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University of Turin Advanced Business Administration

University of Turin Advanced Business Administration. Ethics Associate Professor Christine Burton. Definition of Ethics. Ethics – rules and principles that define right and wrong conduct Foundations of ethical behaviour Utilitarianism Deontology Justice Quantification.

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University of Turin Advanced Business Administration

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  1. University of TurinAdvanced Business Administration Ethics Associate Professor Christine Burton

  2. Definition of Ethics • Ethics – rules and principles that define right and wrong conduct • Foundations of ethical behaviour • Utilitarianism • Deontology • Justice • Quantification

  3. Kohlberg’s six stages of ethical reasoning • Stage 1 - Punishment and obedience • Stage 2 – Individual Instrumental Purpose and Exchange • Stage 3 – Mutual expectations, relationships, conformity • Stage 4 – Social system and Conscience maintenance • Stage 5 – Uphold basic rights, values, social contracts • Stage 6 – Pre-eminence of universal ethical principles

  4. Cross-cultural issues • Non-negotiable position • Sensitivity to local customs • Ask rather than assert • Different expression of similar values • Forms of address

  5. Triple Bottom Line Accounting and CSR • What is a company worth? • What are a company’s prospects? • What risks does a company face? • Triple bottom line • Financial audit • Sustainable (environmental) audit • Social audit

  6. Bottom Line and Triple Bottom Line Differences

  7. Models of CSR • Social involvement directly related to business activity • Stakeholder needs not society needs • Layers of responsibility: economic, legal, ethical and discretionary • Effectiveness and efficiencies of business competencies

  8. Beliefs about CSR • Consumer preferences for CSR companies • Investors favour CSR companies • Talented people want to work for CSR companies • Stakeholder engagement leads to innovation • Trust and CSR reduces risks in relation to safety, boycotts and loss of reputation

  9. It is impossible to have an enduring, prosperous business in an economic and social desert (Barnes CEO of Zeneca quoted in Clarke) If a company starts talking about CSR or buys a company jet, I sell my shares (Kerr, in Wood, A. 2002, ‘Failure is the triple bottom line’ The Australian, 28 May, p.9)

  10. Ethical dilemmas • Two scenarios for you to do: first as an individual; and then in groups of 5. • One half of the class will do one scenario and the other half the second scenario.

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