Lecture 3Business Ethics – Psychological TheoriesDr Warren .docx

Lecture 3:
Business Ethics – Psychological Theories
Dr Warren Staples
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Recap – Lecture 2
Moral agency
Moral responsibility
Principal-Agent relationships
Teleology & Deontology
Utilitarianism, Virtue ethics, Kantianism & Justice ethics
Guidant consultant
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Clivosaurus
Queensland Nickel (QNI)
Dispersed more than $170m from the company’s accounts.
Palmer (Smee 2019): “People all across Australia are having
trouble now with liquidators and receivers, businesses are
closing ... because of their unconscionable behaviour,” Palmer
huffed.
“So when that happens to someone like me, I’ve got a moral
responsibility not to give up. That’s what I’m doing. It is the

greater good.”
Linden – “More front than a mine Haulpak”
3rd week of case - Palmer settles
Shadow director case awaits? Instructing directors to move $
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Learning overview
Ethical decision making process
Cognitive Moral Reasoning/Development (CMR/CMD)
Moral intensity
Making decisions in business
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Ethical decision making 1
The developing consensus in business ethics is that ethical
decision making is affected by:
the person and personal variables (values, character,
personality, identity, CMD, etc.)
the situation and situational variables (organisational culture,
climate, industry etc.) and
the issue (moral intensity).

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Individual characteristics
Recognition/ Moral awareness
Moral judgement
Intent
Moral behaviour
Organisational characteristics
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Recognition/Moral awareness - Moral agent recognizes the
moral issue(s)
Judgement - Agent engages in some form of moral reasoning to
arrive at moral judgement
Intent - Moral agent establishes moral intent and decides to take
moral action
Behaviour - Agent translates intent to behaviour
Witness a colleague steal an office printer

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Moral awareness
the initial step in the ethical decision making process
the situation or issue is interpreted as a moral issue
leads to moral judgement
The person recognizes that a decision or action has
consequences for other human beings and he/she has some
choice in dealing with the issue (Jones 1991)
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Moral awareness at work
is more likely if an individual believes that co-workers will see
it as ethically problematic
is more likely if moral language is used to present the situation
to the decision maker
is more likely if the decision is seen as having the potential to
produce serious harm to others (magnitude of consequences)
(Trevino & Nelson 2006)
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Ethical decisions & behaviour

Moral judgement
Intent
Moral behaviour
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Individual influences on ethical decision making
Age and gender
National and cultural characteristics
Education and employment
Psychological factors:
Cognitive moral development (Kohlberg)
Locus of control
Personal values – (Chin, Hambrick & Treviño 2013)
Personal integrity
Moral imagination
(Crane & Matten, 2008)
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Cognitive moral development
Developmental psychologist Jean Piaget studied the moral
reasoning of Swiss children and suggested it went through
stages
American psychologist Lawrence Kohlberg extended Piaget’s
developmental approach to include adults and teenagers
The main criteria of Kohlberg’s model of cognitive moral
development reflect consciousness: babies are naturally selfish
(psychological egoism), children grow also to focus on their
family and friends, and adults naturally come to develop
broader perspectives
Kohlberg’s theory is widely employed in the study and practice
of business ethics
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Kohlberg’s stages of cognitive moral development (CMD)
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Kohlberg’s stage 1: punishment & obedience
The decision as to what behaviour is right is largely determined
by the rewards and punishments and favours associated with the
action.
This suggests people follow laws and rules automatically
because they do not want the negative consequences.

Conversely, they are likely to pursue wrong action if the
perceived risk of detection is low, and punishment from
wrongful behaviour is unlikely or insignificant.
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Stage 2: Fairness to oneself
Recognition of personal reward and satisfaction and a duty to
oneself develops. One make decisions not only on the basis of
specific rules/authority (Stage 1)
This concept is known as reciprocity. The “you scratch my back
and I’ll scratch yours” approach.
People engage in behaviour that they know will yield possible
favours in return, or feel obliged to repay a debt.
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Kohlberg’s stage 3: emphasizes others
What is morally right is that which either helps or is approved
by others close to you.
Important concepts : trust and loyalty.
People may do what is asked of them by a boss or managers
because they want to please them or because others whom we
respect say its important to follow the directions of our bosses.
Stage 3 differs from Stage 2 as one will consider others in one’s
motives in Stage 3.

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Kohlberg’s stage 4: one’s duty to society
Our perspective broadens to consider the wider societal group.
People tend to make decisions based on the agreed duties and
following rules which are designed to promote the common
good.
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Kohlberg’s stage 5: just rules determined by consensus
People still regard rules and laws (Stages 1-4) as important,
because they maintain social cohesion (known as the concept of
social contract). But, moral reasoning shifts from established
rules to reliance on personally held principles.
Stage 5 differs from Stage 4 people. The latter accepts laws
without questions or evaluation.
E.g. Complying with existing rules shareholders are given an
Annual Report (Stage 4). But, consensus/feedback/questioning
(Stage 5) argue that not all shareholders need the full annual
report. Hence, summary annual reports are given nowadays
(with requests for full report if necessary)
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Kohlberg’s stage 6: universal ethical principles
People have moved to a higher level in which the notion of
universal laws and principles are applied.
Justice and equality are examples of universal principles.
One will be more concerned with societal ethical issues and not
rely on business organization for ethical direction. E.g.
discontinue a product if death is caused. Company profits would
not be a justification for continued sales.
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CMD and moral philosophy
the consensus on moral development is generally contained in
three levels (Crittenden, 1993)
a pre-moral or proto-moral stage (Level 1)
a middle stage where morality is heteronomous (Level 2) and
a mature stage where morality is autonomous (Level 3).
The three levels correspond with the egoism, benevolence
(teleology) and principle (deontology) classes of ethical theory.
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Kohlberg’s CMD
Kohlberg (1976) claims that to act in a morally high way one
has to have a high stage of moral reasoning. He accepts however
that reasoning in a high level does not necessarily lead to
behaving in a moral way.
“One can, … reason in terms of such principles and not live up
to them” because a variety of factors determine whether a

person will act his or her stage of moral reasoning in a
particular situation
In business organisations people regress morally…
CMD explains little of the variance in moral behaviour in
business research (Jones and Ryan, 1998)
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Limitation of Kohlberg’s model
With time, education, and experience, one may change their
values and ethical behavior which is not true in reality. An
“adult’ does act like a “child” and vice versa. Stability in
human behaviour often may not exist
Different cultures might rank different stages differently –e.g.
Stage 3: Emphasizes others rather than themselves in Asian
context may be regarded as Stage 5: Just rules determined by
consensus in Western countries
Does not take into account the context of decision making. It
examines what a person thinks rather than how he or she thinks,
and how the moral action that follows the thought.
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Limitations of Kohlberg’s model
Kohlberg’s original research has limitations – data collected
only from US males.
Gilligan (1982) ‘care voice’ conducted other research and noted
that women rarely surpass Kohlberg’s stage 3:
Stage 1: Women tend to overemphasize interests of their selves
Stage 2: Women overemphasize others’ interests

Stage 3; Women weave their own interests together with those
of others
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Locus of control
Individual’s perception of how much control s/he exerts over
events in life.
High internal locus of control: perception that outcomes result
from own efforts
More likely to take responsibility for the consequences of
actions.
More likely to help another person, resist pressure to be
unethical.
High external locus of control: perception that outcomes result
from fate, luck, powerful others.
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Ethical decisions & behaviour
Moral judgement
Intent
Moral behaviour

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Situation influences on ethical decision making
Issue related:
Moral intensity
Moral framing
Context related:
Rewards
Authority
Bureaucracy
Work roles
Organisational culture
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Moral intensity – Jones (1991)
Strength/seriousness of the moral issue
affects the recognition of the moral issue, the making of moral
judgement, the establishment of moral intent and the
engagement in moral behaviour.

managers' ethical decision making is a function of the moral
intensity of the encountered dilemma.
focuses on the moral issue, not on the moral agent or the
organisational context.
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Components of moral intensity
Magnitude of consequences: the sum of the harms or benefits
done to victims or beneficiaries of the moral act in question.
Social consensus: the degree of social agreement that a
proposed act is evil or good.
Probability of effect: the act in question will actually take place
and the act in question will cause the harm or benefit predicted.
Temporal immediacy: the length of time between the present
and the onset of consequences of the moral act in question
Proximity: the feeling of nearness (social, cultural,
psychological, or physical) that the moral agent has for victims
or beneficiaries of the evil or beneficial act in question.
Concentration of effect: an inverse function of the number of
people affected by an act of a given magnitude.
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Moral certainty
Silo mentality, organisational structure and unethical culture
may reduce moral certainty
The lack of moral dialogue in organisations may reduce moral
certainty
Codes of ethics and ethics training in organisations may

increase moral certainty
(Jones and Ryan 1998)
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Fulfillment of roles – deindividuation process
Conflicting roles may lead to unethical behaviour
The Zimbardo prison experiment
People do what they are told- obedience to authority
The Milgram experiments
Obedience to authority at work
Diffusion of responsibility:
individuals encouraged to push responsibility up the
organisational hierarchy
diffusion of responsibility in groups
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Other influences on ethical decision making
Groupthink (Janis 1972)
When pressure for consensus prevents the group from making a
proper appraisal of alternative courses of action
Symptoms include: Illusion of invulnerability, belief in inherent
morality of the group, collective rationalization, out of group
stereotypes, self-censorship, illusion of unanimity, direct
pressure on dissenters
Scripts and Schemata (Gioia 1992)
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Ethical decision in business
Gather the facts

Define ethical issues (moral awareness)
Identify the affected parties (stakeholder analysis)
Identify the consequences (teleology)
Identify the obligations (deontology)
Consider your character and integrity (virtue ethics)
Think creatively about potential actions (moral imagination)
Check your gut feeling (hunch, intuition)
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Conclusions
Org v Individual characteristics
Morality develops passively, ethics actively
Decisions in Orgs – hierarchy & diffusion
Multiple perspectives – normative & psychological
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The hiring decision
After reading the case write a list of issues that Pat should
consider.
Identify the ethical issues Pat is facing.
Identify the elements that are likely to affect Pat’s decision
(personal, organisational and issue related).
How would you describe the (moral) language used in the

dialogue between Pat and Taylor?
How would you rate the moral intensity (consider the
components of moral intensity) of the issue Pat is facing?
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Review questions:
1. Explain what Kohlberg meant by cognitive moral
development (CMD). What did Kohlberg mean by
“conventional”, “pre-conventional” and “post-conventional”
levels of CMD?
2. Describe the ethical decision making process.
3. What is moral awareness and why is it the most important
step in the ethical decision making process?
4. What is moral approbation and moral intensity?
‹#›
1. Kohlberg’s stages of cognitive moral development (CMD).
Level 1 – Preconventional (self-orientation) (ego)
Stage 1 – Avoiding punishment by not breaking rules
Stage 2 – Acting to receive rewards. Awareness of Other’s
needs, but not of right wrong as abstract consequences.
Level 2 – Conventional (Other orientation) Teological
Stage 3 – Acting “right” to be a “good” person, to be accepted
by family and friends

Stage 4 – Acting “right” to comply with the law.
Level 3 – Autonomous (Humankind orientation) Deontological
Stage 5 – Acting “right” to reach consensus by due process.
Aware of relativity of values, tolerates differing views.
Stage 6 – Acting “right” according to universal abstract
principles, able to defend those principles through reason.
Ethical Decision making – Recognition – Judgement - Intent –
Behaviour.
Moral approbation – the desire to be seen as moral by
themselves an others
Moral intensity - affects recognition of the moral issue –
magnitude, social consensus, probability of effect, temporal
immediacy, proximity, concentration of effect
Cognitive biases – consideration of consequences,
underestimation of risk, consequences over time (escalation),
illusion of superiority, groupthink, scripts
35
References
Crittenden, P 1990, Learning to be moral: Philosophical
thoughts about moral development, Humanities Press
International New Jersey.
Chin, M.K., Hambrick, D.C., and Trevino, L.K. (2013),
"Political ideologies of CEOs: Illustrative evidence of the
influence of executive values on corporate social
responsibility", Administrative Science Quarterly
Ferrell, OC, Fraedrich, J & Ferrell, L 2005, Business ethics:
Ethical decision making and cases, Houghton Mifflin, Boston.
Forsyth, DR 1992, 'Values, conceptions of science, and the
social psychological study of morality', in WM Kurtines,
Azmitia, M., & Gewirtz, J. L. (ed.), The role of values in
psychology and human development, John Wiley & Sons, New
York, pp. 239-55.
Gilligan, C 1982, In a different voice: Psychological theory and
women's development, Harvard University Press, Cambridge

MA.
Gioia, DA 1992, 'Pinto fires and personal ethics: A script
analysis of missed opportunities', Journal of Business Ethics,
vol. 11, pp. 379-89.
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References
Janis, IL 1972, Victims of Groupthink, Houghton Mifflin,
Boston.
Jones, TM 1991, 'Ethical decision making by individuals in
organizations: An issue-contingent model', Academy of
Management Review, vol. 16, no. 2, pp. 366-95.
Jones, TM & Ryan, LV 1998, 'The effect of organizational
forces on individual morality: Judgment, moral approbation, and
behavior', Business Ethics Quarterly, vol. 8, no. 3, pp. 431-45.
Kohlberg, L 1976, 'Moral stages and moralization: The
cognitive-developmental approach', in T Lickona (ed.), Moral
development and behavior, Holt, Rinehart and Winston, New
York, pp. 31-53.
Trevino, LK, & Nelson, K. A. 2006, Managing business ethics:
Straight talk about how to do it right, 4 edn, John Wiley &
Sons, New York.
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OPERATIONAL PLANNING WORKSHEET (ICS 215)
1. Incident Name:
2. Operational Period: Date From: Date To:
Time From: Time To:
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11. Total Resources
Required
12. Total Resources
Have on Hand
ICS 215
13. Total Resources

Need To Order
14. Prepared by:
Name:
Position/Title:
Signature:
Date/Time:
ICS 215
Operational Planning Worksheet
Purpose. The Operational Planning Worksheet (ICS 215)
communicates the decisions made by the Operations Section
Chief during the Tactics Meeting concerning resource
assignments and needs for the next operational period. The ICS
215 is used by the Resources Unit to complete the Assignment
Lists (ICS 204) and by the Logistics Section Chief for
ordering resources for the incident.
Preparation. The ICS 215 is initiated by the Operations Section
Chief and often involves logistics personnel, the
Resources Unit, and the Safety Officer. The form is shared with
the rest of the Command and General Staffs during the
Planning Meeting. It may be useful in some disciplines or
jurisdictions to prefill ICS 215 copies prior to incidents.
Distribution. When the Branch, Division, or Group work
assignments and accompanying resource allocations are agreed

upon, the form is distributed to the Resources Unit to assist in
the preparation of the ICS 204. The Logistics Section will
use a copy of this worksheet for preparing requests for
resources required for the next operational period.
Notes:
• This worksheet can be made into a wall mount.
• Also available as 8½ x 14 (legal size) and 11 x 17 chart.
• If additional pages are needed, use a blank ICS 215 and
repaginate as needed.
Block
Number Block Title Instructions
1 Incident Name Enter the name assigned to the incident.
2 Operational Period
• Date and Time From
• Date and Time To
Enter the start date (month/day/year) and time (using the 24-
hour clock)
and end date and time for the operational period to which the
form applies.
3 Branch Enter the Branch of the work assignment for the
resources.
4 Division, Group, or Other Enter the Division, Group, or other
location (e.g., Staging Area) of the work
assignment for the resources.
5 Work Assignment &
Special Instructions
Enter the specific work assignments given to each of the

Divisions/Groups
and any special instructions, as required.
Resources Complete resource headings for category, kind, and
type as appropriate for
the incident. The use of a slash indicates a single resource in
the upper
portion of the slash and a Strike Team or Task Force in the
bottom portion
of the slash.
• Required Enter, for the appropriate resources, the number of
resources by type
(engine, squad car, Advanced Life Support ambulance, etc.)
required to
perform the work assignment.
• Have Enter, for the appropriate resources, the number of
resources by type
(engines, crew, etc.) available to perform the work assignment.
6
• Need Enter the number of resources needed by subtracting the
number in the
“Have” row from the number in the “Required” row.
7 Overhead Position(s) List any supervisory and nonsupervisory
ICS position(s) not directly
assigned to a previously identified resource (e.g.,
Division/Group
Supervisor, Assistant Safety Officer, Technical Specialist, etc.).
8 Special Equipment &
Supplies

List special equipment and supplies, including aviation support,
used or
needed. This may be a useful place to monitor span of control.
9 Reporting Location Enter the specific location where the
resources are to report (Staging Area,
location at incident, etc.).
10 Requested Arrival Time Enter the time (24-hour clock) that
resources are requested to arrive at the
reporting location.
Block
11 Total Resources Required Enter the total number of
resources required by category/kind/type as
preferred (e.g., engine, squad car, ALS ambulance, etc.). A
slash can be
used again to indicate total single resources in the upper portion
of the
slash and total Strike Teams/ Task Forces in the bottom portion
of the
slash.
12 Total Resources Have on
Hand
Enter the total number of resources on hand that are assigned to
the
incident for incident use. A slash can be used again to indicate
total single

resources in the upper portion of the slash and total Strike
Teams/Task
Forces in the bottom portion of the slash.
13 Total Resources Need To
Order
Enter the total number of resources needed. A slash can be used
again to
indicate total single resources in the upper portion of the slash
and total
Strike Teams/Task Forces in the bottom portion of the slash.
14 Prepared by
• Name
• Position/Title
• Signature
• Date/Time
Enter the name, ICS position, and signature of the person
preparing the
form. Enter date (month/day/year) and time prepared (24-hour
clock).
ICS 215 1: Incident Name: ICS 215 2: Operational Period Date
From:: Operational Period Time From:: Operational Period
Date To:: Operational Period Time To:: ICS 215 6: Resources
Name 1: Resources Name 2: Resources Name 3: Resources
Name 10: Resources Name 11: Resources Name 12: Required
Row 1 - 1: Required Row 1 - 2: Required Row 1 - 3: Required
Row 1 - 10: Required Row 1 - 11: Required Row 1 - 12: Have
Row 1 - 1: Have Row 1 - 2: Have Row 1 - 3: Have Row 1 - 4:

Have Row 1 - 5: Have Row 1 - 6: Have Row 1 - 7: Have Row
1 - 8: Have Row 1 - 9: Have Row 1 - 10: Have Row 1 - 11:
Have Row 1 - 12: Need Row 1 - 1: Need Row 1 - 2: Need Row
1 - 3: Need Row 1 - 4: Need Row 1 - 5: Need Row 1 - 6:
Need Row 1 - 7: Need Row 1 - 8: Need Row 1 - 9: Need Row
1 - 10: Need Row 1 - 11: Need Row 1 - 12: Required Row 2 -
1: Required Row 2 - 2: Required Row 2 - 3: Required Row 2 -
10: Required Row 2 - 11: Required Row 2 - 12: Have Row 2 -
1: Have Row 2 - 2: Have Row 2 - 3: Have Row 2 - 4: Have
Have Row 2 - 9: Have Row 2 - 10: Have Row 2 - 11: Have
Row 2 - 12: Need Row 2 - 1: Need Row 2 - 2: Need Row 2 -
3: Need Row 2 - 4: Need Row 2 - 5: Need Row 2 - 6: Need
10: Need Row 2 - 11: Need Row 2 - 12: Required Row 3 - 1:
Required Row 3 - 2: Required Row 3 - 3: Required Row 3 - 4:
Required Row 3 - 8: Required Row 3 - 9: Required Row 3 -

10: Need Row 6 - 11: Need Row 6 - 12: ICS 215 3: Branch
Row 1: Branch Row 2: Branch Row 3: Branch Row 4: Branch
Row 5: Branch Row 6: ICS 215 4: Division, Group, or Other
Row 1: Division, Group, or Other Row 2: Division, Group, or
Other Row 3: Division, Group, or Other Row 4: Division,
Group, or Other Row 5: Division, Group, or Other Row 6: ICS
215 5: Work Assignment Row 1: Work Assignment Row 2:
Work Assignment Row 3: Work Assignment Row 4: Work
Assignment Row 5: Work Assignment Row 6: ICS 215 7:
Overhead Postion(s) Row 1: Overhead Postion(s) Row 2:
Overhead Postion(s) Row 3: Overhead Postion(s) Row 4:
Overhead Postion(s) Row 5: Overhead Postion(s) Row 6: ICS

215 8: Special Equip: & Supplies Row 1: & Supplies Row 2:
& Supplies Row 3: & Supplies Row 4: & Supplies Row 5: &
Supplies Row 6: ICS 215 9: Reporting Location Row 1:
Reporting Location Row 2: Reporting Location Row 3:
Reporting Location Row 4: Reporting Location Row 5:
Reporting Location Row 6: ICS 215 10: Requested Arrival
Time Row 1: Requested Arrival Time Row 2: Requested
Arrival Time Row 3: Requested Arrival Time Row 4:
Requested Arrival Time Row 5: Requested Arrival Time Row
6: ICS 215 14: Prepared by: Position/Title: Date/Time: ICS
215 11: Total Resources 1: Total Resources 2: Total
Resources 3: Total Resources 4: Total Resources 5: Total
Resources 12: Required 1: Required 2: Required 3: Required
4: Required 5: Required 6: Required 7: Required 8: Required
9: Required 10: Required 11: Required 12: ICS 215 12: Total
Resources 10: Total Resources 11: Total Resources 12: Have
on Hand 1: Have on Hand 2: Have on Hand 3: Have on Hand
4: Have on Hand 5: Have on Hand 6: Have on Hand 7: Have
on Hand 8: Have on Hand 9: Have on Hand 10: Have on Hand
11: Have on Hand 12: ICS 215 13: Total Resources 1: Total
Resources 11: Total Resources 12: Need to Order 1: Need to
Order 2: Need to Order 3: Need to Order 4: Need to Order 5:
Need to Order 6: Need to Order 7: Need to Order 8: Need to
Order 9: Need to Order 10: Need to Order 11: Need to Order
12:

ASSIGNMENT LIST (ICS 204)
1. Incident Name:
2. Operational Period:
Date From: Date To:
Time From: Time To:
4. Operations Personnel: Name Contact Number(s)
Operations Section Chief:
Branch Director:
Division/Group Supervisor:
3.
Branch: 1
Division: 1
Group: 1
Staging Area: 1
5. Resources Assigned:
Resource Identifier Leader #
o
f
P
er
so
ns

Contact (e.g., phone, pager, radio
frequency, etc.)
Reporting Location,
Special Equipment and
Supplies, Remarks, Notes,
Information
6. Work Assignments:
7. Special Instructions:
8. Communications (radio and/or phone contact numbers needed
for this assignment):
Name/Function Primary Contact: indicate cell, pager, or radio
(frequency/system/channel)
/
/
/
/
9. Prepared by: Name: Position/Title: Signature:
ICS 204 IAP Page _____ Date/Time:
ICS 204
Assignment List
Purpose. The Assignment List(s) (ICS 204) informs Division

and Group supervisors of incident assignments. Once the
Command and General Staffs agree to the assignments, the
assignment information is given to the appropriate Divisions
and Groups.
Preparation. The ICS 204 is normally prepared by the
Resources Unit, using guidance from the Incident Objectives
(ICS
202), Operational Planning Worksheet (ICS 215), and the
Operations Section Chief. It must be approved by the Incident
Commander, but may be reviewed and initialed by the Planning
Section Chief and Operations Section Chief as well.
Distribution. The ICS 204 is duplicated and attached to the ICS
202 and given to all recipients as part of the Incident
Action Plan (IAP). In some cases, assignments may be
communicated via radio/telephone/fax. All completed original
forms must be given to the Documentation Unit.
Notes:
• The ICS 204 details assignments at Division and Group levels
and is part of the IAP.
• Multiple pages/copies can be used if needed.
• If additional pages are needed, use a blank ICS 204 and
repaginate as needed.
Block
1 Incident Name Enter the name assigned to the incident.
2 Operational Period
• Date and Time From
• Date and Time To

Enter the start date (month/day/year) and time (using the 24-
hour
clock) and end date and time for the operational period to which
the
form applies.
3 Branch
Division
Group
Staging Area
This block is for use in a large IAP for reference only.
Write the alphanumeric abbreviation for the Branch, Division,
Group,
and Staging Area (e.g., “Branch 1,” “Division D,” “Group 1A”)
in large
letters for easy referencing.
4 Operations Personnel
• Name, Contact Number(s)
– Operations Section Chief
– Branch Director
– Division/Group Supervisor
Enter the name and contact numbers of the Operations Section
Chief,
applicable Branch Director(s), and Division/Group
Supervisor(s).
Resources Assigned Enter the following information about the
resources assigned to the
Division or Group for this period:
• Resource Identifier The identifier is a unique way to identify a

resource (e.g., ENG-13,
IA-SCC-413). If the resource has been ordered but no
identification
has been received, use TBD (to be determined).
• Leader Enter resource leader’s name.
• # of Persons Enter total number of persons for the resource
assigned, including the
leader.
5
• Contact (e.g., phone, pager,
radio frequency, etc.)
Enter primary means of contacting the leader or contact person
(e.g.,
radio, phone, pager, etc.). Be sure to include the area code
when
listing a phone number.
5
(continued)
• Reporting Location, Special
Equipment and Supplies,
Remarks, Notes, Information
Provide special notes or directions specific to this resource. If
required, add notes to indicate: (1) specific location/time where
the
resource should report or be dropped off/picked up; (2) special
equipment and supplies that will be used or needed; (3) whether
or not
the resource received briefings; (4) transportation needs; or (5)

other
information.
Block
6 Work Assignments Provide a statement of the tactical
objectives to be achieved within the
operational period by personnel assigned to this Division or
Group.
7 Special Instructions Enter a statement noting any safety
problems, specific precautions to
be exercised, dropoff or pickup points, or other important
information.
8 Communications (radio and/or
phone contact numbers needed
for this assignment)
• Name/Function
• Primary Contact: indicate
cell, pager, or radio
(frequency/system/channel)
Enter specific communications information (including
emergency
numbers) for this Branch/Division/Group.
If radios are being used, enter function (command, tactical,
support,
etc.), frequency, system, and channel from the Incident Radio

Communications Plan (ICS 205).
Phone and pager numbers should include the area code and any
satellite phone specifics.
In light of potential IAP distribution, use sensitivity when
including cell
phone number.
Add a secondary contact (phone number or radio) if needed.
9 Prepared by
• Name
• Position/Title
• Signature
• Date/Time
Enter the name, ICS position, and signature of the person
preparing
the form. Enter date (month/day/year) and time prepared (24-
hour
clock).
ICS 204 2: Date From: Date To: Time From: Time To: ICS
204 1: Incident Name: ICS 204 4: Branch Director:
Division/Group Supervisor: Operations Section Chief: ICS 204
3: Branch: Division: Group: Staging Area: ICS 204 5:
Resource Identifier 2: Resource Identifier 3: Resource
Identifier 4: Resource Identifier 5: Resource Identifier 6:
Resource Identifier 7: Resource Identifier 8: Resource
Identifier 1: Resource Identifier 9: Resource Identifier 10:
Leader 1: Leader 2: Leader 3: Leader 4: Leader 5: Leader 6:
Leader 7: Leader 8: Leader 9: Leader 10: # of Persons 1: #
of Persons 2: # of Persons 3: # of Persons 4: # of Persons 5:
# of Persons 6: # of Persons 7: # of Persons 8: # of Persons 9:
# of Persons 10: Contact (e: g: , phone, pager, radio frequency,

etc: ) 1: ) 2: ) 3: ) 4: ) 5: ) 6: ) 7: ) 8: ) 9: ) 10: Reporting
Location, Special Equipment and Supplies, Remarks, Notes,
Information 1: Reporting Location, Special Equipment and
Supplies, Remarks, Notes, Information 2: Reporting Location,
Special Equipment and Supplies, Remarks, Notes, Information
3: Reporting Location, Special Equipment and Supplies,
Remarks, Notes, Information 4: Reporting Location, Special
Equipment and Supplies, Remarks, Notes, Information 5:
Reporting Location, Special Equipment and Supplies, Remarks,
Notes, Information 6: Reporting Location, Special Equipment
and Supplies, Remarks, Notes, Information 7: Reporting
Location, Special Equipment and Supplies, Remarks, Notes,
Information 8: Reporting Location, Special Equipment and
Supplies, Remarks, Notes, Information 9: Reporting Location,
Special Equipment and Supplies, Remarks, Notes, Information
10: ICS 204 6: Work Assignments: ICS 204 7: Special
Instructions: ICS 204 IAP Page: ICS 204 9: Prepared by:
Name: Position/Title: Date/Time: ICS 204 8: Primary Contact
1: Primary Contact 2: Primary Contact 3: Primary Contact 4:
Name 2: Name 1: Name 3: Name 4: Function 1: Function 2:
Function 3: Function 4: ICS 209 1: Incident Name 4: ICS 209
2: Incident Number 4: ICS 209 49: Resources 1: Resources 2:
Resources 3: Resources 4: Resources 5: Resources 6:
Resources 19: Resources 20: Resources 21: Row 1 - # of
Resources 21: Row 2 - # of Resources 1: Row 2 - # of
Personnel Associated 1: Row 2 - # of Resources 2: Row 2 - #
of Resources 3: Row 2 - # of Resources 4: Row 2 - # of

Personnel Associated 2: Row 2 - # of Personnel Associated 3:
Row 2 - # of Personnel Associated 4: Row 2 - # of Personnel
Associated 5: Row 2 - # of Personnel Associated 6: Row 2 - #
of Personnel Associated 7: Row 2 - # of Personnel Associated
8: Row 2 - # of Personnel Associated 9: Row 2 - # of
Personnel Associated 10: Row 2 - # of Personnel Associated
Associated 12: Row 3 - # of Personnel Associated 13: Row 3 -
# of Personnel Associated 14: Row 3 - # of Personnel

Associated 21: Row 4 - # of Resources 1: Row 4 - # of

# of Personnel Associated 6: Row 10- # of Personnel
Associated 10: Row 10 - # of Personnel Associated 11: Row
10 - # of Personnel Associated 12: Row 10 - # of Personnel
10 - # of Personnel Associated 21: Row 11 - # of Resources 1:
Row 11 - # of Resources 2: Row 11 - # of Resources 3: Row
11 - # of Resources 4: Row 11 - # of Resources 5: Row 11- #
of Resources 6: Row 11 - # of Resources 7: Row 11- # of

11- # of Personnel Associated 21: Row 12 - # of Resources 1:
Row 12 - # of Resources 2: Row 12- # of Resources 3: Row 12
- # of Resources 4: Row 12 - # of Resources 5: Row 12 - # of

Row 13- # of Resources 3: Row 13 - # of Resources 4: Row 13
- # of Resources 5: Row 13 - # of Resources 6: Row 13 - # of
Resources 11: Row 13 - # of Resources 12: Row 13- # of
13- # of Personnel Associated 18: Row 13 - # of Personnel
14 - # of Resources 4: Row 14 - # of Resources 5: Row 14 - #
Resources 8: Row 14- # of Resources 9: Row 14 - # of

Resources 21: Row 16 - # of Personnel Associated 1: Row 16 -
Associated 9: Row 16 - # of Personnel Associated 10: Row 16
- # of Personnel Associated 11: Row 16 - # of Personnel
of Resources 2: Row 1 - # of Personnel Associated 2: Row 1 -
# of Personnel Associated 3: Row 1 - # of Resources 4: Row 1
- # of Personnel Associated 4: Row 1 - # of Resources 5: Row
Row 1 - # of Personnel Associated 6: Row 1 - # of Resources 7:
Personnel Associated 9: Row 1 - # of Resources 10: Row 1 - #
of Personnel Associated 10: Row 1 - # of Resources 11: Row 1
- # of Personnel Associated 11: Row 1 - # of Resources 12:

Personnel Associated 14: Row 1 - # of Resources 15: Row 1 -
# of Resources 18: Row 1 - # of Personnel Associated 18: Row
1 - # of Resources 19: Row 1 - # of Personnel Associated 19:
Row 1 - # of Resources 20: Row 1 - # of Personnel Associated
17 - # of Personnel Associated 21: Row 1 - # of Resources 8: 3
Row 3 - # of Resources 3: Row 15 - # of Resources 3: Row 8 -
# of Resources 8: ICS 209 48: Agency or Organization 1:
Agency or Organization 2: Agency or Organization 3: Agency
or Organization 4: Agency or Organization 5: Agency or

Organization 6: Agency or Organization 7: Agency or
Organization 16: Agency or Organization 17: ICS 209 52:
Total Resources 1: Total Resources 3: Total Resources 4:
ICS 209 53: Additional Cooperating and Assisting Organization
Not listed Above:: ICS 209, Page 1: ICS 209, Page 2: ICS 209
50: Additional Personnel 1: Additional Personnel 2:
Additional Personnel 3: Additional Personnel 4: Additional
Personnel 5: Additional Personnel 6: Additional Personnel 7:
Personnel 10: Additional Personnel 11: Additional Personnel
12: Additional Personnel 13: Additional Personnel 14:
Personnel 17: Additional Personnel 1 Total Resources: ICS 209
51: Total Personnel 1: Total Personnel 2: Total Personnel 3:
Total Personnel 4: Total Personnel 5: Total Personnel 6: Total
Personnel 7: Total Personnel 8: Total Personnel 9: Total
Personnel 16: Total Personnel 17: Total Personnel 1 Total
Resources:
Lecture 1:
Introduction to
Ethics & Governance
Dr Warren Staples

‹#›
Emergency procedure information – student statement
Before starting our session today, RMIT wishes to make you
aware of the emergency procedures that are in place for your
safety.
Please look around and familiarize yourself with the emergency
exits in this room and to this for each new venue in which you
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evacuating the building.
Please also obey any instructions provided by fire wardens in
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the evacuation, you will be advised when it is safe to return to
the building.
RMIT thanks you for your cooperation.
‹#›
Mr Andrew Linden

Dr Joe Griffin
Dr Dau Youngsamart
Teaching team
Tutors Course coordinator:
Dr Warren Staples
‹#›
Overview
A brief introduction to the course, readings & assessments
Plagiarism – academic integrity
Ethics and morality
Ethics and the law
Ethics in the business and corporate governance
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Readings
There are essential readings on Blackboard
There is no prescribed textbook for this subject.
A lot of the material in the course has been developed from
these two texts:

Mallin, C A (2010) Corporate Governance, Oxford University
Press, UK.
Trevino, LK & Nelson, KA (2014) Managing Business Ethics:
Straight Talk about How to Do It Right (6th Edition), John
Wiley, USA.
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Assessment overview
Critical Literature Review (1000) word 20%
Due date: End of week 5 (23 August @ 9pm) eSubmission via
Canvas
Research Essay Board Report (2000 words) 40%
Due date: End of week 8 (4 October @ 9pm) eSubmission via
Canvas
Exam (2 hours) 40%
Scheduled during examination period
All assessment tasks must be submitted to pass & 50% must be
attained in order to pass
‹#›
Critical Literature Review 1000 words
Read the following papers which offer different explanations as
to why firms engage in corporate social responsibility (CSR):

Dimaggio, PJ & Powell, WW 1983, ‘The Iron Cage Revisited:
Institutional Isomorphism and Collective Rationality in
Organizational Fields’, American Sociological Review, Vol. 48,
No. 2, pp. 147-160.
Freeman, ER 2008, 'Managing for stakeholders', in T Donaldson
& P Werhane (eds), Ethical issues for Business, Pearson
Prentice Hall, Upper Saddle River, pp. 39-53.
Matten, D & Moon, J 2008,’ ‘Implicit and explicit’ CSR: A
conceptual framework for a comparative understanding of
corporate social responsibility’, Academy of Management
Review, 33(2), 404-424.
Mitchell, RK, Agle, BR & Wood, DJ 1997, ‘Toward a Theory of
Stakeholder Identification and Salience: Defining the Principle
of Who and What Really Counts’, Academy of Management
Review, 22: 853-886.
Suchman, MC 1995, ‘Managing legitimacy: Strategic and
institutional approaches’ , Academy of Management Review,
20(3), 571-610.
Compare and contrast these course readings and produce a 1000
word critical reflection on course literature about what
corporate social responsibility is, what it is not, and what drives
corporations to engage in CSR.
In this critical reflection you should provide a reasoned
explanation for choosing the perspective(s) that you believe
best explain why firms engage in CSR.
‹#›
Assessment criteria
Key issues relating to the question have been developed
Logical and convincing discussion - Original and clear
argument

Clear and comprehensive written style (spelling, grammar,
syntax etc.)
Appropriate Harvard style referencing (in text and list of
references)
‹#›
Research Essay Board Report 2000 words
You are required to choose one (1) of the following three
contemporary ethics issues (Topics 1, 2 or 3) for analysis and
produce a board briefing paper for tabling at the next meeting of
the company’s board of directors.
Board papers perform an important role
Often prepared by non-board members.
Papers cover a variety of functions, from providing general
information to a call for action.
Section 180 of the Australian Corporations Act 2001 outlines
that directors have a statutory duty of care to have read the
board papers to be able to contribute effectively to board
meetings.
You will argue either in the affirmative (for) or the negative
(against), providing a critical argument with evidence to support
your argument.
‹#›

Research essay (2000 word + or - 50 word)
Topic 1: Walmart has agreed to pay $US282 million (AUD $407
million) to settle US federal allegations of overseas corruption.
Once upon a time it was possible to get away with having
differing ethical stances in different jurisdictions. In a
globalised world is it ethical and still possible to practice
ethical relativism?
Topic 2: In June 2019 Collingwood footballer Jayden
Stephenson was caught betting on games in which he played in,
and as a result he was suspended by the league (AFL). On the
one hand the AFL have a wagering partner (sponsor) and
promote gambling directly and indirectly, but on the other they
punish players and club officials for being involved in betting
on games. Is the stance taken by the AFL of partnering with the
gambling industry an ethical one?
‹#›
Research essay (2000 word + or - 50 word)
Topic 3: Australian Rugby League player Israel Folau was
sacked by the Rugby Australia for breaching their code of
conduct. Until December 2017 same-sex marriage was illegal in
Australia. Whilst Folau’s views may not correspond with public
sentiment, is it nonetheless important that he has the right to
express himself, or was Rugby Australia right to dismiss Folau
for breaching his contract? (Answer with reference to course
literature, theory, concepts and research.)
‹#›

Board report (2000 word + or - 50 word)
Use at least 12 references:
Mostly academic journal articles
Other quality references
Electronic submission.
Turnitin
‹#›
Assessment criteria
Original and clear argument
Logical and convincing discussion
Ideas and assertions substantiated through use of high quality
reference material and key academic perspectives/views used to
develop arguments
Appropriate Harvard style referencing (in text and list of
references)
‹#›
Two hour examination covering the whole semester’s work
scheduled during the examination period at the end of the
semester. The examination will be have four questions.

All questions will require you to apply theories and concepts
from the course to cases studied during the semester. You need
to be familiar with each and every one of them
An essential preparation for the exam will require you to be
familiar with the Required Readings & the Weekly Case Study
& Review Questions.
Exam
‹#›
Draw on a case studied in the course to explain the ethical
decision making process including individual and situational
influences. How would you as a manager increase moral
awareness in the workplace (10 marks)
Example Exam Question
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‹#›
Exam – assessment criteria
Original and clear logical arguments and discussion
Ideas and assertions substantiated through use of high quality
reference material and key academic perspectives/views used to
develop arguments
Appropriate acknowledgement of theorists in the text of your

answers e.g. (Friedman) (Freeman) (Carroll) (Mallin)
Clear and comprehensive written style (spelling, grammar,
syntax etc.)
‹#›
Plagiarism
Plagiarism may occur in either oral or written presentations.
It is the presentation of the work, idea or creation of another
person, without appropriate referencing, as though it is one's
own. Plagiarism includes cutting and pasting text from
websites, and will be severely penalised. The use of another
person's work or ideas must be acknowledged. Failure to do so
may result in charges of academic misconduct which carry a
range of penalties including cancellation of results and
exclusion from your program.
Why is plagiarism an ethical issue?
‹#›
Expectation of RMIT students
Attend all lectures
Be an active participant
Your responsibility is to read, engage, think, write – prepare!
Lecturers’ role is to coach and guide you
Hopefully enjoy the course and learn along the way
You will get out of this what you put into it!

‹#›
Weekly format
Lecture
Tutorial
Readings – Theory/Concepts
Case Study with Questions
Review Questions
Consultation
‹#›
Course Outline
Ethics
CSR
Corporate Governance
Normative
Psychological
Introduction
Organisations
Applying
Debate
Boards & Remuneration
IIs & Codes
Ownership
Alternative CG
CG Theory

‹#›
‹#›
Join the Conversation:
#ethicsgov
@warrenstaples
‹#›
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Fake degree
Tom has done a sound job for over a year. Tom’s boss learns
that he got the job by claiming to have a university degree,
although in reality he never graduated
Should his boss dismiss her for submitting a fraudulent resume,
or overlook the fake claim since Tom has otherwise proved to
be conscientious and honourable, and since making an issue of
the degree might ruin Tom’s career?

‹#›
Roundabout pay rise
When Jo asks for a rise, her boss praises her work but says the
company’s rigid budget won’t allow any further merit raises for
the time being. Instead the boss suggests that the company
“won’t look too closely at your expense accounts for a while”
Should Jo take this as an authorisation to pad her expense
account on the grounds that she is simply getting the same
money he deserves through a different route, or should she
refuse this roundabout “raise”?
‹#›
Inflated salary
An employer finds that the candidate who is by far the best
qualified for a job really earned only $48,000 a year in their last
job, and not the $58,000 they claimed
Should the employer hire the candidate anyway, or should he
choose someone else even though that person will be
considerably less qualified?
What would you say if the real salary were $55,000 (only
$3,000 less than the amount claimed)?
‹#›
Ethics concerns itself with the study and identifications of the
behaviours, actions and standards that we as humans ought to

pursue to obtain a good life.
Ethics: is concerned with the assessment of moral standards;
notions of right and wrong, good and bad.
In general, ethics is concerned with what is right, fair, just or
good; about what we ought to do, not just what is the case or
what is most acceptable. This distinction between ‘ought’ and
‘is’ signals the need to distinguish ethical claims from factual
ones. Facts are descriptive and can be verified as to their
truthfulness or falsity.
‹#›
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Ethics & morality
Morality reflects a person’s or group’s standards of right and
wrong. Moral understanding is usually developed passively.
Ethics is the assessment of moral standards. Ethics is developed
actively – through the use of theories and experience.
‹#›
Nature of ethics
Focuses on theories of right & wrong
Concerned with what is right & wrong in:- Relationships,
actions, beliefs, attitudes
Process of applying Ethical theory to concrete situations

‹#›
Business ethics?
Business ethics: The principles, norms, and standards of
conduct governing an individual or group in work situations
Ethics is directly concerned with human interaction and
behaviour. It therefore has relevance to the way people behave
in organisations.
Factors that influence business ethics include the stage of
development of a country, individual characteristics, issue
intensity, and
‹#›
Some questions to consider
What is moral awareness?
Do all decisions involve ethics?
Does every person have his/her own ethical values?
Am I being ethical if I do not do anything illegal?
Is ethics applicable in business?
Who is responsible for organisational decisions?
‹#›
Minimum conception of morality
Two criteria (Rachels, 1993):

Reason: a moral decision is based on reasons that are acceptable
to other rational persons
Impartiality: the interests of all those affected by a moral
decision are taken into account
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Relationship between ethics & the law
Law establishes minimum standards
Ethics extends beyond legal domain
Think of a business activity that may be legal but unethical
Think of a business activity that may be illegal but ethical
How should an organisation deal with an activity that is legal
but unethical?
Ethics
Law
‹#›
Carroll (2001): models of management morality
Immoral Management
devoid of ethical principles and active opposition to what is
ethical.
Moral Management
high standards of ethical behavior.
Amoral Management
Intentional - does not consider ethical factors
Unintentional - casual or careless about ethical considerations
in business

‹#›
Models of management morality – Carroll (2001
Amoral Management
Immoral Management
(bad/wrong)
Moral Management
(good/right)
‹#›
Ethical organisation
One whereby the organization culture promotes the appropriate
ethical behaviours among all
Surveys have consistently indicated that employees prefer to
work in an ethical organization
Unethical behaviours include bribery, theft, discrimination,
harassment, deception and endangerment
Responsibility for ensuring an organization has ethical
standards is a duty of management
‹#›
Governance & management
Governance – the work of the board of directors or other

governing body
Management – the work of the executive and management team
Source: Tricker (2009, p.36)
‹#›
The board and management
Outside, non-executive directors
Executive directors
Other managers not on the board
Source: Tricker (2009, p.36)
‹#›

Examples of unethical behaviour?
Discuss with the person next to you an example of unethical
business behaviour you are aware of.
What was the main ethical issue of the case?
‹#›
Conclusion
Morality – right and wrong
Ethics - applying moral standards
Human interaction creates ethical dilemmas
Cant separate business & ethics
Not all decisions involve ethics, but can be extended to
This subject will raise your moral awareness, develop your
skills to enable you to be ethical in the workplace
‹#›
‹#›
What are the ethical issues of this case?
What moral obligations do you have to Gatsby, yourself, your
boss, the workers and the firm?
Are any of these more important or pertinent than the others?
Would it be ethical to do as your boss suggests?
What would you do in this situation?
Not so great Gatsby
‹#›

‹#›
Review Questions
What are the differences between immoral and amoral
management (Carroll, 2001)?
What are the differences between intentional and unintentional
amoral management (Carroll, 2001)?
Why is ethics important in business?
How should an organisation deal with an activity that is legal
but unethical?
What is corporate governance and who are the main internal
actors involved in governance of a firm? What role(s) do they
play?
‹#›
‹#›
References
Carroll, AB 2001, 'Models of management morality for the new
millennium.' Business Ethics Quarterly, v. 11, n. 2, pp. 365-71.
Colley, JL, Doyle, JL, Wallace, S, & Logan, G 2005 What is
Corporate Governance?, McGraw-Hill Professional, USA.
De George, RT 1990, Business ethics, (3rd Ed.), Macmillan,
New York.
Jones, TM, & Ryan, VL 1997, 'The link between ethical
judgment and action in organizations: A moral approbation
approach', Organization Science, v. 8, n. 6, pp. 663-80.

Laverty, EB 1989, 'The ethical context of administrative
decisions: A framework for analysis', Public Administration
Quarterly, v. 13, n. 3, pp. 375-87.
Rachels, J 1993, The elements of moral philosophy, 2 edn,
McGraw-Hill, New York.
Shepard, JM, Goldsby, MG & Gerde, VW 1997, 'Teaching
business ethics through literature', Teaching Business Ethics, v.
1, pp. 33-51.
Solomon, R 1998, 'Morality: The basic rules', in L Pincus
Hartman (ed.), Perspectives in business ethics, Irwin McGraw-
Hill, Chicago, pp. 136-8.
Trevino, LK, & Nelson, KA 2006, Managing business ethics:
Straight talk about how to do it right, 4 edn, John Wiley, New
York.
Tricker, B 2009, Corporate Governance: Principles, Policies and
Practices, Oxford University Press, UK.
‹#›
‹#›
‹#›
WARNING

This material has been reproduced and
communicated to you by or on behalf of
RMIT University in accordance with
section 113P of the Copyright Act
1968 (Act).
The material in this communication may
be subject to copyright under the Act.
Any further reproduction or
communication of this material by you
may be the subject of copyright protection
under the Act.
Do not remove this notice
E63694
Typewritten Text
Business ethics : decision-making for personal integrity and
social responsibility,
(p. 63-109). Boston : McGraw-Hill/Irwin, c2008.

—
Lecture 2: Business Ethics – Normative Theory
Ethics & Governance
Dr Warren Staples
‹#›
To create Em dash above headline:
Same size and weight as the headline and set using a soft return.
PC: Em dash (—): Alt+Ctrl+ - (minus)
Mac: Em dash (—): Shift+Alt/Option+hyphen
1

Recap – Lecture 1
The course structure & assessment
Ethics & Morality
Ethics is important in Bus – cant be separated
Ethics & the Law
Management Morality
Corporate Governance
‹#›
Learning overview
Define moral philosophy, moral agency and moral responsibility
Discuss the three normative ethical theories/perspectives (moral
philosophy) – consequential/teleological and non-
consequential/deontological
Compare and contrast each of the normative ethical theories
‹#›
Moral Philosophy
Provides prescriptions i.e. tells us what we should/ought to do,
how we should live our life and resolve ethical dilemmas
Provides justifications that are applicable to all people (unlike
theological ethics) (Hartman & Desjardins, 2008)
Is primarily concerned with the individual person, not social
groups such as business organisations

‹#›
Moral Agency & Moral Responsibility (1)
An agent in ethical theory (De George, 1992):
is any entity that acts and is subject to ethical rules,
is a rational being, and
is not an agent for anyone or anything else (e.g. once an agent
accepts an ethical theory, he will be self-governing himself and
hence will act in his best interests and no one/anything will
influence his actions.)
A moral agent’s actions and acts can be evaluated in moral
terms.
‹#›
Moral Agency & Moral Responsibility (2)
The central concept of moral agency is moral responsibility i.e.
we can hold a moral agent morally accountable for his/her
behaviour/actions
A moral agent needs to be rational (know what is right and
wrong) and autonomous (have the right to choose an action)
Young children are not considered moral agents (the reason
advertising to children is unethical)
‹#›
Moral Responsibility (1)
Morally responsible when:-

knowingly & freely performed the act
knowingly & freely failed to prevent the act
NOT morally responsible if:-
did not possess all relevant information
were unable to prevent the act
Relativism – actions relative to culture
Just a corporate justification/excuse?
‹#›
Moral Responsibility (2)
Harming employees
James Hardie – asbestos (1930’s)
Environmental degradation
Union Carbide – Bophal
BHP – Ok Tedi mine
‹#›
Ethical principles in principal-agent relationships
An agent acts for/represents a principal
Agents are not ethically allowed to do what the principals are
not ethically allowed to do.
Agents cannot exonerate themselves for unethical actions.
Agents are responsible for the actions they perform, whether

they are under command or on behalf for another.
The principal is morally responsible for the actions of their
agents. Agency involves the delegation of authority but not the
complete delegation of responsibility.
‹#›
Virtue ethics
Virtue ethics
10
Moral philosophy: Three perspectives
RMIT University©2010
School of Management
10
Teleological
Utilitarianism
Consequence based
Deontological
Kantian ethics
Justice ethics
Non-consequential
Duty based
‹#›
10
Consequential (Teleology or End-based) vs. Non-consequential
(Deontology or Duty-based) Theories

Utilitarianism (1)
Utilitarianism: concerned with making decisions that promote
greatest overall amount of good in the world.
An ethical decision is one that maximises good consequences
over bad consequences for the greatest number of people.
Consequences include happiness (pleasure, health and
satisfaction) and pain (sadness, sickness and disappointment).
Best decision is one that yields greatest net benefit.
Utility concerns “greatest good for the greatest number”. The
emphasis is “majority”.
11
‹#›
Cost-benefit analysis fits with business decision making
Provides an objective and attractive way of resolving conflicts
of self-interest
Fits into people’s intuitive criteria for deciding moral problem
Making ethical decisions based on the greatest good for the
greatest number of people seems to have a logical basis
Utilitarianism (2)
Rule utilitarianism – Examine the consequences of having
everyone follow a particular rule and calculate the overall
utility of accepting and rejecting the rule. E.g. 1st class
passengers in airline, 1 child policy.
Act utilitarianism – Examine the consequences of each
individual act and calculate the utility each time the act is
performed. E.g. firing Gatsby in L1’s exercise because it is in
the best interests of Appleberg Electric company
12

Ferrell et al. (2005)
‹#›
Utilitarianism (3) - application
Define the problem
Identify the stakeholders that affected by the problem
List the alternative courses of action for resolving the problem
Identify and calculate the short- and long-term costs and
benefits for each alternative courses of action
Select the one course of action that yields the greatest sum of
benefits over costs for the greatest number of people.
13
‹#›
Utilitarianism (4) - limitations
Too much focus on ethical ends can lead to ignoring moral
consideration of the means.
The measurability of consequence: difficult to evaluate all
consequences. For example, those who are affected in the
future.
Stakeholder analysis: rights of some stakeholders are ignored
Fairness: e.g. workers who might be retrenched lack
representation or voice in the decision
14
‹#›
14
difficult to evaluate all consequences

rights of minorities may be sacrificed
too much focus on ethical ends can lead to ignoring moral
considerations of means
15
RMIT University©2010
15
Virtue ethics (1)
A moral virtue is an acquired disposition that is valued as a part
of an individual’s character (Ferrell et al. 2005)
Focuses on the integrity of the moral actor rather than the act
Teleological?
(Trevino & Nelson, 2006)
Strengths: Considers actor's character, motivations &
intentions.
Limitations: Character defined by one's community, May be
limited agreement about standards & Community views may be
questionable
‹#›
Virtue & Moral Agency
A good human being possesses two core virtues:
Integrity – to have educated oneself so that one is unable to be
one kind of person in one social context, while quite another in
other contexts.
Constancy – to pursue the same goods (=objective) through
extended periods of time.
16
(MacIntyre, 1999)

‹#›
17
17
Deontology - Duty based theories
The deontological (duty) theories view actions as either right or
wrong independent of their consequences.
The moral status of an act, is judged not by its consequences but
by the agent's intentions (Etzioni, 1996).
Morality involves a respect for each individual's rights by
performing one's corresponding duties (Singer, 1997).
‹#›
18
18
Kantianism (1)
decisions based upon abstract universal principles: honesty,
promise keeping, fairness, justice, respect.
focus on doing what is 'right' rather than doing what will
maximise societal welfare – what is good (as in utilitarianism)
Two formulations of the categorical imperative
“Always act in such a way that the maxim of your action can be
willed as a universal law of humanity.”
“Always treat humanity, whether in yourself or in other people,
as an end in itself and never as a mere means”
: ethics of respect

‹#›
18
Motive/intention of the act is important than outcome
If you feel comfortable allowing everyone in the world to see
you commit an act and if your rationale for acting in a
particular manner is suitable to become a universal guiding
principle, then committing that act is ethical
Emphasizes moral rights, e.g. treat everyone with respect.
Hence, slavery/child labour is wrong under Kantianism though
it may be fine under egoism/utility.
Comes up with “categorical imperative” = universal principles
such as honesty, integrity, dignity, kindness.
Kantianism (2)
Motive/intention of the act is important than outcome
If you feel comfortable allowing everyone in the world to see
you commit an act and if your rationale for acting in a
particular manner is suitable to become a universal guiding
principle, then committing that act is ethical
19
‹#›
Produces universal moral guidelines, e.g. honesty
Motive is always taken to be more important than outcome. At
times, this is debatable. E.g. bribery to get job done. But what if
everyone starts bribing to get job done?
(Hence, it is often argued that Kantianism should be considered

in conjunction with utilitarianism thinking)
Often involves emotions, which can be wrong at times
Difficult to determine which rule, principle, right to
follow/takes precedence. E.g. Kantianism may indicate that
free speech rights is “good”; but privacy of others is also
“good”.
20
Kantianism (3) - Advantages & Limitations
‹#›
Justice Ethics (1)
Justice – fair treatment and due reward in accordance with
ethical or legal standards
Managers adopting this theory will provide the same rate of pay
to workers who are similar in level of skills, responsibility
instead of gender, personality, favouritism
Protects the interests of stakeholders who may be under-
represented or lack power
The basic moral question is: How fair is an action?
21
‹#›
Justice Ethics (2)
Distributive – Based on evaluation of outcomes or results.
Benefits derived; equity in rewards
Procedural – Based on processes or activities that produce the
outcome or results. Decision-making process; level of access,
openness and participation
Interaction – Based on evaluation of one’s perception of

whether he/she is treated fairly. Communication process
22
‹#›
Justice Ethics (3) - application
Benefits and burdens are identified
Benefits and burdens are assigned to stakeholders
A judgement is made to determine whether the benefits and
burdens are distributed fairly
‹#›
Protects those who lack voice/influence
Benefits/burdens can be hard to define/quantify
The rights of some may have to be sacrificed in order to ensure
a more equitable distribution of benefits
Need to be highly trained (i.e. Judges etc.)
Comparing Utilitarianism with Justice Ethics
Similar in defining costs (burdens)/benefits
But, utility is based on net gain which may not consider the
issue of fairness
24
Justice Ethics (4) - limitations
‹#›

Confucian Ethics
Main principles:
Humanity to others and have esteem for yourself
Proper action and social harmony
Sense of right
Respect to/for elders
Emphasizes making profits with human virtue.
25
‹#›
Consequential vs. Non-Consequential
An issue of benefits vs. right
Most people in most situations tend to use both approaches
On the other hand, empirical evidence shows that managers
place a greater concern on utility (outcomes) than rights/justice
26
‹#›
Conclusions
Provide alternative perspectives not achievable from a single
theory
Likely to improve decision maker’s moral awareness and
understanding of the ethical issues involved in the dilemma
27
‹#›

28
Applying Theory
‹#›
Sam, a sales representative, is preparing a sales presentation for
his firm, Midwest Hardware, which manufactures nuts and
bolts. Sam hopes to obtain a large sales order from a
construction firm that is building a bridge across the Missis
river. The bolts produced by Midwest have a 3% defect rate,
which, although acceptable in the industry, makes it
unacceptable for certain projects, such as those subject to
sudden, severe stress. The new bridge is located near to the
centre of a great earthquake zone. If Sam wins the contract, he
will earn a commission of $25,000. But, if Sam tells the
construction firm about the defect rate, the construction firm
may award the job to a competitor whose bolts are more
reliable. Sam is thus in a dilemma on whether to report the
bolts’ 3% defect rate to the construction firm.
29
‹#›
1. Utilitarianism
Sam will conduct a cost-benefit analysis to determine which
alternative generate the most utility.
Building the bridge – improve roadways, transportation across
river; create hundred of new jobs; boost the local economy;
increase revenue for Midwest.
In contrast, bridge collapse kill or injure hundreds/thousands of
people.
But, bolts only 3% defect rate; earthquake may not occur; few

cars/people at time of disaster.
Building the bridge create greater utility than not building. Will
Sam report the defect rate? Yes – why?
30
‹#›
2. Virtue Ethics
Sam probably tell the construction firm about the defect rate
(honesty) – right thing to do because of the outcome of the
potential loss of lives with the bridge collapse.
This action will contribute the most positively to his
virtue/integrity as a decision maker
31
‹#›
3. Kantianism
Sam will be morally responsible to inform the construction firm
about the defect rate. The motive of moral action is more
important than the potential loss of commission.
32
‹#›
4. Justice
Sam will conduct a benefit-burden analysis for the various
stakeholders (Midwest, construction firm, local community,
government, competitor) and judge whether the benefits/burdens
are fairly distributed among the stakeholders.
It is unlikely that with the construction of the bridge will lead

to fairness. E.g. a better qualified competitor should be more
suitable for the job; Lives may be lost for those using the bridge
at the time of the disaster if Midwest’s bolts are used.
Sam will probably inform the construction firm on the bolts’
defect rate.
33
‹#›
Guidant Consultant
Identify the main ethical issues of the case and the affected
parties.
Identify the possible consequences of the executives’ actions.
Identify the executives’ obligations to the affected parties.
Do you think the executives of Guidant Corporation acted
ethically? (justify your opinion with ethical theories)
What do you think Dr Fogoros statement that the decision of the
Guidant executives ‘to withhold such data, while statistically
defensible, was questionable’?
Identify the roles Dr Fogoros adopts and the different positions
he takes.
Do you think he acted ethically? How can his actions be
justified?
Are there other cases like this?
‹#›

34
What is a moral agent, and when is an organisation morally
responsible?
What is the difference between consequence (teleological)
based and duty (deontological) based ethics?
What is the difference between utilitarianism, Kantianism and
virtue ethics?
Why might normative theory be useful in the workplace, and
how can we use normative theory to help us make better
decisions?
Review Questions
‹#›
35
References
De George, RT 1992, 'Agency theory and the ethics of agency',
in NE Bowie & ER Freeman (eds), Ethics and agency theory:
An introduction, 3 edn, Oxford University Press, New York, pp.
59-74.

Etzioni, A 1996, 'A moderate communitarian proposal', Political
Theory, v. 24, n. 2, pp. 155-71.
Ferrell, OC, Fraedrich, J & Ferrell, L 2005, Business ethics:
Ethical decision making and cases, Houghton Mifflin, Boston.
Hartman, LP & Desjardins, J 2008, Business ethics: Decision
making for personal integrity & social responsibility, McGraw-
Hill irwin, Boston.
MacIntyre, A 1999, 'Social structures and their threat to moral
agency', Philosophy, v. 74, pp. 311-29.
Singer, M 1997, Ethics and justice in organisations, Avebury,
Aldershot.
Trevino, LK, & Nelson, KA 2006, Managing business ethics:
Straight talk about how to do it right, 4 edn, John Wiley &
Sons, New York.
36
‹#›
WARNING
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communicated to you by or on behalf of
RMIT University in accordance with
section 113P of the Copyright Act
1968 (Act).

The material in this communication may
be subject to copyright under the Act.
Any further reproduction or
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Do not remove this notice

Lecture 6:
Applying CSR
Dr Warren Staples

‹#›
To create Em dash above headline:
Same size and weight as the headline and set using a soft return.
PC: Em dash (—): Alt+Ctrl+ - (minus)
Mac: Em dash (—): Shift+Alt/Option+hyphen
1
Recap
Core characteristics of CSR
The cases For and Against CSR
(Friedman, Karnani) V (Carroll, Schwartz & Carroll, Smith,
Freeman)
Corporate Moral Responsibility
CSR and CG
‹#›
Overview
Terminology & Drivers
Applying Stakeholder theory
Identification & Salience
CSR in the marketplace, workplace, community & ecological
environment
CSR communication & reporting
‹#›
CSR by many names

Business Ethics
Sustainability/Sustainable Development/SDGs
Corporate citizenship
Community engagement/partnership/programs
Corporate community involvement
Creating Shared Value (CSV)
‹#›
What do firms do CSR? Levels of analysis
‹#›
‹#›
CSR drivers
Macro perspectives: Institutions (Peng et al 2008; Husted &
Allen 2010)
Meso level perspectives - Firm motivations, instrumental CSR
(reputation, profit, etc) – stakeholder salience – community
(Marquis)
Micro level perspectives: CEO Personal Values (Micro) - Chin,
Hambrick and Trevino (2013),
Dimaggio & Powell (1983) institutional isomorphism:
Normative (e.g Ethical)

Coercive (e.g Regulation)
Mimetic (e.g Competitors)
‹#›
Applying stakeholder management
“any group or individual who can affect or is affected by the
achievement of the organization’s purpose” (Freeman 2011)
‹#›
‹#›
Freeman (2011, p. 53) defines stakeholder as “any group or
individual who can affect or affected by the achievement of the
organization’s purpose”. Phillips (2003) named stakeholders as
“any individual or group that is the legitimate object of
managerial attention”.
Based on Freeman (2011), “stakeholder management” at least
should designed into three basic steps that are
“how to identify the stakeholders” by analysing the stakeholder
attributes such power, legitimacy, influence (Mitchell, Agle &
Wood 1997)
“how to threat the stakeholders” using ‘communications’ and
‘information’ (Smudde & Courtright 2011)
“how is the impacts of stakeholder management” has been
studied by Hillman and Keim (2001) to find the impact of

stakeholder management to shareholder value, while Romenti
(2010) see stakeholder management impacts on corporate
reputation.
2. Stakeholder Approach and Local Legitimacy
Local legitimacy is a general perception or assumption that the
actions of businesses are desirable, proper, or appropriate
within some socially constructed system of norms, values,
beliefs, and definitions (Suchman 1995).
‘Social Pressure’ from local government and NGO is derived
from the dissatisfied of local stakeholders with corporate
operation (Reimann 2012; Gifford and Kestler 2008).
‘social embeddedness’ is a foundation for company obtaining
local legitimacy by building relationship with local stakeholders
(Gifford & Kestler 2008; Gifford, Kestler & Anand 2010).
7
Identification of Stakeholder and Claims
Treatment of Stakeholders
Assessment
of the Impact
Stakeholder identification & salience
Mitchell, Agle & Wood (1997):
Identification of 1) Claimants 2) Influencers
Power, Legitimacy & Urgency
Who or What Really Counts – typology of 7
Dynamism in Stakeholder-Manager relations

‹#›
Power, dependence, and reciprocity in relationships
8
Stakeholder identification & salience
Power
Urgency
Legitimacy
4. Dominant
5. Dangerous
6. Dependent
7. Definitive
1. Dormant
2. Discretionary
3. Demanding
8. Non stakeholder
Source: Mitchell, Agle & Wood (1997)
Footnote:
Urgency? Neville et al. (2011)
Organization (Ali 2017)
‹#›

‹#›
CSR in the marketplace
Business case for CSR – does it pay off?
Marketplaces? Sourcing, buying, marketing, advertising, pricing
and selling of products and services
What markets? Consumers, financial (institutional), B2B,
Bottom of the Pyramid (BOP)
Crane, Matten & Spence (2014)
‹#›
‹#›
CSR in the workplace
Employee recruitment & retention tool (Turban & Greening
2000; Bhattacharya, Sen & Korschum 2008)
Regulated v Less regulated workplaces
In-house v Outsourced workplaces
Labour standards – SA 8000 decent work, ILO Global labour
Equality in the workplace
‹#›
‹#›

CSR in the community
Increasing interest in the impact of the community on business
(Marquis & Battilana 2009; Marquis, Glynn & Davis 2011)
Communities – generally high legitimacy, low power and low
urgency
Philanthropy (Carroll 1998)
Strategic philanthropy
Linking employee volunteering to HRD strategies
Linking charitable giving to marketing strategies through cause
related marketing and sponsorship
Establishing cross-sector partnerships with community groups
‹#›
CSR – a case study
Chinese firms in Australia – Huang & Staples (2014)
Interviews with 56 managers from Chinese firms, community
group leaders, government officials
Field visits & Review company annual reports and sustainability
reports.
15 large Chinese firms in Australia operating in four states:
VIC, WA, NSW, and TAS
Industries: Mining, agriculture, manufacturing, banking,
telecommunications, airlines, and trading.
‹#›
The next 9 slides are all from research undertaken by Charlie

Lecture 3Business Ethics – Psychological TheoriesDr Warren .docx

Lecture 3Business Ethics – Psychological TheoriesDr Warren .docx

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