the study of be - a case for dr seuss

The study of business ethics:A case for Dr SeussMichelle R. Greenwood

In the beginning. . .

An analogy can be drawn between the function of

business ethics cases for management education

and the impact of classic cautionary tales on their

audience. No cautionary tale is more `classic' than

The Lorax by Doctor Seuss (Seuss 1971). At first

glance this short story may appear to be perfect

classroom reading for elementary school, but it

is not out of place in the tutorial rooms of the

modern university or in the training courses of

large organisations. Indeed, a number of core

ethical issues are addressed with great clarity in

both the text and the illustrations of this story.

This paper will consider the use of literature in

organisation studies generally, and its use as case

material, particularly in the teaching of manage-

ment ethics. It will then illustrate how a children's

story, The Lorax, can be used in management

education to highlight particular ethical issues.

The analysis will be based on a framework for

ethical decision making.

Theplace of literature in the studyoforganisations

The role of narrative fiction in the study of organis-

ations was addressed as early as 1968 (Czarniawska-

Joerges and Monthoux 1994: 7). Despite this, very

little research and interest in the topic followed,

although Monthoux's work provides an exception

(Monthoux 1979, Czarniawska-Joerges and Mon-

thoux 1994). More recently there has been a mild

resurgence of interest in the topic. Writers such as

Phillips (1995) and Alverez and Merchan (1992)

have brought to the discussion post-modern

concepts of narrative and story telling in the

organisational setting. Alverez and Merchan

believe that narrative fiction has a pervasive claim

in management education. They give two reasons

for this. Firstly, the emergence of the concept of

corporate culture, and its emphasis on values and

their embeddedness in organisational symbols,

myths and stories has created a role for organ-

isational storytelling. Secondly, the acknowledg-

ment of the importance of an ethical dimension

in business has led some management schools

to use fiction as a way of teaching moral issues.

Given the interest in critical thinking within

management it would not be surprising if this link

with post-modern theory focuses new attention on

the topic.

Literature as casematerial

The literature on this topic focuses on the

similarities and the differences between literature

and social science case writing. Phillips (1995)

emphasises the similarities between the practices

of the two. He claims that social scientists often do

what writers do; they create rather than discover,

they focus on the unique and the individual, and

they use illusion and rhetoric to make their case.

Similarly, writers often act like social scientists:

they test ideas against evidence, they generalise;

they pose testable questions about the social

world; and they try to remain faithful to details

of external experience. He suggests, therefore, that

Business Ethics: AEuropean Review

# Blackwell Publishers Ltd. 2000. 108 Cowley Road, Oxford OX4 1JF, UKand 350 Main St, Malden, MA 02148, USA. 155

there is an overlapping of boundaries, and that

there is no specific point at which social science

ends and narrative fiction begins.

On the other hand, authors emphasise the

primacy of the novel over more scientific case

studies. Literature offers the possibility to move

outside traditional forms of documentation and

analysis. It provides organisational theorists with

new ways of talking about organisations, and new

things to talk about (Phillips 1995). It offers an

opportunity to present the organisation in all its

truly complex and contradictory forms, since in

literature more room exists for doubt, uncertainty,

contradiction and paradox. No sense of closure is

present; no singular solution is demanded. The

novel describes knowledge without necessarily

analysing it, thus avoiding the scientific tendency

to absurd reductionism (Czarniawska-Joerges and

Monthoux 1994). The novel tells a story over time,

and many different viewpoints can be included in

the text; in this sense it is `live'. Easton (1995)

differentiates between case studies that are `live',

and case studies that are `dead'. A dead case

presents all the information at the start. For a case

to be live it must find a way to inject information

over time.

Narrative fiction also provides a medium for

dealing with the affective aspects of organisational

experience. It allows the reader to experience and

discuss the fear, humour, lust, envy and ambi-

tion that drive so much of the behaviour in

organisations (Phillips 1995). It draws the reader

into an understanding of subjective individual

experiences. The novel can reflect the temporality

and individuality of experience, and its location

in different cultures and traditions. It may provide

insight into organisational forms that no longer

exist or that may exist in the future. The novel also

gives the opportunity to use Weberian `ideal types'

in organisational analysis (Czarniawska-Joerges

and Monthoux 1994). Caricatures, ironic por-

traits, satires, metaphors can emphasise, clarify or

illustrate organisational behaviour and events;

anecdote and rhetoric can be used to support a

particular line of argument without invoking

methodological distinctions. This use of fiction

can provide a setting and an ambience that adds

life and interest to academic articles. It can evoke

feelings and images, and can provide atmosphere

to otherwise dry academic discussion.

Literature as casematerial in businessethics

Case studies were first used at Harvard Business

School as early as 1919, and the case study method

has since become a central method of teaching

in many graduate and undergraduate business

courses (Beauchamp and Bowie 1993). Easton

(1995) notes the large number of variations

possible in cases. They may range from a few

sentences to hundreds of pages. They may be

descriptions of real situations or works of fiction,

or incorporate elements of both. They are not

confined to business or management learning, but

are used in social administration, psychiatry,

architectural studies, education and potentially

in any discipline. Although written cases are most

common, they may be presented as film, audio

tape, video tape and more recently via the internet:

(the later can even be interactive, for an example

see the website at http://www.esocrates.com). A

key premise of the case method is that manage-

ment learning involves a core of universally

applicable principles that can be discerned and

absorbed through the study and discussion of

cases (Barnes, Christensen and Hansen 1994). In

the teaching of business ethics it has been observed

that case studies are employed most effectively

when they can be used to draw out broader ethical

principles and moral rules (Beauchamp and Bowie

1993: 43).

Case method teaching is assisted by the use of

an analytical framework. Decision-making frame-

works have been developed by a number of

different authors. Many of these frameworks are

grounded in ethical theory, and in general they

use references to normative ethical criteria and

procedural maxims and caveats. For example,

Northcott has identified ten core values which

provide `guideposts' for ethical decision making

(Northcott 1995). These are: caring; honesty;

accountability; promise keeping; pursuit of excel-

lence; loyalty; fairness; integrity; respect and

responsible citizenship. Whilst there are real

Volume 9 Number 3 July 2000

# Blackwell Publishers Ltd. 2000156

differences between some of these frameworks,

there are also strong similarities. Most writers

use a model of case analysis which involves a

summary of the case (key players and events),

identification of the issues and discussion of the

issues raised by the details of the case, develop-

ment of criteria for evaluating the case, develop-

ment of alternative courses of action for the

various players, evaluation of these alternatives,

and finally a recommendation as to the most

preferred course of action. This simple outline

will form the basis of the case analysis that

follows.

The Lorax as a business ethics case

The literature considered suitable for use in

management education varies greatly in its literary

merit, its temporal and cultural setting and in its

narrative style. It ranges from works by Zola and

Kafka to The Firm by John Grisham. But even in

the most eclectic of collections considered for man-

agement education (see for example Czarniawska-

Joerges and Monthoux 1994, Coles 1989) The Lorax

would be unique. This narrative is a distinctive

and brightly illustrated children's book of only

fifty pages. Nevertheless, these features enhance

many of the characteristics that make it particu-

larly suitable for use in management education. As

previously noted, case studies within management

education should encompass universally applic-

able principles that may be identified and analysed

through study and discussion. The reader is likely

to experience sympathy for the endearing char-

acters and to appreciate the humour of the story.

Indeed, many students have fond childhood

recollections of Dr Seuss stories generally, if not

specifically of The Lorax. The characters are

portrayed as caricatures, the plot is metaphorical,

and the symbols are transparent, universal and

not tied to particular temporal or cultural

contexts. The Lorax is written in beautiful poetic

prose and has striking colourful illustrations. The

students respond overwhelmingly to the whimsical

nature of the story, and to the novelty of analysing

such a non-traditional case.

Analysing the case

(i) Situation analysis: a summaryof the case

`Way back in the days when the grass was still green

and the pond was still wet and the clouds were still

clean. . .'

A character called the Once-ler discovered a

beautiful paradise and exploited it for all it was

worth. Ignoring the warnings of the Lorax, he

chopped down all the trees to make useless objects

known as Thneads, and in the end created a lifeless

desert. Centre stage is the Lorax. This grumpy old

wise man is the advocate of social responsibility.

He can be variously depicted as the `greenie' en-

vironmental activist, the government regulator or

the local councillor. He claims to speak for the trees

(as they cannot speak for themselves). He also pur-

ports to be the representative of the local inhabi-

tants, the barbaloots, and of the non-human species,

the swanee swans and the humming fish. He is

there to monitor the behaviour of Once-ler, the

faceless corporation, the multinational company

which comes to this pristine environment and

depletes the natural environment only to depart

as quickly as it came. The local inhabitants, the

brown barbaloots, had been living in the shade of

the truffala trees eating truffala fruit for an

indeterminate amount of time before the arrival

of the Once-ler. They lived in harmony with the

swanee-swans that enjoyed the fresh air, and with

the humming fish that enjoyed the clean water.

However when the Once-ler and his organisation

began chopping down the trees these inhabitants

could no longer survive in the environment and had

to leave. The final result was absolute environ-

mental degradation. The finale shows the Once-ler

passing on the final truffala seed to a little boy,

who depicts future generations, with much advice

on protecting the natural resources in the future.

(ii) Ethical issues: identification and discussionof theory based ethical issues

The creation of a product which did not exist before (thedependence effect)

`A Thnead's a Fine-Something-That-All-People Need'

The economic world-view argues that the production


157# Blackwell Publishers Ltd. 2000

of goods which satisfy the wants of consumers is

part of a market-driven cycle which brings benefit

to society. Production continues as more and new

goods and services are desired by consumers.

Despite increasing affluence there is no reduction

in the urgency of desires for goods or services. The

case in question here describes the development of

a new product, a product which did not exist

before. This product can serve many functions

which are presently provided by a number of

existing products. It is, therefore, a potential sub-

stitute for these existing products. Galbraith (1984)

questions the whole issue of the justification of

production based on the urgency of consumer

wants. He suggests that if the wants are to be

urgent then they must originate within the

individual. They cannot be urgent if they have

been fabricated, and they must not be contrived

by the process of production by which they are

satisfied. Hence the Once-ler is not warranted in

justifying the production of Thneads, nor justify-

ing the costs of that production by the fact that

someone wants it (Figure 1).

Figure 1: Extract from The Lorax (Seuss 1971)

`̀ Look,Lorax,'' I said.`̀ There is no cause foralarm.I chopped down one tree. I amdoing no harm.I ambeing quite useful.The thing is aThnead.

AThnead's a Fine-Something-That-All-People Need!It's a shirt. It's a sock. It's a glove. It's a hat.But it has other uses, yes far beyond that.

You canuse it for carpets.For pillows! For sheets!Or curtains! Or covers for bicycle seats!''

The Lorax said,`̀Sir you are crazy with greed.There isno one on earthwhowould buy that fool

Thnead!''But the very next minute Iproved hewaswrong.

For, just at that minute a chap camealong,and he thought that theThnead Ihad knittedwasgreat.

He happily bought it for three ninety-eight.I laughed at the Lorax,You poor stupid guy!

You never can tellwhat somepeoplewill buy.''

The relationship of the company with various stakeholders

Since the 1980s stakeholder theory has developed

the thesis that the organisation has a moral

relationship with entities other than its owners

(Freeman 1984). This claim is based on the

assumption that an organisation, as opposed to

an individual, possesses moral status and therefore

has to act in a morally responsible manner. For

Evan and Freeman (1988) this concept entailed

two significant principles. The first principle, that

of not harming the rights of others, is based on

deontological ethical reasoning. The second prin-

ciple, that of being responsible for the effects of

the organisation's actions, is based on consequen-

tialist tenets. The authors note that both these

branches of moral theory must exist in balance

within the modern corporation. Thus, the stake-

holder model balances the rights of claimants on

the corporation with the consequences of the

corporate form.

The entities known as stakeholders are com-

monly described as groups or individuals that are

affected by or can affect the organisation. They

include owners, employees, customers, suppliers

and the local community. Occasionally this

definition is extended to include the environment,

non-sentient beings, non-human species and future

generations. From this perspective the various

characters who are affected by the Once-ler's

actions, the Lorax, the Barbaloots, the swans and

the fish could all be considered stakeholders, and

could therefore potentially have legitimate claims

on the organisation. Under the broader definition

of stakeholders it is also possible to consider the

trees and the little boy (a member of the future

generation) as having stakeholder rights.

The use of natural resourceswithout limit (`tragedy of the

commons',`free riders')

`I chopped down one tree, I am doing no harm'

Traditionally, business has considered the environ-

ment to be a free, almost limitless good. Natural

resources have been seen as available for business

to use as it saw fit. The belief that corporations

can access natural resources with no constraint

and no cost to themselves has promoted wasteful

consumption and can lead to disaster. The conse-

quences of this attitude are described in a modern

parable `The Tragedy of the Commons' (Shaw

and Barry 1995). Imagine that peasants are

allowed to graze their animals in the commons,

the collectively shared pasture. It is in the interest

of each to permit his or her animal to graze



without limit. But the result of all doing so is that

the commons is soon overgrazed, making it of no

grazing value to anyone. Each believes that his

or her own use of the commons has a negligible

effect, but the cumulative result can be the gradual

destruction of the public good. This story can be

generalised and understood in the context of

modern corporations. It illustrates the point

that there can be a difference between the private

costs and the social costs of corporate actions.

Such social costs of business activities are re-

ferred to by economists as `externalities'. Unless

some way of recovering these costs from busi-

nesses can be found ± for instance via taxation ±

businesses assume the status of `free riders' in

society.

Distinction betweenhumanandnon-human species

The case does not differentiate between human

and non-human species. The inhabitants of the

land, the Lorax and the Barbaloots, are not

presented as identifiable humans. In fact, the only

clearly human character in the case is the little

boy who is handed the seed for the future.

Many writers have argued that sentient animals

have significant moral rights based upon their

capacity to have interests and valid claims

(Singer 1993, Partridge 1990). If it is argued that

any being that can be benefited or harmed has

rights, then the concept of non-human rights

becomes valid. Consequently the distinction be-

tween human rights and non-human rights be-

comes blurred.

On the other hand, it may be considered that

the issue of rights is connected to the question

of value. It is important to differentiate between

intrinsic and instrumental value. According to

Singer, something is of intrinsic value if it is good

or desirable in and of itself, in contrast to the

instrumental value attributable if something pro-

vides a use or purpose for others. It can be seen,

for instance, that the Lorax does treat the Swomee

Swans somewhat differently from the Brown

Barbaloots. Whilst he claims to be in charge of

the Barbaloots, he refers to `my poor Swomee

Swans. . . .why, they can't sing a note!' indicating

that he may see them more as possessing instru-

mental rather than intrinsic value.

The rights of inert aspects of nature: Do rocks have feelings?

`I am the Lorax. I speak for the trees. I speak for

the trees, for the trees have no tongues'

The suggestion that intrinsic value, as opposed to

instrumental value, extends beyond people and

sentient beings is at the core of the debate on

environmental ethics. Holmes Rolston III (1997)

designates the `naturalistic ethic' as the view that

some natural objects are morally considerable in

their own rights apart from human interests. For

example, human beings may value a mountain for

a variety of reasons ± because they can hike it,

build ski lifts on it, mine the ore deep inside it ± or

simply because they like looking at it (Shaw and

Barry 1995). According to a naturalistic ethic,

however, the value of the mountain is not simply a

function of human interests. Nature can have

value in and of itself. In contrast, Partridge (1990)

cautions against extending the concept of `rights'

to insentient beings. He believes that while most

people agree that we are not free to do what we

please with regard to nature, extending the rights

argument to include insentient beings dilutes its

moral significance.

Themoral obligation to future generations

While most of us would agree that it would be

immoral to make the world uninhabitable for

future generations, the `rights' of future genera-

tions is a difficult concept to define. It has been

suggested that since future generations do not

exist they cannot claim any rights (Partridge 1990,

Shaw and Barry 1995). It is impossible to know

anything about the people that will constitute

future generations, and therefore what their

interests will be. In contrast, it is argued that

regardless of how future generations evolve we can

affect them for better or worse by our present

actions. We may not know precisely who these

individuals are, nor their specific interests, but we

do know that they will have interests and what the

general nature of these interests will be (Partridge

1990). We can assume such general interests will

include access to natural resources such as fresh

air and clean water, and environmental diversity.

The Once-ler, in the end of the story, assumes that

the truffala tree is of value to the young boy. It



can be argued that the Once-ler had a moral

obligation to maintain the natural resources for

the future use of others. He has failed his moral

responsibility, and unjustly passes on this respon-

sibility to the boy when he entrusts him with the

care of the last truffala seed.

The actions ofmultinational corporations

The operations of multinational organisations are

often the focus of public concern. Often the

company is based in a developed country and

establishes an operation in a third world country.

This is usually for the purpose of using that

country's natural or labour resources. The Lorax

provides us with a clear example of this situation.

The Once-ler, together with his extended clan,

arrive at a place they have never been before, chop

down trees of a kind they have never seen before,

and do this in spite of the presence of beings they

have never met before. Multinationals face many

choices in how to guide the behaviour of their

subsidiaries, branches or associate suppliers in

their host country. They can adopt the ethical

values or regulatory framework of the home

country, they can adopt the ethical values or

regulatory framework of their host country, they

can do a combination of these, or they can do

something entirely different. De George (1993)

provides a set of guidelines for the moral be-

haviour of multinational corporations (Figure 2).

It may be argued that the Once-ler failed to fulfil

even one of these moral imperatives. He did not

consult the local inhabitants about using their

natural resources. He did not recognise the local

inhabitants as stakeholders with respect to his

enterprise. He did not attempt to establish any

relationship or contract with the local inhabitants

in any of the potential roles that they could have

held (e.g. employees, customers, or suppliers).

(iii) Development of evaluation criteria

When analysing a case it is essential to consider a

range of alternatives and evaluate them against a

set of criteria. These criteria may be derived from

a number of different sources ± from earlier

discussion surrounding the ethical issues at stake

(e.g. àssuming we can predict the general interests

of future generations. . .'), from normative ethical

theory (e.g. à deontologist would argue that. . .'),

or perhaps from highly subjective opinion (e.g. Ì

could never allow. . . .'). It is likely that the criteria

will involve a combination of derivations, that

they will vary from one individual to another, and

vary from one discussion to the next. The students

can be encouraged to respond from their personal

perspective ± for example, what concerns them or

what is important to them. Alternatively they can

be directed to develop criteria from a particular

theoretical perspective ± for example, how would a

utilitarian consequentialist decide what is impor-

tant.

(iv) Development of alternative courses ofaction

The case study analysis must include the con-

sideration of alternative courses of action by the

players. The `real' outcome of the case is only one

of many potential courses of action. It is

important to be creative at this stage, since this

process can produce an enormous number of

alternatives. Thus there must be some method of

ranking the alternatives. The evaluation criteria, if

already developed, will naturally provide such a

method. It is important, however, not to dismiss

alternatives too readily because they appear at

face value to contradict the criteria. Once again,

Figure 2: Sevenmoral guidelines formultinationalcorporations (De George 1993).

1. MNCs should do no intentional direct harm.2. MNCs should producemore good than bad for the

host country.3. MNCs should contribute by theiractivities to the host

country's development.4. MNCs should respect the human rights of its

employees.5. MNCs should pay their fair share of taxes.6. To the extent that local culture doesnot violatemoral

norms,MNCs should respect the local culture andworkwith it not against it.

7. MNCs should cooperatewith the local government inthe development and enforcement of just backgroundinstitutions.



the students can be encouraged to respond from

their personal perspective (e.g. What should the

Once-ler have done? What would you have done if

you were the Lorax?). Alternatively they can be

directed to consider the alternatives from a

particular theoretical stance (e.g. How would a

deontologist view the actions of the Once-ler?

How would a naturalist view the plight of the

trees?)

(v) Evaluation of the alternatives

The alternatives should be evaluated against the

agreed upon criteria. Since the alternatives are

often hypothetical, the outcomes will have to be

assumed or predicted. For example, if it is

suggested that the Lorax should use a means of

physical intervention, such as tying himself to the

super-axe-hacker, then the assumption is made

that this intervention will be successful and have

no unintended outcomes. Two warnings regarding

predicting outcomes should be noted (Easton

1995). Firstly, all possible outcomes must be

predicted. It may be that a particular solution

solves one problem at the expense of creating

another. Secondly, prediction is a difficult and

uncertain process. Not all outcomes are equally

likely to occur. This uncertainty should be taken

into account in the evaluation process. There may

need to be a series of stages where alternatives are

elaborated, examined and qualified.

(vi) Recommendations

A choice is made. The recommendation of a

particular course of action must be understood

in the context of the decision-making process,

particularly with respect to the criteria used for

evaluation. It should be clear from the previous

stages why this particular outcome is considered

most favourable.

And finally. . .

The use of narrative fiction as case material for the

study of management ethics has been demon-

strated. However, The Lorax should be taken

seriously, but not too seriously. Earlier discussion

identified some significant values of fiction for

organisational studies, but there are, of course,

advantages to the use of more traditional types of

material. The presentation of a case based on an

actual organisation's genuine experience has the

benefits of being `real' to the student. They may

have heard of the company, bought its product,

even know someone who worked for it. They may

know of the events depicted from their direct

experience or through the media. Most people

remember events like the Challenger disaster or

Dow Corning's problems with silicon breast im-

plants. A management ethics programme should

take advantage of both traditional and non-

traditional case material. Whether the student is

a naõÈ ve undergraduate or a seasoned manager, the

use of one type of material exclusively has poten-

tial downfalls. Reliance on traditional material

entirely risks the development of routine, boring,

narrow courses and poses the ever present

difficulty of finding suitable material. On the

other hand, dependence on literature exclusively

exposes the course to being seen as esoteric,

impractical or even trivial. It is recommended

that a programme begin with traditional material

to provide a solid basis for the discussion of ethical

issues and the understanding of case analysis tech-

nique. The introduction of non-traditional cases

later in the programme will provide students with

a broader and more intense experience and with

the possibility of wider and more intense explor-

ation of ethical issues.

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