Reflection for each Topic should contain the following:
1.Key "take-aways" from the topic:Write what aspects of the topic were interesting and important to you? Give examples.
2.Why do you think the concepts of this topic is important for business and society?Give examples.
3.How would you apply the concepts of this topic to your career or future job?Application has to be specific and practical (not general) and should relate to your future career/job.
-Provide real-life exampleswherever required.
-In-text referencing and a reference list are expected where required- as per the Harvard UniSA format.
Submission is on-line in the Learnonline site. Due dates for each Reflection are mentioned above.
Text format:
- Times New Roman font type
- 12 pt font size
- 1.5 line spacing
- Only text files such as a Word document will be acceptable. PDFs will not be acceptable.
Please refer to the Assessment Feedback sheet for marking criteria and rubrics.
Date: ____________Student name: ______________________________ Topic no.____Topic name__________________________________ What’s your key “take-away” from this topic? Write what aspects of the topic were interesting and important to you and why? Give examples. Why do you think the concepts of this topic is important for business and society? Give examples. How would you apply the concepts of this topic to your career or future job? Application has to be specific and practical (not general) and should relate to your future career/job. References: (where required) Word count: 430 +/- 10% 1 Untitled Presentation BusinessEthics Topic -4 : Stakeholder management BUSS 5384 So far……… 1. Business in an environment of contested values & introduction to BE 2. What’s a business for? Purpose? 3. Corporate Social Responsibility (CSR) This week: Stakeholder management Objectives • Reflect on the managerial responsibilities towards stakeholders • Enhance understanding of the types of influential players with whom senior managers must interact to resolve conflict of interests & ensure organisational viability • Learn about ways to map, categorise, and prioritise different stakeholder claims • Discuss effective ways to handle difficult stakeholder situations and issues So, shareholders to stakeholders… Milton Friedman 1960-70s Edward Freeman 1980s Stakeholder Theory Professor Edward Freeman • What is stakeholder theory https://www.youtube.com/watch?v=bIRUaLcv Pe8 https://www.youtube.com/watch?v=bIRUaLcvPe8 Idea of the Stakeholder Model Contrasting models of the Corporation (Friedman vs Freeman) • Concern with STK interests and relationships • Managing organisations means to manage the relationships towards different STKs & to create value for them • Organisational success depends on - the relationship towards different STKs - the ability of the firm to create value for them - satisfy key STKs continually over time • Function of the executive: - to balance the interests of these groups - to increase the value that gets created for all of them - to keep their interests and desires headed roughly in the same direction Case: Shell Brent Spar – descriptive view https://www.youtube.com/watch?v=KToV-c8uvPc&feature=realted Who are the stakeholders involved in this case and what are their claims? https://www.youtube.com/watch?v=KToV-c8uvPc&feature=realted Case: Shell Brent Spar – descriptive view What are the conflicting arguments brought up by different STK groups with regard to the sinking of the platform? Licence to operate “You are not allowed to stick your car in the village pond, but this company can stick its rubbish in the sea” (Greenpeace Activist 1995) Shell Brent Spar – Reflective View What went wrong at Shell? Source: Freeman, Harrison & Wicks, 2007:51 Narrow Wide Narrow: vital to the survival & success of firm Wide: anyone who can affect or is affected by firm Source: Freeman, Harrison & Wicks, 2007:51 Shell Brent Spar – Reflective View What might Shell have done differently to avoid/manage the crisis? Source: Mitchell, Agle & Wood, 1997 Lessons learned from the Brent Spar case • A purely instrumental perspective focussed on Power and Urgency of STKs can be dangerous; also the legitimacy of claims is an essential factor when assessing the importance of STKs and their claims • Discretionary STKs can turn into definite ones and endanger the success/viability of a firm – so may multi-stakeholder alliances Applying Stakeholder thinking • What might Shell have done differently to avoid the crisis? Active stakeholder management Step 1: Identifying STKs at the generic level Step 2: Segmenting STKs into more meaningful categories Step 3: Prioritising STKs along the three factors of power, legitimacy, and urgency Step 4: Engage with all relevant STKs in an on-going dialogue Shell’s Lessons Learned* • The views of the “experts” are no longer accepted without challenge • Technical arrogance must be avoided. That engineering logic has been applied to a problem does not necessarily make an answer correct • There is a need to inform people about the issues involved in making such decisions, to reduce misconceptions, resolve misunderstandings, and to illustrate the difficulties in finding a balance amongst social, environmental, economic and safety issues * Complied by Shell in the aftermath of the Brent Spar incident Shell’s Lessons Learned* • Engineers and other “technical experts” must be able to communicate the complexities of an analysis, so that “non-experts” can understand and meaningfully contribute before a decision is made. • The importance of external perception should never be underestimated. The views of a wider public may be based more on perceptions than on facts * Complied by Shell in the aftermath of the Brent Spar incident Shell’s Lessons Learned* • Avoid DAD (Decide-Announce-Defend). Instead adopt DDD (Dialogue- Decide-Deliver). Dialogue should start as early as possible in the decision making process. • The days when companies were judged solely in terms of economic performance and wealth creation have long disappeared. Today, companies have far wider responsibilities to the environment, to local communities and to a broader society. These are not options extras. • Listening, dialogue, and more open communications, greater accountability – and approaches to building these into the ways that business is done – are all here to stay. Shell’s Lessons Learned* • Managers need to scan the broader business environment on a routine basis, and also be concerned with those groups that can affect the primary relationships • In case of conflict of interests managers need to be aware of the different communication levels (e.g. technical/relational/moral) and need to be able to understand and cope with different perspectives in order to resolve conflicts • Conflicts on interest need to be resolved constructively and mangers need to make sure that the interests of different STKs go into the same direction Activity • Sit in your groups • Consider the organisation selected for your Group Assignment • Identify five STKs at the generic level – be specific - Prioritise STKs along the three factors of power, legitimacy, and urgency - Select one STK who might step into the “Definitive” category - Under what conditions will that happen? -What will be your strategy to manage that STK PowerPoint Presentation Topic – 5 Ethical approaches to decision- making Common ethical problems Daily temptations Business Ethics BUSS 5384 Ethical approaches ……that leads to ethical decision-making In this topic, we outline the approaches to ethical decision-making Then, in Topic-8, we will discuss the models, methods and complexities of ethical decision-making Ethical approaches ……that leads to ethical decision-making 2 approaches to think about: • Prescriptive approach: helps to decide what decision you should make • Descriptive approach (more in Topic-8): describes how people actually make ethical decisions Ethical approaches ……that leads to ethical decision-making Ethical Dilemmas What are they? - A situation where two or more “right” values are in conflict Examples Approaches: Activity – 1 • Clarifying your values: - Clarify your personal ethical values before they are seriously challenged - From the selected list of values (you can add your own also), list 3 to 6 values that are most important to you, in priority order (1 being most important) - Next, think seriously what happens when two or more of these values conflict e.g. what happens when you value both honesty and success and they conflict - Next, think whether are there conflicts between your organisation’s values and those that you prioritised - Finally, list those values that you would choose to serve as the basis for business dealings in an ideal society. Trevino, LK & Nelson, KA, 2011, Managing business ethics: straight talk about how to do it right, 5th edn, John Wiley & Sons, New York Ethical approaches ……that leads to ethical decision-making Theories of prescriptive approaches: • Consequentialist or utilitarianism - focus on consequences • Deontological - focus on duty, obligations & principles • Virtue ethics - focus integrity Trevino, LK & Nelson, KA, 2011, Managing business ethics: straight talk about how to do it right, 5th edn, John Wiley & Sons, New York Consequentialist or utilitarian ……focus on consequences • Also referred to a teleological: Greek teleos = end and logos = reason • Principle of utility: ethical decision should maximise benefits to society and minimise harms • Identifying stakeholders as well as alternative actions and their consequences • Requires a mental calculation of all harms and benefits of the consequences, stakeholder by stakeholder • Requires you to think broadly about consequences for “society”, not just for yourself and those close to you. End justifies the means Greater good Problems with this theory?? Trevino, LK & Nelson, KA, 2011, Managing business ethics: straight talk about how to do it right, 5th edn, John Wiley & Sons, New York Consequentialist or utilitarian ……focus on consequences • An action is right if it produces, or if it tends to produce, the greatest amount of good for the greatest number of people affected by the action. • Cost-benefit analysis is a form of utility calculation • Difference between utilitarianism and a utility analysis: - Utility analysis: when it relates only to itself - Utilitarian analysis: when everyone is affected by the decision • Examples: - Ford Pinto - Airplane manufacturing case End justifies the means Greater good Problems with this theory?? Trevino, LK & Nelson, KA, 2011, Managing business ethics: straight talk about how to do it right, 5th edn, John Wiley & Sons, New York Deontological ……focus on duty, obligations, and principles • Deontological: Greek deon = duty • Rather than consequences, decisions are based on broad principles or values such as honesty, promise keeping, fairness, loyalty, rights, justice, responsibility, compassion, and respect for human beings and property • Certain moral principles are binding regardless of consequences • Some actions would be considered wrong even if the consequences were good • First step: knowing what values are important to you and how you prioritise them • How does a deontologist determine what rule, principles, or right to follow? - Golden Rule: Do unto others as you would have them do unto you - Immanuel Kant’s Categorical Imperative: Act as if the maxim of your action were to become by your will a universal law of nature Means rather than consequences Problems with this theory?? Trevino, LK & Nelson, KA, 2011, Managing business ethics: straight talk about how to do it right, 5th edn, John Wiley & Sons, New York Deontological ……focus on duty, obligations, and principles • Actions are morally right or wrong independent of their consequences • One’s duty is to do what is morally right and to avoid what is morally wrong, regardless of the consequences • Summarizing Kant’s vision we must: 1. Act towards a universal good. 2. Treat others like family, with a simple and positive mean 3. Act as you feel would be best for humanity. There is no absolute right or absolute wrong. There is intention and action which brings consequences. Even a lie could be good if the motive is the