Summary Ethics and the Future of
Business
Lecture 1. Morals and Ethics ............................................................................................. 4
Chapter 3: evaluating Business Ethics ....................................................................................... 4
Introduction .................................................................................................................................................. 4
The role of ethical theory .............................................................................................................................. 4
Normative ethical theories and religion ....................................................................................................... 5
Western Modernist Ethical theories ............................................................................................................. 5
Consequentialist Theories ........................................................................................................................ 5
Principle based theories ........................................................................................................................... 7
Alternative perspectives on ethical theory ................................................................................................... 9
Summary: ...................................................................................................................................................... 9
1.2 The moral machine ........................................................................................................... 10
Global preferences ...................................................................................................................................... 10
Individual variations .................................................................................................................................... 10
Cultural clusters .......................................................................................................................................... 10
Country-level predictors ............................................................................................................................. 11
Discussion.................................................................................................................................................... 11
A new model for ethical leadership ........................................................................................ 11
Maximising value ........................................................................................................................................ 11
Overcoming barriers ................................................................................................................................... 11
Creating value through trade-offs ............................................................................................................... 12
Using time to create value .......................................................................................................................... 12
Ted – Video............................................................................................................................ 12
Lecture 2. Behaviours and actions ................................................................................... 14
Chapter 4. Making decisions in business ethics ....................................................................... 14
Introduction ................................................................................................................................................ 14
What is an ethical decision? ........................................................................................................................ 14
Models of ethical decision-making ............................................................................................................. 14
Stages in ethical decision-making........................................................................................................... 14
Relationship with normative theory....................................................................................................... 15
Influences on ethical decision-making ................................................................................................... 15
Limitations of ethical decision-making models ...................................................................................... 15
International perspectives on ethical decision-making.......................................................................... 15
Key individual influences on ethical decision-making ................................................................................. 15
1) Age and gender ............................................................................................................................ 15
2) National and cultural characteristics ........................................................................................... 15
3) Education and employment ......................................................................................................... 16
4) Psychological factors .................................................................................................................... 16
5) Personal values: ........................................................................................................................... 17
6) Personal integrity: ........................................................................................................................ 17
7) Moral imagination: ...................................................................................................................... 18
Situational influences on decision-making.................................................................................................. 18
Issue related factors ............................................................................................................................... 18
Context related factors: ......................................................................................................................... 19
How unethical are you?.......................................................................................................... 21
4 sources of unintentional decision making: .............................................................................................. 21
Implicit prejudice .................................................................................................................................... 21
, Bias that favours your group .................................................................................................................. 22
Overclaiming credit ................................................................................................................................ 22
Conflict of interest .................................................................................................................................. 22
Trying harder isn’t enough .......................................................................................................................... 22
Collect data............................................................................................................................................. 22
Shape your environment ........................................................................................................................ 23
Broaden your decision making ............................................................................................................... 23
The vigilant manager ................................................................................................................................... 23
Ethics and Effectiveness: The Nature of Good Leadership ........................................................ 23
Introduction ................................................................................................................................................ 23
Ethikos and Morale ..................................................................................................................................... 23
Hitler problem ............................................................................................................................................. 23
Agency and moral luck ................................................................................................................................ 24
Relationship between ethics and effectiveness .......................................................................................... 24
Deontological and teleological theories...................................................................................................... 24
Moral standards .......................................................................................................................................... 24
Altruism ....................................................................................................................................................... 24
Why being a leader is not in an ethical person’s self-interest .................................................................... 24
Transforming leadership ............................................................................................................................. 25
Transformational leadership ....................................................................................................................... 25
Critics of transformational and charismatic leadership theories ........................................................... 25
Knocking leaders off their pedestals ........................................................................................................... 25
Bathsheba syndrome .................................................................................................................................. 26
Self-discipline and virtue ............................................................................................................................. 26
Conclusion ................................................................................................................................................... 26
Lecture 3: Strategies and stakeholders ............................................................................ 27
The evolutionary bases for sustainable behaviour: implications for marketing, policy and social
entrepreneurship ................................................................................................................... 27
Evolution and modern behaviour ............................................................................................................... 27
Distinguish proximate and ultimate causes of behaviour ...................................................................... 27
Mismatches between current and ancestral environments .................................................................. 28
Evolutionary reasons for modern ecological problems .......................................................................... 28
Social entrepreneurship: research as disciplined exploration................................................... 30
Introduction ................................................................................................................................................ 30
The scope of exploration ............................................................................................................................. 30
Landscape of social enterprises – emerging patterns ................................................................................. 30
Legal form as a choice ............................................................................................................................ 30
Participating in the market for public purpose ...................................................................................... 30
The social footprint of social enterprises ............................................................................................... 31
Social enterprises as institutional change agents .................................................................................. 31
Continuing research on social enterprises as disciplined exploration ........................................................ 31
Five-step approach to stakeholder engagement ...................................................................... 31
Step 1: stakeholder engagement theory ..................................................................................................... 32
Building a strategic vision ....................................................................................................................... 32
Step 2: stakeholder mapping ...................................................................................................................... 32
Step 3 & 4: preparation and engagement ................................................................................................... 32
Core engagement principles .................................................................................................................. 32
Considerations for in-person engagement ............................................................................................. 32
The engagement..................................................................................................................................... 33
Step 5: action plan ...................................................................................................................................... 33
Closing the feedback loop ........................................................................................................................... 33
Lecture 4: Challenge & Solutions ..................................................................................... 33
,Beyond GDP: measuring and achieving global genuine progress .............................................. 33
Introduction ................................................................................................................................................ 33
Critiques of GPI and responses ................................................................................................................... 33
Countries for which GPI has been estimated .............................................................................................. 33
Methods ...................................................................................................................................................... 33
Results ......................................................................................................................................................... 34
Discussion.................................................................................................................................................... 34
Global estimates ......................................................................................................................................... 34
Conclusion ................................................................................................................................................... 34
Climate change 2021, the physical science bases – summary for policymakers ......................... 34
The current state of the climate ................................................................................................................. 35
Possible climate futures .............................................................................................................................. 35
Climate information for risk assessment and regional adaptation ............................................................. 35
Limiting future climate change ................................................................................................................... 36
The triple layered business model canvas: a tool to design more sustainable business models . 36
Abstract ....................................................................................................................................................... 36
Introduction ................................................................................................................................................ 36
Business models and business model canvases .......................................................................................... 36
A canvas as a creative tool for business model innovation .................................................................... 36
Building on the original canvas............................................................................................................... 36
Presentation of the triple layered business model canvas tool .................................................................. 37
Foundation of the environmental layer of the TLBMC ........................................................................... 37
Foundation of the social layer of the TLBMC ......................................................................................... 37
Elements of the TLBMC layers through nespresso’s business model ......................................................... 37
Discussion.................................................................................................................................................... 37
Field testing the TLBMC.......................................................................................................................... 37
New dynamics in a layered approach to a business model canvas ........................................................ 37
Limits and future research ..................................................................................................................... 37
Conclusion ................................................................................................................................................... 37
, Lecture 1. Morals and Ethics
Chapter 3: evaluating Business Ethics
Brief overview of some western modernist theories of ethics. Compare and contrast basic
premises of each theory and think about how they can be used together in a pluralistic way
to support our decision-making
Morality: humans’ ability to distinguish between what is right and wrong
Ethics: the systematic study of morality. Typically examines the right and wrong from the
perspective of a human being (anthropocentric). Aim is to affect practice
Ethical theories: principles and rules that determine right and wrong in different situations.
Can give contradictory solutions to same problems
Challenges of business ethics
- Comprehensive: address challenging questions at individual, organizational, and
societal levels
- Cross-disciplinary: management, philosophy, political science…
- Abstract nature
- Critical thinking
- Experience
Law and ethics: intertwined → morality is the foundation of the law
- Law doesn’t cover all issues (eg. cheating)
- Not all legal issues are ethical (eg. Driving on the right side of road)
- Law and ethics can be contradictory (eg. Apartheid)
Introduction
Normative ethical theories: rules, guidelines, principles and approaches that determine right
and wrong (how we ought to behave) (attempts to discover what is right and wrong, what
things are good or bad)
Descriptive: code of conduct (all rational beings/a group in society) adhere to (describes
people’s beliefs, claims…)
The role of ethical theory
Ethical absolutism: eternal, universally applicable moral principles → right and wrong are
objective qualities that can be rationally determined, irrespective of circumstances → Most
traditional western modernist ethical theories
Ethical relativism: context-dependent and subjective → no universally rights and wrongs
that can be rationally determined
(normative relativism and descriptive relativism?)
Ethical pluralism: alternative approach to absolutism and relativism, incompatible values
can be equally legitimate and tolerate them as such. Can be overly tolerant (puts neither on
an equal footing, nor one over another)
Business
Lecture 1. Morals and Ethics ............................................................................................. 4
Chapter 3: evaluating Business Ethics ....................................................................................... 4
Introduction .................................................................................................................................................. 4
The role of ethical theory .............................................................................................................................. 4
Normative ethical theories and religion ....................................................................................................... 5
Western Modernist Ethical theories ............................................................................................................. 5
Consequentialist Theories ........................................................................................................................ 5
Principle based theories ........................................................................................................................... 7
Alternative perspectives on ethical theory ................................................................................................... 9
Summary: ...................................................................................................................................................... 9
1.2 The moral machine ........................................................................................................... 10
Global preferences ...................................................................................................................................... 10
Individual variations .................................................................................................................................... 10
Cultural clusters .......................................................................................................................................... 10
Country-level predictors ............................................................................................................................. 11
Discussion.................................................................................................................................................... 11
A new model for ethical leadership ........................................................................................ 11
Maximising value ........................................................................................................................................ 11
Overcoming barriers ................................................................................................................................... 11
Creating value through trade-offs ............................................................................................................... 12
Using time to create value .......................................................................................................................... 12
Ted – Video............................................................................................................................ 12
Lecture 2. Behaviours and actions ................................................................................... 14
Chapter 4. Making decisions in business ethics ....................................................................... 14
Introduction ................................................................................................................................................ 14
What is an ethical decision? ........................................................................................................................ 14
Models of ethical decision-making ............................................................................................................. 14
Stages in ethical decision-making........................................................................................................... 14
Relationship with normative theory....................................................................................................... 15
Influences on ethical decision-making ................................................................................................... 15
Limitations of ethical decision-making models ...................................................................................... 15
International perspectives on ethical decision-making.......................................................................... 15
Key individual influences on ethical decision-making ................................................................................. 15
1) Age and gender ............................................................................................................................ 15
2) National and cultural characteristics ........................................................................................... 15
3) Education and employment ......................................................................................................... 16
4) Psychological factors .................................................................................................................... 16
5) Personal values: ........................................................................................................................... 17
6) Personal integrity: ........................................................................................................................ 17
7) Moral imagination: ...................................................................................................................... 18
Situational influences on decision-making.................................................................................................. 18
Issue related factors ............................................................................................................................... 18
Context related factors: ......................................................................................................................... 19
How unethical are you?.......................................................................................................... 21
4 sources of unintentional decision making: .............................................................................................. 21
Implicit prejudice .................................................................................................................................... 21
, Bias that favours your group .................................................................................................................. 22
Overclaiming credit ................................................................................................................................ 22
Conflict of interest .................................................................................................................................. 22
Trying harder isn’t enough .......................................................................................................................... 22
Collect data............................................................................................................................................. 22
Shape your environment ........................................................................................................................ 23
Broaden your decision making ............................................................................................................... 23
The vigilant manager ................................................................................................................................... 23
Ethics and Effectiveness: The Nature of Good Leadership ........................................................ 23
Introduction ................................................................................................................................................ 23
Ethikos and Morale ..................................................................................................................................... 23
Hitler problem ............................................................................................................................................. 23
Agency and moral luck ................................................................................................................................ 24
Relationship between ethics and effectiveness .......................................................................................... 24
Deontological and teleological theories...................................................................................................... 24
Moral standards .......................................................................................................................................... 24
Altruism ....................................................................................................................................................... 24
Why being a leader is not in an ethical person’s self-interest .................................................................... 24
Transforming leadership ............................................................................................................................. 25
Transformational leadership ....................................................................................................................... 25
Critics of transformational and charismatic leadership theories ........................................................... 25
Knocking leaders off their pedestals ........................................................................................................... 25
Bathsheba syndrome .................................................................................................................................. 26
Self-discipline and virtue ............................................................................................................................. 26
Conclusion ................................................................................................................................................... 26
Lecture 3: Strategies and stakeholders ............................................................................ 27
The evolutionary bases for sustainable behaviour: implications for marketing, policy and social
entrepreneurship ................................................................................................................... 27
Evolution and modern behaviour ............................................................................................................... 27
Distinguish proximate and ultimate causes of behaviour ...................................................................... 27
Mismatches between current and ancestral environments .................................................................. 28
Evolutionary reasons for modern ecological problems .......................................................................... 28
Social entrepreneurship: research as disciplined exploration................................................... 30
Introduction ................................................................................................................................................ 30
The scope of exploration ............................................................................................................................. 30
Landscape of social enterprises – emerging patterns ................................................................................. 30
Legal form as a choice ............................................................................................................................ 30
Participating in the market for public purpose ...................................................................................... 30
The social footprint of social enterprises ............................................................................................... 31
Social enterprises as institutional change agents .................................................................................. 31
Continuing research on social enterprises as disciplined exploration ........................................................ 31
Five-step approach to stakeholder engagement ...................................................................... 31
Step 1: stakeholder engagement theory ..................................................................................................... 32
Building a strategic vision ....................................................................................................................... 32
Step 2: stakeholder mapping ...................................................................................................................... 32
Step 3 & 4: preparation and engagement ................................................................................................... 32
Core engagement principles .................................................................................................................. 32
Considerations for in-person engagement ............................................................................................. 32
The engagement..................................................................................................................................... 33
Step 5: action plan ...................................................................................................................................... 33
Closing the feedback loop ........................................................................................................................... 33
Lecture 4: Challenge & Solutions ..................................................................................... 33
,Beyond GDP: measuring and achieving global genuine progress .............................................. 33
Introduction ................................................................................................................................................ 33
Critiques of GPI and responses ................................................................................................................... 33
Countries for which GPI has been estimated .............................................................................................. 33
Methods ...................................................................................................................................................... 33
Results ......................................................................................................................................................... 34
Discussion.................................................................................................................................................... 34
Global estimates ......................................................................................................................................... 34
Conclusion ................................................................................................................................................... 34
Climate change 2021, the physical science bases – summary for policymakers ......................... 34
The current state of the climate ................................................................................................................. 35
Possible climate futures .............................................................................................................................. 35
Climate information for risk assessment and regional adaptation ............................................................. 35
Limiting future climate change ................................................................................................................... 36
The triple layered business model canvas: a tool to design more sustainable business models . 36
Abstract ....................................................................................................................................................... 36
Introduction ................................................................................................................................................ 36
Business models and business model canvases .......................................................................................... 36
A canvas as a creative tool for business model innovation .................................................................... 36
Building on the original canvas............................................................................................................... 36
Presentation of the triple layered business model canvas tool .................................................................. 37
Foundation of the environmental layer of the TLBMC ........................................................................... 37
Foundation of the social layer of the TLBMC ......................................................................................... 37
Elements of the TLBMC layers through nespresso’s business model ......................................................... 37
Discussion.................................................................................................................................................... 37
Field testing the TLBMC.......................................................................................................................... 37
New dynamics in a layered approach to a business model canvas ........................................................ 37
Limits and future research ..................................................................................................................... 37
Conclusion ................................................................................................................................................... 37
, Lecture 1. Morals and Ethics
Chapter 3: evaluating Business Ethics
Brief overview of some western modernist theories of ethics. Compare and contrast basic
premises of each theory and think about how they can be used together in a pluralistic way
to support our decision-making
Morality: humans’ ability to distinguish between what is right and wrong
Ethics: the systematic study of morality. Typically examines the right and wrong from the
perspective of a human being (anthropocentric). Aim is to affect practice
Ethical theories: principles and rules that determine right and wrong in different situations.
Can give contradictory solutions to same problems
Challenges of business ethics
- Comprehensive: address challenging questions at individual, organizational, and
societal levels
- Cross-disciplinary: management, philosophy, political science…
- Abstract nature
- Critical thinking
- Experience
Law and ethics: intertwined → morality is the foundation of the law
- Law doesn’t cover all issues (eg. cheating)
- Not all legal issues are ethical (eg. Driving on the right side of road)
- Law and ethics can be contradictory (eg. Apartheid)
Introduction
Normative ethical theories: rules, guidelines, principles and approaches that determine right
and wrong (how we ought to behave) (attempts to discover what is right and wrong, what
things are good or bad)
Descriptive: code of conduct (all rational beings/a group in society) adhere to (describes
people’s beliefs, claims…)
The role of ethical theory
Ethical absolutism: eternal, universally applicable moral principles → right and wrong are
objective qualities that can be rationally determined, irrespective of circumstances → Most
traditional western modernist ethical theories
Ethical relativism: context-dependent and subjective → no universally rights and wrongs
that can be rationally determined
(normative relativism and descriptive relativism?)
Ethical pluralism: alternative approach to absolutism and relativism, incompatible values
can be equally legitimate and tolerate them as such. Can be overly tolerant (puts neither on
an equal footing, nor one over another)
