Session-01 BUSS6066005_Ethics and Business

Page 1: Course Information

• Course Title: Business Ethics: Ethics and Business

• Session: 1

• Effective Period: February 2023

Page 2: Accreditation

• Institution: AACSB Accredited Binus University

• Binus Business School is recognized as an AACSB accredited school

  • AACSB International: Ensures the highest standards for business education

• Website: bbs.binus.ac.id

Page 3: Source Acknowledgment

• These slides are adapted from Hartman, L., DesJardins, J., & MacDonald, C. (2021).

• Title: Business Ethics: Decision Making for Personal Integrity & Social Responsibility. 5th Edition.

• Publisher: McGraw Hill, New York, USA.

• ISBN: 9781260260496

• Chapter Referenced: Chapter 1

Page 4: Learning Outcomes

• Learning Outcome 1 (LO 1): Identify the context of business ethics for personal and professional scenarios.

Page 5: Learning Outcomes (Detailed)

After studying this chapter, students should be able to:

• Define and explain:

  • Ethics and the Law

  • Business Ethics as Ethical Decision Making

  • Business Ethics as Personal Integrity and Social Responsibility

Page 6: Understanding Business Ethics

• Definition: Originates from the Greek word ethos, referring to cultural values, norms, beliefs, and expectations.

• Scope: Ethics examines how people ought to live and act, distinguishing from how they typically do.

• Focus Areas: Investigates ethical questions at individual, organizational, and social/political levels.

• Roles: As ethically responsible individuals, consider interactions as consumers, employees, managers, executives, and citizens.

Page 7: Goals of Business Ethics Classes

• Objectives:

  • Develop knowledge and skills to identify ethical issues.

  • Understand unethical behavior origins.

  • Decide actions and types of individuals we should strive to be.

  • Create ethical organizations.

  • Consider social, economic, and political policies as responsible citizens.

Page 8: Ethics and Law

• Importance of Law: Critical in guiding ethical decisions, and aligns with legal expectations and requirements.

• Key Conflict: Legal norms do not always equate to ethical standards. For example:

  • Respecting employees may be ethical but not legally required.

  • Legal actions like unjust terminations can ethically violate expected standards.

Page 9: Corporate Ethics Programs

• Ethics Officers: Many corporations hire ethics officers to manage corporate ethics programs effectively.

• Challenges: Much time is spent on legal compliance due to different environments across companies and industries.

Page 10: Limitations of Legal Compliance

• Ethical Shortcomings:

  • Legal compliance alone does not fulfill ethical duties.

  • Ethical responsibilities extend beyond legal minimums.

  • Laws may not cover all ethical dilemmas, leading to gaps in guidance.

  • Misconception that compliance alone is ethically sufficient.

Page 11: Corporate Scandals and Ethics

• Historical Context: Many scandals involved professionals justifying actions based on legal defenses.

• Risk Assessment Process: A critical component of ethical decision-making, involving considerations like:

  • Likelihood of court challenges

  • Probabilities of loss and settlement

  • Cost-benefit analyses

  • Ethical implications of actions taken

Page 12: Teaching Ethical Decision Making

• Goal of Education: Teaching students responsible thinking and deliberation.

• Philosophy: Ethical decision-making should stem from careful deliberation for more responsible actions.

• Focus Shift: While ethics is an extensive academic field, business ethics should prioritize ethical behavior over mere knowledge acquisition.

Page 13: Normative vs. Descriptive Ethics

• Definition of Ethics: Involves choices and behaviors.

• Normative Ethics: Concerns how we ought to act and sets norms for behavior.

  • Different from Descriptive Ethics, which simply observes and describes behavior rather than prescribing ideals.

Page 14: Personal Integrity and Social Responsibility

• Morality and Ethics: Morality refers to individual decision-making. Questions like:

  • "How should I live?"

  • "What kind of person should I be?"

• Concept of Integrity: Wholeness and alignment of actions with beliefs.

• Social Ethics: Focuses on communal well-being through norms across sectors (political, economic, civic).

Page 15: Standards and Values

• Norms: Defined as proper behavioral standards guidance influenced by ethics, etiquette, or economics.

• Values: Core beliefs guiding actions, impactful in areas like finance, religion, politics, and science.

• Ethical Values: Focus on impartiality and human well-being, comprising qualities such as respect, honesty, and health.

Page 16: Practical vs. Theoretical Reasoning

• Practical Reasoning: Pertains to actions and decisions about what should be done.

• Theoretical Reasoning: Seeks truth and beliefs, separate from the practice of ethics.

Page 17: Assignment Guidelines

• Prompts:

  • Discuss why laws are insufficient for ethical responsibilities.

  • Explore the benefits and costs associated with business ethics in individuals versus firms.

  • Research the recent oil spill news, assessing firms' ethical behaviors.

  • Analyze the motivations behind "ethical" activities and if publicity impacts ethical practices.

Page 18: References

• Cited Work:

  • Hartman, L., DesJardins, J., & MacDonald, C. (2021). Business Ethics: Decision Making for Personal Integrity & Social Responsibility. McGraw Hill.

  • ISBN: 9781260260496

Page 19: Closing Acknowledgment

• Thank You: Appreciation expressed for participation and engagement.