All Presentations

The Man in the Mirror:
Sebastian’s Dilemma
KSOM
What should he do? And why? What he did and why?
• Do Nothing • Took action
– Why? …….. – Justification
• Exploit the situation – As individual
– Why? – As economic agent
– As a company leader
• Take action
– As boundary spanner
– Why?
BECSR: 202-21 Individual Moral Development 1

What Should Sebastian Do?
Do Nothing – Resign & Go Home
KSOM
Approaches to Ethics
Spheres of Executive Responsibility
Utilitarian Rights Fairness Common Virtue

Approach Approach or Justice Good Approach
Approach Approach
Private √
Individual_ X
Economic Agent √
?
Company √ √
Leader ?
Responsibilities √
outside the
firm?
What should Sebastian do? Do nothing? Exploit the situation? Take action?

Exploit the Situation- Sign & Bargain for Favours
KSOM

Approach Approach
Private √
Individual_ X
Economic Agent √
?
Company √ √
Leader ?
outside the
firm?

Take Action – Expose the Corruption
KSOM

Approach Approach
Private √
Individual_ √
Economic Agent √
√
Company √ √
Leader √
outside the
firm√

The Man in the Mirror:
The Real details
KSOM
• Sebastian: Lieutenant-Colonel Ian Foxley
• Sumeria: Saudi Arabia
• EuroCorp: EADS, based in Holland, Europe's biggest
defense and aerospace company.
• MidCo: GPT
• Martin: Mike Paterson
• Sequel: Ian Foxley lost in the court, didn’t get a job in
his area of expertise, worked for an IT Start up

The Bofors Scandal
KSOM
• Sten Lindstrom, former chief of Swedish police,
leaked the documents to Chitra Subramaniam Duella
• Kickbacks paid in a US$1.4-billion deal between the
Swedish arms manufacturer Bofors with
the government of India for the sale of 410 field
howitzer guns – 155mm (24.03.1986)
• Defeat of Gandhi's ruling Indian National Congress
party in the November 1989 general elections.
• Company went bankrupt

Moral Development
KSOM
• Objective
– Gain insights into the processes for individual and
corporate moral development
• Intended learning outcomes
– Identify your stage of moral development and
work towards progressing to the desired stage
– Identify the stage of corporate moral development
of a typical organization and develop perspectives
to graduate to a desired stage ►

Moral Behavior ← Moral Development:
Four Component Processes
KSOM
1.Moral sensitivity: Interpreting the situation &
identifying a moral problem [empathetic concern]
2.Moral Judgment: Figuring out what one ought to do &
formulating a plan of action that applies the relevant
moral standards/ ideal [defining issue test- P Score]
3.Moral Motivation: Evaluating how the various courses
of action serve moral or non-moral values and deciding
which action a person will actually attempt to pursue
[perspective taking – Rokeach Value Survey]
4.Moral Character/ Implementation: Implementing the
moral course of action [conscientiousness- Big5]►
Moral sensitivity
KSOM
Interpersonal Reactive Index
• receptivity to social situations, and being able
to interpret the situation in terms of what
actions are possible, the impact of those
actions on others, and the reactions of others
to one’s actions ↓
• Empathy - Interpersonal Reactivity Index (IRI)
consisting of four seven-item subscales►

empathetic concern
Interpersonal Reactivity Index (IRI)
A=0, B=1, C=2, D=3, E=4
( ): A=4, B=3, C=2, D=1, E=0

KSOM
The perspective The empathic The personal The fantasy (FS)
taking (PT) concern (EC) distress (PD)
#Q Choice Score #Q Choice Score #Q Choice Score #Q Choice Score
(3) 2 6 1
8 (4) 10 5
11 9 (13) (7)
(15) (14) 17 (12)
21 (18) (19) 16
25 20 24 23
28 22 27 26
EC& PD: Affective Empathy PT & FS: Cognitive Empathy

Interpersonal Reactivity Index:
Sensitive to the feelings of others
KSOM
• The Perspective-Taking tendency to spontaneously adopt
the psychological point of view of others
• Fantasy scale taps respondents' tendencies to transpose
themselves imaginatively into the feelings and actions of
fictitious characters in books, movies, and plays.
• The Empathic Concern scale assesses 'other-oriented'
feelings of sympathy and concern for unfortunate others
• Personal Distress scale measures 'self-oriented' feelings
of personal anxiety and unease in tense interpersonal
settings

Moral Judgment
The Defining Issue Test- “P” Score
KSOM
• it emphasizes the role of cognition;
• it highlights the personal construction of the
epistemological categories;
• it portrays change over time in terms of
development; and
• it characterizes the developmental change of
adolescents and adults in terms of a shift from
conventional to post-conventional moral
thinking►
Lawrence Kohlberg’s
KSOM
Theory of Moral Development

Scoring:
The Defining Issues Test
KSOM
P SCORE
Importance
2nd
Most Most 3rd Most 4th Most
The Escaped
Prisoner
The Doctor’s
Dilemma
The Newspaper
1&2 3&4 5&6

Count:

Moral Motivation
KSOM
Rokeach Value Survey
Motivation to select moral value over other values
• Terminal values-
– Self focused- personal values
– Others focused- social values
• Instrument values
– Violation results in guilt- moral values
– Violation results in shame about personal
inadequacy- self-actualization values►

Moral Character
KSOM
20 item Scale- Conscientiousness
• self-confidence, self-efficacy, perseverance,
and tenacity in being able to work around
problems and unexpected difficulties in
implementing the desired course of action
• Conscientiousness- governed by or confirming
to the dictates of conscience’’ i.e., ‘‘the sense
of moral goodness or blameworthiness of
one’s own conduct, intentions, or character
together with a feeling of obligation to do
right or be good►
Moral Reasoning Differs In Different
Cultures Along Five Dimensions
KSOM
1. Relative emphasis given to self-derived principles and
collective solidarity
2. Moral behavior as an aspiration or personal choice
while others may consider it an obligation or duty
3. some cultures may prescribe alternative post-
conventional codes such as those relating to
interpersonal responsibilities rather than justice
obligations
4. Differ in the extent to which they distinguish between
moral norms and social conventions
5. Perception of the ultimate beneficiary of moral action
The six systems of Vedic philosophy
KSOM
1. Yoga: Self-Discipline for Self-Realization
2. Sankhya: Framework of manifestation/
analysis of matter and spirit),
3. Vedanta: Contemplative self-inquiry
4. Vaisheshika: Physical sciences/ atomic theory
5. Nyaya: The Philosophy of Logic and
Reasoning
6. Mimasa: Freedom through action►
Components of
Individual Moral Development
KSOM
• Ethical sensitivity: the individual must be able to
identify a moral dilemma ⇓
• Ethical judgment: the individual forms a judgment on
the ideal solution to the moral dilemma ⇓
• Ethical intention (motivation): the individual’s
intention to comply or not comply with the ideal
solution is formed ⇓
• Ethical behaviour (action): the individual develops
the courage to follow through with his/her moral
action.
Karma-Yoga:
Indian Model of Moral Development
KSOM
(The Technique of
Intelligent Action)
☼
☼
☼
☼
Karma
Theory
Salvation
☼ ☼ ☼
(Mukti) Soul
(Atman)
Indian
BECSR: Worldview
202-21 Individual Moral Development 20
Executive Ethical Leadership:
the Two Pillars
KSOM
Moral Person [tells followers Moral Manager [tells followers
how leader behaves] how they should behave &
holds them accountable]
• Traits • Role modelling
– Honesty
– Takes visible ethical decision
– Integrity
– Trust • Reward discipline
• Behaviours – Holds people accountable for
– Openness ethical conduct
– Concern for people • Communicating
– Personal mastery
– Sends an “ethics and values”
• Decision making message
– Value based
– Fair

Executive Ethical Leadership:
Reputation Matrix
KSOM

Role of Corporate Culture in
Moral Development
KSOM
• Shared values and beliefs about what is right
and what is wrong
• Principal sources of cultural beliefs are from
– Individuals, top management in particular
– Reinforcing effect of organization’s success in
problem solving & achieving objectives
• Moral development of the culture►

A Model of
Corporate Moral Development►
KSOM
Balanced
Concern
Stage 5:
Stage 4: Ethical ►
Emerging
Stage 3: ► Ethical
►
Responsive
Stage 2:
Un-Balanced
Legalistic ►
Concern
Stage 1:
Amoral ►

Propositions
KSOM
1. Not all organizations 5. Co. Moral
pass thru all stages development doesn’t
2. An organization can have to be a
begin in any stage continuous process
3. Most organizations in 6. Regression is possible
stage 1 do not leave 7. No time dimension
stage 1 8. Two organizations in 1
4. Organization with stage can differ in level
multiple SBUs can of advance►
occupy different stages
Stage I:
The Amoral Organization
KSOM
• Management Attitude and Approach: Get away with all
you can; It’s ethical as long as we’re not caught; Ethical
violations, when caught, are a cost of doing business.
• Ethical Aspects Corporate Culture: Outlaw culture; Live
hard and fast; Damn the risks; Get what you can and get
out.
• Corporate Ethics Artifacts : No meaningful code of ethics
or other documentation; No set of values other than
greed.
• Defining Corporate Behavior: Film Recovery Systems
(FRS) ►

Stage II:
The Legalistic Organization
KSOM
• Management Attitude and Approach: Play within the legal rules;
Fight changes that effect your economic outcome; Use damage
control through public relations when social problems occur; A
reactive concern for damage to organizations from social
problems.
• Ethical Aspects Corporate Culture: If it’s legal, it’s OK; Work the
gray areas; Protect loopholes and don’t give ground without a
fight; Economic performance dominates evaluations and
rewards.
• Corporate Ethics Artifacts : The Code of Ethics, if it exists, is an
internal document, “Don’t do anything to harm the
organization”, “be an good corporate citizen”.
• Defining Corporate Behavior: Ford Pinto►
Stage III:
The Responsive Organization
KSOM
• Management Attitude and Approach: Management understands
the value of not acting solely on a legal basis, even though they
believe they could win; Management still has a reactive mentality;
A growing balance between profits and ethics, although basic
premise, still may be a cynical “ethics pays”; Management begins to
test and learn from more responsive actions.
• Ethical Aspects Corporate Culture: There is a growing concern for
other corporate stakeholders other than owners; Culture begins to
embrace a more “responsible citizen” attitude.
• Corporate Ethics Artifacts : Codes are more externally oriented and
reflect a concern for other publics; Other ethics vehicles are
undeveloped.
• Defining Corporate Behavior: P & G (Rely Tampons), Abbott Labs,
Borden ►
Stage IV:
The Emerging Ethical Organization
KSOM
• Management Attitude and Approach: First stage to exhibit an active
concern for ethical outcomes; “We want to do the ‘right thing”; Top
management values become organizational values; Ethical perception
has focus but lacks organization and long term planning; Ethics
management is characterized by successes and failures.
• Ethical Aspects Corporate Culture: Ethical values become part of
culture. These core values provide guidance in some situations but
questions exist in others; A culture that is less reactive and more
proactive to social problems when they occur.
• Corporate Ethics Artifacts : Codes of Ethics become action documents;
Code items reflect the core values of the organization; Handbooks,
Policy statements; committees, ombudsmen are sometimes used.
• Defining Corporate Behavior: Boeing, General Mills, Johnson &
Johnson (Tylenol), General Dynamics, Caterpillar, Levi Strauss ►
Stage V:
The Ethical Organization
KSOM
• Management Attitude and Approach: A balanced concern for
ethical and economic outcomes; Ethical analysis is a fully integrated
partner in developing both the mission and strategic plan; strategic
analysis is used to anticipate problems and analyze alternative
outcomes.
• Ethical Aspects Corporate Culture: A total ethical profile, with
carefully selected core values which reflects that profile, directs the
culture; Corporate culture is planned and managed to be ethical;
Hiring, training, firing and rewarding all reflect the ethical profile.
• Corporate Ethics Artifacts : Documents focus on the ethical profile
and core values; All phases of organizational documents reflect
them.
• Defining Corporate Behavior: Infosys/ Wipro ►

Role of Corporate Culture in
Moral Development
KSOM
• Shared values and beliefs about what is right
and what is wrong
• Principal sources of cultural beliefs are from
– Individuals, top management in particular
– Reinforcing effect of organization’s success in
problem solving & achieving objectives
• Moral development of the culture►

A multisystem ethical culture
framework
KSOM

Next Class
KSOM
• Case study: Decency Means More than “Always Low
Prices”: A Comparison of Costco to Wal-Mart’s Sam’s
Club
• Discussion questions:
– Difference in performance?
– Causes for difference in performance?
– Ethical reasoning/ justifications for the approaches to
business leading to superior performance [relate to
individual & corporate moral development and culture &
leadership)

Costco Vs. Sam’s Club
H: Being Ethical Leads to Superior Performance
KSOM
Particurals CostCo Sam’s Club Remarks
Performance
Causes
Ethical reasoning
4/14/2021 Ethics in HRM 1

Ethics in Human Resource Management:
Ethical Treatment of Employees
KSOM
• Objectives – to gain insights into
– Moral obligations towards employees concerning
rights, safety, whistle-blowing & duty of loyalty
• Intended Learning Outcomes
– Given a questionable treatment by an employer,
one should be able to analyze the ethical
dimensions and generate perspectives to resolve
the questionable practice

Ethics & the
Human Resource Management Function
KSOM
• Creating ethical organization and leadership
• Recruitment & selection
• Orientation, learning and development
• Benefit administration
• Employee/ Industrial Relations
• Performance Management►

Employee Rights
KSOM
• Classic economic assumptions
– Labor is treated as analogous to land, capital, and
machinery, that is replaceable and as a means to profit
• New developments in labor relations
– Decent salaries, job security, appreciation from
supervisors, a sense of accomplishment, fair
opportunities to display talents
– Participating in planning the future directions, defining
public responsibilities, evaluating role and quality of
management —helping to set the tasks assigned►

Employee Safety, Occupational
Risks & Right to Know☼
KSOM
Directive Principles of State Policy in the Constitution provide (Part-IV
of Constitution, Clause 39)
• For securing the health and strength of employees, men and
women;
• That the tender age of children are not abused;
• That citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength;
• Just and humane conditions of work and maternity relief are
provided;
• That the Government shall take steps, by suitable legislation or in
any other way, to secure the participation of employee in the
management of undertakings, establishments or other
organisations engaged in any industry►
Employee Rights and
Laws Governing Employment in India
KSOM
Rights against exploitation, directive principles
of state policy
1. Factories act
2. Shops and Commercial Establishment Act
3. Industrial Employment (Standing Orders) Act
4. Laws for unorganized sector
5. The Contract Labour (Prohibition and Regulation)
Act
6. Industrial Disputes Act►
Employee Safety, Occupational
Risks & Right to Know
KSOM
• Worker ignorance & implications
• Objective level of acceptable risk
• Relation between acceptable risk and the ease
with which the risk can be eliminated or
controlled
• Employer right to inform and employee right
to refuse hazardous job assignment►

Whistle Blowing & Duty of Loyalty☼
KSOM
• Moral obligations of employees, Employer has
right to loyalty – law of agency
• Duty of loyalty is not absolute → higher
obligation to be disloyal & blow the whistle
• Morally justifiable whistle blowing
• Destruction of social contract between
employees and employer – corporate
downsizing, financially rewarding whistle
blowing►
Next Class
KSOM
Case Study for Discussion:
Your star sales person lied. Should he get a second
chance?
1. The Context, is there an ethical issue? If so, what is
the ethical dilemma?
2. How to go about in resolving the ethical dilemma?
3. Possible solution…..
Briefing on ethics in marketing management

Ethical Issues Regarding
Emerging Technologies
KSOM
• Objectives
– To gain rich insights into ethical issues related
Information Technologies and Intellectual
property rights
– The significance of right to privacy and ethical
aspects thereof
– Balancing rights of IPR owner(s) and beneficiaries
and resultant consequences
4/9/2021 Ethics and Emerging Technologies 1

Ethical issues in emerging
technologies
KSOM
• Ethical issues regarding privacy and the use of
Internet and computer technology.
• Relationship between ISPs and human rights across
the world.
• Core ethical issues regarding the tensions between
intellectual property and the right to life.
• How to get life saving drugs owned by
pharmaceutical companies to the poor who need
the drugs to survive or to regain health►

Right to Privacy in India
KSOM
• Fundamental constitutional right under Articles 14, 19
and 21 of the Constitution of India, 24th August 2017.
• WRIT PETITION (CIVIL) NO 494 OF 2012- Justice K. S.
Puttaswamy (Retd.) and Anr. vs Union Of India And Ors
• The nine-judge bench of J.S. Khehar, J.
Chelameswar, S.A. Bobde, R.K. Agrawal, R.F.
Nariman, A.M. Sapre, Dr. D.Y. Chandrachud, S.K.
Kaul and S.A. Nazeer
• Backdrop- Issues concerning Aadhaar Card
https://www.youtube.com/watch?v=VDR8qGmyEQg
Arguments for Privacy►
KSOM
• Control of information is central to the control
of relationships, extending to Individual-
Organizational Relationships →↓ autonomy
• Potential to stifle creative and critical activity,
aspects central to a flourishing democracy and
an important common (social) good
• We have expectations about the kinds of
information that is appropriate and how that
should be distributed based on info. norms►
Internet Content Providers and
Complicity in Human Rights Abuse►
KSOM
• Right to expression, political association, and
entitlement to privacy in matters of legitimate,
peaceful social action.
• ICPs - filtering content and turning over personal
information to aide in the prosecution of citizens
for unlawful political speech
• To what degree do ICPs bear moral responsibility
for compliance with Chinese directives?►

KSOM

Intellectual Property Rights, Moral
Imagination, and Access to Life-Enhancing Drugs►
KSOM
• Traditional Justifications for Intellectual
Property Rights (IPR)
– Fairness/Justice
– Utilitarian
• If the most basic rights are those of life,
liberty, and/or the right not to be harmed they
should override IPR in certain situations.
• What are these situations?

Ethics and
Intellectual Property Rights
KSOM
• Consequences – Utilitarianism
• Rights – whose? What?
• Justice and fairness
• Common good
• Virtue

Next Session:
A Tale of Two Ashleys
KSOM
• Moral obligation to monitor the social media
behavior of workforce
• Is it ethical for firms to encourage, pressure, or
even require their workers to "friend" their
employer?
• Using social media data from unauthorized 3rd
parties for decision making
• Use of social media to assess conduct of
employees
Ethical Issues in
Marketing Management
KSOM
• Objectives
– Whether to place a new product on the market;
How to price a product; How to advertise; How to
conduct sales; Obligation to disclose information –
advertising, annual reports, PR presentations,
other campaigns
– Analyze questionable practices and generate
perspectives to resolve/ prevent the same►
14 April 2021 Ethics & Marketing Management 1

Possible Problems
KSOM
Autonomy -Based Harm-Based
• Right of autonomy and free • Inadequate appreciation of
choice risk of using a product
– Withholding vital – Misleading information
information leading to improper use
– Distorting data ►
– Providing payment or
gifts to individuals who Marketers abusing
can influence sales position of superior
– Other aspects of information, taking
information control – paid advantage of
news, etc. buyers’ implicit trust
Issues to be Discussed
KSOM
• Sales
• Advertising
• Bluffing & Disclosure
• Marketing & Vulnerable Population
• Pharmaceutical Marketing

◄Sales☼
KSOM
• Failure to disclose • Moral Guidelines and
pertinent information Social Rules:
about a product’s Information Disclosure
function, quality, price • Reasonable
• Bargaining and Expectations and Buyer
deception about selling Knowledge
price • The Mutual Benefit Rule
• Manipulation vs. ►
persuasion

Moral Guidelines and Social Rules:
Information Disclosure►
KSOM
• Minimal Information: Buyer is solely responsible
• Modified Minimal Information: Disclose only
what is necessary to avoid risk of injury.
• Fairness Rule: safety information plus unavailable
information
• Mutual Benefit Rule: safety information plus
information needed for a “reasonable judgment”
• Maximal Information Rule: all relevant
information►
Reasonable Expectations and
Buyer Knowledge►
KSOM
• Applications of the “Fairness Rule”.
• Sellers must consider what a person can
reasonably be expected to know, relative to
their particular class membership
– e.g. An antique collector is an expert so perhaps
the seller need only reveal what an expert could
not be expected to know. ►

The Mutual Benefit Rule►
KSOM
• Allows the salesperson to function as a
company/product advocate but still be able to
fulfill the customer’s needs.
• This allows the customer to make a
satisfactory choice, although this need
not always mean the optimal choice.
• This rule comes closest to satisfying ethical
and practical concerns ►

Advertising
KSOM
Awareness
Attitude
The Advertising Standards Council Of India

Bluffing & Disclosure►
KSOM
• Manipulation – modification of sense of
option by affecting the person’s understanding
of the situation↓
• Deception/ bluffing – used by manipulator to
change the person’s perception of the option↓
• Impact on person’s free choice ►

Marketing & Vulnerable Population
KSOM
• Some consumers lack “market competency” and that
these individuals should not be targeted by marketers
in ways that take advantage of their vulnerability.
Doing so should be treated as unjust and unethical
• Children – under the age of 8 lack certain critical skills:
facts vs. fiction
• Moral marketing must pay special attention to how
they treat these populations, such as by delaying
marketing, restricting marketing, or altering marketing
so as not to take advantage of vulnerable☼

On Being Vulnerable
KSOM
• “To be susceptible to being wounded; liable to
physical hurt”
• Vulnerability is a four-place relation
– A person(1) is vulnerable to another(2) with respect to
some harm(3) in a particular situation(4)
• Vulnerability differs from susceptibility or
disadvantage
– Disadvantage is an impairment or inequality in regard to
access to goods and services
– Susceptibility means that one is capable of being affected
by something or someone
Pharmaceutical Marketing☼
KSOM
• “The bottom line is that if you don’t pay off
the doctors, you will not succeed in
pharmaceuticals. Period.”
• Doling out freebies, cruise tickets, paid
vacations and sponsorships to educational
conferences and seminars for doctors by
pharmaceutical companies has been banned
from January (TOI – 23rd Dec 2014)

Next Session: The Disaster and
Recovery of Nestlé India’s Maggi
KSOM
1. What ethical issues emerge from the conduct
of Nestlé India with reference to marketing of
Magi?
2. Elucidate the stage of corporate moral
development of Nestlé India is as brought out
in this case.
3. Examine the role of the regulator and related
authorities in the light of the relevant ethical
theories.
Ethical Issues in
Finance and Accounting
KSOM
• Objectives
– To gain rich insights into the fiduciary duties (based on
relationship of trust) of accounting, auditing and finance
professionals and the disasters which may arise if there is
breach of trust.
– Identify professional obligations and conflicts of interests
of accounting and finance professionals in a given context
associated with questionable practices and generate
perspectives for preventing questionable conduct by
professionals.
2 April 2021 Ethical issues in finance and accounting 1

Financial crisis of 2008–2009
KSOM
• A combination of reckless consumer borrowing, predatory lending by
mortgage originators, the deceptive bundling and selling of risky or “toxic”
mortgages by banks to third party investors as high grade investments,
and the false representation of those loans as high quality by credit rating
agencies.
• Executives were rewarded for making high-risk bets with investor assets
when they succeeded, but were not penalized when the bets caused
massive losses.
• U.S. Congress—heavily influenced by lobbyists representing large financial
service companies—removed financial regulations designed to protect
investors that had been in place since the Great Depression of the mid-
1930s.
• In the U.S nearly 400 banks have failed since 2008, financial losses of $3.6
trillion in the U.S alone. the U.S. and the Euro zone unemployment rate
has hovered between 9 and 10 percent.►
Ethical Issues:
Finance and Accounting Professionals
KSOM
Fiduciary duties of professionals- relationship of trust
• Professional obligation of auditors, board of
directors, senior management/ executives
• Conflict of interests
• Deception and disclosure in lending and borrowing
• Incentives and compensation structure of financial
services executives
• Ethical Issues in Financial Services- Deception, Churning,
Suitability, Insider Trading

The Auditor’s Basic Responsibilities…
KSOM
• Proficiency on the part of the auditor
• Independence in fact and in appearance
• Due professional care, which involves a sense of
“professional skepticism”
• Adequately planned and properly supervised field
work
• A sufficient understanding of the internal control
structure of the audited entity
• Sufficient inspection observation, and inquiries to
afford a “reasonable basis” for an opinion ►
…The Auditor’s Basic Responsibilities
KSOM
• A report stating whether the financial statements are
in accordance with generally GAAP
• Identification of circumstances in which the
principles have not been consistently observed
• Disclosures in the financial statements are to be
regarded as reasonably adequate unless otherwise
stated
• A report shall contain either an opinion of the
statement taken as a whole, or an assertion to the
effect that an opinion cannot be expressed ►
Conflict of Interests
KSOM
• Consolidation of Audit Firms – top 5 (93% of
revenue) → Options pricing → pressure on
cost
• Riding the value chain with premium
consulting jobs
• Prosperous career opportunities in the client
organizations ►

Ethical Issues Arising Out of
Conflicts of Interests
KSOM
1. Rights – Extra Slack Test: If every auditor fails
to fulfill their responsibilities, what would
happen to the state of disclosure? What
about the trust people have on professionals,
viz., auditors?
2. Moral obligations to be disloyal to protect a
higher order obligation – “Public Confidence
on Certified professional” ►

Accounting for Enron
[7th Largest USA Corporation goes Bankrupt on 2/12/01]
KSOM
1. Responsibilities of David Duncan to: Arther
Andersen, Enron Management, Enron Stakeholders,
Accounting Profession
2. Responsibilities of Nancy Temple, Corporate
Attorney
3. Sherron Watkin’s Loyalty
4. Responsibilities of Board of directors
5. Accounting and Law are Professions or Businesses

Ethical Issues in Financial
Services☼
KSOM
• Deception
• Churning
• Suitability
• Insider Trading ►

Ethical Issues in Financial Services:
Deception
KSOM
• Ethical treatment - salespeople to explain all
of the relevant information truthfully in an
understandable, non-misleading manner↓
• Person is unable to make a rational choice as a
result of holding a false belief that is created
by some claim made by another ►

Churning
KSOM
• Excessive or inappropriate trading for a client’s
account by a broker who has control over the
account with the intent to generate
commissions rather than to benefit the client
►

Suitability
KSOM
• Brokers have an obligation to recommend only
suitable securities and financial products,
common causes of unsuitability:
– Unsuitable types, grades of securities
– Unsuitable diversification
– Unsuitable trading techniques
– Unsuitable liquidity ►

Insider Trading
KSOM
• “trading in the stock of a publicly held corporation on
the basis of material, nonpublic information.”
• Harm: Insider trading causes significant social harm
• Deception – Courts often consider wrongful
deception as the primary concern with insider
trading
• Unfairness – Insider traders have an unfair advantage
over others and therefore their trades are unjust ►

Fraudulent Portfolio Management:
HSBC Versus Suchitra Krishnamoorthy
KSOM
1. What are the key ethical issues concerning
the transactions between Ms.
Krishnamoorthi and HSBC?
2. Evaluate the conduct of the relationship
manager(s) with reference to standard code
of ethical conduct.
3. How would you rate the final decision to
compensate Ms. Krishnamoorthi with
reference to corporate moral development?
Next Class
KSOM
• Ethical Issues in Emerging Technology
• A Tale of Two Ashleys

Sustainability Performance:
Environment
KSOM
• Objectives
– To gain insights into the obligation to protect the
environment beyond legal requirements on the
part of businesses
– Assess the environment sustainable performance
of firm using the GRI indicators.
– From a given context identify desirable/
questionable business practices that affect
environment
23 April 2021 Environmental Sustainability 1
The EV Manufacturer
KSOM
Zarcatron is an Indian start-up. They have concluded 3rd round funding
from three leading venture funds to support their Zero-emission
wheelchair-cum-short distance vehicle. The vehicle body will be
manufactured using recyclable aluminium. The power requirement for
production will be met from a solar power plant build over 2 acres of land.
The plant site will have two water reservoirs, large scale rain water
harvesting systems and recycling of used water. A modern effluent
treatment plant is being put up funded by a separate state fund with a
commitment to plant 3,500 saplings in a designated area 50 km away
from the plant site. However the cost and revenue projections are not
that attractive as the product. They will breakeven only in the middle of
the 3rd year unless included in Govt. subsidy schemes meant for people
with disability. It is likely to be priced at Rs.1 lakh and will have a running
cost of ₹ 0.20 per km.
What is distinctive about Zarcatron?
The EV Manufacturer
KSOM
Zarcatron is an Indian start-up. They have concluded 3rd round of funding
from three leading venture funds to support their Zero-emission
wheelchair-cum-short distance trvel vehicle. The vehicle body will be
manufactured using recyclable aluminium. The power requirement for
production will be met from a solar power plant build over 2 acres of land.
The plant site will have two water reservoirs, large scale rain water
harvesting systems and recycling of used water. A modern effluent
treatment plant is being put up funded by a separate state fund with a
commitment to plant 3,500 saplings in a designated area 50 km away
from the plant site. However, the cost and revenue projections are not
that attractive as the product. They will breakeven only in the middle of
the 3rd year unless included in Govt. subsidy schemes meant for people
with disability. It is likely to be priced at Rs.1 lakh and will have a running
cost of ₹ 0.20 per km.
What is distinctive about Zarcatron?
Morality and Environment
KSOM
• World Commission on Environment and
Development (Brutland report 1987)
• Moral obligation to obey the law, avoid intervening in
the political arena to defeat or weaken
environmental legislation
– Excess use of natural resources
– Externalities of production (pollution)
• Obligations in an ascending order of difficulty in
carrying out
– Avoiding harm → preventing harm → doing good►
Capital:
Natural and Human Made
KSOM
• Natural Capital
– Naturally occurring organic and inorganic
resources, including not just physical items but
also genetic information, biodiversity, life-support
systems
• Human-made Capital
– People, their skills, intelligence, virtues,
institutions ►

The Funnel Metaphor
KSOM
Sustainable
Systems and Restoration
Organizations
https://www.youtube.com/watch?
v=EbZcQe9J-EE

Cycles of Nature
KSOM
Open system with https://www.youtube.com/watch?v=2Gng
respect to energy
0tfOuNM
Closed system with
respect to matter
1) Nothing disappears
2) Everything disperses
« Photosynthesis
pays the bill »
Sustainability is
about the ability of
our own human
society to continue
indefinitely within
these natural
cycles
Slow geological cycles Slow geological cycles

(volcano eruptions and (sedimentation and
weathering) mineralization)

How we Influence Cycles of Nature
KSOM
Physically inhibit
nature’s ability to
run cycles
Create
barriers to
people
meeting their
basic needs
worldwide
Introduce persistent
compounds foreign to
nature
Extract large flows of
materials from the
Earth’s crust

Environmental Performance
KSOM
• An organization’s impacts on living and non-living
natural systems, including ecosystems, land, air, and
water.
• Indicators cover performance related to inputs (e.g.,
material, energy, water) and outputs (e.g., emissions,
effluents, waste).
• In addition, they cover performance related to
biodiversity, environmental compliance, and other
relevant information such as environmental
expenditure and the impacts of products and services
►
Assessment Parameters
KSOM
1. Materials
2. Energy
3. Water
4. Emissions, Effluents, and Waste
5. Biodiversity
6. Products and Services
7. Transport
8. Overall
1.Materials
KSOM
1. Materials used by weight or volume.
2. Percentage of materials used that are
recycled input materials ►

2.Energy
KSOM
3. Direct energy consumption by primary energy
source.
4. Indirect energy consumption by primary source.
5. Energy saved due to conservation and efficiency
improvements.
6. Initiatives to provide energy-efficient or renewable
energy based products and services, and reductions
in energy requirements as a result of these
initiatives.
7. Initiatives to reduce indirect energy consumption
23 April and
2021 reductions achieved ►
Environmental Sustainability 12
3.Water
KSOM
8. Total water withdrawal by source.
9. Water sources significantly affected by
withdrawal of water.
10.Percentage and total volume of water
recycled and reused ►

4.Emissions, Effluents, and Waste…
KSOM
11.Total direct and indirect greenhouse gas
emission by weight.
12.Other relevant indirect greenhouse gas
emissions by weight.
13.Initiatives to reduce greenhouse gas
emissions and reductions achieved.
14.Emissions of ozone-depleting substances by
weight ►

… Emissions, Effluents, and Waste..
KSOM
15.NO,SO, and other significant air emissions by
type and weight.
16.Total water discharge by quality and
destination.
17.Total weight of waste by type and disposal
method.
18.Total number and volume of significant spills
►

… Emissions, Effluents, and Waste
KSOM
19.Weight of transported, imported, exported,
or treated waste deemed hazardous under
the terms of the Basel Convention Annex I, II,
III, and VIII, and percentage of transported
waste shipped internationally.
20.Identity, size, protected status, and
biodiversity value of water bodies and
related habitats significantly ►

5.Biodiversity …
KSOM
21.Location and size of land owned, leased,
managed in, or adjacent to, protected areas
and areas of high biodiversity value outside
protected areas.
22.Description of significant impacts of
activities, products, and services on
biodiversity in protected areas and areas of
high biodiversity value outside protected
areas ►
… Biodiversity
KSOM
23.Habitats protected or restored.
24.Strategies, current actions, and future plans
for managing impacts on biodiversity.
25.Number of IUCN Red List species and
national conservation list species with
habitats in areas affected by operations, by
level of extinction risk ►

6.Products and Services
KSOM
26.Initiatives to mitigate environmental impacts
of products and services, and extent of
impact mitigation.
27.Percentage of products sold and their
packaging materials that are reclaimed by
category ►

7.Compliance
KSOM
28.Monetary value of significant fines and total
number of non-monetary sanctions for
noncompliance with environmental laws and
regulations ►

8.Transport
KSOM
29.Significant environmental impacts of
transporting products and other goods and
materials used for the organization's
operations, and transporting members of the
workforce ►

9.Overall
KSOM
30.Total environmental protection expenditures
and investments by type ►

Next Class
KSOM
• Presentations on group work
• Sustainability Performance: Social Equity
– Social performance indicators

Economic (Prosperity)
Sustainability Performance
KSOM
• Objectives
– To gain insights into the nature of economic
system and impact of business practices on
economic conditions of stakeholders and
economic systems at local, national & global levels
– Assess the economic sustainability performance of
a firm using the GRI framework, covering aspects
such as, Economic Performance, Market Presence;
and Indirect Economic Impacts►
3 May 2021 Economic Sustainability 1
Economic System
KSOM
• Sum-total of institutions and patterns of behavior
that organize economic activity in a society
• A system of production, resource
allocation and distribution of goods and
services within a society
• Three basic questions: what to produce, how to
produce and in what quantities and who receives the
output of production
• Types of economic systems: Capitalism, Socialism,
and Mixed economy. ►
Economic System:
What It Comprise of
KSOM
• Methods of control over the factors or means of
production
• A decision-making system
• A coordination mechanism
• An incentive system
• Organizational form
• A distribution system
• A public choice mechanism- law-making, establishing
rules, norms and standards and levying taxes►
The Main Functions of The
Economic System
KSOM
1. Bring about a balance between supply and effective
demand for goods and services
2. What goods and services are to be produced and in
what quantities
3. Allocate scarce resources among the industries
producing goods and services
4. Determine the best possible productive methods
for the full utilization of the resources of the society
5. Distribute the products of agriculture and industry
among members of the community►
Global Justice
KSOM
Point Counter Point
• ↑ FDI → ↑Job creation → • ↑ FDI → ↑ Inequalities &
↑ Wealth Poverty by depressing
wages of poor & middle
class while enhancing
wealth of economic elites
• Workers are often treated
as disposable tools ►

Economic Sustainability
Performance
KSOM
• Organization’s contribution to the
sustainability of a larger economic system
– Economic Performance;
– Market Presence; and
– Indirect Economic Impacts ►

Economic Performance
KSOM
1. Direct economic value generated and distributed,
including revenues, operating costs, employee
compensation, donations and other community
investments, retained earnings, and payments to
capital providers and governments.
2. Financial implications and other risks and
opportunities for the organization's activities due to
climate change
3. Coverage of the organization's defined benefit plan
obligations.
4. Significant financial assistance received from
government ►
Market Presence
KSOM
1. Range of ratios of standard entry level wage by
gender compared to local minimum wage at
significant locations of operations
2. Policy, practices and proportion of spending on
locally-based suppliers at significant locations of
operations
3. Procedures for local hiring and proportion of
senior management hired from the local
community at locations of significant operation
►
Indirect Economic Impacts…
KSOM
1. Development and impact of infrastructure
investments and services provided primarily
for public benefit through commercial, in
kind, or pro bono government
2. Understanding and describing significant
indirect economic impacts, including the
extent of impacts ►

… Indirect Economic Impacts
Shared Value
KSOM
• Re-conceiving products and markets
• Redefining productivity in value chain
– Energy use and logistics
– Resource use
– Procurement
– Distribution
– Employee productivity
– Location
• Enabling cluster development ►
Next Class
4th May 2021 (Tuesday) 2:30 – 4:00 P.M.
KSOM
• Review of the course
• Briefing on end semester examination
• Quiz covering CSR and sustainability
performance

Corporate Social Responsibility
KSOM
• Objective
– Gain insights into the theories and application
thereof: Business – Society relationship
– Understand the relationship between business
and society, with a view to build and strengthen it
– Analyze social problems such as poverty, pollution
& disease. Applying CSR theory and create
solutions
BECSR: 2020-21 CSR 1

Corporate Social Responsibility
KSOM
• CSR theories
• An application – Collective Impact
• CSR in India

What is corporate social
responsibility?
KSOM
• Instrumental theories
• Political theories
• Integrative theories
• Ethical theories

Instrumental theories
Meeting Objectives that Produce Long-term Profits
KSOM
• Maximizing the shareholder value
• Strategies for achieving competitive
advantages
– Social investments in a competitive context.
– Natural resource-based view of the firm and
dynamic capabilities.
– Strategies for the bottom of the economic
pyramid.
• Cause-related marketing
Political theories
Using Business Power in a Responsive Way
KSOM
• Corporate constitutionalism
– Managing social power: the social power equation
& the iron law of responsibilityl
• Integrative social contract theory
• Corporate citizenship

Integrative theories
Integrating Social Demands
KSOM
• Issues management
• The principle of public responsibility
• Stakeholder management
• Corporate social performance

Corporate social performance
KSOM

Ethical theories
Contributing to a good society by doing what is ethically correct
KSOM
• Normative stakeholder theory
• Universal rights
• Sustainable development
• The common good approach

Sustainable development
Goals set in 2015 for 2030
KSOM
https://www.youtube.
com/watch?v=KlW8-
WW0k3g

Collective Impact
The Imperative … The Barriers … The Way Forward
KSOM
• Causes of social problems (Poverty, Pollution,
Disease) - complex combination of actions and
omissions by players in al sectors
• Solution- coordinated efforts of all
• Role of businesses- bring essential assets
– Define and achieve objectives with limited budget
– Change management & art of negotiation
– Accountability, data driven decision making
– Faced with contraints, high motivation
BECSR: 2020-21 CSR 10
A Problem
KSOM
• Yara, a global leader in fertilizer sales, faced numerous obstacles
in its effort to reach African smallholder farmers from its port of
entry in Tanzania. Fertilizer had the potential to increase crop
yields in the famine-afflicted country. But corruption in the
government-controlled port delayed the unloading of shipments
for many months. Roads were inadequate for conveying fertilizer
to farms and produce back to the port; a third of the harvest was
typically left to rot for lack of refrigerated transport. Farmers
were poor, often illiterate, and unaccustomed to using fertilizer;
they also lacked access to credit. A government ban on the
export of key crops, meant to protect local consumption, had
the unintended consequence of shrinking the market and
curbing capital investment. → Classic Market Failure
BECSR: 2020-21 CSR 11
Reshaping the Ecosystem:
Yara, sales up by 50% and EBITDA up by 42 %.
KSOM
• Southern Agricultural Growth Corridor of Tanzania (SAGCOT),
covering an area the size of Italy, in 3 years. bolstered the
incomes of hundreds of thousands of farmers
• 68 organizations, including multinational companies, civil
society groups, international aid agencies, and the Tanzanian
government. $3.5b, 1/3rd from public, rest from pvt.Yara $60m
• Infrastructure, including the port, a fertilizer terminal, roads,
rail, and electricity; fostering better-managed farmer
cooperatives; bringing in agro dealers and financial services
providers; and supporting agro-processing facilities and
transport services.
BECSR: 2020-21 CSR 12

Elements of Collective Impact
KSOM
1. A common agenda
2. A shared measurement system
3. Mutually reinforcing activities
4. Constant communication
5. Dedicated backbone support
Why Business Misses the Opportunity:
Legitimacy, competitive free riders, investment
justifications
BECSR: 2020-21 CSR 13
CSR in India
Companies Act 2013
KSOM
Who Qualifies: U/S 135 - Companies with
Net worth > 500 Crores INR
Turnover > 1000 Crores INR
Net Profit > 5 Crores INR
Spend 2% of PAT on ↓
What Qualifies: Schedule VII
https://www.youtube.com/watch?v=JjOw31D5pDo
BECSR: 2020-21 CSR 14

Next Class
KSOM
• Assignment & Presentation on an ethical
issue/ ethical dilemma
• Environment Sustainability Performance
BECSR: 2020-21 CSR 15

Five Sources of Ethical Standards
KSOM
Utilitarian
Approach
Virtue Rights
Approach Approach
Common Fairness
Good or Justice
Approach Approach
@Ashok K. Sar Ethics and Virtue Approach 1

Ethics and Virtue Approach►
KSOM
• Objective
– To gain insights into decision dilemma concerning
virtue
• Intended learning outcome
– The THREE step approach to resolve ethical
dilemma concerning virtue►
BECSR: 2015-16 The Common Good Approach 2

What’s wrong in the marketing of SIS?
KSOM
• Jakson Enterprises market low-capacity sprinkler irrigation sets (SIS)
to small and marginal farmers and gardens. The company vision
reflect focus of health-safety-environment (HSE) and value for
money. The ethical code of conduct for managers reflect focus on
honesty, integrity and generosity, even at the cost of business goals.
In 2018, to improve the bottom line, they stopped manufacturing
the SIS in their factory and sold cheap imported SIS. They selected
an award winning AD in their campaign to reposition the imported
SIS. In less that a year nearly 42% of the SIS were reported to be
defective, unsafe for use and broke-down frequently requiring
expensive repairs and long time to repair. On demand for
replacements, the company refused to honor replacement warranty
on the pretext of a force majeure clause.
2/10/2021 3
Virtue Ethics
KSOM
What should I do? What kind of person should I be?
• Moral principles/ universal • Ideals, such as excellence or
rules - focus primarily on dedication to the common
people's actions and doings good
• Thoughtless and slavish • discovered through
worship of rules - thoughtful reflection on what
scrupulously checking our we as human beings have the
every action against a table potential to become
of do's and don'ts • we should strive and which
• Neglects the more important allow the full development of
issue--what people should be our humanity►

Virtues
KSOM
• Attitudes, dispositions, or character traits that
enable us to be and to act in ways that
develop potential of thoughtful reflection
• They enable us to pursue the ideals we have
adopted
• E.g., honesty, courage, compassion,
generosity, fidelity, integrity, fairness, self-
control, and prudence ►

Virtues
Character in Action
KSOM
• Aristotle: a virtue is a state of character by
which you ‘stand well’ in relation to your
desires, emotions and choices:
– ‘to feel [desires and emotions] at the right times,
with reference to the right objects, towards the
right people, with the right motive, and in the
right way’
• Virtues are traits that are necessary for ‘living
well’ ►
The Doctrine of the Mean
KSOM
• The core of Aristotle’s account of moral virtue
is his doctrine of the mean
• According to this doctrine, moral virtues are
desire regulating character traits, which are at
a mean between more extreme character
traits (or vices)
• For example in response to the natural
emotion of fear, we should develop the
virtuous character trait of courage ►
Vice of The DoctrineVice
Virtue ofofthe Mean
Excess
Deficiency
KSOM Cowardice Courage Recklessness
Stinginess Generosity Prodigality

Shamelessness Modesty Bashfulness
Maliciousness Righteous Enviousness
Indignation
Failing to say Honesty Brutal Honesty
that need to be
said
Aristotelian approach to business is that a good corporation is one that is not only
profitable but also provides a morally rewarding environment in which good
people can develop not only their skills but, also their virtues.
Developing Virtues
KSOM
• Through learning and through practice
• Within and by the communities to which s/he
belongs, including family, place of worship,
school, and other private and public
associations
• Habits (intersection of knowledge, skill &
desire) - once they are acquired, they become
characteristic of a person ►

Virtue Test
KSOM
• Ask: “Does this action represent the kind of
person I am or want to be?”
• Ask: “Does it represent my organization’s
reputation or vision of the kind of enterprise it
wants to be?”
• Why is the character or virtue test a valid way
to decide right and wrong? ►

“Smooth Balance Rice” Marketing
KSOM
• The marketing team presents a low GI rice with “Smooth
Balance Rice” ad campaign. Large print and dynamic type on
the package exclaiming “LOW GI Rice” will catch the attention
of people with diabetes and increase sales. Concerned about
blood sugar level, people with diabetes will purchase the low
GI rice. However, It offers blood sugar control advantage only
on regulated eating and can cause harm on regular
eating. The product manager’s immediate reaction is “This
marketing campaign is unethical.”
– How can he be sure of his judgment?
– How can he convince the marketers?
– How should he act in this situation?
10 February 2021 BECSR: 2014-15 11

Apply the Test
KSOM
• STEP 1: Ask if the action will help to make you
the kind of person you want to be.
• STEP 2: Ask whether the action will fit the
company’s reputation or vision of what it would
like to be.
• STEP 3: Ask whether the action maintains the
right balance between excellence and success
for the firm?
• STEP 4: Draw a conclusion ►
KSOM
• Introduce the test: The brand manager can ask,
– Does this action represent the kind of persons we are or I
want to be?
– Does it represent our company’s reputation or vision of
what it wants to be?
• Validity:
– Knowing who we aspire to be allows me to ask whether an
action is something that would be done by the kind of
person or organization. ►

Apply the test: Step 1
KSOM
• Will this action help to make you the kind of person you want to
be?
– Marketers - this campaign represents the fact that they are
very creative and clever marketers.
– Product manager
• purpose of marketing is to discover what the customer
needs and to provide the information and motivation
for the customer to fulfill that need.
• They have designed a campaign that is clever but
misleading.
• Honesty is important for people to live well and for
companies to flourish. A wise marketer would not
undertake this campaign. ►
KSOM
• Will the action fit the company’s reputation
or vision of what it would like to be?
– The company’s mission statement says that our
products should be marketed responsibly and that
our employees aim at ethical behavior and
sustainable results.
– The “Smooth Balance Rice” campaign does not fit
these commitments. ►

KSOM
• Will the action maintain the right balance
between excellence and success for the
firm?
– The mission statement also states that our
company’s success depends on earning the trust
of our customers.
– Focusing only on how creative this campaign is
and how much revenue it will generate in the
short run does not strike the proper balance with
our long term success. ►
Conclusion
KSOM
• Because it does not represent the character
the marketers or the company aspires to be,
the campaign should not be undertaken ►

Compare Conclusions of Tests to Draw
Final Conclusion
KSOM
• The product manager could argue that: since
all the ethical principles that he applied show
the marketing campaign to be unethical, the
company should not proceed with it
• Using the insights gained from the various
principles as to why the campaign was
unethical, the marketers could design a new
campaign ►

Strengths & Weakness
KSOM
Strength Weakness
• Larger questions of what kind • We are motivated more by
of individuals and companies factors in the situation, even
it is good to be & community those with no ethical
we are part of significance
• Not just a matter of following • Yet we continue to attribute
ethical rules but involves our own and others’ actions to
developing habits of acting in good or bad character traits
the way that we, our company, rather than to factors in the
and the society think that situation - steady virtue may be
good people and companies very hard to develop because
should act situational factors do affect us so
much ►
Next Class
KSOM
• Spheres of executive responsibilities and
resolving ethical dilemma
• Case study analysis: The Man in the Mirror – A
– Discussion questions: What should Sebastian do?
• Do nothing?
• Exploit the situation?
• Take action?
– Use the 4 x 5 matrix to analyze the options

Resolving Ethical Dilemma:
The 4 x 5 Matrix
KSOM

Approach Approach
Private
Individual
Economic Agent
Company
Leader
Responsibilities
outside the firm
2/10/2021 21
KSOM
Utilitarian
Approach
Virtue Rights
Approach Approach
Common Fairness
Good or Justice
Approach Approach

The Common Good Approach
KSOM
• Objective
– To gain insights into decision dilemma concerning
contribution to creating and sustaining common
good as opposed to individual good
• Intended learning outcome
– The THREE step approach to resolve ethical
dilemma concerning common good►

What possibly went wrong?
KSOM
• Kodaikanal mercury poisoning is one of the well chronicled
cases of toxic pollution anywhere in the world. Kodaikanal
Pollution is a proven case of mercury contamination by
(Hindustan Unilever) in the process of making mercury
thermometers for export around the world. The exposure of
the environmental abuse led to the closure of the factory in
2001 and opened up a series of issues in India such as
corporate liability, corporate accountability and corporate
negligence. An undisclosed settlement came in 2016, more
than 10 years after the former workers filed a petition in the
Madras High Court seeking economic rehabilitation.

Goods
KSOM
• Extrinsic (Instrumental)- Salary, recognition
from boss, colleagues
• Intrinsic (Final)- Satisfaction for a job well
done, acquisition of competencies (KSAP),
recognition
• Transcendent (final)- Moral habits/ virtues:
radically change the person’s capability &
make him a better person

Common Good
KSOM
Public goods
Common goods
No (mathematical
(ocean fishing)
theorem)
Exclusion
common good as Yes Private goods Club goods

"certain general (property) (cable TV)
conditions that are in an
appropriate sense
Yes No
equally to everyone's
advantage". Rivalry

Common Good:
Systems and goods beneficial to all
KSOM
Social systems, 1. Affordable healthcare
Institutions & 2. Effective public safety
Environments 3. Peace among nations
On which we all 4. Just legal system
depend, which work 5. Unpolluted environment
benefit us 6. Flourishing economic system
John Rawls - common good as "certain general conditions
that are in an appropriate sense equally to everyone's
advantage".
Individuals own good is parallel with the good of the community,
members are bound by the pursuit of common values/goals

The Common Good Approach
KSOM
• Life in community is a good in itself and our actions
should contribute to that life
• Interlocking relationships of society are the basis of
ethical reasoning and that respect and compassion for all
others-especially the vulnerable-are requirements of
such reasoning
• Attention to the common conditions that are important
to the welfare of everyone
• Public trust, system of laws, effective police and fire
departments, health care, a public educational system, or
even public recreational areas►
Obstacles To Establish and
Maintain the Common Good
KSOM
• Disagreement about the relative values things
have for us- Pluralism
• Free-rider problem
• Individualism
• Unequal sharing of burdens ►

Common Good Test
KSOM
• Introduce the test: ask: “are we doing our part to look out for the
common good in this situation?”
• Why is the common good test a valid way to decide right and
wrong? Since we all have access to the common good and benefit
from it, we all have obligations to establish and maintain it.
• Apply the test:
– STEP 1: specify what parts of the common good are involved.
– Step 2: explain why we have obligation to promote or protect
the common good.
– Step 3: does the proposed action conflict with this obligation?
– Draw a conclusion: if the action conflicts with my or my
organization’s obligation to contribute to the common good, it is
the wrong action ►
•
KSOM
• The marketing team presents a low GI rice with “Smooth
Balance Rice” ad campaign. Large print and dynamic type on
the package exclaiming “LOW GI Rice” will catch the attention
of people with diabetes and increase sales. Concerned about
blood sugar level, people with diabetes will purchase the low
GI rice. However, It offers blood sugar control advantage only
on regulated eating and can cause harm on regular
eating. The product manager’s immediate reaction is “This
marketing campaign is unethical.”

KSOM
• A. Introduce the test
– Ask: “Are we doing our part to look out for the
common good in this situation?”
• B. Validity
– Since we all have access to the common good and
benefit from it, we all have obligations to establish
and maintain it ►

C1.Apply the Test
What parts of the common good are involved?
KSOM
• Trust that customers have in business as a
whole to provide safe and healthy products
and services and not subjecting them to
unknown risks ►

C2. Explain why we have obligation to promote or
protect the common good
KSOM
• People buy the food industry’s products based on
trust. The industry benefits by its profits and
individuals benefit by having safe and healthy food
that takes less time to prepare. Since our company
benefits from this trust we should do what we can to
contribute to it►

C3. Does the proposed action
conflict with this obligation?
KSOM
• Marketing the low GI rice in a misleading way will
harm the public trust if it becomes known. It is
highly probable that the actions of the producer will
be scrutinized and the campaign discovered. So the
proposed action does conflict with our obligation to
contribute to the common good ►

C4. Conclusion
KSOM
• Because it conflicts with our obligation to
contribute to the public’s trust in business and
in the marketing claims of the food industry, it
is unethical for the company to proceed with
the campaign ►

Common Good Test
Strength & Weakness
KSOM
Strengths of the test:
• Reality check for individuals and organizations - society and the
natural and technological environments also contribute to that
success and that existing institutions and ideologies enable them to
carry on their activities.
• It is a good check on the free rider problem
Weaknesses of the test:
• There is a great deal of disagreement over what constitutes the
common good and over what relative value the parts have should
they conflict.
• The test runs contrary to a long-standing tradition of individualism
and the pursuit of self-interest in some western societies, so it may
stir up immediate resistance that could distract from the ethical
issue to be resolved ►
Next Class
KSOM
• The Virtue Approach

KSOM
Utilitarian
Approach
Virtue Rights
Approach Approach
Common Fairness
Good or Justice
Approach Approach
BECSR: 2020-21 Fairness or Justice Approach 1

The Fairness or Justice Approach
KSOM
• Objective
– To gain insights into decision making, which is fair
for all those affected.
• Learning Outcome
– The four-steps: to ensure decision is fair►

Is it fair?
Is any injustice done to any one?
KSOM
Recently, Ras Al Khaimah Investment Authority (RAKIA),
an Emirati investor, initiated an investment treaty
arbitration (ITA) claim against India under the India-UAE
Bilateral Investment Treaty (BIT), seeking compensation
of $44.71 million. This claim arose after a
memorandum of understanding (MoU) between
Andhra Pradesh and RAKIA to supply bauxite to Anrak
Aluminium Limited, in which RAKIA has 13%
shareholding, was cancelled, allegedly due to the
concerns of the tribal population in those areas.

Justice and fairness
KSOM
Conflicts of rights and interests- goods and
services are scarce, people differ over who
should get what.
• Justice: Standard of rightness
• Fairness: Ability to judge without reference to
one’s feelings or interests

The foundations of justice
KSOM
• Social stability, interdependence, and equal
dignity
• ↑The extent to which the members of society
feel that they are being treated justly and the
extent that their institutions (government,
education and economic) are just)↓
• Social unrest, disturbances, and strife ►

The Concept of Justice
KSOM
• Plato: Internal harmony
• Aristotle: Equality
• Fred Feldman: Getting what is deserved
• John Rawls: Fairness
– Think yourself back to the original position and put
yourself behind the veil of ignorance.
– Ask yourself whether a proposed rule for distributing
benefits and burdens is acceptable to you.
– If not, then it cannot be fair, and therefore it cannot be just
– so, the rule must be rejected►
Fairness:
Different Kinds of Justice
KSOM
• Distributive justice
– Egalitarian: “To all the same.”
– Meritocratic (or, Capitalist): “To each according to their merit.”
– Socialist: “From each according to their ability, to each
according to their need.”
– Libertarian: “From each what they freely choose to contribute,
to each what they have made or others have freely chosen to
contribute.”
• Retributive or corrective justice
• Compensatory justice ►

The Fairness or Justice Approach
KSOM
• Aristotle and other Greek philosophers have contributed the
idea that all equals should be treated equally.
• Ethical actions treat all human beings equally-or if unequally,
then fairly based on some standard that is defensible
• We pay people more based on their harder work or the
greater amount that they contribute to an organization, and
say that is fair!
• But there is a debate over CEO salaries that are hundreds of
times larger than the pay of others; many ask whether the
huge disparity is based on a defensible standard or whether it
is the result of an imbalance of power and hence is unfair ►

Principles of Justice
KSOM
• Equals should be treated equally and un-
equals unequally
• Valid criteria for differential treatment
– Effort, accomplishment, contribution, need,
seniority, contract, relationship/ in-group
status ►

Rawls’ operational definition of
KSOM
“justice as fairness.”
• Think yourself back to the original position
and put yourself behind the veil of ignorance.
• Ask yourself whether a proposed rule for
distributing benefits and burdens is
acceptable to you.
• If not, then it cannot be fair, and therefore it
cannot be just – so, the rule must be
rejected►

Evaluating Any Moral Decision
KSOM
• Whether our actions treat all persons equally?
• If not, we must determine whether the
difference in treatment is justified:
– Are the criteria we are using relevant to the
situation at hand? ►

Justice Test
KSOM
• Introduce the principle:
– Ask: “Is this a fair distribution of benefits and
burdens.”
• Why is the justice test a valid way to decide
right and wrong? Treat equals equally and un-
equals unequally.
– Are there valid reasons for un-equality? ►

Justice Test
Apply the Principle
KSOM
• STEP 1: What is the distribution?
• STEP 2: Is the distribution fair?
• STEP 3: Select a fair process if disagreement
persists
• STEP 4: Draw a conclusion
• Strengths Of The Justice Test
• Weaknesses Of The Justice Test ►

The Justice Test
“Healthy Rice” Marketing
KSOM
• Introduce the test
– Ask if there is a fair distribution of benefits and
burdens.
• Validity
– If everyone has equal value as a person, then
everyone has an equal claim to a share. If there is
a reason they are unequal, then they should get
an unequal share. ►

Apply the Test…
KSOM
• How are the benefits and burdens
distributed?
– The firm gets profits from sales of Low GI rice.
– Marketers get bonuses for increasing revenues.
– Customers give money and trust and get nutrition
but with unwanted carbohydrate and health costs
over their lifetime.
– Thus the company and marketers get benefits and
customers get the burdens. ►

… Apply the Test
KSOM
Is this distribution fair?
• This does not seem fair on the face of it – the distribution
seems very unequal.
• Can the company claim any basis on which this unequal
distribution is fair?
• Has the company: a valid reason to justify unequal
treatment?
• Marketer’s claim - everyone has agreed to a social contract
that specifies a free and competitive market so the customer
must sort out marketing claims and make choices.
• The product manager could reply that the customer gives the
company his/ her money and loyalty and should be repaid
with the desired product. ►
Conclusion
KSOM
• The marketing plan is unjust because, even
though they are equal parties in the exchange,
the company gets the benefits and the
customers take the burdens ►

Next Class
KSOM
• Common Good Approach

KSOM
Utilitarian
Approach
Virtue Rights
Approach Approach
Common Fairness
Good or Justice
Approach Approach
Rights Approach to Ethics BECSR: 2015-16 1

Rights
KSOM
A justified claim
on others
Negative Rights:
Rights Positive Rights:
Imposes a –ve +ve assistance
duty on others for fulfilling rights
Duties & responsibilities

of others
Rights: United Nation’s Universal
Declaration of Human Rights
KSOM
• A common standard of achievement for all people
and all nations, to the end that every individual and
every organ of society, shall strive by teaching and
education to promote respect for these rights and
freedoms and by progressive measures, national and
international, to secure their universal and effective
recognition and observance, both among the people
of Member States themselves and among the
peoples of territories under their jurisdiction
• Article 14 – 30
Rights
KSOM
• A right is a justified claim on others - some
standard acknowledged and accepted not just
by the claimant, but also by society in general
• Moral rights justified by moral standards,
difference in interpretation►

Rights Approach to Ethics
KSOM
• The ethical action is the one that best protects and respects
the moral rights of those affected
• Humans have a dignity based on their human nature per se or
on their ability to choose freely what they do with their lives.
• On the basis of such dignity, they have a right to be treated as
ends and not merely as means to other ends
• The list of moral rights -including the rights to make one's own
choices about what kind of life to lead, to be told the truth,
not to be injured, to a degree of privacy, and so on
• Non-humans have rights, too.
• It is often said that rights imply duties-in particular, the duty
to respect others' rights►
Negative Rights
KSOM
• Rights, such as the right to privacy, the right not to be
killed, or the right to do what one wants with one's
property, are rights that protect some form of human
freedom or liberty
• Such rights are a claim by one person that imposes a
"negative" duty on all others
– The duty not to interfere with a person's activities in a
certain area.
– The right to privacy, for example, imposes on us the
duty not to intrude into the private activities of a
person ►
Positive Rights
KSOM
• Rights that provide something that people need to
secure their well being, such as a right to education/
food/ medical care/ housing/ job
• Respecting a positive right, requires more than
merely not acting; positive rights impose on us the
duty to help sustain the welfare of those who are in
need of help ►

Conflict of Rights…
KSOM
• How would the action affect the basic well-
being of those individuals?
• How would the action affect the negative or
positive freedom of those individuals?
• Would it involve manipulation or deception—
either of which would undermine the right to
truth that is a crucial personal right?
• Actions are wrong to the extent that they
violate the rights of individuals ►
… Conflict of Rights - Moral Dilemma
Action Respecting Basic Rights
KSOM
• Rights coming into conflict - which right has
priority
• Freedom and well-being of each individual will
be protected when others threaten that
freedom or well-being
• Social costs or the injustice that would result
from respecting a right are too great ►limit to
protecting rights ►

Rights Theories
Healthy Rice
KSOM
• The marketing team presents a “Healthy Rice” ad campaign
for a low GI rice brand. Large print and dynamic type on the
package exclaiming “Healthy Rice” will catch the eyes of
people with diabetes and increase sales. Concerned about
maintaining blood sugar level, people will purchase the low GI
rice. The carbohydrate content of the low GI rice, however, is
suited for regulated eating, so it offers no blood sugar
advantage on regular eating. The product manager’s
immediate reaction is “This marketing campaign is unethical.”

Rights Theories
Three Approaches to Deciding Right and Wrong
KSOM
1. The Rights Test - “Are we respecting human
rights.”
2. The Everybody or "Extra Slack" Test - “What if
everyone did that?” or “If it is ethical for us
to do that, then here comes
everybody. What about that?” or “Are we
cutting ourselves some extra slack here?”
3. The Choices Test - “Are the people affected
able to make their own choices.”
Three Approaches
1. The Rights Test
KSOM
– The product manager can ask: “Are we respecting
the consumers’ rights?”
• Validity
– Since you marketers would want your rights
respected, shouldn’t we respect their rights as
well?►

Three Approaches
The Rights Test – Apply the Test…
KSOM
1. Identify the right in question
– Right to health, The product manager could also argue that
the “Healthy Rice” campaign deprives people of their right
to self-determination--the right to choose what they value
2. Explain why it is a right
– Health is a right because without health it is difficult to
maintain dignity and well-being
3. Are there conflicts with other rights or the rights of others?
– None are apparent in this case►

Three Approaches
The Rights Test – Conclusion
KSOM
• The Rights principle may not helpful in this case. It
would be difficult to attribute the blood sugar rise to
this one product choice alone ►

Three Approaches
2. The Everybody or Extra Slack Test
KSOM
– “What if everybody did it? Are we cutting
ourselves extra slack that we are not willing to
give to others? What if they did it to us?”
• Validity
– We are all equal as humans, so whatever is ethical
for me must be ethical for others in the same
circumstances ►

Apply the Test…
KSOM
1. Specify the action
– Describing the questionable action as “not telling
customers the truth” is not accurate because the
claim is not true. The description “misleading
customers” already contains an evaluation in that
most people think misleading someone is wrong.
Try the description “motivating the customer to
buy something she clearly does not want.” ►

… Apply the Test
KSOM
2. Ask what would happen if everybody did that
action.
– If everyone did this would it become impossible?
– If everyone did this would it be
unacceptable? ►

… Apply the Test
KSOM
3. Conclusion based on everyone doing it. This
marketing approach is unethical because it is
impossible for everyone to do it and because
neither my company nor I would want to
work in a world in which this approach is
generalized.
4. What if they did it to us? If we reverse the
action, we would not want our suppliers to
market that way to us ►
Conclusion
KSOM
• We should not carry out this marketing
program since we would be claiming an
exception for ourselves: we can’t all do it and
the practice would create a world we and our
company would find unacceptable. In
addition, since we would not like companies
motivating us to buy what we do not want,
then it is unethical for us to do the same ►

3. The Choices Test
KSOM
– If we market in this way, are our customers able to
make their own choices?
• Validity
– Since we are all equal as persons, we should let
others make their own choices based on what
they value ►

The Choices Test
Apply Test
KSOM
1. Are we giving others freedom to choose?
2. Are we giving others the information to know
what they value in the situation? ►

The Choices Test
Conclusion
KSOM
• The marketing plan is unethical because it
does not give the customer the information to
choose what she values ►

Next Class
KSOM
• Fairness and Justice approach to ethics

KSOM
Utilitarian
Approach
Virtue Rights
Approach Approach
Common Fairness
Good or Justice
Approach Approach
BECSR: 2020-21 Utilitarian Approach to Ethics 1

Utilitarian Approach to Ethics
KSOM
• Objective
– To gain insights into the consequence of a
decision, with a view to find out if it is morally
right
• Learning outcomes
– Apply the four steps to find out if the decision is
morally right

Utilitarianism
KSOM
Bentham and Mill

Was Mark Felt Right?
KSOM
• In 2005, Mark Felt, also known as ‘‘Deep
Throat,’’ revealed his identity as the source
who secretly fed information to Washington
Post investigative reporters Bob Woodward
and Carl Bernstein. The information ultimately
led to the 1974 resignation of President
Richard Nixon over his involvement in the
cover-up of the 1972 burglary at Democratic
headquarters in the Watergate building.
Normative Ethical Theory
Utilitarian Theories
KSOM
• Imagine that the Indian Central Intelligence
Agency gets wind of a plot to set off a dirty
bomb in a major Indian city. Agents capture a
suspect who, they believe, has information
about where the bomb is planted.
• Is it permissible for them to torture the suspect
into revealing the bomb's whereabouts?
• Can the dignity of one individual be violated in
order to save many others?
Utilitarianism
KSOM
Jeremy Bentham (1748-1832) is
the first notable figure
endorsing “the principle of
utility.” That principle states:
an action is right as it tends to promote
happiness, wrong as it tends to
diminish it, for the party whose
interests are in question
Bentham is famous for identifying
happiness with pleasure, and
providing a “hedonic calculus”
for determining the rightness of
an action.
Hedonic Calculus: Measure The Rightness
of an Action By These Features
KSOM
1. Intensity
2. Duration
3. Certainty
4. Propinquity … near not far
5. Fecundity ….. fruitful
6. Purity
7. Extent
Mill’s Utilitarianism
KSOM
John Stuart Mill (1806-1873) was
the son of James Mill, a friend of
Bentham’s
Mill took Bentham’s Utilitarianism

and made two major changes:
1.He emphasized the greatest
good for the greatest number
2.Rejected Bentham’s calculus,
saying that quality of pleasures is
crucial in deciding what is right,
not mere quantity.

Features
KSOM
• Moral Worth determined by consequences
• Course of action → greatest benefits after costs/
harms
• Benefit – Pleasure ↔ Cost/ harm – pain
• Balance of good over evil
• Overcome self interest & contribute to +ve
consequences
• Act utilitarianism
• Rule utilitarianism►
Criticisms
KSOM
• Objectivity in measurement of consequences
– Oil exploration vs. wild life preservation
– Support charitable foundation vs. vaccination
• Ignoring the rights and justice concerning the
minority►

How To Use
The Best Outcomes or Utility Test
KSOM
A. Introduce the test
B. Why is best outcomes or utility a valid way to decide right and
wrong?
C. Apply the test
– STEP 1: Identify the alternative actions that are possible and the
persons and groups (the stakeholders) who will be affected by
these actions.
– STEP 2: For each of the most promising alternatives, determine
the benefits and costs to each person or group affected
– STEP 3: Select the action in the current situation that produces
the greatest benefits over costs for all affected
– STEP 4: Ask what would happen if the action were a policy for all
similar situations
D. Draw conclusion►
KSOM
• Is the launch with the target tagline correct
from Utilitarian approach to ethics?
“SMOOTH BALANCE RICE HELPS YOU TO
BALANCE YOUR DIET AND HEALTH!”, “HEALTHY
RICE WEALTHY LIFE!”.

Healthy Rice
KSOM
Is there an ethical issue – the smell test
• To alert the marketers to the ethical issues in
their proposal, the Product Manager can ask
them: Would we be comfortable reading a ET
story that our company had persuaded people
with diabetes to buy low GI rice when they
were trying to protect themselves from rise in
blood sugar level?►

The Best Outcomes Or Utility Test
KSOM
– “Are we maximizing good and minimizing harm
for all those affected?”
• Validity
– Everyone counts the same; and everyone wants to
be happy; therefore the right thing to do will be to
produce the most happiness and the least
unhappiness for all who are affected. ►

1.Identify Alternative Actions and
Those Affected
KSOM
• The alternatives are to use the target
campaign or not.
• Those affected include the
– The company
– its employees
– Stockholders
– Suppliers
– Customers
– The society that will bear health care costs for the
diabetics►
Entities Use the campaign Do not use the campaign
Short-Run Long-Run Short-Run Long-Run
Company ↑Sales ↑Profits ↓reputation
KSOM
Employees ↑Reward ??
Stockholders ↑ROI ??
Suppliers ↑Business ??
Opportunity
Customers Happy eating ↑ Blood sugar owing
rice to regular eating
The Society ??/ ↑ taxes higher health care
costs from the long
term effects diabetes

2.Determine Benefits And Costs
For Each Alternative.
KSOM
Alternative I: If they use the campaign,
• High probability that company will benefit in the short run,
↑ sales ↑ profits ↑ reward for marketing team.
• Customers will be happy as they get their favorite staple
food
• Long-run: People will have high blood sugar, they or the
press may well discover the truth about the GL count which
will damage the firm’s reputation, and the society will incur
higher health care costs from the long term effects of
diabetes►

Determine Benefits And Costs For
Each Alternative.
KSOM
Alternative II: they don’t do the campaign
• Short-run: company will have the costs of
developing a new marketing approach and the
marketers will be disappointed.
• The people with diabetes may continue to look for
healthier food options and they will be
disappointed.
• In the longer run, the people will be healthier,
society’s costs will be lower, and the brand
reputation will be untarnished►
…Apply the test
KSOM
3. Select the action with the greatest net
benefit for all affected. Not doing the
campaign has more net good than doing the
campaign.
4. What if this action became a policy for
similar situations? Allowing deceptive
marketing claims would threaten the
sustainability of the company and harm
customers with very few benefits►
Conclusion
KSOM
• The product manager could argue that the marketing
plan is unethical both as an action and as a policy
because for Alternative I, doing the campaign, the
short term good for the firm of increased revenues
and the people’s happiness is outweighed by long
term harm, families, and society and the harm to the
firm’s brand image.
• The firm should choose Alternative II because it has
less harm and more long term good►

Next Class
KSOM
• The Rights Approach

Social Equity
KSOM
• Objectives
– To gain insights into impact an organization has on
the social systems within which it operates,
through its products and practices.
– Assess the social equity performance of a firm
based on GRI framework covering- labor practices
and decent work performance; human rights
performance; society performance; and product
responsibility performance.
5/7/2021 Social Equity 1
Social Equity
KSOM

KSOM
Physically inhibit
run cycles
Create
barriers to
people
meeting their
basic needs
worldwide
nature
materials from the
Earth’s crust
7 May 2021 Environmental Sustainability 3

Human Needs and
9 needs Principles for Meeting the needs
KSOM
Nine Needs Five Principles
1. Subsistence 1. Health
2. Protection 2. Influence
3. Participation 3. Competence
4. Undertaking 4. Impartiality
5. Affection 5. Meaning making
6. Idleness
7. Creation
https://www.youtube.com/watch?v=
8. Identity FyT9TMlzC6s
9. Freedom
Social Equity Sustainability
KSOM
1. Labor Practices And Decent Work
Performance , 6 aspects &16 Indicators ►
2. Human Rights Performance, 8 aspects & 12
Indicators ►
3. Society Performance, 5 aspects & 11
Indicators ►
4. Product Responsibility Performance, 5
aspects & 9 Indicators ►

Labor Practices And Decent Work:
1. Employment
KSOM
1. Total workforce by employment type, employment
contract, and region, broken down by gender.
2. Total number of rate of new employee hires and
employee turnover by age group, gender, and
region.
3. Benefits provided to full-time employees that are
not provided to temporary or part-time employees,
by significant locations of operation.
4. Return to work and retention rates after parental
leave, by gender. ►
7 May 2021 Economic & Social Equity 6
Labor Practices And Decent Work
2. Labor/ Management Relations
KSOM
1. Percentage of employees covered by
collective bargaining agreements.
2. Minimum notice period(s) regarding
operational changes, including whether it is
specified in collective agreements. ►

3. Occupational Health and Safety
KSOM
1. % of total workforce represented in formal joint
management-worker health and safety committees that help
monitor and advice on occupational health and safety
programs.
2. Rates of injury, occupational diseases, lost days, and
absenteeism, and total number of work-related fatalities, by
region and by gender.
3. Education, training, counseling, prevention, and risk-control
programs in place to assist workforce members, their
families, or community members regarding serious diseases.
4. Health and safety topics covered in formal agreements with
trade diseases. ►
4. Training and Education
KSOM
1. Average hours of training per year per employee by
gender, and by employee category.
2. Programs for skills management and lifelong
learning that support the continued employability
of employees and assist them in managing career
endings.
3. Percentage of employees receiving regular
performance and career development reviews, by
gender. ►

5. Diversity and equal opportunity
KSOM
1. Composition of governance bodies and
breakdown of employees per employee
category according to gender, age group,
minority group membership, and other
indicators of diversity ►

6. Equal remuneration for women and men
KSOM
1. Ratio of basic salary and remuneration of
woken to men by employee category, by
significant locations of operation. ►

Human Rights Performance Indicators
1. Investment and procurement practices
KSOM
• % and total number of significant investment
agreements and contracts that include clauses
incorporating human rights concerns, or that have
undertone human rights screening.
• % of significant suppliers, contractors, and other
business partners that have undergone human rights
screening, and actions taken.
• Total hours of employee training on policies and
procedures concerning aspects of human rights that
are relevant to operations, including the percentage
of employees trained.
7 May 2021
►
Economic & Social Equity 12
2. Non-Discrimination
KSOM
• Total number of incidents of discrimination
and corrective actions taken. ►

3. Freedom of association and collective bargaining
KSOM
• Operations and significant suppliers identified
in which the right to exercise freedom of
association and collective bargaining may be
violated or at significant risk, and actions
taken to support these rights. ►

4. Child Labour
KSOM
as having significant risk for incidents of child
labor, and measures taken to contribute to the
effective abolition of child labor. ►

5. Forced and Compulsory labor
KSOM
as having significant risk for incidents of forced
or compulsory labor, and measures to
contribute to the elimination of all forms of
forced or compulsory labor. ►

6. Security Practices
KSOM
• Percentage of security personnel trained in
the organization's policies or procedures
concerning aspects of human rights that are
relevant to operations. ►

7. Indigenous Rights
KSOM
• Total number of incidents of violations
involving rights of indigenous people and
actions taken. ►

8. Assessment & Remediation
KSOM
• Percentage and total number of operations
that have been subject to human rights
reviews and/or impact assessment.
• Number of grievances related to human rights
filed, addressed and resolved through formal
grievance mechanisms. ►

Society Performance Indicators
1. Local Communities
KSOM
• Percentage of operations with implemented
local community engagement, impact
assessments, and development programs.
• Operations with significant potential or actual
negative impacts on local communities.
• Prevention of mitigation measures
implemented in operations with significant
potential or actual negative impacts on local
communities. ►
2. Corruption
KSOM
• Percentage of total number of business units
analyzed for risks related to corruption.
• Percentage of employees trained in
organization's anti-corruption policies and
procedures.
• Actions taken in response to incidents of
corruption. ►

3. Public Policy
KSOM
• Public policy positions and participation in
public policy development and lobbying.
• Total value of financial and in-kind
contributions to political parties, politicians,
and related institutions by country. ►

4. Anti-Competitive Behavior
KSOM
• Total number of legal actions for anti-
competitive behavior, anti-trust, and
monopoly practices and their outcomes. ►

5. Compliance
KSOM
• Monetary value of significant fines and total
number of non-monetary sanctions for non-
compliance with laws and regulations. ►

Product Responsibility
1. Customer Health and Safety
KSOM
• Life cycle stages in which health and safety impacts
of products and services are assessed for
improvement, and percentage of significant products
and services categories subject to such procedures.
• Total number of incidents of non-compliance with
regulations and voluntary codes concerning health
and safety impacts of products and services during
their life cycle, by type of outcomes. ►

2. Product and Service Labeling
KSOM
• Type of product and service information required by
procedures, and percentage of significant products
and services subject to such information
requirements.
• Total number of incidents of non-compliance with
regulations and voluntary codes concerning product
and service information and labeling, by type of
outcomes.
• Practices related to customer satisfaction, including
results of surveys measuring customer satisfaction.
►
3. Marketing Communications
KSOM
• Programs for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising,
promotion, and sponsorship.
• Total number of incidents of non-compliance
with regulations and voluntary codes
concerning marketing communications,
including advertising, promotion, and
sponsorship by type of outcomes. ►
4. Customer Privacy
KSOM
• Total number of substantiated complaints
regarding breaches of customer privacy and
losses of customer data. ►

5. Compliance
KSOM
• Monetary value of significant fines for non-
compliance with laws and regulations
concerning the provision and use of products
and services. ►

Social Equity Sustainability
KSOM
• Labor Practices And Decent Work
Performance , 16 Indicators ►
• Human Rights Performance, 12 Indicators
►
• Society Performance, 11 Indicators ►
• Product Responsibility Performance, 9
Indicators ►

KSOM
Nine needs
Five Principles
Physically inhibit
run cycles
Create
barriers to
people
meeting their
basic needs
worldwide
nature
materials from the
Earth’s crust
7 May 2021 Environmental Sustainability 31

Next Class
Economic Sustainability Performance
KSOM
• Presentation on group work
• Organization’s contribution to the
sustainability of a larger economic system
– Economic Performance;
– Market Presence; and
– Indirect Economic Impacts ►

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The Man in the Mirror:

BECSR: 202-21 Individual Moral Development 1

Utilitarian Rights Fairness Common Virtue

BECSR: 202-21 Individual Moral Development 2

Utilitarian Rights Fairness Common Virtue

BECSR: 202-21 Individual Moral Development 3

Utilitarian Rights Fairness Common Virtue

BECSR: 202-21 Individual Moral Development 4

BECSR: 202-21 Individual Moral Development 5

BECSR: 202-21 Individual Moral Development 6

BECSR: 202-21 Individual Moral Development 7

BECSR: 202-21 Individual Moral Development 9

( ): A=4, B=3, C=2, D=1, E=0

#Q Choice Score #Q Choice Score #Q Choice Score #Q Choice Score

EC& PD: Affective Empathy PT & FS: Cognitive Empathy

BECSR: 202-21 Individual Moral Development 10

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1&2 3&4 5&6

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BECSR: 202-21 Individual Moral Development 15

BECSR: 202-21 Individual Moral Development 21

BECSR: 202-21 Individual Moral Development 22

BECSR: 202-21 Individual Moral Development 23

BECSR: 202-21 Individual Moral Development 24

BECSR: 202-21 Individual Moral Development 26

BECSR: 202-21 Individual Moral Development 30

BECSR: 202-21 Individual Moral Development 31

BECSR: 202-21 Individual Moral Development 32

BECSR: 202-21 Individual Moral Development 33

4/14/2021 Ethics in HRM 1

4/14/2021 Ethics in HRM 2

4/14/2021 Ethics in HRM 3

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4/14/2021 Ethics in HRM 9

4/9/2021 Ethics and Emerging Technologies 1

4/9/2021 Ethics and Emerging Technologies 2

4/9/2021 Ethics and Emerging Technologies 5

4/9/2021 Ethics and Emerging Technologies 6

4/9/2021 Ethics and Emerging Technologies 7

4/9/2021 Ethics and Emerging Technologies 8

14 April 2021 Ethics & Marketing Management 1

14 April 2021 Ethics & Marketing Management 3

14 April 2021 Ethics & Marketing Management 4

14 April 2021 Ethics & Marketing Management 6

14 April 2021 Ethics & Marketing Management 7

The Advertising Standards Council Of India

14 April 2021 Ethics & Marketing Management 9

14 April 2021 Ethics & Marketing Management 10

14 April 2021 Ethics & Marketing Management 12

2 April 2021 Ethical issues in finance and accounting 1

2 April 2021 Ethical issues in finance and accounting 3

2 April 2021 Ethical issues in finance and accounting 6

2 April 2021 Ethical issues in finance and accounting 7

2 April 2021 Ethical issues in finance and accounting 8

2 April 2021 Ethical issues in finance and accounting 9

2 April 2021 Ethical issues in finance and accounting 10