MASTER COURSE DEVELOPMENT ECONOMICS AND INTERNATIONAL STUDIES INTERNATIONAL BUSINESS ETHICS II (IBE II)

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1 MASTER COURSE DEVELOPMENT ECONOMICS AND INTERNATIONAL STUDIES INTERNATIONAL BUSINESS ETHICS II (IBE II) (SEMINAR) WINTER TERM I. COURSE DESCRIPTION This seminar builds on the foundation laid throughout IBE I held in the summer semester. As in the last term, the theoretical foundation of business ethics, CSR and sustainability was laid, it is the purpose of IBE II to address the practical implementation of these concepts. Despite the fact that CSR and sustainability are given increasing attention in all realms of society, many for-profit and non-profit-organizations have not succeeded in implementing sustainability and CSR on a strategic level. Instead, their efforts remain cosmetic or window-dressing, as Milton Friedman called it, and thus do not contribute a significant value to the organization and society. In these cases, CSR and sustainability usually do not reach the core business and remain outside of the value chain. It is the purpose of this module to convey how a strategic CSR and sustainability concept can be developed and implemented in an organization. To support this aim, we will do real life case studies, meaning cases of firms from different continents that have successfully or unsuccessfully integrated CSR into their core business. II. REQUIREMENTS The final grade consists of a text and case study presentation (40%) and a seminar paper (60%). Moreover, students also have to show a 80% rate of attendance. Students enrolled in the BA or Teacher Training Programs (Lehramt) can choose between a certificate of attendance or a certificate of achievement. The grades are based on the presentation and the seminar paper Text and Case Presentation: Students are asked to present one of the cases in teams. The size of the teams will depend on the number of participants. With each case there is an accompanying text that deals with issues that come up in the case study. Concerning the text, its central aims and findings should be presented. You should also be critical of the text and address its potential shortcomings. Feel free to disagree with opinions or positions of the respective authors. Please prepare a one-page handout for your classmates that summarizes the text.

2 Regarding the case study, the cases given to you provide the basic dilemma and problems, and include some background information. However, students are urged to collect additional information on the companies in question and their initiatives. As all the cases assigned to students are real-life examples, there is substantial information to be found. Thus, students are assigned to do the following: 1. give short summary of the case 2. identify the challenges for the company and its problems 3. assess the situation of the company and evaluate what it has done so far 4. collect additional information 5. state the options available 6. make the recommendations on what the company should do to address the challenges and problems The presentation of text and case should take in between 30 and 35 minutes overall. It is up to you how much time you would like to spend on either of the two. Please note that you do not have to prepare a handout for the case, only a summary of the text! You are also free to choose how you want to present the text and the case. Especially for the case presentation, a ppt-presentation might be helpful, but it is not mandatory. The texts/cases will be distributed in the first session of this course. All documents will be provided as downloads. Seminar Paper: Like the seminar as such, the final paper also take a more pragmatic approach. It consists of an industry and organizational analysis. Industry analysis: Each student should select an industry and review the CSR and sustainability issues relevant to that industry. o What are the most important social and environmental issues facing firms in the industry? How will they influence the way the organization does business now and in the future? Is social performance more important than environmental performance (or vice-versa) in this industry? Organizational analysis: Each student should highlight one company in the chosen industry and discuss its focus, success, and challenges in terms of social performance and environmental performance, and how its CSR activities relate to company strategy. Do an evaluation and make sure to be critical: In other words, what is each firm doing well with regard to its CSR activities? What is each firm doing poorly? Recommend improvements for the firm, in light of its current performance, and in light of what you identified in your industry analysis as being important factors that firms pursue in your industry. o Use and analyze the firm s annual Sustainability Reports and other first-hand materials

3 o In addition to published materials by your focal firm, utilize sources in the business press, business journals and of competitors to build a composite picture of the social and environmental performance of your firm. Final Paper Deliverable: o Your report shall be of a length of in between and words, not including appendices and bibliography. o The date when the seminar paper will have to be handed it will be determined jointly. o Please apply the formal instruction guide for the preparation of seminar papers, Bachelor theses or Master theses at the Institut für Wirtschaftswissenschaft, which is available online. III. GENERAL NOTE A seminar is a form of interactive knowledge generation which draws on the knowledge of the participants on the one hand and their participation in the discourse on the other. It is expected of you that you engage in discussion and field questions to your classmates that are presenting. IV. CONTACT Prof. Dr. Matthias S. Fifka Kochstr. 4 (17), Erlangen Telefon Fax matthias.fifka@fau.de V. TIME TABLE Date Subjects, Texts and Cases Groups and Students Assigned Oct. 14 Introduction to the Course, Distribution of Presentation Topics Oct. 21 Oct. 28 Resit Exam IBE I 1. The Business Case for CSR and Sustainability Text 1: Porter, M.E. and Kramer, M.R Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Group 1 Case 1: ABN Ambro Bank: Banking on Brazil Group 1

4 Nov. 4 Nov. 11 Nov Committing to and Leading CSR Text 2: Kakabadse et al. (2009). CSR-Leaders Road Map. Group 2 Case 2: Marks & Spencer: How Serious is Sustainability? Group 2 1. Stakeholder Management Text 3: De Bakker, F. et al. 2002). Stakeholder Influence Strategies and Stakeholder Oriented Management. Group 3 Case 3: Brent Spar Revisited Group 3 1. Assessing External Impacts on the Organization I ( Megatrends ) Text: Fifka, M.S. (2013). Globalization Text 4: Dyllick, T. and Hockerts, K. (2002). Beyond the Business Case for Sustainability Case 4: IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor Group 7 Group 4 Group 4 2. Assessing External Impacts on the Organization II ( Megatrends ) Nov Assessing the Internal and External Impact of the Organization Dez. 2 Dez Designing a CSR Strategy Text 5: Galbreath, J Building Corporate Social Responsibility into Strategy. Case 5: How BMW successfully practices sustainable leadership principles 1. Operationalizing CSR Organizational Governance Text 6: Jamali et al Corporate Governance and Corporate Social Responsibility Synergies and Interrelationships. Case 6: Hebei Dawu Group: Introducing a Family Business Constitution 1. The Ethical Decision Making Process Text 7: Anand, V., Ashforth, B.E., and Joshi, M Business as Usual: the Acceptance and Perpetuation of Corruption in Organizations. Case 7: Siemens - How the Greased Wheel Slid Off the Ethical Track Group 5 Group 5 Group 6 Group 6 Group 7 Group 7

5 Dez Operationalizing CSR - Business Ethics Management Text 8: Trevino, L.K. and Brown, M.E Managing to be Ethical: Debunking Five Business Ethics Myths. Group 8 Case 8: Enron The Crookedest Guys in the Room Group 8 Jan Operationalizing CSR in the Market Customers and Suppliers Jan. 20 Text 9: Pivato, S. et al The Impact of CSR on Consumer Trust. Group 9 Case 9: Walmart s Sustainability Strategy Group 9 1. Operationalizing CSR - Employees Text 10: Bhattacharya et al. 2008: Using Corporate Social Responsibility to Win the War for Talent. Case 10: The Marriott Corporation Managing a Low- Wage Workforce Group 10 Group 10 Jan Operationalizing CSR The Community Text: Fifka, M.S. (2010). Taking the Path of Corporate Citizenship 1. Managing CSR and Sustainability The Environment Text 11: Kirkland, L. and Thompson, D. (1999). Challenges in Designing, Implementing, and Operating an Environmental Management System. Group 11 Case 11: Sustainability at Millipore Group 11 Feb Measuring, Controlling and Reporting CSR Text: Fifka, M.S. (2013). Sustainability Reporting - A Challenge Worthwhile.