MGMT 560 Sec. 001 (61793) ETHICS IN ORGANIZATIONS Spring 2010 Wednesday 5:40- 9:20pm Rm.

. CAP 1307 PROFESSOR JESSE DILLARD SBA 676 OFFICE HOURS: Tuesday 4:40-5:40pm (PSU campus), before and after class as needed and By Appointment 1 PHONE: 503-725-2278 email: jdillard@pdx.edu COURSE OBJECTIVES: The course is designed to provide students with an understanding of how political, social, legal, regulatory, and environmental issues impact business organizations within a global context. Topics covered include business ethics, corporate social responsibility, managerial integrity, public policy process in relation to business and sustainability economic, social, and environmental. These objectives are achieved by having the student: 1. Reevaluate and modify and/or confirm your personal and professional values and your commitment to live them out in your professional life (telling your story). 2. Recognize the enabling and constraining possibilities for acting in the public interest for a business organization. 3. Recognize the enabling and constraining societal structures within which these entities reside and act. The competencies from the MBA Leadership Model that are specifically addressed as a part of this course are: 1) Diplomacy/Conflict Management and 2) Listening. The class format is designed to encourage and sustain inclusive, enlightened, respectful, and ongoing discourse concerning what constitutes organizational management and business professions responsibility for acting in the public interest. The following core propositions provide the context for acting in the public interest. Acting in the public interest requires consideration of natural, social, and economic systems. Natural systems provide the context and sustenance for social systems and, therefore, must be respected, nurtured, and sustained. Social systems provide the context and objectives of economic systems. Organizational management and the associated business professions have a central role in the long-term viability of a democratically governed society grounded in justice, equality, and trust and supported by a sustainable economic system. o While all members of society have a moral responsibility to act in the public interest, work organizations are specifically granted fiduciary responsibility over societys

1 In order to better accommodate your schedule and to keep me from sitting in my office alone, I strongly encourage
you to make an appointment to meet with me whenever you need to do so. I will attempt to arrange a time that is compatible with your schedule. This way neither of us will feel constrained by the scheduled office hours.

economic resources, which consist of natural, human, financial, and technological resources. o The business professionals facilitate and monitor organizational activities in carrying out their fiduciary responsibility. Thus, the professions are concerned with the integrity and accountability of financial and administrative systems and those who design, implement, and utilize them. o The business professions must maintain high standards of integrity, responsibility, and accountability in order to fulfill its charge. REQUIRED MATERIALS: All materials other than the text should be available on my website (website- SBA websiteFaculty-Faculty & Staff Directory-Jesse Dillard-Current Term-user name=class, password=Password-then select item) or available through PSU Librarys online journal service. Text: Blowfield, M. and A. Murray. 2008. Corporate Responsibility: A Critical Introduction. Oxford Press. You are also expected to peruse the business and popular press/media to identify current ethical issues. I would expect to take time during each class period to discuss these topics. CLASS PARTICIPATION: You are expected to be prepared to discuss each reading and/or case on the day it is assigned. If some catastrophic event has rendered adequate preparation impossible, it would be in your best interest to inform me prior to class. A seating chart will be used to assist me in recalling and evaluating your class performance. It is your choice where you sit but after you choose, I need some continuity. DELIVERABLES Personal Statement (Turned in at the beginning of class on 21 April 2010.) Purpose: Provide you a game plan for moving forward. Format: Word document (maximum 5 double spaced, typed pages, 12point font, 1 inch margins, stapled, please number the pages, double sided printing appreciated) Content: what are your values and why? what philosophical perspective are your values grounded in? analyze your statement of purpose in light of your moral values how do your values relate to your personal leadership agenda from BA 508? Are they complementary, contradictory, etc.? Upon reflection, would you make revisions to the leadership statement and of so, what would they be? Are there possible conflicts between your values and those you have experienced, or might expect to experience, in work organizations and if so how might you resolve them?

Authentic leadership is the extent to which your actions are congruent with your moral and ethical values Reflective Question You are to consider the Reflections assignments for each class. You are asked to turn in written responses for each question/reflection at the beginning of each class session, except for the first session. I would expect these to relate to the readings for the day and to be generally no more than one type written page. Please turn the assignment in at the beginning of each class. Corporate Responsibility Report Analysis (Turned in on 28 April 2010.) This is an individual project, not a group project. The purpose of the assignment is to familiarize you with published corporate responsibility statements and provide you with an opportunity to assess their veracity and usefulness. Select a company that is classified in the Fortune 100 and that publishes some type of sustainability/ responsibility/citizenship report. You are ask to analyze a companys responsibility/ sustainability profile, following the Intel example presented in Dillard & Layzell Social Sustainability One Companys Story and drawing on the material covered in the course. Format: Word document (no more than 5 double spaced, typed pages, 12 point font, 1 inch margins-two sided printing is preferred please number the pages) Requirements: Your analysis/paper should address the following: the organizations stated values, principles, etc. stated corporate responsibility positions/programs/etc. with respect the social, environmental, and economic dimensions the strategy and structure for implementing them a critical assessment of the motivation behind, commitment to, and efficacy of the firms corporate responsibility The following items need to be included to ensure that the appropriate components are covered: Review of content verification of claims by external sources - court filings, public media, etc. format of presentation - GRI, etc. and the extent to which it was followed presence of 3rd party verification of the report Critique of the report is it transparent? What is omitted? pending litigation lobbying efforts what is not reported? Objectives of the project: To provide a medium to develop and demonstrate: capabilities for investigating the corporate responsibility dimensions of a business related topic capabilities to critically understand and evaluate elements of public representations of corporate responsibility capabilities for written expression 3

 To provide a medium for instructional feedback. GRADING: Grading will be as follows: 30% Class participation (informed class discussion & reflections) 40% Personal statement (due 21 April 2010) 30% Corporate Responsibility Report analysis (due 28 April 2010) If you are a qualified person with disabilities who might need reasonable accommodations in academic settings, please communicate with me as soon as possible so that we may make appropriate arrangements to meet your needs. Frequently we will need to coordinate accommodating activities with other offices on campus.

SESSION ASSIGNMENTS March 31 Session 1 Introduction Course administration, objectives, expectations, etc. Corporate Responsibility Sustainable Organizations Objective: Discuss the responsibilities of organizational management within the current social system. Dillard, J. 2008. An Ethic of Accountability. Research on Professional Responsibility & Ethics in Accounting. 13:1-18. (Available on my website, see above for access) Text: Blowfield, M. and A. Murray. 2008. Corporate Responsibility: A Critical Introduction. Oxford Press. Chapt. 1 Introduction to Corporate Responsibility Chapt. 2 Origins of Corporate Responsibility Chapt. 12 Impact of Corporate Responsibility Chapt. 13 Criticisms of Corporate Responsibility Moral Philosophy and Management Systems Objective: Discuss the foundations and applications of moral philosophy to business ethics. Dillard, J. and D. Layzell. 2004. Accountability of Accountability Systems or The Ethics of Performance Measurement and Evaluation. Journal of Cost Management. Reflections:

April 7 Session 2

1. What are the primary value(s) upon which you base your actions? 2. What are the central values upon which business organizations base their actions? 3. What are the central values upon which business organizations should base their actions? Individual Responsibility and Decision Making Objective: Explore Individual Responsibilities within an Organizational Environment and Consider Alternative Decision Making Frameworks Yuthas, K. and J. Dillard. 1999. Teaching Ethical Decision Making: Adding a Structuration Dimension. Journal of Teaching Business Ethics :339-361. Werhane, P. and B. Moriarty. 2009. Moral Imagination. Institute for Business Ethics. Managing Corporate Responsibility Chapt. 3 Globalization and International Development Chapt. 4 How Corporate Responsibility is Managed Agency and Structure: In Search of the Golden Mean Objective: Integrating context and agency in understanding corporate behavior. Dillard, J., R. Rogers, K. Yuthas. 2006. In search of the Golden Mean. Working paper. Reflections: Develop a decision model useful to you for making ethical decisions within a work organization.

April 14 Session 3

Corporate Governance Objective: Consider the responsibilities of corporations and business professionals as members of work organizations to stakeholders Chapt. 5 Business Case for Corporate Responsibility Chapt. 6 Standards, Stakeholders, and Regional Variations Chapt. 8 Corporate Responsibility and Its Place in the Corporate Governance Framework Chapt. 10 Stakeholders and Their Partnerships A Regulators Perspective PBS Interview with Arthur Levitt, former Chairperson of the SEC.

One Societys Response Sarbanes-Oxley Act Federal Sentencing Guidelines One Companys Response Dillard, J. & D. Layzell. 2009. Social Sustainability One Companys Story. In Understanding the Social Dimension of Sustainability. J. Dillard, V. Dejon, M. King (ed) Chapter 10 :199-211 (Routledge). Alternative Governance Structures Pullman, M. & J. Dillard. 2010. Values based supply chain management and emergent organizational structures. Working paper. Reflections: 1. What is the place of stakeholders in corporate governance? 2. How might structuration theory be useful in stakeholder management? Sustainable Development Objective: Explore responsibilities and potential for corporations and business professionals with respect to the natural, social, and economic systems. Environmental Responsibility Objective: Explore the potentialities of business with respect to natural systems. Lovins, A. et al. 1999. A Roadmap for Natural Capitalism. Harvard Business Review. :145-158. Lovins, A. et al. 2005. Winning the Oil Game: Innovation for Profit, Jobs, and Security Executive Summary: ix-xiv (book available online at Rocky Mountain Institute website.) Ehrenfeld, J. 2004. Searching for Sustainability: No Quick Fix. Working paper. D. Brown, J. Dillard & S. Marshall. 2009. Triple Bottom Line: a business metaphor for a social construct. In Understanding the Social Dimension of Sustainability. J. Dillard, V. Dejon, M. King (ed) Chapter 11 :211-229 (Routledge). Wall Street Journal Online Corporate Social Responsibility Debate. 6 Dec 2005. Corporate Citizenship Review of Impact and Criticisms

April 21 Session 4

Objective: Review and elaborate the parameters of corporate social responsibility within a global market economy. Chapt. 5 Business Case for Corporate Responsibility Chapt. 9 Sustainable Development Alternative Organizational Forms Dillard, J. Working Draft. Social business enterprise: At the cross roads or in the cross hairs Reflections: In your opinion, what is business social responsibility and how well are they living up to that responsibility?

TURN IN PERSONAL STATEMENT at the beginning of

April 28 Session 5 class Corporate Responsibility Objective: Alternative perspectives of Corporate Responsibility. Dillard, J. & M. Reynolds. Working paper. Thought Woman and the Tao of Sustainability. Dillard, J. (forthcoming). Buddhist Economics: A Path from an Amoral Accounting toward a Moral One, Advances in Public Interest Accounting. Corporate Citizenship Review of Impact and Criticisms Objective: Review and elaborate the parameters of corporate social responsibility within a global market economy. Chapt. 12 Impact of Corporate Responsibility Chapt. 13 Criticisms of Corporate Responsibility Chapt. 14 Future of Corporate Responsibility Reflections: 1. How would your statement of purpose change if feminist rationality were dominant? 2. How would your statement of purpose change if Buddhist rationality were dominant?

TURN IN CORPORATE RESPONSIBILITY

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REPORT ANALYSIS at the beginning of class