Ethics is about three things; dilemmas, values, and framing. First, every ethical situation involves a dilemma. Do we overlook individual behavior for the greater benefit ------ "On the one hand, he's a cheater. On the other hand, he's the star of the team."? Do we respect the privacy of individuals or respect national security ------ listening to calls of people who are on the terrorists watch list, or listening to all international calls including those I make to my daughter living in England? Second, every ethical situation is seen through the lens of our worldview, our values, and our culture. Some of us are naturally and innately optimistic while others are pessimistic. Some of us grew up in a politically conservative family and environment, adopting that view without really thinking about it, while others grew up in a politically liberal environment. A Boy Scout learns an entirely different set of values than does a member of a neighborhood gang. Some Native American cultures and some Asian cultures value the the needs of the group or tribe more than the needs of the individual. All these factors color our understanding of an ethical situation, the viable alternatives, and the appropriate choice. Third, our understanding of an ethical situation is heavily influenced by how we choose to frame the question? Consider this example.

John went to lunch and left his computer logged onto the Internet. He had been answering his mail from his football buddies. In addition, he has been updating his fantasy football website on and off thought the day. There just never seems to be enough time to get everything done."

There are several ways to frame this ethical situation. For example, we could say that John committed a security violation by not logging off, putting the company's information at risk. On the other hand, we may instead say that John has too little to do at work. His responsibilities need to be expanded. His supervisor has failed, not John. Or, we could say John is a chronic slacker who should be disciplined. Someone may argue that John's behavior is no worse, even less bad, than his supervisors. But we desperately need the supervisor so we should try to frame the question to affect John but not the supervisor. Or another way of framing the question may be that John is our top sales producer. He is deeply involved in our most critical job and the customer loves him. We dare not fire, or even discipline him. It is said that "He who frames the question wins the debate." referring to the fact that the framing of the question so powerfully shapes what choices we consider. Remember, every ethical situation involves some sort of dilemma or conflict between interests or desires. Every ethical situation is seen through the bias of our world view, our values, and our culture. Every ethical situation is influenced by how we choose to frame the dilemma/question.

Read the paper, "Ethical versus Legal". It describes several real-life examples of situations in which an action, or lack of action, may be legal but not ethical, or vice versa. The business world is filled with such dilemmas.

Read the mini-case, "The Product is Inferior", then answer the following questions.

1. Describe the quality-related mistake or mistakes that occurred in this case. What quality-related actions may have prevented this situation?
2. Who are the stakeholders in this situation ---- who's interests must management consider when deciding how to deal with the situation? Which stakeholders did you consider but omit? Why?
3. Do you believe this is a legal issue, an ethical issue, both, or neither? Your explanation should show that you read and understand the "Ethical versus Legal" paper.
4. What are the pros and cons of selling the shoes?
5. What are the pros and cons of destroying the shoes?
6. What should AFI's executives do - sell the shoes or destroy them? Explain your reasoning.