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Caterpillar, Inc. (CAT) is a global manufacturer of construction and mining equipment, machinery, and engines. Best known for its machinery, including its tractors, off-highway trucks, wheel dozers, and backhoe loaders, CAT has more than 500 dealer locations worldwide. In 2014 the company achieved global revenues of more than $55.2 billion. As a result, CAT faces the challenging tasks of managing a complex network of stakeholders. CAT has made a name for itself not only for quality products but also for its ethical standards and corporate social responsibility (CSR). However, a number of recent issues—including federal probes and conflicts with employees—have tainted Caterpillar’s ethical image. This case will emphasize CAT’s ethical initiatives and CSR efforts, as well as recent challenges to its ethical reputation. We start off by providing a brief background of CAT’s history. We then examine CAT’s ethical progress in areas such as ethical conduct, stakeholder relations, and sustainability. The case will conclude by looking at some current ethical issues and risk areas CAT must address to fortify its ethical reputation.

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