Business Ethics & Sustainability Lecture Notes PDF

November-December, 2024 Executive Master in HR & ORGANIZATION Business Ethics & Sustainability General course rules Magalì Fia Lecturer Magalì Fia [email protected] Department of management, University of Bologna Office hours Before/after class & by appointment - participants are kindly invite...

November-December, 2024 Executive Master in HR & ORGANIZATION Business Ethics & Sustainability General course rules Magalì Fia Lecturer Magalì Fia [email protected] Department of management, University of Bologna Office hours Before/after class & by appointment - participants are kindly invited to write me an email. 2 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Magalì Fia Researcher and member of the YSBC (Yunus Social Business Center) of the University of Bologna since October 2019. Previously: researcher at the Politecnico di Milano and member of the TIRESIA research group (Technology Innovation and REsearch for Social ImpAct) 2016-2019. Teaching: Mission and accountability of cooperative enterprises at the Master's Degree in Management of social economy of the University of Bologna Principles and techniques of Fundraising at the Master's Degree in Management of social economy of the University of Bologna Social Innovation course in the Master "Sustainability and Business Innovation" of the Bologna Business School of the University of Bologna Social Innovation course in the International Master "Sustainability Transition Management" of the Bologna Business School. Management Accounting Bachelor Degree in Financial and Business Management University of Bologna Research: business ethics, CSR, corporate governance, universities and innovation policies (theoretical and empirical works). Ongoing projects: B corporations & SDG strategies, Covid-19 and Benefit Corporations, Benefit Corporations and governance issues, Amartya Sen's capability and corporate governance approach, university governance and SDGs. Research in action and consultancy: research activities and projects with public institutions (Province of Trento, Emilia- Romagna Region -ART-ER) and private institutions (UBI Banca, Grameen Foundation, Nomisma). Topics: research and innovation policies, social innovation policies and evaluation of public policies, with a focus on social impact and the relationship between governance and performance. Member of the scientific committee of the Center on Economic Business Ethics based at the University of Milan Bicocca, member of the steering committee dello YSBC Unibo, Core Faculty BBS 3 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Overall Learning Objectives LO–1: Placing business ethics within significant contemporary debates and understand key ethical theories and their relevance to support decision-makers in navigating complex environments LO-2: Develop a comprehensive understanding of business ethics and its influence on corporate behavior, with a focus on exploring diverse CSR practices. LO-3: Explore an innovative business ethics framework grounded in Sen's Capabilities and understand its practical relevance in addressing contemporary ethical challenges LO-4: Applying concepts and tools to analyze and assess the implications of different CSR practices and gaining practical skills for ethical decision-making. 4 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Teaching methods The course program is deepened by a mixed method: Lectures with examples and cases; Discussion of case studies with teamwork; CSR testimonial; Classroom exercises. 5 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics  Schedule # Date Day Time Note L1 12/11/2024 Tuesday 2 PM- 5 PM L2 20/11/2024 Wednesday 2 PM- 5 PM L3 27/11/2024 Wednesday 2 PM- 5 PM Case study: Patagonia and PepsiCo L4 04/12/2024 Wednesday 10:30 AM- 1:30 PM CSR Lab with company testimonial L5 09/12/2024 Monday 2 PM- 5 PM Individual presentations 6 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Program 1st session: Title Understanding Business Ethics I Date - hours November 12, 2023 – h 14:00-17:00 Location BBS – Villa Guastavillani, via degli Scalini, 18 – Bologna Content  Introduction and overview of the course  Introducing Business Ethics: o What is Business Ethics? o What are ethical dilemmas? o Why is Business Ethics important? Supplementary readings  Class notes and slides  Freeman. 2017. “The New Story of Business: Towards a More Responsible Capitalism”, Business and Society Review, 122(3): 449-465. Case study  In class ethical dilemmas 2nd session: Title Understanding Business Ethics II Date - hours November 19, 2023 – h 14:00-17:00 Location BBS – Villa Guastavillani, via degli Scalini, 18 – Bologna Content  Framing Business Ethics: Stakeholder theory and Corporate citizenship  The main normative ethical theories I: o Ethical egoism o Utilitarianism Supplementary readings  Freeman, R. E., & Dmytriyev, S. (2017). Corporate social responsibility and stakeholder theory: Learning from each other. Symphonya. Emerging Issues in Management, (1), 7-15.  Matten, D., & Crane, A. (2005). Corporate Citizenship: Toward an Extended Theoretical Conceptualization. The Academy of Management Review, 30(1), 166–179. http://www.jstor.org/stable/20159101  Crane & Matten, (eds.). 2010. Making decisions in business ethics: Descriptive ethical theories, in Business Ethics (fifth ed.), Chapter 3. Oxford University Press, pages 85-125. Case 7 study In class ethical November-December, 2024. dilemmas Master in HR & ORGANIZATION – Business Ethics Program 3rd session: Title Evolution of CSR & Patagonia and PepsiCo Case Study Date - hours November 27, 2023 – h 14:00-17:00 Location BBS – Villa Guastavillani, via degli Scalini, 18 – Bologna Content  The main normative ethical theories II: o Ethics of duty (Kantianism) o Rights & Justice (J. Rawls)  Descriptive business ethics theories  The evolution of Corporate Social Responsibility  Discussion and teamwork on cases Patagonia and PepsiCo Required Readings (before classes) Patagonia: Driving sustainable innovation by embracing tensions. PepsiCo inc. establishing a role in a sustainable society Supplementary readings  Crane & Matten, (eds.). 2010. Making decisions in business ethics: Descriptive ethical theories, in Business Ethics (fifth ed.), Chapter 3. Oxford University Press, pages 85-125.  Zadek, S. (2004). The path to corporate responsibility. In Corporate ethics and corporate governance (pp. 159-172). Harvard Business Review  Porter, M. E., & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard business review, 84(12), 78-92. Case study Patagonia & PepsiCo – cases should be read before the class. 8 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Program 4th session: Title An innovative approach to Business Ethics based on Sen's Capabilities & CSR LAB Date - hours December 4, 2023 – h 10:30-13:30 Location BBS – Villa Guastavillani, via degli Scalini, 18 – Bologna Content  The first part of the lecture presents Sen’s Capability approach to the corporate domain, particularly focusing on corporate governance.  The second part of the lecture follows a laboratory teaching approach. o We will host a company testimonial. Participants are required to ask questions to the testimonial about the CSR practices implemented. o Participants will be asked to do a team-based class exercise using the information acquired during the first part, followed by a discussion. Supplementary Readings  Fia, M., & Sacconi, L. (2019). Justice and corporate governance: New insights from Rawlsian social contract and Sen's capabilities approach. Journal of Business Ethics, 160(4), 937-960.  Sacconi L. (2004).CSR as a model of extended corporate governance: an explanation based on the economic theory of social contract, reputation and reciprocal conformism”, Liuc paper n.142. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=514522 Company testimonial During the second part of the lecture we’ll host a company testimonial. 5th session: Title Individual presentation Date - hours December 9, 2024 – h 14:00-17:00 Location BBS – Villa Guastavillani, via degli Scalini, 18 – Bologna Content The individual presentation are organized as 5-minute pitch with an individual reflection on the testimony seen in Lecture 4. There is no specific limit on the number of slides, but keep in mind that 10 slides would be excessive for a brief pitch of this length. 9 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Program Final written exam Date: January 7, 2025 – TO BE CONFIRMED Hours: TBD Location: BBS – Villa Guastavillani, via degli Scalini, 18 – Bologna The exam will be based on topics covered during the lectures It last approximately 45’ exam with 10 multiple question 1 open-ended question 10 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics PARTICIPANTS’ ASSESSMENT & FINAL EXAM Marks are intended on a numerical grade scale (0 to 30), being 18 to 30 the passing grade range TYPE OF ASSESSMENT DUE DATE WEIGHT ON FINAL GRADE Individual participation Throughout the entire course 10% Teamwork During the discussion of the case studies & the Lab 30% Final Examination Individual presentations: last session of the course 60% Written test - TBD Final Exam evaluation criteria: Written exam: 10 questions + 1 open-ended/essay question 5’ minutes pitch:  30% Clarity of the oral and written presentation: This assesses how well the information is presented and how clear and organized the content is  70% Critical Reading in Relation to Course Content: This evaluates the ability to understand course material and critically connect it to the content being presented 11 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics  Materials  Slides will be used in classes; they cover most relevant topics discussed in class and will be provided after classes.  Slides are integrated by one or more readings, which will be considered as part of the course material.  References to other useful research papers and documents will be listed. These allow participants to develop a deep understanding of the topic. 12 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Case Studies/1  2 Case Studies will be discussed in class. Case studies materials will be provided in due time.  Before classes: participants are required to read the case before class and to develop their own critical perspective on the case study according to the guideline (see next slide)  During classes: in class participants will be asked to complete an assignment and then to join in and to present their insights. If anyone is unable to read the case in advance, please let the Professor know before class starts. If anyone won’t be present, please let the Professor know asap. 13 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Case Studies/2 Lecture n. 3 – CSR Patagonia: Driving sustainable innovation by embracing tensions. PepsiCo: Establishing a role in a sustainable society The discussion will focus on corporate responses to CSR challenges and their ethical content The learning objective is to understand how different organizations conceive their corporate citizenship and evaluate the responses to CSR challenges from an ethical standpoint. 14 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics November-December, 2024. Master in HR & ORGANIZATION Business Ethics & Sustainability Lecture n. 1 November, 12 2024 Magalì Fia Agenda – L1 1st Lecture Introducing Business Ethics: What is Business Ethics? What are ethical dilemmas? Why is Business Ethics important? 16 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Learning Objectives – L1 1. Provide basic definition of Business Ethics 2. Start navigating ethical dilemmas 3. Understand Business Ethics domain and its role in different contexts 17 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Supplementary Readings - L1  Class notes and slides  Freeman. 2017. “The New Story of Business: Towards a More Responsible Capitalism”, Business and Society Review, 122(3): 449- 465.  Ted talk https://www.ted.com/tedx/events/52054- https://www.youtube.com/watch?v=yMm6u4hf0jw 18 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Agenda – L1 1st Lecture Introducing Business Ethics: What is Business Ethics? What are ethical dilemmas? Why is Business Ethics important? 19 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics What is ethics? Ethics: the study or the science of morals Morality: a sense of right and wrong (society’s codes’ of conduct) Being moral: means belonging or relating to the principles of good and evil, or right and wrong Ethics is the study of human conduct with an emphasis on determining right and wrong Chambers, 1999 20 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics What is ethics? What comes to mind when you think of moral reasoning in everyday languages? "Stealing is wrong, regardless of your financial situation." "It's wrong not to apologize when you've hurt someone with your words." …. and professional languages? "Healthcare professionals must adhere to medical ethics and provide accurate information to patients." "Workplace discrimination based on race, gender, or sexual orientation is unacceptable." 21 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics  Business Ethics – What’s so funny? What is business ethics? An oxymoron? Scandals exists… …. but does that mean ethics is redundant? Businesses need to maintain ethical standard Economic transaction require trust and cooperation(contract are incomplete) Work environment ethically sounded is desirable (contribute to employee morale and productivity) Legal compliance is essential (going beyond aligns with societal values and expectations.) 22 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics … What is business ethics? Evaluating if a decision is ethical requires more than just opinions or guesses about acceptable business conduct Business ethics is the systematic study of business situations, Strategically right and wrong activities, and decisions where issues Commercially right and wrong of right and wrong are addressed Financially right and wrong … Morally right and wrong 23 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics What is business ethics? For an organization Think to a definition for the business ethics of an organization, how would you phrase it? 'An organization's business ethics is…’ or 'An organization's business ethics can be described as...’ https://www.menti.com/alq1oh991hjq 24 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Crane et al. 2019 Ethics and the law Note: also law Note: CSR is not about may be unethical: fulfilling legal obligations… right to vote, The ethical discussion about denial of rights to certain practices may choose a become law.. marriage partner … Crane et al. 2019 25 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics The grey area of BE The plastic bottled water debate Cons: Promotes needless consumption and waste. Often misleadingly marketed as superior to tap water. Business ethics is about gathering relevant Pros: evidence & systematically analyzing it through particular lenses and tools (e.g., normative Offers convenience for on-the-go lifestyles. theories) to get an informed decision Encourages healthier choices (vs. sugary drinks). Lower carbon footprint than other bottled drinks (Kitts 2013). Other Hot Debates in Business Ethics: working conditions; Executive compensation; Corporate tax avoidance November-December, 2024. Master in HR & ORGANIZATION – Business Ethics 26 Agenda – L1 1st Lecture Introducing Business Ethics: What is Business Ethics? What are ethical dilemmas? Why is Business Ethics important? 27 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics  Ethical dilemma No such thing as a free drink - Moodle- November-December, 2024. Master in HR & ORGANIZATION – Business Ethics 28 Morality, Ethics and Ethical theories Morality is about the norms, values and beliefs embedded in social Ethics processes to define what is right and wrong (for an study the morality and rationalizes individual, a community morality to produce ethical theory and …organizations) (i.e. apply the reason to highlight rules and principle that determine what is right and wrong) Ethical theories are made of rules and principles and can be apply to situations to find solution to ethical problem 29 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Agenda – L1 1st Lecture Introducing Business Ethics: What is Business Ethics? What are ethical dilemmas? Why is Business Ethics important? 30 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Why is business ethics important? BEST PRACTICES – CONTRIBUTION TO SOCIETY BUSINESSES MALAPRACTICES – CAUSING MAJOR HARM The collapse of the Rana Plaza Dhaka in 2013. Photograph: Munir Uz Zaman/AFP/Getty Images INCREASING DEMANDS FROM STAKEHOLDERS The data breach, which involved the bank accounts of politicians, sports personalities and entrepreneurs, has placed Intesa’s controls systems in the spotlight 31 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics Why is business ethics important? This framework aims at identifying the key competences of responsible managers, defined as managers that are able to navigate ethics and sustainability challenges. TRANSVERSAL COMPETENCIES Wieck et al. 2011, Bundiers et al., 2021, Laash et al., 2023 – adapted from the authors: Magalì Fia, Giulia KEY COMPETENCIES Leoni, Toloue Miandar, Angelo Paletta 32 November-December, 2024. Master in HR & ORGANIZATION – Business Ethics