MGMT 3480 Saint Marys University Whistleblowing in an Organization Essay

Saint Mary’s University
Department of Management
MGMT 3480
Week 1 – Canadian Business Ethics; Academic Integrity; and
the Relationship between Business and Society
Preparation
Required Reading
• Sexty, The Relationship Between Business and
Society, chapter 1, pp.1-21
Task
➢ Upload your Initial Posting (200-250 words) to the
Discussion Board on or before January 12 and your
Response Postings (at least three Response Postings; 100150 words each) on or before January 14
4
What does ‘ethics’ mean?
5
What is “ethics?”
• Answer the question:
▫ How should I live?
• This meaning of ethics sometimes referred to as
“morality”
• Often based on religious, philosophical or cultural
grounds
• Aspect of ethics that we refer to as “personal
integrity”
▫ Your Moral Compass
6
Three Approaches to Ethical Thinking
Deontological or Rule-Based Theories
• An approach to ethics that determines the goodness or rightness of
actions by considering obligations, duties and rights of decision makers;
decisions are based upon duty and adherence to universal principals
• Rules Based Ethics
Teleological or Consequential Theories
• An approach to ethics that focuses on the outcomes or results of a
decision maker’s actions
• If the consequences are good, then the action is right (either morally
permissible or obligatory); If the consequences are bad, then the action is
wrong (impermissible)
7
Three Approaches to Ethical Thinking, cont.
Virtue Ethics
• An approach to ethics that emphasizes the individual’s moral
character (i.e. traits or virtues) and focuses on being a good
person
• Morality is based on the development of good character traits
• What virtues make a good businessperson or leader?
8
What is “ethics in business”?
•
Answer the question:
▫
▫
•
How should we live?
The ethics that apply to business
Concerned with how business institutions operate
▫
Do they meet the moral guidelines of society?

•
•
E.g. honesty, fairness and justice
Have you ever been concerned as to how a business has
operated? Treated you?
Examines business institutions from a social rather than an
individual perspective
9
Key Terms
Ethics of Business
• Rules, standards, codes, or principles that provide guidance for morally
appropriate behaviour in managerial decision-making relating to the
operation of the business enterprise’s and business’ relationship with
society
Stakeholder
• An individual or group who can influence and/or is influenced by the
achievement of an organization’s purpose
Corporate Social Responsibility (CSR)
•
The way a corporation achieves a balance among its economic, social, and
environmental responsibilities in its operations so as to address stakeholder
expectations
10
Key Terms
Corporate Sustainability (CS)
• Corporate activities demonstrating the inclusion of social and
environmental as well as economic responsibilities in business operations
as they impact all stakeholders to ensure the long-term survival of the
corporation
Triple Bottom Line
• The evaluation of a corporation’s performance according to a summary of
the economic, social or ethical, and environmental value the corporation
adds or destroys
Corporate Citizenship
• A corporation demonstrating that it takes into account its role in and
complete impact on society and the environment as well as its economic
influence
11
Canadian Business System: Key
Terminology
Capitalism
• An economic system based on private ownership of the means of
production; see Adam Smith
Free Enterprise System
• An economic system where few restrictions are placed on business
activities and ownership; a competitive market system / limited
government
Laissez-faire Capitalism
• An economic system in which transactions between private parties are
free from intrusive government (only provide essential services)
restrictions, tariffs, and subsidies; absolute minimum interference by
government
12
Canadian Business System: Key
Terminology
Responsible Enterprise System
•
Free enterprise but with accountability
Stakeholder Capitalism
•
•
Corporations accept broader obligations beyond financial
ones for shareholders
Expected to behave with greater social responsibility and be
sensitive to the ethical consequences of their actions
Clean Capitalism
• Capitalism with social responsibility
13
The Consent of Society
Legitimacy:
• Belief in the rightness of an institution, in this case the
appropriateness of our business system to supply the goods
and services wanted by Canadian society
• Trust and confidence that the business system operates in the
public interest
• To be legitimate, the business system must respond to the
changing expectations of society
14
The Consent of Society, cont.
Social Licence, i.e. Social Licence to Operate
• Is the privilege of operating in society with minimal formalized
restrictions based on maintaining public trust by doing what is
acceptable to stakeholders in the business and society
relationship
• Must be earned and maintained
15
Factors Influencing Attitudes Toward
Business
Standard of Living
• As living standards increase, it is more likely society will view business in a
positive manner
Decentralized Decision Making
• Independent decision-making amongst business ensures a wide variety of
goods and services are available
Allocation of Resources
• Based on price and availability
Self-interest
• Key stimulus to the operation of the business system
• Acts as a motivator; provides the drive for profit
• Can be hazardous as well = greed
16
Factors Influencing Attitudes Toward
Business, cont.
Inequities in Society
• Capitalism leads to inequities / discrimination against some groups
economically
Business Cycle
•
Natural in a market system; see GDP // prosperity followed by recessions
can bring hardship
Business Wrongdoing
• Corporate misdeeds, e.g., bribery, insider trading, etc., workplace health
and safety issues
Globalization
• Business increasingly conducted on a global scale
• Comes with opportunities and challenges, e.g. job losses, working in other
countries,
17
Factors Influencing Attitudes Toward
Business, cont.
Unemployment
•
•
Clearly associated with a country’s economic performance
Canada’s current unemployment rate 7.21% (directly the result of COVID19)
Innovation
•
Constant change, and adapting to it
Popular Media
•
Influence society’s views of business // some positive and some negative
Government
• Mutually dependent relationship // this relationship is described
throughout the course
18
Social Media
Balancing Harms versus Benefits
• Various forms of interaction / communication enabled by
technology-based tools
• Can influence business in unique ways:
▫ Exchanges of information are instant, often interactive, cover all
topics, require minimum knowledge of technology
▫ Costs are low
▫ Enables society to hold business more accountable
• Several issues in HR area to consider
▫ How much time is spent on social media during working hours
▫ Making negative comments about employers
▫ Scanning social media for potential employees
19
Social Media
Balancing Harms versus Benefits, cont.
• Security and privacy issues
▫ Corporate sites are hacked
• Cyberbullying
• Written policies on social media use
▫ https://novascotia.ca/treasuryboard/manuals/PDF/300/30609-03.pdf
• What principles should guide social media use?
• Honesty, trust, openness, respect, fairness
20
Academic Integrity
• What percent of students cheat?
▫ 53 percent of students admit to cheating in written
assignments (Maclean’s, 2007)
 Statistic is dated; do you suspect it is higher today?
▫ 56 percent of business students admit to cheating
(Maclean’s, 2007)
▫ 44% of Professors said they didn’t report students caught
cheating
▫ Will the lack of academic integrity have an influence on
business integrity?
▫ Why do students cheat on tests, assignments, etc.?
21
Integration of Business and Society
• Must be a shared value in which both business and
society benefit
• Goal is to reduce friction between society and
business and to increase the benefits for both
22
Personal Integrity vs. Social
Responsibility?
• Decisions involve both manager’s personal integrity
and their organizations’ social responsibilities
creating decision making dilemmas
▫ What should I (we) do?
▫ How should I (we) act?
23
Ethics and Individual Values
1.
What are values?
2.
Where do they come from?
3.
What do we value?
4.
Who do we value?
5.
How do we use these values in decision making?
24
What are Values?
• Values are those beliefs that incline us to act or to
choose in one way rather than another
• An enduring belief that a specific mode of conduct
(e.g., honesty) or end-state (e.g., happiness) is
personally and socially preferable to alternatives
• Values = What we believe is most important
25
Sobey School of Business Values
✓ Integrity
✓ Respect
✓ Intellectual Curiosity
✓ Responsibility
✓ Accountability
26
Critical Thinking Question
• Can a person with strong values be an immoral
person?
• Examples?
Discussion Questions
• Located under Discussions on Brightspace
Saint Mary’s University
Department of Management
MGMT 3480
Week 3 – Capitalism and its Challenges; Conscious
Capitalism
Preparation
Required Reading
• Sexty, Ethics and Capitalism, chapter 2, pp. 22-41
Task
➢ Upload your Initial Posting (200-250 words) to the
Discussion Board on or before January 19 and your
Response Postings (at least three Response Postings; 100150 words each) on or before January 21
4
Introduction to the Fundamentals of
Capitalism
•
The Canadian economic system has been, and still is, largely
comprised of business enterprises operating in a market
system
•
Majority of the goods and services wanted by Canadians are
provided by the market system, which coordinates /
organizes economic activity
•
How does business work for you?
▫
What good and services do you encounter on a typical day?
5
Introduction to the Fundamentals of
Capitalism
• The theory of capitalism can be described by
examining the eight fundamental elements of such
a system
• Capitalism requires a strong system of ethical
behaviour, without it, the government / justice
system will intervene
6
1. The Right of Private Property
• The legal right to own and use economic goods—for example, land and
buildings
▫
Provides a sense of security; sense of destiny; pride; develop a respect for the
property of others; sense of satisfaction
• Ethical Implications:
▫
▫
▫
Uneven distribution of wealth → demands for more equitable distribution by
government action, i.e., taxation
Infringement of copyright rights; intellectual property; patents; trademarks
HAVE ANY OF YOU VIOLATED INTELLECTUAL PROPERTY RIGHTS IN THE PAST
WEEK?
• Membership rights (e.g., labour unions) are sometimes preferred over
individual rights; having property in private hands vs. by gov’t or some
form of collective (gov’ts and aboriginal peoples)
7
2. Individualism & Economic Freedom
• Individualism: The view that the individual, and not society or a
collective, is the paramount decision maker in society; assumes that the
individual is inherently decent and rational; behaves in their own selfinterest with little authority being exercised over them
• Linked to freedom
▫
Economic freedoms: Exist when the business system operates with few
restrictions on its activities; the list here is endless
• Ethical Implications:
▫
▫
Desirability of individual versus collective (Unions / cooperatives) action
Desirability of individual vs. collective action, and the extent to which economic
freedoms should exist
8
3. Equality of Opportunity
• The assumption that all individuals or groups have an even
chance at responding to some condition in society
▫ An ‘Equal’ chance to succeed
• Ethical Implications:
▫ Difficult to achieve in a capitalistic system
▫ Why?
• Wealth created not distributed equally
• Move towards social, educational and culturally leveling
• Inequities such as layoffs, drops in living standards,
excessively high executive salaries
9
4. Competition
• The condition in a market system in which many rival sellers
seek to provide goods and services to many buyers
• It’s natural /desirable; Invisible hand that is responsible for
the orderly operation of the market
• Ethical Implications:
▫ Oligopolies (few sellers in industry) or even monopolies (one seller) can
be created
▫ More difficult for some firms to enter certain industries (plant size to
achieve economies of scale)
▫ Firms might engage in anti-competitive activity
10
5. Profits
• The excess of revenues over expenses; closely associated
with competition; measure of effectiveness; they can be used
as businesses wish
• Ethical Implications:
▫
▫
▫

Profits sometimes viewed with disdain or as immoral
WHY?
How do you feel?
Are these profits reasonable at a time when consumers are paying high
service fees, etc.?
 Should excessive profits be taxed by governments?
11
6. The Work Ethic
• A code of values, or a body of moral principles, claiming that
work is desirable, a natural activity, and good in and of
itself
▫
‘Worthy’, ‘Admirable’, & ‘Socially Valuable’
• Ethical implications:
▫ Government programs and society’s expectations have influenced
individuals’ attitudes toward work
▫ Individuals now expect more from government and business
enterprises in terms of working conditions, benefits, and salaries
• Do all of you have a good work ethic?
▫ How so?
12
7. Consumer Sovereignty
• Consumers have and exercise power over producers through
the decisions they make in purchasing the goods and
services provided by corporations
• Consumers dictate the types, styles, and quality of goods and
services provided by business
• Ethical Implications:
▫
▫
▫
▫
▫
▫
Consumers not always aware of alternative products available
Consumers don’t always understand the technical complexities of many goods
and services
Issue of choice, or lack thereof
Consumers’ preferences are shaped by persuasive advertising
Too many products / brands, with too little difference
Producers have power to ignore consumer wishes
13
8. The Role of Government
• Laissez-faire approach (“leave us alone”) suggests minimal
involvement of government
• Government provides national security, internal law and
order, system of currency and measures, contracts, etc.
14
8. The Role of Government, cont.
• Ethical Implications:
▫ Influential stakeholder; greater involvement in the economy in Canada,
than the U.S.
▫ Government now extensively involved in the economy through:








Subsidies (see financial aid to U.S. farmers)
Taxation (Federal, provincial, property, HST, etc.)
Tariffs (see current trade spats the U.S. is having with Canada, China and the
EU)
Regulations (environmental, etc.)
Legislation (laws and bills)
Loans (government steps in to helps firms and businesses)
Grants (to cultural organizations)
Ownership (CBC, pipelines)
▫ Government can restrict capital movement, impose product standards,
prevent businesses from shutting down plants
15
Canadian and Other Forms of
Capitalism
Capitalism
• An economic system that allows for private ownership of the means of production
(land, labour, and capital) and assumes that economic decision-making is in the
hands of individuals or enterprises that make decisions expecting to earn a profit
Common Forms of Capitalism:
•
Consumer Capitalism
▫
▫
•
United States, Britain, Canada, Australia
Gov’t involvement in the economic system is limited; open borders; consumers have
plenty of influence over the market
Producer Capitalism
▫
▫
Economic controls / planning in the hands of a centralized government; referred to as a
social market economy; generous social welfare; corporatism
Germany, France, Japan, Mexico
16
Canadian and Other Forms of
Capitalism
Common Forms of Capitalism, cont.:
• Family Capitalism
▫ Extended clans dominate business activities and control capital flows
▫ Taiwan, Malaysia, Thailand, Indonesia
• Frontier Capitalism
▫ Capitalism is in its beginning stages
▫ Rule of law is not clearly established, and criminal activity fills the void
▫ Russia, China
17
Canadian and Other Forms of
Capitalism
Other forms of Capitalism gaining notoriety
• Conscious Capitalism
▫ Reorientation of business from a single focus on profits to emphasis being
placed on higher standards of corporate behaviour; social responsibility
• Creative Capitalism
▫ Resolution of social needs the primary goal of economic activity
• State Capitalism
▫ Governments manipulate market outcomes for political / social purposes, e.g.,
government action after 2008 financial crisis
18
The Ethics of Capitalism
The Challenges
•
Greed – excessive and selfish form of self-interest where individuals
desire more of something than what is needed or fair
▫
•
•
•
•
http://www.bing.com/videos/search?q=gordon+gekko+on+greed+on+youtube
&F
ORM=VIRE1#view=detail&mid=68893E03320F765B0BA668893E03320F765B0
BA6
Mistrust – businesses must build trust with both internal and external
stakeholders
Economic downturns – economic cycles are a feature of capitalism, see
2008 collapse of financial institutions
Business failures – implications for gov’t, employees and investors
Corporate crime and wrongdoing – harms the reputation of businesses
19
Wrap-up
• Questions?
Saint Mary’s University
Department of Management
MGMT 3480
Week 4 – Ethical Decision Making and Moral
Reasoning
Preparation
Required Reading
• Sexty, The Theoretical Basis, chapter 5, pp. 86-91,
98-105 and 92-98
Task
➢ Upload your Initial Posting (200-250 words) to the
Discussion Board on or before January 26 and your
Response Postings (at least three Response Postings; 100150 words each) on or before January 28
4
How do we assess the ethical
implications of decisions?
1. What influences our ethical behaviour?
2. What causes unethical behaviour in
organizations?
3. Why do good people do bad things?
5
Key Questions
1. What are the approaches to assessing the ethical
implications of decisions?
2. What are the ethical lenses that we can use?
3. What challenges do people face in trying to make
ethical decisions?
6
Business Ethics
• Business Ethics
• Rules, standards, codes, or principles that provide guidelines
for morally right behaviour and truthfulness in specific
situations
7
Ethical Implications in Business Levels of
Ethical Assessment
• Value judgments: subjective evaluations of what is
considered important
▫ Based on how managers intuitively feel about the goodness or
rightness of various goals
• Moral standards: the means by which individuals judge their
actions and the actions of others
▫ Based upon accepted behaviour in society; vary by culture, country and
time
• HAVE ANY OF YOU EVER MADE A VALUE OR
MORAL JUDGEMENT?
8
Influences on Ethical Behaviour
Influences become the bases for an individual’s value
judgments and moral standards that determine
behaviour
1. Influences on Individuals – Family, home, religion, education
1. Corporate or Organizational Influences – Superiors,
colleagues, corporate mission statements, codes of conduct,
business / industry organizations like the Better Business
Bureau (BBB), professional organizations for professions like
lawyers, dentists, engineers, doctors have ethical codes that
govern their behaviour
9
Influences on Ethical Behaviour, cont.
3. Economic Efficiency Influences – Corporation’s success =
social betterment; enhance…
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