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Student’s guide
Business Ethics in Practice
CONTENTS
Introduction
Skills and capacities
Practising critical reflection
Other resources
Making connections
Blog
Assessments and assignments
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Ethics health warning
Summary of how to use this book
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INTRODUCTION
The aim of this business ethics book is to enable readers to take responsibility for
how they organise their ideas about ethical values and practice. Aristotle suggested
that such reflection upon the end or purpose of practice is what ethics is all about.
Hence, the most effective way of learning in this area is to think critically about the
issues and to practice critical dialogue that questions not just what is right, and also
our view of the good- what informs any right action.
What follows does not aim to give the right answers about ethics or solutions to
ethical problems; rather, it offers rather a series of suggestions of how to enable
ongoing critical dialogue, and to develop the different tools of ethics in practice. The
tools are focused in the first four chapters, with different ethical theories and
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approaches to ethical decision-making. Running throughout the chapters are themes
summed up in the introduction to the book, including values and principles, practice,
difference, joined-up ethics, ethical mapping and responsibility. Keep coming back to
those themes so that you think about responsibility in practice and the ways in which
we make sense of that in business, professional and personal practice.
SKILLS AND CAPACITIES
What the lecturer is looking for, therefore, is not ‘correct answers’, and especially not
to impose a view of what is right or wrong. The key is to develop how you think about
ethics, how you make ethical decisions, and the skills and capacities you need to do
that. The tools are the means of getting there, and we will tie that into the
assignments below. Each chapter will show the learning outcomes. Articulation of
the key skills and capacities will vary from institution to institution, so check these out
and see how they relate to this book, and especially to the key skills and virtues
associated with the three modes of responsibility: taking responsibility for your own
thinking; accountability; and responsibility for the social and physical environment.
The first of these involves metacognition, the capacity to think about thinking, and
how you order your thoughts – i.e. knowing how we use words and what they mean.
An important part of that is also to encourage reflection on the practice of language,
involving the key skill of listening to your own words, arguments or narrative.
Do you know the core values of your practice in business? Can you critically
assess them? What ethical theory or ethical world view underlies your view of
the good, and can you justify these?
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Do you have the capacity to question yourself, peers and leaders? This
demands the development of respectful critical dialogue, in seminar and class. It
also requires the capacity to hear and critique one’s own arguments.
Are you aware of the social and physical environment, and the effect of
individuals’ or corporation’s actions on these? How do you or your organisation
maintain this awareness?
Do you reflect on the values underlying practice? This involves practising the
Aristotelian virtue of phronēsis - the capacity to reflect on underlying good and
relate it to practice. This requires us to listen to both the logic of the argument
(rational, analytical thinking) and to the values/feelings embodied in or beneath
the argument (empathy).
The second mode of responsibility involves the capacity to give an account of
thoughts, values and practice. Can you give a public account of these values and
your practice and to whom do you owe that account? Just to assert a value has little
rigour, and will not convince. Tied to this are skills of presentation, including a
capacity to listen to other arguments, appreciate them and critically assess them, so
that your account engages with the ongoing dialogue about values and practice.
The third mode of responsibility focuses on what one is responsible for and how that
responsibility is put into practice. The textbook suggests that this is not a black and
white area, and that responsibility is often plural, based in different roles. Hence,
there is need to develop the capacity to work with different responsibilities, to
negotiate responsibilities, and develop integrated, holistic and collaborative thinking
and practice such that shared responsibility and creative response is maximised.
The capacities associated with the practice of responsibility then include: critical
thinking; synoptic (joined-up) thinking; practical wisdom (the capacity to reflect on the
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good); empathy (deeper awareness and understanding of the self, others and the
wider environment); accountability; the capacity to share, plan and negotiate
responsibility; and the moral imagination (the capacity to see how the common good
can be embodied in practice). The practice of these elements remains key in all
different business contexts, from public organisations to NGOs, SMEs and large
corporations. For the connection of generic skills to ethics see Robinson, S. (2005)
Ethics and Employability. York: HEA). Many of these skills and attributes form the
basis of what Robinson refers to as integrity, and which he argues is central to good
and effective business practice. Tie in the core ethical skills to your institution’s view
of employability, noting how you would articulate that in events such as job
interviews.
PRACTISING CRITICAL REFLECTION
The textbook is built around critical reflection:
In seminars. Here there is chance for sustained dialogue. Use that time to
develop the skills noted above. Look for feedback on the spot about how you
think. Most of us complete the academic assignments and then wait for formal
feedback much later. That is an inefficient way of learning that puts off of
taking responsibility now for how we think.
In class. There is chance to reflect in a broader way in class through case
studies. Use the reflection in class to raise any issues you are not clear about
or to relate the reflection to ongoing issues in the news. Remember, one of
the most important capacities is to ask questions (see Chapter 4). The key is
to ask questions in such a way that they help to clarify.
The reflection is developed in a number of ways:
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Cases. There are 42 cases in the text (see Index). In the notes on the
chapters below we suggest how these can be used. Some will involve
ongoing reflection within the class (such as the Colombian rain forest, or the
Toothless Compact) on how you think or how you make decisions. Others
provide material that can be examined beforehand for discussion in class or
seminar (such as the alcohol industry and society, Nestlé and infant formula,
or Shell in the Niger Delta). The decision-making framework in Chapter 3
provides a basis for analysing cases, based in: data collection, value analysis,
stakeholder analysis and planning which takes account of consequences.
Further case studies can be explored on the websites noted below. We would
also encourage you to develop your own case studies. The text often gives
references for this. The reference to News of the World, for instance, can be
developed further through investigation of the Leveson Inquiry
(www.levesoninquiry.org.uk). Sometimes the case can be used to look at
underlying conflicts of ethical meaning. The different views are all accessed in
the text. There are no ‘correct’ answers because, as noted above, the aim is
to enable critical discussion. A good example is ‘big bonuses’, a topic which
works through different underlying views of justice.
Pause for thought. This usually focuses on underlying values or value
conflicts. It aims to break up any serial thinking and stand back to look at
underlying issues.
Scenario. This focuses on difficult decisions, where available options all have
negative consequences, referred to as dilemmas. This aims to foster the
imagination encouraging you to enter the scenario.
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Reflective practice. This will invite you to analyse stakeholders in a situation
and work through possible practice options in the decision-making. It may also
involve practising giving an account for the organisation or different
stakeholders using reports or planning or policy documents. It may also
encourage reflection on your practice in the workplace.
Films and books. Time will not allow you to look at all the films recommended
in the text.; it will be a matter for the teacher to decide how and when to use
the different films. However, they are all worth watching in their own right. It is
worth noting:
o The fictional films are aimed at stimulating the imagination about different
perspectives on values, practice and responsibility.
o The documentary films are aimed at generating debate. All will come from
a particular ethical position and thus their use in teaching requires critical
testing. Hence, for instance, we include critiques of Al Gore’s film An
Inconvenient Truth.
In addition we suggest a ‘media watch’. Bring to the classes contemporary
issues in the press, radio and television and on the Internet, such as big
bonuses.
PowerPoints. It is easy to become obsessed with PowerPoint presentations, as if
they contain all that you need to know. All they actually do is to provide a
summary of the key ideas, debates and arguments. The reflection that is often at
the beginning of these provides ways of making these debates come alive.
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OTHER RESOURCES
Disclaimer
You may access other websites via the hypertext links provided. You use such links
and other websites entirely at your own risk. Such websites are provided by
independent third parties and CIPD accepts no responsibility for the availability,
content or use of such websites or information contained on them.
There are several good ethical websites, all of which have additional case studies
that can be explored by students, including the following:
Eldis
The Eldis organisation has good global ethics resources.
The Markkula Center for Applied Ethics
This website, part of the Santa Clara University, has useful sections on business
ethics (with a good range of case studies) and ethical decision-making.
Business & Human Rights Resource Centre
This organisation is strong and balanced on justice and human rights, with a wide
range of ongoing information and cases.
Ethics Resource Center
This US website is strong on workplace and organisational ethic.
BELL: The Business Ethics Links Library
A very useful site from the University of Colorado with a searchable database and
links to codes of ethics for US companies and trade and professional
associations, ethics sites at universities, industry information and company
promotion of social responsibility.
Institute of Business Ethics
A well-established business ethics institute with strong practical resources.
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Business in the Community
BITC has a good website for locking into ongoing debates.
Ethics Education Library
Ethics education resources in engineering and science. Methods for inserting
ethics into class curricula and lab meetings, introductions on how to teach ethics,
and discussions of major ethical issues in engineering, and many case studies.
Online Ethics Center for Engineering and Research
The resources section of this website includes a strong collection of case studies
such as the Bhopal disaster.
Ethics updates
This website from the University of San Diego provides a range of excellent
resources.
Business ethics
This is a large, annotated directory of ethics sites. It includes articles, special
reports, newsletters, case studies and more.
MAKING CONNECTIONS
We suggest that you keep a log that makes connections to other modules. Some
other modules, for instance, will cover decision-making frameworks. It is worth
looking at how the ethical framework relates to these. Is it broadly the same or are
there important differences? If there are differences how will they pan out in
practice? For instance, will the ethical aspects impact on effective decision-making?
If so, how?
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BLOG
One way of making connections is through a blog. This involves an ongoing series of
commentaries. The aim of these is to link contemporary events in business and
related areas to the core ethical tools and perspectives of the book, and to different
places where there is ongoing debate. Once again there will be no attempt to
prescribe what the ‘right answer’ is. The commentaries encourage critical reflection
on the different arguments being used. Simon Robinson and Paul Dowson will,
however, also reveal their own arguments and will be happy to field responses.
responsibility
This website aims to facilitate a network and provide a forum for discussion about
responsibility and irresponsibility in the corporate, social, professional, civic and
personal arenas.
ASSESSMENT AND ASSIGNMENTS
It is very easy to go through the exercise of doing an assignment without
understanding the value of what you have done. We know; we have been there. We
suggest below ways approaching assignments to make the most of them, and offer
some examples of assignments.
Assessment
The teaching of this course will differ from place to place. Each institution will have
its own criteria of assessment, so familiarise yourself with that. Most frameworks of
assessment criteria relate closely to our description of responsibility, noted above,
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with strong emphasis on critical data gathering, intellectual analysis, and the
development of arguments and plans.
Assignment 1
Students develop a PowerPoint presentation around a case study in groups of six.
This will involve a 15-minute presentation and a 15-minute question and answer
session, both in role. There are two possible approaches:
1. Higher education. Critically examine the approach of a university to corporate
ethics and responsibility. Each presentation group should represent a different
stakeholder, including the student union; two different professional bodies
within the university (such as medicine, law or accountancy); a local
community body; an ethical consultancy brought in to advise; the academic
union; the local chamber of commerce; a team from the Higher Education
Academy; and a local government body.
Each group will give a presentation on how it would develop the ethical and
social responsibility of their university and then be interrogated by the other
groups. Practitioners and also members of the university leadership team
might be part of the assessment team.
For resources see the references in the text to higher education and the CIHE
(2005) report (see Index). The CIHE report gives a good example of what can
be done, and how to do it, with various options provided. Students should
examine different university websites for evidence, and use the material in the
first six chapters about developing codes and culture.
2. Students to choose different cases, taken from the text or the websites, so
that most presentations are different. For each case the presenting group
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would give a 15-minute PowerPoint presentation (with class handout) advising
the case company on how they might develop their ethical and social
responsibility policy (addressing any of the problems experienced). The staff
and other students would act as questioners.
This exercise will help to:
improve teamwork
develop presentation skills
improve ordering ideas around a key theme
develop chairing and group discussion skills
develop the capacity to give a focused account, to build an argument and
to handle different and competing views around ethics.
In both approaches students should focus on any problems; the vision/purpose of
the organisation; the view of corporate responsibility and how it fits in with the nature
of the institution; and how the responsibility of the organisation might be developed
in relation to the stakeholders.
Assignment 2
An essay of 2,000 words or 3,000 words.
If the first assignment focuses on interaction and communication skills, this
assignment focuses on the key written skills and thus upon the presentation of an
essay. This has immediate effects on employability, enabling:
ordering of the argument, focusing on making all aspects clear to the reader
detailed writing skills
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imaginative presentation providing illustrations or case references that show the
core concepts in practice
clarity about key theories and how they relate to practice
critical assessment of theory - tested for internal coherence (logical thinking),
how it relates to practice and to other theories
critical assessment of arguments - for internal coherence, rigour, effective
empirical support, and relevance to practice
imaginative and rigorous development of ideas and values (and underlying
theories) and practice.
All of these connect to responsibility, not least in giving an account, requiring:
truth
coherence
empirical support
critical justification of values, argument and assessment of consequences.
Essay questions
1.
Critically assess stakeholder theory as a justification for corporate
responsibility. Illustrate this with a case.
This would focus on Chapters 4 and 11, considering the different stakeholder
theories, Sternberg’s critique, the agency theory critique of Friedman, the
limitations of theory based in need, and the theory seen in the light of a more
complex view of responsibility (Chapter 4). Several cases in the textbook would
provide good illustrations, such as Nestlé or the credit crisis.
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Critically assess the role of NGOs in corporate responsibility, giving two
examples.
This would focus on the critiques of NGOs in Chapter 11, and on cases such as
Nestlé, Brent Spar, or Caterpillar where good and bad practice can be
illustrated. Stakeholders analysis can help to develop NGO negotiation of
responsibility.
3.
Critically assess the concept of human rights or global justice and consider,
with illustrations, how business might effectively put these ideas into practice.
This would focus on global ethics (Chapter 13), the theoretical debate about
human rights or global justice, awareness of very different views under each
heading, and examples of how global justice can be practised or human rights
responded to. The debate can reflect organisational and global justice, and also
how the global issues reflect the theoretical approaches of the first two
chapters.
4. Critically analyse the concept of justice and how it can be applied in the work
place, with illustrations.
This would focus on a critical assessment of the different views of justice (in
Chapters 2, 4, 6, 7, 12 and 13), from Rawls to Nozick, justice as a virtue, and
justice and organisation and process. A good illustration would be the
development of compensation philosophy and policy.
5. Critically analyse the ethical theory of universal responsibility, considering its
problems for business use, and usefulness.
This would focus on Chapter 4s analysis of responsibility, the
Levinas/Bauman view, with its limitations, and how it might be practised in
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examples developing responsible cultures (e.g. Herald of Free Enterprise)
seen in Chapter 6.
6. Critically analyse the idea of conflict of interest as set out by George Monbiot.
Is it possible to accept conflict of interest as inevitable, and what kind of
practice might preclude unethical results? Provide an illustration.
This would focus on Chapter 8, and how different interests and underlying
value conflicts emerge in business life and how they might be handled.
7. Critically analyse the application of ethics and responsibility to SMEs, with
illustrations.
This focuses on Chapter 11, and whether the systematic approaches to ethics
practised by large corporations can be applied to SMEs. In the absence of
reporting resources, how can SMEs develop this practice?
8. What constitutes an ethical leader?
Focusing on Chapter 5, this asks students to reflect critically on Burns,
Greenleaf and related theories that see ethics at the heart of leadership. This
could provide examples from governance, such as dispersed leadership,
negotiated responsibility and critical diversity.
9. Critically analyse the theory of virtue ethics and consider how it might relate to
employability.
Focusing on Chapters 1, 4 and 6, this asks students to critique MacIntyre and
his virtue ethics theory and related virtues of everyday work decision-making
and the skills of employability.
NB the lecturer may well develop other questions.
We now go through each chapter with suggestions of how the learning strategy
might develop.
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CHAPTER 1
‘Are we still the good guys?’ Introducing Ethics in
Business
Chapter 1 introduces ethics in practice, and some stereotypes of ethics and business
ethics. The Everest case is important in starting to think around what is involved in
ethics. It aims to give you space to work out what decision you would have made,
and why. People are often shocked by what happened and argue for a strong
deontological ethical perspective: stop and save the man. In class give voice to any
different views and critically test them. At this stage it is important not to come up
with ‘right answers’, but to allow any conflict around values, and related dissonance,
to be felt. The widening of the focus from individual response to the response of a
business leader to the same case aims to provide a very different perspective,
suggesting that the good in the situation involves something wider than just the fate
of one man. The very different views surrounding the ethos of climbing focus on
reflective practice, ensuring that this is not abstract thinking, but thinking based on
the need to make a corporate decision. This is reinforced at the end of the chapter
with conceptual work on reflective practice, and in Chapter 3 on ethical decisionmaking.
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Initial reflection helps to set out the agenda of the course to come. Hence, it is worth
making a list of the issues emerging for you, such as the relationship between
personal and professional ethics. We suggest that you plot the list against the
developing module as a whole, e.g. the different views of right and wrong will be
picked up in Chapter 2, decision-making in Chapter 3 and responsibility in Chapter 4.
Case: News of the World
Found at the end of the chapter, this provides a chance for you to keep working
through what ethics might mean. A good way of sustaining this case is to visit the
Leveson Inquiry into journalistic ethics (www.levesoninquiry.org.uk).
At this stage the aim is to develop a conversation about the rights and wrongs of the
case and underlying ideas of the good, highlighting different perspectives and why
they are held.
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CHAPTER 2
Normative Ethical Theory
This chapter aims to introduce ethical theories, and so to explore more
systematically the issues that were introduced in Chapter 1 with the Sharp/Everest
case.
Normative ethical theories can easily be seen as abstract or dry, but in real life are
attached to strong feelings. The case of the banker’s bonuses raises blood pressure,
so consider how underlying theoretical positions are played out in the analysis of
this. Is it simply wrong to allow such bonuses (the principle that extreme inequality is
wrong), or does this depend on consequences? If the ethics is based in
consequences then these might support arguments for or against bonuses, eg it is
good to give bonuses because it keeps these leaders in place and supports
increased wealth, or it is bad to do this because it leads social division, provides a
model of greed, etc. Each of these consequences represents a good, but each
needs to be tested against the slippery slope fallacy (see Chapter 3).
This chapter aims to develop critical thinking about such theories. What do they
mean? Why should we follow such values? How do we deal with different, possibly
conflicting, values, and so on? This will help you to critically assess the different
arguments around this issue.
In this chapter we also stress the need to critically examine underlying world views,
which may be based in cultural or religious perspectives. This raises a key issue of
how you might critically question someone’s belief. It is often assumed that a belief
should be respected and that this involves not questioning that belief. However, it is
possible to respect a person, and also challenge their belief. Such a challenge has to
be based not in the nature of the belief but in the consequences the belief may have
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on others. If the consequences are negative then it is reasonable to question the
coherence of the belief.
Case: News of the World II
The News of the World case is worth revisiting, focusing on the developing debate in
the Leveson Inquiry in the light of the ethical theory in this chapter. In particular,
examine the evidence of Richard Desmond on the enquiry website. This focuses on
ethical relativism and seems to deny the possibility of a shared professional ethics.
What would be the argument for a professional ethics in this context (utilitarian, i.e.
good effects, principles of respect, etc). Ian Hislop’s evidence seems to focus on law
and the enforcement of present laws, but also on the importance of freedom of the
press. Begin to work through what that freedom might mean and whether it is
freedom to use any means to find the ‘truth’. This will link to Chapter 4 and the issue
of freedom and responsibility. It will also link to Chapter 3 and the possibility of
prioritising values. The Leveson Inquiry engages most of the normative theories,
including: deontological (eg respect for clients/news focus/profession); utilitarian (the
negative effects on the news subjects or their family or on the wider moral fabric of
society; the good effects in revealing truth); virtue (the community of practice of
journalism, i.e. what is the purpose of journalism and when does the search for truth
cross the line?).
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CHAPTER 3
Ethical Decision Making
Chapter 3 focuses on how we think ethically and make ethical decisions. Descriptive
ethical theories focus on how personal development, context and culture affect such
thinking. Hence, the first exercises invite you to reflect on how you make ethical
decisions. The ‘Pause for thought’ on page 39 can be used as homework prior to this
session. The aim of the following case is to help you reflect on ethical practice, on
how individuals and groups might make an ethical decision and how it relates to
practice, i.e. on how to work out an appropriate answer, not on what the ‘correct’
answer is. This will relate directly to the outlining of the ethical decision-making
method.
The development of ethical decision-making method provides the basis for how all
cases are approached throughout the book. Hence, in approaching those cases go
back to the critical thinking at the heart of this method. Use this also as the basis for
listening to your own ideas and arguments:
Have I effectively collected data? What is the evidence for this data?
Am I clear about underlying values and how they relate to each other and to
practice?
Are my arguments logical and coherent?
Am I clear about potential consequences, and how these have been assessed?
Am I clear how responsibility can be shared?
Reflective practice
The reflective practice on page 57 is helpful in reflecting on your own ethical method.
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CHAPTER 4
Whose Responsibility? The Ethical Environment
Chapter 4 builds in further depth around the key ethical category of responsibility and
the plural nature of the ethical environment. Once again this is focused in reflection
on a recent case that has caused a lot of ill feeling: the credit crisis. The case gives
some of the basic reasons for the crisis, which is then considered in more depth.
Hence, for instance, the idea of greed should be critically addressed. What does this
involve and what is wrong with it? This involves imagining the possibility that it is not
wrong (the Pause for thought ‘Greed is good’ on page 64). Key to the reflection on
the credit crisis is the analysis of responsibility. This leads directly into reflection on
the meaning of the term.
Case: Practising responsibility: computer games
The case on page 75 in some respects sums up the issues around responsibility.
There are no ‘right answers’ to the questions. The key is to link answers to different
modes of responsibility and how you make sense of it in that situation. Hence, for
instance, the first question might point to the fear of the company being held
accountable for the action. The second question invites reflection on the
accountability of the different companies and also any sense of shared responsibility.
The final questions invite reflection on how you might work through responsibility in
this situation. The case highlights the difficulty of reducing responsibility to single or
narrow roles.
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CHAPTER 5
Leadership and Governance
Once again, this chapter begins with reflection on your own relationship to, and
experience of, the subject, in this case leadership. The answers to the Enron case
(page 82) are developed in the following text.
The Enron DVD is very useful. It is worth accessing this before it is covered in class.
The big question for ethics and leadership is how the two are related. Is there an
objective, value-free, view of leadership, or is the very definition of leadership based
in ethical meaning? All the models we discuss suggest, in one way or another, that
the leadership is based in ethical values, just as a profession such as medicine is
based in ethical values.
Case: Body Shop
The Body Shop case provides an important model for leadership. At one level this
can simply be used as an exemplar of good practice – Roddick the ethical hero(ine).
At another level you might think through different styles of leadership and ask if they
are related to gender or context, looking back to Carol Gilligan in Chapter 3 and
feminist ethics in Chapter 2.
The key aspects of this case underline the way in which Roddick enabled
stakeholders to take responsibility, and hold together a very big, global, ethical
picture, alongside effective and creative enterprise.
However, it is important not to see an ethical hero as perfect. How would you assess
Jon Entine’s critiques of Roddick?
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CHAPTER 6
Character, Culture and Code – Managing Ethics
This chapter initially focuses on a development of key ideas like character and
culture. The Arthur Andersen case study at the beginning is very useful. It reminds
one that, despite the demise of the firm, it was built initially on the virtue of integrity.
Perhaps most importantly, it shows the need to keep practising virtues if they are to
be sustained. In this case the ethical muscle and tone of the corporation was lost. It
also shows the need to relate to core values and narratives about the identity and
value of the firm.
Before moving into reflection on the virtues, it is worth reflecting on what you see as
integrity – including giving examples – and what might be the limits of any view of
integrity. Because ethical virtues tend to be seen as very distinct from occupationally
useful skills it is worth taking some time to reflect on how virtues might relate to the
skills of employability, and what the occupational utility of developing virtues might
be (perhaps with reference back to the credit crisis in Chapter 4). The brief exercise
about CV or interview on page 111 is useful in bringing these ideas together.
Case: Barcelona FC
The Barcelona case is very rich. It is worth stressing how the cultural identity of the
club (‘more than a club’) sets the tone of any ethics. At one level it focuses social
concerns, such as its involvement with UNICEF. At another level it openly accepts a
plural identity, and thus from the ground up breaks out of a closed ethical system.
Supporters are local, national and global citizens, with a commitment to the club
expressed in their membership. In turn, this leads to a concern for transparency and
accountability, expressed by their developing code. Would you have any critique of
the Barcelona code?
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CHAPTER 7
The Workplace of the Twenty-First Century
In an overview of ethical work issues this chapter develops the ethical imagination
(Lederach), not looking for simplistic answers. Hence, it looks to personal
experience, but also to the response of different stakeholders. Reflect widely on the
scenario on page 129. Is ethics best served by:
‘Seeking justice’ and complaining that the interviewer was unfair or racist?
Acknowledging that this might be a particular issue in this context, and assuming
that there was no ill intent in the question?
Providing the answer given in the text, and thus limiting the challenge to the
implications of good HR policy?
You will see that ethics in HRM is often closely related to the care of the workforce.
The big debate is around whether such care is used to further the aim of
management, or whether it is part of justice in the workplace, or a deontological
position which seeks to respect the workforce.
Case: John Lewis Partnership
This case draws the chapter together with the previous three. Leadership, culture
and workplace ethics all converge, enabling all three modes of responsibility to be
practised, and the meaning and practice of justice and dispersed leadership to be
developed. It also provides an interesting basis for discussion of workplace
democracy. Is it feasible to develop such a model, or one based on the co-operative
system?
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CHAPTER 8
Business, Management and Professions
Part of the key to Chapter 8 is generating inter-professional dialogue around role,
responsibility and purpose. The questions in the Challenger case (pages 145-147)
focus on that dialogue, between professional, management and system and how the
rigour outlined in the first four chapters can inform it. The key issue that emerges is
that business does not involve a single practice or ethical narrative, but rather
several, often at different times. The strength of this for ethics (Bauman 1989) is that
all narratives are tested, or test each other, ensuring that no single view of ethical
value dominates. Hence, in working through ethical meaning it is important to
consider the other narratives.
On page 155 the ‘pause for thought’ asks about the main problems with the oath
taken by business students. Most of the issues about any oath are covered in the
text that follows the ‘pause for thought’. This particular oath has problems to do with
lack of a code that specifies key terms such as honour or integrity, and the lack of
any regulation that might deal effectively with those who break the code. This is
further developed in the reflective practice on page 159.
Case: higher education
There are two further case studies in this chapter. The higher education case links
into your experience as a student, and part of a major public corporation - an
institution with a long history. This ties in well with virtues ethics and the reflection on
the good. It is worth sharing with other students what good you think higher
education is based in, and thus what are its core purposes. The several purposes of
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higher education show that the community of practice involves several different
narratives. Is there a central narrative of purpose? How do the different narratives
listen to each other? How do the different narratives relate to core underlying values,
such as freedom (academic), justice (in assessment and so on) and responsibility (in
learning)?
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CHAPTER 9
Consumers
This chapter aims to focus ethical tools in the relationship with the consumer. The
first case study on alcohol and society provides some big questions that demonstrate
how social ethics and business ethics are related. Answering the questions on page
168 involves examining the case study and the core ideas of Chapters 1 to 4. The
case also raises wider issues of responsibility and how this might be balanced, and
the issues of marketing products that can be unhealthy.
There is opportunity for sustained debate around the Hayek/Galbraith and
Starbucks/Ethical Consumer issues. There is also space towards the end of the
chapter to reflect on the identity of the PR profession. Can it claim to be such an
independent profession when the popular view of PR is that it distorts the truth in the
interest only of business? See if the Stockholm Accords alter that view.
Case: Nestlé and the ASA
This case focuses on ethical identity, and how much of it any corporation can claim.
It returns to the theme that no ethical practice is perfect and that integrity involves
learning. This continual learning can be exemplified in the Co-op’s latest policy,
which has space for learning and development whilst at the same time articulating its
present
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CHAPTER 10
Supply Chain and Competition
This chapter looks mostly at the supply chain. The key debates are around how it is
possible to effectively develop awareness of all aspects of the supply chain. It is
worth stressing the SME experience, which is often seen as involving immediate
supply chains that can easily be understood. However, any SME may be part of a
supply chain itself and unaware of how its ‘widgets’ are being used. Alongside this is
the example of Tesco and the wider issue of responsibility for the business
environment.
The case of Hilti’s relationship to the supply chain is worth careful reflection. Should
any large firm be so prescriptive? How can the firm both respect the autonomy of the
provider and also demand ethical awareness and change? This can be compared to
the Taylor’s case. Again this stresses the working out of responsibility in the supply
chain, but in a slightly different way.
The issues surrounding child labour provides the basis for a strong debate around
universal principles, local values and responsibility at several different levels and
how it can be negotiated.
Case: Nike
The Nike case study links into the child labour debate, but also suggests that the
issue of supply chain involves not simply responsibility and practice, but also the
ethical identity of the firm and related meaning and world views. In the case of Nike
this links into some very high ideals around sport which are directly linked to the
common good. These strikingly conflict with the practice of allowing sweat shops in
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the supply chain. At one level this should come as no surprise if, for instance, highly
moral mill owners in Victorian times could allow children to labour for 14 hours a day.
The key issue then becomes how one handles the lack of awareness and the strong
dissonance that comes from such value conflicts. Often such conflicts are not felt
because the ethical status of the key stakeholders is not understood. Hence, for child
labour to be addressed in Victorian times the very view of children had to change. Up
to this point they were not seen as fully human.
It is worth looking back to Chapter 4 and how the board can ensure the highest
possible awareness of the supply chain environment.
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CHAPTER 11
Social Responsibility
This chapter focuses on social responsibility, and role responsibility. Key to this is
reflection on purpose, in effect the practice of phronēsis. The core debate between
Freidman/Sternberg and the stakeholder approach is one where purpose is critical.
Friedman/Sternberg rest on a view of single purpose whilst the stakeholder approach
requires that several purposes might be served at once, and that these are
connected to relationships.
From that focus one can begin to move on to the more detailed work of the chapter,
seeing how imputability, accountability and shared responsibility can be worked
through in relation to society.
Again it is important to refer back to the first four chapters so that social responsibility
can link in with the decision-making process, and how it connects into many different
areas: enterprise (social); citizenship; volunteering; business ethics; and sustainable
social and economic communities. What holds them all together is reflection on
purpose and practice.
Also key to this chapter is a critical examination of different stakeholders and how
they practise responsibility, not least NGOs and shareholders. Hence, any links to
related organisations could enable debate.
This chapter also provides space for reflection on SME practice. We suggest that a
seminar with the head of the local chamber of commerce would sharpen this
dialogue.
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Case: the social responsibility of the tobacco industry
This case takes the issue of responsibility and the related virtue of integrity and tests
them in the ‘hard’ example of the tobacco industry. The big questions are: is it
possible for a firm to have integrity when it sells a product that kills, and also works
hard for social responsibility in various communities? How can the production and
marketing of tobacco contribute to the common good? Is it reasonable to build an
argument on the responsibility and freedom of the consumer when this would not
stand up in relation to a similar substance such as cannabis?
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CHAPTER 12
Business and Government
This looks at the relationship of business to government. This chapter explores the
way in which hard cases, such as the alcohol and tobacco industries, take the
executive’s ethical argument beyond a narrow view of business ethics to
consideration of core political and philosophical principles such as freedom and
responsibility.
The Caterpillar case is very effective in pushing at views of responsibility in relation
to the government. Several of the arguments in the text use argument by analogy, in
this case the sale of a knife. Think back to Chapter 3 and the use of fallacies and
critically test out the use of analogy in this chapter. Is it an appropriate analogy and,
if so, why?
Case: the Niger Delta
This is a very effective case in working through the issue of responsibility for peace
and conflict resolution, not least in the initial association with the deaths of the ‘Ogoni
Nine’. It stresses the need to articulate carefully the relationships with governments
and retain some element of leverage, as well as the need to maintain levels of
awareness about the social and physical environment.
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CHAPTER 13
Global Ethics
This chapter on global ethics provides useful opportunities for debates. Globalisation
moves quickly into global justice and human rights. These amplify the earlier debates
about universal values and ethical relativity. They also focus on the issue of business
responsibility, both for global ethical meaning and practice. Ethical and fair trade
provide a good basis for debate here, and it is important not to see these ‘simply’: as
noted in the chapter on the supply chain, it is important to critically test these ideas.
The ethics of multinational corporations are central to this chapter, with the
suggestion that such institutions may have an important role in mediating ethical
meaning and practice.
Case: Nestlé and infant formula
This case is very valuable for summing up all the content or the book to this point.
It embodies work around the three modes of responsibility, global ethics, justice,
complex stakeholder relationships, different views of the common good, and the
importance of codes in relation to the building of a wider culture of trust.
It can be used as a very effective role play. The key to any analysis or debrief is
simply allowing these various point to emerge from the case, so that the complexity
of ethics can be worked through, alongside the need for creative imagination in
developing ethical meaning.
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CHAPTER 14
Environmental Sustainability
This chapter begins to make clear how the ecological debate (with concepts such as
sustainability) links to responsibility, and how it can be worked into practice. Like the
other chapters there are no textbook answers. Hence, the aim is to enable you to
test the debate in practice. Global warming, for instance, involves debate about the
related science, but less debate in practice about the need for prudence and
continued critical dialogue. Attempts to move the debate into business and national
interest versus the global concerns tend to polarise the debate and not enable selfinterest and the common good to be held together. The BP case enables all of the
responsibility modes to be examined in a global context.
Case BP and Deep Water
Like the Nestlé case, this sums up many key issues. The issues that emerge include:
awareness of the external and internal environment; awareness of the effects of
discrete decisions; the three modes of responsibility; the basis for ecological
responsibility and the need to takes it beyond targets.
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ETHICS HEALTH WARNING!
The last three chapters should have an ethics health warning attached. It is
especially here in the global context that the ethical debate can be polarised. As we
suggest in the first chapters, applied ethics is not about ideology or attempts to the
change the world, but rather a critical reflection on ideas, values and practice. It
might be said if such reflection is systematically carried out there would be a better
chance of changing the world.
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SUMMARY OF HOW TO USE THIS BOOK
Identify the core ethical tools that are developed in the first chapters.
Make use of the tools and practise the related skills and virtues in the different
contexts the book focuses on.
Develop your ethical identity and that of your organisation so that you can give
an account of your ethics, personally and professionally, to colleagues, partners
and stakeholders.
In addition to the practice of the core ethical tools and the key modes of
responsibility (relevant to all businesses great or small), the book gives particular
examples of how to develop areas such as ethical codes and culture, management
planning and reporting mechanisms. These elements can fit easily into professional
strategic thinking and planning.
Key to all use of this book is that you look to take responsibility for ethics, its core
values and practice. Too many cases show evidence of failed business
organisations that have established codes and reporting mechanisms, but without
developing their ethical capacities, not least ethical awareness and imagination.