1. Business and Economics
Management Ethics and
Corporate Governance:
MGX3100

2.  How are we doing?
 Any Questions?
 I am away Week 4 
Welcome to Week 2

3. The Corporation
 150 YEARS: Evolved from insignificance to DOMINANCE.
 It has power and influence over our lives.
 RECENT SCANDALS have triggered a debate around Lack of Public
Control over Big Corporations.
 How can we understand the PARADOX of Great Profits and hidden
costs.
http://monash.kanopystreaming.com.ezproxy.lib.monash.edu.au/node/6408
4
Mark Achbar, Joel Bakan, Jennifer Abbott, 2003
(15 minutes)

4. The ‘Bad apples’ metaphor
e.g. Enron, Monsanto, Merrill Lynch

5. 1. Part of the Society

6. 2. Sports Team

7. 3. Family

8. 4.Telephone Line Network

9. 5. Soaring Eagle

10. 6. Artificially created Monster/
Frankenstein’s Monster

11. 7. Big Fish

12. 8. Evil Corporate Agenda

13. 9. Person

14. 10. Shark
Externalising Machine

15. In summary,
 A Corporation is.....a type of a Business
Association, an Artificial Legal Structure, a Legal
Person, a Psychopath, a Predator and a Plunderer.
 The main purpose is to make profits for owners.
 It is required legally to focus on “SHAREHOLDER VALUE”
 Philosophical underpinnings of Capitalism
 Individual vs Institutional Morality? Institutional role is that
of a monster.
 CASES: e.g. Nike, Shell, Monsanto,
 Corporate Criminals: Exxon, GE, Chevron.

16. What do you think is the Corporation?
• Individual Task
• Reflect on the different conceptualisations of the
Corporation.
• Draw/ write about your conceptualisation of the
Corporation.
• Why?
• Discuss with the class.
• 2 minutes

17. What can be done?
 Corporations should be held accountable.
 The legal roots that created these corporations have to be
readdressed.
 Undertake Collective responsibility.
 Working together to stand against corporate rule.
 Independence from corporate rule.
 Facilitate democratic actions within organisations

18. Group Assignment
WEEK 5: Shareholder Perspective: The Gap
Key Questions:
•Discuss arguments for and against sweat shops. With
which do you agree?
•Does the shareholder theory dictate a particular position
with respect to sweatshops?
Readings:
El Salvador and The Gap: Tee-shirts and tears’ in Pincus, L. 1998. Perspectives
in business ethics: McGraw-Hill (Reading list online)
Arnold and Bowie in Arnold, Beauchamp and Bowie (op cit) page 563
Maitland in Arnold, Beauchamp and Bowie(op cit) page p.553

19. WEEK 6: Stakeholder Perspective: Obesity and Fast
Food
Key Questions:
•Use the stakeholder analysis to look at the impact of fast
food (e.g. McDonalds) on each stakeholder group.
•Should the sale/marketing of fast food be regulated/
restricted? If so why? If not, why not?
Readings
Freeman in Arnold, Beauchamp, Bowie & Arnold(op cit) page 57ff
Marketing Obesity: Junk food, advertising and kids
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliament
ary_Library/pubs/rp/rp1011/11rp09

20. WEEK 7: Corporate Governance and Regulation:
Tobacco Regulation
Key Questions:
•If tobacco is harmful to the point of being so heavily
regulated should it be made illegal?
Readings
Newton L. and Schmidt D. Whose job is it to protect consumer health? In Wake
up calls Mason, OH: Thompson South-Western p.87-110.
http://www.health.vic.gov.au/tobaccoreforms/ Holley, D. 1987. Moral evaluation of
sales practices: Public Interest Enterprises Inc.
Ebejer, James M. & Morden, Michael (1988) Paternalism in the Marketplace:
Should a Salesman Be His Buyer’s Keeper. Journal of Business Ethics, May, Vol.
7 Issue 5, p337-339.

21. WEEK 8: Corporate Governance and Regulation: eNRON
Key Questions:
•Discuss the Enron case with regard to the failure of
regulation. Does Enron present an argument for more or
less external regulation?
Readings
Newton L (2005) Enron: From paragon to pariah in Gini(ed) Case Studies in
Business Ethics, pearson, Upper Saddle River, NJ pp.190-205
Duska and Duska (2003) Ethics In Auditing reprinted in Arnold Beauchamp and
Bowie(op cit) p333.
Boyd (2004) The structural origins of conflicts of interest in the accounting
profession reprinted in Arnold, Beauchamp and Bowie(op cit) p.341
Boatright Ethical issues in financial Services in Arnold, Beauchamp and Bowie
(op Cit) p.350.

22. WEEK 9: Environmental Issues: Coal mining at Maules
Creek
Key Questions:
•What environmental issues does the mining of coal at Maules Creek raise?
•Using both CSR and regulation frameworks examine the case for and
against continued mining at Maules Creek?
•Was the NSW Government justified in granting the mining licence?
•Was the Commonwealth Government justified in giving it the
Environmental "go-ahead"?
Readings
http://www.miningaustralia.com.au/news/ whitehaven-s-determination-
unwavering-hoax-will-no
http://whitehavencoal.com.au/
http://www.smh.com.au/business/mining-forcontroversy- 20130128-2dgul.html
http://www.theage.com.au/business/nsw-approveswhitehaven- mine-expansion-
20130125-2dbdc.html
http://www.theage.com.au/opinion/politics/potentialjailing- not-as-scary-as-threat-
of-maules-creekmine- 20130123-2d78s.html

23. WEEK 10: Ethical Issues in Marketing: Expansion of
British American Tobacco in emerging economies
Key Questions:
•What are the central ethical issues in each of these
cases?
•Are there any lessons that BAT might learn from Nestlé's
experience?
Readings
Post J. The ethics of marketing: nestle infant formula in Hoffman, Frederick and
Schwartz (Reading list online)
British American Tobacco
http://mona.sh/m8bNa

24. WEEK 11: Ethical Issues in Marketing: Stereotyping the
commodification of Identity.
Key Questions:
•Identify and analyse instances of commodification in
advertising. Is this style of advertising ethically justifiable?
Readings
Spence, E., & Van Heekeren, B. 2005. Stereotyping – The commodification of
identity in Advertising ethics. Upper Saddle River, N.J.: Pearson/Prentice Hall.
page 54-69.
Klein N. 2000 Alt.Everything in No Logo pp. 87-112. Flamingo: London.

25. WEEK 12: Human Resource Management: Drug Testing
in the AFL
Key Questions:
•Present arguments for and against drug testing of AFL
players. Is the current AFL policy on drug testing ethically
defensible?
Readings
Anti-doping code
http://www.afl.com.au/news/2010-03-09/antidoping-code
Monitoring employees through drug testing in Hartman L.P. and DesJardins
J.Business Ethics: Decision-making For Personal Integrity And Social
Responsibility pages 274-310

26. WEEK 3:
Read the Ford Pinto Case study.
Analyse using the framework from last week:
•Synopsis of case
•Identification of ethical issue (what bothers me?)
•Overview of appropriate theoretical frameworks
•Application of frameworks to case
•Possible courses of action (how could issues be
resolved)
•Conclusion (opinion as to best course of action)
Thank You!!!