YP52B MM5001 Business Ethics Law Sustainability

Business Ethics, Law, and Sustainability 1

MM5001

BUSINESS ETHICS, LAW AND SUSTAINABILITY

YP52B

August 2015

MASTER OF BUSINESS ADMINISTRATION INSTITUT TEKNOLOGI BANDUNG

http://www.sbm.itb.ac.id/mba

INSTITUT TEKNOLOGI BANDUNG

MBA Programme Gradua teSc hoo l o f Bus iness

http://www.mba.itb.ac.id


CONTENTS

Page

Facilitator Profile 3

Course Description 4

Expected Learning Outcomes 5

Course Outline 5

Learning Guidance 5

Prerequisite 5

Learning Method 5

Presentations 6

Pre Assignment 6

Class Participation 6

Mid-term Examination 7

Final Examination 7

Grading Policy 7

Reading Materials 7

Guest Speakers 8

Course Schedule 9


FACILITATOR PROFILES

YudoAnggoro, Ph.D (Course Coordinator) Nick Name : - e-mail : [email protected]

YudoAnggoro, Ph.D is a faculty at School of Business and Management, Bandung Institute of Technology (SBM ITB). He received his PhD in Public Policy with minors in Industrial Policy and Economic Competitiveness from the University of North Carolina, Charlotte, US in 2015. Dr. Anggoro completed his bachelor degree in Industrial Engineering at Bandung Institute of Technology (ITB) in 2004. After working at Citibank Indonesia for 2 years, he received full scholarship to pursue master degree in Management Science from SBM ITB, and graduated as best student in 2009.

Dr. Anggoro’s research interests are economic competitiveness, industrial policy, transportation and infrastructure policy, public management, regional economic development, government performance, leadership, public economics and strategic management. He is a Fulbright scholar

M. MovaAl’Afghani, Ph.D Nick Name : - e-mail :

COURSE DESCRIPTION

The importance of ethical behavior and compliance with law, in business management is widely

recognized. This course is to make business participants aware of the importance of compliance and

integrity in a wider business environment. Transparency and accountability is becoming more and more

a necessity to earn a “social & legal contract”, i.e. a permission to be in business. Indonesian business is

still facing a daunting challenge to improve its reputation, to reduce overall perceived corruption and to

guarantee the international global business community that it will respect the international rules of the

game. Implementation and compliance with Indonesian law and international conventions will be

assessed in this course.

EXPECTED LEARNING OUTCOMES The objective of the Business Ethics and Business Law course is to provide participants with a broad

understanding of the ethical and legal challenges that may arise in their business activities.

At completion of this course, the participants will be able to respond to these challenges in a manner

that will benefit both their careers and the success of the business.


COURSE OUTLINE The course consists of several modules that cover:

Reputation Risk: This module focuses on the importance of ethical behavior to the reputation

of both individuals and organizations.

Governance: This module focuses on governance and corruption, cultural interpretations and

how to curb corruption at the individual and organizational level.

Human Rights&Intellectual Property Rights: This module focuses on two broad issues of global

concern, including core human values.

Corporate Social Responsibility: This module covers issues related to corporate social

responsibility

LEARNING GUIDANCE

PREQUISITES No prerequisites, aside from management experience, are required for this course.

LEARNING METHOD

The case method and other interactive methods are used throughout the subject. Class

members are encourages to incorporate concepts from assigned readings into their analysis of

the case. The case nethod may include both large group discussions and/or presentations by

syndicate teams. All class members are expected to have read each case and reflected upon the

assigned questions, whether or not their team has been assigned the case.

PRESENTATIONS In some sessions, syndicates may be randomly assigned to make presentations of their case

analysis to the entire class at the time of case will be discussed. Therefore all syndicates

should make appropriate preparations.

The audience for the case presentations are the other members of the class. Please address

your talk to them. The syndicates may make the presentation as a team, or assign a

spokesperson to each case. In any case the syndicates should ensure that all team members

have any equal opprotunity to participate in the presentations.

The criteria for measuring the effectiveness of presentations include:


1. Ability to stimulate interest among classmates

2. Ability to relate concepts from the readings to the issues in the specific situation

3. How well the discussion drew out insights and ideas from the participants

4. How well organised was the discussion

5. How comprehensive was the analysis

Some specific case questions are usually provided to help you to prepare the case reports, but

your own ideas and creativity are paramount. Keep the reports concise. There is no need to

summarise the case materials. Simply get to the main points and provide your analysis and/or

recommendations with supporting justification.

PRE ASSIGNMENTS

On occasion students will be asked to prepare a short summary of particular cases or reading

materials. This summary will be due at the beginning of a module.

CLASS PARTICIPATION Active participation is expected throughout the entire class and students should make

thoughtful contributions to the discussion. Please note that frequency (i.e. quantity) of

contributions in class is not the major criteria for effective class participation. The classroom

should be considered a laboratory in which the student can test his/her ability to convince peers

of the correctness of one’s approach to complex problems and one’s ability to achieve the

desired results by using that approach. Criteria that are useful in measuring effective class

participation include:

1. Is the participant a good listener?

2. Are the points that are made relevant to the discussion? Are they linked to the

comments of others?

3. Do comments show evidence of incorporating the concepts from readings into the

analysis of the case?

4. Is there a willingness to test new ideas, or are all comments ‘safe?’ (‘safe’ is defined as

simply repeating case facts without analysis and conclusions).

5. Do comments clarify or build upon the important aspects of earlier comments and lead

to a clearer statement of the concepts being covered and the problems being

addressed?

Mid-term Examination: BUSINESS ETHICS


This will be held on Thursday, 15thOctober 2015.

Final Examination: BUSINESS LAW This will be held on Thursday, 3rd December 2015.

GRADING POLICY Grading of this course is based on whether or not participant’s performance meets the module

standards for completion and proficiency in the subject materials.

Your final grade will be weighted as follows:

Aspect % Description

PreAssignments 10% Individual grade by team members

Participation 30% Individual grade by facilitator/team

Mid-term Examination 30% Individual grade by facilitator

Final Examination 30% Individual grade by facilitators

READING MATERIALS

Required text books:

Weiss, Joseph W. Business Ethics: A Stakeholder and Issues Management Approach. Thompson

South-Western. 2006

Reference books and recommended reading: to be specified.

GUEST SPEAKERS

Guest speakers may be invited and scheduled at their convenience.


COURSE SCHEDULE

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM

Course Title Business Ethics Course

Module 1: Thu,Aug27th

2015 Intro to Business Ethics

13:00 – 14:30 Session 1 (YA)

1. Topic: Introduction and Syndicate appointment

2. Issues covered:

What is business ethics?

Shareholder versus Stakeholder Theory

3. Activity: Interactive lecture

4. Reading: Ethics: A Basic Framework (9-307-059)

Jaan Elias and J. Gregory Dees, “The Normative

Foundations of Business” (HBS Note 9-897-012)

5. Case: None

14:30-14.45 Break

14:45-16:15 Session 2 (YA)

1. Topic: Business Ethic, Banking and International Law 2. Issues covered: Industrial property and copyrights

3. Activity: Syndicate presentation (15’) followed by a large group

discussion led by the syndicate (30’) and lecture (45’)

4. Reading: - 5. Case#1: Collections and crime: the case of Citibank in Indonesia

6. Guidance: Participants and syndicates should analyze the case;

identify critical issues and their potential solutions.

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 2: Thu, Sept3rd

, 2015 Human Rights and Reputation

13:00 – 14:30 Session 1(YA)

1. Topic: Human Rights in the Workplace - gender related issues

2. Issues covered: Harassment, discrimination



4. Reading: Note on the Law of Sexual Harassment (9-398-024)

5. Case#3:PT ISIN

6. Guidance: Participants should analyze the case, identify critical

issues, and their potential solutions.

14:30 – 14:45 Break

14:45 – 16:15 Session 2(YA)

1. Topic: Human Rights in the Workplace - child labor plus

2. Issues covered: -



4. Reading: -

5. Case#4: International Sourcing in Athletic Footwear: Nike and


Reebok (9-394-189) 6. Guidance: Participants and syndicates should analyze the case,

identify critical issues, and their potential solutions.

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 3: Thu,Sept17th

,

2015

Reputation Risk and IPR

13:00 – 14:30 Sessions 1(YA)

1. Topic: How an organization’s behavior affects reputation

2. Issues covered: Business ethics and public relations



4. Case#6: H.B. Fuller in Honduras, and

Case#7: The Tyenol Crises

http://www.personal.psu.edu/users/w/x/wxk116/tylenol/crisis.html

5. Guidance: Comparing the response of companies in the two cases

14:30-14:45 Break

14:45 – 16:15

Session 2(YA)

1. Topic: Trust and Stakeholder Theory/Corporate Social

Responsibility

2. Issues covered: Managing shareholder value and stakeholders

interests

3. Reading: (1) Rethinking the Social Responsibility of

Businesshttp://www.reason.com/news/show/32239.html, The

SocialResponsibility of Business is to Increase its Profits,

AStakeholder Theory of the Modern Corporation: Kantian

Capitalism



5. Case#8:Merck & Co. A (9-991-021)

6. Guidance: -

7. Handout: Merck & Co. B (9-991-022)

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 4: Thu,Oct1st, 2015 Corporate Social Responsibility and Sustainability

13:00 – 14:30 Session 1 (YA)

1. Topic: Corporate Social Responsibility

2. Issues covered: CSR concept, community development

3. Activity: Interactive lecture

4. Case: No case

5. Reading: Lynn Sharp Paine, “Corporate Purpose and

Responsibility” HBS 9-396-201)

6. Guidance: Participants should analyze the case, identify

critical issues, and prepare to discuss them

http://www.reason.com/news/show/32239.html


14:30-14:45 Break

14:45 – 16:15

Session 2(YA)

1. Topic: A failure in corporate ethics

2. Issues covered: Collusion among business players and auditors



4. Case#9: Enron Corp.

5. Reading: -

6. Guidance: Participants should analyze the case, identify critical issues, and prepare to discuss them

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 5: Thu,Oct15th

, 2015 Ethics in Different Culture

13:00 – 14:30 Session 1 (YA)

1. Topic: Board Diversity and Cross-Cultural Management

2. Activity: Case discussion

3. Case#10: HM Sampoerna – Challenge of Cross-Cultural

Management 4. Guidance: All analyze the case, answer questions, and discuss

14:30-14:45 Break

14:45 – 16:15

Session 2 (YA)

1. Topic: CSR in different culture



3. Case#11: MihneaMoldoveanu and Lynn Sharp Paine, “Royal

Dutch/Shell in Nigeria” (HBS Case 9-399-126)

4. Guidance: Participants should analyze the case, identify critical

issues, and prepare to discuss them

Mon, Nov

16th

, 2015

Final Examination: BUSINESS ETHICSSubject (YA)

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 7: Thu,Oct 22nd

,

2015

Good Governance and Corruption

13:00 – 14:30 Session 1 (MM)

1. Topic: Introduction to Good Governance and Corruption Theories

2. Activity: Teaching and Brainstroming, Presentation 3. Materials:

World Bank. Public Sector B, Reforming Public Institutions and Strengthening Governance: A World Bank Strategy, November 2000 (World Bank-free PDF 2000)

• Kaufmann D, Kraay A and Zoido-Lobaton P, ‘Governance Matters', World Bank Policy Research Working Paper No. 2196’


October Washington DC: The World Bank • Klitgaard R, ‘Strategies against corruption’ (Presentation at

Agencia Española de CooperaciónInternacionalForoIberoamericanosobre el Combate a la Corrupción, Santa Cruz de la Sierra, June, 15-16 1998)

14:30-14:45 Break

14:45 – 16:15

Session 2 (MM)

1. Topic: Corruption Case Study and Analysis

2. Activity: Group Discussion: Individual Assignment on Corruption Case

Study

3. Case#11: Case Study Sheet (Choose between Hambalang or Beef Import

Graft)

4. Materials:

Engle E, I Get by with a Little Help from My Friends? Understanding the UK Anti-Bribery Statute, by Reference to the OECD Convention, and the Foreign Corrupt Practices Act (2011)

• Jordan J, ‘Recent Developments in the Foreign Corrupt Practices Act and the New UK Bribery Act: A Global Trend Towards Greater Accountability in the Prevention of Foreign Bribery’ 7 NYUJL & Bus 845

• Wagner BB and Jacobs LG, ‘Retooling Law Enforcement to Investigate and Prosecute Entrenched Corruption: Key Criminal Procedure Reforms for Indonesia and Other Nations’ 30 U Pa J Int'l L 183

• Law V, ‘US FCPA vs UK Bribery Act’ <www.transparency-usa.org/documents/FCPAvsBriberyAct.pdf> accessed August 17, 2013

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 8: Thu,Oct 29th

,

2015

Employment and Labor Law

13:00 –14:30 Session 1 (MM)

1. Topic: Regulating Industrial Relation

2. Activity: Presentation 3. Materials:

Undang-undang No. 21/2000 tentangSerikatPekerja/SerikatBuruh

• Undang-undang No. 13/2003 tentangKetenagakerjaan

(sesuaidenganPutusanMakhkamahKonstitusi No. 012/PUU-I/2003)

• Undang-undang No. 2/2004

tentangPenyelesaianPerselisihanHubungan Industrial

• PutusanMahkamahKonstitusiNomor 19/PUU-IX/2011

TentangPengujianUndangUndang 13 Tahun 2003

TentangKetenagakerjaan

• van Voss GJJH and Tjandra S, Bab-babtentanghukumperburuhan

Indonesia (PustakaLarasan 2012)

• Botero JC and others, ‘The regulation of labor’ 119 The Quarterly


Journal of Economics 1339

• Manning C and Roesad K, ‘The Manpower Law of 2003 and its

implementing regulations: Genesis, key articles and potential

impact’ 43 Bulletin of Indonesian Economical Studies 59

14:30-14:45 Break

14:45 – 16:15

Session 2 (MM)

1. Topic: Role Playing Game; Negotiation in “Mass Layoff”

2. Activity: Role Play

3. Materials: van Voss GJJH and Tjandra S, Bab-babtentanghukumperburuhan Indonesia (PustakaLarasan 2012) Kasus 4 (PHK Massal)

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM


Module 9: Thu,Nov 5th

,

2015

Alternative Dispute Resolution & Foreign Investment

13:00 – 14:30 Session 1 (MM)

1. Topic: ADR Theories & Analysis

2. Activity: Teaching

Materials:

Edwards HT, ‘Alternative dispute resolution: panacea or anathema’

99 Harv L Rev 668

• Banani DD, ‘International arbitration and project finance in

developing countries: blurring the public/private distinction’ 26 BC

Int'l & Comp L Rev 355

• Rubins N, ‘Enforcement and Annulment of International Arbitration

Awards in Indonesia, The’ 20 Am U Int'l L Rev 359

• Winarta FH, ‘SaranaUtamaPenyelesaianSengketaBisnis’ Bisnis

Indonesia (Jakarta, Wednesday April 24, 2013)

• Suparman E, ‘PerkembanganDoktrinPenyelesaianSengketa di

Indonesia’ <http://resources.unpad.ac.id/unpad-

content/uploads/publikasi_dosen/1H%20Perkembangan%20Doktrin

%20Peny-Sengketa.pdf> accessed September 1, 2013

• UndangUndangNomor 30 Tahun 1999

TentangArbitrasedanAlternatifPenyelesaianSengketa

14:30-14:45 Break

14:45 – 16:15

Session 2 (MM)

1. Topic: Foreign Investment and Indonesia


3. Materials:

Butt S, ‘Foreign Investment in Indonesia: The Problem of Legal

Uncertainty’ in Bath V and Nottage L (eds), Foreign Investment and

Dispute Resolution Law and Practice in Asia (Routledge 2011)

• UndangUndangNomor 25 Tahun 2007 TentangPenanaman Modal


Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM



,

2015

Corporation and Critical Issues in Business Law

13:00 – 14:30 Session 1 (MM)

1. Topic: Identification of Critical Issues in Business Law

2. Activity: Movie and Discussion

Materials:

Work Sheet on Critical Issues in Business Law from “The

Corporation”

14:30-14:45 Break

14:45 – 16:15

Session 2 (MM)

1. Topic: Business and Human Rights


3. Materials:

Ruggie J, Report of the Special Representative of the Secretary-General on

the issue of human rights and transnational corporations and other

business enterprises, John Ruggie; Guiding Principles on Business and

Human Rights: Implementing the United Nations “Protect, Respect and

Remedy” Framework (A/HRC/17/31, 2011)

• Ruggie JG, ‘Business and human rights:

Course Code

MM5001

Credit Hours

3 SKS YP PROGRAM



,

2015

Environment and Extractive Industries

13:00 – 14:30 Session 1 (MM)

1. Topic: Environmental Issues in Indonesia

2. Activity: Movie and Presentation

Materials:

D'Hondt LY, ‘Indonesia's Environmental Law of 2009 and its

Administrative Coercion Provisions: A Conceptual Misunderstanding

with Large Practical Implications?’ Available at SSRN 2289123

• Supreme Court of Indonesia, The Administrative Judge and

Environmental Law (Questionnaire) (Association internationale des

hautesjuridictionsadministratives, Cartagena Congress 2013, 2013)

• Environmental Law 32/2009

14:30-14:45 Break

14:45 – 16:15

Session 2 (MM)

1. Topic: Extractive Industries

2. Activity: Group Discussion


3. Materials: Welker MA, ‘“Corporate security begins in the community”: Mining, the

corporate social responsibility industry, and environmental advocacy in

Indonesia’ 24 Cultural Anthropology 142

• Devi B and Prayogo D, Mining and Development in Indonesia: An

Overview of the Regulatory Framework and Policies (International

Mining for Development Center, 2013)

• Mining Law 4/2009

YP52B MM5001 Business Ethics Law Sustainability

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