Business Ethics

BUSINESS ETHICS LEARNING PORTFOLIO 2011 This learning portfolio is a summary of my learning journey of Business ethics in last four months. It is a formal academic document prepared with diverse events that I have learned from all the resources in and around me. By writing and presenting this portfolio, I have achieved the unit outcomes of Business Ethics 657. Deepak Kuriacose Student ID: 14211825 Unit Coordinator: Dr . David Pick 23/05/2011 BUSINESS ETHICS: Portfolio Navigation page Structure of My Portfolio

My Portfolio structured in such a way that each chapter starts with a particular concept on Business ethics which is followed by a particular piece of evidence in the form of case study, picture, video ,news article and so on. After reading the concepts and cases, the chapter ends with a reflection and critical analysis and is written under the heading my observation and summary. Since my report contains a number of cases based on the business ethics concepts, I would like to call my work with a title: “Concept and Cases”. CONCEPT AND CASES CHAPTERS 1.

Introduction to business ethics 2. Ethical issues in business 3. Ethical theories and how to use them 4. Individual response to ethical issues; personal values 5. Individual response to ethical situation 6. Individual response to ethical issues; whistle blowing 7. Business response to Ethical Issues: Corporate social responsibility 8. Business response to Ethical issues: Sustainability 9. Business responses to ethical issues: ethical codes and standards 10. The International Context: Global and Local Values 11. Moral Leadership 12. Conclusion 2 BUSINESS ETHICS: Portfolio Contents

My portfolio on BUSINESS ETHICS ……………………………………………………………………………………………. 4 Concepts and Cases ……………………………………………………………………………………………………………. 5 Chapter 1………………………………………………………………………………………………………………………………. 6 Introduction to Business Ethics…………………………………………………………………………………………….. Chapter 2…………………………………………………………………………………………………………………………….. 10 Ethical issues in business …………………………………………………………………………………………………… 10 Chapter 3…………………………………………………………………………………………………………………………….. 13 Ethical theories and how to use them …………………………………………………………………………………. 3 Chapter 4…………………………………………………………………………………………………………………………….. 18 Individual response to ethical issues; personal values …………………………………………………………… 18 Chapter 5…………………………………………………………………………………………………………………………….. 20 The Ethical Categories……………………………………………………………………………………………………….. 0 Chapter 6…………………………………………………………………………………………………………………………….. 22 Individual response to ethical issues; whistle blowing …………………………………………………………… 22 Chapter 7…………………………………………………………………………………………………………………………….. 24 Business response to Ethical Issues: Corporate social responsibility ……………………………………….. 4 Chapter 8…………………………………………………………………………………………………………………………….. 27 Business response to Ethical issues: Sustainability………………………………………………………………… 27 Chapter 9…………………………………………………………………………………………………………………………….. 31 Business responses to ethical issues: ethical codes and standards ………………………………………….. 1 Chapter 10…………………………………………………………………………………………………………………………… 35 The International Context: Global and Local Values………………………………………………………………. 35 Chapter 11…………………………………………………………………………………………………………………………… 38 Moral Leadership ……………………………………………………………………………………………………………… 8 Chapter 12…………………………………………………………………………………………………………………………… 40 Conclusion ………………………………………………………………….. …………………………………………………… 40 References ………………………………………………………………………………………………………………………….. 41 3 BUSINESS ETHICS: Portfolio My portfolio on BUSINESS ETHICS Introduction

As portfolio as a good way of assessing my learning, I am looking forward to present a type of portfolio which covers my understanding of Business ethics with the help of my lecturer. I would like to present this academic paper with the aid of text book- „Business ethics and values? by Colin Fisher and Alan Lovell. I found the portfolio writing as a reliable source of learning method which will be helpful in my career. So my portfolio will show my encounters of various issues and cases during each week of my learning inside and outside the class. Thus I would like to call my report with a title called “Concepts and Cases”.

The process of creating my portfolio will be interesting journey if I add more real life cases after each week? s concepts. This report will cover 12 weeks of Business ethics seminar topics. The following are the main topics that we discussed in the lectures: 1. Introduction to business ethics 2. Ethical issues in business 3. Ethical theories and how to use them 4. Individual response to ethical issues; personal values 5. Individual response to ethical situation 6. Individual response to ethical issues; whistle blowing 7. Business response to Ethical Issues: Corporate social responsibility 8.

Business response to Ethical issues: Sustainability 9. Business responses to ethical issues: ethical codes and standards 10. The International Context: Global and Local Values 11. Moral Leadership 12. Conclusion Defining the primary audience of my portfolio The reflective journal element of my portfolio will help me to address my primary audience of portfolio, the lecture and the others I want to share, about my thoughts on each sessions of my learning. This flexible documentation of my learning by learning portfolio will be helpful to analyse thoughtfully and then collaborate and communicate that with my unit coordinator.

The feedback from my lecturer is important that it will furnish my ideas after each submission. So from the assessment point of view the primary audience of this is my Lecturer but a better presentation of my ideas may extend me beyond this unit. 4 BUSINESS ETHICS: Portfolio What do I really mean by reflective writing to achieve my unit learning outcome? The whole 12 study weeks of our course, my lecturer covered 12 different topics related to the unit Business Ethics with an introduction to business ethics.

As I am not from a business background and not having any experience, it was relatively difficult for me to understand. The discussion and sharing of ideas with my friends in my class allowed me to go deep into the concept of Ethics. So as my unit coordinator said, it is my responsibility to monitor my learning with a habit of reflection as means of continuous learning. For this I have to plan, collect, select the content, reflect and analyse the cases to achieve my unit outline. By writing it and presenting it will give me a feeling that I have achieved the unit outcomes.

Concepts and Cases First of all, I would like to define a structure for my Portfolio. To my mind, as I said earlier Concepts and Cases would be a good title and the name itself will suggest the structure of my Portfolio. To address or to complete this unit successfully, I need to apply my thinking skills which is basically analytical skills to solve problems, information skills to invest new ideas, professional skills to work independently and as a team, share and accept valves the perspective of others all these will contribute to this portfolio: Concept And Cases.

The teaching resources and techniques used during the seminars helped me to understand these concepts clearly. The class room discussions helped me to reflect and think about the concepts. All these things are arranged in my portfolio with an orderly manner. 5 BUSINESS ETHICS: Portfolio Chapter 1 Introduction to Business Ethics Figure 1 “RIGHT WAY – WRONG WAY” Let me start the introduction of business ethics with a term called bribery. In simple words bribery is giving something such as money, offer or a promise to influence that persons view or conduct.

In business, to get a contract or for a new business deal people do bribery. Is it an unethical practise? There is only little point in telling at this point of time, what is ethically right or wrong, but as you go through the chapters the concepts will be clear. The essence or content of first week? s seminar was to understand basics of ethics and can be categorised as follows. ? ? ? ? ? Definition of ethics. How important is the study of ethics in business. Different perspectives on business ethics and values. How people should deal with the matters of ethics and morality.

Features stakeholder theory. Concepts Ethics is moral standard of a person on what is “right” and what is “wrong”. Business Ethics is the application of good and right or the study of practices and policies which are ethically “right” or “wrong” in business practises. (Jackson 1996,2). Why is it necessary? The business is something which busies one which such he or she should be responsible to them and to the society. This responsibility towards themselves and the society points out the importance of ethics. Thus understanding business ethics is so important that a person? 6 BUSINESS ETHICS: Portfolio ethical stance awareness affects almost every decision in a business and its learning can avoid its executives from ethics related mistakes and coping better in crisis situation. (Fisher and Lovell). The people and organisation deals with the matters of ethics and morality by looking at stories – romances, tragedies, comedies and satires , each of them can represent different kinds of business ethics issues. (Fisher and Lovell 2006,3). These can consider as perspectives to look into an ethical issue and the case1. example should be able to make it clear. Stakeholder theory The stakeholder theory is a simplest way of finding how different people affected differently by same unethical action. In simple words responsibilities to stakeholders is a major theme in business ethics. This unfolds three different questions related to ethics. 1) What responsibilities or duty does an organisation be obliged to its stake holders? 2) How should an organisation decide its obligations between to two or more stakeholders, if their demands are incompatible? ) What will justify a group of people being regarded as a stakeholder in an organisation? (Fischer and Lovell 2006,17). By answering these questions is an attempt to solve the ethical issues in that particular organisation. Cases 1. 1 (News report) Ethical problems in Business can be in different forms as stated above, sometimes as romance, sometimes as tragedies, sometimes as comedies and sometimes as satires. (Fischer and Lovell 2006,3). The case below helped me to understand how an ethical issue turned to different forms as mentioned above.

The BBC news reported this incident with this heading: “The head of an Indian auction website has been arrested over the sale of video clips of two Delhi school students engaged in a sexual act. ” Courtesy: BBC NEWS (http://news. bbc. co. uk/2/hi/south_asia/4105753. stm). The company, Bazee. com, Indian version of eBay, put a video of an Indian Girl engaged in a sexual act on sale and resulted into an uproar in India against the company. The boy who took the video and sold it the company was taken to juvenile court and the company CEO Mr. Avnish Bajaj, US citizen, was arrested.

Thus a mild comic event within the company turned to tragedy or a tale of prosperity for a time turn to misery. Then all dramas started with Indian Software industry association and American State Secretary Mrs. Condoleesa Rice called for immediate release for Mr. Bajaj and the whole issue turned to 7 BUSINESS ETHICS: Portfolio humiliation on an American citizen. Now the issue turned to an issue between the two countries. In the light of the above case one thing is clear, stories can be used as a mechanism to understand the issues and insightful knowledge of such situations can avoid to these bad endings.

Thus a comedy turned into tragedy because of improper ethical management and a proper one can avoid these issues. Case 1. 2 (News report) “Bad management’ led to BP disaster” Courtesy: BBC NEWS (http://www. bbc. co. uk/news/world-us-canada-12124830) After the oil spill disaster in gulf of Mexico, BP? s CEO Tony said “this was not our accident” and started blaming their stakeholders who did the concrete encasement in the rig as real culprits. Who is the real culprit, the company or the stake holders? I strongly believe that the incident was the result of strong unethical guidance or mismanagement from the company not its stakeholders.

Modern ethical theory emphasise the importance of stakeholders, in this case stake holders includes internal stakeholders such as management, shareholders and employees and external stakeholders such as nearby fishers, residents who rely on tourism, wildlife and so on. By looking deep into the issue, BP has hurt all of its stakeholders, internal stake holders and external stakeholders due to bad management. So company? s responsibility to its stakeholders is a major theme in Business Ethics. Observation and Summary The bribery mentioned in introduction is just one among a number of unethical practises.

The point whether bribery is ethical or unethical depends on the individual. The above journal addresses the issue of bribery in international business. The multinational companies pay bribes to win contracts, reduce import duties, or receive favourable interpretations. The research paper on bribery in international business says that bribery is accepted as a part of doing business when it cross boundary (international) whereas in domestic business it is not acceptable practise . This shows that bribery is ethical in international business but unethical in domestic business (Baughn et al. 010,91). The original intention behind that will justify the 8 BUSINESS ETHICS: Portfolio action and so what is right and what is wrong depends on that individual. Thus ethical issues are not easy to categorise. Integrity is another important concept which needs to be understood while discussing about business ethics. In case 1. 1 the company? s decision to sell the video under Indian scenario was completely against the cultural integrity of that nation. Such an issue affected the whole reputation of the company in India. Case 2. 2, BP? bad management and blaming the stakeholders with little insight badly affected the reputation. The integrity within the organisational life can be navigated and negotiated through dialogues, reflections, learning, tolerance and wisdom. (Fisher and Lovell 2006,33). 9 BUSINESS ETHICS: Portfolio Chapter 2 Ethical issues in business Figure 2 : Integrity, Commitment and Truth in business and management In week 2, we mainly discussed about the ethical and moral issues in the field of management, business and organisation. The main term that arises when we deal with ethical issues is „Good? and „Bad?.

In this part of my portfolio, I am trying to address this issue of what is good business practice and what is bad business practise. Concepts Two dimensions of Ethics are mentioned in this part one is good and bad and other is under the heading legal, illegal and just. Good and bad Morality is defined as a concern for justice which is to prevent wrongs and making restitution if the wrongs are done. (Greenberg and Ackoff 2011,5) . Morality differs by culture but ethics applies to everyone. For example, cheating is immoral in some culture but there are cultures like American Indian tribes it is moral.

I think, morality is a personal character where as ethics more concerned about society. (Greenberg and Ackoff 2011,5) . A best example to differentiate moral and ethics is to consider a criminal lawyer. A criminal lawyer though his personnel moral code finds murder as an immoral action but his ethics demands him to defend his accused client as strongly as possible. Degree of morality defines the whether the action is good or bad. 10 BUSINESS ETHICS: Portfolio Legal, illegal and just Following combinations of legality and justice are identified: ? ? ? ? Actions that are good and legal but not a legal obligation.

Actions those are wrong and illegal. Actions those are legal but not necessarily just. Actions that are just but illegal. These above patterns can be easily identified by looking into the different ethical issues around us. Many of the issues are morally wrong but ethically correct. The following case example helps to understand more about moral and ethics. Case 2. 1- Legal, but a not a legal obligation “Africa Aids drug trade dispute ends” Courtesy: BBC News (http://news. bbc. co. uk/2/hi/africa/450942. stm) The following is a drug issue happened in South Africa.

BBC reported the issue with the heading which is a great dispute between the drug companies and the South African government at the time of crisis. From the company? s point of view, they have the patent rights and can charge heavily on those drugs. The company argued that they channel most of the money for research and it is not affordable to sell the drugs at lower costs. On the other hand South African government proposed new law that would allow cheaper drug import. Here the action from the company is legal as they have the patent rights, but morally it? s not justice to the sick people of South Africa.

This case is come under social responsibility which is one of the varieties of business ethics issue. The company more than a business firm should act responsibly for the well being of the society. Case 2-illegal (News Report) “People were running past me screaming ‘Free money! Free money! ‘. ” Courtesy BBC News ( http://www. news. com. au/money/banking/computer-glitch-hits-cba-customers/storye6frfmcr-1226014261756) 11 BUSINESS ETHICS: Portfolio 100 of people in Sydney collected free cash from ATM and those who got the free money twitted and texted to their friends.

Is that a type of stealing or fraud? Police said that those who owned would be traced and could face up to 10 years jail for fraud. During the discussion inside the class on this case, one student raised a question of why is it considered as an unethical behaviour? The student said, “That? s not my fault, its Banks fault”. The case clearly suggests the people behave unethically when they think that it is not noticeable. The people who rushed to that ATM knew that what they are doing is illegal but they may well be justified by saying that it? s not their problem.

Thus the incident comes under the category of actions that are just but illegal. Observation and summary It is observed from the light of case examples many of the issues that cause difficulties and controversies in the business and the organisation are arguably wrong but legal. Here in Case 1. 2 drug dispute is caused by social irresponsibility of the company. They are legal in all perspectives except social responsibility. Ethically the company is wrong but morally they are right. The Case 1. 2 is a clear case of ignoring or disregarding the rights of others.

The people collected the money which is illegal which can be called as lying or dishonesty. So ethical issues arise on under each of these cases shows things that the law allows might not be right. 12 BUSINESS ETHICS: Portfolio Chapter 3 Ethical theories and how to use them The week 3 started with discussions regarding sense making and frame analysis, two individual concepts which are important in formulating ethical theories and also four approaches to ethical theory. (Weick, K. E. 2001,making Sense of the organisation Oxford: Blackwell Publishers. ).

Figure 3 : Process of making sense of an issue Concepts Sense Making was introduce by Weick, is a process by which different perspective of an issue is analysed and making a sense about that issue. Framing is another process closely to sense making mostly used to analyse controversial issues in an organisation or a business by focussing on multiple issues related to it. Sense making and frame analysis both are individual concepts but closely related. By framing an issue we can uncover and challenge the sense making which is employed in business to justify their behaviour.

The four ethical theories based on a framework are stated below and the task what i am going to do in this session to compare and contrast. ? ? Virtue Ethics Deontological ethics 13 BUSINESS ETHICS: Portfolio ? ? Ethical learning and growth Teleological ethics 1. Virtue Ethics I am starting with virtue ethics which has been very important in Business. Virtues are qualities of an individual to lead a good, noble, or happy life. Charity is a good example for a virtue. Being a Christian, Charity is one important virtue i have learned from my society.

This is highly individual and varies from person to person. Virtue ethics is a personal principle based on perspective which is not affected by any other people involved. Virtue Ethicists also give importance to intuitions and emotions. ( Domenec 2009,88) Aristotle? s thought is often considered as the base of virtue ethics. His thoughts are often considered as an essential ingredient for personal happiness. (Fisher and Lovell 2006) It emphasizes mostly on human dignity. It differs from person to person; some examples are courage, selfcontrol, liberality, patience, amiable, truthfulness, witty and so on.

Here each person is seen as a social being with intrinsic character and interdependence existence. In the light of all the above comments on the virtue ethics, if practised, virtue ethics offers an individual to make the right decision in any complex ethical situation. A real life case example will make these moral virtues more clear. The restaurant in which i am working as a manager is open at late nights and managing late have to serve drunken customers. The question is in such situation what virtue should manager show to the customer. According to Aristotle? moral virtue together with the concept of the customer always right will make me to face the situation with the virtue of patience by suppressing the irascibility. The customer on the other hand without self control may act greedily. Here patience showed to the customer is the virtue. 2. Deontological Ethics Deontological ethics is guided by universal principles of doing right thing which is irrespective of its effect on doers and receivers (Fisher and Lovell 2006, 109). Kant? s ethical philosophy on deontological ethics argued the importance of moral requirements and suggested a concept of categorical imperative.

Categorical Imperative = Categorical means unconditional + imperative means command. Thus Kant? s categorical imperative refers to command or principle that must be 14 BUSINESS ETHICS: Portfolio obeyed without any exception. (Fisher and Lovell 2006) The Ten Commandments in Old Testament is an example for categorical imperative. It proposes a theory in which everyone in world should follow. The universal Declaration of human rights is an example for deontological ethics in which they declared common standard for all people and all nations. . Ethical Learning and growth Ethical Learning and growth which is on the right of the quadrant focussed on policy based ethical approach encouraging people and organisations to learn and decide themselves to act ethically . (Fisher and Lovell 2006,119). Communitarianism and Egoism are two related themes under this quadrant. Egosim is nothing but an individual or an organisation changes their conduct by rational calculation of one? s own interest. ( Fisher and Lovell 2006,121). Here self interest must be pursued within the law.

Buyers and suppliers with opposing interest is an example for egoism with buyers want the lowest price and suppliers want the highest price. There is no right price, the buyer and the seller argue for their own reasons Communitarianism is an approach in ethics argues that people are social beings and they can grow and develop only through communities. (Fisher and Lovell 2006,122). The ethical learning and growth happen in these groups in places like churches, association, clubs and so on. 4. Teleological ethics The goodness of an action is only judged by its consequences not by its action. Fisher and Lovell 2006,125). Discourse ethics and utilitarianism are two other approaches one deals with debating to find the resolution where as other one arrives in decision according to the situation for an ethical issue. 15 BUSINESS ETHICS: Portfolio Case 1 Case Study to compare and contrast Virtue ethics and deontological ethics “Child Labour in factories in developing countries from two different perspectives” In order to produce cheap products, the multinational companies use child labour which became an international issue in the 1990? s.

The united nations convention on the rights of the child, and the international labour organisation„s declaration on fundamental Principles and rights at work( United nations 1989) condemn the use of child labour. Many of the international brands such as Nike, adidas have been subjected to public campaigns and scrutiny for employing children less than 14 years of age. Observation and summary The above case is a clear case of social responsibility that we discussed in last chapter. At Virtue Ethics context each child should entitle to get basic education till the age of 16.

Companies by employing these kids below 14 years of age denying the right of education by showing money and job. Thus virtue of knowledge denial is espoused in this case. Deontological ethics which is based on universal rights forced these companies and the government to introduce more stringent policy on employment age. Thus deontology is standard of doing the right thing with obligation. Thus Kant? s philosophy of universal ethics was carried out on the basis of United Nations rule. Teleological ethical view fundamentally makes decision on the basis of majority of satisfiers.

The common good is worked out through shared experience. These four ethical theories can be evaluated through framework by asking questions on proposed decision and plan of action based on positive and negative scores. If any item scores positive – accept the decision and reject the items with negative points. By looking into these ethical theories, it is quite clear that there are number of ways to tackle an issue. Concentrating on developing people„s moral values in decision making is one way of tackling. Virtue based ethical behaviour is one focus on moral values.

Looking business as a collective learning platform will build people? s ethical behaviour, for instance the behaviour development when people comes in social activities like clubs, sports which is more important than pre-packaged learning solutions. Applying sound moral principles from 16 BUSINESS ETHICS: Portfolio the light of experience of people and universality of standing ethically will also help to tackle the problems. To conclude this, a broader view is essential to tackle ethical issues in a business and one who is broader in decision will be successful in the end. 17 BUSINESS ETHICS: Portfolio Chapter 4

Individual response to ethical issues; personal values Figure 4 : Values, attitudes, beliefs and culture closely related terms Concepts Value, Attitudes and Beliefs Definitions in my words, the values are behavioural aspect of an individual or an organisation whereas attitudes are evaluation of particular things such as people, things, and places. A belief is an acceptance of something is true or not. Christian belief of Heaven and Hell is an example for belief. (Fisher and Lovell 2006) . Values and managerial behaviours can be divided under four main categories. 1. Prophets 2. Quietist 3. Subjectivist 4. Rhetorician

Prophets: They are managers always get focussed on their job and dictating others to think the way they think. We can call them as thinkers, who focussed on future consequences. Quietist: They are people always go with the flow. Never bothered about what others are doing. 18 BUSINESS ETHICS: Portfolio Subjectivist: They are doubters and question constantly. They are quiet annoying in most of the situations. Rhetorician: They never want to lose their side and enjoy debate to stay in the game. Observation and Summary In this part as a point of reflecting on the above concepts 2 main questions are raised in my mind. ) How values will emerge in an organisation? Values will emerge by sense making. There will be always a dispute between whether one should go for values or not. Enron executives justified their behaviour leaving behind many of the workers without pension and remuneration. The company collapsed mainly because of the behaviour executives drove the stock price up for making personal wealth. But the company justified their action by saying they did the tax evasion to save the company and it went other way around. They try to justify themselves by this type of sense making.

Thus people do change their values by sense making. On the other hand, ethically behaving companies set their values prior to their operation and work with the awareness of values. 2) What type of Managerial behaviour I have? I personally feel, my managerial behaviour is a combination of all. Each behaviour pattern has its own limitations, for instance, a prophet never pay attention to questioning voices which is not an ethical character. One should be open minded to get the ideas from the people and the good manager is one who implement the best out of it.

At times, quietist behaviour comes prominent in my management style. This disengagement character always helps me to stay away from unethical behaviour. For example, in a work atmosphere commenting negatively on senior managers and their policies may ruin the harmony but quietist nature always help me to work without bother about what? s happening around. So a balancer who has got all 4 above stances can be a good management style. Thus thinking into these 4 stances will be helpful for me in decision making. 19 BUSINESS ETHICS: Portfolio Chapter 5 The Ethical Categories

Concepts There are eight main ethical categories of responses and are as follows. 1. Ethical neutrality – people put ethical issues into this category when they say that nothing should be done about an issue that troubles them. 2. Ethical awareness – people feel uncomfortable with an action because it somehow offends their instinctively held values. 3. Ethical convention – it is thought that an issue can best be resolved through applying accepted norms. 4. Ethical puzzle – the issue is placed within a coherent moral framework and ignores the demands of alternative values and perspectives. . Ethical problem – the main characteristic of a problem is that there is no „one right answer?. 6. Ethical dilemma – involves difficult or unpleasant choices. Making a choice according to one set of rules or norms will break another set. 7. Ethical cynicism and caprice – all ethical issues will be resolved through meeting private and personal interests of those involved. 8. Ethical negotiation – searching for consensus or compromise between different positions. It is not about the rightness of a decision but with the correctness of the process used.

Case Study Attempt to explain these categories through Case Study (Harvard business review) “Fat Chance” by Bronwyn Fryer and Julia Kirby Summary of the case Sid Shawn is an employee of NMO financial services and a mainstay of the pension marketing group. He is an above average performer, good and consistent in his job. He is an invaluable resource for the sales people and consultants. He weighs 400 pounds. His manager Bill was doubtful about his capability a new position of consultant relations manager, sales 20 BUSINESS ETHICS: Portfolio and marketing.

Could he keep up with the job? s physical demands and fast pace? Bill started thinking of taking tough hiring decision. Observation and summary If Bill hire Sid for the new position by keeping quiet without considering obesity factor , then it come under the ethical category of ethical neutrality. Ethical awareness comes into action, if Bill conveys the truth and concerns about the new position to Sid and taking action with justice to Sid. The fast paced jobs need physical demands and if Bill apply the norms and conventions, then his response will come under Ethical conventions.

If bill stick to the rule that the job should go to the most experienced internal candidate by sticking to the policies, rules and procedures, the response will come under Ethical puzzle. Thus first four ethical categories of responses are most evident in this case example. It is evident from these stances that people may take different stances on an issue, depending on their conscience, ethical reasoning, perceptions of others and their actions. The choice of stance, for instance in the case of Bill will affect by conscience and perceptions of others, will vary from situations.

In order to take a good ethical decision we should be aware of best ethical stance suitable for that situation. 21 BUSINESS ETHICS: Portfolio Chapter 6 Individual response to ethical issues; whistle blowing Identify the Whistle blower Figure 5 : Whistle Blowers: a person who tells the public or someone in authority about alleged dishonest or illegal activities … Case 1 I am in a team and a player on my side fouls a player on the opposition, but the referee missed the incident. However one of my team mates brings the foul to the attention of the referee.

Case 2 Working in a company and a fellow employee releases a life threatening practise within the company to the press. The two cases mentioned above are related to whistle blowing under two different scenarios. Whistle blowing is defined as reporting of misconduct or potential harm or failure from within an organisation or after separation from it. (Grace and Cohen 2005). The whistle blowers often treated very badly in organisations and society. (Fisher and Lovell 2006, 263) Six conditions to justify the act of Whistle blowing 1. A product or policy of a business has the potential to do harm.

For example, Enron executive Sherron Watkinson alerted the CEO on corruption and tax evasion and de promoted from her position 2. The concerned employee should report the facts as they are known to their supervisor. 22 BUSINESS ETHICS: Portfolio 3. If their supervisor fails to act then the employee should take the matter to senior management and ensure that all internal processes have been exhausted. These days organisations have direct whistle blowing 4. The whistle blower must have documentary evidence that can be presented to external audiences 5.

The whistleblower must believe that their act of whistle blowing will cause the business to change as a result of their action 6. The whistleblower must be acting in good faith – not for revenge or malice Observation and Summary Whistle blowing is always considered as a way to reveal organisational malpractices. I had a bad experience of discrimination, when my supervisor giving favourable shifts to other employees and not to me. My concerns have been completely ignored and i lost confidence in working in that environment.

At that point of time, i am too scared to file a complaint to senior managers against the supervisor. This can be treated as an issue of racism as I am the only one outside the race. As stated above whistle blowers often treated badly, keeping that in mind and company? s confidentiality policy gave me the confidence to file a written complaint. That opened up the gate, so many issues not only my own others were also settled by the top officials after that. Thus I found whistle blowing as a helpline for raising ethical concerns and unacceptable practices.

It is also noted society should view whistle blowers as witnesses rather than snitches 23 BUSINESS ETHICS: Portfolio Chapter 7 Business response to Ethical Issues: Corporate social responsibility Figure 6 : Corporate social Responsibility … “Why do I have to….. ” http://www. google. com. au/imgres? imgurl=http://blog. acton. org/wpcontent/uploads/2010/02/polyp_cartoon_corporate_social_responsibility. jpg&imgrefurl=http://blog. acton. org/archives/14270-pope-benedict-and-true-corporate-social-responsibility. html&usg=__5I Concept

Corporate social responsibility has many definitions and one common definition is an organisation or a company? s commitment to operating in a way that it takes into account not only the financial decisions in the business, but also social and environmental impact as well. It is important for companies who looking beyond short term profits. It improves the brand value, quality of staff, improving sustainability of the business and so on. So it is nothing but the corporations need to be accountable and responsible to the stakeholders (Fisher and Lovell 2006).

What corporate social responsibility means for company? This is the answer for the man in the cartoon above. Economic growth of a company is largely depends on environmental and social well being. Investors, customers and employees which form the stakeholders think corporate social responsibility is essential for a sustainable business. 24 BUSINESS ETHICS: Portfolio Corporate governance is a relationship based corporate governing practise with virtues such as integrity, honesty, objectivity, justice and is build upon trust for accountability and transparency of a corporate (Francis 2000).

Its application also include efficient decision making , appropriate allocation of resource, strategic planning and so on to promote a ethical climate in an organisation. ( Francis 2000). Corporate governance signifies that the ethical behaviour must start from the top level and should carried into the lower level of the organisation. Case 1– Corporate Social Responsibility in action – AMWAY (Amway CSR report 2001) Amway is one of the world? s biggest worldwide direct sales organizations with more than 3 million Independent Business Owners.

Most of the independent business owners are family owned often run by couples. So the company has strong emphasis on family values and children. Case study of Amway is a good example of corporate social responsibility with company? s partnership with UNICEF, the United Nations Children? s Fund. This mutual beneficial arrangement or business partnership lead the company to generate extra profit and reputation as a socially responsible business. „Priorities for Children program? of UNICEF to eradicate child killing diseases was supported by Amway staff and IBOs around 25 European Markets.

Amway collected the money from four sources : 1) corporate donations,2)Staff Donations,3)Sales of UNICEF greeting Cards and 4) Donation from IBOs. The company facilitated special gateway to allow its stakeholders to contribute to Charity. Within first few years of this partnership, Amway contributed 1 million Euro to UNICEF and largely influenced the buying decision of the customers their by profit for the company. Thus Amway? s success is careful planning of business strategy along with its stakeholders.

Case 2-Failure of Corporate Governance: The WorldCom Collapse A series of corporate scandals are seen in the year 2002 and the WorldCom collapse was one among them. It was a clear case of failure in corporate governance and unethical behavior. A massive accounting irregularity leads the world? s second largest telecommunication company, WorldCom into bankruptcy. The careers of those senior management officials ended in criminal prosecution and legal allegations. What happened to WorldCom? 25 BUSINESS ETHICS: Portfolio

Observation and Summary The term corporate social responsibility (CSR) is clear from the Amway? s case which emphasized on the importance of business-society relationship. This concept is keep on changing its name beyond its original idea of social commitment to other folds such as corporate governance and corporate citizenship. The notion of implementing CSR and Ethical performance in corporate field is so relevant in this new era to utilize look term benefits, but the question is are they doing this just for financial gains or are they socially responsible.

Most of the cases, big companies use CSR for getting competitive advantage over their competitors. The small companies which were not following CSR policies, always have a disadvantage to compete with big corporate. Moreover, small companies always facing problem on putting money for CSR activities. For big companies like Amway, allocating money for CSR is investing money to gain more customers and stakeholders but not practical for small companies with limited stakeholders.

From ethical perspective, from the case of Amway is making a difference in business world by social committed with humanitarian works as their business strategy. The large private corporation fits oddly into democratic theory and vision. Indeed it does not fit? (Lindblom , 1997). Here from the statement Lindbolm points out the corporategovernment lobbying. President G. W Bush received $7 million during his election campaign from a tobacco company is a good example for corporate government lobbying which is a threat for social responsibility.

In return President Bush removed the federal lawsuit against cigarette manufactures within three months of his term in 2001(Fisher and Lovell 2006,299). What happened to WorldCom? The question mentioned above has only one answer which is culture of greed from top management which is a pure case of failure to fulfil the obligations to stakeholders and lack of transparency. WorldCom raise the issue of values and beliefs as an clear consideration of corporate governance. The value of trust, corporate accountability, fairness and balance, honesty, dignity and so on can avoid collapse of WorldCom.

Corporate governance can gain investors confidence which will equip companies to go globally. In the light of the cases, I think when it? s come to CSR and corporate governance, it is hard to prescribe a guideline but it works only with practical recommendations and considerations 26 BUSINESS ETHICS: Portfolio Chapter 8 Business response to Ethical issues: Sustainability Figure 7 : Sustainability and its 3 pillars… Concept Sustainability has become one of the key concept or an idea of living, manufacturing systems or a way of life.

In fact there are so many ways in which people trying to define sustainability and during the 96th plenary meeting of United nations general assembly defined sustainability as meeting the needs of the present without compromising the ability of future generations to meet their own needs (United Nations 1987). UN urges countries to follow sustainability as a central guiding principle of the United Nations, Governments and private institutions, organizations and enterprises. There is no question about ignoring sustainability in operating a business.

It is quite clear that business have ethical responsibility towards environment in addition to its responsibility towards socio-economic factors. The term sustainability closely related to CSR and Corporate responsibility which is a need to build a for long term reputation for a company. Levi? s, Saturn cars, Dick Smith electronics, Proctor and Gamble, Johnson & Johnson and the Body shop are all benefited by doing sustainable business practises( Grace and Cohen 2008). Nestle, Shell Nike , Union Carbide, Exxon are examples for companies damaged their reputation by doing socially irresponsible business practises. 7 BUSINESS ETHICS: Portfolio Case 1 Shell & Green peace ( Grace and Cohen 2008) Environmental groups including green peace campaigned against Shell petroleum over the disposal of its obsolete Brent Spar oil rig. The group campaign include boycott of Shell petrol, demonstrations and publicity offensives. This public opposition forced Shell to move the rig to Norway and generated a strong image of ethically responsible corporation even though green peace and campaigners were mistakenly respond to the Brent Spar disposal, which is less hazardous.

Case 2: Campaign against the most sustainable bank in Australia: ANZ http://www. abc. net. au/news/video/2010/10/18/3041760. htm Transcript of the ABC news report : “One of Australia’s biggest banks, ANZ, i s about to become the target of a green protest campaign, even though earlier this year Dow Jones named it the most sustainable bank globally. Greenpeace is taking on ANZ over its role as the leading financier of the coal industry and coal-fired power stations. ” Case 3: Arctic ice ‘disappearing quickly? and How the world is changing: News article http://news. bbc. co. uk/1/hi/sci/tech/4290340. tm# According to new data released by the US scientists, the sea ice covered area shrunk every year in an alarming rate. The human induced global warming is the reason for this shrinkage. 28 BUSINESS ETHICS: Portfolio How the world is changing http://news. bbc. co. uk/1/shared/spl/hi/picture_gallery/05/sci_nat_how_the_world_is_changing /html/1. stm Observation and Summary In the beginning sustainability was a hot topic used more in the context of social and economic activities and in the context of depletion of environmental resources. Is our environment precious and how many of us are bothered about Global warming.

Now its high time for us to think and act wisely for our environment. Protecting our environment for our future generations will come under the values and ethics of change in business practises. The business world, who consider consumer as their God worried about the consequence of price tag if they go for sustainable business practises. The above four cases are related to environmental sustainability with the first two of them concern with the urgency of public and business corporate towards environmental sustainability. Are we over reacted and over estimated on both occasions?

The other two cases are showing its consequences, global warming and arctic ice shrinkage from ethical perspective, this point out to a change in collective and individual behavioural practises to protect our nature for future generation. It is often, we compromise this environmental perspective to carryout big project proposals or developments to satisfy our timely need or rational self interest, for instance, cutting of forest land for building infrastructure development, improper waste management and disposal and so on. It is about making choices 29 BUSINESS ETHICS: Portfolio or the benefits of our future generation by denying some benefits of the present. The political leadership and the citizens of a country should make a clear stand by showing support only to the sustainable business practises to cope with rising global warming, global crises of poverty ,child labour, green house emission and so on. 30 BUSINESS ETHICS: Portfolio Chapter 9 Business responses to ethical issues: ethical codes and standards Concept Ethical Code and Standards Code of ethics: Code of ethics often refers to social issues such as organisations belief on its mission, quality, privacy, and environment and so on.

Code of Conduct: Code of ethics refers to the behaviour of employees such as procedures to be used in different ethical circumstances. (Grace and Cohen 2008,181)The effectiveness of both depends upon the extent of management support with sanctions and rewards ( Fisher and Lovell 2006,378). The following are some of the ways in which an organisation can influence the code of conduct and ethics. ? ? ? ? ? ? ? ? ? ? Training Story telling Reward system Monitoring systems Communication channels Job design Ethics officers Information systems Recruitment and selection policies and processes and Organisational strategies

Purpose of code of conduct/ethics Fisher and Lovell have listed eight roles for corporate code. These are: o Damage limitation-to reduce damage from negligence by its employees o Guidance-A reference point or a role model to face ethically complex situation o Regulation-prescribing and proscribing roles o Discipline and appeal-as a benchmark for an organisation to decide an employee? s code of conduct o Information -a code express to external audience o Proclamation-proclaiming the standard for public concern o Negotiation: code can be used as tool for negotiation. 1 BUSINESS ETHICS: Portfolio o Stifling: this creation of internal procedures for handing ethical issues Case 1: In U. S. , Nurses at Top of Ethics List, Lobbyists at Bottom “Gallup Editor in Chief Frank Newport reveals Americans’ list of the most and least honest and ethical professions” http://www. youtube. com/watch? v=BinGMLIIeQw Gallup? s 2010, recent survey on America? s most ethical jobs found the following results: 1. Nurses : 81% surveyed rate them very highly on honesty and ethics 2. Military Officers : 73% 3. Druggists or pharmacists:71% 4.

High school teachers:67% 5. Medical doctors 66% Observation on the above survey The survey above reveals that the average Americans have more faith in Nurses than Doctors. Why is that? Gallop? s survey was based on telephone interview with more 32 BUSINESS ETHICS: Portfolio than 500 adults. Americans found Nurses with more honesty and ethical in doing their job and 81% voted them. Medical doctors got only 5th position which is largely because the Americans lost their trust and faith in recent years. The Lobbyist and car sellers who are less honest in their deals are n the bottom with 7% and 9% respectively. These people are considered as less honest and hide the real price to cheat people. Case 2: Honey well – an ethical culture (Grace and Cohen 2008, 193) Honey Well, US based corporation, is a fortune 100 company proud of their company? s strong reputation on code of conduct and value. The company grown largely through acquisition, by assuring all they come in contact with an ethical culture and enhanced value relationship. The company? s code of conduct is a 36 page document published in company? corporate website to guide employees and anyone enter into relationship with the company. Honeywell? s code of business ethics and conduct comes with a message from its chairman and traces back to the company? s ethical culture and explains the observance of code is mandatory. “We clearly want to succeed, but never at the expense of integrity” (Grace and Cohen 2008, 193) Observation and Summary The code of practise and conduct is necessary for an organisation to show their trust, integrity and reliability to its stakeholders.

It is a true fact that people will not behave ethically and morally without fear of retribution. This keeps the people to work under the rules and leading them to morality. Secondly ethical codes enable organizations to build trust. The trust in relationship is necessary to create value and responsibility. The greatest lesson that i learned from throughout the portfolio is poor ethics has been the leading killer of organizations. Honey well case study is a good example for the enhanced relationship ethics through code of conduct and values.

The lessons learned from Honeywell? s code of Business conduct are as follows. The company? s code of conduct includes relevant areas of the code to suppliers which gives assurance for the suppliers on maintaining accurate books and records, protection of environment, not to employ child or forced labour and long term 33 BUSINESS ETHICS: Portfolio relationships. Some ideas that can be used to develop ethical culture are establishing an ethical officer or ethical committee, ethical training programs for all staffs including top to bottom level, implementing channels o report unethical practises and so on. It is also advisable not to put staff under competitive pressure which can motivate unethical conduct. 34 BUSINESS ETHICS: Portfolio Chapter 10 The International Context: Global and Local Values Concepts Ethical and business values of differ from countries and societies. Each country or society has their own distinct values and ethical standards and this assumption is known as Essentialism. According to this theory a nations or societies values and ethical standards change only slowly.

There have been attempts to unify and codify the ethical norms and values. One such attempt is the Universal Declaration of Human rights by United Nations (United Nations 1948) ? ? ? ? ? ? ? not to be held in slavery not to be subjected to torture or degrading treatment to equality before the law To a standard of living adequate for the well being of self and family. To work and to just and favourable conditions of work. To equal pay for equal work To rest and leisure and periodic holidays with pay. (Fisher and Lovell 2006,423)

According to Geert Hoftead vales and ethics of organisation and employees varies in different countries based on four dimensions. ? ? ? ? Power Distance Individualism Masculinity Uncertainty avoidance According to Transparency International and corruption perception index (CPI), Australia is evaluated as the best in terms of business being least likely to offer bribes and Finland as least corrupted country in the world. 35 BUSINESS ETHICS: Portfolio Case 1: Nike „Sweatshop? allegation (Grace and Cohen 2008) Figure 8 : NIKE SWEAT SHOP..

Women in Slavery.. Cultural difference does not imply its acceptability; civilised interaction is respect for person. Nike, leading footwear manufacture humiliate women and children, force them to kneel and work for more than 12hrs by intentionally placing the factories in cultures where unions are weak. Employees worked an average of 11. 5 hours a day and forced them to work seven days a week and most of them where under age includes girls less than 11 years of age. This is a clear case of offshore business unethical practise. Case 2: „The Shakedown?

Harvard Business review case study http://studentoffortune. com/question/636764/utkarsh23-only/1073472-Shakedown. pdf 36 BUSINESS ETHICS: Portfolio This case cast an American entrepreneur thinking about paying money or to bribe in Ukraine where he started an enterprise which is another case of international business dealing with unethical practises like corruption and bribery in host country while being ethical in home country. Observation and Summary The companies working in international scenario has to deal with different values and ethical standards.

The ethical standards are so diverse that one cannot simply go and start a business in international market. The code of conduct, code of ethics, behavioural mannerisms and so on depends on the culture of that particular country, for instance Muslim countries like Egypt, Iraq, Kuwait, Lebanon, Libya, Saudi Arabia, and the United Arab Emirates have high power distance that the leaders separated themselves from the civil society. So a manager who makes sense of the world? s diversity of values can only survive in dealing with these circumstances.

The theory of sense making discussed earlier will be helpful in this situation. It is necessary for international organizations to learn and open to multicultural society. The learning process is mutual and is continuous to make moral judgements to meet the business standards they are working in. In the light of the concepts and cases, universal standards which have been written for international business are not universally accepted. United Nations and other human rights agencies working on universal human rights standards but it is violating mostly in less developed countries.

Most of the management and business theories formulated from American context and it is seen that the MNC? s going out from this part is violating the human rights and ethics in international business. In whatever circumstances a company should accept the local values and practises, for instance international fast food outlets like MacDonald? s strictly following the Muslim culture of serving the customer with HALAL meat in countries like UAE and Saudi Arabia. Globalisation is not for exploiting the weak countries, as in the case of Nike, but to bring the weak countries up socially and economically. 7 BUSINESS ETHICS: Portfolio Chapter 11 Moral Leadership Concept There is no definition for moral leadership but it is a fact that lack of moral leadership is main reason for unethical behaviour at all levels of our society. “The Leader always sets the trait for others to follow” The following are some the attributes that makes a moral leader: • • • • • • • • • • Vision Self motivation Imaginative power Foresightedness Leadership Sense of practicality Commitment towards work Consistency Good communication skills Integrity towards the profession 38

BUSINESS ETHICS: Portfolio “Along with the above attributes he should be socially, ethically and environmentally responsible” Observation and Summary For me, a good leader is one who is well aware of moral and immoral activities and pay attention only on ethical and value based business. He is also one who pays attention to all direct and indirect stakeholders which include investors, partners,