B368 Business Issues and Ethics

1. B368 Business Issues and Ethics Group 7 Tutorial 1 C.S. Lai Oct. 2011 B368 Business Issues and Ethics

2. Your choice of language: English or Cantonese B368 Business Issues and Ethics

3. Welcome! – today’s agenda • Introduction 15 mins. • Ground rules, Q&A 15 mins. • Importance of Business Ethics 110 mins. Break 10 mins. • TMAs 15 mins. • Q&A, Your Suggestions 15 mins. B368 Business Issues and Ethics

4. About me… • B.Sc. (Hons.) in Chemistry (CUHK) • M.Sc. in Engineering Business Management (Warwick) • Supply Chain & Procurement Manager of a multinational pharmaceutical company • Please don’t call me Lai Sir, call me CS or Mr. Lai • To contact me: • Tel: 9807 5176 (Sun/Sat 20:00 – 22:00) • Please allow your caller’s ID to be displaced • Please leave a message in case the line is busy. • Please DON’T call during office hours (Mon. – Fri.). • Please DON’T call after 22:00, I should have slept already! • Email: t441653@ouhk.edu.hk B368 Business Issues and Ethics

5. About your Course Coordinator • Dr. Matthew Yeung • Tel: 2768 6951 • Office: A826 • Email: myeung@ouhk.edu.hk B368 Business Issues and Ethics

6. My role as tutor… • Help everyone of you to complete this course • Telephone tutoring, face-to-face sessions, TMAs, • OUHK expects me to be a manager (of students’ time), a well informed and sensitive counsellor and an effective administrator and NOT to “transmit knowledge to your students” • “Lecturing for more than one third of the tutorial time should be considered too much” B368 Business Issues and Ethics

7. About the Course Aims • Introduce the theories and practices of business ethics. • The primary function is not to change students' personal values; rather, it is to raise students' awareness of business ethical issues and to develop an ethical mindset so that they consider ethics when analysing business cases and making business decisions B368 Business Issues and Ethics

8. Contents The course covers the following topics: • The importance of business ethics • Making ethical business decisions • Tools and techniques to manage business ethics • Corporate issues and business ethics • Stakeholder issues and business ethics • The stakeholder society B368 Business Issues and Ethics

9. Assessments • 4 tutorials • 1 workshop • 2 TMAs • 1 Examination B368 Business Issues and Ethics

10. Please…. • Speak out • Ask questions • Share your thoughts • Make mistakes…and… • Enjoy! B368 Business Issues and Ethics

11. One last thing… • Please ensure your phone doesn’t ring during the tutorial • If you need to use your phone, please use the area outside the classroom • Thanks! B368 Business Issues and Ethics

12. Introducing Business Ethics B368 Business Issues and Ethics

13. Activity • What is Business Ethics? Please find some examples that is within the scope of Business Ethics. • Why do you study this course? • How can this course help you in your career? B368 Business Issues and Ethics

14. Overview • What is business ethics? • Why is business ethics important? • Globalization: a key context for business ethics? • Sustainability: a key goal for business ethics? • Europe: a key perspective on business ethics? B368 Business Issues and Ethics

15. What is business ethics? Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed. B368 Business Issues and Ethics

16. What is business ethics • Examples • The case of copy data files (individual employee) • The case of lax site supervision (management) • The case of pharmaceutical pricing (strategy) • Can you think of some more examples? What are the ethical issues involved? B368 Business Issues and Ethics

17. Case Study (Ethical Dilemma 1) • Your friend is working in a bar; • He undercharges you whenever you drink there. Please discuss the questions in the textbook. B368 Business Issues and Ethics

18. grey area Ethics and the law Ethics Law B368 Business Issues and Ethics

19. Ethics in Action 1.1 • Are certain products inherently unethical? Why? • What are the reasons for the company being an ethical or unethical organization? • If you’re the marketing manager of the controversial product, how would you suggest the product be marketed to highlight their ethical qualities? B368 Business Issues and Ethics

20. Defining morality, ethics and ethical theory • Morality is concerned with the norms, values and beliefs embedded in social processes which define right and wrong for an individual or a community. • Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for any given situation. • These rules and principles are called ethical theories. B368 Business Issues and Ethics

21. … to produce ethical theory … Ethics rationalizes morality … …that can be applied to any situation. Morality Ethics Ethical theory Potential solutions to ethical problems The relationship between morality, ethics and ethical theory B368 Business Issues and Ethics

22. Why is business ethics important? • Power and influence of business in society • Potential to provide major contribution to society • Potential to inflict harm • Increasing demands from stakeholders • Lack of business ethics education or training • Continued occurrence of ethical infractions • Evaluating different ways of managing business ethics • Interesting and rewarding B368 Business Issues and Ethics

23. Types of misconduct employees observed among co-workers Source: Ethics Resource Center (2005) B368 Business Issues and Ethics

24. Globalization: a key context for business ethics? B368 Business Issues and Ethics

25. What is globalization? • According to Scholte (2000) globalization is not: • ‘internationalization’ • ‘liberalization’ • ‘universalization’ • ‘westernization’ • Globalization is: the progressive eroding of the relevance of territorial bases for social, economic and political activities, processes and relations • ‘deterritorialization’ B368 Business Issues and Ethics

26. Relevance of globalization for business ethics • Cultural issues • Legal issues • Accountability issues Globalization can affect all stakeholders of the corporation B368 Business Issues and Ethics

27. Ethical impacts of globalization B368 Business Issues and Ethics

28. Sustainability: a key goal for business ethics? B368 Business Issues and Ethics

29. Corporate commitments to sustainability B368 Business Issues and Ethics

30. Defining sustainability • Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (World Commission on Environment and Development 1987) • Sustainability refers to the long-term maintenance of systems according to environmental, economic and social considerations B368 Business Issues and Ethics

31. The three components of sustainability Economic Social Environmental B368 Business Issues and Ethics

32. Activity • Think about the sustainability of current transport systems. Are they sustainable? In what aspects they are not sustainable? • How business ethics is related to sustainability? B368 Business Issues and Ethics

33. Triple bottom line • Coined by John Elkington • Bottom line thinking suggests sustainability as a goal • Three dimensions: • Environmental perspectives • Economic perspectives • Social perspectives B368 Business Issues and Ethics

34. Europe: a key perspective for business ethics? B368 Business Issues and Ethics

35. European vs alternative approaches to business ethics • Who is responsible for ethical conduct in business? • Who is the key actor in business ethics? • What are the key ethical guidelines for ethical behaviour? • What are the key issues in business ethics? • What is the most dominant stakeholder management approach? B368 Business Issues and Ethics

36. Differences in business ethics between Europe, the US & Asia B368 Business Issues and Ethics

37. Summary • Definition of business ethics • Business ethics is vital for business in contemporary capitalism • Global view is essential to understand ethical issues • Sustainability is an important goal for business ethics • Europe has a distinctly different perspective on business ethics issues B368 Business Issues and Ethics

38. About submitting TMA • By Post or by Online Submission. • Send your TMA well before the due dates. • You should submit each assignment by the cut-off date. Late submissions cannot be accepted. • If you send by post, enclose the TMA form, acknowledge card with stamp • Put down my CORRECT address • DON’T use registered mail. I NORMALLY IGNORE REGISTERED MAIL! B368 Business Issues and Ethics

39. TMAs • You MUST pass (i.e. +40%) BOTH assignments and final examination in order to pass the course • Keep a copy of each assignment • TMA should arrive MY MAILBOX on / before the due date • 7 days extensions will NOT normally be granted, unless you have GOOD reasons and with prior permission.(Do you know the official procedure of requesting extension?) • OUHK does not accept postal loss as a reason for extension B368 Business Issues and Ethics

40. Reminders… • TMA 1 due on Nov.25, 2011. • Next meeting – Nov. 6, 2011 @ OUHK B368 Business Issues and Ethics

41. To download this presentation:http://alumni.cuhk.edu.hk/~cslai Enjoy the course…and…Good LuckSee you next time B368 Business Issues and Ethics