DCP12 Business Ethics Wk 1& 2

8/3/2019 DCP12 Business Ethics Wk 1& 2

1/11

1/26/20

Wk 1-2

Business Ethics

Wk 1-2

Business Ethics

Learning CoachDr. Mohan Lal Agarwal

Professor, MarketingIMT Dubai

Email:[email protected]

Mobile: (055) 6589767

Learning Agenda

1. About the course

2. Define ethics

3. Perspective variety on ethics

4. Ethical tests

5. Dilemmas

6. Whistle blowing

7. Bribery

8. Managerial implications

#1: Who am I?

Teach at such leading business schoolsas California State PolytechnicUniversity (USA), Bentley College(USA), University of Manitoba(Canada), Tec De Monterrey (Mexico),ESSEC Business School, Paris(France), Leicester Business School(UK), Southern Denmark University(Denmark), University of Queenslandand Bond University, Australia.

Taught at the IIM Calcutta, IIMLucknow, IIM Indore, MDI, IMT, XIM,SP Jain, XLRI Jamshedpur.

Invited for a professional interaction in anumber of countries including Australia,Austria, Belgium, Canada, Denmark,France, Finland, Germany, Holland,Hong Kong, Italy, Luxembourg, Male,Mexico, Nepal, Singapore, Switzerland,Sri Lanka, Taiwan, UAE, the UK and theUSA.

#1.1: Recent Teaching Awards

2011: Best Professor in Marketing Management in Asia,World Education forum, Dubai, UAE

2010: International Best Case Writing Award Winner,New Delhi, India

2009: Dean Recognition for outstanding teaching;University of Manitoba, Canada.

2008: Dean Recognition for outstanding teaching;University of Manitoba, Canada.

2006: Educator award, Lerner School of Business,University of Delaware, (USA), Nominated

2005: Master Teaching Award Marketing ManagementAssociation, USA, Nominated

2004: Distinguished Teaching Award, California StateUniversity, San Luis Obispo (USA).

2003: Most Outstanding Marketing Teaching Award,California State University, (USA).

2001: Ishan National Teaching Award, New Delhi (India).

2000: US Fulbright Fellowship (USA)

1993: Euro-India Cooperation and Exchange Program(France) Fellowship

1989: Association of Management Development Institutesin South Asia (AMDISA) Fellowship

1986: British Council Commonwealth Fellowship (UK)


2/11

1/26/20

#1.2: Learning Outcomes

It enables you to:

1. Demonstrate conceptual understanding ofthe ethical processes and principles.

2. Comprehend the real life case situations andapply the acquired knowledge.

3. Exhibit skills in managing ethical decisionsand situations in marketing, Finance,Operations and HR.

4. Understand the fundamentals and process of

contract.

#1.3: Modular Approach

Marketing Module test 20%

Accounting and Finance 20%

HR Module test 20%

Operations Module test 20%

Contract Module test 20%

Total 100%

#1.4: We will learn through

1. Conceptual inputs;

2. Class participation;

3. Guest speakers

4. TB Cases / Exercises;

5. Video case discussions

6. Web exercises

What is business ethics?


3/11

1/26/20

#1: Business Ethics

The application of general ethical concepts

to the unique situations confronted inbusiness.

It asks what is right or wrong behavior in

business and what principles or rules can

be used as guidance in business

situations.

#1.1: Two Characteristics

Tells people what they ought to do

Set of principles or rules

#1.2: Why Study Business Ethics?

Will not make you more ethical

Help in trying to do the right thing

Relativism Egoism

Utilitarianism Deontologism

#2: Concepts#2: Conceptsofof EthicsEthics


4/11

1/26/20

Concepts of Ethics

Developed by moral philosophers over

generations

Used to distinguish ethical from unethical

behavior

Each has problems

#2.1: Relativism

There is no universal standard by which

morality can be judged.

What is correct for one society may be

wrong for another.

Ethics and morality are relative.

#2.1a: Relativism - Problems

There are no absolutes - murder, slavery,

torture, rape OK

What is meant by a society?

Sub-societies

Leads to conclusion - each persons

opinion is correct

Nothing that anyone does is morally wrong

#2.2: Egoism

One ought to act in his or her own self

interest

Ethical behavior is that which promotes

ones own self interest

Does not mean should not obey laws -

only do so if in self interest


5/11

1/26/20

#2.2a: Egoism

Problem - Externalities associated with

private actions - OK to dump toxic wastesas long as dont get caught

#2.3: Utilitarianism

The morality of an action can be

determined by its consequences

An action is ethical if it promotes the

greatest good for the greatest number.

Example: Harry Truman and Decision toDrop Bomb on Japan

#2.3b: Problems with Utilitarian

ethics How do you quantify benefits and costs?

How do you value benefits and costs?

Can lead to unjust consequences

Restrictions against the majority to protect

a minority is not utilitarian

#2.4: Deontologism

Derived from the Greek word for Duty

Actions are not justified by their

consequences.

Factors other than good outcomes

determine the rightness of actions


6/11

1/26/20

#2.4a: Utilitarianism Vs.Deontologism

Utilitarianism - The ends justify the means

Deontologism - It is the means which areimportant

#2.5: Categorical Imperative

Developed by Immuel Kant

I ought never to act except in such a way

that I can.

Also will that my maxim should become a

universal law

Are you willing to permit everyone to adoptthe action?

Yes - Moral No - Immoral

#2.5b: Problems ofDeontologism?

Conflicts between duties

Utilitarians argue that secretly appeal to

consequences to demonstrate the

rightness of actions

#3: Ethical Tests


7/11

1/26/20

#3a: Ethical-Legal Test

Quadrant II

Ethical and Illegal

Quadrant IV

Unethical and Illegal

Quadrant I

Ethical and Legal

Quadrant III

Unethical and Legal

Ethical

Unethical

LegalIllegalCorporate

Decisions

Codification

Manifestation

#3a: Ethical-Legal Tests; Whichone is easy?

I Ethical - Legal

II Ethical - Illegal

III Unethical - Legal

IV Unethical - Illegal

#3b: Benefit Cost Test

2. Benefit Cost Test

Do the benefits exceed the costs towhomsoever they accrue?

#3c: Categorical Imperative

Categorical Imperative

Are you willing to allow everyone topractice the proposed action or do you

want to be a special case?


8/11

1/26/20

#3d: Light of Day Test

Light of Day Test

What would be your reaction if the action

were brought out into the open for

public scrutiny?

#3e: Do Unto Others Test

Do Unto Others Test

Golden Rule - If you would like others to do

the same to you - passes the test

#3f: Ventilation Test

6. Ventilation Test

Seek out others views. Discuss the 5tests with them. If others feel it is OK -

passes the test

#4: Ethical Dilemmas in Business

Conflict of Interest : Have two interests -

cannot purse one without having negativeimpact on other

Two Types : Private Interest Conflicts with

Corporate or Business Interest Conflicts

with Public


9/11

1/26/20

#5: Whistle-blowing

Act of disclosing wrongdoing in an

organization

Like blowing a whistle to call attention to a

thief

Types

Internal

External

#5a: Can Cause Bitterness inOrganization

Dissent- Must speak out against others in

organization

Breach of Loyalty- Perceived as one

who violates confidentiality and loyalty

Accusation -Singles out specific

individuals as threats to organization or

the public

#4b: Possible Retaliation

1. Fired

2. Blacklisted

3. Transferred to undesirable locations

4. Lifestyles, sex lives and mental stability

questioned

5. Physical abuse and murder possible

#5c: Failure to Reveal Wrongdoing

Severe problems for society or

organization

Can be implicated as an accessory before

or after the fact


10/11

1/26/20

#5d: Ethics of Whistle blowing

When is it ethical to reveal wrongdoing ?

When is it ethical to remain silent?

#5e: Cautious Approach toWhistle blowing

1. Make sure situation involves an imminent

threat to society or to the business

2. Document all allegations

3. Examine internal whistle blowing first

4. Should you remain anonymous?

5. Get another job first!!!

#6: Bribery

A payment, usually to a public official, to

induce that person to either do somethingimproper or to influence decisions or

actions

Extortion - same as bribery - recipient of

payment initiates transaction

More on bribery

Foreign Corrupt Practices Act of 1997

Grease payment allowed

Standard Practice in most foreigncountries

Results in lost business opportunities for

US companies

tax dollars may be used to pay bribe


11/11

1/26/20

#7: Bluffing and Deception

Negotiating a labor contract

Plant has experienced losses over past

several years - not clear why

Want concessions from labor

Tell labor that plant will be closed if no

concessions are made. In reality , no suchplans contemplated

Is This Ethical?

Managerial Implications ofbusiness ethics

Top Management Leadership

Organizational Culture

Realistic Goal Setting

Ethics Audit

Code of Ethics

Ethics Committee

Managerial Implications

Ethics Advocate

Whistle blowing Mechanism

Ethics Training

1-44

Thank You!

Dr. Mohan Lal Agarwal

Professor, Marketing

IMT Dubai

Email:[email protected]

Mobile: (055) 6589767

DCP12 Business Ethics Wk 1& 2

Documents

Transcript of DCP12 Business Ethics Wk 1& 2