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Carolus Magnus University
A 101 - Management and Ethics - Study Guide
Welcome to "Management and Ethics" - What do you have to expect
In this document (Study Guide) I want to offer a brief overview about the content, the
structure and the learning objectives of this "Management und Ethics"-course.
When ever you will feel or get lost in the next weeks, just take again a look at this
overview. Its nothing else than a kind of a guidepost in the virtual environment.
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1. Introduction
Basic facts about the course
This course will introduce you to the theoretical approaches, dimensions and
practical oriented techniques of Business Ethics. You will be engaged in
discussions and exercises reflecting the theory and requiring the application of
theory to practical problems. Ultimately, the course will position you to provide
additional value to your individual management style and/or to your capability to
realize a different, more sustainable management style.
In short words, the subject of Management and Ethics addresses what can be
considered morally right and wrong in the way businesses make decisions and
conduct their activities. The course covers the foundations of business ethics and
applying these theories, concepts and tools to each of the corporation's major
stakeholders. It considers the implications of three major challenges facing the
corporation: corporate citizenship, globalization and sustainability.
The purpose of this Study Guide is to provide you with all the rules and
requirements of this course, with selected additional material beyond what is
provided in the textbook and supplementary materials to make the study of
Management and Ethics more relevant, interesting, and valuable to you.
As the main literature base I will use the textbook "Business Ethics" from Crane
and Matten (see below). Since you will need the textbook from the first until the last
day of the course, I request you to borrow a copy of the textbook at the
Wolframstrasse-library. There are round about 40 copies available.
Crane, A., Matten, D.: Business Ethics, 2th ed., Oxford, 2007.
The course material is written to link with and supplement this
textbook. The textbook will be a valuable resource not only for this
course, but also for your future work. Since there are additional
resources to the text book online, please take a look at the page:
Oxford Press; Online Resource Center
Table of contents of this Study Guide
1. Introduction to Management and Ethics and to the course
About Management and Ethics
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Learning Objectives
Course Overview
2. Course Planning
Study and Work Plan
Final Grades
Weekly Discussions
Case Work
Major Individual Assignment
3. Lessons
Introduction to Management and Ethics
Theoretical framework and Business Ethics management tools
Employees and Business Ethics
Consumers and Business Ethics
Shareholder and Business Ethics
Suppliers and competitors and Business Ethics
Civil society, NGO's and governments and Business Ethics
Future perspectives of Business Ethics
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About Management and Business Ethics
A short summary of the topic
Simply put, ethics involves learning what is right or wrong, and then doing the right
thing -- but "the right thing" is not nearly as straightforward as conveyed in a great
deal of business ethics literature. Most ethical dilemmas in the workplace are not
simply a matter of "Should Bob steal from Jack?" or "Should Jack lie to his boss?"
Many ethicists consider emerging ethical beliefs to be "state of the art" legal
matters, i.e., what becomes an ethical guideline today is often translated to a law,
regulation or rule tomorrow. Values, which guide how we ought to behave, are
considered moral values, e.g., values such as respect, honesty, fairness,
responsibility, etc. Statements around how these values are applied are
sometimes called moral or ethical principles.
The concept has come to mean various things to various people, but generally it's
coming to know what it right or wrong in the workplace and doing what's right -- this
is in regard to effects of products / services and in relationships with stakeholders.
Consequently, there is no clear moral compass to guide leaders through complex
dilemmas about what is right or wrong. Note that many people react that business
ethics, with its continuing attention to "doing the right thing," only asserts the
obvious ("be good," "don't lie," etc.), and so these people don't take business
ethics seriously. For many of us, these principles of the obvious can go right out
the door during times of stress.
Business ethics has come to be considered a management discipline, especially
since the birth of the social responsibility movement in the 1960s. In that decade,
social awareness movement raised expectations of businesses to use their
massive financial and social influence to address social problems such as poverty,
crime, environmental protection, equal rights, public health and improving
education. The emergence of business ethics is similar to other management
disciplines. As commerce became more complicated and dynamic, organizations
realized they needed more guidance to ensure their dealings supported the
common good and did not harm others -- and so business ethics was born. Today,
ethics in the workplace can be managed through use of codes of ethics, codes of
conduct, roles of ethicists and ethics committees, policies and procedures,
procedures to resolve ethical dilemmas, ethics training, etc.
Many people are used to reading or hearing of the moral benefits of attention to
business ethics. However, there are other types of benefits, as well. The following
list describes various types of benefits from managing ethics in the workplace.
Attention to business ethics has substantially improved society.
Ethics programs help maintain a moral course in turbulent times.
Ethics programs cultivate strong teamwork and productivity.
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Ethics programs support employee growth and meaning.
Ethics programs are an insurance policy -- they help ensure that policies are
legal.
Ethics programs help avoid criminal acts "of omission" and can lower fines.
Ethics programs help manage values associated with quality management,
strategic planning and diversity Management.
Ethics programs promote a strong public image.
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Learning Objectives
What you will learn in the course
By the end of this course -assuming you have attended classes, completed the assessments and
undertaken the recommended amount of independent study - you should be able to:
describe, explain and apply concepts relating to ethical reasoning and
frameworks for ethical analysis in a business
context;
discuss the extent and nature of ethical problems and concerns as they face
business decision makers;
discuss issues pertinent to business from an ethical perspective;
understand the social and environmental demands that impinge on business
decision makers;
undertake a thorough investigation of an area of ethical concern in the realm
of business.
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Course Overview
Content oriented structure of the course
The course is structured in 8 lessons. Each of the lessons contain a
different subject and/or a different perspective of the overall topic
Business Ethics:
Lesson 1 Lesson 1 provides an introduction to Business Ethics. It will give you
an understanding of the main issues of the topic and it will provide a
frameworks that have proven useful to putting ethics into corporate
action (Chapters 1-2 of the textbook).
Lesson 2 Lesson 2 introduces the theoretical fundament of business ethics. It
will be started with a discussion of ethical theories. Secondly the
decision-making process in order to find out about organisational
settings that accommodate ethical virtue will be analysed. Finally tools
and techniques of ethics management within a business corporation
will be demonstrated (Chapters 3-5)
Lesson 3 Lesson 3 examines ethical issues in the employee-employer
relationship. Employees' rights will be assessed carefully and the
issues of employment ethics will be put under the light of globalization
and sustainability (Chapter 7).
Lesson 4 Lesson 4 outlines the ethical issues and problems faced in
business-consumer relations. Based on the specific stake that
consumers have in corporate activities consumer related issues in
context of globalization will be discussed. Furthermore the challenges
posed by sustainable consumption will be examined. Finely
arguments for more responsible marketing practices and notions of
corporate citizenship in relation to consumers will be presented
(Chapter 8).
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Lesson 5 Lesson 5 discuss the nature of shareholder relations to the
corporation and analyses the rights and the duties of shareholders.
Several of the specific ethical problems and dilemmas arising in the
relation between companies and their shareholders will be analysed
and it will be presented how shareholders can influence corporations
towards ethical behaviour and sustainability. Considering the global
reality of business activities its also necessary to discuss the
differences in shareholder roles and corporate governance in various
parts of the world (Chapter 6).
Lesson 6 Based on the fact that suppliers and competitors exist in mutual
interdependence with a given organisation the ethical issues and
problems that arise in an organisation’s dealings with its suppliers
and competitors are examined in Lesson 6. It will be discussed
whether corporations should assume some degree of responsibility
for the ethics of their suppliers. Furthermore the arguments
suggesting that attention to business interrelationships and the
network economy may contribute to more sustainable business
models will be assessed (Chapter 9).
Lesson 7 Lesson 7 deals with the role played by various types of civil society
organisations in society as important stakeholders of corporations.
The appropriate relationships between business and civil society and
the role of civil society in providing for enhanced corporate
sustainability will be discussed. As an addition it will be examined
which tactics such groups might employ towards corporations to
achieve their purposes. Furthermore the specific stake that
governments have in corporate activities, the challenges posed by
sustainability to business-government relations and the importance of
strong governmental regulation for achieving potentially sustainable
solutions will be outlined (Chapters 10-11).
Lesson 8 Lesson 8 summarises the entire content with a future oriented
perspective. It reiterates the role, meaning, and importance of
business ethics, summarises the influence of globalisation on
business ethics, assess the value of the notion of sustainability,
recapitulate the role and significance of stakeholders as a whole for
ethical management and reviews the implications of corporate
citizenship thinking for business ethics (Chapter 12).
I hope you will enjoy the course!
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2. Course Planning
Formal information
I am working on the assumption, that you are not very familiar with E-Learning
lectures at the Carolus Magnus University Brussel. Therefore I integrated a
detailed description of the main elements and tasks within this course.
Of course its always possible to ask me directly or to send me a mail. So please
don't hesitate to contact me, when ever you need some further clarification or when
ever a problem will raise.
Before you begin to study a course, take some time to read the entire Study
Guide. Make note of the course assignments and their timing, and pay particular
attention to the section "Final Grade". Once the course starts, begin to work
through the lessons in the textbook and the Study Guide, following the instructions
therein for completion of assignments and interactive activities. As a general rule,
you should study one lesson every week, complete the interactive activities as
directed, and submit assignments as required.
The key to your success in this course will be the development of learning
conversations with your fellow students. This means engaging with them in a
dialogue that will illuminate key ideas, assumptions, understandings, and skills. Be
aware, it is my firm conviction that working with your fellow students is as important
as working with the learning resources provided. Therefore a big portion of your
final grades will be derived from your participation in the interactive activities of the
course. To get pass in the course, you must pass its participation components.
Let me offer a rough overview about the main structural elements of the course.
For details and for a more meaningful description of the elements take a look at
the according subsections in this Study Guide:
Weekly Discussions:
The main element of this course are discussions and/or learning conversations. That mean you
will not be "teached" in any way, but you have to work out the content presented in the textbook for
your own and you have to expand your knowledge through a dialogue with your fellow students. In
the first place students will learn from the course material and from each other and not from the
Professor. The Professor's role is to enable and to moderate your discussions, teaching the
basics as in a traditional classroom is not part of his job.
Case Work:
In two of the eight weeks I will post a business case instead of a "normal" discussion question.
The case work tasks will be offered in two different ways: The first case is just an individual task,
that means every student will develop an individual case which will be graded. The second case
is a group work activity, that means all the members of a group will participate in the development
of one single group solution. The grades for each student will cover both, the quality of the case
solution (similar grades for all group members) and the individual contribution to this solution
(different grades for each student).
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Study and Work Plan
The weekly structure in detail
In addition to the lesson-based structure the course is also characterized by a strict
weekly-based structure. Each lesson has a duration of one week or the other way round
each week covers one of the lessons. In the following table you will find a detailed
description of the week-lesson correlation. Furthermore the table contains the
corresponding readings and the main tasks for each of the sections.
eek
Topic
Content
Lesson 1 provides an
introduction to Management
and Ethics. It will give you an
Week Lesson 1: understanding of the main
1
Introduction issues of the topic and it will
provide a frameworks that
have proven useful to putting
ethics into corporate action.
Chapters in
the textbook
Weeks's
activities
Chapters 1 and
2
Weekly
(Introducing Discussion
Business
(Lesson 1
Ethics; Framing
topic)
Business
Ethics)
Lesson 2 introduces the
theoretical fundament of
Chapters 3-5
business ethics. It will be
started with a discussion of
(Evaluating
ethical theories. Secondly the
Business
decision-making process in
Weekly
Ethics; Making
Lesson 2:
Week
order to find out about
Discussion
Decisions in
Theoretical
2
organisational settings that
(Lesson 2
Business
framework
accommodate ethical virtue
topic)
Ethics;
will be analysed. Finally tools
Managing
and techniques of ethics
Business
management within a
Ethics)
business corporation will be
demonstrated.
Lesson 3 examines ethical
issues in the
employee-employer
Week Lesson 3:
relationship. Employees'
3
Employees
rights will be assessed
carefully and the issues of
employment ethics will be put
under the light of globalization
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Chapter 7
(Employees
and Business
Ethics)
Case
Exercise 1
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and sustainability.
Lesson 4 outlines the ethical
issues and problems faced in
business-consumer relations.
Based on the specific stake
that consumers have in
corporate activities consumer
related issues in context of
globalization will be
Week Lesson 4: discussed. Furthermore the
4
Customers challenges posed by
sustainable consumption will
be examined. Finely
arguments for more
responsible marketing
practices and notions of
corporate citizenship in
relation to consumers will be
presented.
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Week Lesson 5:
5
Shareholder
Lesson 5 discuss the nature of
shareholder relations to the
corporation and analyses the rights
and the duties of shareholders.
Several of the specific ethical
problems and dilemmas arising in
the relation between companies and
their shareholders will be analysed
and it will be presented how
shareholders can influence
corporations towards ethical
behaviour and sustainability.
Considering the global reality of
business activities its also necessary
to discuss the differences in
shareholder roles and corporate
governance in various parts of the
world.
Lesson 6:
Suppliers
eek 6
and
competitors
Based on the fact that suppliers and
competitors exist in mutual
interdependence with a given
organisation the ethical issues and
problems that arise in an
organisation’s dealings with its
suppliers and competitors are
examined in Lesson 6. It will be
discussed whether corporations
should assume some degree of
responsibility for the ethics of their
suppliers. Furthermore the arguments
suggesting that attention to business
interrelationships and the network
economy may contribute to more
sustainable business models will be
assessed.
Chapter 8
Weekly
(Consumers Discussion
and Business (Lesson 4
topic)
Ethics)
Chapters 6
Weekly
Discussion
(Shareholders
and Business (Lesson 5
topic)
Ethics)
Chapter 9
Weekly
(Suppliers,
Discussion
Competitors (Lesson 6
and Business
topic)
Ethics)
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Lesson 7:
Week Civil society,
7
NGO's and
government
Lesson 7 deals with the role played by
various types of civil society
organisations in society as important
stakeholders of corporations. The
appropriate relationships between
business and civil society and the role
of civil society in providing for
enhanced corporate sustainability will
be discussed. As an addition it will be
examined which tactics such groups
might employ towards corporations to
achieve their purposes. Furthermore
the specific stake that governments
have in corporate activities, the
challenges posed by sustainability to
business-government relations and
the importance of strong
governmental regulation for achieving
potentially sustainable solutions will
be outlined.
Lesson 8:
Week
Future
8
perspectives
Lesson 8 summarises the entire
content with a future oriented
perspective. It reiterates the role,
meaning, and importance of business
ethics, summarises the influence of
globalisation on business ethics,
assess the value of the notion of
sustainability, recapitulate the role
and significance of stakeholders as a
whole for ethical management and
reviews the implications of corporate
citizenship thinking for business
ethics.
Week 9
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---
---
Chapters 10
and 11
(Civil Society
Weekly
and Business Discussion
Ethics;
(Lesson 7
Government,
topic)
Regulation, and
Business
Ethics)
Chapter 12
Case
(Conclusions Exercise 2
or a similar
and Future
Perspectives) group task
---
Continuation
Case Exercise
2
or a similar
group task
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Grading Schema
Grading Schema
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Final Grades
How you will be graded
In this Management and Ethics course you will be graded in several
different ways.
Each task within the course (Weekly Discussions, Cases, Major Individual
Assignment) will be graded separately on a mark based grading schema. Your
final grade will be determined as outlined below. Please ensure that you plan your
time accordingly. For more information on what is required for each component of
your grade, click on the according section at the right.
Assignment
Marks (Grade Distribution)
Weekly Discussions
60 (60%)
Case work
40 (40%)
Total
100 (100%)
To be successful and/or to get a "pass" in this course you have to reach a
performance level of at least 60%. To keep you updated as much as possible
about your performance level during the course you will get a performance
feedback after each week.
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Case Work
Guidelines for the case work
General statements with respect to case work activities
Case work is included in this course for several reasons:
To give students the experience of working in a group to discuss a typical work problem.
To provide experience in using a rigorous approach to the analysis of an issue.
To encourage the application of a variety of course concepts to operational situations.
Learning Objectives
After completing the required cases, you will be able to do the following:
Understand and appreciate the course concepts from the experience of application and
discussion.
Write complete and persuasive analyses independently.
Effectively plan and execute your Major Individual Assignment.
Critically evaluate proposals posted by your group members.
Work effectively as a member of an ad hoc group.
Recognize opportunities to apply course concepts to your professional life.
You will complete two cases during Week 3 (case 1) and Weeks 7 and 8 (case 2).
The cases will put you in the position of a manager who must make decisions
within complex and uncertain environments. Although the main idea of both cases
is similar the case work progress will be different.
Case 1 will be solely an individual task. Each student will develop an individual case solution.
Therefore the grades for case 1 are assessed on an individual basis; there are no group grades.
Case 2 will be a group task. The entire group has to develop one single case solution or a similar
group task. The grades will be based on a group grade (weight: 50%) which considers the quality
of the solution and an individual grade (weight: 50%) which will consider the contribution of each
group member to this solution.
The specific parameters of the assigned cases will be posted in Weekly
Discussion & Case Exercise forum during the case exercise weeks. The
statements below provide important information concerning the case work process
and the timing of the case exercises.
Philosophy of the case exercise
The case exercise (individual submissions) resembles a typical exam format
insofar as you will read the case and write your answer in a short period of time.
The feedback you will get here applies directly to your work and you will have an
opportunity to address your weaknesses and build on your strengths in further case
exercises.
The intention of this approach is to give you good practice with case methods, and
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to help you independently think about objectives, assumptions (making good
assumptions is a skill in itself), analyses, and recommendations. Your submission
should be uploaded with the special link "Case 1 solutions" at the main page of the
course. This process helps to ensure that your response is not influenced by a
response from another student.
In the second case you (as a group) will be required to work together to develop a
case solution. The idea of this collaborative task is to offer you the chance to get to
know the special requirements of team work in a virtual environment and to
practice this special kind of team work. Since team work cases are much more
tricky than individual cases I strongly suggest to keep the timeline in mind. For
example I suggest to put together a draft presentation for the case 3-4 days prior
to the Case Presentation date (end of week 8). It takes a lot of time to pull things
together as a final version.
My role as the coach
I will provide feedback and guidance as necessary during case work. This might
include calling on individuals to complete their initial case responses on time,
calling on a particular group to discuss specific issues, questioning the input for
consistency and completeness, or suggesting further areas to be discussed.
However, I will not provide solutions.There is no “right answer” to a case, although
there may be a large number of unsatisfactory answers consisting of off-the-wall,
inconsistent suggestions. At the end of the case weeks I will provide general as
well as individual feedback on the case and the group's participation during the
case work.
Presentation Guidelines for the Case Exercise
The following guidelines apply to the case studies and are meant to address such
common problems as poor writing, poor analysis, and misunderstanding of
expectations.
General Guidelines
Each case presentation must be no more than 1,000 words in length and contain
no more than three appendices. Ensure that you follow proper referencing as well;
weaknesses with respect to references issues could be interpreted as
"Plagarism" and therefore could easily lead to a fail of the entire course.
You should provide a managerial writing piece that shows you have made an
informed decision: one made after taking into account all the relevant known and
assumed elements in the environments facing the organization. This means that
the reader has to understand what it is you want to do and why you want to do it.
Your writing must, therefore, be clear and concise. As a final check on your comfort
level, ask yourself, “If I were in the position of the decision maker, would I feel
comfortable proceeding as this paper recommends?”
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Size and Submission
Each case study is limited to 1,000 words exclusive of the Executive Summary and
Appendices. Appendices with paragraphs in them will be included in the word
count. You may have a maximum of three appendices. These may be used for
detailed calculations or other material that would otherwise interrupt the flow of
your analysis. Remember that the body of the report itself should stand alone; the
appendices provide supporting information only. Reports over 1,000 words will be
penalized (I will just grade the first 1,000 words). Use the Word Count facility under
the Tools menu in MS Word to calculate the word count.
Elements of the Paper
These elements need to be covered in your case presentation:
Title Page
Table of Contents
This contains the name of the case, the course title, the coach’s name, your
name, the date of submission, and the word count.
A detailed Table of Content is absolutely necessary!
Having read the executive summary, the reader will know:
Executive Summary
Why the report is needed – the situation.
What the objectives and perspective(s) are (issues or criteria may be
included).
How the problem was investigated – the methodology.
What is recommended to resolve the situation – the plan of action.
Nothing that follows in the body of the presentation should be a
surprise to the reader. The executive summary can be
considered analogous to the abstract of an academic paper.
Assumptions provide context for the analysis, whereas scope
provides focus. Any factors outside your analysis that could
impact its applicability and resulting recommendations should
be listed here. Confine yourself to those that are significant or
potentially significant.
Assumptions and
Scope
If something in the case is unclear or contradictory, state an
interpretation here as an assumption. Remember that you may
be challenged on your assumptions.
Scope is likely to be well defined by the case and the
questions set. If not, state here what is outside of your analysis.
Somewhere between zero and six assumptions and scope
statements should suffice. Bulleted lists are fine. Justification in
the presentation is not required, but assumptions and scope
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statements should be necessary, realistic, consistent with the
information in the case, and their significance made clear.
Major Issues
Issues are what you’re going to address in your analysis and
recommendations. What are they and why are they important? Issues may be
problems or opportunities. If issues are not provided in the case questions,
select two to five, the resolution of which will have the most impact on the
organization. Do not assume that all, or even the most important, issues have
been identified in the case questions. Write a paragraph or two of explanation, if
required, but state each issue succinctly first.
Objectives are the results your recommendations are designed
to positively influence. They are the key result areas of the
organization or operation under study. Thus, objectives often
transcend issues and survive the implementation of
recommendations as ongoing organizational concerns.
The quality of the recommendations is determined by their
impact on these key results areas.Any recommendation, not
just those in your paper, will be evaluated against these
desired outcomes. The preferred recommendation (or set of
recommendations) is the one that best satisfies these
objectives.
The form of outcomes must be SMART:
Objectives
Specific – an observable behaviour or outcome which is linked to a rate,
percentage, or frequency.
Measurable – usually a numeric indicator of progress toward the
objective.
Achievable – will reasonable effort, properly directed, produce the
desired result?
Relevant – do those charged with the objective have the necessary
knowledge, authority, and skill?
Time bound – start, finish, or milestone date(s).
A balanced set of objectives
are mutually exclusive;
collectively represent operational success;
reflect the interests of all major stakeholders;
are weighted according to their relative importance.
Examples of operational objectives might be ROI, quality,
inventory turns, or throughput. Managerial objectives might be
cost, staff turnover, occupancy, or certification. From a
consumer perspective, objectives might be price, availability,
or lead time. There should be no hint of assumptions or
recommendations in objectives. Issues are explored in the
analysis; recommendations are assessed against the
objectives. A bulleted list of no more than six items is fine.
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This is where you apply rigorous analysis to the issues you
have raised. Base your arguments on data in the case. Here
you demonstrate your critical thinking ability, creativity, and
insight, as well as appropriate use of the tools provided in the
text or in previous courses. Often you will evaluate alternative
courses of action, contrast and compare perspectives, identify
chains of causality, and show costs and benefits.
Analysis
Every issue you identify should be carefully explored in light of
the qualitative and quantitative data you have marshalled.
Label opinion as such. Tables, charts, or graphs may be used
to display your data. Avoid depicting the same data in both a
table and a graph. There is no need to reproduce case data,
simply incorporate it by reference.
The analysis is likely to be the major portion of your paper, so
logical ordering and clarity are important. Make the rigour of
your thinking evident, while avoiding overwhelming your reader
with pages of unrelieved, dense text.
Analysis is not an exercise in coming to a consensus of
opinions. It is looking into an issue deeply enough that your
reader is assured you have gotten to the heart of the matter.
Each of your recommendations must be thoroughly supported
by this analysis.
This is the statement of your results. Outline the specific steps
to be taken, when and how they are to be completed, and by
whom. Do these steps collectively address the issues? Do they
positively influence the objectives? Are they justified by the
facts of the case in the analysis?
Recommendations
and Plan of Action
State each recommendation as the first sentence of a
paragraph, "I recommend ...." Be decisive, declarative, and
definitive. Avoid weasel words such as 'could,' 'might,' or
'perhaps.' The rest of the paragraph is supportive explanation:
key data, impact on objectives, alternatives considered.
Previous exposition need not be repeated, but may be
incorporated by reference. Avoid multiple recommendations in
a single statement.
If there are contingencies or uncertainties beyond the scope of
your analysis, address them in “If ..., then ...” statements. Avoid
recommendations suggesting further study; you will get no
credit for them. Use diagrams, flow charts, and so on as
required.
Often, fewer recommendations have more impact than many.
Your reader should be left convinced that your
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recommendations, as a group, represent the best course of
action.
The conclusion does three things. First, it highlights the major conclusions of
the paper and their significance. It pulls the paper’s arguments together and
defines their impacts; that is, it states what the paper has demonstrated. The
overall impact of the recommendations on the objectives should be stated and
balanced against the cost of implementation.
Conclusion
Second, it points out the limitations of the paper. Additional
issues may have surfaced or areas for further investigation
have become apparent. A review of the assumptions and
scope chosen may prompt some specific cautions. The
methodology of the analysis or the extent of the
recommendations in a paper of this length may have
introduced some limitations. What additional data would
strengthen the analysis? Are there directions for further
research?
Third, it should provide closure, leaving the reader satisfied
that the paper explored a situation that led to a meaningful
conclusion. Many times, readers will skim the executive
summary and conclusion to determine whether or not to read
the entire paper. Make sure that the conclusion leads the
reader to confidence in the paper’s scope, methods, and
recommendations.
Aim for one to three paragraphs.
Provide evidence that you combed the Internet, searched the library, and
networked to find original sources. At a minimum, all the data and quotations in
your presentation must be referenced. Breadth, balance, currency, creativity,
and diversity are advantageous. One page is sufficient. Hypertext links are a
nice touch.
References
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Use footnotes for the references and for offering additional
explanations of the matter in the text. Furthermore list the
references at the end of the paper.
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Weekly Discussions
Guidelines for the weekly discussions
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General statements with respect to the discussion part of the course
The purpose of the weekly discussions is to:
help you engage with the material from the textbook and Study Guide;
stimulate application thinking that relates to issues from your own experience;
see a variety of applications and to hear various perspectives on the material;
support the development of one another’s thinking through questions, comments, and
responses.
Discussions are a way to link your life experiences to the course material for the
benefit of everyone in your group. Ideally, a rich discussion will create knowledge.
That is, insights will emerge that no individual (including me) held before the
discussion began. Therefore the objective of each discussion is to share ideas
and resources, challenge convention, try new ideas, and recognize each other’s
contributions.
Generally, I am looking for postings which:
add to the academic value of the conversation by presenting new information, arguments,
insights, concepts, constructs, or references;
add experiential value: connect or contrast ideas, concepts, and skills to actual experiences;
challenge or question prevailing ideas and assumptions with new evidence or alternative
perspectives that are well argued and substantiated;
connect contributions made by other students in a way that is more than summarizing; that is,
make connections so that synergies are created;
substantiate generalizations by using specific observations and/or data, explaining the
connection between what is observed and what is inferred;
acknowledge the influence of personal feelings or biases on the reasoning process.
Postings seldom add value when they:
are not relevant to the questions or discussion or are difficult to interpret or understand;
contain no new observations, information, insights, perspectives, or experiential value;
uncritically accept conventional wisdom;
echo contributions made by other students without adding something to the exchange;
merely regurgitate materials found in the textbook or Study Guide;
arbitrarily reject other points of view, or worse, demean them;
seek a particular piece of information out of curiosity;
are primarily speculative or judgmental.
Guidelines for the Weekly Discussion
Posting the Weekly Discussion Question:
I will post the Weekly Discussion question by Saturday afternoon. If I'll be travelling
that day or otherwise engaged, I may post it earlier. In any event, you'll have the
question in time so that on a given weekend you can wrap up one week and get
started on the upcoming week's question if that's the way you want to organize your
work.
Time Frame for Posting Responses:
This is a discussion, not an assignment forum. We can only develop insightful
discussion threads if we have time for interaction. Therefore it is important that you
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post your initial response to the Weekly Discussion question no later than mid-day
Wednesday. This provides a chance to enter into a dialogue with one another for
the balance of the week. The discussion does not work if people sit back and wait
to dump their thoughts in batch mode at the end of the week.
Weekly Learning Posting:
Towards the end of the week, I would like to see a summary of the discussions
during the week from each one of you. I am convinced, that this will result in "value
addition" for all of us. Therefore, towards the end of the week, when discussions
are wrapping up, I would like each group member to post their learning of the
week. I will create a discussion thread in the forums each week under which
learning postings will be made. Please post your individual summary (weekly
learning posting) until Sunday midnight each week.
Discussion Cutoff:
There's another question in the wings, and this course moves fast. Also my
marking will be based on postings within the assigned week – i.e. as per the
schedule of placing initial responses by Wednesday, having the ensuing dialogue
carry on through Sunday, and posting a Weekly Learning by Sunday evening.
My Participation:
I definitely will participate in the Weekly Discussions. While I read all the postings,
in a given week I will not necessarily directly respond to everyone in the discussion.
Over the 8 weeks of the course I do make a concerted effort to respond to each of
you as often as possible.
Problems:
If you have problems responding to the Weekly Discussion question (travel,
technical problems, personal problems), please let me know as soon as possible. I
do not need to know the details of your situation, professional or personal, but I and
your team-mates do ask that you let us know if you will have trouble participating in
a given week and/or if your participation has to lapse for a few days. Keep us all
informed!
Marking your contribution to the Weekly Discussions
As mentioned above the objective of the weekly discussion is to widen your
appreciation of the possible applications of the course material as well as to
ground the theory in your own experience. Your participation in the weekly
discussion represents 60 out of 100 marks or 60% of your final grades. Here’s
how I calculate the marks.
Each week I monitor and record your participation on a spreadsheet. In each
discussion week (week 1,2, 4, 5, 6 and 7) you get:
4 points (maximum) for answering the weekly question fully – data, comparisons, applications,
references, or challenges. You’ll get one point for less complete answers.
4 points (maximum) for insightful questions and/or responses in the discussion – probing,
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supportive, adding information or perspective; not just interest or approval.
2 point for an insightful weekly learning posting.
In total:
10 discussion points maximum per week. (10 x 6 weeks = 60)
20 case points per case (20 x 2 cases = 40)
100 points maximum total. Everyone can get this 100 points!
Initial postings need to be received by mid-day Wednesday for full credit. Grading
of a week’s discussion ends on Sunday evening. Please contact me with any
questions. We’ll know we’re on the right track when the discussions are both
exciting and challenging.
My expectations
Initial Posting / Response to Question
Using the concepts and issues discussed in the reading to frame your analysis
Depth of thought; answered the weekly question fully; providing data, comparisons, examples,
and references.
Relevant and accurate interpretation of the issues as they relate to your experiences / industry
practice
Quality of Interaction; responses & questions posed to others that further
the dialogue
Make a conscious attempt to have your comments / questions of others "dig deeper" re: the
week’s topic & the intended focus of the question.
Again … use concepts and issues discussed in readings to frame your questions and
responses
Probing, supporting, adding information or perspective - not solely expressing interest or
agreement with someone else’s posting.
Maintains focus, i.e. keeps the discussion on topic as opposed to "drifting off"
Proactive in pushing the dialogue along & responding to follow-up questions asked of you.
Synthesis; wrap-up / weekly learning
Depth of thought; a "well considered” reflection of the week’s readings & discussion
Does in fact synthesize the lesson and the personal "take-aways" from the readings & dialogue
(not simply summarizing)
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Your participation in the group is crucial to the success of the
other group members. Lack of participation is unfair to those
who are actively participating. Participation in your group is
crucial to your own success as well, because without a
passing grade in the participation component of each course,
you will not receive a pass or credit for that course in its
entirety.
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3. Lessons
Summary of the course content
With the following sections (Lesson 1- 8) I want to offer you a short summary of the
main facts presented in the textbook. The idea of this summary is to offer a bit
more flexibility. If you are traveling or if you will not work at a fix place (home office,
university and so on) you could always take a quick look at the main issues,
concepts, tools and so on, mentioned in the textbook.
You should keep in mind, that this Study Guide is just a short summary of and not a
substitute for the textbook. Its absolutely not sufficient to reduce the required reading just to
the Study Guide. You definitely have to read the textbook itself.
Since the content of this summary is solely based on the textbook I decided to
abstain from individual references but to make a general reference. The entire
content and all the figures are taken from Crane, A., Matten, D.: Business
Ethics, 2th ed., Oxford, 2006.
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Lesson 1
Introduction to Business Ethics
1.
Overview and objectives
2.
What is Business Ethics
3.
Why are Business Ethics importan?
4.
Globalization and Sustainability
5.
Framing Business Ethics
6.
Weekly Discussion
Overview and objectives
Overview
In this Lesson we take a first broad look at what business ethics are and what they
are concerned with. Some intuitive questions arising from the topic's nature shall
be discussed more directly. Hence, we will set the base for understanding
business ethics. We will point at two major phenomena that have been challenging
the business world demanding ethical response, namely globalization and
sustainability, and provide typical frameworks that have proven useful to putting
ethics into corporate action.
Objectives
At the conclusion of this chapter you will be able to
Define business ethics and argue for its relevance.
Outline globalization as a major context for business ethics.
Present the 'triple bottom line' of sustainability as a potential goal for
business ethics.
Analyze the responsibilities corporations have towards society and their
nature.
Provide differentiated views on the scope and variety of a firm's
stakeholders.
Examine the meaning of Corporate Citizenship.
Required Readings
Please read chapters 1 and 2 of your textbook (Crane and Matten) and explore the
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online resources related to those chapters.
What is Business Ethics
Business Ethics Defined
Is there an ethical sphere in business? Business sometimes is called a game
equal to poker, where deception and lying are perfectly permissible. But, one has
to admit that these 'bad' ethics still are ethics of a kind and that business activities
would hardly be possible if every businessman always lied, if buyers and sellers
never trusted each other. It thus makes sense to try and understand why certain
decisions should be evaluated as ethical or unethical, or right or wrong and why
such decisions get made and to try and discover whether more acceptable
business decisions and approaches can be developed. That's how business
ethics appear as a phenomenon and as a subject of studies. There will, however,
inevitably be disagreements about what exactly constitutes 'ethical' business. Here
is a definition of the subject itself:
Business Ethics is the study of business
situations, activities, and decisions where issues
of morally
right and wrong are involved and addressed.
Why are Business Ethics important
Figure 1.1 depicts why ethics have become an important part of business and lists
some of its benefits.
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Figure 1-1: Why Business Ethics are important
Globalisation and sustainability
Business ethics have been constantly changing their focus since its expressive
occurrence. In recent times and thus most relevant for today's businesses,
globalisation and sustainability can be seen as the two major challenges that
businesses face in ethical perspective.
Figure 1-2: Globalisation and sustainability as key contexts of Business Ethics
Framing Business Ethics
Numerous approaches have been undertaken aiming at bringing business ethics
into corporate practice. The most fundamental question in doing so is whether a
corporation can be moral - and thus responsible for its actions. Corporations itself
are, broadly spoken, artificial persons in terms of the law that are owned by
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shareholders but exist independently of them. The corporation's decisions are
made by managers that must protect the investments of the shareholders. But as
any corporation, just as an individual, has an internal decision making structure
and a set of beliefs and values (organizational culture), the corporation itself can
thus been seen to be as moral as their managers and employees. Figure 1.3
discusses some of the most common ways of the integration of corporate
responsibilities.
Figure 1-3: Framing Business Ethics: Corporate Social Responsibility,
Stakeholder Theory, Corporate Citizienship
I
Weekly Discussion
Weekly Discussion & Case Exercise
Weekly question(s) of week 1
Follow take a look at the review of the book “The Corporation” by Joel Bakan. After your review
please answer the following question (until Wednesday) and discuss the answer of the other goup
members (between Thurday and Sunday).
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Set out your position on Bakan’s description of the corporation’s nature as psychopathic. Do you
agree or disagree to the statement (of course you should explain/justify your position!)
Please consider the following notes:
Please use the forum below for your initial posting and for your discussion contributions.
You are not expected to start Week 1 discussions before Monday. Weeks run Monday to
Sunday and only your responses which fall between this period are graded.
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 1 question(s) or participate in the Case Exercise.
I
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Lesson 2
Theoretical Framework
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1.
Overview and objectives
2.
Normative ethical theories
3.
Decision-making in Business Ethics
4.
Tools of Business Ethics management
5.
Weekly Discussion
Overview and objectives
Overview
In this lesson we will assess the more theoretical fundament of business ethics.
We start over with an approach to traditional and contemporary ethical theories,
showing us the broad range of thoughts on how we can find out about what is right
and wrong. Secondly we look at what influences the decision-making process in
order to find out about organisational settings that accommodate ethical virtue.
Last, we take a quick glance on tools and techniques of ethics management within
a business corporation.
Objectives
At the conclusion of this chapter you will be able to
Locate the role of normative ethical theory within the ethical decision-making.
Provide an overview and explore the potential of traditional and contemporary
ethical theory.
Examine why ethical and unethical decisions are being made in the
workplace.
Delineate key individual and situational influences on ethical
decision-making.
Examine different ways of organising for the management of business ethics.
Critically assess the relevance of organisation culture and leadership for
business ethics.
Required Readings
Please read chapters 3, 4 and 5 of your textbook (Crane and Matten) and explore
the online resources related to those chapters.
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Normative ethical theories
Business Ethics Defined
Ethical theories are the rules and principles that determine right and wrong for a
given situation. Wherever values come in conflict (which is what primarily happens
in any conflict), we all have some prior knowledge of what is right or wrong that
helps us to decide. This internal knowledge is rarely reflected upon and often
uncommon with others. In a business setting, however, a systematic, rational and
widely understandable and thus efficient decision-making is indispensable. That's
where ethical theories come into play and help to understand and explain different
normative settings, of what is right and wrong.
Figure 2-1: Perspectives on ethics: Extreme positions and the middle way
Figure 2.1 gives a general overview of how ethical theory can be systematized and
briefly explains each of the main positions found. Figure 2.2 consequentially
shades some light on what is known as traditional ethical theory. It as well takes a
look to some major ethical theories that have shaped our understanding of right
and wrong during past millennia.
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Figure 2-2: A system of traditional ethical theory with example
In contrast to traditional ethic theories, the contemporary ethical theories suggest
less imposing and more intuitive, integrative solutions in order to make ethical
decisions.
Figure 2-3: Overview of contemporary ethical theories
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Decision-making in Business Ethics
Whenever decisions are likely to have significant effects on others and/or leave
different courses of action open to decide for or against, it is likely to be a question
of moral status. Recognizing the morality of an issue is the first step in taking a
moral decision. Thus, awareness is a crucial factor for ethical behaviour. After
making a moral judgement, a moral intent can be established that might be
followed by a moral decision. However, in this process of ethical decision-making
individuals are influenced by a number of factors, individual and situational ones.
Figure 2.4 lists the most significant individual influence factors.
Figure 2-4: Individual factors of influence on ethical decision-making
Beside individual characteristics, most people are easily influenced by the
situation that they are exposed to. Both, the issue in question and the context of the
decision play important roles. Both are shortly listed and explained below (Figure
2.5). Examples can be found in the textbook pages 149-162.
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Figure 2-5: Situational factors of influence on ethical decision-making
Tools of Business Ethics management
Business ethics management is the direct attempt to formally or informally manage
ethical issues or problems through specific policies, practices or programmes. It
typically contains mission/values statements, codes of ethics, communication
channels for reporting and advice for transparency, risk analysis and management,
ethics officers and committees, the involvement of external ethics consultants,
ethics training for staff and some kind of reporting. Two main topics from a
broader range outlined in chapter 5 of the textbook are depicted in Figure 2.6.
Weekly Discussion
Weekly Discussion & Case Exercise
Weekly question(s) of week 2
Theoretical Framework:
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Christina is the CVO in an IT consulting company. There have been hard times for the company
because they had financial problems and lost many customers to their main competitor so that
they already had to decruite several employees.
After another exhausting working day, Christina and her husband invited his sister to dinner.
Usually they’re not speaking about business because the sister’s working for the competitor but at
this day she told that she’s very dissatisfied with her job.
Earlier she has always been at the clients and was able to invoice much money to become
bonuses. But since the management of the company changed, her bosses are always giving her
internal things to do, so that she’s too occupied with minor tasks and can’t receive premiums
through customer-related projects. She claimed that this is just a pretense from her bosses to
begrudge her the bonuses due to the fact that she’s a woman.
Because of her annoyance, the sister offers her a paper with confidential details about the
business strategies including the financial investments of the company and the previously
undisclosed annual report. As a counterperformance, she wants to apply in the company of
Christina and expects to get a good job there with her support.
Due to the fact that the company is at a risk to become insolvent, this could provide a good
chance to play off the main competitor.
Part1:
Please outline the ethical wrongdoings for Christina and her sister-in-law.
Should Christina accept this proposal and use the business documents from the
competition for her own purpose? Which options of acting does she have? Evaluate them by
reference to the ethical theories from the coursebook.
Part2:
To which degree do you think are ethical and legal behavior compatible in general?
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 2 question(s) or participate in the Case Exercise.
The discussion for Week 2 or the Case Exercise will focus on topics
covered in Lesson 2.
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Lesson 3
Employees perspective
1.
Overview and objectives
2.
Employees as stakeholders
3.
Ethical issues in Human Resource Management (HRM)
4.
Ways of tackling discrimination: Affirmative Action (AA)
5.
Employing people in the context of globalisation and sustainability
6.
Weekly Discussion
Overview and objectives
Overview
In this week's lesson we examine ethical issues in the employee-employer
relationship. Even if one can argue for the employer to deserve control and set the
rules how people, that he pays, shall behave, workers have rights - as well as
duties - that have to be discussed and respected and nevertheless are often
compromised. We will assess these employees' rights carefully and put the issues
of employment ethics under the light of globalization and sustainability.
Objectives
At the conclusion of this chapter you will be able to
discuss the role of employees among the various stakeholder groups.
identify core ethical issues of employees' rights and duties.
explore the employers' involvement in enabling employees to live up to their
duties.
explain basic issues of managing employees in a globalised world as well as
in terms of sustainability.
Required Readings
Please read chapters 7 of your textbook (Crane and Matten) and explore the
online resources related to this chapter.
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Employees as stakeholders
Dealing with employees is probably one of the areas where most of us are the most
likely to encounter ethical issues and dilemmas. Be it a question of fair wages and
conditions, discrimination in the workplace or simply taking advantage of company
resources for private purposes like using the phone or internet. Employee-related
ethical issues are very likely to be present wherever managers work. Many of them
can be legally fixed through regulations and contracts. Others lay more in the
surrounding of a work relationship. They mean investments, costs and
dependencies for both sides, that aren't mentioned in any contract but can lead to
reflexive compensation behaviours. Figure 3.1 gives an overview of such 'hidden'
costs that lead to what is called 'moral hazards'.
Figure 3-1: Hidden costs and moral hazards of work relationships
Ethical issues in Human Resource Management (HRM)
The first potentially ethical issue within HRM that catches one's eye is the term
itself. To make employees out to be just one of the resources within the black-box
of value adding systems is close to treating them as a means only, which, in
Kantian terms, can be regarded unethical. From such a view point people primarily
are an expensive resource that competes with other resources, most notably new
technology and cheaper (labour) resources overseas. Staff of course is employed
for a special purpose, for a means. But it must, however, not be treated as 'a
means only'. So, since employers and employees both are human beings, they
deserve mutual respect and are entitled to certain rights and duties. Both shall be
briefly outlined in Figure 3.2.
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Figure 3-2: Rights of the employee
Typically, duties belong to every right. That's why the duties of the employee have
to be discussed, too. The main duties of the employee are
To comply with the labour contract.
To respect the property of the employer.
To provide an acceptable level of performance.
To make appropriate use of the company time and resources.
To refrain from illegal activities such as fraud, theft and embezzlement.
However, research has shown that employee behaviour heavily depends on the
organizational climate. It thus remains the responsibility of the employer to ensure
that employees can live up to their duties.
Ways of tackling discrimination: Affirmative Action (AA)
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'Affirmative action' means special efforts to tackle shortcomings or defects like
underrepresentation of a minority group in employment or universities. Figure 3.3
shows several AA-strategies.
Figure 3-3: Ways of fighting discrimination in the working place
Employing people in the context of globalisation and sustainability
Globalisation entails the mobility of people, the mixture of cultures, values and
understandings. This leads to a number of ethical challenges. In the context of
sustainability, too, we shall shade some light on how this in interconnected with the
topic of employment (Figure 3.4).
Figure 3-4: Employment in the contexts of globalization and sustainability
Weekly Discussion
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Weekly Discussion & Case Exercise
Weekly question of week 3 (Case 1)
Within the last years, a great transformation of working environments came up. The competition of
young high potential working forces from abroad (like China or India) and increasingly tight time
schedules are just examples for the occurring change. The fear of being decruited or replaced is
leading many employees to work more actively. Over 60 working hours per week and 24/7
availability for customers is "the order of the day" for many employees.
Please write a Case Study about the topic from the perspective of a responsible Human
Relation manager within a company. You should manage to deal with the resource “employee” to
prevent that your employees are used, unmotivated and burned-out after a few years.
Use the Case Presentation Guidelines provided in the Study Guide (section Case Work) as a
guide for the design and the structure of your report. Once you have developed your written report
make sure you follow the specific instructions in terms of when and how to upload your individual
case solution.
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 3 question(s) or participate in the Case Exercise.
The discussion for Week 3 or the Case Exercise will focus on topics
covered in Lesson 3.
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Lesson 4
Consumers perspective
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1.
Overview and objectives
2.
Consumers as stakeholders
3.
Ethical issues within the marketing mix
4.
The consumer in the context of globalisation and sustainability
5.
Weekly Discussion
Overview and objectives
Overview
In this week's lesson we will assess the specific stake that consumers have in
corporate activity. We outline ethical problems that can arise from advertising and
other marketing practices and strive towards solutions and approaches of ethical
and sustainable ways of dealing with consumers in the local and global
marketplace.
Objectives
At the conclusion of this chapter you will be able to
specifically delineate key ethical threats towards consumers.
explore the notion of consumer rights.
explain consumer sovereignty as a goal for ethical marketing.
provide an overview of and explore ethical issues within marketing
management, marketing strategy and market research.
critically assess the risks and opportunities of consumer relations in the
contexts of globalisation and sustainability.
Required Readings
Please read chapters 8 of your textbook (Crane and Matten) and explore the
online resources related to this chapter.
Consumers as stakeholders
The question of dealing ethically with consumers crosses a wide range of
problems. In order to start looking at them, figure 4.1 offers an intuitive view, the
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Figure 4-1: Approach to the consumers' stake in the corporation
Ethical issues within the marketing mix
Most ethical issues concerning business-consumer relations refer to the main tools
of marketing management, commonly known as the 'marketing mix' - product
policies, marketing communications, pricing approaches and distribution
practices. Others appear in marketing strategies, that companies employ in order
to attain their goals, as well as in market research, which has come under closer
scrutiny due to modern information technology. Figure 4.2 provides with a briefly
explained overview of at least potential ethical problems in marketing practice.
Figure 4-2: Ethical issues in marketing management, marketing strategy and
market research
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The consumer in the context of globalisation and sustainability
Business ethics management is the direct attempt to formally or informally manage
ethical issues or problems through specific policies, practices or programmes. It
typically contains mission/values statements, codes of ethics, communication
channels for reporting and advice for transparency, risk analysis and management,
ethics officers and committees, the involvement of external ethics consultants,
ethics training for staff and some kind of reporting. Two main topics from a
broader range outlined in chapter 5 of the textbook are depicted in Figure 2.6.
Figure 4-3: Consumers in the contexts of globalization and sustainability
Weekly Discussion
Weekly Discussion & Case Exercise
Weekly question(s) of week 4
Consumers and Business Ethics
Nowadays the virtual world offers consumers not only the possibility to do bank transfers and
online shopping, but also booking of business travels and e-government services like requesting a
new passport. For operators of websites and advertising agencies this implies an increasingly
relocation of marketing and ad campaigns to the internet.
Currently not only the general problem of manipulation through advertising is something to
question. Especially the form of personalized and behavioral advertising causes the persuasion to
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be a vitreously customer within the internet. This leads to concerns about the record, storage and
use of personal data. Users are having a lack of transparency and feeling discomfort about the fact
that they couldn’t do something against it.
To prevent an introduction of governmental adjustment of personalized ad and to counteract the
suspect of users, the “Future of Privacy Forum” in Washington tries to build more trust for users
by launching a symbol for personalized advertisements on websites. It gives more information
about the coherence between ads and user behavior and provides an insight into the responsible
control and use of personal data (see: Future of privacy).
Critically evaluate this form of communication with consumers in the virtual environment. In
how far could it provide a way to more ethical conduct?
Can you imagine other ways to establish a more trust based relationship that ensures
autonomy and a reasonable handling with customers and their data for the future?
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 4 question(s) or participate in the Case Exercise.
The discussion for Week 4 or the Case Exercise will focus on topics
covered in Lesson 4.
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Lesson 5
Shareholders perspective
1.
Overview and objectives
2.
The shareholder as stakeholder
3.
Ethical issues in coporate governance
4.
Shareholders in the context of globalisation and sustainability
5.
Weekly Discussion
Overview and objectives
Overview
In this week's lesson we set out the ethical stake of the stockholder and those with
a financial interest in the firm. Shareholders are largely excluded from the ethics
literature and subject, perhaps because they already play a substantial enough role
in business, generally. We will, however, explore, in what ways shareholders really
get involved in the firm (corporate governance) and how and why their interests
and rights can get undermined. We will look at ethical issues in share trading and
accounting as we will explore shareholding in the contexts of globalisation and
sustainability.
Objectives
At the conclusion of this chapter you will be able to
define the notion of corporate governance.
discuss shareholder rights and manager duties.
explore ethical issues in corporate governance.
outline the ethical content of mergers and acquisitions, financial markets,
insider trading and accounting practices.
provide an overview of ethical problems of shareholders in a globalised
environment.
specifically delineate approaches to sustainable stockholding.
Required Readings
Please read chapters 6 of your textbook (Crane and Matten) and explore the
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online resources related to this chapter.
The shareholder as stakeholder
In former times companies were typically managed by their owners. Today, this is
rarely still the case. Most large corporations are shareholder owned and
experience a separation of management and ownership. This separation
introduces the need of some kind of management of interest, communication and
control between those who own and those who run the companies. These
structures and policies are called corporate governance.
Corporate governance describes whom the organization is there to serve
and the way in which the purposes and priorities of the organization
should be decided.
The relation of owners and managers is basically defined through a set of rights
for the shareholders and duties of management (Figure 5.1).
Figure 5-1: Shareholder rights and manager duties to define their relationship
Consequentially there is an inherent conflict of interest between shareholders and
managers. Shareholders want profits and share price rises, which include hard
efforts from managers and may suggest low incomes. Managers want high
salaries and might pursue power and prestige to the possible shortcoming of the
shareholder. Corporate governance seeks to set structures that assert
shareholders interests and control managers. Corporate Governance of course
experiences different approaches in different cultural districts (read further on
pages 222-225 in your textbook). However, the shareholder-manager-relation can
broadly be regarded as a prime host for ethical problems in a business
environment.
Ethical issues in corporate governance
Ethical dilemmas may always arise when personal and someone else's interests
collide. The probability therefore is especially high for those, who survey
(supervisory board) and for those who act (executives) within a corporation (Figure
5.2). Figure 5.3 outlines four more business areas where financial interests and
their management are likely to face ethical content.
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Figure 5-2: Ethical problems in the corporate governance body
Figure 5-3: Ethical contents of shareholding and share trading
Shareholders in the context of globalisation and sustainability
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Weekly Discussion
Weekly Discussion & Case Exercise
Weekly questions of week 5
Corporate Governance
Have a look at the scandal of the Indian software and consulting company Satyam (see Business
Week).
Part 1:
After the scandal became public, Ramalinga Raju expressed himself in the following way: “It was
like riding a tiger, not knowing how to get off without being eaten”.
Evaluate the significance of Corporate Governance based on the incidence and the
relationship between Raju and the shareholders of Satyam. What are your personal
expectations of Corporate Goverance and which possibilities do you see to prevent such
cases in the future?
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Part 2:
In June 2009, Satyam published its new presence as “Mahindra Satyam” with a focus on
customers and a high standard of Corporate Governance, Corporate Citizenship and ethical values
(see Satyam).
What do you think about this out warded change of image and stakeholder focus? Which
impact does the factor globalization has within this context?
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 5 question(s) or participate in the Case Exercise.
The discussion for Week 5 or the Case Exercise will focus on topics
covered in Lesson 5.
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Lesson 6
Suppliers and competitors perspective
1.
Overview and objectives
2.
Suppliers and competitors as stakeholders
3.
Ethical issues with suppliers and stakeholders
4.
Suppliers and competitors in the context of globalisation and sustainability
5.
Weekly Discussion
Overview and objectives
Overview
Most commonly, the supplier and competitor business relations of companies do
not enjoy the spotlight of media attention. That might be why they tend to be
overlooked in ethics consideration. However, there is substantial terrain for
unethical behaviours. In this week's lesson we examine suppliers and competitors
as legitimate stakeholders of the firm. We assess ethical issues that arise in
dealing with both of them. Then finally we put suppliers and competitors into the
context of globalisation and sustainability.
Objectives
At the conclusion of this chapter you will be able to
define the stake of suppliers and competitors in the corporation.
provide an overview of ethical issues with suppliers.
point out ethical issues with competitors in the marketplace.
outline how globalisation reframes these problems.
discuss whether corporations should assume some degree of responsibility
for the ethics of their suppliers.
Required Readings
Please read chapters 9 of your textbook (Crane and Matten) and explore the
online resources related to this chapter.
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Suppliers and competitors as stakeholders
Models of organizational stakeholders have tended to vary somewhat on their
definitions of what constitutes them. Many conceptualizations distinguish between
primary (mainly economic) and secondary (non-economic) stakeholders.
Formulations tend to include suppliers and most, if not all, tend to exclude
competitors. Figure 6.1 seeks to explore some of the arguments why competitors
should of course be considered a stakeholder. A base of analysis is provided by our
earlier provided definition of stakeholders.
Figure 6-1: Suppliers and competitors as stakeholders
Ethical issues with suppliers and competitors
Purchasing and sales staff is often confronted with a whole host of ethical
dilemmas on a day-to-day level. Figure 6.2 provides with an examination of typical
ethical problems occurring in supplier relations.
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Figure 6-2: Ethical issues with suppliers
Figure 6.3, now, refers to the ethical problems with competitors. Competitors are
generally seen rather pessimistic, either wanting to undermine its ones' practices
or colliding with us for an advantage. Cases like the one described on page 376 of
our textbook show, however, that competition - if it is 'fair and legal' is quite
wanted. The case is about three Coca-Cola members trying to sell trading secrets
to PepsiCo. Instead of profiting from the offer, PepsiCo gave a tip-off to the FBI.
However, it's more than likely that the following ethical issues in dealing with
competitors play a considerable role in business reality.
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Figure 6-3: Ethical issues with competitors
Suppliers and competitors in the contexts of globalization and
sustainability
Figure 6-4: Suppliers and competitors in the contexts of globalisation and
sustainability
Weekly Discussion
Weekly Discussion & Case Exercise
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Weekly questions of week 6
Ethical sourcing within the IT sector
Could “Green IT” as a transfer of the fair trade concept to the IT sector represent a sustainable
business model, or is it just a means to greenwashing the company?
Please answer the question particularized covering supporting factors of the idea and also
possible conflicts of interests that might be affected.
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 6 question(s) or participate in the Case Exercise.
The discussion for Week 6 or the Case Exercise will focus on topics
covered in Lesson 6.
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Lesson 7
Public, government and NGO's perspective
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1.
Overview and objectives
2.
Defining civil society, government and regulation
3.
The stake of CSOs and governments in the firm
4.
Ethical issues in the raltions between business with CSOs and governments
5.
CSOs and governments in the context of globalisation and sustainability
6.
Weekly Discussion
Overview and objectives
Overview
In this week's lesson we discuss the stakeholders outside of the immediate
economic realm of the corporation: the civil society and the government. These
constituencies, as we shall see, also have important stakes in the firm, and various
ethical problems and issues can arise in the company's dealing with such actors.
We will define the exact meanings of what we mean by the terms of civil society
organisations, government and regulation and examine the specific stakes of each
of these groups and outline the ethical issues arising. Finally we will look at them
from the perspectives of globalisation and sustainability.
Objectives
At the conclusion of this chapter you will be able to
define what is meant by the terms civil society, government and regulation.
set out the specific stake, that civil society organisations like e.g. NGOs and
governments hold in the firm.
explore main ethical issues of CSOs and governments in dealing with
business organisations.
outline the way in which globalisation and sustainability reframe these
stakeholders.
Required Readings
Please read chapters 10 and 11 of your textbook (Crane and Matten) and explore
the online resources related to those chapters.
Defining civil society, government and regulation
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Civil society has made itself meaningful for corporations through specific civil
society organisations (CSOs), comprising pressure groups, NGOs (among the
most famous are Red Cross, Greenpeace, WWF, Amnesty International),
charities, religious groups and other groups that are neither business nor
governmental in origin. CSOs vary in constitutional type, scope, structure, settings
of activities and their issue focus. Governments, in contrast, represent a whole
society, or as the EU-government, even a whole continent. They are empowered
by democratic votes and have the power to make legally binding rules and to
enforce them. But apart from law, there are many more kinds of regulation that
direct business behaviour, such as policies, directives, goals, strategies etc. They
all seek to set norms apart from the law.
The stake of CSOs and governments in the firm
CSOs can certainly affect, or be affected by, the performance of businesses. They
receive donations, organise employee resistance to labour practices, lead
consumer boycotts or force corporations towards taking or refraining from a
certain action. They mainly represent the interests of individual stakeholders from
the society or of non-human stakeholders such as animals or the environment.
Figure 7.1 explains the government as a stakeholder of the firm. It presents them
once as a representative of the citizen's interests that maintains the framework in
which business shall work. But governments also have the interest of staying in
power. That for they need to achieve goals. This goal-achievement depends on
business a lot of the times. Another way governments and business are
interconnected is by having own economic entities running that compete with
private owned firms.
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Figure 7-1: Government as a stakeholder
Ethical issues in the relations between business with CSOs and
governments
Figure 7-2: Ethical issues in business-CSO and business-government relations
CSOs and governments in the contexts of globalization
and sustainability
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Figure 7-3: CSOs and governments in the contexts of globalisation and
sustainability
Weekly Discussion
Weekly Discussion & Case Exercise
Weekly questions of week 7
Part 1: Relationships between governments and companies
Google’s self-censorship in China arose many questions about governmental regulations of
companies. Especially the lately withdrawal of Google’s services in China after the hacker attack
allowed discussions to develop.
After that, some students and programmer decided to launch a pirate edition of Google, called
“Goojje”.
How do you judge the taken decisions? Keep in mind the main ethical concerns and
interests of the respective stakeholders in this case.
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Which impacts could a participation in initiatives like the Global Compact have related to this
context?
Part 2: In preparation for the final group work in the upcoming weeks each group has to
develop a Code of Conduct (follow the link below for additional information about the
term and the content of such a Code of Conduct).
Please post your final Code of conduct in a seperate task of the according discussion forum, so
that its easy to find it again in the coming weeks. Please keep in mind, the Code of Conduct you
will develop this week will or should be the base for your peer evaluation of the group work in week
8 and 9. Therefore I strongly recommend to take this task really, really seriously!!! Of course I will
not grade the content of the Code of Conduct; I will just grade the overall engagement of the group
and your individual contribution to develop such a group code.
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 7 question(s) or participate in the Case Exercise.
The discussion for Week 7 or the Case Exercise will focus on topics
covered in Lesson 7.
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Lesson 8
Future perspective
1.
Overview and objectives
2.
The nature of business ethics
3.
Globalisation as a new context for business ethics
4.
Sustainability as a new goal for business ethic
5.
The contribution of normative ethical theories to business ethics
6.
Influences on ethical decision-making
7.
The role of management tools in business ethic
8.
Weekly Discussion
Overview and objectives
Overview
In this last week's lesson we will seek to reiterate and summarize the topics
studied during this course. We want to round up the course and take an overall
perspective to revise the work done. We will do so mainly by asking challenging
questions on the lesson learned and the understanding that has been built up so
far, comprising the changed, or at least influenced, mindset on business ethics. In
this finalizing chapter of the course we mainly want to discuss our ideas and
reconcile conflicting topics and issues in business ethics.
Objectives
At the conclusion of this chapter you will be able to
find out some details about your personal skills of ethical reflection.
apply issues surrounding business ethics in current and future situations of
your personal working field.
Required Readings
Please read chapters 12 of your textbook (Crane and Matten) and explore the
online resources related to this chapter.
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The nature of business ethics
Business Ethics Defined
During the course we have been discussing a broad range of issues, starting with
what business ethics actually are. The nature of business ethics, however, couldn't
be framed in a stable, lawful sense. Existing problems go away or become matter
of legislation while new problems arise and new possibilities of ethical abuse do
not cede to crop up in the ever globalising business world.
Globalisation as a new context for business ethics
Throughout the course, we have quite extensively discussed ethical issues in the
context of developing countries, and it is fairly reasonable to expect them to remain
on the top of the business ethics agenda for the foreseeable decades.
Secondly, we outlined that globalisation creates a social space beyond the
governing influence of single national states, namely the global financial markets. In
filling this 'transnational gap of regulation', self-regulation and initiatives by CSOs
have been mentioned.
Sustainability as a new goal for business ethics
As we have seen, sustainability has made quite significant progress in terms of
reporting, sustainability share indexes, industrial ecosystems, work-life balance
etc. However, the triple bottom line of sustainability seems to remain a hard one to
elaborate.
Secondly, look at the pyramid of corporate social responsibility as represented on
page 49 in your textbook and in the article 'Corporate Social Responsibility - Eine
Bestandsaufnahme theoretischer Konzepte, Argumentationsmuster und
Erklärungsansätze' by Mildenberger and Thiede (see the copy in the
Downloadcenter).
The contribution of normative ethical theories to business ethics
In the beginning of the course, providing the theoretical fundament of ethical
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considerations, we provided quite a broad range of theories, ranging from the very
traditional ones to more intuitive modern answers.
In many cases and features that the textbook provides, we tried to make ethical
dilemmas most vivid possible for the mind to think about.
Influences on ethical decision-making
The moral framing of ethical issues in the work place, like organisational norms,
work roles and value settings deeply influence the ethical decision-making as we
saw earlier in the course.
The role of management tools in business ethics
The tools of ethics management are far less 'ready-to-use' ones than instrument
sets in other business disciplines as finance or marketing. To see, how much of
the presented ways you adher to, try to outline a short but pregnant approach on
the following task.
Weekly Discussion
Weekly Discussion & Case Exercise
Weekly questions of week 8/9
Please have a look at the pretexting scandal from Hewlett Packard in 2006 (published in:
Jennings, M.: Business Ethics – Case Studies and selected readings. 6th edition, 2009; see the
link below t a copy of te case text).
Your group members have been appointed to the new ethic commissioners for the company and
have to write a study that implies possible courses of actions for Mark Hurd how to proceed with
the situation after the scandal became public.
Please also cover the factors that lead to the pretexting and furthermore the judicial perspective of
this occurrence. How to prevent such debacles?
As mentioned in the Study Guide the group task (Case 2) will be graded in a different manner in
comparison to all other tasks of the Management and Ethics course.
I will grade the quality of the group solution (10 out of 20 points) and the group members of each
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group will grade the participation level of all other group members within the group (Peer
Evaluation). The scale for the Peer Evaluation is between -10 and +10. -10 means that the group
member did not participate at all and +10 means that the participation level of the group member
was excellent. For example: If your group solution will be scored with 10 and the average results of
the Peer Evaluation will be -5, your final grades for case 2 will be 5 out of 20. If the average result
of the Peer Evaluation will be +9 your final grades for case 2 will be 19 out of 20.
Please turn to the Weekly Discussion & Case Exercise forum and discuss
the Week 8 question(s) or participate in the Case Exercise.
The discussion for Week 8 or the Case Exercise will focus on topics
covered in Lesson 8.
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