REPORT INDIVIDUAL

Full name: Hoàng Khánh Huyền

Student’s ID: 20070194
Subject: BOM
Class: INS201905
Lecturer: ThS Nguyen Thi Kim Duyen

Ha Noi, October 10, 2022.

Table of Contents
A. SUMMARY......................................................................................................2
I. What is Mangaerial Ethics?.........................................................................2
II. Ethical Management today.........................................................................3
III. Ethical dilemmas: What would you do?..................................................8
IV. Frameworks for ethical decision making................................................9
V. The individual manager and ethical choices............................................10
VI. New manager Self-test: Are you a giver or taker.................................12
VII. What is corporate social responsibility.................................................12
VIII. Evaluating Corporate social responsibility............................................15
IX. Managing company ethics and social responsibility............................16
B. Case study.....................................................................................................17
C. Conclusion.....................................................................................................25
D. References....................................................................................................26
A. SUMMARY
I. What is Mangaerial Ethics?
o Ethics is the code of moral principles and values that govern
the behaviours of a person or group with respect to what is
right or wrong.

THERE IS NO RIGHT WAY TO DO A WRONG THING

 Ethics sets standards as to what is good or bad in
conduct and decision making.
 Ethical issue is present in a situation when the actions
of a person or organization may harm or benefit
others.
 Managers sometimes need courage to stand up and do
the right thing.
 Ethics is about making choices.
o Human behavior falls into three categories
  Domain of codified law – values and standards are
written into the legal system and enforceable in the
courts.
 Lawmakers set rules which people and
corporations must follow in a certain ways
(obtaining licenses for driving, paying
corporate tax and so on).
 Domain of ethics – behaviors that are control by
outside.
 Domain of free choice – is at the opposite end of the
scale and pertains to behavior abour which the law
has no say and for which an individual or
organization enjoys complete freedom.
 For example, you ask yourself where to buy a
new suit for the job interview and the
government has nothing to do with your
decision.
o No specific law yet it does have standards of conduct based
on shared principles and values about moral conduct that
guide an individual or company.
 For instance, it is not illegal for a CEO to have an
affair with his female secretary, but this action
violated the company's code of ethical conduct, thus
he must be replaced.
o Recognize the domain of ethics and accept moral values as a
powerful force for good that can regulate behaviors both
inside and outside organizations.

- The importance of ethics in the business world

Why should companies behave ethically?
  The top-ranked reason is “ to protect a company’s brand and
reputation,” closely followed by the desire to “do the right
thing”.
II. Ethical Management today
o Ethical Management Today
 Managers and organizations engage in unethical
behavior for any number of reasons, such as personal
ego, greed, irresponsibility, lack of moral conscience
or pressures to increase profits or appear successful.
Just because they are not breaking the law doesn’t
necessarily mean that they are being ethical.
 For example (1): Facebook harvesting users'
data without their consent. In total, the
Facebook information of up to 87 million
people - mostly in the US - may have been
improperly shared with Cambridge Analytica.

 Managers carry a tremendous responsibility for

setting the ethical cilmate in an organization and can
act as role models for ethical behavior.

 There are four primary ways in which managers can

act to promote a climate – in which everyone
behaves in an ethical and social and socially
responsible way.
 Honesty and integrity
 Communicate and enforce ethical standards
through their behavior
 Fair in their decisions and the distribution of
rewards
 Show kindness and concern for others
 In today’s environment, an overemphasic on
pleasing shareholders can cause some managers to
behave unethically toward customers, employees,
and broader society.
 Toward Customers
 False or deceptive sales
  Submitting misleading invoices
 Fabricating product qualiry data
 Toward Employees
 Discriminating against employees
 Creating a hostile work environment
 Violating health and safety rules
 Toward Finaciers
 Falsifying finacial reports
 Breaching database controls
 Using confidential information
 Toward Suppliers
 Accepting favors or kickbacks
 Violating contract terms
 Paying without accurate records or
invoice
 Toward Society
 Violating environmental standards
 Exposing public to safety risks
 Violating international human rights
 Managers are under enormous pressure to meet
short term earnings goals
 Mose executive compensation plans include hefty
stock-based incentives, a practice that sometimes
encourages managers to do whatever will increase
the share price
o For examples
 Apple
 Introducing Apple (Rawilson 2016)
 Founded by Steve Jobs in 1976
 CEO: Tim Cook
 Multinational technology company
 Innovative consumer electronics
 Apple’s Corporate Social Responsibility
commitments
 Supporting an eco-friendly
environment ( recycling phones)
 Safe equipment for Apple’s engineers
 Providing training and classes
 Conducting interviews to prevent
workplace bullying
 Minimized greenhouse gas emissions
(using energy efficient materials)
 Recyclable packaging
 Apple’s Corporate Social Resposibility
failures (Urakami 2012)
 Manufactures of Apple are from
China, whom are constantly facing
healthissues that are caused by
pollution and unsafe working
conditions.
 8,000 workers were put to work to
manufacture over 10,000 iPhone’s a
day.
 Workers were given onlya cup of tea
and a biscuitfor a 12 hourworking
day.
 Now (Harris 2013)
 In 2012 Apple had to introduce labor
reform regulations for its
manufactures due to public pressure
over conditions in its factories
stemming from a comprehensive
report from the Fair Labor
Association.
  Since then, Apple has flourished
until now. Apple's product lines
seem to have become a part of our
lives, which can be named as:
iPhone, Apple Watch, AirPods,
MacBook, iMac,...
o The business case for ethics and social responsibility
 Ethics and social responsilbility are important
business issues.
 The connection between ethics and finacial
performance has been widely debated.
 Intergrity and trust are essential elements in
sustaining successful and profitable business
relationship.
III. Ethical dilemmas: What would you do?
o Ethical dilemma is moral situation where a choice has to be
made between two equally undersirable alternatives.
o Ethical dilemma: arises in a situation concerning right or
wrong when values are in conflict
 Right or wrong cannot be clearly defined.
o Ethical issues can be exceedingly complex and people may
hold widely divergent views about the most ethically
appropriate or inappropriate actions related to a situation.
o The individual who must make an ethical choice in an
organization is the moral agent.
- THE TROLLEY DILEMMA – WHAT WOULD YOU DO?
Problem 1: Do you sacrifice one person to save five?

In my opinion: When receiving such a question, really the first

thought that came to my mind was to pull the lever to save 5
people. However, if the other worker is an acquaintance or
relative of mine, I am ready to save them.

Problem 2: Would you push the man on to the tracks,

sacrificing him in order to stop the trolley and thereby saving
five others?
 In my opinion: In this case, I definitely don't push him to the
rails, because if I do, I'm directly killing people.
 Managers also face the same difficulty
IV. Frameworks for ethical decision making
o Most ethical dilemmas involve conflict between needs of
the part and whole
 Individual versus the organization
 Organization versus society as a whole
o Sometimes ethical decisions entail a conflict between two
groups.
o Managers benefit from a normative strategy – one based
on norms and values to guide their decision making.
 Uses several approaches to describe values for
guiding ethical decision making
o Five approaches that are relevant to managers:
 Utilitarian approach: a method of ethical decision
making saying that the ethical choice is the one that
produces the greatest good for the greatest
number.
 Individualism aproach: contends that acts are
moral when they promote the individuals best long
term interests.
 In theory, with everyone pursuing self-
direction, the greater good is ultimately
served because people learn to accommodate
each other in their own long-term interest.
 Moral rights approach: asserts that human beings
have fundamental rights and liberties that cannot be
taken away by an individual’s decision.
 Justice approach: holds that moral decision must be
based on standards of equity, fairness, and
impartiality.
  Practical approach: sidesteps debates about what is
right, good, or just and bases decisions on prevailing
standards of the profession and the larger society,
taking the interests of all stakeholders into account.
V. The individual manager and ethical choices
 Individuals
- Personal needs, family influence, and religious background
shape individuals, for example:
+ Personal needs: Fair wages, health and well-being, security
and contribution
+ Family: to be independent, people-oriented, critical thinking,..
+ Religious background: muslim women have to were a hijab.
Buddhist eat vegetarian on full moon.
Individuals bring their own personalities and traits to
organizations
+Extrovert
+Introvert
+Loyal
+Openness
+Overview
+Neuroticism
 As a manager, you should
+ Get familiar with your employees
+Incorporate personality education in your management
+ Learn how different personality communicate
+ Create a work environment that allow different personalities
to thrive
With ego, confidence, independence, knowledge about your
employees may enable you to make ethical choices
  Three levels of moral development

 Preconventional
 Act in own interests
 External rewards and punishments
 Obey authority to avoid detrimental personal
consequences
 Conventional
 Lives up to expectations of others
 Upholds laws
 Fulls duties and obligations of social
system
 Postconvential
 Balances concern for individual with
concern for common good
 Aware that people hold different values
 Seeks creative solutions to ethical
dilemmas
 Follow internal values
VI. New manager Self-test: Are you a giver or taker
GIVERS TAKERS
- Other- focused - Self-focused
- Whenever others need - Help others strategically
- The benefits to others exceed the - The benefits to themselves
personal costs outweigh the personal costs

VII. What is corporate social responsibility

 An obligation of the organization to act in ways that
serve both its own interest and the interest of its many
external publics
 Distinguishing right from wrong; doing right
 Good corporate citizenship
 Make choices that contribute to society as well as the
organization
- Organizational Stakeholders
 A stakeholder is any group or person within or outside
- Examples of Corporate Social Responsibility
CSR programs vary in scope, but a few examples might
include:
 Giving to nonprofit groups, such as local food banks, by
supplying volunteers or through monetary donations
 Offering job-training programs for those in need
 Pledging to ensure diversity in the workforce
 Focusing on shrinking the company’s carbon footprint
through improved supply chain efficiency
 For example: Starbucks
 Starbucks is an international coffee company, with
over 20,000 stores in over 60 countries to date.
 Just five years ago, the company was doing poorly
- The green movement
 Going green is a new business imperative
 Shifting social attitudes
 New government policies
 Climate changes
 IT quickly spreads the negative decisions of corporations
- Sustainability
 Economic development that generates wealth and meets
the needs of the current population while preserving the
environment for the needs of future generation.
 The three Ps:
 People
 Planet
 Profit
VIII. Evaluating Corporate social responsibility
The CSR pyramid holds that firms should engage in decisions,
actions, policies and practices that simultaneously fulfill the four
component parts.
IX. Managing company ethics and social responsibility
 An ethical organization
 Management is responsible for creating and
sustaining conditions in which people are likely to
behave themselves
 The ethical organization
1. Ethical leadership
2. Codes of ethics
3. Ethics committee
4. Chief ethics officer
5. Ethics hotlines
6. Ethics training
7. Support for whistle-blower
 A code of ethics sets out an organization’s ethical
guidelines and best practices to follow for honesty, integrity,
and professionalism.
 For members of an organization, violating the code of
ethics can result in sanctions including termination.
 Ethical structures represent the various systems, positions
and programs a company can undertake to implement ethical
behavior.
 1. An ethics committee
2. Achief ethics officer
3. Ethics training programs
 A whistleblower is anyone who has and reports
insider knowledge of illegal activities occurring in an
organization: bribery or not paying taxes,..
 Whistleblowers play a key role in cleaning up a
company’s finacial and corporate culture, and even
help them achieve profitability goals.

B. Case study
I. Minamata diseases
1. Review
- Minamata disease, a neurological disease caused by mercury
poisoning, is the biggest consequence of the Minamata disaster,
causing weak muscles, trembling limbs, loss of balance, gradual
loss of hearing ability leading to deafness, difficulty speaking,
reduced cognition, memory loss. Severe illness can lead to
insanity, paralysis, coma, and eventual death within weeks of
the onset of the first symptoms. Minamata also affects the fetus
in the womb, causing the child to be born with cerebral palsy,
birth defects, and convulsions of limbs.
A mother bathes her child with a deformity caused by mercury poisoning.

- Minamata disease was confirmed as a disease in 1956,

becoming the first human disease caused by the influence of
contaminated plants and animals in the environment. To date,
there are no specific statistics on the number of people affected
by Minamata, however, according to the Japanese government's
records, as of 2001 there were 2,265 people infected with
Minamata disease, of which 1,784 people died. More than
10,000 other affected victims have received damages from the
Chisso Corporation. According to a Reuters source, more than
20,000 other affected people are still waiting for compensation
from Chisso.
- From the early 1950s, symptoms of mercury poisoning began to
show more frequently. The first was the inexplicable local
animal and bird fatalities. The cats all went insane at the same
time, howled pitifully, lost control, and dove into the water to
perish. Then, simultaneously among many residents of the
neighborhood, odd sickness symptoms including paralysis of
limbs and lips and loss of eyesight and hearing began to
manifest. Four patients were admitted to the hospital in May
1956 due to a high temperature, convulsions, psychosis, loss of
consciousness, coma, and ultimately death. A short time
afterwards, dozens of additional persons succumbed to the same
illnesses and died. The area's hospital recognized it as a
poisoning outbreak and has since been referred to as Minamata.
2. Reflection
a. Actions of the Japanese government
- Although 2,273 individuals were officially recognized as
Minamata Disease patients as of 2011, several tens of thousands
have neurological symptoms characteristic of methylmercury
poisoning, but remain formally unrecognized as Minamata
 disease patients. Approximately 65,000 people have applied to
the government for relief for Minamata disease. The diagnostic
criteria that the Government has consistently used to certify
Minamata Disease were judged medically invalid by the
Japanese Society of Psychiatry and Neurology (JSPN) in 1998
(JSPN, 1998) and declared invalid by the Supreme Court in
2004 (McCurry, 2006). In February 2013, the Asahi Shimbun
reported that the Environment Ministry repeatedly requested a
medical doctor to lie in a court case to prevent certification of
Minamata disease.ii In April 2013, a Supreme Court judgment
noted that there is no scientific proof that all people with
Minamata disease have developed symptoms required by the
Government and that there is room to recognize a person as a
Minamata disease victim by examining evidence including the
person’s life history. Nevertheless, the government has not
changed the criteria. Without government recognition of a
Minamata disease diagnosis, a patient cannot be properly
compensated.
- It is sad that the number of persons affected is still unknown,
despite the tragic fact that thousands of people fell ill and many
of them passed away. This is because there hasn't been a
thorough and systematic health research of the Minamata
region. For instance, unacknowledged deaths, people who
cannot or will not disclose their ailments for fear of prejudice
from the community, and fetuses who pass away before birth
are not routinely recorded.
b. The move of the company Chisso
 Minamata disease was recognized in 1956, so why did
Chisso continue to release mercury into the environment
until 1968?
 At that time, Chisso denied all allegations of environmental
pollution. Many studies have shown that mercury poisoning is
 the cause of Minamata disease. It was not until 1968 that the
Japanese government confirmed that mercury-containing waste
was the cause of the disease and suspended the operation of this
plant. Soon after, the infected resident of Minamata filed a
lawsuit against Chisso for damages. The first lawsuit against
Chisso was filed in the court in 1969. After nearly four years of
trial, the court declared that the Chisso Corporation must pay
damages to the victims.

 Why has chisso corporation not taken responsibility for

its actions?
- From the outset, Chisso, with government help, has denied,
evaded, delayed and prevented meaningful action to be taken to
limit mercury poisoning from its emissions. In addition, during
the years 1950-1960, about 60% of the workforce in Minamata
worked for Chisso and their source of income depended on this
factory. Therefore, Chisso workers are absolutely loyal to the
factory. In 2009, the Japanese government allowed Chisso
Group to split into two companies to help the group limit its
debts due to the Minamata epidemic. The new law does not
establish any assessment of Minamata disease certification
criteria nor does it establish a rigorous program of investigating
the health of residents in contaminated areas.

c. How the Japanese deal with disaster?

- People did not ask Chisso company to close. Instead, they
demanded that the government strengthen environmental
protection laws, companies must build standard wastewater
treatment systems, and at the same time compensate victims for
the rest of their lives.
- They transformed the Minamata disease-ravaged town into a
symbolic park with a sizable museum. They wish to inform the
 next generation about this sad error and disaster in addition to
making sure that hundreds of fatalities are not forgotten. Every
year, the Emperor and representatives from the local
government attend the sorrowful memorial ceremony for the
victims.
3. Lesson
The delay in treatment has caused Minamata disease to persist for
12 years and cause a lot of damage to people and the environment.
Its consequences persist to this day, "Minamata" has become an
expensive lesson for many countries and Japan:
For the Japanese government:
 All victims recognized and compensated
 Complete cleanup of contaminated areas around Minamata
Bay
 There is a need for a comprehensive study of the systematic
status of the affected areas
 Advise people to stop catching and eating animals in that
area.
 Prohibit the export of mercury from Japan.
For the company Chisso:
 Be aware that treating waste before discharging into the
environment is more important than ever.
 The consequences of destroying the environment are ten
thousand times more expensive than the profits
For citizens
 Every citizen of Minamata realizes that water and food are
essential to life, and invaluable.
 Construction and industry cannot be allowed to wreak havoc
on the environment.
II. Vedan
1. Review
- It occurred that rocked the entire country of Vietnam and
altered how even businesspeople, customers, and policymakers
perceived it. There was also a change in the legal system. In
1991, Vedan was one of the original PDI (Power distance
index) businesses. You may recall that Vietnam stated its
intention to integrate into the world in 1986, but it wasn't until
1991 that it was prepared to broaden its diplomatic ties with
other nations on the basis of nonpolitical, mutually beneficial
collaboration. Vedan entered Vietnam in 1993 and began
working in 1994. When they began operating, Vedan
discharged garbage directly into the Thi Vai river, which is near
the headquarters of Vedan in Dong Nai, a fishing community.
Mass fish fatalities were observed in the provinces of Dong Nai,
Ho Chi Minh City, and Ba Ria Vung Tau, but Vedan refused to
accept responsibility. Instead, when the public complained
again and over, Vedan simply offered nominal assistance in the
form of compensation. Vedan built a multi-stage pumping
system and closed it deep inside the ground, leading directly to
the Thi Vai river, despite the fact that Vedan built a system for
wastewater treatment that does not work inside. This support for
the people of three provinces began in 1995 and lasted until
2008, 14 years during which the environmental police
investigated. Newspapers broke the story after receiving 5000
petitions from citizens of three provinces. As a result, people
suffered, customers learned about the issue, and customers
began to boycott Vedan. Vedan faced numerous lawsuits and
pressure from the community when there were two boycotts, the
first in October 2008 and the second in August 2010. As a result
of the inquiry into these cases, the penalties for violating
discharge regulations is 267.5 million dongs. The discharge rate
exceeds the permitted threshold ten times, and while the
environmental fee is 127 billion VND, the level of
 compensation for almost 3,000 homes is 220 billion VND at the
same time. Vedan's reputation in the market suffered as a result
of that episode.
2. Reflection
a. The Failure of VEDAN Vietnam in environmental
protection
- Discharging a volume of untreated wastewater by the
company’s starch factory that is ten times higher than the
accepted limits.
- Discharging untreated wastewater that is ten times higher than
the accepted limits in other factories of the company.
- Submitting insufficient data from field survey, inspection,
observation and other related documents to the governmental
body in charge of keeping archives of environmental protection
agency.
- Upgrading and operating the soda-acid factory with capacity
increasing from 3,116 tons/month to 6,600 tons/month without
writing an environmental impact assessment report.
- Upgrading and operating the glutamate factory with capacity
increasing from 5,000 tons/month to 15,000 tons/month, the
starch factory with enhanced capacity from 2,000 tons/month to
4,000 tons/month, lysine factory from 1,200 tons/month to
1,400 tons/month, deluxe seasoning at the capacity of 20
tons/month, PGA 700 tons/year, Vedagro phosphate at 7000
tons/month (solid), 280,000 (liquid) without writing a report on
the environmental impact assessment.
- Discharging fetid odors directly into the environment without
the use of devices that limit environmental pollution.
- Failing to manage toxic waste in accordance to environmental
protection regulations
- Discharging wastewater into water source at the wrong position
as defined in the license of water discharge
 b. Causes behind the Scene
- First, in Vietnam, environmental proctection laws have not been
fully developed and not rigorously enforced. There are
approximately 300 legal documents in the field of
environmental protections, economic activities, technical
procedures and raw material production processing.
- Second, within the Vietnam business community, ethical
standards have not been established in the field of environment
protection and other social resposibilities
3. Lesson
- According to Vedan's solution, I can see that even though
Vedan gave money to people after the incident of wastewater
discharge into the environment, this is still not the best course
of action because Vedan did not offer an apology to the people
as soon as they were made aware of the incident, and the fact
that the incident has persisted for the past 14 years demonstrates
that Vedan is not to blame.
- The first thing I would have done if I had been the company
manager at that time is to acknowledge the company's errors
and extend an apology to everyone. Following that, the business
will halt operations while treating waste and constructing a
waste treatment system. Citizens can also receive
compensation.
- The Vedan case will be a lesson for us to learn from.
Experience in building a legal system, experience in applying
the law to settle and handle acts of environmental violations,
experience in licensing, inspecting and supervising enterprises.
domestic and foreign industry in environmental protection. We
must deal firmly and strictly with Vedan to set an example for
other businesses that have been committing violations against
the environment, disregarding human health and life. Every
business must review economic development must go hand in
 hand with social responsibility, step by step perfect in the
direction of green, clean, environmental protection for the
benefit of the community. Only then can businesses create a
good image in the hearts of consumers and their products can
affirm a sustainable brand.

C. Conclusion
- Toàn cầu hóa khiến các công ty vì muốn thu hút các nhà đầu tư mà chạy
theo lợi nhuận mà quên đi đạo đức kinh doanh. Hậu quả của nó ảnh hưởng
đến cộng đồng và môi trường
- Vì vậy, đối với các công ty hoạt động trên thị trường nên cân bằng giữa
lợi nhuận và thực hiện tốt trách nhiệm xã hội, tránh ảnh hưởng đến công
ty cũng như xã hội.
D. References

https://en.wikipedia.org/wiki/Facebook
%E2%80%93Cambridge_Analytica_data_scandal
https://theconversation.com/the-trolley-dilemma-would-you-kill-one-
person-to-save-five-57111
https://www.nytimes.com/2013/11/24/books/review/would-you-kill-the-
fat-man-and-the-trolley-problem.html
Survey:
https://cafebiz.vn/ban-co-dam-hi-sinh-1-nguoi-de-cuu-5-nguoi-thi-
nghiem-dao-duc-noi-tieng-khien-nhan-loai-tranh-cai-gan-1-the-ky-van-
chua-co-loi-giai-20201025134759162.chn

This is survey from my friends:

https://docs.google.com/spreadsheets/d/12dyck3-Laka-zsan2-oHsN1-
__MNhRgXS1_OjEI9zZA/edit?usp=sharing
Result:
https://docs.google.com/spreadsheets/d/12dyck3-Laka-zsan2-oHsN1-
__MNhRgXS1_OjEI9zZA/edit?usp=sharing

Text book: Management Twelfth Edition (Richard L.Daft - Vanderbilt University)

https://www.youtube.com/watch?v=n-2XXXXs9RQ&t=2s

THE END