IS 641 FALL 2010 GSIS-EWU

CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY

Instructor: Class Hours: Office: Office Hours: E-mail: Prof. Young-sook Nam Thursday 12:30 am - 3:15 pm (IEB #1001) IEB #805 (Tel. 3277-6672) / ECC#335 (Tel. 3277-3602) Thursday 3:30 - 4:30 pm or by appointment ysnam@ewha.ac.kr

COURSE DESCRIPTION There have been increasing efforts to link corporate social responsibility (CSR) with international development. Large corporations are increasingly pressed to address global problems; and CSR is seen as a useful tool to foster development and eradicate poverty in less-developed parts of the world. If the business of business is business, why should corporations be involved in development? Isnt development the job of governments and international organizations such as the UN? Can CSR pave the way for development? The purpose of this course is to examine and evaluate what corporations are doing and could do to address the global challenge of development and poverty alleviation. It takes an interdisciplinary approach drawn from business, economics, development studies, ethics and law. The course will examine both the theoretical perspectives and the real-world cases of CSR and development. We will first study the concept of corporation, corporate governance, and CSR and explore why and how the private sector, through CSR, can do to meet the global challenges. We will then study various topics including codes of conduct for multinational corporations, global initiatives on CSR, CSR in Korea, public-private partnership, and social enterprises. This course is in a seminar format and students are expected to participate actively in class discussions and activities. It is not a standard international business (IB) class and students who would be interested in taking business school-type corporate governance, CSR or business ethics are advised not to take this class. Students without some background in development co-operation might have comparative disadvantages and will need to make individual efforts to update themselves on the readings in the field. This class is not open to students in their first semester. All students should get instructors consent before final registration. REQUIREMENTS AND EVALUATION The grading of students overall performance will be made based on the following formula: Mid-term exam: 20% Final exam: 20% Research paper: 40%
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 Student-led discussion and in-class presentation:10% Weekly assignments and attendance: 10% COURSE MATERIALS The following books will be used throughout the class as required reading. Other required readings and part of recommended readings will be made available in a course reader. Additional reading materials and a list of useful websites will be posted on the courses eclass website. Textbooks Michael Hopkins, Corporate Social Responsibility and International Development- Is Business the Solution? (Earthscan, 2008) Michael Kinsley, Conor Clarke. Creative Capitalism: A Conversation with Bill Gates, Warren Buffett, and Other Economic Leaders. (New York: Simon & Schuster. 2008)

CLASS ORGANIZATION AT A GLANCE

Topics Introduction and overview of the course Understanding of Corporation and Business Ethics Corporate Governance and Corporate Social Responsibilities No Class(Thanksgiving Holiday) Corporate Social Responsibilities and International Development Multinational Corporations and Codes of Conducts Group Debates on CSR(*Creative Capitalism) Mid-term exam No Class (Professional Leadership Workshop period) Global Initiatives CSR in Korea (**Guest Lecture Session) Sustainable Business Model: Public-Private Partnership Sustainable Business Model: Social Enterprises Group Presentation Final exam Key dates

Week 1 (9/2) Week 2 (9/9) Week 3 (9/16) Week 4 (9/23) Week 5 (9/30) Week 6 (10/7) Week 7 (10/14) Week 8 (10/21) Week 9 (10/28) Week 10 (11/4) Week 11 (11/11) Week 12 (11/18) Week 13 (11/25) Week 14 (12/2) Week 15 (12/9)

Research topics

Research topics

Paper due 12/11

CLASS SCHEDULE AND READINGS [Readings marked with (*) are available in the course reader]

Week 1 (9/2) Introduction and overview of the course

PART I: CORPORATIONS, CSR AND DEVELOPMENT Week 2 (9/9) Understanding of Corporation and Business Ethics REQUIRED READINGS: Peter F. Drucker, The Concept of the Corporation. (The Mentor Executive Library, 1964) Chapters 3(p. 114-138) & 4(p. 174-236) (*). Milton Friedman, The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine, September 13, 1970(*). O.C. Ferrell, John Fraedrich, Linda Ferrell, Business Ethics-Ethical Decision Making and Cases. (Houghton Mifflin Company, 2005) Chapters 1-3 (p. 2-71), Martha Stewart: Insider-Trading Scandal(p.300-306), Microsoft: Antitrust Battles(legal ethical issues_monopoly) (p.335-342), Ben & Jerrys Homemade: Managing Social Responsibility and Growth(p.358-363) (*). ADDITIONAL READINGS: Tom L. Beauchamp, Norman Bowie, Denis Arnold, Ethical Theory and Business (8th Edition) (Pearson Prentice Hall, 2008) Merck and River Blindness (101-102p), eBay: Spider at the Action(p.504-505), Wal-Mart: Should Wal-Mart Do More?: A Case Study in Global Supply Chain Ethics (p. 653-656) (*). Week 3 (9/16) Corporate Governance and Corporate Social Responsibilities REQUIRED READINGS: Kenneth A. Kim, John R. Nofsinger, Corporate Governance. (Pearson Prentice Hall, 2004) Chapters 1-7. (p. 1-68) (*). Peter F. Drucker, Post-Capitalist Society. (HarperBusiness, 1993) Chapter 5. (p. 97-109) (*). Robert B. Reich, Supercapitalism. (Alfred A. Knope, 2007) Chapter 5. (p.168-208) (*). ADDITIONAL READINGS: OECD, OECD Principles of Corporate Governance. 2004. (*). Week 4 (9/23) No class (Chuseok Holiday) Week 5 (9/30) Corporate Social Responsibilities and International Development REQUIRED READINGS: Hopkins, Chapters 1-4, 7-9. ADDITIONAL READINGS: Peter Utting, Corporate Responsibility and the Movement of Business. Development in Practice, Vol. 15, No. 3/4 (Jun., 2005), pp. 375-388. (*).

Week 6 (10/7) Multinational Corporations and Codes of Conducts REQUIRED READINGS: O.C. Ferrell, John Fraedrich, Linda Ferrell, Business Ethics-Ethical Decision Making and Cases. (Houghton Mifflin Company, 2005) Chapter 10. (p. 214-245) (*). OECD, Guidelines for Multinational Enterprises, p. 19-27(*). ILO, Corporate Codes of Conduct (*). ADDITIONAL READINGS: OECD, Guidelines for Multinational Enterprises, 2008. (*). Kathryn Sikkink, Codes of Conduct for Transnational Corporations: The Case of the WHO/UNICEF Code. International Organization, Vol. 40, No. 4 (Autumn, 1986), pp. 815-840 (*). Week 7 (10/14) Group Debates on CSR REQUIRED READINGS: Kinsley, Clarke. Hopkins, Chapter 5-6. Debate Topic: The Most Important Goal of the Corporation in Todays World is to Serve the Values of Society Week 8 (10/21) Mid-term Exam Week 9 (10/28) No class (Professional Leadership Workshop period)

PART II: SUSTAINABLE BUSINESS MODELS Week 10 (11/4) Global Initiatives REQUIRED READINGS: Chen, Stephen, Petra Bouvain. Is Corporate Responsibility Converging? A Comparison of Corporate Responsibility Reporting in the USA, UK, Australia, and Germany. Journal of business ethics, Vol. 87 (2009), p. 299-317(*). Global Reporting Initiative, Past, present, future: all you need to know about the G3 Guidelines. p. 1-25(*). ISO Advisory Group on Social Responsibility, Working Report on Social Responsibility. p. 49-81(*). ADDITIONAL READINGS: ISO Advisory Group on Social Responsibility, Working Report on Social Responsibility. 2004. (*). United Nations Global Compact, Making the Connection: The GRI Guidelines and the UNGC Communication on Progress. 2007. Available at http://www.globalreporting.org/NR/rdonlyres/A72A4645-B6FA-40B5A1EE-A64E6F0CFBB2/0/260607_COP_MTC.PDF

Week 11 (11/11) CSR in Korea (*Guest Lecture Session*) RECOMMENDED READINGS: Doing good: Business and the sustainability challenge, The Economist Intelligence Unit. 2008. Available at http://a330.g.akamai.net/7/330/25828/20080208181823/graphics.eiu.com/upload/Sustain ability_allsponsors.pdf.

Week 12 (11/18) Sustainable Business Model-1: Public-Private Partnership REQUIRED READINGS: Hopkins, Chapter 10 City Water Tanzania (ch9) in Jost Hamschmidt (ed) Case Studies in Sustainability Management and Strategy, Greenleaf Publishing, 2007 UNDP, Sharing Innovative Experiences-Examples of Successful Public-private Partnerships (2008)(*). (HealthCare: Mali (p. 21-29)/ Power: Gabon (p. 33-40), Guatemala (p. 41-48)/ Transportation: Srilanka (p.93-100), South Africa and Mozambique (p. 113-122), India (p. 123-128)) ADDITIONAL READINGS: E. R. Yescombe, Public-private partnerships: principles of policy and finance (Elasevier, 2007) Chapters 1-2 (p. 1-28) (*).

Week 13 (11/25) Sustainable Business Model-2: Social Enterprises REQUIRED READINGS: Hopkins, Chapters 11. Carlo Borzaga, The emergence of social enterprise, Routledge, 2004. Chapters 1&19(*). Ross Mallick. Implementing and Evaluating Microcredit in Bangladesh. Development in Practice, Vol. 12, No. 2 (May, 2002), pp. 153-163 (*). ADDITIONAL READINGS: What is Social Enterprise http://www.se-alliance.org/what_is_social_enterprise.ppt Week 14 (12/2) Research Paper Presentation Week 15 (12/9) Final exam