Recently held Events

Integrity and Ethics Education-7/15/2009
Date: 15 July 2009

Venue: UN Conference Hall

Guest Speaker: Vivienne Wildes, Professor at Penn State University, Pennsylvania, United States

Participants: About 22 participants attended the discussion on ‘Integrity and Ethics Education’. Participants consisted of members from the Department of Information and Media, Anti-Corruption Committee, International organizations, the Media, and Students.

Vivienne Wildes, provided an insight to a curriculum written by her http://www.solutionexchange-un.net.bt/Docs/res28070901.pdf (114 KB), for a course titled ‘Ethics and Corporate Social Responsibility for University Students’, and also discussed with members, the importance of ethical thinking and ethics education. Click the link for the presentation http://www.solutionexchange-un.net.bt/Docs/res28070902.pdf (3 MB)

Ethics and the Individual – Personal ways of thinking about Business Ethics

Ethics has been under discussion for thousands of years, and ethical awareness is essential to anticipate and address problems as they arrive and that are related to corporate responsibility. Ethics is contextualized in a variety of frameworks: for individuals in both their private and professional lives; and, in a larger context for organizations, society, and the increasing number of global venues where business operates. Discourse on ethics helps define the corporation’s role in discerning the line between the individual, the organization, and the community (local and global) for business. The exchange of ideas about ethics, to include identifying principles and values helps define a moral compass that can result in ethical leadership.

Ethics and the Organization – Organizational Influences on Employee Decision-Making

Beginning in the 1990’s, Corporate Social Responsibility (CSR) has become the catchall term for an ethical values approach to doing business. Vivienne provided that, in recent years the “S” has been dropped from the acronym with a more focused approach toward the “C” and “R”. Corporate Responsibility expands the definition to include aspects such as accountability, transparency of action(s), and, of course, the global perspective. The “S” in CSR has an historical perspective and requires some definition. Social Responsibility has been around almost as long as there have been companies (Henriques, 2003). In effect, the idea of corporate responsibility has been around for decades. The cry for responsible corporate action, as we know it today, emerged in the early 1980s as a result of globalization. To this day, dialogues of what constitutes corporate social responsibility continues in just about every boardroom and unifying body (i.e. United Nations, World Trade Organization, World Bank), yet no absolute definition has been agreed upon (Wildes, 2007).

Ethics, Organizations, and Society

In this aspect, various questions posed by Vivienne included: Is the market an “actor” in society? Does the response to this question require laws, outside controls, regulations and ramifications by which the company or governing body must operate within society? Where does the obligation and, thereby, the responsibility for a company begin; and, where does it end?

Two major factors portend causal effect in light of globalization as we know it today and are a direct result of the corporate enterprise in society. The first is free trade. Responsible business and government, of course, argue for the alternative: fair trade.

The second factor that affects virtually the entire population on the planet is deterriolization. Deterriolization results in a loss of boundaries: economic, linguistic, financial, cultural, and physical. Globalization, henceforth, is not considered a process, but rather a social condition. In tandem free trade and deterriolization impact contemporary real life pressures such as global warming, carbon emission, migrant workers, and immigration. Of course, all subsidiary issues, separately and combined, are in themselves as equally tedious and complex as the two overarching factors mentioned above. Considering the intricacies, you can imagine the robust starting point by which to discuss the role of ethics, organizations and society in a classroom setting.

So, how does corporate social responsibility move from theory into practice? What is the purpose? What are the concerns? What influences drive or design an ethical and responsible corporate agenda? Companies that practice corporate responsibility often adhere to the Triple Bottom Line which is based in three areas: financial, environment, society. That business is responsible to multi-stakeholder concerns, including internal concerns such as product quality and human resources, rests on the scheme – the very idea-- of sustainability. Companies need to produce a profit in order to exist. Yet, corporate responsibility in action requires companies to set aside some of that profit in order to manage the business in an ethically responsible way.

Issues surrounding Corporate Social Responsibility

Environment Management: Pollution, Waste, Water accessibility, Global warming, Resource & energy use, Industrial and agriculture, Recycling, Transportation

Consumer Rights/Marketplace Activities: Truth in advertising, Transparency, Labeling, Ethical competition, supply-chain management, animal rights, human rights, Fair trade

Labour Issues/Work Rights & Welfare: Health care, Child labor, Skill development & training, Keeping people employed, Diversity, Equality, Fair remuneration, Work-life balance, Health, Safety

Government Role: Military regimes, Corruption, Graft, Human rights

Philanthropy/Community Engagement: Financial or goods donations, volunteering, neighborhood activities

Stakeholder Engagement: Transparency, reporting, safety issues

Legal Compliance: Corporate governance, Ethical business practices; Ramifications

Vivienne noted that the sheer extent of these issues, of course, prompts further questions as to where companies’ responsibilities begin and where they end.

Ethical Leadership

Leaders’ ethical character and ethical reasoning skills inspire processes and traits of corporate responsibility ad good governance. Taking the lead, ethically, means standing up for what is ethical, demonstrating, through personal example, in ways that inspire others to ethical action, and giving voice to ethical concerns. Ethical reasoning and ethics sensitivity requires a top down approach in order to infuse the entire organization through ‘ethical leadership’.
Vivienne shared that one very serious problem that continues to occur regarding the concept of Corporate Social Responsibility is company’s mis-use of the terminology for a publicity stunt. Practically every multinational company (MNC) touts CSR as a practice, yet practical evidence, accountability, and transparency is lacking. An opaque claim to practice CSR and, furthermore, the co-opting of the very terminology diminishes the concepts. Much work needs to be done to stay ahead of what has become a chess game between those who genuinely understand the concepts and those who diminish CSR to trend status.

Conclusion

Industry and political agendas operate in a global environment. Considering the reality of how business operates today in a globalized market, teachers owe students and insight into contemporary issues surrounding corporate responsibility.

Education and familiarization of the ethical considerations make a difference on both individual and mass levels. One way to illustrate and determine the risks and choices is with the case study. Case analysis helps students arrive at a fuller understanding of their own, personal, role in ways such as buying decisions. When students see themselves as decision-makers they can realize their personal and ultimate impact on business and their role in a global economy. It is hoped that this outline for a curriculum on ethics and corporate social responsibility will help teachers, students, and leaders to better appreciate the need for ethics and corporate responsibility in their future business decisions. The course proposed provides more questions than answers – this is the nature of any ongoing, global dialogue. Asking questions, offering an array of possible solutions, and discussion about such solutions is a step forward to recognize and to manage ethical issues as they arise.

Members’ comments

Members provided that Integrity and Ethics education in Bhutan is important to curb corruption, because one of the main causes of corruption is the decreasing moral values of individuals in the country. They added that in order to make such a curriculum work, there has to be support from Top-Down, people at the top have to empower people to teach this curriculum and provide support; as well as Bottom-Up, so that there is an infiltration both ways.

However, members also questioned the practicality of having Integrity and Ethics education in schools, as ethics education in schools was already present with a separate subject called Value Education, as well as inculcated in the other academic subjects. They added that ethics education needs to be a responsibility carried out by teachers, parents, and everyone around.

It was highlighted that organizations working on improving integrity and ethics in the country, should not underestimate the need for any undertaking they are working on. They pointed out that Bhutan is at its early stages regarding opportunities to be exposed to so many external forces, and has the advantage of a unified language, and culture.

Members suggested that ethics should be developed at a young age, and advocated through stories of honesty and integrity. For enhancing ethics, members stressed that it is more important to keep the dialogue alive whether it is among children or adults. Generating more dialogue, and having deeper discussions within the society, will assure that people do not gradually disregard ethics in their lives.

One of the main challenges that Bhutan will face in introducing such a curriculum in schools is the lack of experienced people in the field, members provided. Members concluded that schools could have one or two courses, or workshops rather than having a separate curriculum for ethics in schools.
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