Business Ethics Term -III PGDBM I(2011-2013)

BUSINESS ETHICS
PGDBM -I (2011 - 2013) TERM-III
(27 December, 2011 -31 March, 2012)
Faculty: Dr.B.P.Patra, XIM, Bhubaneswar, E-mail:bibhu@ximb.ac.in
Mob: 9438303194; Phone: 0674-3983835(O)/3983869(R)

Many and varied are the paths to the summit of corporate greatness. One path is that of ethical business, involving issues such as: why there is a need for ethics in business; what moral principles are available to decision markers; how does moral development take place; how do we create an ethical culture in the organization; how can corporate management excel at business ethics even in a society that is not particularly ethical; and do business ethics have a cash value for the organization. Another path is that of corporate social responsibility: why must corporations step beyond profit maximization into such altruistic activities as sustainable development, community development, equal opportunity or meeting national priorities? Is corporate social responsibility a drain on profits or can it augment profitability? This notion (i.e. Corporate Social Responsibility) is based on the philosophy that business ought to give back to society and “give back to society” is a moral percept.
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/- crore fraud by the former 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 irrevocable damages to creditors, employees, and the share holders (particularly the small investor and community). The root cause of the problem lies in the ethical -break down of the organization.
The main aim of the course is to sensitize the students to different ethical issues involved in contemporary business. Students will learn how to maintain firm moral values while dealing with moral problems. This course is devoted to instill conceptual clarity of some basic moral conduct concepts like; right, wrong, good, bad, just, unjust, obligation, responsibility, virtue, vice and moral dilemmas and moral problems will be discussed through critical analysis. They will be able to understand moral theories and justify their action in a logical manner.

SESSION PLAN

SessionsTopic/ActivityProject Milestones

Session-1Introduction to Business Ethics
Adam Smith to Milton Friedman (Why Friedman was rejected?)
Reading: Ethics and Conduct of Business-Chapter.- 1PROJECT-RELATED GUIDELINES (Collect list of suggested topics.)

Session-2The Myth of Amoral Business
Are profits and ethics truly related?
Surviving and Thriving in Business.
[Video-The Eagle’s Secret, by: David McNeil]
Quiz related to the video

Session-3
(Student participation through case presentation Business ethics in practice
Some affirmative cases: Case discussion by students (Groups 1,2 & 3)
1. Johnson & Johnson and the Tylenol Affair,
2. Malden Mills and 3.Infosys Technologies

Session-4
(Student participation through case presentationBusiness ethics in practice
Some vicious cases: Case discussion by students (Groups 4,5 & 6)
1. The rise and fall of Arthur Andersen,
2. Enron and 3. Satyam Computer (negative cases)

Session-5
[Lecture]
Some conceptual clarifications:
Nature and scope of ethics., understanding moral conduct concepts
e.g. Fact and Value, Moral and Non-Moral Value Judgment, Morality and Law, PROJECT:Milestone-1 (Project abstract submission)

Unstructured ethics and rational ethics
Moral Development (Lawrence Kohlberg)

Session-6Understanding Ethical issues, dilemmas:
Yudhisthir, Draupadi, Arjun and Bhishama
Reading (prior to class): Difficulty of being Good by: Gurucharan Das
Video (in class): The Mahabharata–(From Bharat Ek Khoj Discovery of India, by:Jawaharlal Nehru
Ethical insight-1 and 2 (Class discussion following the video clip. It is expected that students will come prepared for meaningful discussion in the class.)

Session-7
(Lecture plus 2 case presentations by students)
The Individual within the Organization
Values, principles and virtues in human action: The Socratic Dictum
The Man in the Glass By: Dale Wimbro
Case discussion by students (Introductory Case:The Parable of the Sadhu)
Case: Why Good Managers Make Bad Ethical Choices? [Three caselets and four rationalizations: Manville Corporation, Continental Illinois Bank and E.F.Hutton] (Groups 7 & 8)

Session-8
[Lecture]An overview of mainstream ethical theories and their application
Practical rationality: Deontology, Immanuel Kant [ ET-1]
The Principle of Utility Teleology, J.Bentham and J.S.Mill[ET-2]
Ethical insight-3 & 4

Session-9
An overview of mainstream ethical theories and their application
The foundation of human character :Virtue Theory, Aristotle[ET-3]
Video - Character is Destiny

Business within the market economy: Justice and the Market System
Free and Perfect market, fare competition and Market regulations,
Ethics in practice: Case: 1.Marketing Infant Food Formula in LDCS
Case:2.ToyWars (Danner’s dilemma) (Groups 9 & 10)

Session-10
Frequent Ethical Violations in Business:
Morality of bribery and extortion
Business contracts, misappropriation and fraud; Conflicts of interest
Case:1-2G Spectrum Scam; 2-HLL Insider Trading,3-Ford and Firestone
(Groups 11 & 12)
Project:Milestone-2 (Mid-course review of projects. Deliverables: 2-page status report highlighting the work in progress)

Session-11
)Individual right and duty inside the firm: Whistle blowing
Responsibility, accountability and reliability
Judgments in Business (Clear conscience key to one’s moral strength),
Cases: Cynthia F. Cooper(WorldCom), Satyendra Dubey and S. Manjunath,
[Students could be selected randomly for presenting these cases]

Session-12 Ethical Leadership
The firm as a community of persons: Moral character in leadership
Serving and fostering a sense of service in others:
Wisdom from leading organizations
HBR Article: Level 5 of Leadership [HBR-January-2001],[ Discussion by Faculty]
Insight: Parable of Leadership[July-August-1992]Student presentation Groups 1,2,3,4,5[There are five stories on leadership and each group will present one story]

Session-13-14 National Conference on ‘Corporate Social Responsibility’
(For details see conference website :……) The conference has 3 main tracks: 1. Models of CSR Implementation, 2.CSR Implementation in Public Sector companies, 3. Emerging management Issues in CSR [Track-1 Students of Sec: A Track-2. Students of Sec: B, Track-3.Students of Sec: C

Session-15 Student presentations on CSR

(Groups/Individuals to be selected randomly for class presentation. However, report submission is mandatory for all.)
PROJRCT:
Milestone-3 (Packaged deliverables before final presentation Final report (6-10 pages); Presentation material including videos in CDs.

Session-16 Environmental Ethics: Bringing the Environment Down to Earth[HBRAugust-1999]
Biomedical Ethics :Discussion on: euthanasia, abortion, bio-banking and drug testing

Session-17 Ethics in Information Technology Cyber Ethics: Seven Short Cases Student presentation Groups 6,7,8,9,10,11and 12[There are seven cases on cyber ethics and each group will present one case]

Session-18 Relevance of Indian ethos and values for businesses participating in globalization.

Sessions-19 & 20 Final Project Presentations

� 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
Critical thinking is essential for both indvidual and organizational success.
Critical thinking helps to make decisions based on sound logic and reason
Critical thinking helps to improve quality of human thinking and enhancing quality of life
Critical thinking helps to weigh alternative systems and standards, assess alternatives, find out solutions to complex problems and ensures effective communicatione
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,Takeovers,Reputation Management, Layoffs &Downsizing,Risk taking(riskmanagement),Ethics of MNCs,Human rights,Truth telling in advertising,Patent issues, and Pricing policy,CEO Compensation,whistleblowing
Text Book:
Ethics and the Conduct of Business by John R. Boatright and Bibhu Prasan Patra, Pearson, 2011 (6th Edition)
Evaluation:
Quizzes - 20
Case Presentation-I (Group) -10
Case Presentation-II (Group) -5
Project (Group) – 10
Mid-Term – 20
End-Term – 35
Reference books:
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
The case evaluation will be based on:
1. Description of Case facts.
2. Understanding of underlying moral issues
3. Clarity of thoughts
4. Handling of counter arguments
All students within the group will be given the same mark on presentation
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 and for case analysis each group will be given one 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.
Class Notes:

BE Theories:

Quiz-I and Mid- Term Examination(Full marks :20 + 30=50(weightage 25%)
Date:12.2.2012
Time:9.00 am
Duration:1hr.40 mints.
Quiz Patern:MCQs and Mid -Term; Subjective
Portions:
Ethics and Economics
Ethics and Management
Ethics and Morality
Ethics and Law
Ethics and Business
Moral Development(Kohleberg)
Morality and Law
Moral Reasoning(Deontology,Teleology and Virtue Theory)
Myth of amoral business
Best of Luck