Transcript Teaching Business Ethics

Teaching Business Ethics
Laura Pinto
Ethics: Context in Contemporary Business
85% of Canadian organizations surveyed
by KPMG practice formal ethical
standards
 Approximately 75% of major U.S.
corporations are actively trying to build
ethics into their organizations (Harvard Business

Review)
“Like Nailing Jell-o to a Wall”

What is business ethics?
– The discipline of applying ethical principals
to solve complex moral dilemmas
– An area that requires reasoning and
judgment based on individuals’ principals
and beliefs in making choices that balance
self-interest against social claims and
responsibilities
Why Practice Ethics?
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To anticipate laws and the market in order to:
– Forestall “punitive social regulation”
– Prevent fraud or other organizational wrongdoing
– Long-term market rewards through positive
reputation

To increase employee morale and productivity

Because business is part of the social system
in which we all must live
What Do Ethical Corporations Do?
Obey laws
 Adopt codes of ethics that focus on
stakeholder interest over shareholder
interest
 Participate in socially responsible
initiatives

Examples
 Bank
of Montreal
 The Body Shop
Why Teach Ethics?

To develop students’ critical thinking
skills by:
– Stimulating moral investigation
– Analysing key concepts
– Dealing with ambiguity and disagreement
Prepare students for issues they will
face in business careers
 Stimulate students’ sense of social
responsibility
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Levels of Business Ethics
 Individual
 Organizational
 Association
 Societal
 International
Stakeholders
Customers
 Employees and labour unions
 Individual citizens
 Shareholders
 Environment
 Government

Ethical Obligation Vs. Legal Obligation
 Because
something is legal, it
does not necessary make it
ethical, and vice-versa
 Being ethical implies more than
simply complying with existing
laws
Ethics Vs. Social Responsibility
Social responsibility is best described as
a subset of ethics
 Social responsibility represents the
duties of an individual or organization to
be accountable for its decisions

Ethical Frameworks

Two general categories of reasoning
used to solve ethical dilemmas -deontology and utilitarianism

Arguments and decisions can be made
by using either or a combination of both
Deontology
Value-based
 Using personal or individual beliefs of
right and wrong to solve and ethical
dilemma
 Follows the logic that people ought to
do what they believe is right, and
refrain from doing what they believe is
wrong
 Does not take consequences or longterm outcomes into account

Utilitarianism
Outcome-based
 Using the potential outcome of an
action to solve and ethical dilemma
 Follows the logic that people ought to
base their decisions on the action that
will result in the greatest good for the
greatest number
 Does not take personal beliefs or values
into account

Links to Courses
Information Technology
 Introduction to Business
 Science
 Law
 International Business
 Marketing
 Administrative Studies
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Teaching Methods

Vary teaching methods based on:
– Age of students
– Ability of students
– Topic covered

Effective strategies include:
– Case studies
– Literature
– Role play
– Investigation
Case Studies
Provide real-life or simulated situations
to which students can apply their
knowledge
 Can be constructed by teachers and
students using internet web sites and
newspaper/magazine articles

Literature
Using literature to provide a context for
business ethics is a method rapidly
gaining popularity in universities
 Provides a richer context in which
students experience more creative
thought
 The Lorax (Dr. Suess) is an example of
literature that can be used with students
of all ages

Role Play
Builds on case studies and literature
 Allows students to experience and
internalize theory and situations
 Takes form of debate or dramatization
 Students play the role of either ethicist
or manager in working through an
ethical dilemma

Investigation
Applies authentic learning to the ethics
curriculum
 Students examine local businesses and
rate them for the degree to which they
practice ethics
 Alternately, students examine
companies from which they purchase
goods or services using the internet and
periodicals

Let’s Look at an Ethical Dilemma ….
Internet Resources
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Business Ethics Links
www.ethics.ubc.ca/resources/business/
Canadian Centre for Ethics & Corporate Policy
www.ethicscentre.com
Online Journal of Ethics
www.depaul.edu/ethics/gerde.htm
Ethics in Action www.ethicsinaction.com
KPMG Canada Ethics & Integrity Service
www.kpmg.ca/ethics/home.htm
Print Resources
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Business Ethics Magazine
Business Ethics: A Managerial Stakeholder
Approach (Joseph W. Weiss, Wadsworth:
Belmont, CA, 1994)
Practical Ethics (Gordon Shea, AMA
Membership Publications: New York, 1988)
Business and Society: Ethics, Government,
and the World Economy (Alfred A. Marcus,
Irwin: New York, 1993)
Conclusion

There are always those who think they
know what is your responsibility better
than you do.
-- Ralph Waldo Emerson