BTM 5909 ETHICS

AND GLOBAL
CORPORATE
GOVERNANCE

TUTORIAL

BOOKLET

Chief Examiner/Lecturer:
Dr Loganathan Krishnan
Business Law & Taxation, School of Business,
Monash University Malaysia.
 This Tutorial Booklet is meant for students undertaking BTM5909 Ethics and Global Corporate Governance,
under the Master of International Business (MIB) programme.

The Tutorial Booklet provides Tutorial Questions for the weekly topics concerned.

You should always refer to the Moodle page for the pre-class, in-class and post-class activities, resources, readings
and quizzes.

The questions in this Tutorial Booklet are meant to prepare you for the in-semester assessments (100%).

An explanation of the headings used in this booklet:

Presentation Questions:

This booklet provides the case-studies and questions in advance of the tutorial. The questions are usually based
on the specific topic and case study of the week. You will be required to identify and discuss the ethical issues,
the relevant ethical theories and provide an ethical solution – based on the stakeholders’ interests, rights and
duties. For corporate governance questions, there will be a discussion on the issues, relevant corporate
governance codes and laws, and the application of those codes and laws in particular countries.

Further Reading/Resources:

Some of the further reading/resources are listed here. You must always refer to the Moodle page for the full
list. The textbook readings refer to the following recommended texts:

● Arnold, D. G., Beauchamp, Tom L., & Bowie, Norman E. (2020). Ethical theory and business (Tenth
edition.).
Link: https://monash.hosted.exlibrisgroup.com/permalink/f/n5t482/catau21431402150001751

● du, Plessis, Jean Jacques, et al. (2010). Principles of Contemporary Corporate Governance, Cambridge
University Press. ProQuest Ebook Central.
Link:
https://monash.hosted.exlibrisgroup.com/permalink/f/1p3deeb/TN_cdi_askewsholts_vlebooks_9780511
993879

Other texts:

● Arnold, D. & EBSCOhost. (2014). Ethical theory and business. (Ninth edition, Pearson
new international edition.).
Link: https://monash.hosted.exlibrisgroup.com/permalink/f/1jcftbk/catau51311215540001751

● Bowie, N. (2002). The Blackwell guide to business ethics (Blackwell philosophy guides).
Link:
https://monash.hosted.exlibrisgroup.com/permalink/f/n5t482/catau51217144080001751
 SCHEDULE

Week Topic Assessment Reading

1 Introduction to Ethics & Global Gini (1985)

Corporate Governance Chapter 1 Arnold et al

2 Ethical theory – relativism, Case study 1: Ford Pinto Chapter 1 Arnold et al

consequentialism & deontology Case study 2: Toyota
Case study 3: Volkswagen

3 Corporate social responsibility – Case study: Rana Plaza factory Chapter 5 Arnold et al
shareholder perspective fire
Group Presentations and Written
Answer (Case-Study) begin
4 Corporate social responsibility – Case study: Obesity and fast Chapter 5 Arnold et al
stakeholder perspective food

5 Global corporate governance – Case study 1: Australia Chapters 5, du Plessis

Australia & Malaysia Case study 2: Malaysia et al;

6 Global corporate governance – US & Case study 1: US Chapter 12, du Plessis

UK Case study 2: UK et al (pp 299 – 320)

7 Global corporate governance –Japan Case study 1: Japan Chapters 13 du Plessis

& China Case study 2: China et al
Individual Assignment
deadline

8 Human rights issues in international Case study: Sweatshops Chapters 9 Arnold et al

business – SDG 1, 3 & 16

9 The environment – SDG 13, 14 & 15 Case study 1: Samarco Mine Chapter 8 Arnold et al
disaster
Case study 2: Transboundary
haze

10 Ethical marketing and advertising – Case study: Fair trade products Chapter 7 Arnold et al
SDG 12

11 Human resource management Case study: The glass ceiling Chapters 4 Arnold et al
– SDG 5 & 10 Group Presentation (Case- Study)
deadline
12 Revision Final Assessment
 Week 1
Topic: Introduction to Ethics & Global Corporate Governance
Case method

Aims of this Tutorial:

● To familiarise yourself with ethics.

● To examine the nature of ethics in the context of international business.
● To learn the case-method perspective of learning ethics.

In-Class Tutorial Questions:

1. Who are you? Introduce yourself in the most honest possible way.

2. Think of an “ethical” or “moral” dilemma that you have faced in your life. Did you resolve it? How did
you try to resolve it?

3. Choose an ethical problem and answer the following questions:

(a) What is the problem?

(b) What are the factual issues involved?
(c) What are the ethical issues involved?
(d) What decision would you make?

Further Reading/Resources:

⮚ Gini, A. (1985). The Case Method: A Perspective. Journal of Business Ethics, 4(4), 351.

⮚ Chapter 1, Arnold et al

⮚ Check Moodle!

Notes
 Topic: Ethical theory – relativism, consequentialism & deontology
Case study: Automobile industry

Aims of this Tutorial:

● To identify and examine ethical issues or problems in a business context.

● To apply relevant ethical theories i.e., relativism, consequentialism and deontology to the issue(s)
identified in a specific business case-study.
● To critically evaluate the implications of applying the ethical theor(ies) to the issue(s) identified.

In-Class Tutorial Questions:

Read the Ford Pinto or Toyota or Volkswagen cases.

1. Using Gini’s case-method analysis, answer the following questions for any one of the above case-studies:
(a) What is the problem?
(b) What are the non-normative or factual issues involved?
(c) What are the normative or ethical issues involved?
(d) What are the alternatives available?
(e) What decision would you make?

2. Critique the above decision based on: the rights of the garment factory workers and the duties of the
garment factory owners.

Further Reading/Resources:

⮚ Chapter 1, Arnold et al

Notes
 Topic: Corporate social responsibility – shareholder perspective
Case study: Rana Plaza Factory Fire

Aims of this Tutorial:

● To identify and examine ethical issues and/or corporate social responsibility-related problems in a
business context.
● To apply the shareholder perspective to the issue(s) identified in a specific business case-study.
● To critically evaluate the implications of applying the corporate social responsibility shareholder
perspective to the issue(s) identified.

Presentation Questions:

Watch the report on the Rana Plaza factory fire.

1. Based on the video and your own research, answer the following questions:
(a) What are the key factual elements of the situation?
(b) What are the most significant ethical issues at stake?
(c) Based on the interests of shareholders, what are the main options available to the decision-maker?
(d) What among those options would you decide to adopt? Why?
(e) Based on your decision above, what is your ethical framework?

2. Critique the above decision based on: the rights of the garment factory workers and the duties of the
garment factory owners.

Further Reading/Resources:

⮚ Chapter 5, Arnold et al

Notes
 Topic: Corporate social responsibility – stakeholder perspective
Case study: Obesity and the fast-food industry

Aims of this Tutorial:

● To identify and examine ethical issues and/or corporate social responsibility-related problems in a
business context.
● To apply the stakeholder perspective to the issue(s) identified in a specific business case-study.
● To critically evaluate the implications of applying the corporate social responsibility stakeholder
perspective to the issue(s) identified.

Presentation Questions:

1. Based on the newspaper reports and your own research on obesity and fast food, answer the following
questions:
(a) What are the key factual elements of the situation?
(b) What are the most significant ethical issues at stake?
(c) Based on the interests of stakeholders, what are the main options available to the decision-maker?
(d) What among those options would you decide to adopt? Why?
(e) Based on your decision above, what is your ethical framework?

2. Critique the above decision, based on the interests of shareholders and the government.

Further Reading/Resources:

⮚ Chapter 5, Arnold et al

Notes
 Case study: Australia & Malaysia

Aims of this Tutorial:

● To identify and examine the role of the various stakeholders in upholding good corporate governance
practices in the Australian and Malaysian jurisdictions.
● To critically evaluate the impact of regulations and codes in corporate governance in a developed
country (Australia) and a developing country (Malaysia) in the Asia-Pacific region.

Presentation Questions:

Presenters may choose to do either question 1 or 2.

1. In the case of the class action over money-laundering against the Commonwealth Bank (CBA):
(a) summarize the case and indicate the alleged injuries caused.
(b) to what extent does the CBA’s failure:
(i) violate Australian law?
(ii) demonstrate a failure in corporate governance practice in Australia?

2. In the case of the corruption charges against 1 Malaysia Development Berhad (1MDB):
(a) summarize the case and indicate the alleged injuries caused.
(b) to what extent does the 1MDB’s failure:
(i) violate Malaysian law?
(ii) demonstrate a failure in corporate governance practice in Malaysia?

3. Critique the case presented in terms of the corporate governance regulations and codes in the respective
countries.

Further Reading/Resources:

⮚ Chapters 5, du Plessis et al

Notes
 Case study: United States & United Kingdom

Aims of this Tutorial:

● To identify and examine the role of the various stakeholders in upholding good corporate governance
practices in the US and UK jurisdictions.
● To critically evaluate the impact of regulations and codes in corporate governance in two
Anglo-American developed countries.

Presentation Questions:

Presenters may choose to do either question 1 or 2.

1. In the case of Enron:

(a) summarize the case and indicate the alleged injuries caused.
(b) to what extent does Enron’s failure:
(i) violate US law?
(ii) demonstrate a failure in corporate governance practice in the US?

2. In the case of Tesco:

(a) summarize the case and indicate the alleged injuries caused.
(b) to what extent does Tesco’s failure:
(i) violate UK law?
(ii) demonstrate a failure in corporate governance practice in the UK?

3. Critique the case presented in terms of the corporate governance regulations and codes in the respective
countries.

Further Reading/Resources:

⮚ Chapter 12, du Plessis et al (pp 299 – 320)

Notes
 Case study: Japan & China

Aims of this Tutorial:

● To identify and examine the role of the various stakeholders in upholding good corporate governance
practices in the Japanese and Chinese jurisdictions.
● To critically evaluate the impact of regulations and codes in corporate governance in a developed
country (Japan) and a developing country (China) in the East Asian region.

Presentation Questions:

Presenters may choose to do either question 1 or 2.

1. In the case of Japan Inc.:

(a) summarize one of the cases and indicate the alleged injuries caused.
(b) to what extent does the failure:
(i) violate Japanese law?
(ii) demonstrate a failure in corporate governance practice in Japan?

2. In the case of China’s milk scandal:

(a) summarize the case and indicate the alleged injuries caused.
(b) to what extent does the failure:
(i) violate Chinese law?
(ii) demonstrate a failure in corporate governance practice in China?

3. Critique the case presented in terms of the corporate governance regulations and codes in the respective
countries.

Further Reading/Resources:

⮚ Chapters 13, du Plessis et al

Notes
 Topic: Human rights issues in international business Case
study: Sweatshops

Aims of this Tutorial:

● To identify and examine ethical and human rights issues or problems in a business context.
● To apply relevant ethical theories and/or corporate social responsibility perspectives to the issue(s)
identified in a specific business case-study.
● To critically evaluate the implications of applying the theories and perspectives to the issue(s) identified.

Presentation Questions:

Read a case-study on sweatshops (e.g., Nike).

1. Answer the following questions:

a. How did the situation come about? What are the key presenting issues? Who are the key
individuals and groups affected by the situation, the stakeholders?
b. What are the most significant of the “presenting issues” – the one that might lie underneath it
all? And who are the core stakeholders involved in the case?
c. Are there conflicting interests with respect to this issue, and how basic are they?
d. Are there rights in conflict with interests or with other rights? Are some weightier than others?
e. Does duty come into the picture – and are there tensions with rights or interests? Can I
prioritize?

2. Critique the case, in terms of the conflicts between interests, rights and duties.

Further Reading/Resources:

⮚ Chapters 9, Arnold et al
⮚ SDG 1, 3 & 16

Notes
 Topic: The Environment Case
study: Samarco mine disaster

Aims of this Tutorial:

● To identify and examine ethical and environmental issues or problems in a business context.
● To apply relevant ethical theories and/or corporate social responsibility perspectives to the issue(s)
identified in a specific business case-study.
● To critically evaluate the implications of applying the theories and perspectives to the issue(s) identified.

Presentation Questions:

Read the case-study on the Samarco mine disaster or the transboundary haze.

1. Answer the following questions:

a. How did the situation come about? What are the key presenting issues? Who are the key individuals
and groups affected by the situation, the stakeholders?
b. What are the most significant of the “presenting issues” – the one that might lie underneath it all?
And who are the core stakeholders involved in the case?
c. Are there conflicting interests with respect to this issue, and how basic are they?
d. Are there rights in conflict with interests or with other rights? Are some weightier than others?
e. Does duty come into the picture – and are there tensions with rights or interests? Can I prioritize?

2. Critique the case, in terms of the conflicts between interests, rights and duties.

Further Reading/Resources:

⮚ Chapter 8, Arnold et al
⮚ SDG 13, 14 & 15

Notes
 Topic: Ethical marketing and advertising Case
study: Fair trade products

Aims of this Tutorial:

● To identify and examine ethical issues or problems in a marketing and advertising context.
● To apply relevant ethical theories to the issue(s) identified in a specific business case-study.
● To critically evaluate the implications of applying the theories and perspectives to the issue(s) identified.

Presentation Questions:

Read the case-study on Cafédirect.

1. Answer the following questions:

a. Are there conflicting interests with respect to this issue, and how basic are they?
b. Are there rights in conflict with interests or with other rights? Are some weightier than others?
c. Does duty come into the picture – and are there tensions with rights or interests? Can I prioritize?
d. Is character or virtue an issue in this case – habits that bring us to this point or that will be
reinforced later?
e. Which of the avenues predominates in my choice of options above, and can I give good reasons for
preferring the ethical priorities I have adopted in this case that are consistent with other such cases?
What would an imaginary jury of the four “voices” decide and why? What is my moral framework?

2. Critique the case, in terms of the conflicts between interests, rights, duties and character or virtue.

Further Reading/Resources:

⮚ Chapter 7, Arnold et al
⮚ SDG 12

Notes
 Topic: Human resource management Case
study: The glass ceiling

Aims of this Tutorial:

● To identify and examine human resources and/or labour issues or problems in a business context.
● To apply relevant HRM theories to the issue(s) identified in a specific business case-study.
● To critically evaluate the implications of applying the theories to the issue(s) identified.

Presentation Questions:

Read the two case-studies which are two decades apart.

1. Answer the following questions:

a. Are there conflicting interests with respect to this issue, and how basic are they?
b. Are there rights in conflict with interests or with other rights? Are some weightier than others?
c. Does duty come into the picture – and are there tensions with rights or interests? Can I prioritize?
d. Is character an issue in this case – habits that bring us to this point or that will be reinforced later?
e. What are the principal realistic options available to the decision maker(s) in this case, including
possible branching among sub-options – leading to a set of action plans?

2. Critique the case, in terms of the conflicts between interests, rights, duties and character or virtue.

Further Reading/Resources:

⮚ Chapters 4, Arnold et al
⮚ SDG 5 & 10

Notes
------End of Booklet-----