Business Issues and Ethics

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Nov 20, 2013 (3 years and 11 months ago)

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C.S. Lai 2009



B368 Business Issues and Ethics

B368

Business Issues and Ethics

Group 3 & 8

Tutorial 1


C.S. Lai

Oct. 2009

C.S. Lai 2009



B368 Business Issues and Ethics

Your choice of language:


English or Cantonese


C.S. Lai 2009



B368 Business Issues and Ethics

Welcome!


today’s agenda


Introduction




15 mins.


Ground rules, Q&A



15 mins.


Importance of Business Ethics

110 mins.


Break





10 mins.



TMAs





15 mins.


Q&A, Your Suggestions


15 mins.

C.S. Lai 2009



B368 Business Issues and Ethics

About me…


B.Sc. (Hons.) in Chemistry (CUHK)


M.Sc. in Engineering Business Management (Warwick)


Supply Chain & Procurement Manager of a multinational
pharmaceutical company


Please don’t call me Lai Sir, call me CS or Mr. Lai


To contact me:


Tel:
9807 5176

(Sun/Sat 20:00


22:00)


Please allow your caller’s ID to be displaced


Please leave a message in case the line is busy.


Please DON’T call during office hours (Mon.


Fri.).


Please DON’T call after 22:00, I should have slept already!


Email: t441653@ouhk.edu.hk

C.S. Lai 2009



B368 Business Issues and Ethics

About your Course Coordinator


Dr
. Matthew Yeung


Tel: 2768 6951


Office: A826


Email: myeung@ouhk.edu.hk

C.S. Lai 2009



B368 Business Issues and Ethics

My role as tutor…


Help everyone of you to complete this course


Telephone tutoring, face
-
to
-
face sessions, TMAs,


OUHK expects me to be a
manager

(of students’
time), a well informed and sensitive
counsellor

and
an effective
administrator

and NOT to “transmit
knowledge to your students”


“Lecturing for more than one third of the tutorial
time should be considered too much”

C.S. Lai 2009



B368 Business Issues and Ethics

About the Course Aims


Introduce the theories and practices of business
ethics.



The primary function is not to change students'
personal values; rather, it is to raise students'
awareness

of business ethical issues and to develop an
ethical mindset so that they
consider ethics

when
analysing business cases and making business
decisions

C.S. Lai 2009



B368 Business Issues and Ethics

Contents

The course covers the following topics:

1.
The importance of business ethics

2.
Making ethical business decisions

3.
Tools and techniques to manage business ethics

4.
Corporate issues and business ethics

5.
Stakeholder issues and business ethics

6.
The stakeholder society

C.S. Lai 2009



B368 Business Issues and Ethics

Assessments


4 tutorials


1 workshop


2 TMAs


1 Examination

C.S. Lai 2009



B368 Business Issues and Ethics

Please….


Speak out


Ask questions


Share your thoughts


Make mistakes…and…


Enjoy!


C.S. Lai 2009



B368 Business Issues and Ethics

One last thing…


Please ensure your phone doesn’t ring during
the tutorial


If you need to use your phone, please use the
area outside the classroom


Thanks!

C.S. Lai 2009



B368 Business Issues and Ethics

Introducing

Business Ethics

C.S. Lai 2009



B368 Business Issues and Ethics

Activity


What is
Business Ethics
? Please find some examples
that is within the scope of
Business Ethics
.


Why do you study this course?


How can this course help you in your career?

C.S. Lai 2009



B368 Business Issues and Ethics

Overview


What is business ethics?


Why is business ethics important?


Globalization: a key context for business
ethics?


Sustainability: a key goal for business ethics?


Europe: a key perspective on business ethics?

C.S. Lai 2009



B368 Business Issues and Ethics

What is business ethics?


Business ethics

is the study of business
situations, activities, and decisions where
issues of right and wrong are addressed.

C.S. Lai 2009



B368 Business Issues and Ethics

What is business ethics


Examples


The case of copy data files (individual employee)


The case of lax site supervision (management)


The case of pharmaceutical pricing (strategy)



Can you think of some more examples? What
are the ethical issues involved?

C.S. Lai 2009



B368 Business Issues and Ethics

Case Study (Ethical Dilemma 1)


Your friend is working in a bar;


He undercharges you whenever you drink
there.


Please discuss the questions in the textbook.


C.S. Lai 2009



B368 Business Issues and Ethics

Ethics and the law

Ethics

Law

grey


area

C.S. Lai 2009



B368 Business Issues and Ethics

Ethics in Action 1.1


Are certain products inherently unethical?
Why?


What are the reasons for the company being
an ethical or unethical organization?


If you’re the marketing manager of the
controversial product, how would you
suggest the product be marketed to highlight
their ethical qualities?

C.S. Lai 2009



B368 Business Issues and Ethics

Defining morality, ethics and ethical
theory


Morality

is concerned with the norms, values and
beliefs embedded in social processes which define
right and wrong for an individual or a community.


Ethics

is concerned with the study of morality and the
application of reason to elucidate specific rules and
principles that determine right and wrong for any
given situation.


These rules and principles are called
ethical theories
.

C.S. Lai 2009



B368 Business Issues and Ethics


…that can be
applied to
any situation
.


… to
produce
ethical

theory …


Ethics
rationalizes
morality …


Morality


Ethics


Ethical
theory

Potential
solutions to
ethical
problems

The relationship between morality, ethics
and ethical theory

C.S. Lai 2009



B368 Business Issues and Ethics

Why is business ethics important?

1.
Power and influence of business in society

2.
Potential to provide major contribution to society

3.
Potential to inflict harm

4.
Increasing demands from stakeholders

5.
Lack of business ethics education or training

6.
Continued occurrence of ethical infractions

7.
Evaluating different ways of managing business
ethics

8.
Interesting and rewarding

C.S. Lai 2009



B368 Business Issues and Ethics

Types of misconduct employees
observed among co
-
workers

Source: Ethics Resource Center (2005)

Type of Misconduct of Co
-
Workers

Percentage of employees
observing misconduct

abusive or intimidating behaviour towards employees

21%

lying to employees, customers, vendors, or the public

19%

a situation that places employee interests over
organization
al interests

18%

violations of safety regulations

16%

misreporting of actual time worked

16%

discrimination on the basis of race, colour, gender, age or
similar categories

12%

stealing or theft

11%

sexual harassment

9%


C.S. Lai 2009



B368 Business Issues and Ethics

Globalization: a key context for
business ethics?

C.S. Lai 2009



B368 Business Issues and Ethics

What is globalization?


According to Scholte (2000) globalization is not:


‘internationalization’


‘liberalization’


‘universalization’


‘westernization’


Globalization is: the progressive eroding of the
relevance of territorial bases for social, economic and
political activities, processes and relations


‘deterritorialization’

C.S. Lai 2009



B368 Business Issues and Ethics

Relevance of globalization for
business ethics



Cultural issues


Legal issues


Accountability issues



Globalization can affect all stakeholders of
the corporation

C.S. Lai 2009



B368 Business Issues and Ethics

Ethical impacts of globalization


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Shareholders


Globalization provides potential for greater profitability, but also greater risks. Lack of regulation of
global capital markets, leading to additional financial risks and instability
.

Emplo
yees


Corporations outsource production to developing countries in order to reduce costs in global
marketplace

this provides jobs but also raises the potential for exploitation of employees through
poor working conditions
.

Consumers


Global products prov
ide social benefits to consumers across the globe but may also meet protests
about cultural imperialism and westernization. Globalization can bring cheaper prices to customers,
but vulnerable consumers in developing countries may also face the possibility
of exploitation by
MNCs.

Suppliers and
Competitors

Suppliers in developing countries face regulation from MNCs through supply chain management.
Small scale indigenous competitors exposed to powerful global players
.


Civil society
(pressure groups,
NGOs, l
ocal
communities)

Global business activities brings the company in direct interaction to local communities with
possibility for erosion of traditional community life; globally active pressure groups emerge with aim to
“police“ the corporation in countries
where governments are weak and tolerant
.

Government and
regulation


Globalization weakens governments and increases the corporate responsibility for jobs, welfare,
maintenance of ethical standards, etc. Globalization also confronts governments with corpora
tions
from different cultural expectations about issues such as bribery, corruption, taxation, and
philanthropy.


C.S. Lai 2009



B368 Business Issues and Ethics

Sustainability: a key goal for
business ethics?

C.S. Lai 2009



B368 Business Issues and Ethics

Case Study

Ethics in Action 1.2


Fishing cod fish on a not sustainable source.


C.S. Lai 2009



B368 Business Issues and Ethics

Corporate commitments to
sustainability

Company

Sustainability Statement

Source


BP

“For BP, ‘sustainability’ means the capacity to endure as a group: by
renewing assets; creating and delivering better products and services that
meet the evolving needs of society; attracting successive generat
ions of
employees; contributing to a sustainable environment; and retaining the
trust and support of our customers, shareholders and the communities in
which we operate.”

Sustainability
Report, 2005

ICI

“The ICI Board is committed to the principles of sus
tainable development
… Why? Because we believe it is right, and because our stakeholders
expect it. They value our products and admire our creative talent; but they
also fear that our activities might have harmful effects.”

Sustainability
Report, 2005.


N
okia

“Nokia's vision of technology as an enabler of environmental
sustainability is based on a strategy of eco
-
efficiency and life cycle
thinking.”

www.nokia.com

Shell

“Contributing to sustainable development is part of our business
principles.”

The Shel
l Report,
2004.

Volkswagen

“The challenges facing society today can only be met by search and
decision
-
making processes that continuously re
-
balance the requirements
of economic performance, environmental protection and social justice…
For Volkswagen, su
stainability is the basis for policy as well as part of a
living, breathing corporate culture.”

http://www.volks
wagen
-
ag.de


C.S. Lai 2009



B368 Business Issues and Ethics

Defining sustainability


Sustainable development

is development that meets
the needs of the present without compromising the
ability of future generations to meet their own needs.
(World Commission on Environment and
Development 1987)



Sustainability

refers to the long
-
term maintenance of
systems according to environmental, economic and
social considerations

C.S. Lai 2009



B368 Business Issues and Ethics

The three components of
sustainability

Economic


Social


Environmental


C.S. Lai 2009



B368 Business Issues and Ethics

Activity


Think about the sustainability of current
transport systems. Are they sustainable? In
what aspects they are not sustainable?



How business ethics is related to
sustainability?


C.S. Lai 2009



B368 Business Issues and Ethics

Triple bottom line


Coined by John Elkington


Bottom line thinking suggests sustainability as
a goal


Three dimensions:


Environmental perspectives


Economic perspectives


Social perspectives

C.S. Lai 2009



B368 Business Issues and Ethics

Europe: a key perspective for
business ethics?

C.S. Lai 2009



B368 Business Issues and Ethics

European vs alternative approaches to
business ethics


Who is responsible for ethical conduct in
business?


Who is the key actor in business ethics?


What are the key ethical guidelines for ethical
behaviour?


What are the key issues in business ethics?


What is the most dominant stakeholder
management approach?

C.S. Lai 2009



B368 Business Issues and Ethics

Differences in business ethics
between Europe, the US & Asia


Europe

United States

Asia

Who is responsible
for ethical conduct
in business?

Social control by
the collective

The individual

Top management

Who is the key
actor in business
ethics?

Government, trade
unions, corporate
associations

The corporation

Govern
ment,
corporations

What are the key
guidelines for
ethical behaviour?

Negotiated legal
framework of
business

Corporate codes of
ethics

Managerial
discretion

What are the key
issues in business
ethics?

Social issues in
organizing the
framework of
business

Misconduct and
immorality in single
decisions situations

Corporate
governance and
accountability

What is the
dominant
stakeholder
management
approach?

Formalised multiple
stakeholder
approach

Focus on
shareholder value

Implicit multiple
stakeholder
appr
oach, benign
managerialism


C.S. Lai 2009



B368 Business Issues and Ethics

Summary


Definition of business ethics


Business ethics is vital for business in contemporary
capitalism


Global view is essential to understand ethical issues


Sustainability is an important goal for business
ethics


Europe has a distinctly different perspective on
business ethics issues


C.S. Lai 2009



B368 Business Issues and Ethics

About submitting TMA


By Post or by Online Submission.


Send your TMA well before the due dates.


You should submit each assignment by the cut
-
off
date. Late submissions cannot be accepted.


If you send by post, enclose the TMA form,
acknowledge card with stamp


Put down my CORRECT address


DON’T

use registered mail. I NORMALLY
IGNORE REGISTERED MAIL!

C.S. Lai 2009



B368 Business Issues and Ethics

TMAs


You MUST pass (i.e. +40%) BOTH assignments and final
examination in order to pass the course


Keep a copy of each assignment


TMA should arrive MY MAILBOX on / before the due
date


7 days extensions will NOT normally be granted,
unless you have GOOD reasons and with prior
permission.

(
Do you know the official procedure of requesting
extension?
)


OUHK does not accept postal loss as a reason for
extension

C.S. Lai 2009



B368 Business Issues and Ethics

Reminders…


TMA 1 due on
Nov.

27
, 200
9
.


Next meeting


Oct.

31

200
9

@ OUHK



C.S. Lai 2009



B368 Business Issues and Ethics

Enjoy the course…

and…

Good Luck


See you next time

To download this presentation:


http://alumni.cuhk.edu.hk/~cslai