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BE-P09
PGDM 2009-11: Term-III

BUSINESS ETHICS
DR.B.P.PATRA
OBJECTIVE OF THE COURSE:
The cases of Enron, WorldCom, Tyco, Adelphia, Rite Aid, Health South, Arthur Andersen, Earnest and Young, J.P Morgan, Merrill Lynch, Morgan Stanley, Xerox, Boeing corporation , the most recent case of Lehman Brothers filing for bankruptcy of the 158-year old company, and the Rs.7800 core fraud by Ramalinga Raju CEO, Satyam Computer System clearly illustrate the perilous consequences of corporate misconduct. Financial institutions globally have been suffering write-downs and credit losses as the U.S. sub prime mortgage crisis has engulfed other markets. The financial greed and lust for power in the last decade of 20th century not only ruined some organizations but also injured the society at large. They have done irreparable damages to creditors, employees, and the share holders (particularly the small investment community). The root cause of the problem lies in the ethical -break down of the organization.

In order to identify the ethical problems, and prevent the risk associated with moral failure students need to develop a clear understanding of the ethical issues. The main aim of the course is to sensitize the students to different ethical issues involve in contemporary business. This course will help them to identify and resolve the ethical problems. It will also motivate them to act ethically/rationally in business decision-making as well as other areas of life. Of course, the objective of the course is neither character building, nor providing any specific solution to eradicate unethical business behavior. Rather, the primary purpose of this course is to prepare the students to prevent unethical activities that affect business (both in macro and micro level in all the functional areas). This course will also focus on the fact that acting ethically “pays.” Nevertheless, acting ethically and acting in the best interests of oneself and one’s company, far from being exclusive, are complementary. Therefore, there is every reason to act ethically. This course is devoted to help the students to identify ethical dilemmas in the professions through the use of critical and logical analysis. Conceptual clarity of some basic moral conduct concepts like; right, wrong, good, bad, just, unjust, obligation, responsibility, virtue, vice and moral theories will help them in taking effective decision. Thus this course will act as a useful tool for the students to become efficient managers.

· Take-up responsibility by using sound moral judgment.
· Walk the Talk by creating value (for stake holders), which are morally rich.
· Put together "doing right things" and "doing right things for business".
· Encounter the environment of scandal and bad behavior with moral courage and not hide behind the old excuse of "the business of business is business".
A brief note on Critical Thinking: The capacity to evaluate skillfully and fairly the quality of evidence and detect error, hypocrisy, manipulation, dissembling and bias.
Critical thinking is essential for both individual and organizational success. [For further details see wikipedia.org]
*Critical thinking helps to make decisions based on sound logic and reason
Critical thinking helps to improve quality of human thinking and to enhancing quality of life
Critical thinking helps to weigh alternative systems and standards, assess alternatives, find out solutions complex problems and effectively communicate it to others
Business Ethics Concepts : Economics, Ethics, Morality, Rationality, Justice & fairness, Equality,Governance, Social Responsibilty, Loyality, Trust, Stakeholders Theory,Moral Reasonong,Social Capital ,Natural Capital,Opprtunity Capital,Insidertrating ,and Whistleblowing.
Business Ethics Issues; Bribe, fraud and corruption, Unhealthy Competitions, Business risk, White collar crimes, Environmental problems, Gender equality, Mergergers & Acquisation, Hostile takeovers, Reputation Management, Layoffs &Downsizing,Sexual harrashment, Risk management, Ethics of MNCs, Human rights, Truth telling in advertising, issues, and Pricing policy, CEO Compensation
COURSE CONTENTS:
Sessions:
Session 1
General Introduction: Origins of Business and Economics, (Adam Smith)
Readings: Sen A. Ethics and Economics, Oxford University press, 1987.
Sternberg,Elaine, .Just Business: Business Ethics in Action,Warner Books,1994
Session 2 &3
What is ethics?
i) Fact and Value, ii)Moral and non-moral value judgments,iii) Morality and Law
iv) Ethical thinking v) Nature of ethics, vi) Why be Moral,vii) Ethical Relativism
Moral Development
(i)Kohlberg’s 6 stages of moral development
Readings: Basic principles from Velasquez, Manuel G. Business Ethics; Concepts and Cases, (6th edition) Pearson Education, 2006.

Session: 4
Ethics and Business:
(ii)Why be moral in business?
(iii)The myth of amoral business.
(iv) Business ethics and Corporate Social Responsibility ( CSR)
(v) From stock holders to stake holders (brief focus on governance and ethics)
Videos : “Misconducts in Business”, “The Eagle’s Secrete”
Sessions: 5
Ethical Theories: An introduction to decision making tools; Utility, Justice, Universality and Consistency.
Sessions: 6-8
Case Analysis on individual and corporate level deviance and confirmity (Group Presentations)
Sessions: 9&10
Ethical Theories:Cont....
(i)Utilitarianism (J.S.Mill)
(ii)Deontology (I.Kant)
(iii)Virtue Theory (Aristotle)
Vedieo: “Character is Destiny”
Session: 11
Theories of Economic Justice:
(i)Distributive Justice (John Rawls)
(ii) Libertarian Justice (Robert Nozick)

Sessions: 12 &13
Ethical Issues in Functional Areas of Business :( Marketing, Advertising, and Finance)

(iii) Fairness and Efficiency in Financial Market (Insider Trading and Green mail)
(iv) Truth in Advertising
Session: 14
Workers Right and Duties within the Firm
(i) Whistle blowing
(ii) Work place Safety, (iii) Discrimination (based on sex, race and cast)
Sessions:15
Indian Value System
(i) An Over View of Indian Philosophical Tradition (both Orthodox &Heterodox systems) and its relevance to contemporary business.
(ii) The Four Purusarthas: Artha(Wealth),Kama (Desire),Dharma(Moral Principles)and Moskha (Salvation)
APPROACHES TO CASE ANALYSIS IN BUSINESS ETHICS:
(i)Rational Approach (ii) Transrational Approach (iii) Goodpaster’sApproach

Sessions: 17-20
HBR, Articles Presentation

PEDAGOGICAL METHODS:
All these issues will be discussed conceptually and relevant case studies will be provided to students for critical examinations. This will help them to reflect on the ethical aspect of the problem and develop their own vision with regard to moral problems involved in business. In order to achieve this goal it is essential for students to take part in class discussions and reflect on various ethical issues. Interactive method will be adopted while delivering the lectures. Involvement of the students is necessary for a better understanding of the course. Clear understanding of the moral theories, will assist the students to analyze the articles/cases (given for discussion in the class) through the lenses of moral theories. Ultimately they will be able to see real-life cases in a new light and will find ethical analysis less wearisome in their work place.
Students will analyze the following cases in the class.
(*Available in the library Business Ethics case book(Yellow Spiral Binding))
CASES:
1. Parable of the Sadhu, by Bowen H. McCoy, Harvard Business Review , Sept - Oct 1983.
2. Why Good Managers make Bad Ethical Choices, Three cases are given here to illustrate the point.(i)MANVILLE CORPORTAION,(ii)CONTINENTAL ILLINOIS BANK and(iii)E.F HUTTON.
by Saul W. Gellerman in Andrews Kenneth R.(ed) Ethics in Practice: Managing the moral corporation, Harvard Business School Press, 1989. pp - 18 - 26. More details on these cases will be provided to students from other sources.
3. Marketing Infant Formula in Less Developed Countries.
Source: Hoffman and Moore, Business Ethics: Readings and Cases in Corporate Morality, McGraw Hill 1984. pp - 427-37
4. The Bhopal Tragedy
5. Toy Wars.
Sources: Case 4&5: Velasquez Manuel G. Business Ethics: Concepts; and Cases, Prentice Hall 1992, pp. 3 - 6, &pp. 433 - 437
6 Insider Trading: The HLL Case
7. Asian Paints: The Ethical Dimension
8. Product Re-call: The virtuous Behavior of Maruti Udyoga.

9. Tata Tea Funding ULFA:An Ethical Analysis
Source:These four Cases are developed by students of XIMB and moderated by Dr.B.P.Patra.The main sources of information were News Paper Articles and Business periodicals.
10. The Case of the Willful Whistle Blower
11. Burroughs Welcome and the pricing of AZT 12. Beach-Nut and No-Apple-Juice Apple Juice. 13. Prisoner's dilemma.
14. Moneylenders in the Temple:Calvi,Banco Ambrosiano. 15. Parable of Leadership(source:HBR,July-August,1992)
16. Waste Management Corporation
17. Arthur Andersen
18. Tyco
19. World Com.
20. Enron
Source: Monks and Minow, Corporate Governance, 3rd Edn., 2004, Blackwell Publishing
Text Book:
Velasquez, Manuel G. Business Ethics; Concepts and Cases, (6th edition) Pearson Education, 2006.
REFERENCE BOOKS:

Boatwright John R., Cases in Ethics and the conduct of Business , Prentice hall, Englewood Cliff, New Jersey 1995

Buchholz Rogene, A. Fundamental Concepts and problems in Business Ethics, Prentice Hall,
Eaglewood Cliffs, New Jersey, 1989.

Donaldson, Thomson & Werhane Patrica, H., Ethical Issues in Business : A philosophical
Approach, (Fourth Edition) Prentice Hall Englewood Cliff, New Jersey, 1993

George Richard T.De. Business ethics, (Third Edition) Macmillan Publishing Company New
York, 1990.

Frankena William K., Ethics, (Second Edition) Prentice Hall of India, New Delhi, 1973.

Sen., A. Ethics and Economics, Oxford University press, 1987.

Shaw William H. Business Ethics (4th edition), Thomson /Wordsworth,2002
Evaluation Criteria
Quizzes: 20%(there will be two quizzes)
Quizzes will be of objective type and will be based on lecture notes and class discussion.
Mid Term Examination 20%
The mid term examination (close book) will be subjective and will cover all the topics covered till the mid term.
End Term Examination: 30%
The final examination will involve analysis of small cases and few subjective questions.
Individual Assignment: 10%
The assignment consists of preparation of a written report (TERM PAPER, Case based) on ethical issues of management(e.g. Scam, Scandals, Whistle blowing, Sexual Harrasment,Mergers and Acquisitions, Workplace Safety,
Environmental Problems,Lay-off and Downsizing,etc).Students may take the help of the instructor to identify a suitable topic of research at the begining of the term.
Case Analysis and HBR, Articles Presentation(Group Presentation):15%: on “(i)Ethical Problems in Business, (ii)Deviant Business Practices and its Consequences”and (iii)Role of moral reasoning in Business Decision Making .
Case Presentation:All students within the group will be given the same mark on presentation
The evaluation will be based on:

1. Description of Case facts.
2. Use of moral theories
3. Clarity of thoughts
4. Handling of counter arguments
5. Understanding of underlying moral issues

Class Participation 5%

The nature of the course is such that much of the learning comes form the students’ participation in the class discussion. Basically it is a critical thinking class. Better understanding of the course is possible through your thoughtful deliberations in the class.
Attendance is compulsory.
Course Material:
The course will rely on the Text Book available in the library. For article review and case analysis each group will be given two spiral bound volume for the entire term by the instructor. One of the group members should take the responsibility of issue and return of the volume to the library. Additional reading materials and class notes will be provided to students through intranet.

TERM PAPER :( Assignment)
Last date for submission of topic and abstract: will be announced later
&
Last date for submission of final report

Guide lines:
The paper should be (Case Based )on ethical issues of management(e.g. Securities Scam, Whistle blowing, Sexual Harrasment,Mergers and Acquisitions, Workplace Safety, Environmental Problems, Lay-off and Downsizing, ethics in advertising,(e.g. can one play with the emotion of the customer, lack information , is it right to showing pictures which has nothing to do with the product),

The paper should be type-written (1.5 spaced) and between 5 and 10 pages in length
Type using a 12 point standard font, such as Times, Geneva, Bookman, Helvetica, etc.
Number pages consecutively
Start each new section on a new page
Adhere to recommended page limits (5 to 10 pages only)
List all literature cited in your paper, in alphabetical order, by first author.
When include a web site as a reference be careful because -anyone can put just about anything on a web site, and you have no way of knowing if it is truth or fiction
If you are citing an on line journal, use the journal citation (name, volume, year, page numbers)
Suppose your paper requires no references, in that case simply state that "no references were consulted."



All the Best!!!
Created By: Debasis Mohanty on 12/09/2009 at 01:33 PM
Category: PGP-I Doctype: Document

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