Dilemma 1 The Case of the Really Sweet Deal Case File 1 Your job description has been slightly updated Here's the new one, for your reference Vice President of Business Development You are responsible for developing and implementing foreign and domestic pharmaceutical in and out licensing programs You will conduct market research and financial analyses of products undergoing internal development and in licensing, and you will provide strategic direction for expansion into international markets for research and sales Carol Tempest Vice President of Human Resources G BioSport Case File 2 I'm not always the best at pep talks, but I think you and your department could use one right about now We've been in a dry spell for almost a year now As a company strongly attached to the athletic world, we know what its like to have a rough season or a heartbreaking loss If Im the head coach in this metaphor, Id call this last year a rebuilding year New opportunities have been few and far between I want to emphasize that I don't blame anyone on your teamyou all have put in tremendous effort to make the most of a bad situation Our misfortune is due to economic factors and a general downturn in the kind of investments and partnerships our company has historically relied on All I can say is that now is the time to keep your eyes and ears open for any opportunities We could use a few wins Don't lose hope and keep up the great work Carson Nelson Chief Executive Officer G BioSport Case File 3 Sorry, boss Nothing new to report I had a potential deal with Argent Health Services, but that fell through before it even got off the ground Its going to be another slow month Ben Wu Business Development G BioSport Case File 4 Hey, Ever since your latest presentation to the board, I've been looking for ways to help out I've developed a pretty large network over the years, which means I've always got a favor or two to call in So, because we're such good friends (and we all want our little company to thrive ), I've convinced a colleague of mine to offer an expansion opportunity for your current research program Her name is Dr Elizabeth Anderson I'll forward you her contact info and get her in touch with you She just purchased a research clinic in Nevada and has expressed interest (based on the preliminary information I sent her) in working with G BioSport on a two year arrangement for research on our new supplement Heres the gist of it G BioSport would cover some of her clinics costs (new equipment in the physical therapy department, pay increases and hiring costs to expand the staff, etc ) and, in exchange for our funding, Dr Anderson has assured me that G BioSport's products will be prescribed and recommended to physical therapy patients at her clinic, so we'd make our initial investment back in no time Profits from the sale of those products would be used, partially, to fund clinics and health care services, which will help Dr Anderson's finances, so this arrangement is win win I'll let her make it officialexpect to hear from her soon You can thank me later Regards, Dr Morgan Gardner Board of Directors G BioSport Case File 5 Morgan copied me on his email to you Looks like he's already done a pretty good job of selling my offer, but I know you'll have plenty of questions and details you'd like to hammer out I find it's much easier to have those discussions in person rather than email, so let me know a time that works and you can meet us at our clinic in Juniper I believe its a short drive from your office Well meet, hammer out the details, answer any of your questions, and I can introduce you to some of the other players in our organization What do you say Dr Elizabeth Anderson Owner Administrator Valley Wellness Case File 6 Received offer from Dr Anderson (thanks to Morgans networking) Looks good, except for one problem Nobody seems aware that Im married to the head of physical therapy at Dr Andersons clinic Part of the deal involves pay increases and facilities upgrades in that department So my family benefits directly from the deal Better ask Cary for legal advice Case File 7 Thanks for consulting with me about the deal you're exploring Your caution is admirableit's always better to get legal advice and not need it than wish you had gotten the advice after it's too late Here are some relevant excerpts from our company's conflict of interest policies Employees are expected to make or participate in business decisions and actions in the course of their employment with us based on the best interest of our Company as a whole, and not based on personal relationships or benefits Our employees are expected to apply sound judgment to avoid conflicts of interest that could negatively affect our Company, whether or not we have specific rules for that particular situation The commitment we expect from our employees is that they will evaluate the potential conflict of interest in any financial arrangement with a third party by considering the following factors, among others Whether it may interfere with the employee's job performance, responsibilities, or morale Whether the employee has access to confidential information Any potential adverse or beneficial impact on our business Any potential adverse of beneficial impact on our relationships with our customers, suppliers, or other service providers Whether it would enhance or support a competitor's position The extent to which it would result in financial or other benefit (direct or indirect) to the employee The extent to which it would result in financial or other benefit (direct or indirect) to one of our customers, suppliers, or other service providers and The extent to which it would appear improper to an outside observer Employees are expected to disclose to us any situation that reasonably could be expected to give rise to an actual or potential conflict of interest That's the long version To sum up with respect to your particular case, you have a few things to consider Would your accepting Dr Anderson's offer appear improper Would you consider the trip a financial benefit And, perhaps more importantly, what do you know about your friend on the Board of Directors Does he have an investment in Dr Anderson's company I trust you'll do your due diligence here Ill also make sure that Rian, our Ethics Officer, gets in touch with you to assist Again, thanks for reaching out Cary Bryant General Counsel G BioSport Step 2 Being Intelligent Part 2Determine the Stakeholders You notice an email from Carson, the CEO I just got a weird note from Dr Gardner He told me he sent a great opportunity your way, but he was cryptic and wouldnt give me any details Said he wanted to make sure you got the credit for landing this one because youre his favorite member of the leadership team Do you know what the heck hes talking about We now know that the primary issue is how to evaluate and pursue new business opportunities effectively while giving due consideration to potential conflicts of interest Right away, you'll notice that Dr Anderson and Dr Gardner, as the two people pushing for you to accept the deal, are involved However, if you dig deeper, you'll realize that other people have a stake in this situation as well Every ethical decision you make ripples outward and affects others In ethical decision making, the people who may be affected by your choice are called stakeholders They're watching you with interest, knowing their fate is in your hands No pressure On this page, you'll consider the people involved in the dilemma and determine who will actually be affected by your decision Expanding your circle of concern and consideration allows you to make your decision intelligently, as you'll have a greater understanding of the potential consequences Stakeholders can be divided into primary and secondary groups You'll be asked to identify the primary stakeholders and leave the secondary ones behind Primary stakeholders are those who are directly involved in this situation, such as the decision maker are directly affected by the decision, such as those with financial stake in the company or have interests that should be protected, such as the companys CEO Secondary stakeholders are those who are so far removed from the situation that you don't have to worry about them, will experience little or no impact as a direct result of your choice, or are observers who don't have any real involvement in the situation Below is a list of people who might qualify as primary stakeholders Only six of them are primary stakeholders Four of them are secondary stakeholders Finding the four least importantthe four not to pickmight be easier Your call Check the six people or groups of people you think are primary stakeholders Who are the primary stakeholders in this problem 1 Carson Nelson, Chief Executive Officer He is responsible for everything that goes on in the organization and often liable for the company's ethical mistakes 2 Cary Bryant, G BioSports General Counsel He would have to manage any litigation that resulted from your actions 3 You, the Vice President of Business Development You have to make and implement the decision 4 Patients at Dr Elizabeth Andersons clinic If the proposed deal goes through, they will have your companys products recommended and prescribed to them 5 Dr Elizabeth Anderson, Board member She owns a research clinic that might become a business partner, if you pursue a deal 6 Your spouse, an executive at Dr Anderson's clinic Your spouse is in a position to benefit directly from the deal you're considering, and no one in either company seems to be aware of your relationship 7 Members of the Board of Directors other than Dr Gardner They are involved in the overall management of the company 8 Medical staff at Dr Andersons clinic If the proposed deal takes place, they will be recommending and prescribing your companys medications to their patients 9 Shareholders of G BioSport They are interested in anything that affects the value of their investment 10 Dr Morgan Gardner, a member of your companys Board of Directors He brought the opportunity with Dr Anderson to your attention and has acted as the liaison between you and her

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Dilemma #1 The Case of the Really Sweet Deal Case File #1 Your job description has been slightly updated. Here's the new one, for your

Dilemma #1 The Case of the Really Sweet Deal

Case File #1

Your job description has been slightly updated. Here's the new one, for your reference. Vice President of Business Development You are responsible for developing and implementing foreign and domestic pharmaceutical in- and out-licensing programs. You will conduct market research and financial analyses of products undergoing internal development and in-licensing, and you will provide strategic direction for expansion into international markets for research and sales. Carol Tempest Vice President of Human Resources G-BioSport

Case File #2

I'm not always the best at pep talks, but I think you and your department could use one right about now. We've been in a dry spell for almost a year now. As a company strongly attached to the athletic world, we know what its like to have a rough season or a heartbreaking loss. If Im the head coach in this metaphor, Id call this last year a "rebuilding year." New opportunities have been few and far between. I want to emphasize that I don't blame anyone on your teamyou all have put in tremendous effort to make the most of a bad situation. Our misfortune is due to economic factors and a general downturn in the kind of investments and partnerships our company has historically relied on. All I can say is that now is the time to keep your eyes and ears open for any opportunities. We could use a few wins. Don't lose hope and keep up the great work! Carson Nelson Chief Executive Officer G-BioSport

Case File #3

Sorry, boss. Nothing new to report. I had a potential deal with Argent Health Services, but that fell through before it even got off the ground. Its going to be another slow month. Ben Wu Business Development G-BioSport

Case File #4

Hey, Ever since your latest presentation to the board, I've been looking for ways to help out. I've developed a pretty large network over the years, which means I've always got a favor or two to call in. So, because we're such good friends (and we all want our little company to thrive!), I've convinced a colleague of mine to offer an expansion opportunity for your current research program. Her name is Dr. Elizabeth Anderson. I'll forward you her contact info and get her in touch with you. She just purchased a research clinic in Nevada and has expressed interest (based on the preliminary information I sent her) in working with G-BioSport on a two-year arrangement for research on our new supplement. Heres the gist of it: G-BioSport would cover some of her clinics costs (new equipment in the physical therapy department, pay increases and hiring costs to expand the staff, etc.) and, in exchange for our funding, Dr. Anderson has assured me that G-BioSport's products will be prescribed and recommended to physical therapy patients at her clinic, so we'd make our initial investment back in no time. Profits from the sale of those products would be used, partially, to fund clinics and health care services, which will help Dr. Anderson's finances, so this arrangement is win-win. I'll let her make it officialexpect to hear from her soon. You can thank me later! Regards, Dr. Morgan Gardner Board of Directors G-BioSport

Case File #5

Morgan copied me on his email to you. Looks like he's already done a pretty good job of selling my offer, but I know you'll have plenty of questions and details you'd like to hammer out. I find it's much easier to have those discussions in person rather than email, so let me know a time that works and you can meet us at our clinic in Juniper. I believe its a short drive from your office. Well meet, hammer out the details, answer any of your questions, and I can introduce you to some of the other players in our organization. What do you say? Dr. Elizabeth Anderson Owner/Administrator Valley Wellness

Case File #6

Received offer from Dr. Anderson (thanks to Morgans networking). Looks good, except for one problem. Nobody seems aware that Im married to the head of physical therapy at Dr. Andersons clinic. Part of the deal involves pay increases and facilities upgrades in that department. So my family benefits directly from the deal! Better ask Cary for legal advice...

Case File #7

Thanks for consulting with me about the deal you're exploring. Your caution is admirableit's always better to get legal advice and not need it than wish you had gotten the advice after it's too late. Here are some relevant excerpts from our company's conflict of interest policies: "Employees are expected to make or participate in business decisions and actions in the course of their employment with us based on the best interest of our Company as a whole, and not based on personal relationships or benefits. Our employees are expected to apply sound judgment to avoid conflicts of interest that could negatively affect our Company, whether or not we have specific rules for that particular situation. The commitment we expect from our employees is that they will evaluate the potential conflict of interest in any financial arrangement with a third party by considering the following factors, among others:

Whether it may interfere with the employee's job performance, responsibilities, or morale; Whether the employee has access to confidential information; Any potential adverse or beneficial impact on our business; Any potential adverse of beneficial impact on our relationships with our customers, suppliers, or other service providers; Whether it would enhance or support a competitor's position; The extent to which it would result in financial or other benefit (direct or indirect) to the employee; The extent to which it would result in financial or other benefit (direct or indirect) to one of our customers, suppliers, or other service providers; and The extent to which it would appear improper to an outside observer.

Employees are expected to disclose to us any situation that reasonably could be expected to give rise to an actual or potential conflict of interest." That's the long version. To sum up with respect to your particular case, you have a few things to consider. Would your accepting Dr. Anderson's offer "appear improper"? Would you consider the trip a financial benefit? And, perhaps more importantly, what do you know about your friend on the Board of Directors? Does he have an investment in Dr. Anderson's company? I trust you'll do your due diligence here. Ill also make sure that Rian, our Ethics Officer, gets in touch with you to assist. Again, thanks for reaching out. Cary Bryant General Counsel G-BioSport

Step 2: Being Intelligent Part 2Determine the Stakeholders You notice an email from Carson, the CEO. I just got a weird note from Dr. Gardner. He told me he sent a great opportunity your way, but he was cryptic and wouldnt give me any details. Said he wanted to make sure you got the credit for landing this one because youre his favorite member of the leadership team. Do you know what the heck hes talking about? We now know that the primary issue is how to evaluate and pursue new business opportunities effectively while giving due consideration to potential conflicts of interest. Right away, you'll notice that Dr. Anderson and Dr. Gardner, as the two people pushing for you to accept the deal, are involved. However, if you dig deeper, you'll realize that other people have a stake in this situation as well.

Every ethical decision you make ripples outward and affects others. In ethical decision-making, the people who may be affected by your choice are called stakeholders. They're watching you with interest, knowing their fate is in your hands. No pressure! On this page, you'll consider the people involved in the dilemma and determine who will actually be affected by your decision. Expanding your circle of concern and consideration allows you to make your decision intelligently, as you'll have a greater understanding of the potential consequences. Stakeholders can be divided into primary and secondary groups. You'll be asked to identify the primary stakeholders and leave the secondary ones behind. Primary stakeholders are those who:

are directly involved in this situation, such as the decision maker;
are directly affected by the decision, such as those with financial stake in the company; or
have interests that should be protected, such as the companys CEO.

Secondary stakeholders are those who:

are so far removed from the situation that you don't have to worry about them,
will experience little or no impact as a direct result of your choice, or
are observers who don't have any real involvement in the situation.

Below is a list of people who might qualify as primary stakeholders. Only six of them are primary stakeholders. Four of them are secondary stakeholders. Finding the four least importantthe four not to pickmight be easier. Your call. Check the six people or groups of people you think are primary stakeholders.

Who are the primary stakeholders in this problem?

1. Carson Nelson, Chief Executive Officer - He is responsible for everything that goes on in the organization and often liable for the company's ethical mistakes.

2. Cary Bryant, G-BioSports General Counsel - He would have to manage any litigation that resulted from your actions.

3. You, the Vice President of Business Development - You have to make and implement the decision.

4. Patients at Dr. Elizabeth Andersons clinic - If the proposed deal goes through, they will have your companys products recommended and prescribed to them.

5. Dr. Elizabeth Anderson, Board member - She owns a research clinic that might become a business partner, if you pursue a deal.

6. Your spouse, an executive at Dr. Anderson's clinic - Your spouse is in a position to benefit directly from the deal you're considering, and no one in either company seems to be aware of your relationship.

7. Members of the Board of Directors other than Dr. Gardner - They are involved in the overall management of the company.

8. Medical staff at Dr. Andersons clinic - If the proposed deal takes place, they will be recommending and prescribing your companys medications to their patients.

9. Shareholders of G-BioSport - They are interested in anything that affects the value of their investment.

10. Dr. Morgan Gardner, a member of your companys Board of Directors - He brought the opportunity with Dr. Anderson to your attention and has acted as the liaison between you and her.