed the “smart code” as a GoSoft employee?

2. The issue in this case is an ethical dilemma—do you focus on your best interests and further your own business career at the expense of a firm that has treated you well?

3. The causes of your dilemma may stem from two factors: ( loyalty to GoSoft and your two GoSoft colleagues and, perhaps, ( a suspicion that no matter how hard you worked to develop the code, you wouldn’t have done it without the ideas informally contributed by your colleagues. Intellectual property issues often contain grey areas not found in forms of “real” property.

4. If the above analysis of the cause is accurate, your solution must address the question of intellectual ownership. Your lawyer says that your “smart code” is legally yours because you have documented proof that you produced it on your own time. So, your concern is not legal; it’s moral. Here, then, are four possible solutions:

□ Resign from GoSoft, establish a freelance business, and sell your “smart code,” which will bring cash flow and also establish your reputation.

□ Establish a freelance business and invite your two GoSoft colleagues to join your business.

□ Offer to sell your breakthrough development to GoSoft. Continue to work for the firm.

□ Give your “smart code” to GoSoft, while negotiating a performance bonus and/or a promotion.

5. The following evaluation criteria, which appear in a grid on the following page, consider the critical success factors discussed in step 1, above.

□ Personal business success

□ Honest and ethical behaviour relative to GoSoft and the two colleagues

□ Sufficient resources

Personal business success Honest and ethical? Sufficient resources?

|Establish a freelance |Starting a business can carry |Yes, for the most part. But there are |The “business” would require only a home|

|business |considerable risk, especially if one has|nagging doubts about the informal |office and computers, which seem to be |

| |to hire office staff, sales people, and |contributions made by the two |in place. However, if GoSoft sues, the |

| |soft- ware developers. But the “smart |colleagues, at work. |legal defence fees could be onerous. |

| |code” sale might carry the firm for a | |Also, can one person create and run such|

| |while. On the other hand, someone else | |a business? |

| |might have already created a similar | | |

| |software product. | | |

|Form a partnership |The start-up costs would be shared and |Acknowledges the possible contribution |Additional human resources are added to |

| |the risks spread among three partners. |made by the two colleagues. |the fledgling firm. |

| |Also, two motivated partners add energy |Poaches the two colleagues from GoSoft! | |

| |and skills. | | |

|Sell the Smart Code to |No risks, other than the possibility of |Yes—GoSoft benefits, but what about the |No financial resources are required. |

|GoSoft |not being able to negotiate a favourable|two colleagues? |The human resources required to package |

| |deal with GoSoft. But there is a chance | |and sell the “smart code” are already in|

| |of a large payout. | |place. |

|Give the Smart Code to |No risk, whatsoever. |Yes |No financial resources are required. |

|GoSoft |No direct benefit, other than earning | |The human resources required to package |

| |good will, and the possibility of | |and sell the “smart code” are already in|

| |negotiating a performance bonus and | |place. |

| |promotion. | | |

6. None of the four solutions satisfies all the evaluation criteria. Resigning from GoSoft and marketing the “smart code” might result in a major windfall that you could use to establish a viable, long-term business, but there’s considerable risk. Option 2 mitigates the risk, but how would one determine the extent to which the two colleagues share in the “smart code” sale? Option 3 and Option 4 carry little or no risk, and no financial obligations. Also, they express loyalty to GoSoft and acknowledge the slight possibility that the “smart code” directly resulted from at-work consultations. Option 3 presents the best option because it mitigates risk, recognizes the link with GoSoft, and presents a chance for a substantial payment, even though that payment may be lower than if the “smart code” were sold on the open market.

7. The recommended implementation plan—tell GoSoft’s manager that you have developed a program on your own time and that you are willing to sell the rights to this program to GoSoft, at a price below market value. Ask for a meeting to present an overview of your smart code’s features. During the negotiations, emphasize that your loyalty to the firm explains why you have approached GoSoft first. If the negotiations don’t succeed, you have the option of taking your product to other bidders.

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