Managerial Ethics and Corporate Citizenship

MBA Summer 2014 Course Description and overview

Occurrence of a significant number of corporate scandals over the past few years has powerfully reinforced the centrality of ethical behavior in governing business organizations. The crises of Satyam, Enron, Arthur Anderson, WorldCom, to name a few, have focused sustained attention on the issue of ethical governance, as also on the belief that for long term survival, any economic system requires a moral component. Business Ethics basically deals with the questions of human values, meaning of life and the means and ends issues. It is about being able to clearly discern the ethical aspect of managerial choices and making thoughtful judgements in complex business situations. How a company is governed influences rights and relationships among organizational stakeholders, and ultimately how an organization is managed.

The objectives of this Course are: To understand what influences come to bear on ethical decision making; To encourage a broad view of life in business through stimulating moral imagination,

and heightening sensitivity to the ethical dimension of managerial problems; and, To strengthen the ability to appropriately respond to them. Besides, this course teaches the fundamentals of Corporate Governance from a

variety of angles – the board of directors, senior management, investors, regulator and other stakeholders – and focuses on assessing the effectiveness and execution of governance roles and responsibilities.

The Course will provide opportunities for reflection and discussions on how ethics intersects with governance from an organizational and institutional point of view.

In achieving the Course objectives, business situations of ethical complexity at three levels (as below) – ethical underpinnings of business as an activity will be discussed.

1. personal and professional commitments; 2. organizational conduct; and 3. the social

It will draw on a variety of materials: short films, Readings and business Case studies. Selected pieces from literature (stories, plays) dealing with ethical issues, conflicts, paradoxes, and dilemmas will also be used as an important supplement for addressing ethical ambiguities of both, business and personal life.

Evaluation:Class participation/ Case Presentations 40%Final Examination 60%

1

Class participation

Active class participation would be a critical component of this course, and will include preparation by reading what is assigned, raising questions and making comments. Students will be expected to access the Internet for some assigned readings linked to the course- outline

Criteria for the evaluation of Presentations will be as follows:

- To what extent the presentation reflected students knowledge of relevant aspects of the topic

- To what extent the presentation was well organized- Effective time management- To what extent Introduction and Summary were clear and effective- To what extent the group’s interaction with class was engaging and questions

were answered clearly- Whether audio-visual resources were used effectively

Text Book : Corporate Governance – Theory & Practice, by Anil Kumar, International Book House, India

Additional Texts and ReadingsEthics in Business and Corporate governance by S K Mandal, Tata Mcgraw HillThe Difficulty of Being Good by Gurcharan DasBusiness Ethics: Concepts and Cases, by Manuel G. Velasquez , HPIBusiness Ethics: Andrew Craine & Dirk Matten, OxfordBusiness Ethics and Corporate Governance: A C Fernando, PearsonCorporate Governance: Bob Tricker, OxfordBusiness and Society: Archie B Carroll & Ann K Buchholtz

JournalsJournal of Business EthicsEthics QuarterlyHarvard Business Review

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Schedule of Topics / Sessions

Topic Readings / Supporting Material

1-2

3-4-5

Introduction: Business Ethics & Corporate Governance

BUSINESS ETHICS: Approaches

Descriptive versus Normative EthicsMajor Approaches to Business EthicsThe Conventional Approach to Business Ethics Ethics and the LawMaking Ethical Judgments

PERSONAL AND ORGANISATIONAL ETHICS

Ethical issues at different levels Principles approach to ethics:Consequence-based, Duty and Rights- basedJustice principle, Ethics of care, Virtue ethicsEthical test approach:Test of disclosureOther tests

a.

Business Ethics : Concepts and Cases by Manual G. Velasquez, Chap 1 (3-50)

- HBR article : Is Buffing in Business Ethical? By Albert Carr- Business is not a game: article by Hamington

- Velasquez, Chap 2 (57-108) HBR article :’ Why be honest if honesty doesn’t pay’ by A Bhide & H Stevenson Cases : Satyadas ; by Bimal Kar (short story) How much land does a man need? by Leo Tolstoy (short story)

6-7-8 Ethical Leadership & Decision-Making Processes :Factors affecting organisation’s moral climateMoral Development and Moral Reasoningorganizational factors : Culture and relationships

HBR article : Why “Good Managers Make Bad Ethical Choices” by: GellermanCases: The Enemy’ by Pearl S Buck (story)HBR Case Study : The Parable of The Sadhu

9-10 Ethical Issues and Dilemmas : International businessWhistle- blowingManaging ethics in organizations

HBR article: Values in Tension By T. Donaldson HBR Case Study : The case of the Wilful Whistle- Blower

3

11

Corporate Governance: Meaning & significance Governance & management Good governance

Text Book : Chapter 1

12-13

Evolution of corporate governance: Theories, philosophies and models

T B Chapters 2, 5 & 8

14-15-16

Structures of Corporate Governance

Board structures & CommitteesFunctions of the Board

T B Chapter 3 & 4Case: Enron

17 Role of Independent Directors Case:Maxwell communications, T B, page 104

18Corporate Governance Codes:

Codes in India & other countries

T B Chap 7 Case : Tyco International ( T B page 97 )

19 Corporate social responsibility and sustainability :New expectations in CG

Corporate Governance: Ticker Oxford, Chap 15 Case : :Johnson & Johnson

20

Corporate governance: emerging issues Reflection & summing up

T B Chap 12

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