Markville Secondary School: Liter8 Program

Markville Secondary School: Liter8 Program Liter8 Lesson Plan

Created by: Marcello Ianni Date: November 12, 2007

Unit: Liter8 Skill: Grade / Subject / Level: Ethical Behaviour & Social T – Think and Respond Critically to Responsibility Informational Texts 12 / BOH4M1 / UC

Indicators of Liter8 Skill :

> asking questions > making inferences > using context to find meaning > drawing conclusions > solving problems > making judgments > determining credible sources; analyzing validity of sources

Activity: The activity is generally a week long. Students complete the questions independently. Students submit handwritten answers and definitions to key terms (see Part A). Group analysis and then presentations are made (see Part B).

The above follows presentations of “ethical failure” cases and their analysis such as the Denny’s racism and HP’s pretexting cases. The summative assignment is a case study (see Stake Technology).

Resources / Handouts:

Notes / Reflections:

1 (For Chapter 6 – Management 7e by John R. Schermerhorn Jr.

Part A

1. Define Key Terms on page 166 (Chapter 6).

2. Answer the following questions:

(a) What is ethical behaviour? (b) What are some alternative views of ethical behaviour? (c) What are the influences of culture on ethical behaviour? (d) What is an ethical dilemma? (e) What are ethical problems faced by managers? (f) What are four ways of thinking about ethical behaviour? (g) What are the factors that influence ethical behaviour? (h) What is meant by the term Whistleblower? (i) What is a code of ethics? (j) Explain social responsibility. (k) How does one evaluate social performance? (l) Describe four strategies of corporate social responsibility. (m) How does government influences organizations to become socially responsible? (n) Read the cases below. What would your response be to each? Explain why. [ activity ]

Case 1: The minister of a foreign nation asks you to pay a $200,000 consulting fee. In return for the money, the minister promises special assistance in obtaining a $100 million contract that would produce at least a $5 million profit for your company. The contract will probably go to a foreign competitor if not won by you.

Case 2: You learn that a competitor has made an important scientific discovery. It will substantially reduce, but not eliminate, your profit for about a year. There is a possibility of hiring one of the competitor’s employees who knows the details of the discovery.

Case 3: expense account. You learn that a manager in your company who earns $50,000 a year has been padding his expense account by about $1500 a year.

Part B

Group Work: You are to describe what you as a group would do if you happened to be in a situation where you could become whistleblowers. What tips would you offer for whistleblowers? Refer to chapter 6 for reference. Be innovative with your presentation. [ activity ]

2 BOH4M1 Case Study & Analysis Assignment

Table of Contents

Stake Technology – Business Sense & Global Social Responsibility...... 2 Assignment...... 3 Review Questions:...... 4 Format for Written Case Study Analysis...... 5 The Problem with Cases...... 5 Case Format...... 5 Components of a Case Analysis...... 5 1. Background Information...... 5 2. Statement of The Problem(s)...... 5 3. Implications of the Problem...... 6 4. Alternatives...... 6 5. Best Solution...... 6 6. Implementation of the Best Solution...... 6 7. Justification...... 6 (Written) Case Study Analysis Rubric...... 7

3 Ethical Behaviour and Corporate Social Responsibility (CSR)

Stake Technology – Business Sense & Global Social Responsibility (Management 7e) Performance goals must always be achieved through ethical and socially responsible action ( Schermerhorn – page 116). However, as we enter the new century, there are still many organizations that do not hold true to this ideal. Stake Technology Limited in Norval, Ontario (northwest of Toronto), is a good case of an ethical Canadian company enjoying incredible profits and sales at the same time. In fact, its record growth landed the company a fifth place ranking in Profit magazine’s 100 fastest growing companies. At the helm is Jeremy Kendall, the chairman and CEO. He joined the company in 1983. According to Kendall, Stake Technology was the only company in the top 12 on Profit’s list guided by the principles of environmental responsibility. When Kendall is asked the importance of running an ethical business, he says, “It’s number one”.

Stake Technology consists of three complementary business units. One is the Steam Explosion Technology unit. This patented technique uses high-pressure steam to free the cellulose from natural fibres in the production of pulp for paper, greatly reducing the use of chemicals. Another unit is Barnes Environmental International, which is focused on the recycling of industrial materials. The third branch is Sunrich Inc., an organic agritech business located in heartland of Minnesota.

Perhaps its mission statement best indicates its emphasis on ethical behaviour; “Stake Tech is dedicated to delivering shareholder value through operating environmentally responsible businesses. With an emphasis on proprietary, technology-driven processes, our business units secure a competitive advantage in their respective marketplace. We continuously seek out new investment opportunities that meet our vision, combining business sense with global responsibility”.

Stake Tech’s operations span the globe. They are in the United States, South Africa, Japan, the United Kingdom, China, Italy and Canada. The company recently signed a major agreement to supply its steam explosion technology in China. In 1995, China had over 10,000 pulp and paper mills. Most of them are small and highly polluting. The Chinese government has ordered nearly half of them to close for environmental reasons. This problem has presented Stake Tech with a major opportunity to be a player in China’s thriving economy. As Jeremy Kendall noted:

“China’s wood resources are limited. China will increasingly have to rely on non-woody fibre for its pulp. Most of these plants, which are small and highly polluting, use straw. China needs to replace these mills with clean and cost effective technology, and the Stake Tech Pulping process is ideally suited to this application. The potential is huge”.

Kendall and his company are rapidly entering the Chinese market with the Stake Tech Steam Explosion Pulping method. Stake Tech has sold the rights to Texas-based Pacitec Inc., who will market the equipment in China. Potential sales here could represent $160 million over the next 12 years.

Social responsibility doesn’t end at the office for Kendall. He says, “I decided you have a choice in life. I decided that I would invest in things that had an ethical base rather than those that didn’t.” When he turned 50, he donated $5,000 to build a three-room school in Nepal. He and his wife hiked for six days to the remote Himalayan village to see the school being built.

4 Founded in 1973, sales in 1994 were only $174,000. Stake had been experiencing trouble finding viable applications for its technologies. Kendall has led the company by making acquisitions and diversifying. For example, he wants Sunrich to produce value-added items such as soy drinks for health-conscious consumers. In 1999, revenue had grown to $47.3 million! This is a 27,086% increase. Stake Tech’s rapid growth in the late ‘90s reflects a change in strategy that launched a series of acquisitions. It positioned companies in key high-opportunity markets that management was able to grow profitably while maintaining an environmentally responsible stance. It also ranks second in profitability (on the Top 100) and first in sales per employee, with average sales of $538,000 (Canadian) per employee. The company employs approximately 100 people in Norval, Waterdown and Minnesota. Currently, just over 60% of its sales are exports, but this can be expected to increase as it makes inroads around the world. To finance the company, it has relied on the owners, government programs and public stock issues. The company trades on the NASDAQ in New York under STKL.

In today’s global economy, success belongs to companies that are proactive in seeking out opportunity. This requires a mix of innovation, technology and customer savvy. Stake Technology is looking at projected revenues over $100 million this year. Plans are to continuing growth in its three core businesses while benefiting from its ethical outlook.

Contact: Stake Technology Inc. [email protected] www.staketech.com

Assignment

1. Complete the review questions on the next page. (You may wish to do this first.)

2. Prepare a case study analysis as outlined by the case study format document. Identify and compile a list of key terms and other words you don’t know and their definitions. Use point form notes for each section of the analysis. You will need to do further research on the Stake Technology Ltd. (Note: Stake Tech is now SunOpta).

3. Include a properly formatted work cited list and links to your sources.

4. Format the heading for the case study and questions. Use your word processor to generate a table of contents and title page (Do not just key one in!). Insert page numbers. Save an electronic version in your g: drive. Submit a hard copy.

5. Due date: . Deadline date: Due date + 3 classes.

5 Review Questions:

1. In the textbook (pages 128-129), you will read about four social responsibility strategies: ► obstructionist ► defensive ► accommodative ► proactive Identify the strategy used by Stake Technology Ltd. Define the strategy.

2. Formal Codes of Ethics are official written guidelines on how to behave in situations susceptible to the creation of ethical dilemmas. How does Stake avoid these ethical dilemmas? Record as many standards as you can that are part of the “student” code of ethics. (See Schermerhorn, page 123)

3. A major soup company contributes cans of soup when a hockey player scores a goal or a pitcher strikes out a batter. Major breweries place full-page ads in national newspapers warning about the perils of drinking and driving. Much of this is called “cause marketing” or “corporate philanthropy”. It is a major part of today’s organizational focus and budget. Profile and organization committed in some way to supporting a cause. In a 11/2-2 page report, respond to the following questions: ► What is the organization? ► What is the cause? ► What are the potential benefits for the organization? For the consumer? ► List of sources (magazines, web, newspaper – be prepared to show them) ► Will this act of social responsibility make a difference? Why? Why not? ► Identify a problem that, if supported by an organization, could be solved or a situation that could be improved.

4. Ethical Issues - How many ethical issues can you identify in the case you read about Stake Tech’s commitment to the environment. List as many as you can.

6 Format for Written Case Study Analysis

A case is a "real life" business situation that outlines a series of events that leads to a managerial problem or dilemma.

The Problem with Cases

1) Students seldom are presented with all the information required to make a final decision. This requires that the students make decisions with less than 100 % of the information. Managers often make decisions without having 100 % of the information.

2) There is no clear right or wrong answer to cases. There may be more than one way to solve a problem or dilemma. The best solution may not be the perfect solution but after comparing the strengths and weaknesses of various alternatives, it is the solution that gives the most positives while minimizing the negatives.

Case Format

When solving a case it is necessary to use a number of headings and sub headings. You need to ensure that the information presented is concise and to the point. Managers do not have the time to read excess material.

Components of a Case Analysis

1. Background Information This includes facts that need to be reviewed about the situation. In order to know whether you have written enough information you can ask yourself the following questions "Do I have a good grasp of what is going on merely by reading the background information section".

2. Statement of The Problem(s) This is one of the most difficult parts of the case. Often what appears to be a problem is simply an effect or surface issue to the real problem. Students therefore need to determine the real problem (primary problem) and then look at the secondary problem (surface issues or causes). You need to be specific about the primary problem. In determining the primary problem you can ask yourself "what caused this?"

“He, who seeks for a solution without having the problem clearly in mind, seeks for the mainly in vain.” Hilbert

7 3. Implications of the Problem [ implication – a noun - deduction, entailment, implication - something that is inferred (deduced or entailed or implied); "his resignation had political implications" ]

a) For the People within the organization b) For the Organization

4. Alternatives

It is necessary that you list all the possible solutions to the problem and indicate the pros and cons of each alternative.

Remember: "Do Nothing" is a possible solution although it is not a very good alternative in most situations.

5. Best Solution

Pick the best alternative or a combination of alternatives in order to solve the problem.

6. Implementation of the Best Solution

After you have decided on the best solution you must give a plan for putting your idea(s) into action.

a) Immediate Action: what to do right now b) Short Term: what will be done within a year c) Long Term: what must be done beyond one year.

7. Justification

Statements that clearly articulate the best solution(s) and its benefits with respect to the primary and secondary problems are presented here. How the solution addresses the causes should also be outlined here.

*** Take advantage of every opportunity to use the business terms and to refer to the business concepts studied in this course. This will ensure that your analysis will be short and to the point. (See rubric on the next Page).

8 BOH4M1 : Business Leadership

(Written) Case Study Analysis Rubric

Categories Level 1 Level 2 Level 3 Level 4 Level 4+ (5.0 – 5.9) (6.0 – 6.9) (7.0 – 7.9) (8.0 – 8.9) (9.0 – 10.) Communication Presents Presents Presents Presents Presents information information information information information with limited with some effectively with a high with an effectiveness effectiveness degree of excellent effectiveness degree of effectiveness Application Answer Answer Answer Answer Answer reflects the reflects the reflects the reflects the reflects the argument with argument with argument with argument with argument with limited use of some use of good use of very good use excellent use concepts from concepts from concepts from of concepts of concepts the course the course the course from the from the material material material course course material material Knowledge / Demonstrates Demonstrates Demonstrates Demonstrates Demonstrates Understanding a limited some a good a very good a thorough understanding understanding understanding understanding understanding of the of the of the of the of the management management management management management concepts concepts concepts concepts concepts explored explored explored explored explored Thinking / Applies Applies Applies Applies Applies critical Inquiry critical critical critical critical thinking skills thinking skills thinking skills thinking skills thinking skills with an with limited with some effectively with a high excellent effectiveness effectiveness degree of degree of effectiveness effectiveness Note: Students whose achievement level is below Level 1 (50%) have not met the expectations for this assignment/activity.

Student: ______

Communication / 10 Application / 10

Thinking / Knowledge / 10 / 10 Inquiry /Understanding

To Review Exercises Solutions To A Possible Case Study Solution 9 10 11 12 13 14 15