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Business and Economics Management Ethics and Corporate Governance: MGX3100
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Page 1: MGX3100 week 2

Business and Economics

Management Ethics and Corporate Governance: MGX3100

Page 2: MGX3100 week 2

How are we doing?

Any Questions?

I am away Week 4

Welcome to Week 2

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The Corporation 150 YEARS: Evolved from insignificance to DOMINANCE.

It has power and influence over our lives.

RECENT SCANDALS have triggered a debate around Lack of Public Control over Big Corporations.

How can we understand the PARADOX of Great Profits and hidden costs.

http://monash.kanopystreaming.com.ezproxy.lib.monash.edu.au/node/64084

Mark Achbar, Joel Bakan, Jennifer Abbott, 2003

(15 minutes)

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The ‘Bad apples’ metaphor

e.g. Enron, Monsanto, Merrill Lynch

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1. Part of the Society

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2. Sports Team

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3. Family

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4.Telephone Line Network

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6. Artificially created Monster/ Frankenstein’s Monster

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8. Evil Corporate Agenda

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10. Shark

Externalising Machine

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In summary, A Corporation is.....a type of a Business Association, an

Artificial Legal Structure, a Legal Person, a Psychopath, a Predator and a Plunderer.

The main purpose is to make profits for owners.

It is required legally to focus on “SHAREHOLDER VALUE”

Philosophical underpinnings of Capitalism

Individual vs Institutional Morality? Institutional role is that of a monster.

CASES: e.g. Nike, Shell, Monsanto,

Corporate Criminals: Exxon, GE, Chevron.

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What do you think is the Corporation?

• Individual Task• Reflect on the different conceptualisations of the Corporation.• Draw/ write about your conceptualisation of the Corporation.• Why?• Discuss with the class.• 2 minutes

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What can be done?

Corporations should be held accountable.

The legal roots that created these corporations have to be readdressed.

Undertake Collective responsibility.

Working together to stand against corporate rule.

Independence from corporate rule.

Facilitate democratic actions within organisations

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Group Assignment

WEEK 5: Shareholder Perspective: The Gap

Key Questions:• Discuss arguments for and against sweat shops. With

which do you agree? • Does the shareholder theory dictate a particular position

with respect to sweatshops?

Readings:El Salvador and The Gap: Tee-shirts and tears’ in Pincus, L. 1998. Perspectives in business ethics: McGraw-Hill (Reading list online)Arnold and Bowie in Arnold, Beauchamp and Bowie (op cit) page 563Maitland in Arnold, Beauchamp and Bowie(op cit) page p.553

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WEEK 6: Stakeholder Perspective: Obesity and Fast Food

Key Questions:• Use the stakeholder analysis to look at the impact of fast

food (e.g. McDonalds) on each stakeholder group.• Should the sale/marketing of fast food be regulated/

restricted? If so why? If not, why not?

ReadingsFreeman in Arnold, Beauchamp, Bowie & Arnold(op cit) page 57ff Marketing Obesity: Junk food, advertising and kidshttp://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1011/11rp09

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WEEK 7: Corporate Governance and Regulation: Tobacco Regulation

Key Questions:• If tobacco is harmful to the point of being so heavily

regulated should it be made illegal?

ReadingsNewton L. and Schmidt D. Whose job is it to protect consumer health? In Wake up calls Mason, OH: Thompson South-Western p.87-110.http://www.health.vic.gov.au/tobaccoreforms/ Holley, D. 1987. Moral evaluation of sales practices: Public Interest Enterprises Inc.Ebejer, James M. & Morden, Michael (1988) Paternalism in the Marketplace: Should a Salesman Be His Buyer’s Keeper. Journal of Business Ethics, May, Vol. 7 Issue 5, p337-339.

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WEEK 8: Corporate Governance and Regulation: eNRON

Key Questions:• Discuss the Enron case with regard to the failure of

regulation. Does Enron present an argument for more or less external regulation?

ReadingsNewton L (2005) Enron: From paragon to pariah in Gini(ed) Case Studies in Business Ethics, pearson, Upper Saddle River, NJ pp.190-205 Duska and Duska (2003) Ethics In Auditing reprinted in Arnold Beauchamp and Bowie(op cit) p333.Boyd (2004) The structural origins of conflicts of interest in the accounting profession reprinted in Arnold, Beauchamp and Bowie(op cit) p.341Boatright Ethical issues in financial Services in Arnold, Beauchamp and Bowie (op Cit) p.350.

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WEEK 9: Environmental Issues: Coal mining at Maules CreekKey Questions:

• What environmental issues does the mining of coal at Maules Creek raise?• Using both CSR and regulation frameworks examine the case for and

against continued mining at Maules Creek?• Was the NSW Government justified in granting the mining licence?• Was the Commonwealth Government justified in giving it the

Environmental "go-ahead"?

Readingshttp://www.miningaustralia.com.au/news/ whitehaven-s-determination-unwavering-hoax-will-nohttp://whitehavencoal.com.au/ http://www.smh.com.au/business/mining-forcontroversy- 20130128-2dgul.htmlhttp://www.theage.com.au/business/nsw-approveswhitehaven- mine-expansion-20130125-2dbdc.htmlhttp://www.theage.com.au/opinion/politics/potentialjailing- not-as-scary-as-threat-of-maules-creekmine- 20130123-2d78s.html

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WEEK 10: Ethical Issues in Marketing: Expansion of British American Tobacco in emerging economies

Key Questions:• What are the central ethical issues in each of these

cases?• Are there any lessons that BAT might learn from Nestlé's

experience?

ReadingsPost J. The ethics of marketing: nestle infant formula in Hoffman, Frederick and Schwartz (Reading list online)British American Tobaccohttp://mona.sh/m8bNa

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WEEK 11: Ethical Issues in Marketing: Stereotyping the commodification of Identity.

Key Questions:• Identify and analyse instances of commodification in

advertising. Is this style of advertising ethically justifiable?

ReadingsSpence, E., & Van Heekeren, B. 2005. Stereotyping – The commodification of identity in Advertising ethics. Upper Saddle River, N.J.: Pearson/Prentice Hall. page 54-69.Klein N. 2000 Alt.Everything in No Logo pp. 87-112. Flamingo: London.

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WEEK 12: Human Resource Management: Drug Testing in the AFL

Key Questions:• Present arguments for and against drug testing of AFL

players. Is the current AFL policy on drug testing ethicallydefensible?

ReadingsAnti-doping codehttp://www.afl.com.au/news/2010-03-09/antidoping-code Monitoring employees through drug testing in Hartman L.P. and DesJardins J.Business Ethics: Decision-making For Personal Integrity And Social Responsibility pages 274-310

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WEEK 3:

Read the Ford Pinto Case study.Analyse using the framework from last week:

• Synopsis of case • Identification of ethical issue (what bothers me?)• Overview of appropriate theoretical frameworks• Application of frameworks to case• Possible courses of action (how could issues be

resolved)• Conclusion (opinion as to best course of action)

Thank You!!!