Journal of Business Ethics Education

Volume 19, 2022

Duane Helleloid
Pages 193-208

Buying Native Sovereignty

For centuries, outside business organizations have sought to enter into business relationships with indigenous populations, often benefitting both parties. However, the power imbalance that foreign settlers had over indigenous peoples often led to exploitative relationships whereby the indigenous people were marginalized and at times treated inhumanely. While the nature of trade and relationships has changed over time, the special status that native tribes enjoy in U.S.A. continues to attract attention from business enterprises. In the past few years, various organizations have found it advantageous to their business interests to engage in transactions with Native American tribes. Three specific examples are described: Allergan transferred patent rights to a tribe to circumvent a U.S. patent review panel; Tesla opened a store and service center on native land in New Mexico to get around the state’s dealership laws; and Lume Cannabis Co. opened retail stores on native lands in Michigan near communities that had decided to not license recreational cannabis stores. All three examples raise questions over the ethics of buying access to native sovereignty. Students are asked to apply ethical theories to try and identify what distinguishes ethical and unethical transactions.