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?

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

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

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

Lets Look at an Ethical Dilemma .

Internet Resources

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

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