Bachelor 2020/2021

Business Ethics and CSR

Type: Compulsory course (Marketing and Market Analytics)

Area of studies: Management

Delivered by: Department of Strategic and International Management

Where: Graduate School of Business

When: 4 year, 1 module

Mode of studies: offline

Instructors: Ekaterina Ivanova

Language: English

ECTS credits: 4

Contact hours: 30

Course Syllabus

Abstract

In response to global environmental, social and governance challenges that humanity faces today, flourishing enterprises of all sizes around the world are urged to make ethics, corporate social responsibility (CSR) and sustainability a new normal way of doing business. The simplistic idea of corporations as wealth creating organizations with no obligations to their stakeholders is no longer acceptable in the public eye. The natural capitalism is becoming a response to an outdated shareholder-driven business model. Today businesses with purpose are expected to act as agents of world benefit and make an active contribution to meeting the 17 United Nations Sustainable Developments Goals (SDGs) . For doing business successfully on local or global scale a new mindset is required. It is not enough to be good at doing, a greater purpose consistent with creating economic value requires modern leaders to focus on their authentic state of being holistic with own values and actions. We live in the Anthropocene epoch that is characterized by short-term decision making and human practices, such as overconsumption or overproduction, which increasingly challenge our planet’s regenerative capacity and severely impact our ecosystems and livelihoods. The world is rapidly changing by becoming more digital and agile powered by artificial intelligence that replaces many of the traditional human occupations. Consequently, to educate the next generation of responsible leaders requires less concentration on the knowledge acquisition that becomes obsolete so quickly and more focus on critical thinking skills on our premises, the beliefs and assumptions at the foundation of our scientific and professional decisions, coupled by interpersonal and group communication competencies. What is the role of business in contemporary society? What is the United Nations Global Agenda 2030? What is the most appropriate way to measure how we achieve societal goals, GDP or people’s well being? Why does a circular economy outperform the linear one? How are values associated with ethics, CSR and sustainability becoming an integral part of corporate DNA? How do we develop sustainability mindset? What is the role of stakeholders for sustaining the future of a corporation? What is a purpose-driven organization? What is a sustainable business model? What is accountability and nonfinancial reporting? Why do environmental, social and governance indicators (ESG) matter? How to cope with CSR/Sustainability guidelines, international and local initiatives? What is quantum leadership and what are best practices of sustainable entrepreneurship today? These are some of the key issues, which will be addressed throughout this course. Why is this a capstone course? Students will be engaged in a formative learning experience to develop a sustainability mindset. This new way of viewing complexities and interconnectedness of the world will enable students to better understand and question the dominant economistic paradigm, as well as their own values and assumptions connected to unsustainability and resilience of the planet. By means of an engaging course design that incorporates the most advanced adult learning tools, students are exposed to the continuous cycles of action-reflection-learning, that enables them to better understand themselves in the contemporary setting. The course helps students to develop contemplative and critical reflection skills, and foster key cognitive mechanisms and competencies for a sustainability mindset. This is grounded in research findings that when we expand our understanding of ourselves and surrounding world, we are better equipped for shaping the world we want to live in. This course has a multi-disciplinary nature, drawing on philosophy, social sciences, business disciplines, including spirituality (secular, non religious) disciplines. On the one side, ethics-driven, responsibility-minded and sustainability-literate corporate behavior is understood as a means for constant individual and organizational self-reflection on how to proactively solve ESG challenges. On the other side, these concepts serve as a driver for innovation and a toolbox that helps dealing with the polarities of cooperation and competitiveness, pressures for sustainable development, and changes in international governance. Thus, the crucial role of business, movements and enlightened individuals as transformative agents for the flourishing society and clean planet is becoming evident.

Learning Objectives

• The course has one overarching goal and four main learning objectives: develop a global citizenship mindset for ethics, responsibility and sustainability: a lens through which to analyze information in the contemporary world and make business decisions for the sake of a flourishing planet.
• Knowing dimension: develop awareness and understanding of the contemporary challenges in the framework of the UN’s 17 SDGs and major theories on business ethics, responsibility and sustainability.
• Thinking dimension: develop systems and innovative thinking based on creativity, on both-and logic, long term thinking, applying principles of cyclical flow and interconnectedness.
• Being dimension: learn about self and others by reflecting about values anchoring our identity, unexplored assumptions, habits of mind and creating/identifying your personal mission.
• Engage in action to make a difference: inspire to change habits and shape a new lifestyle for themselves.

Expected Learning Outcomes

• Having successfully completed this course, the students will be able to answer the following questions: What does it take to become an ethics-driven, responsibility-minded and sustainability-literate business leader? How does the current state of the planet look? How did we get here? What are the shortcomings? What must we urgently address and focus on?
• • Students will be introduced to the major concepts on business ethics, CSR and sustainability for the ESG-driven businesses.
• • Students will explore social, economic and environmental issues at the local, regional and global levels.
• • Students will understand the key ethical concepts that frame the moral philosophy of business.
• • Students will learn to identify in the current events and data the underlying cognitive frames, and develop systems thinking perspective.
• • Students will practice tapping into their creative and intuitive resources to invent new solutions.
• • Students will be able to identify the underlying mental models and maps shaping events and their personal decision and interactions.
• • Students will learn to use the framework of the 17 UN’s Sustainable Development Goals in their local context.
• • Students will learn to identify, analyze and understand the risks and opportunities that business faces with introduction of environmentally friendly packaging in the context of emerging markets.
• • Students will investigate how to develop and continuously improve a responsible product according to the principles of circular economy.
• • Students will internalize the importance of business with purpose capable of meeting expectations of company‘s stakeholders.

Course Contents

• Session 1. Launching the journey. Entering the strange world and looking into the mirror
  • Welcome to the course: what will we do, why, how and so what? • Organization of the course and logistics: norms and expectations, evaluation criteria and assessment process • Why holistic approach to learning is needed? • Why your lecturer is a learning facilitator? • What is the definition of the Sustainability Mindset? • The 4 Quadrants and the 12 Principles of the Sustainability Mindset • An individual passion project “E-Portfolio” Quadrant I. Ecological Worldview: what it is and why it matters? • Principle 1. Ecoliteracy • Building awareness of the planetary challenges: climate change and biodiversity loss • Complexity and meaning of existing interconnections to me • Principle 2. My contribution • My unintentional contributions to the global problems • Areas of control and influence to address the problems • Levels of maturity for sustainable behaviors Quadrant II. Systems Perspective: what it is and why does it matter? Principle 3. Long term thinking • My thinking habit and decision-making: short term vs. long term thinking • One strategy I could implement to help me think of the long term Principle 4. Both+And thinking • Rational thinking and logic: a current either/or situation you find yourself in • Personal ways of feeling and dealing with ambiguity and uncertainty • Both+And thinking to understand paradoxes and create inclusive solutions Management in response to global challenges • 17 UN’s Sustainable Development Goals & targets • ESG as a responsible investment framework
• Session 2. The moral philosophy of business
  Ethics • What is ethics and what relation does ethics have to business? Business • What is the purpose of business? • What is my role as a business leader? Core Values and Ethical Decision-Making • What are core values and how do they effect individual and organisational behaviour? • What is integrity and why is it the number one core value in Fortune 500 companies? Business Ethics and the Sponsors‘ Dilemma • Navigating ethical dilemmas by acting with integrity • Appreciating the impact of management authority on the ethical decision-making process
• Session 3. Me - others - the world
  Quadrant II. Systems Perspective: what it is and why it matters? • Principle 5. Flow in cycles • Economic linear growth models vs. circular ones • Natural capitalism and alternative models: circular economy, degrowth and well-being • Principle 6. Interconnectedness • Interconnectedness and interdependence vs. autonomy and independence Responsible Management • History of responsibility in management • Balancing and creation of stakeholder value • Stakeholder assessment and engagement
• Session 5. Me and nature, connecting the dots and ending the beginning
  Quadrant IV. Spiritual Intelligence: why do we need this and what do we want to achieve? • Principle 10. Oneness with Nature • Challenging the anthropocentric paradigm and “take-make-waste” model • Exploration of the self and nature relationship • Experience of oneness with nature and life satisfaction • Principle 11. Mindfulness • Slowing down as a response to modern hectic life • What does “being fully present” look like, feel like? • Learning contemplative practices: observing, noticing, and connecting with our feelings • Principle 12. Purpose • Self-reflection on what purpose means for us Purpose-driven business for the new world • New economic models where business is an agent for world benefit • B Corporations as purpose-driven businesses • Creating resilient local living communities
• Session 6. The UN Global Agenda 2030 and 17 SDGs
  • Informal introductions with visual aids • Students’ presentations of the team charters • Guided discussion based on the assigned video-material • What is a sustainable lifestyle (e.g. LOHAS, LOVAS, minimalism, no waste, vegan)? • Story-telling circle on making a pledge for changing a habit and finding a learning partner
• Session 9. Case-study “BioFoodLab”
  • The case-study: work in teams and discussion based on insights from the team work • Story-telling circle on developing professional management competencies in ethics, responsibility and sustainability
• Session 4. Exploring self and anchors of own identity
  Quadrant III. Emotional Intelligence: why do we need this and what do we want to achieve? • Principle 7. Creativity and innovation • Resilience in ancestral, aboriginal, and native wisdom generated by our right brain hemisphere • Art as an aesthetic experience of intuitive knowing • Biomimicry for innovation at the service of the greater good of the planet • Sustainable business models and innovations • The price of rational thinking produced mostly by our left brain hemisphere • Principle 8. Reflection • Speed as a precious value of our civilization • The value of reflection as a regular experiential activity • Principle 9. Self-Awareness • Values of our culture and paradigm we live in • Espoused values and values in action • Exploring and manifesting personal values, beliefs and assumptions Sustainable Management • Sustainable business models and innovations • Essential tools of sustainable management • Managing the triple bottom line

Assessment Elements

• Homework and informed participation
• Case-study “BioFoodLab”
  group assignment
• Book presentation “Soil, soul, society” by Kumar
  group assignment
• Reflections on the assigned videos and a podcast
  individual assignments
• E-Portfolio: final individual assignment and in-class presentation

Interim Assessment

• Interim assessment (1 module)
  0.2 * Book presentation “Soil, soul, society” by Kumar + 0.2 * Case-study “BioFoodLab” + 0.3 * E-Portfolio: final individual assignment and in-class presentation + 0.1 * Homework and informed participation + 0.2 * Reflections on the assigned videos and a podcast

Bibliography

Recommended Core Bibliography

• László Zsolnai. (2015). The Spiritual Dimension of Business Ethics and Sustainability Management. Springer.
• Primal leadership : realizing the power of emotional intelligence, Goleman, D., 2013
• Rick Bosman, Derk Loorbach, Jan Rotmans, & Roel van Raak. (2018). Carbon Lock-Out: Leading the Fossil Port of Rotterdam into Transition. https://doi.org/10.3390/su10072558
• Stakeholder theory and organizational ethics, Phillips, R., 2003
• The fifth discipline : the art and practice of the learning organization, Senge, P.M., 2006
• Экологический вызов и устойчивое развитие, Данилов-Данильян, В. И., 2000

Recommended Additional Bibliography

• Antonetti, P., & Maklan, S. (2014). Feelings that Make a Difference: How Guilt and Pride Convince Consumers of the Effectiveness of Sustainable Consumption Choices. Journal of Business Ethics, 124(1), 117-134
• Устойчивое развитие: методология и методики измерения : учеб. пособие, Бобылев, С. Н., 2011