Problem: Some self-managed teams encounter a vexing problem: One or more members engage in social loafing, and other members are reluctant to try to rectify the situation. Social loafing can be especially troubling if team members' pay is based on team performance and social loafing reduces the team's performance and thus the pay of all members (even the highest performers). Even if managers are aware of the problem, they may be reluctant to take action because the team is supposedly self-managing.

Questions: 1. Either individually or in a group, think about the ethical implications of social loafing in a self-managed team.

2. Do managers have an ethical obligation to step in when they are aware of social loafing in a selfmanaged team? Why or why not? Do other team members have an obligation to try to curtail the social loafing? Why or why not?