MM5001

Andika Putra
Pratama
BUSINESS ETHICS

Day 1
Capitalism
and Business
Pre-Class Questionnaire

https://forms.gle/ccMkaMznMjDNv7X26
Facilitator’s Profile
Andika Putra Pratama, PhD
Rutgers, the State University of New Jersey (USA)
2011-2015
Fulbright Doctoral Scholarship

AREAS OF INTEREST
Organizational Behavior
Organization Theory
Business Ethics
Cross-Cultural Management
What is business ethics?
Why “ethics” in
business?
Course Schedule – Business Ethics
YP61-A TOPICS
13:00 – 16:15
Day 1 (Jan 15, Capitalism and Business
Wed) Lecture, Debates, Case Discussion
Day 2 (Jan 22, Theories of Ethics and Ethical Dilemma
Wed) Online Lecture, Case Discussions
Day 3 (Jan 29, Ethical Decision Making
Wed) Discussion of Self-Assessment Results, Lecture
Feb 3, Mon Movie
Day 4 (Feb 5, Ethics in Management Functions
Wed) Presentation, Discussion
Course Schedule – Business Ethics
YP61-B TOPICS
08:00 – 11:15
Day 1 (Jan 15, Capitalism and Business
Wed) Lecture, Debates, Case Discussion
Day 2 (Jan 22, Theories of Ethics and Ethical Dilemma
Wed) Online Lecture, Case Discussions
Day 3 (Jan 29, Ethical Decision Making
Wed) Discussion of Self-Assessment Results, Lecture
Feb 3, Mon Movie
Day 4 (Feb 5, Ethics in Management Functions
Wed) Presentation, Discussion
Course Schedule – Business Ethics
YP61-C TOPICS
08:00 – 11:15
Day 1 (Jan 14, Capitalism and Business
Tue) Lecture, Debates, Case Discussion
Day 2 (Jan 21, Theories of Ethics and Ethical Dilemma
Tue) Online Lecture, Case Discussions
Day 3 (Jan 28, Ethical Decision Making
Tue) Discussion of Self-Assessment Results, Lecture
Feb 4, Tue Movie
Day 4 (Feb 11, Ethics in Management Functions
Tue) Presentation, Discussion
Grading – Business Ethics (25%)
• Individual Reflections
• Group Assignment + Peer Evaluation
- Ethics in Management Functions

Final Exam (25%)

• Ethics (Ethical Climate Project)
• Law
• Sustainability
Capitalism and
the Market
 A Capitalist Any society that relies heavily
Society on businesses to produce and
distribute goods and services
(Elias & Dees, 1997;
Harvard Business Review)

The Market “An economic system of

privately owned property in
(Heath, 2002) which the interaction of
individuals as buyers and
sellers coordinates what is
produced, how it is produced,
who produces it, and how the
goods are allocated” (p. 3-4)
Individual Self-Interest for Survival

CAPITAL
 The
Market
Capitalism

Individual

I have something that

you want-need and The Invisible
you don’t have Hand
Capitalism, the
Market, and
Organization
 Capitalism
The
Market

The
Organization
 The Market

Self-Employed vs. Employed

VS
Collaborate or Employ People
Make products or Purchase
Products

The Organization
Top 10 largest companies in the world by market value in 2019

https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-value/
Determining PRICE
As a subjective matter
Acquiring, Splitting, or Merging… WHY?
Capitalism and
Profit Maximization

To capitalize on To gain profit out

something = of something
Profit for the Self
Profit for the State
?
?
Profit for the Society
Countries are Capitalism Some
a relatively companies
recent Some Features are more
The creation of wealth
phenomenon “powerful”
Factors of Production
Ownership of Capital than countries

Power Dynamics to
Control Capitals

STATE VS
PRIVATE

CONTROL FREEDOM
TAX
 What are the
“resources” or
“capitals”?
What are the “resources” or “capitals”?

Image: unitportfolioearthresources.weebly.com
Image: centuryproductsllc.com
Airline Industry
Universities
 Image: globalgurus.org/

Image: ciitourismfest.com/

Image: www.wired.com/
Individual Need for Survival

How
Much?

CAPITAL
US Europe

Matten, D., & Moon, J. (2008). “Implicit” and

“explicit” CSR: A conceptual framework for a
comparative understanding of corporate social
responsibility. Academy of management
Review, 33(2), 404-424.
https://www.ted.com/talks/dambisa_moyo_is_china
_the_new_idol_for_emerging_economies
Is CAPITALISM a good thing or a bad
thing?

Capitalism, Human
Freedom or Agency,
and the Invisible Hand
 Human Agency

Image: thomas-rainbowdiary.blogspot.com
 DEBATE

On Capital
MOTION 1
“Any form of resources can be
capitalized.”
https://forms.gle/wLb23TAnNcXP3bMV7
Case: Privatization of Water
https://www.youtube.com/watch?v=7iGj4GpAbTM&feature=
youtu.be

?
Case: Capitalization of Religion
https://www.youtube.com/watch?v=Q_rZraNQ-YU

?
 Alternatives to
Profit Maximization
Putting customers first
Providing meaningful employment
Balancing multiple stakeholders
Serving public good

(Elias & Dees, 1997;

Harvard Business Review)
Business Ethics
What is the appropriate role for
business to play in a capitalist
society?
(Elias & Dees, 1997; HBR)
B
R
E
A
K
(15’)
A Case on GOJEK
Reading 1
https://theconversation.com/the-limits-of-silicon-valley-how-
indonesias-gojek-is-beating-uber-69286

Reading 2
https://theconversation.com/drivers-stories-reveal-how-
exploitation-occurs-in-gojek-grab-and-uber-82689

What are some of the ethical concerns in the

Gojek’s Case?
 DEBATE

Religion
MOTION 2
“Religion does not support
capitalism.”
https://forms.gle/wLb23TAnNcXP3bMV7
Capitalism, Work
and Religion
 DEBATE

Freedom
MOTION 3
“Capitalism encourages
freedom.”
https://forms.gle/wLb23TAnNcXP3bMV7
Capitalism and
Freedom
 The
Market
Capitalism

Individual

I have something that

you want-need and The Invisible
you don’t have Hand
FOOD FOR THOUGHT

When we work for a company or an

organization, are we owned by it as a
commodity? Are we still “free”
individuals? Can companies fire us
the way they want or need to?
Case: Disaster Capitalism
https://www.theguardian.com/us-
news/2017/jul/06/naomi-klein-how-power-
profits-from-disaster

“Disease may sicken and kill us, but

?
benefits hospitals, drug companies,
insurers and those who invest in them”
https://www.thestreet.com/story/12789663/1/how-
they-and-you-make-money-disasters.html
 Next Meeting
STUDY
“Theories of Ethics” (Voiced PPT)

READ
Micewsky & Troy (2007), “Business Ethics, Deontologically
Revisited” (Journal of Business Ethics)
 Next Meeting
PREPARE
A question about any business or management practice
that you have observed.