Academic

Business Ethics from the Shark Tank

By Jacqueline Lipton

I guess I have to start this post by admitting that I am getting a little hooked on ABC's new series, Shark Tank, modelled (I assume) on the BBC's Dragons' Den.  This is the reality show where would-be entrepreneurs try to sell their new ideas for business venutres to one or more angel investors (ie the sharks) in return for a stake in the business.  Last night, I was struck by the moral dilemmas inherent in some of the business plans and wondered if this could be a good vehicle for teaching business ethics.  See what you think of the following.

1. One of the entrepreneurs had started a "celebration of life" eulogy business.  Not herself attached to a funeral home, her approach to drumming up custom was to bring a therapy dog to old folks' homes/hospices and to get to know families who may ultimately be interested in her services.  The sharks split fairly evenly on whether they thought this business plan was immoral ambulance-chasing or was, in fact, just a good business tactic.

2. Another entrepreneur admitted he was approaching the sharks for backing rather than seeking a bank loan for his business because he had gone into personal bankruptcy previously and was not able to obtain a bank loan.  When one of the sharks called him "radioactive" (in terms of risk) because of the bankruptcy, several of the other sharks attacked him (ie the fellow shark, not the contestant) for giving viewers the wrong message about bankruptcy, particularly in these troubled economic times.

3. The final contestants on last night's episode had started an online journaling business for tracking depression and other emotions or problems usually treated in psychotherapy - one of the entrepreneurs was, in fact, a therapist.  Their idea was ultimately to license the service to a major health insurance company.  Three of the sharks jumped on this idea as a money-maker, particularly if an insurance company could be convinced to require its customers to sign up for the service.  There was much enthusiasm demonstrated for requiring insured individuals to pour out their hearts and mental health problems into an online business licensed by their insurance company, with absolutely NO discussion - at least in the portion of the negotiations that aired on TV - about the potential privacy implications of this business plan.  Does anyone ensure the privacy of the customers' personal data?  Who owns the data?  What uses can be made of the data by the business running the service and/or by the insurance company to whom they have licensed it?

Any reactions? 

Full post as published by The Faculty Lounge on September 07, 2009 (boomark / email).