Business Ethics & Corporate Governance Program Class of Semester : MBA : 2013 : III Course Code Sessions Credits

: : : SL GM 602 33 3

Faculty: Sudeepta Pradhan Room- E-106, sudeepta.pradhan@ibsindia.org, 9948748298 Course Objective To help students understand the nature of Business Ethics and issues in Corporate Governance and application of these very important aspects to the contemporary Indian scene TEXT BOOK Business Ethics & Corporate Governance AUTHOR / PUBLICATION A.C. Fernando, Pearson Education 2nd edition

REFERENCE BOOKS 1.Business Ethics: Concepts and Cases 2. Corporate Governance

AUTHOR / PUBLICATION 1.Manuel G. Velasquez, Pearson Education, 7th edition 2.Erik Banks, Macmillan, 2004

Session Plan
Topic No. 1 2 Introduction to Business Ethics Introduction to Business Ethics Introduction to Business Ethics 4 Introduction to Business Ethics Ethical frameworks Ethical frameworks Ethics & values 1.Ethical Frameworks for Management (HBS: 9 384 105) Same as above Chapter 2. Ethical Principles in Business In Business Ethics: Concepts and Cases by M. G. Velasquez Chapter 2. Ethical Principles in Business In Business Ethics: Concepts and Cases by M. G. Velasquez Chapter 2. Ethical Principles in Business In Business Ethics: Concepts and Cases by M. G. Velasquez Concepts Covered Introduction Case title along with ref no. Reading material

2. Ethical Values of the Murugappa Group: A Case Study (ICFAI Journal of Corp. Gov.,

Vol. 8( 2) 5 Typical problems in Business Ethics Marketing ethics 3. On Weldons watch: recalls at Johnson & Johnson (HBS: 9 311 029) 4. Martha McCaskey (HBS 9 403 114) 5.Hitting the Wall: Nike & International Labour Practices (HBS 9 700 047) 6. Hollywood in India (A) (HBS 9 711 017) Video Clip from the documentary The Corporation Three small videos related to Vedantas Niyamgiri project 7.State Grid: Corporate Social Responsibility (HBS 9 410 141) Karmayogs Rating of CSR activities of Indian firms 8.Royal Dutch Shell in Nigeria (A) (HBS 9 399 126) 9. Exit Strategy (HBS N9 311 075) Clipping from the Hindi movie Corporate 10. Hewlett Packard company : CEO succession in 2010 (HBS 9 411 056) Chapter 4. Ethics in Marketplace Business Ethics: Concepts and Cases by M.G. Velasquez

Typical problems in Business Ethics Typical problems in Business Ethics

Ethics in Operations Ethics & HR

Chapter 4. Ethics in Marketplace Business Ethics: Concepts and Cases by M.G. Velasquez Chapter 4. Ethics in Marketplace Business Ethics: Concepts and Cases by M.G. Velasquez Chapter 4. Ethics in Marketplace Business Ethics: Concepts and Cases by M.G. Velasquez Chapter 4. Ethics in Marketplace Business Ethics: Concepts and Cases by M.G. Velasquez

Typical problems in Business Ethics Typical problems in Business Ethics

Intellectual Property Issues Ethics & business

10

Typical problems in Business Ethics

Ethics, Business & Society

Chapter 4. Ethics in Marketplace Business Ethics: Concepts and Cases by M.G. Velasquez An Indian Perspective of Corporate Social Responsibility in HRM Review Jan 2008 Study of website www.karmayog.com and ISO 26000 (from ISO website) Ethical Dilemma: Managerial View In MBA Review Jan 2007 Ethical Dilemma: Managerial View In MBA Review Jan 2007 Ethical Dilemma: Managerial View In MBA Review Jan 2007 Role of Ethics in Leadership: Leading By Setting Examples in Effective Executive July 2005

11

Corporate Social Responsibility

CSR

12

Corporate Social Responsibility

CSR Ratings

13

Complexity of Ethical issues Complexity of Ethical issues Complexity of Ethical issues Ethical leadership

Role of business in society Individual vs. client, Org.conflicts Ethical dilemma Ethics & leaders

14

15 16

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CG: History of Corporate form & models

Rationale for Corporate Governance

11.Mergers & Acquisitions: legal context: basic framework for Corporate Governance (HBS 9 803 200) 12. Note on Corporate Governance Systems: US, Japan & Germany (HBS 9 292 012) 13.Action Aid International (HBS 9 311 004)

Agency Theory and Managerial Rewards: Effective Executive March 2003

18

CG: History of Corporate form & models

Basic models

Agency Theory and Managerial Rewards: Effective Executive March 2003

19

Corporate Governance: History of Corp. form & models Nature & Evolution of CG Nature & Evolution of Corporate Governance

CG in practice

Agency Theory and Managerial Rewards: Effective Executive March 2003

20

CG, restructuring &responsibilities to stakeholders Improving board performance

14. Marriott Corporation (A) (HBS 9 394 085) 15.Measuring & improving performance of corporate boards using Balanced Scorecard (HBS B 0303 D) 16.The future of Corporate Governance (HBS BEP 029)

Chapter 1: Governance Redefined in the book titled Corporate Governance by Erik Banks Chapter 1: Governance Redefined in the book titled Corporate Governance by Erik Banks

21

22

Nature & Evolution of Corporate Governance Internal CG mechanisms Internal CG mechanisms

The road ahead

Chapter 1: Governance Redefined in the book titled Corporate Governance by Erik Banks

23 24

Managerial responsibility Processes & changes to prevent frauds Internal decision making & oversight

17. A letter from prison (HBS 9 110 045) 18.Accounting fraud at Worldcom (HBS 9 104 071) 19. Wisconsin Central Ltd. Railroad & Berkshire Partners (A)(HBS 9 190 062) 20.UAL Corporation (HBS 9 295 130) Chapter 3: External Governance Mechanisms in the book titled Corporate Governance by Erik Banks 3

25

Internal CG mechanisms

26

External CG mechanisms

Role of investors and the media

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External CG mechanisms

Steps taken institutionally to improve CG Challenges in standardising across countries

21.Corporate reforms in the USA (HBS 9 304 091) 22. International Accounting Standards Board (IASB) at a crossroads (HSB 9 111 084)

Chapter 3: External Governance Mechanisms in the book titled Corporate Governance by Erik Banks Chapter 3: External Governance Mechanisms in the book titled Corporate Governance by Erik Banks

28

External CG mechanisms

29

CG Ratings

Presentation of group assignment Presentation of group assignment Study of Indian CG practices 23.Company Governance fulfilling broad mission & purpose :What the India way can teach us (HBS 5821 BC) 23.Company Governance fulfilling broad mission & purpose :What the India way can teach us (HBS 5821 BC) 24. Special Economic Zones in India: Public Purpose & Private Property (A) (HBS 9 709 027) EVALUATION # Component 1 Class Participation 2 End Term Exam 3 Group presentation Individual assignment Total Weightage

Corporate Governance Ratings: Savior of the Stakeholders? ICFAI Reader July 2004 Corporate Governance Ratings: Saviour of the Stakeholders? ICFAI Reader July 2004 Revitalizing Clause 49 Portfolio Organizer Feb 2006 The Changing Face of Family-owned Business in India, ICFAI Journal of Business Strategy , June 2004 Revitalizing Clause 49 Portfolio Organizer Feb 2006 The Changing Face of Family-owned Business in India, ICFAI Journal of Business Strategy , June 2004

30

CG Ratings

31

CG in India

32

CG in India

Study of Indian CG practices

33

CG in India

Contemporary issues

40% - 3 instalments 10%, 15% & 15% respectively 30% 20% 10% 100%