MGF5020 Tutorial 11 week 12

www.buseco.monash.edu

MGF5020Semester 2, 2014

Business Ethics in a Global Environment


Tutorial 11Week 12

REVISION

https://www.youtube.com/watch?v=YZf0Q-v3u-k




Our Discussion Today

1. Recap of the Exam Structure

2. Do’s and Don’t’s

3. Theories

4. Cases

5. Practice Part B

6. Questions


PART A: Choose any 2 questions out of 5

25 Marks each Spend approximately 45

minutes on each E.G.

Evaluate the strengths and weaknesses of Moral Decency Principle

Evaluate the strengths and weaknesses of Discourse Ethics

Compare and Contrast Kohlberg’s and Gilligan’s model of cognitive development.

GIVE EXAMPLES

Exam Structure

PART B: 1 Question, no choice

50 Marks Spend 90 minutes on this. Carefully read the case study Identify an ethical challenge with

cross-cultural dimensions in this scenario, and provide a literature-justified solution.

3 hours, 50 %, Two Parts, 100 Marks


Key Question Terms

Analyse: To find the main ideas, how they are related and why they are important.

Compare: To show both the differences and the similarities. Contrast: To compare by showing the differences. Describe: To write a detailed account or verbal picture in a logical

sequence or story form. Discuss: To present arguments for and against a point of view and

reach a conclusion. The arguments must be supported with appropriate evidence.

Tips on answering Part A


• Possible structure– Introduction: Definition– Body: Weaknesses/ Limitations and

Strengths– Examples– Conclusion

Tips on answering Part A


• Synopsis of case Main players, What is happening

• Identification of ethical issue What bothers me and Why? Identification of the cross cultural dimensions

• Overview of appropriate theoretical frameworks Main principles which you will be using for your

recommendations Why are you using these frameworks

• Application of frameworks to case• Course of action (practical)

How could issues be resolved (Literature from class)

• Conclusion/Refelction/learning

Tips on answering Part B


• How to write introduction: • This case discusses the impacts of Shell’s operations in

Nigeria. From the case I have identified ethical implications of these operations on the natural and social systems in Nigeria. These ethical implications have been exacerbated due to impacts of globalisation. In the following sections I will provide the background of the case and explain the ethical concerns. Furthermore I will apply the ethical principle of “post modern ethics” and “ethics of care” to provide a possible solution for the aforementioned concerns.



• When Identifying the Ethical Issue– Identify a broader issue: e.g. Corruption– Discuss its global/cross-cultural implications– Identify the specific acts in the case study– Give a rationale: why are these issues

ethical issues?• When giving recommendations

– Use Ethical Principles discussed in class– Explain the recommendations (HOW)– Specific to the case/ ethical concern



• Do’s– Writing examples– Underlining/

highlighting key terms– Writing an outline

before starting– Using an essay

format– Defining key

concepts and terms– New Answer new

page

• Don’t’s– Writing in bullet

points– Giving generic

recommendations like government should be responsible.

– Not answering the question


• Moral development– Kohlberg (Stages, Strengths &

Weaknesses)– Gilligan– Moral Autonomy

> organisational norms > conformity> groupthink> diffusion of responsibility

ETHICAL PRINCIPLES • Consequences– Egoism, Utilitarianism– incommensurability, Subjectivity,

The sacrifice of minorities, Equating lesser evil with greater good

• Justice: • Equality, Liberty, Rawls Justice theory• Distribution of Resources: Laissez-Faire

capitalism, socialism, Rawls’s 2 principles of Justice and Michael Walzer’s 'Spheres of Justice'

• Private and Public Ownership

• Duties and Rights• Deontology/Ethics of duty• Confucian & Kantian• Stakeholder and Shareholder• Rights: Employees

Communities• Human Rights and application to

Businesses

• Systemic Risk: • Donaldson:• Causes: paying for peril normalisation of

questionable behaviour, tech shock• Warning Signs: Experts are few, Innovation is

rapid, Hush prevails , Regulators are weak ,Critics are ignored, Too much is hidden


• Reaching Agreement• Discourse Ethics• Ideal Discourse• Good conversations• ISCT

ETHICAL PRINCIPLES

• Moral Identity, Virtues and Moral Decency

• Moral Character• What kind of a person I am.• Confucian Virtues• Ethical Leadership

• Empathy, Intuitions, Emotions

• Moral Response: Emotion = natural instinctive state in reaction to circumstances (feelings)

• Intuition = cognitive ability to use adaptive recognition unconsciously, gut feeling

• Hume: Emotions• Haidt:• Rationalist Model versus Social

Intitutionist Model


• Enron• Jeff Skilling, Andrew Fastow, Arthur

Anderson• Accounting Fraud and Corruption• Unethical Behaviour was

NORMALISED• Conflict of interest, short termism, role

of incentives, driven by Greed• Legal versus Ethical

CASES• A7D• Vandivier, Gretzinger, lawson• Faulty break• Organsaitional norms and

Organisational pressure• Regression of Moral development• Role of the context• Whistleblower

• Ford Pinto• Faulty engine in the car• Use of cost benefit analysis, putting

a $ value on human lives• Failure of Utilitarianism• Profit versus customer safety

• Others:• Walmart: employees, Labour

Wages• New Work Ethic: Relativism• Mental Models: Cultural Relativism


• Wal-Mart• Human Resource Management policies• Treatment of employees• Discrimination• Kantian Ethics, Stakeholder, Confucian

Ethics, Rights of Employees, Duties of the corporation

CASES• Shell in Nigeria• Impacts of Shells operations on the

Natural environment and community development in Nigeria.

• Pollution, inequality, totalitarian regime, rights violations, externalities

• Justice, Stakeholder, Rights, Ethics of Care

• Moral Identity Decency of Ken Saro Wiwa

• Whistleblowers• Greg Smith, Alwyn Johnson, Jane

Acre

• Sweat Shops debate• Nike, Adidas• Ian Maitland’s Argument• Treatment of employees• Developing country standards


• https://www.youtube.com/watch?v=u4l6ArtUlrk

Shell in Nigeria


Mary Lambert was an employee at Livescribe, a company that

manufactured disk drives for personal computers. She was a plant

manager at the Vietnamese Facility. She came to know that inventory

would be delivered at the Vietnamese facility and repackaged at an off-

site warehouse. One day she was inspecting the plant when she found

some boxes from the inventory which were soon to be send to the

warehouse. When she opened the boxes instead of disks she found they

were filled with scrap material, rubbish and bricks. Upon further

investigation she realised that these boxes of scrap were treated as

viable inventory on company books and that inter company shipments

were counted as sales. These were further entered into the financial

books and used to fabricate profit and drive share prices.

Identify an ethical challenge with cross-cultural dimensions in this

scenario, and provide a literature-justified solution.

Practice Question: Part B



Thank you!

THE END

GOOD LUCK and KILL IT!!

THANK YOU!