Case | HBS Case Collection | October 2000 (Revised November 2000)

New Economy Ethics:

by Joseph L. Badaracco Jr. and Kim Slack


Entrepreneur Janice Schwartz is hoping to grow her start-up company by creating a technical advisory board and compensating members with discounted company stock. Schwartz is considering six candidates that can help her online education company in a variety of ways: as a potential customer, a media maven, venture capitalist, and technical advisor. The case suggests ways of compensating the advisory board and raises questions about whether there are new rules in the new economy about building professional networks, and when offers of equity constitute bribery and wrong doing.

Keywords: Business Startups; Crime and Corruption; Customers; Entrepreneurship; Venture Capital; Governing and Advisory Boards; Media; Networks; Internet;


Badaracco, Joseph L., Jr., and Kim Slack. "New Economy Ethics:" Harvard Business School Case 301-050, October 2000. (Revised November 2000.)