Week 3: Ch 3

Outcome-based ethics

Focuses on the impacts of a decision on society or on key stakeholders.

Religious Ethical Principles

For businesses, religious principles can be a unify- ing force for employees or a rallying point to increase employee motivation. They can also present problems, however, because different owners, suppliers, employees, and customers may have different religious backgrounds. Taking an action based on religious principles, especially when those principles address socially or politically con- troversial topics, can lead to negative publicity and even to protests or boycotts.

Monitoring the Employment Practices of Foreign Suppliers

Many businesses contract with companies in developing nations to produce goods, such as shoes and clothing, because the wage rates in those nations are significantly lower than those in the United States. But what if one of those contractors hires women and children at below- minimum-wage rates or requires its employees to work long hours in a workplace full of health hazards? What if the company's supervisors routinely engage in workplace conduct that is offensive to women? What if factories located abroad routinely violate U.S. labor and environ- mental standards?

Private Company Codes of Ethics

Most companies attempt to link ethics and law via internal codes of ethics. While not law, they are rules that companies set forth that they can also enforce.

Industry Ethical Codes

Numerous industries have also developed codes of ethics. The American Institute of Certified Public Accountants (AICPA) has a comprehensive Code of Professional Conduct for the ethical practice of accounting. The American Bar Association (ABA) has model rules of professional conduct for attorneys, and the American Nurses Association (ANA) has a code of ethics that applies to nurses. These codes can give guidance to decision-makers facing ethical questions. Violation of a code may result in the discipline of an employee or sanctions against a company from the industry orga- nization. Remember, though, that these internal codes are not laws, so their effectiveness is determined by the commitment of the industry or company leadership to enforcing the codes.

Wages and Working Conditions

Allegations that a business allows its suppliers to engage in unethical practices hurt the firm's reputation. ■ Example 3.17 Noi Supalai, a garment worker in Thailand, came forward with reports about how harshly she and other workers had been treated at Eagle Speed factory, which produced apparel for Nike Corporation. Because the workers did not produce all of the "Just Do the Right Thing" line of products by a set deadline, Nike fined the factory and barred it from paying its workers. The factory then forced some two thousand employees to work sixteen-hour days or longer, and to take turns going home to shower. Workers eventually formed a union and named Supalai as president, but they were unsuccessful in getting the conditions improved. A meet- ing was set up between Supalai and a Nike representative, but Nike did not even show up. Supalai later learned that Nike chose to use other suppliers.

Principles of Rights

Another view of duty-based ethics focuses on basic rights. The principle that human beings have certain fundamental rights (to life, freedom, and the pursuit of happiness, for example) is deeply embedded in Western culture. Those who adhere to this principle of rights, or "rights theory," believe that a key factor in determining whether a business decision is ethical is how that decision affects the rights of others. These others include the firm's owners, its employees, the consumers of its products or services, its suppliers, the community in which it does business, and society as a whole.

Fraud Reduction and Data Analytics Act

Passed by Congress in 2016 to identify and assess fraud risks in federal government agencies. The purpose of the law is to prevent, detect, and respond to fraud (including improper payments) in federal programs.

Attitude of Top Management

One of the most important ways to create and maintain an ethical workplace is for top management to demonstrate its commitment to ethical decision making. Top management's behavior sets the ethical tone of a firm. If management does not enforce the company code, the code essentially does not exist.

Problems with the Utilitarian Approach

There are problems with a strict utilitarian analysis. In some situations, an action that produces the greatest good for the most people may not seem to be the most ethical. Example 3.10 Phazim Company is producing a drug that will cure a disease in 99 percent of patients, but the other 1 percent will experience agonizing side effects and a horrible, painful death. A quick utilitarian analysis would suggest that the drug should be produced and marketed because the majority of patients will benefit. Many people, however, have significant concerns about manufacturing a drug that will cause such harm to anyone.

Moral Minimum

If people and entities merely comply with the law, they are acting at the lowest ethical level that society will tolerate.

Study of Ethics

study of what constitutes right or wrong behavior. It is a branch of philosophy focusing on morality and the way moral principles are derived and implemented. Ethics has to do with the fairness, justness, rightness, or wrongness of an action.

Ethical Reasoning

the application of morals and ethics to a situation—applies to businesses just as it does to individuals. As businesses make decisions, they must analyze their alternatives in a variety of ways, one of which is the ethical implications of each alternative.

Conflicting Rights (Principle of Rights)

A potential dilemma for those who support rights theory is that they may disagree on which rights are most important. When considering all those affected by a business decision to downsize a firm, for example, how much weight should be given to employees relative to shareholders? Which employees should be laid off first—those with the highest salaries or those who have less seniority (have worked there for the shortest time)? How should the firm weigh the rights of customers relative to the community, or employees relative to society as a whole?

The Responsibility of Employers (Social Media)

A ruling by the National Labor Relations Board (NLRB—the fed- eral agency that investigates unfair labor practices) has changed the legality of such actions. ■ Example 3.14 At one time, Costco's social media policy specified that its employees should not make statements that would dam- age the company, harm another person's reputation, or violate the company's policies. Employees who violated these rules were subject to discipline and could be fired. The NLRB ruled that Costco's social media policy violated federal labor law, which protects employees' right to engage in "concerted activities." Employees can freely associate with each other and have conversations about common workplace issues without employer interference. This right extends to social media posts. There- fore, an employer cannot broadly prohibit its employees from criticizing the company or co-workers, supervisors, or managers via social media.

Dodd-Frank Wall Street Reform and Consumer Protection Act

After alleged ethical lapses on Wall Street contributed to a financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act.1 Dodd-Frank made sweeping changes to the United States' financial regulatory environment in an attempt to promote financial stability and protect consumers from abusive financial services practices.

Avoiding Corruption

Another ethical problem in global business dealings has to do with corruption in foreign governments. Under the Foreign Corrupt Practices Act,9 U.S. businesses are prohibited from making payments to (bribing) foreign officials to secure beneficial contracts, with certain exceptions. If such payments are lawful within the foreign country, then they are permitted. It is also acceptable to pay small amounts to minor officials to facilitate or speed up the performance of administrative services (such as approval of construction). Payments to private foreign companies or other third parties are also permissible. Decision makers should discuss potential ethical problems with employees in advance and again when situations arise. The company's goal should be to ensure that it supports management and employees in doing the right thing and following the firm's anticorruption policies.

The Corporate Aspects of CSR

Arguably,anysocially responsible activity will benefit a corporation. A corporation may see an increase in goodwill from the local community for creating a park, for instance. A corporation that is viewed as a good citizen may see an increase in sales. At times, the benefit may not be immediate. Constructing a new plant that meets high energy and environ- mental standards may cost more initially. Nevertheless, over the life of the building, the savings in maintenance and utilities may more than make up for the extra cost of construction. Surveys of college students about to enter the job mar- ket confirm that young people are looking for socially responsible employers. Socially responsible activities may thus cost a corporation now, but may lead to more impressive and more committed employees. Corporations that engage in meaningful social activities retain workers longer, particularly younger ones.

Al-Dabagh v. Case Western Reserve University (Case 3.1)

Background: Amir Al-Dabagh was a student at the Case Western where he constantly breached their professionalism competency. After a unanimous vote from the committee of students they refused to certify him with a diploma, thus he sued for breach of good faith and fair dealing. The court order them to issue a diploma and case western appealed. Court Opinion ( Sutton, Circuit Judge): Case Western's student handbook * * * makes clear that the only thing standing between Al- Dabagh and a diploma is the Committee on Students's finding that he lacks professionalism. Unhappily for Al-Dabagh, that is an academic judgment. And we can no more substitute our personal views for the Committee's when it comes to an academic judgment than the Committee can substitute its views for ours when it comes to a judicial decision. [Emphasis added.] The Committee's professionalism determination is an academic judgment. That conclusion all but resolves this case. We may overturn the Committee only if it substantially departed from accepted academic norms when it refused to approve Al-Dabagh for graduation. And given Al-Dabagh's track record—one member of the Committee does not recall encountering another student with Al-Dabagh's "repeated professionalism issues" in his quarter century of experience—we cannot see how it did. [Emphasis added.] To the contrary, Al-Dabagh insists: The Committee's decision was a "punitive disciplinary measure" that had nothing to do with academics. * * * His argument fails to wrestle with the prominent place of professionalism in the university's academic curriculum—which itself is an academic decision courts may not lightly disturb. Even if professionalism is an academic criterion, Al-Dabagh persists that the university definedit too broadly. As he sees it, the only professional lapses that matter are the ones linked to academic performance. That is not how we see it or for that matter how the medical school sees it. That many professionalism-related cases involve classroom incidents does not establish that only classroom incidents are relevant to the professionalism inquiry * * *. Our own standards indicate that professionalism does not end at the courtroom door. Why should hospitals operate any differently? As for the danger that an expansive view of professionalism might forgive, or provide a cloak for, arbitrary or discriminatory behavior, we see no such problem here. Nothing in the record suggests that the university had impermissible motives or acted in bad faith in this instance. And nothing in our deferential standard prevents us from invalidating genuinely objectionable actions when they occur. Decision and Remedy: the federal appellate court reversed the lower court's order of issuing a diploma to Al-Dabagh.

People Are Not a Means to an End

Based on this view of human beings, Kant said that when people are treated merely as a means to an end, they are being treated as the equivalent of objects and are being denied their basic humanity. For instance, a manager who treats subordinates as mere profit-making tools is not treating them with the respect they deserve as human beings. Such a manager is less less likely to retain motivated and loyal employees than a manager who respects employees.

The Social Aspects of CSR

Because business controls so much of the wealth and power in this country, business has a responsibility to use that wealth and power in socially beneficial ways. Thus, the social aspects of CSR require corporations to demonstrate that they are promoting goals that society deems worthwhile and are moving toward solutions to social problems. Companies may be judged on how much they donate to social causes, as well as how they conduct their operations with respect to employment discrimination, human rights, environ- mental concerns, and similar issues.

The Use of Social Media to Discuss Work-Related Issues

Because so many Americans use social media daily, they often discuss work-related issues there. Numerous companies have strict guidelines about what is appropriate and inappropriate for employees to say when posting on their own or others' social media accounts. A number of companies have fired employees for such activities as criticizing other employees or managers through social media outlets. Until recently, such disciplinary measures were considered ethical and legal.

Short-term profit maximization (As a source of ethical issues)

Businesspersons often commit ethical violations because they are too focused on one issue or one needed result, such as increasing profits or outperforming the competition. Some studies indicate that top-performing companies may actually be more likely to behave unethically than less successful companies, because employees feel they are expected to continue performing at a high level. Thus, abnormally high profits and stock prices may lead to unethical behavior. In attempting to maximize profits, corporate execu- tives and employees have to distinguish between short- run and long-run profit maximization. In the short run, a company may increase its profits by continuing to sell a product even though it knows that the product is defective. In the long run, though, because of lawsuits, large settlements, and bad publicity, such unethical conduct will cause profits to suffer. An overemphasis on short-run profit maximization is perhaps the most common reason that ethical problems occur in business. Case-in-point 3.13: VW cheating on the pollution emissions tests of millions of their vehicles.

Sarbanes-Oxley Act

Congress enacted the Sarbanes-Oxley Act2 (SOX) after Enron, a major energy company, engaged in risky financial maneuvers that resulted in the loss of billions of dollars to shareholders. SOX was designed to help reduce corporate fraud and unethical management decisions by setting up accountability measures for publicly traded companies. Company heads must verify that they have read quarterly and annual reports and vouch for their accuracy. SOX also requires companies to set up confidential systems so that employees and others can "raise red flags" about suspected illegal or unethical auditing and accounting practices.

Duty-based ethics

Duty-based ethics is rooted in the idea that every person has certain duties to others, including both humans and the planet. It focuses on the obligations of the corporation. It deals with standards for behavior that traditionally were derived from revealed truths, religious authorities, or philosophical reasoning. These standards involve concepts of right and wrong, duties owed, and rights to be protected. Corporations today often describe these values or duties in their mission statements or strategic plans. Some companies base their statements on a nonreligious rationale, while others derive their values from religious doctrine.

Corporate Watch Groups

Given today's global communications network, few companies can assume that their actions in other nations will go unnoticed by "corporate watch" groups that discover and publicize unethical corporate behavior. As a result, U.S. businesses today usually take steps to avoid such adverse publicity— either by refusing to deal with certain suppliers or by arranging to monitor their suppliers' workplaces to make sure that employees are not being mistreated. ■ Example 3.18 A Chinese factory supplied parts for certain Apple products. After Apple discovered that the factory had violated labor and environmental standards, it began evaluating the practices at all the companies in its supply chain. Apple's audits revealed numerous violations, such as withholding worker pay as a disciplinary measure, falsifying pay records, and forcing workers to use unsafe machines. Apple terminated its relationship with one foreign supplier and turned over its findings to the Fair Labor Association, a nonprofit organization that promotes adherence to national and international labor laws, for further inquiry.

World Religions, Cultural Norms, and Ethics

Global businesses need to be conscious of the impact of different religious principles and cultural norms on ethics. For instance, in certain countries the consumption of alcohol is forbidden for religious reasons. It would be considered unethical for a U.S. business to produce alcohol in those countries and employ local workers to assist in alcohol production. How far should companies go to cater to business partners in other nations? Going too far to please clients in another country can alienate a firm's employees and domestic customers and generate bad press. Decision makers in charge of global business operations should consider these ethical issues and make some decisions from the outset.

Resolving Conflict (Principles of Right)

In general, rights theorists believe that whichever right is stronger in a particular circumstance takes precedence. Example 3.8 Murray Chemical Corporation has to decide whether to keep a chemical plant in Utah open, thereby saving the jobs of a hundred and fifty workers, or shut it down. Closing the plant will avoid contaminating a river with pollutants that might endanger the health of tens of thousands of people. In this situation, a rights theorist can easily choose which group to favor because the value of the right to health and well-being is obviously stronger than a right to work. Not all choices are so clear-cut, however.

Corporate social responsibility (CSR)

In pairing duty-based concepts with outcome-based concepts, strategists and theorists developed the idea of the corporate citizen. It combines a commitment to good citizenship with a commitment to making ethical decisions, improving society, and minimizing environmental impact. CSR is a relatively new concept in the history of business, but a concept that becomes more important every year. Although CSR is not imposed on corporations by law, it does involve a commitment to self-regulation in a way that attends to the text and intent of the law as well as to ethical norms and global standards. he company must link the responsibility of citizenship with the strategy and key principles of the business. Incorporating both the social and the corporate components of CSR and making ethical decisions can help companies grow and prosper. Some types of activities that businesses are engaging in today include the following: 1. Environmental efforts. 2. Ethical labor practices. 3. Charitable donations. 4. Volunteer work.

The Use of Social Media to Make Hiring Decisions

In the past, to learn about a prospective employee, an employer would ask the candidate's former employers for references. Today, employers are likely to also conduct Internet searches to discover what job candidates have posted on their Facebook pages, blogs, and tweets. On the one hand, job candidates may be judged by what they post on social media. On the other hand, though, they may be judged because they do not par- ticipate in social media. Given that the vast majority of younger people use social media, some employers have decided that the failure to do so raises a red flag. In either case, many people believe that judging a job candidate based on what she or he does outside the work environment is unethical.

Business as a Pure Profit Maximizer

In theory, if all firms strictly adhere to the goal of profit maximization, resources flow to where they are most highly valued by society. In an ideal world, profit maximization leads to the most efficient allocation of scarce resources. Other entities that are better suited to deal with social problems and perform charitable acts can specialize in those activities. The government, through taxes and other financial allocations, can shift resources to those other entities to perform public services. Thus, profit maximization can lead to the most efficient allocation of scarce resources.

Systematic Approach: IDDR ("I Desire to Do Right")

Involves organizing the issues and approaching them systematically. Ideal for a group. Step 1: Inquiry Understanding the problem. "If an employee feels uneasy about a particular decision, decision makers should pay attention and ask questions. The decision makers must identify the ethical problem and all the parties involved—the stake- holders. It is important that they not frame the issue in a way that gives them the answer they might prefer. After gathering the relevant facts, the decision makers can also consider which ethical theories can help them analyze the problem thoroughly. Making a list of the ethical principles that will guide the decision may be helpful at this point. Step 2: Discussion Once the ethical problem or problems have been clarified, a list of possible actions can be compiled. In discussing these alternatives, the decision makers should take time to think through each alternative completely and analyze its potential impact on various groups of stakeholders. They must evaluate the strengths and weaknesses of each option, along with its ethical and legal consequences. Step 3: Decision With all the relevant facts collected and the alternatives thoroughly analyzed and discussed, it's time to make a decision. Those participating in the decision-making process now work together to craft a consensus decision or plan of action for the company. Step 4: Review After the decision has been made and implemented, it is important for the decision makers to review the outcome to determine whether the solution was effective.

Watson Laboratories, Inc. v. State of Mississippi (Case 3.2)

Main issue: A drug manufacturer was accused of fabricating "average wholesale prices" for its drugs to maximize its profits and receive overpayments from Medicaid. Jurisdiction: Supreme Court of Mississippi, 241 So.3d 573 (2018). Background and Facts: Watson Laboratories, Inc., makes generic drugs, which are provided by pharmacies to Medicaid patients. In the state of Mississippi, a claim is submitted for the cost of the drug to Mississippi Medicaid. The claim is paid according to a percentage of the drug's average wholesale price (AWP). Like other drug makers, Watson published its products' AWPs. But for more than a dozen years, Watson set each AWP to meet the requirements to obtain a generic designation for the drug, without regard to the actual price. When Mississippi Medicaid learned that the actual prices were much lower than the published AWPs, the state filed a lawsuit in a Mississippi state court against Watson, alleging fraud. The court concluded that Watson had caused the state to overpay for the drugs and ordered the payment of more than $30 million in penalties, damages, and interest. Watson appealed. Court opinion: The court concluded that Watson did make a false representation because "the published numbers were not "suggested wholesale prices" or "list prices." They were fabricated numbers tied to nothing more than a ceiling amount it was necessary to stay under in order to obtain a generic designation." (pp. 53) The court determined it was evident that the Watson intended to deceive Mississippi Medicaid. "Mississippi Medicaid did not know that the AWPs had no relation to the actual prices paid for the drugs. As such, Mississippi Medicaid continued to reasonably rely on the AWPs * * * . All the while, Watson * * * exploited Mississippi Medicaid's lack of knowledge at the expense of the taxpayers of the State of Mississippi." (54) Decision and Remedy: The Supreme Court of Mississippi affirmed the lower court's order. Watson falsely represented its AWPs. Furthermore, "Watson knew that Mississippi Medicaid would rely on its false statements and benefitted from this reliance."

Uncertainty

One common denominator identified by businesspersons who have faced ethical problems is the feeling of uncer- tainty. They may be uncertain as to what they should do, what they should have done, or (as mentioned) whether there was even an ethical issue or ethical breach involved. Such uncertainty is practically unavoidable, but it should be treated as an indicator of a potential ethical problem. When employees or executives express uncertainty about a particular decision, it is therefore best to treat the situation as involving an ethical issue. Decision mak- ers should try to identify what the ethical dilemma is and why the individual or group is feeling uneasy. They should also take the time to think through the decision completely and discuss various options. They might want to consider whether the company would be pleased if the decision were reported to its clients or to the public. Building a process that supports and assists those facing ethical dilemmas can be key to avoiding unethical business practices (and any corresponding negative publicity).

Stakeholders and CSR

One view of CSR stresses that corporations have a duty not just to shareholders, but also to other groups affected by corporate decision making, called stakeholders. The rationale for this "stake- holder view" is that, in some circumstances, one or more of these groups may have a greater stake in company deci- sions than the shareholders do. A corporation's stakeholders include its employees, customers, creditors, suppliers, and the community in which it operates. Advocacy groups, such as environmental groups and animal rights groups, may also be stake- holders. Under the stakeholder approach, a corporation considers the impact of its decision on these stakeholders, which helps it to avoid making a decision that may appear unethical and may result in negative publicity. The most difficult aspect of the stakeholder analysis is determining which group's interests should receive greater weight if the interests conflict.

Utilitarianism

Outcome-based ethics, which focuses on the consequences of an action, not on the nature of the action itself or on any set of preestablished moral values or religious beliefs. It looks at the impacts of a decision in an attempt to maximize benefits and minimize harms. The premier philosophical theory for outcome-based decision making is utilitarianism, a philosophical theory developed by Jeremy Bentham (1748-1832) and modi- fied by John Stuart Mill (1806-1873)—both British phi- losophers. "The greatest good for the greatest number" is a paraphrase of the major premise of the utilitarian approach to ethics.

Outsourcing

Outsourcing is the practice by which a company hires an outside firm or individual to perform work rather than hiring employees to do it. Ethical problems involv- ing outsourcing most often arise when global companies outsource work to other countries in an attempt to save on labor costs. This type of outsourcing elicits an almost automatic negative reaction in the U.S. public. Some people feel that companies should protect American jobs above all else. Furthermore, ethical questions often arise as to the employment practices of the foreign companies to which the work is outsourced.

Business as a Corporate Citizen

Over the years, many people became dissatisfied with the profit-maximization theory. Investors and others began to look beyond profits and dividends and to consider the triple bottom line—a corporation's profits, its impact on people, and its impact on the planet. Magazines and websites began to rank companies based on their environmental impacts and their ethical decisions. Corporations came to be viewed as "citizens" that were expected to participate in bettering communities and society.

Awareness

Regardless of the context in which a decision is called for, sometimes businesspersons are not even aware that the decision has ethical implications. Perhaps they are focused on something else, for instance, or perhaps they do not take the time to think through their actions. ■ Case in Point 3.15 Japanese airbag maker Takata Corporation manufactured some airbags that used an ammonium nitrate-based propellant without a chemical drying agent. It was later discovered that these airbags tended to deploy explosively, especially in higher temperatures, higher humidity, and older vehicles. When the airbags deployed, metal inflator cartridges inside them sometimes ruptured, sending metal shards into the passenger cabin. The defective airbags caused a number of deaths and injuries in the United States, and the federal government ordered recalls of the devices in nearly 42 million vehicles nationwide. Takata executives likely did not intend to hurt consumers and may not even have considered the ethics of their decision. Takata, however, continued to produce airbags with this defect for years. A class-action lawsuit was filed against the company, which later sought bankruptcy protection.

Rationalization

Sometimes, businesspersons make decisions that benefit them or their company knowing that the decisions are ethically questionable. Afterward, they rationalize their bad behavior. For instance, an employee might rationalize that it is acceptable to take company property for personal use or to lie to a client just this one time, because she or he normally does not act in this way. An executive might rationalize that unethical conduct directed against a certain competitor is acceptable because that company deserves it. Individuals might rationalize that their con- duct is not unethical because it is simply a part of doing business. One suggestion that is useful in counteracting ratio- nalization is for businesspersons to first decide the right thing to do on an ethical level before making a business decision. Then they can figure out how to mitigate the costs of doing the right thing. This works much better to prevent unethical conduct than making decisions based solely on a financial or business basis and then trying to make that result seem ethical (by rationalizing).

Kantian Ethical Principles

The German philosopher Immanuel Kant (1724-1804) identified some general guiding principles for moral behavior based on what he thought to be the fundamental nature of human beings. Kant believed that human beings are qualitatively different from other physical objects and are endowed with moral integrity and the capacity to reason and conduct their affairs rationally. 1) People are not a means to an end 2) Categorical Imperative

Business Ethics

The study of business ethics typically looks at the decisions businesses make or have to make and whether those decisions are right or wrong. It has to do with how businesspersons apply moral and ethical principles in making their decisions. Those who study business ethics also evaluate what duties and responsibilities exist or should exist for businesses.

Cost-Benefit Analysis

Under a utilitarian model of ethics, an action is morally correct, or "right," when, among the people it affects, it produces the greatest amount of good for the greatest number or creates the least amount of harm for the fewest people. When an action affects the majority adversely, it is morally wrong. Applying the utilitarian theory thus requires the following steps: 1) A determination of which individuals will be affected by the action in question. 2) A cost-benefit analysis, which involves an assessment of the negative and positive effects of alternative actions on these individuals. 3) A choice among alternative actions that will produce maximum societal utility (the greatest positive net benefits for the greatest number of individuals).

Categorical Imperative

When a business makes unethical decisions, it often rationalizes its action by saying that the company is "just one small part" of the problem or that its decision has had "only a small impact." A central theme in Kantian ethics is that individuals should evaluate their actions in light of the consequences that would follow if everyone in society acted in the same way. This categorical imperative can be applied to any action.

Four-Part Analysis

When making decisions, a business should evaluate each of the following: 1. The legal implications of each decision 2. The public relations impact 3. The safety risks for consumers and employees 4. The financial implications

The Responsibility of Employees (Social Media)

While most of the discussion in this chapter concerns the ethics of business management, employee ethics is also an important issue. For instance, is it ethical for employees to make negative posts in social media about other employees or, more commonly, about managers? After all, negative comments about managers reflect badly on those managers, who often are reluctant to respond via social media to such criticism. Disgruntled employees may exaggerate the negative qualities of managers whom they do not like. Some may consider the decision by the National Labor Relations Board outlined in Example 3.14 to be too lenient toward employees and too stringent toward management. There is likely to be an ongoing debate about how to balance employees' right to free expression against employers' right to prevent the spreading of inaccurate negative statements online.