MBA Programme

GraduateSchool of Business

http://www.mba.itb.ac.id
INSTITUT TEKNOLOGI BANDUNG

MM5001

BUSINESS ETHICS, LAW AND

SUSTAINABILITY

YP52B

August 2015

MASTER OF BUSINESS ADMINISTRATION

INSTITUT TEKNOLOGI BANDUNG
http://www.sbm.itb.ac.id/mba

Business Ethics, Law, and Sustainability

CONTENTS
Page
Facilitator Profile

Course Description

Expected Learning Outcomes

Course Outline

Learning Guidance

Prerequisite

Learning Method

Presentations

Pre Assignment

Class Participation

Mid-term Examination

Final Examination

Grading Policy

Reading Materials

Guest Speakers

Course Schedule

Business Ethics, Law, and Sustainability

FACILITATOR PROFILES
YudoAnggoro, Ph.D (Course Coordinator)
Nick Name : e-mail
: yudo.anggoro@sbm-itb.ac.id
YudoAnggoro, Ph.D is a faculty at School of Business and Management, Bandung Institute of Technology
(SBM ITB). He received his PhD in Public Policy with minors in Industrial Policy and Economic
Competitiveness from the University of North Carolina, Charlotte, US in 2015. Dr. Anggoro completed
his bachelor degree in Industrial Engineering at Bandung Institute of Technology (ITB) in 2004. After
working at Citibank Indonesia for 2 years, he received full scholarship to pursue master degree in
Management Science from SBM ITB, and graduated as best student in 2009.
Dr. Anggoros research interests are economic competitiveness, industrial policy, transportation and
infrastructure policy, public management, regional economic development, government performance,
leadership, public economics and strategic management. He is a Fulbright scholar

M. MovaAlAfghani, Ph.D
Nick Name : e-mail
:

COURSE DESCRIPTION
The importance of ethical behavior and compliance with law, in business management is widely
recognized. This course is to make business participants aware of the importance of compliance and
integrity in a wider business environment. Transparency and accountability is becoming more and more
a necessity to earn a social & legal contract, i.e. a permission to be in business. Indonesian business is
still facing a daunting challenge to improve its reputation, to reduce overall perceived corruption and to
guarantee the international global business community that it will respect the international rules of the
game. Implementation and compliance with Indonesian law and international conventions will be
assessed in this course.

EXPECTED LEARNING OUTCOMES

The objective of the Business Ethics and Business Law course is to provide participants with a broad
understanding of the ethical and legal challenges that may arise in their business activities.
At completion of this course, the participants will be able to respond to these challenges in a manner
that will benefit both their careers and the success of the business.

Business Ethics, Law, and Sustainability

COURSE OUTLINE
The course consists of several modules that cover:

Reputation Risk: This module focuses on the importance of ethical behavior to the reputation
of both individuals and organizations.

Governance: This module focuses on governance and corruption, cultural interpretations and
how to curb corruption at the individual and organizational level.

Human Rights&Intellectual Property Rights: This module focuses on two broad issues of global
concern, including core human values.

Corporate Social Responsibility: This module covers issues related to corporate social
responsibility

LEARNING GUIDANCE
PREQUISITES
No prerequisites, aside from management experience, are required for this course.

LEARNING METHOD
The case method and other interactive methods are used throughout the subject. Class
members are encourages to incorporate concepts from assigned readings into their analysis of
the case. The case nethod may include both large group discussions and/or presentations by
syndicate teams. All class members are expected to have read each case and reflected upon the
assigned questions, whether or not their team has been assigned the case.

PRESENTATIONS
In some sessions, syndicates may be randomly assigned to make presentations of their case
analysis to the entire class at the time of case will be discussed. Therefore all syndicates
should make appropriate preparations.
The audience for the case presentations are the other members of the class. Please address
your talk to them.

The syndicates may make the presentation as a team, or assign a

spokesperson to each case. In any case the syndicates should ensure that all team members
have any equal opprotunity to participate in the presentations.
The criteria for measuring the effectiveness of presentations include:

Business Ethics, Law, and Sustainability

1. Ability to stimulate interest among classmates

2. Ability to relate concepts from the readings to the issues in the specific situation
3. How well the discussion drew out insights and ideas from the participants
4. How well organised was the discussion
5. How comprehensive was the analysis
Some specific case questions are usually provided to help you to prepare the case reports, but
your own ideas and creativity are paramount. Keep the reports concise. There is no need to
summarise the case materials. Simply get to the main points and provide your analysis and/or
recommendations with supporting justification.

PRE ASSIGNMENTS
On occasion students will be asked to prepare a short summary of particular cases or reading
materials. This summary will be due at the beginning of a module.

CLASS PARTICIPATION
Active participation is expected throughout the entire class and students should make
thoughtful contributions to the discussion. Please note that frequency (i.e. quantity) of
contributions in class is not the major criteria for effective class participation. The classroom
should be considered a laboratory in which the student can test his/her ability to convince peers
of the correctness of ones approach to complex problems and ones ability to achieve the
desired results by using that approach. Criteria that are useful in measuring effective class
participation include:

1. Is the participant a good listener?

2. Are the points that are made relevant to the discussion? Are they linked to the
comments of others?
3. Do comments show evidence of incorporating the concepts from readings into the
analysis of the case?
4. Is there a willingness to test new ideas, or are all comments safe? (safe is defined as
simply repeating case facts without analysis and conclusions).
5. Do comments clarify or build upon the important aspects of earlier comments and lead
to a clearer statement of the concepts being covered and the problems being
addressed?

Mid-term Examination: BUSINESS ETHICS

Business Ethics, Law, and Sustainability

This will be held on Thursday, 15thOctober 2015.

Final Examination: BUSINESS LAW

This will be held on Thursday, 3rd December 2015.

GRADING POLICY
Grading of this course is based on whether or not participants performance meets the module
standards for completion and proficiency in the subject materials.
Your final grade will be weighted as follows:
Aspect
PreAssignments
Participation
Mid-term Examination
Final Examination

%
10%
30%
30%
30%

Description
Individual grade by team members
Individual grade by facilitator/team
Individual grade by facilitator
Individual grade by facilitators

READING MATERIALS
Required text books:
Weiss, Joseph W. Business Ethics: A Stakeholder and Issues Management Approach. Thompson
South-Western. 2006
Reference books and recommended reading: to be specified.

GUEST SPEAKERS
Guest speakers may be invited and scheduled at their convenience.

Business Ethics, Law, and Sustainability

COURSE SCHEDULE
Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
Module 1: Thu,Aug27th 2015 Intro to Business Ethics
13:00 14:30 Session 1 (YA)

14:30-14.45
14:45-16:15

1. Topic: Introduction and Syndicate appointment

2. Issues covered:
What is business ethics?
Shareholder versus Stakeholder Theory
3. Activity: Interactive lecture
4. Reading: Ethics: A Basic Framework (9-307-059)
Jaan Elias and J. Gregory Dees, The Normative
Foundations of Business (HBS Note 9-897-012)
5. Case: None
Break
Session 2 (YA)
1. Topic: Business Ethic, Banking and International Law
2. Issues covered: Industrial property and copyrights
3. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
4. Reading: 5. Case#1: Collections and crime: the case of Citibank in Indonesia
6. Guidance: Participants and syndicates should analyze the case;
identify critical issues and their potential solutions.

Course Code
Credit Hours
MM5001
3 SKS
Course Title
Module 2: Thu, Sept3rd, 2015
13:00 14:30 Session 1(YA)

14:30 14:45
14:45 16:15

YP PROGRAM
Business Ethics Course
Human Rights and Reputation

1. Topic: Human Rights in the Workplace - gender related issues

2. Issues covered: Harassment, discrimination
3. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
4. Reading: Note on the Law of Sexual Harassment (9-398-024)
5. Case#3:PT ISIN
6. Guidance: Participants should analyze the case, identify critical
issues, and their potential solutions.
Break
Session 2(YA)
1. Topic: Human Rights in the Workplace - child labor plus
2. Issues covered: 3. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
4. Reading: 5. Case#4: International Sourcing in Athletic Footwear: Nike and

Business Ethics, Law, and Sustainability

Reebok (9-394-189)
6. Guidance: Participants and syndicates should analyze the case,
identify critical issues, and their potential solutions.

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
th
Module 3: Thu,Sept17 ,
Reputation Risk and IPR
2015
13:00 14:30 Sessions 1(YA)

14:30-14:45
14:45 16:15

1. Topic: How an organizations behavior affects reputation

2. Issues covered: Business ethics and public relations
3. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
4. Case#6: H.B. Fuller in Honduras, and
Case#7: The Tyenol Crises
http://www.personal.psu.edu/users/w/x/wxk116/tylenol/crisis.html
5. Guidance: Comparing the response of companies in the two cases
Break
Session 2(YA)
1. Topic: Trust and Stakeholder Theory/Corporate Social
Responsibility
2. Issues covered: Managing shareholder value and stakeholders
interests
3. Reading: (1) Rethinking the Social Responsibility of
Businesshttp://www.reason.com/news/show/32239.html, The
SocialResponsibility of Business is to Increase its Profits,
AStakeholder Theory of the Modern Corporation: Kantian
Capitalism
4. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
5. Case#8:Merck & Co. A (9-991-021)
6. Guidance: 7. Handout: Merck & Co. B (9-991-022)

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
st
Module 4: Thu,Oct1 , 2015
Corporate Social Responsibility and Sustainability
13:00 14:30 Session 1 (YA)
1.
2.
3.
4.
5.

Topic: Corporate Social Responsibility

Issues covered: CSR concept, community development
Activity: Interactive lecture
Case: No case
Reading: Lynn Sharp Paine, Corporate Purpose and
Responsibility HBS 9-396-201)
6. Guidance: Participants should analyze the case, identify
critical issues, and prepare to discuss them
Business Ethics, Law, and Sustainability

14:30-14:45
14:45 16:15

Break
Session 2(YA)
1. Topic: A failure in corporate ethics
2. Issues covered: Collusion among business players and auditors
3. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
4. Case#9: Enron Corp.
5. Reading: 6. Guidance: Participants should analyze the case, identify critical issues,
and prepare to discuss them

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
th
Module 5: Thu,Oct15 , 2015 Ethics in Different Culture
13:00 14:30 Session 1 (YA)
1. Topic: Board Diversity and Cross-Cultural Management
2. Activity: Case discussion
3. Case#10: HM Sampoerna Challenge of Cross-Cultural
Management
4. Guidance: All analyze the case, answer questions, and discuss

14:30-14:45
14:45 16:15

Mon, Nov
16th , 2015

Break
Session 2 (YA)
1. Topic: CSR in different culture
2. Activity: Syndicate presentation (15) followed by a large group
discussion led by the syndicate (30) and lecture (45)
3. Case#11: MihneaMoldoveanu and Lynn Sharp Paine, Royal
Dutch/Shell in Nigeria (HBS Case 9-399-126)
4. Guidance: Participants should analyze the case, identify critical
issues, and prepare to discuss them

Final Examination: BUSINESS ETHICSSubject (YA)

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
Good Governance and Corruption
Module 7: Thu,Oct 22nd ,
2015
13:00 14:30 Session 1 (MM)
1. Topic: Introduction to Good Governance and Corruption Theories
2. Activity: Teaching and Brainstroming, Presentation
3. Materials:
World Bank. Public Sector B, Reforming Public Institutions and
Strengthening Governance: A World Bank Strategy, November
2000 (World Bank-free PDF 2000)
Kaufmann D, Kraay A and Zoido-Lobaton P, Governance
Matters', World Bank Policy Research Working Paper No. 2196
Business Ethics, Law, and Sustainability

14:30-14:45
14:45 16:15

October Washington DC: The World Bank

Klitgaard R, Strategies against corruption (Presentation at
Agencia Espaola de
CooperacinInternacionalForoIberoamericanosobre el Combate
a la Corrupcin, Santa Cruz de la Sierra, June, 15-16 1998)

Break
Session 2 (MM)
1. Topic: Corruption Case Study and Analysis
2. Activity: Group Discussion: Individual Assignment on Corruption Case
Study

3. Case#11: Case Study Sheet (Choose between Hambalang or Beef Import

Graft)

4. Materials:

Engle E, I Get by with a Little Help from My Friends? Understanding

the UK Anti-Bribery Statute, by Reference to the OECD Convention,
and the Foreign Corrupt Practices Act (2011)
Jordan J, Recent Developments in the Foreign Corrupt Practices Act
and the New UK Bribery Act: A Global Trend Towards Greater
Accountability in the Prevention of Foreign Bribery 7 NYUJL & Bus
845
Wagner BB and Jacobs LG, Retooling Law Enforcement to Investigate
and Prosecute Entrenched Corruption: Key Criminal Procedure
Reforms for Indonesia and Other Nations 30 U Pa J Int'l L 183
Law V, US FCPA vs UK Bribery Act <www.transparencyusa.org/documents/FCPAvsBriberyAct.pdf> accessed August 17,
2013

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
th
Employment and Labor Law
Module 8: Thu,Oct 29 ,
2015
13:00 14:30 Session 1 (MM)
1. Topic: Regulating Industrial Relation
2. Activity: Presentation
3.

Materials:
Undang-undang No. 21/2000 tentangSerikatPekerja/SerikatBuruh
Undang-undang No. 13/2003 tentangKetenagakerjaan
(sesuaidenganPutusanMakhkamahKonstitusi No. 012/PUU-I/2003)
Undang-undang No. 2/2004
tentangPenyelesaianPerselisihanHubungan Industrial
PutusanMahkamahKonstitusiNomor 19/PUU-IX/2011
TentangPengujianUndangUndang 13 Tahun 2003
TentangKetenagakerjaan
van Voss GJJH and Tjandra S, Bab-babtentanghukumperburuhan
Indonesia (PustakaLarasan 2012)
Botero JC and others, The regulation of labor 119 The Quarterly

Business Ethics, Law, and Sustainability

10

14:30-14:45
14:45 16:15

Journal of Economics 1339

Manning C and Roesad K, The Manpower Law of 2003 and its
implementing regulations: Genesis, key articles and potential
impact 43 Bulletin of Indonesian Economical Studies 59

Break
Session 2 (MM)
1. Topic: Role Playing Game; Negotiation in Mass Layoff
2. Activity: Role Play
3. Materials:
van Voss GJJH and Tjandra S, Bab-babtentanghukumperburuhan
Indonesia (PustakaLarasan 2012) Kasus 4 (PHK Massal)

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
th
Alternative Dispute Resolution & Foreign Investment
Module 9: Thu,Nov 5 ,
2015
13:00 14:30 Session 1 (MM)
1. Topic: ADR Theories & Analysis
2. Activity: Teaching
Materials:
Edwards HT, Alternative dispute resolution: panacea or anathema
99 Harv L Rev 668
Banani DD, International arbitration and project finance in
developing countries: blurring the public/private distinction 26 BC
Int'l & Comp L Rev 355
Rubins N, Enforcement and Annulment of International Arbitration
Awards in Indonesia, The 20 Am U Int'l L Rev 359
Winarta FH, SaranaUtamaPenyelesaianSengketaBisnis Bisnis
Indonesia (Jakarta, Wednesday April 24, 2013)
Suparman E, PerkembanganDoktrinPenyelesaianSengketa di
Indonesia <http://resources.unpad.ac.id/unpadcontent/uploads/publikasi_dosen/1H%20Perkembangan%20Doktrin
%20Peny-Sengketa.pdf> accessed September 1, 2013
UndangUndangNomor 30 Tahun 1999
TentangArbitrasedanAlternatifPenyelesaianSengketa

14:30-14:45
14:45 16:15

Break
Session 2 (MM)
1. Topic: Foreign Investment and Indonesia
2. Activity: Teaching
3. Materials:

Butt S, Foreign Investment in Indonesia: The Problem of Legal

Uncertainty in Bath V and Nottage L (eds), Foreign Investment and
Dispute Resolution Law and Practice in Asia (Routledge 2011)
UndangUndangNomor 25 Tahun 2007 TentangPenanaman Modal

Business Ethics, Law, and Sustainability

11

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
th
Corporation and Critical Issues in Business Law
Module 10: Thu,Nov 12 ,
2015
13:00 14:30 Session 1 (MM)
1. Topic: Identification of Critical Issues in Business Law
2. Activity: Movie and Discussion
Materials:
Work Sheet on Critical Issues in Business Law from The
Corporation

14:30-14:45
14:45 16:15

Break
Session 2 (MM)
1. Topic: Business and Human Rights
2. Activity: Teaching
3. Materials:

Ruggie J, Report of the Special Representative of the Secretary-General on

the issue of human rights and transnational corporations and other
business enterprises, John Ruggie; Guiding Principles on Business and
Human Rights: Implementing the United Nations Protect, Respect and
Remedy Framework (A/HRC/17/31, 2011)
Ruggie JG, Business and human rights:

Course Code
Credit Hours
YP PROGRAM
MM5001
3 SKS
Course Title
Business Ethics Course
Environment and Extractive Industries
Module 11: Thu,Nov 19th ,
2015
13:00 14:30 Session 1 (MM)
1. Topic: Environmental Issues in Indonesia
2. Activity: Movie and Presentation
Materials:
D'Hondt LY, Indonesia's Environmental Law of 2009 and its
Administrative Coercion Provisions: A Conceptual Misunderstanding
with Large Practical Implications? Available at SSRN 2289123
Supreme Court of Indonesia, The Administrative Judge and
Environmental Law (Questionnaire) (Association internationale des
hautesjuridictionsadministratives, Cartagena Congress 2013, 2013)
Environmental Law 32/2009

14:30-14:45
14:45 16:15

Break
Session 2 (MM)
1. Topic: Extractive Industries
2. Activity: Group Discussion

Business Ethics, Law, and Sustainability

12

3. Materials:

Welker MA, Corporate security begins in the community: Mining, the

corporate social responsibility industry, and environmental advocacy in
Indonesia 24 Cultural Anthropology 142
Devi B and Prayogo D, Mining and Development in Indonesia: An
Overview of the Regulatory Framework and Policies (International
Mining for Development Center, 2013)
Mining Law 4/2009

Business Ethics, Law, and Sustainability

13