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Business in context

Ryan Fehr
Assistant Professor Michael G. Foster School of Business University of Washington, Seattle

Course Framework
Making Ethical Decisions
Context of business Business power Ethical decision-making (sessions 16) Topics

Managing Relationships
Ethical leadership Employees and customers Organizational cultures (sessions 711)
Not a Moral Person Hypocritical Leadership Unethical Leadership

Building Socially Responsible Systems


Business regulations/governance CSR and sustainability Globalization and MNCs (sessions 1221)

Teleology

Deontology Moral Management No Moral Management

Moral Person Ethical Leadership Moral Muteness

Symbols

Power Structures

Stockholders

Tools

Do it!

??

??

Stories & Formal Values & Myths Assumptions Structures Rituals & Routines Control Systems

Imprudent

Technology

Irresponsible
Governments Corporation Customers

Dont do it!

??

??

Ethics

Strategy
Communities Employee

Idyllic

Many forces influence and are influenced by business Business power produces business responsibility Think comprehensively to make optimal decisions

Be cognizant of and responsible for the ethical culture that you create for others Be mindful of stakeholder rights and interests

Organizations depend on stakeholders for their survival To navigate the business environment, organizations must know how to address their stakeholders needs

Key Points Principles

Critical Thinking Communication


Integrated Management Corporate Strategy

What are business, government, and society?


Business
Profit-making activity that provides products and services to satisfy human needs Wal-mart, Microsoft, small business, etc.

Government
Structures and processes in society that authoritatively make and apply policies and rules EPA, FDA, Congress, etc.

Society
A network of human relations composed of ideas, institutions, and material things Everything from our values to our natural resources

Four models of BGS relations


The Market Capitalism Model The Dominance Model

The Countervailing Forces Model

The Stakeholder Model

Did Apples response to the Foxconn incident address its stakeholders needs?

So what does dynamic mean?


Dynamic: marked by usually continuous and productive activity or change
What three hard truths does Shell think will impact its business model through 2050?

Scramble

Blueprint

How might each of these forces impact Shell in the long run? Do Blueprint and Scramble address them?

Inequality Represents the Gap Between the Rich and the Poor

So if everyones getting richer, everyone should be getting happier, right?

How might each of these forces impact Shell in the long run? Do Blueprint and Scramble address them?

Current business environment: Focus on the trends!


Government Structures and processes in society that authoritatively make and apply policies and rules Technology Technologies that influence and are used by business Economy Forces that influence market operations Culture Shared knowledge, values, norms, and customs Nature Ecological systems Law Legislation, litigation, and regulation

How has ExxonMobil experienced the influence of deep historical forces and the business environment since 1882?

Q &A
Are powerpoint slides posted online?
Yes, all the slides are posted on blackboard after each class

Should I read before class?


Yes, I recommend the reading the book first, then cases

Can you offer an alternative day for the final?


Im working on it. Assuming I can get a room for it, yes.

Do you have office hours?


I have an open door policy, but its usually easiest to just talk to me after class

What do you want us to know for tests?


The readings and lectures are fair game. I wont nitpick on small details, but you need to pay attention to all the key terms and concepts. Youll also get a review sheet for the midterm and final.