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BUSINESS ETHICS AND THE INDIVIDUAL (SBMT 2010)

Instructor: Assistant Professor Mark Mihorean Office: Rm. 5050 LSK Phone: 2358-7736 Email: markmi@ust.hk Office Hours: By Appointment Instructional Assistant: Mr. Samson Chui Phone: 3469-2128 Email: bmschui@ust.hk Office: Rm.1037 LSK Class Times: Mondays: (L5) 9:30am-11:20am (LSK 1007)

Thursdays: (L2) 9:00am-10:50am (LSK 1034) (L3) 12:00pm-1:50pm (LSK G007) (L1) 3:00pm-4:50pm (LSK 1009)

Course Overview:

Welcome Transformers!

LYING – CHEATING - FRAUD – CORPORATE SCANDALS - These days, it’s easy to find stories about corruption in business. However, such things are no longer being tolerated by society. Attitudes are changing, expectations are rising, and businesses are becoming more transparent as people strengthen their professionalism. Positive Role Models (PRM) are valued. Most importantly, today’s competitive job market demands graduates who are skilled in Business Ethics. You are the new ‘transformers’ in business. Not only do we need to be ethical decision makers in business but, throughout our whole lives we will encounter situations that seem ‘right’ and ‘wrong’. The even more difficult dilemmas are the ones that seem ‘right’ and ‘right’. What are we going to do? Are we able to give a voice to our values? Are we able to stand firm regardless of the pressure? Sometimes money, power, and influence, can be irresistible; tempting us away from our own integrity. Although it can be difficult, all of us have the power to choose a direction. As the Greek philosopher Socrates once said about studying Ethics: "We are discussing no small matter, but how we ought to live." Let’s proceed.

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In this course, we will begin by looking at what Business Ethics is, and why it is everybody’s business. This course takes an introductory, pluralistic approach to Ethics and combines it with practical case studies. There will be an emphasis on current news stories. You will be reflecting on your own moral development as you encounter different topics related to Ethics. We will use major ethical theories as a prism through which we can view moral dilemmas in business. This course will also challenge you to develop your higher-level critical thinking skills, through lectures, discussions, and personal reflections. In addition, the AESP (Applied Ethics Service Project) will give you the opportunity to apply theoretical concepts to actual situations in your own context. Ultimately, this course should help you to strengthen your own professional judgements when confronting ethical issues in life.

LEARNING OUTCOMES: A. THE UNIVERSITY: HKUST wants all graduates to have certain desired attributes.

One of these relates directly to ethics. Specifically, HKUST wants all graduates to have:

‘respect for others and high standards of personal integrity’

‘compassion and a readiness to contribute to the community’ (ABC LIVE Attributes of HKUST Graduates) B. THE DEPARTMENT: The Department of Management also has specific goals,

including one relating to ethics. Specifically, the Department of Management wants graduates to:

‘understand their professional and ethical responsibility’ (SBM Learning Goals and Objectives, LG:8)

C. THIS COURSE: The Intended Learning Outcomes of this course have therefore been aligned with the ethical goals of the Department and the University. Thus, upon completion of this course, you will “understand your professional and ethical responsibility” (LG:8) by reaching the following objectives:

Knowledge

Understand the terminology, concepts, and principles of ethical decision-making.

Skills

Identify ethical dilemmas in business and apply logical frameworks in your analysis in order to reach feasible resolutions.

Attitude

Appreciate the importance of behaving ethically in society.

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Method of Instruction:

This course will be conducted through various means including: lectures, discussions, readings and problem-solving cases. This is a highly interactive course that requires active participation from everyone.

Special Event: Guest Speakers We are fortunate to have two special guest speakers. They will be coming to share their experience and insights related to ethical business practices. Your attendance and participation at these two events is a required component of the course. Please make our guests feel welcome. The details of the events are:

1. Friday March 6, 2015 (7.00pm – 8:15pm – Venue: LTA – Details to follow)

2. Friday April 10, 2015 (7.00pm – 8:15pm – Venue: LTA – Details to follow)

ASSESSMENT & WEIGHTING

Participation (including attendance / online forum / teaching) 30%

Personal Reflections / Analysis 30%

AESP (Applied Ethics Service Project) 40% (Progress Update / Presentation / Final Report) TOTAL *100%

o Participation – Active participation means attending all classes, offering your

contributions in class, as well as online in the Discussion Forum, and acting as a

teacher for another group. You are also expected to attend the select Tutorials as

indicated by the Tutorial schedule on CANVAS. [*Note (a): that 2% will be

deducted from your final total course score of 100% for every class / tutorial missed.

(b): In exceptional circumstances, students who have consistently enriched the

overall in-class large group discussions with their insightful contributions, might, at

the discretion of the instructor, have 1-2% added onto their overall final score.]

o The Online Discussion Forum should generate a lively debate about ethical

issues. For example, how would you answer: Is lying acceptable sometimes? In

the Discussion Forum you can share your insights on specific class topics, a current

news items, or something related to business ethics. Read what others have to say,

think about the ideas, and give your feedback to enrich the overall discussion. *You

are expected to make at least one posting per week throughout the course,

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otherwise 2% will be deducted from your final total course score of 100%. Multiple

postings on the same day will not replace the weekly requirement. Once the

minimum weekly requirement has been met, it will be the quality of posts (not the

number the posts) that is most important. Online posts will be evaluated in terms of:

i) sophistication of comment ii) ethical grounding and iii) active contribution to the

overall ongoing discussion.

o Personal Reflection

“Your understanding of moral complexities and ethical dilemmas grows as your life

experience and education grow” (Business Ethics Now, p.7).

With this in mind, it is helpful to periodically reflect upon your own personal value

system. For instance, what values are becoming more important to you? Which ones

do not seem so important now? How do you deal with a conflict of values? What

values do you have that seem to differ from your friends and family? Why do they

differ? How do you think some of the topics discussed in class will affect your

personal / professional life?

All Personal Reflections will be evaluated on the following basis:

1. Writing style - (i.e. grammar, clarity, logic, etc.)

2. Ethical Connection - how well you discussed the link between your own

situation and specific ethical concepts / issues

3. Insights - the depth / sophistication of the comments you make in terms of your

own moral development

All personal reflections are due electronically BEFORE the beginning of class to be

considered ‘on time’ – send it to the ‘Turn-It-In’ link. When you submit your

assignment you will also receive a ‘digital receipt’ from Turn-It-In’. That is your proof

of having submitted an assignment. Late submissions will only be accepted up to the

end of the day (midnight) on the assignment due date. A 10% penalty will be applied

to the overall assignment grade in such cases.

*Refer to the special file called “Personal Reflections” on CANVAS for further details.

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The AESP (Applied Ethics Service Project)

What is AESP?

AESP is the Applied Ethics Service Project. All Business Ethics and the Individual

(SBMT 2010) students will participate in a small group-based service project. The ideas

for these projects will come from you. Your group will make a connection between

ethical concepts and an actual situation found in Hong Kong. Your project will have

some connection to: ethical behavior / corporate citizenship / principled leadership /

moral awareness / or social change. Consequently, your project might involve a small

business, young people, elderly people, disadvantaged people, the environment,

technology, etc. Go off-campus. Explore opportunities. The possibilities are endless.

Goals of AESP

1. Enrich classroom learning by applying ethical concepts / theories to actual real-

life situations

2. Meet the needs of an individual, group, or community

3. Foster a greater moral awareness of the needs of stakeholders (i.e. the forgotten,

the unseen, the disengaged) while strengthening your own principled leadership,

social responsibility, and ethical business sense.

4. Work as a team in pursuit of excellence

Some projects that other students have done include: (http://businessethics.wix.com/aesp)

Small Businesses: creating Facebook profiles and teaching the owners how

social networking could help their businesses / introduce them to Google Maps

New Immigrants: Helping them to adapt to life in H.K. / share information

Homeless People: Understanding and connecting them with Social Services

Low Income Families: Connecting students to free community tutorial services,

Environmental Issues: Cleaning up areas by removing the source of a problem

Removing offensive graffiti from a public wall

Youth: Sharing a skill ‘How to Write a Resume’ or teaching Kung Fu skills, etc.

Elderly: Digitizing photos for elderly people to share through social media

Food Bank: Recruiting more businesses to donate to the Food Bank

Market Research: doing surveys related to discrimination and two-tier pricing

Labour rights: students helped petrol workers communicate important issues

directly to the senior managers / problematic lunchtime policies were resolved.

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You need to be active, (not passive) on the AESP in order to grow in your own moral

awareness. Do something you would never have dreamed of doing before; go outside

of your comfort zone and feel the rewards of your own personal development. Observe

your own surroundings and go off-campus (i.e. where your family lives, your

neighbourhood). What real issues are people discussing in the News media? What

could your group do about it? Find a situation that your group could improve while

understanding the causes / stakeholders. Your group will propose projects that can

feasibly be done within this semester. Given the time constraints, it is not

recommended to get involved with NGO’s. Be thinking about the ‘legacy effect’ (i.e.

what kind of positive difference exists after your group disappears from the scene?) If

you want success with this – do not sit in a room and think of a ‘problem’. Instead,

get outside, look around, raise your awareness, read news sources and identify real

problems. That is STEP 1. Then decide if addressing that problem is feasible or not.

Professor Mark will not tell you what to do – the core ideas / strategies should come

from you and your group members. Challenge yourself. Grow. Once your project has

been approved, you will carry out a plan following the guidelines / dates provided.

Some of the requirements of this include:

a project/service that would take approximately 8 hours of each member’s time

(i.e. this could represent two Saturdays or an equivalent amount of time during

the week. Note that your weekly timetable does include a tutorial time slot. This

time has been factored in to use for your AESP group meetings, etc.)

a Progress Update (written) *See the AESP folder on CANVAS for the template

a Final Report (hardcopy approximately 6-9 pages) including:

o the details of the project

o the ethical rationale / connection

o challenges and positive aspects encountered

o the overall outcome of the project – what is the ‘legacy effect’?

o some reflection about how this project affected each group member

o some photos / verification details

Select a Topic

Planning

Begin Service

Progress

Update

Continue

Service

Final Project

Submitted

In-class Form

Progress

Update Form

The AESP

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Time The AESP

(Applied Ethics Service Project)

Week 1-2

1. Choose a Leader

2. Exchange contact details of your group members

3. Brainstorm ideas for possible small-scale projects that will improve a

situation. With all group members proposing ideas, it should not be too

difficult to identify some need that could be addressed. All of you are

full of creative ideas and perceptive insights. Observe your

surroundings and look closely at the areas / neighborhoods you pass

through. Look at the News. Generating the ideas for projects yourselves

is much better than the instructor assigning a project to your group.

4. As your timetable includes a tutorial slot, it is highly recommended

that in your first week you meet your group members somewhere on

campus to actively discuss what AESP your group will do.

Week 2

1. In the second class, be ready to discuss and select a viable, small-

scale project that has the full support of all of your group members. Tell

the instructor your idea and get approval from him.

2. A one-page group form (SELECTING A PROJECT) will be handed out

in class. Fill in the basic information and hand it back in today.

3. Plan out the ‘when’, ‘who’, and ‘how’ this project will be done with your

group members.

4. Manage your time towards this goal and begin the project as soon as

possible

Weeks 3-6

1. Your project should have already been started.

2. Stay committed to your time-line goals / keep your group members

motivated / inform the instructor / I.A. if there is a problem

Week 7

1. Your group should fill out the one-page PROGRESS UPDATE found in

the AESP folder on CANVAS

2. Hand in (a hard copy) today in class.

Weeks 8-12

1. Finish up your service if not already completed

2. Prepare the FINAL REPORT (hardcopy) including photos. Refer to the

AESP folder on CANVAS for the specific requirements for this report.

Final Class

1. Hand in the FINAL REPORT (a hardcopy) today in class.

2. In today’s class we’ll hear about what each group did and have an

overall debriefing of the AESP.

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Recognition of Service Hours:

Upon successful completion of your AESP, you are eligible to have 8 hours credited to

your “Community Engagement Record” managed by HKUST CONNECT

(http://connect.ust.hk). Students who have completed at least 40 hours of service by

the time of their graduation can apply to get a special certificate of Community

Engagement Record. This Record represents your service / volunteerism achievements

which can be helpful in pursuing your future goals.

Code of Practise for HKUST Students Undertaking Service (HKUST CONNECT):

While your AESP will probably not involve working with large organizations or NGOs,

nonetheless all Business Ethics students should follow the basic positive expectations

set out in HKUST CONNECT’s “Code of Practise” which can be viewed at:

http://connect.ust.hk/stud_in_action/code.pdf

Course Grades:

Distribution of course grades will be based on the following University guidelines, combining all of the course sections:

Final Grade Percentage

A+, A, A- 10-20%

B+, B, B- 25-40%

C+, C, C- 35-45%

D 5-10%

F 0-5%

*Please note that these University guidelines mean that your Final Grade will depend upon your relative position in the class compared to other students. Each class is unique and has variance based on the actual student performance. Thus, although you may have earned a 75% overall aggregate score in the course, this might mean your Final Grade ends up to be a ‘C+’, a ‘B’, or an ‘A’ depending on the number of students who earned aggregate scores above your score.

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Class Expectations:

Remember to bring your PRS to every class. It is necessary for in-class activities.

Attending class means actively paying attention, contributing your ideas constructively, completing the required assignments, and thinking for yourself.

Note that your timetable includes Tutorial sessions. This time has been factored in to use for your AESP (Applied Ethics Service Project). Refer to the Tutorial Schedule on CANVAS to find out which 2 specific tutorial sessions you are required to attend. (As is the case with the lectures, please note that 2% will be deducted from your final total course score of 100% for every tutorial missed.)

There are two required evening sessions for the Guest Speakers. Make a note of

the two dates: Friday March 6, 2015 and Friday April 10, 2015. Both talks will be

held in the evening in LTA (details to be confirmed)

It is your responsibility to regularly check the class site on CANVAS to see what is

expected each week. The weekly folder will be updated often and changes will be

reflected as soon as possible.

All work done at the University will be done honestly and with integrity. You should

familiarize yourself with HKUST’s Academic Honor Code found at the following link

( http://tl.ust.hk/integrity/student-1.html )

If you are solely interested in a high GPA and high grades, then this is not the class

for you. If however, you want to develop your intellectual talents, strengthen your

confidence in speaking, and improve your professional influence, then this is the

class for you.

You are expected to complete the assignments on time. Everyone is busy. Self-

discipline and Time Management are important aspects of successful people. Allow

yourself to excel.

Mobile phones / Laptops / Electronic Devices: Such devices can engage us (sometimes addictively) and also drain us. Recent research confirms that regularly checking a Smart device while in class can impede your own learning. Rather than interrupt your own concentration, you should challenge yourself to develop the powerful ability to focus and reach your deepest intellectual thoughts. It is a skill in managing yourself. In my experience, students who are able to detach themselves from their devices during class are better able to fully engage in their surroundings; thus doing better in class and beyond. (Tip: If you want to reach your deepest intellectual thoughts, improve your own concentration, not be anxious, and be more in control of your own learning . . . then turn off your phone, laptops, and other electronic devices during class . . . or leave them with Mark at the beginning of the class. You’ll notice a significant difference in your own focus and intellectual power.)

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Week No.

Date COURSE TOPICS – Mondays (L5)

1 Mon. Feb. 2 Introduction / ‘Where Are You Going?’ / Moral Compass / the AESP

2 Mon. Feb. 9 ‘What’s the Use of Ethics?’ / Ethical Theories

3 Mon. Feb. 16 ‘I Can’t Decide!’ / Dilemmas / Ethical Decision-making

4 Mon. Feb. 23 ‘Everyone Does It!’ / Trying to Justify Unethical Behaviour vs. Giving Voice To Values

5 Mon. Mar. 2 Is Advertising Lying?’ / Organizational Ethics and Marketing

*Friday March 6 7.00pm – 8.15pm To be confirmed

GUEST SPEAKER – (Venue: details to follow)

6 Mon. Mar. 9 ‘What’s Your Bottom Line?’ / CSR + Triple Bottom Line

7 Mon. Mar. 16 ‘Is it a Conflict-of-Interest?’ / Codes of Ethics / Professionalism

8 Mon. Mar. 23 ‘Is it a Gift or a Bribe?’ / U.S. and Hong Kong laws

9 Mon. Mar. 30 AESP Planning / Consultations

*Friday April 10 7.00pm - 8.15pm To be confirmed

GUEST SPEAKER – (Venue: details to follow)

10 Mon. Apr. 13 ‘Workplace Heroes or Criminals?’ / Whistleblowers

11 Mon. Apr. 20 ‘Emerging Tech. Dilemmas’ / Ethics, Social Media, and the Workplace

12 Mon. Apr. 27 ’Trade and Values’ / Ethics and Globalization

13 Mon. May 4 ‘You Can Lead the Way’ / The AESP sharing / debriefing

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Recommended (optional) Textbook:

Ghillyer, Andrew. Business Ethics Now. (2013). New York: McGraw-Hill. ISBN 978-0078023200 . Supplementary / Optional Reading / Resources

Bredeson, Dean A. (2012). Applied Business Ethics. New York: Cengage Learning.

Carr, Nicholas. (2014). The Glass Cage: Automation and Us. New York: W. W. Norton & Company.

Crane, Andrew, and Matten, Dirk. (2010). Business Ethics. New York: Oxford University Press.

Fraedrich, John, Ferrell, Linda, and Ferrell, O.C. (2012). Business Ethics: Ethical Decision Making and Case. Toronto: Cengage Learning.

Gini, Al, and Marcoux, Alexei. (2012). The Ethics of Business: A Concise Introduction. New York: Rowman and Littlefield Publishers.

Kant, Immanuel. Groundwork Of The Metaphysic of Morals. (1785). Translations.

Li, Hon-Lam and Yeung, Anthony. (2007). New Essays in Applied Ethics. London: Palgrave Macmillan.

Lussier, Robert N., and Sherman, Herbert. (2009). Business, Society and Government Essentials – An Applied Ethics Approach. Long Grove, Illinois: Waveland Press Inc.

Matousek, Mark. (2011). Ethical Wisdom: The Search For A Moral Life. New York: Anchor Books.

Pojman, Louis and Vaughn, Lewis. (2011). The Moral Life. New York: Oxford University Press.

Provis, Chris. (2012). Individuals, Groups and Business Ethics. New York: Routledge.

Rajko, Alexander. (2012). Behavioral Economics and Business Ethics: Interrelations and Applications. New York: Routledge.

Sandel, Michael. (2013). What Money Can’t Buy – The Moral Limits Of Markets. New York: Straus and Giroux Paperbacks

Sandel, Michael. (2009). Justice: What’s The Right Thing To Do? London: Penguin Books.

Shaw, William H. (2011). Business Ethics. New York: Cengage Learning.

Smith, Adam. (1759). The Theory of Moral Sentiments. London: A. Millar.

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Some Excellent Business Ethics Websites:

http://www.csrwire.com/

http://www.ibe.org.uk/business-ethics-news/117

http://www.globalethics.org/newsline/category/news/

http://www.icac.org.hk/hkedc/eng/main2.asp (Hong Kong)

http://www.transparency.org/news

Newspapers / Digital Sources: Reading the news as well as intelligently reviewing online resources will always help to sharpen one’s mind. Invest in yourself. Stay current and aware of developing business / ethics / social / public policy issues by looking at multiple sources of information (i.e. Financial Times http://www.ft.com, The Wall Street Journal http://online.wsj.com, The Economist http://www.economist.com/, The South China Morning Post www.scmp.com, etc.)

Be committed . . . allow yourself to excel!

*As changes in the course may be necessary, the instructor reserves the right to revise the syllabus as needed. (Last revised: January 2015)