Managerial Ethics and Corporate Citizenship

MBA Summer 2014

Course Description and overview
Occurrence of a significant number of corporate scandals over the past few years has
powerfully reinforced the centrality of ethical behavior in governing business
organizations. The crises of Satyam, Enron, Arthur Anderson, WorldCom, to name a few,
have focused sustained attention on the issue of ethical governance, as also on the belief
that for long term survival, any economic system requires a moral component. Business
Ethics basically deals with the questions of human values, meaning of life and the means
and ends issues. It is about being able to clearly discern the ethical aspect of managerial
choices and making thoughtful judgements in complex business situations. How a
company is governed influences rights and relationships among organizational
stakeholders, and ultimately how an organization is managed.
The objectives of this Course are:
To understand what influences come to bear on ethical decision making;
To encourage a broad view of life in business through stimulating moral imagination,
and heightening sensitivity to the ethical dimension of managerial problems; and,
To strengthen the ability to appropriately respond to them.
Besides, this course teaches the fundamentals of Corporate Governance from a
variety of angles the board of directors, senior management, investors, regulator and
other stakeholders and focuses on assessing the effectiveness and execution of
governance roles and responsibilities.
The Course will provide opportunities for reflection and discussions on how ethics
intersects with governance from an organizational and institutional point of view.
In achieving the Course objectives, business situations of ethical complexity at three
levels (as below) ethical underpinnings of business as an activity will be discussed.
1. personal and professional commitments;
2. organizational conduct; and
3. the social
It will draw on a variety of materials: short films, Readings and business Case studies.
Selected pieces from literature (stories, plays) dealing with ethical issues, conflicts,
paradoxes, and dilemmas will also be used as an important supplement for addressing
ethical ambiguities of both, business and personal life.
Evaluation:
Class participation/ Case Presentations
Final Examination

40%
60%
1

Class participation
Active class participation would be a critical component of this course, and will include
preparation by reading what is assigned, raising questions and making comments.
Students will be expected to access the Internet for some assigned readings linked to the
course- outline
Criteria for the evaluation of Presentations will be as follows:
-

To what extent the presentation reflected students knowledge of relevant aspects

of the topic
To what extent the presentation was well organized
Effective time management
To what extent Introduction and Summary were clear and effective
To what extent the groups interaction with class was engaging and questions
were answered clearly
Whether audio-visual resources were used effectively

Text Book :
Corporate Governance Theory & Practice, by Anil Kumar, International Book
House, India
Additional Texts and Readings
Ethics in Business and Corporate governance by S K Mandal, Tata Mcgraw Hill
The Difficulty of Being Good
by Gurcharan Das
Business Ethics: Concepts and Cases, by Manuel G. Velasquez , HPI
Business Ethics: Andrew Craine & Dirk Matten, Oxford
Business Ethics and Corporate Governance: A C Fernando, Pearson
Corporate Governance: Bob Tricker, Oxford
Business and Society: Archie B Carroll & Ann K Buchholtz
Journals
Journal of Business Ethics
Ethics Quarterly
Harvard Business Review

Schedule of Topics / Sessions

Topic
1-2

Introduction: Business Ethics & Corporate

Governance

Readings / Supporting Material

Business Ethics : Concepts and Cases by Manua

1 (3-50)

BUSINESS ETHICS: Approaches

Descriptive versus Normative Ethics
Major Approaches to Business Ethics
The Conventional Approach to Business Ethics
Ethics and the Law
Making Ethical Judgments
3-4-5
PERSONAL AND ORGANISATIONAL
ETHICS
Ethical issues at different levels
Principles approach to ethics:
Consequence-based, Duty and Rights- based
Justice principle, Ethics of care, Virtue ethics
Ethical test approach:
Test of disclosure
Other tests

- HBR article : Is Buffing in

Business Ethical? By Albert Carr
- Business is not a game: article by
Hamington
- Velasquez, Chap 2 (57-108)
HBR article : Why be honest if
honesty doesnt pay by A Bhide
& H Stevenson
Cases :
Satyadas ; by Bimal Kar (short
story)
How much land does a man need?
by Leo Tolstoy (short story)

a.
6-7-8

Ethical Leadership & Decision-Making

Processes :
Factors affecting organisations moral climate
Moral Development and Moral Reasoning
organizational factors : Culture and
relationships

HBR article : Why Good Managers Make Bad

Gellerman
Cases:
The Enemy by Pearl S Buck (story)
HBR Case Study : The Parable of The Sadhu

9-10

Ethical Issues and Dilemmas :

International business
Whistle- blowing
Managing ethics in organizations

HBR article: Values in Tension By T. Donaldson

HBR Case Study : The case of the Wilful Whis

11

12-13

Corporate Governance:
Meaning & significance
Governance & management
Good governance

Text Book : Chapter 1

Evolution of corporate governance:

T B Chapters 2, 5 & 8
Theories, philosophies and models

14-1516

Structures of Corporate Governance

T B Chapter 3 & 4
Case:
Enron

Board structures & Committees

Functions of the Board
17

Role of Independent Directors

Case:
Maxwell communications, T B, page 104

Corporate Governance Codes:

T B Chap 7

Codes in India & other countries

Case : Tyco International ( T B page 97 )

19

Corporate social responsibility and

sustainability :
New expectations in CG

Corporate Governance: Ticker Oxford, Chap 15

Case :
:Johnson & Johnson

20

Corporate governance: emerging issues

Reflection & summing up

T B Chap 12

18