CASE STUDY 1: THE MBA PLEDGE

Since 2006, students at the Columbia Business School have been required to pledge I adhere to the principles of truth, integrity, and respect. I will not lie, cheat, steal, or tolerate those who do. This is a substantial promise, but it doesnt sound like itll create too many tremendous burdens or require huge sacrifices. A somewhat more demanding pledge solidified in 2010 when a group of business school students from Columbia, Duke Fuqua, Harvard, MIT Sloan, NYU Stern, Rensselaer Lally, Thunderbird, UNC Kenan-Flagler, and Yale met to formalize the following MBA Oath: As a business leader I recognize my role in society. My purpose is to lead people and manage resources to create value that no single individual can create alone. My decisions affect the well-being of individuals inside and outside my enterprise, today and tomorrow. Therefore, I promise that: I will manage my enterprise with loyalty and care and will not advance my personal interests at the expense of my enterprise or society. I will understand and uphold, in letter and spirit, the laws and contracts governing my conduct and that of my enterprise. I will refrain from corruption, unfair competition, or business practices harmful to society. I will protect the human rights and dignity of all people affected by my enterprise, and I will oppose discrimination and exploitation. I will protect the right of future generations to advance their standard of living and enjoy a healthy planet. I will report the performance and risks of my enterprise accurately and honestly. I will invest in developing myself and others, helping the management profession continue to advance and create sustainable and inclusive prosperity. In exercising my professional duties according to these principles, I recognize that my behavior must set an example of integrity, eliciting trust and esteem from those I serve. I will remain accountable to my peers and to society for my actions and for upholding these standards.

CASE STUDY 2: SKIN AND MONEY

In the mid-1980s in Los Angeles, Somen Steve Banerjee and his friend Nick DeNoia pooled money to start a new kind of strip club: men baring it for women. Since they had no idea what they were doing, it didnt go well. What finally helped was a couple of showmen from Las Vegas. Steve Merrit and his partner (professional and romantic) Mark Donnelly came aboard and hatched the idea of a Vegas-type song-and-dance show wrapped around the disrobing. To find performers, they cruised the muscle beaches outside LA. They brought the guys back to a studio, applied some Village Peoplestyle outfits (policeman, fireman, construction worker, and so on), and ran the group through a line-dancing routine. Their idea was simple but innovative: sex sells; but instead of making the show lustful, they made it entertaining. Drawing on their Las Vegas experience, Merrit and Donnelly understood how to do it, how to produce a fun theatrical fantasy instead of a crude flesh show. The general concept made sense and the execution was professional, but on opening night, no one knew what would happen. Chippendales exploded. Women went crazy for the performances, first in the United States, then Europe, and then everywhere as Banerjee and DeNoia rushed to form multiple traveling versions of their production. The time they didnt spend together mounting the shows they spent in court fighting over who was entitled to how much of the profits and who really owned the suddenly very valuable Chippendales name and concept. The dispute ended in 1987 after DeNoia was shot dead in his office. One major problem Chippendales faced is that it wasnt a hard show to copy. Get some muscled guys, some uniform-store costumes, a pop music soundtrack, and pound it all together into a dance routine with a little teasing; you dont need a genius to do it. So others started. Michael Fullington was a junior choreographer for Chippendales. He struck up a friendship with some of the showguys, and they split away into a group called Club Adonis. The original choreographersMerrit and Donnellyalso got in on the act, forming their own traveling revue called Night Dreams. Unhappy with these copycat acts, Banerjee hired a hit man to go around killing the whole bunch. The hit man, it turned out, was an FBI informant. Banerjee ended up in jail. The ensuing investigation led to more charges. There was arson (hed burned down one of his own clubs for the insurance money some time back) and also another count of conspiracy to murder since it was Banerjee whod arranged to have his original partner shot. The case never got to trial. Banerjee agreed to plead guilty, absorb a twenty-six year sentence, and give up his rights to Chippendales along with nearly all his money and real estate holdings. While the lawyers worked out the details, Banerjees wife Irene worked feverishly to organize a group of character witnesses. By bringing a parade of people to testify about her husbands good side at the sentencing hearing, she was hoping to get the jail time reduced a little bit. Or maybe she was hoping to hold on to more of the money and real estate theyd accumulated. No one got the chance to testify. On the morning of the hearing, Banerjee hung himself in his cell. Because the trial was never completed, the plea deal never went into effect. And because the guilty man was dead, there was no one left to charge with any crime. Chippendales and all the money and property associated with it went to Banerjees wife Irene.

CONCLUSION: (10 points)

1. How can these case incidents help you with your career development?

2. What are some of your thoughts and reflections on these case studies?