This seminar introduces the concepts, application, practice and strategies involved in determining the urgent need for business to operate through sustainable practices. In addition, it addresses ethical issues in a way that upholds and enhances the triple bottom line of a company: People, Planet, and Profit. In addition, the seminar introduces the students to concepts in business ethics and how it influences the topic of sustainability. The seminar teaches practical solutions on how to embed sustainability within the business operations. Students will come away from the course understanding what embedded sustainability is and how to drive proactive solutions that bring social innovation to the forefront of the business as a key strategy for future business success.

1. Lecture 1:
Sustainability & Ethics
More than just a public
relations statement…
Global Business Management

2. Global Business Management
Outline of the Seminar
Seminar Session #1
• Professor Intro
• Take Attendance & Class Intros
• Sustainability & Ethics Intro
• UN Development Goals

3. About Your Professor
Experience
• CEO & Founder, AiMarket
• 19+ years in Value Chain Management
• Adjunct Professor @ USF
• Instructor @ UC Berkeley Extension
Education
• BS in Business Administration: Finance @ SJSU
• MBA - University of San Francisco
(Marketing & Management)
• MA in Philosophical Theology @ University of Nottingham
• Doctoral Student in Ethics & Social Theory @ GTU
Hobbies
• Spending time with my 3 kids,
• Travel &Watching movies w/ My Wife,
• Reading, Philosophical Theology, Gardening
• Business Ethics, Machine Ethics, Computers
• And my startup… Payson E. Johnston
Feel Free to Connect
https://www.linkedin.com/in/payson

4. Global Business Management
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5. Global Business Management
Youtube
• https://www.youtube.com/watch?v=_g0-
yeKaOfU

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1. Be able to identify ways that embedded sustainability can improve value chain
conditions and what are the ethical implications that should be addressed.
2. Understand the basics of business ethics and sustainability terminology
3. Gain the skills to analyze issues plus make business manager decisions that are
ethical and sustainable and contribute to improving the world in which we live
and do business.
4. Utilize the concepts of business ethics to address “gray areas” in the
marketplace via a logical and fact-based way that ensures a sustainable
business.

7. 1. Be able to identify ways that embedded sustainability can improve value chain conditions
and what are the ethical implications that should be addressed.

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2 - Understand the basics of business ethics and sustainability terminology

9. Global Business Management
3. Gain the skills to analyze issues plus make business manager decisions that are ethical
and sustainable and contribute to improving the world in which we live and do business.

10. Global Business Management
4. Utilize the concepts of business ethics to address “gray areas” in the marketplace via a
logical and fact-based way that ensures a sustainable business.

11. The Value Chain
Source: Dr. Sweta Thota
Or Business (B2B)
Global Distribution
Value Chain Management
Channel Management
Distribution Channels

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1. Financial
2. Tangible Solution
3. End Benefits

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Quotes from Friedman’s Article - 1970
The discussions of the
"social responsibilities of
business" are notable for
their analytical
looseness and lack of
rigor.
What does it mean to say
that "business" has
responsibilities? Only people
can have responsibilities. A
corporation is an artificial
person and in this sense may
have artificial responsibilities,
but "business" as a whole
cannot be said to have
responsibilities, even in this
vague sense.

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What do think?
Does Social Responsibility Belong in
Business?

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What’s Wrong….
An Industrial Workers of the World poster (1911).

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A Demonstration against Foxconn

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Bangladesh…

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Conflict Minerals

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26. Worker Disputes
• Moving part of the
manufacturing operations to
India…
• The workers want severance
packages
• “China Labour Bulletin said it
recorded 201 cases of labor
disputes, including strikes, in China
in the first four months of the
year”
http://online.wsj.com/article/SB10001424127887
323998604578565491218131384.html#printMod
e

27. Global Business Management
QUESTIONS:
1. Why is the co-founder of Specialty Medical Supplies being held in his office by
employees? 2. What approach is Mr. Starnes using to try to negotiate with his
employees in China? 3. How is the culture in China contributing to the situation at
Specialty Medical Supplies? How is the Chinese culture different from the culture in
the U.S.?
4. What obligation does the company have for the employees?
5. What do you think is causing the transition to India?

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Culture & the
Hierarchy of Need – a Motivational Theory
5. Cognitive Needs – Knowledge,
Meaning, etc.
6. Aesthetic Needs – Appreciation
and search for beauty, balance,
and form, etc.
We all try to fulfill these needs…
Be Needs
Basic Needs
8. Transcendence Needs –
Helping others to achieve self
actualization
http://www.simplypsychology.org/maslow.html
1940s
Updated in 1970s

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Triple Bottom Line
“Companies have traditionally honored a single bottom line: profit.
Concern only for profit, however,
ignores the impact that businesses have on the environment, community,
and human rights.
The
triple bottom line asks
that businesses look at their ecological and social impact
in addition to their
economic performance.
Sustainability Indexes, used by many investors,
are used to measure a
company’s triple bottom line.”
AMNESTY INTERNATIONAL USA
HUMAN RIGHTS EDUCATION PROGRAM

31. Global Business Management
What do think?
Does Social Responsibility Belong in
Business?

32. Global Business Management
Social Responsibility
Just the Tip of the Iceberg

33. Global Business Management
Creating Shared Value
The concept of shared value can be defined as policies and
operating practices that enhance the competitiveness of a
company while simultaneously advancing the economic
and social conditions in the communities in which it
operates. Shared value creation focuses on identifying and
expanding the connections between societal and
economic progress.
The concept rests on the premise that both economic and
social progress must be addressed using value principles.
Value is defined as benefits relative to costs, not just
benefits alone. Value creation is an idea that has long
been recognized in business, where profit is revenues
earned from customers minus the costs incurred.
However, businesses have rarely approached societal
issues from a value perspective but have treated them as
peripheral matters. This has obscured the connections
between economic and social concerns.
Creating Shared Value – HBR – Jan 2011
by Michael E. Porter and Mark R. Kramer

34. Global Business Management
History is the Judge
History has shown how some
actions that were long
accepted or at least
condoned in the business
community were eventually
condemned as morally
dubious.
Examples include…..

35. Global Business Management
Pollution of the Air and Water

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Large Political Contributions and
Lobbying Directed at People of Political

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Ethics

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Major Sources of Ethical Values in Business
McGraw-Hill/Irwin
© 2008 The McGraw-Hill Companies, Inc. All
rights reserved

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Morality and the Law
Law is the public’s
agency for translating
morality into explicit
social guidelines and
practices and for
stipulating punishments
for offenses.

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A related problem…
“…involves the belief
that a person found
guilty under law is
therefore morally
guilty. Such
judgments are not
necessarily correct, as
they depend on either
the intention of the
agents or the moral
acceptability of the law
on which the judgment
has been reached.”

42. Global Business Management
Morality and Ethical Theory
Morality
Concerned with social
practices defining
right from wrong
These words refer to attempts to introduce clarity,
substance, and precision of argument into the
domain of morality
Ethical Theory
& Moral Philosophy:
Reflection on the nature
and justification
of right actions

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Morality and Ethical Theory
Morality
What a person ought to
do to conform to society’s
norms of behavior
Ethical Theory
Concerns the
philosophical reasons for
and against aspects of the
morality stipulated by
society

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“If something is legal it is not necessarily moral; if something is
illegal, it is not necessarily immoral.
To discharge one’s legal responsibilities is not necessarily to
discharge one’s moral responsibilities”

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The branches of philosophy (orange)
and their links with allied fields (yellow)
Adapted from http://www.daviddarling.info/encyclopedia/P/philosophy.html
Axiology - the study of the nature, types, and criteria of values and of
value judgments especially in ethic
Applied
Ethics
BioMedical
Ethics
Business Ethics
Computer
Ethics
Environmental
Ethics
Social
Ethics

47. Normative
Ethical Theories
Rights
Approach
Individualism
Approach
Justice
Approach
Utilitarianism
Approach
Egalitarian Economic freedom Libertarian
Individuals
Matter
How much
do
individuals
matter?
Community
matters
Virtue
Ethics
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reservedAdapted from McGraw-Hill/Irwin
BioMedical
Ethics
Business
Ethics
Computer
Ethics
Environmen
talEthics
Social
Ethics

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What Ethical Theory?
• Small – Group Discussion: What ethical
theory would you apply to business and why?

49. Global Business Management
Applied
Ethics
BioMedical
Ethics
BusinessEthics
Computer
Ethics
Environmental
Ethics
Social
Ethics
Corporate
Social
Responsibility
Sustainability
Management
Theory
Marketing &
Finance
Supply Chain
Management
Social
Implications
Ethical
Theory
Social
Entrepreneurship
Value Chain Management
Business
Practice

50. Business Ethics & Social Responsibility
Social responsibility– business’s obligation to
maximize its positive impact and minimize its
negative impact on society
2-50McGraw-Hill/Irwin
Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

51. Global Business Management
Pyramid of Social Responsibility
2-51McGraw-Hill/Irwin
Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

52. Nature of Social Responsibility
Arguments For and
Against Social
Responsibility
2-52McGraw-Hill/Irwin
Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

53. Organizational Stakeholders
Owners Employees
Governments
Customers
Community
Competitors
Social Activist
Groups
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reservedMcGraw-Hill/Irwin

54. The Original UN Development Goals

55. On September 25th, countries will have the opportunity to adopt a set of global goals to end
poverty, protect the planet, and ensure prosperity for all as part of a new sustainable
development agenda. Each goal has specific targets to be achieved over the next 15 years.

56. UN Development Goals
• https://youtu.be/ntRnq_U13Eo
http://www.un.org/sustainabledevelopment/sustainable-development-goals/

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What do think?
What role does modern business have in
developing these UN Development Goals?
Which UN goals should business be
responsible for?

59. Relating logistics management and supply chain management to
supplier networks and marketing channels
Source: Dr. Sweta Thota
Or Business (B2B)
Global Distribution
Value Chain Management
Channel Management
Distribution Channels

60. Global Business Management
How does this Apply to
Value Chain Mgmt?
• The channel is were the actions is at
…production, marketing, and financial
• CSR is critical in these functions

61. 4. Be able to identify ways that embedded sustainability can improve value chain conditions
and what are the ethical implications that should be addressed.

62. Global Business Management
2 - Understand the basics of business ethics and sustainability terminology

63. Global Business Management
3. Gain the skills to analyze issues plus make business manager decisions that are ethical
and sustainable and contribute to improving the world in which we live and do business.

64. Global Business Management
4. Utilize the concepts of business ethics to address “gray areas” in the marketplace via a
logical and fact-based way that ensures a sustainable business.

65. Global Business Management
Subscribe to FlipBoard
Sustainability
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