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Page 1 Kaplan Business School Assessment Outline

Assessment 3 Information

Subject Code:

MBA503

Subject Name:

Operations Management and Decision-Making Models

Assessment Title:

Assessment 3 –

Video

Assessment Type:

Video
Presentation
Length:

5-7 Minutes (+/-10%)

Weighting:

Total Marks:

Submission:

VIMEO

Due Date:

23.55 pm Monday, Week 13

Your Task
You are required to select a crisis experienced by an organisation to use as a case study. You
imagine you are an expert consultant who works with companies to improve their decision-
making processes. You are asked by a company which has recently experienced a crisis to
review the decision-making processes it employed and recommend ways in which it can improve
in the future. In your video presenting your findings to the board of the company.

Assessment Description
An organisational crisis is a significant, essentially unexpected event which threatens the
company’s reputation, financial standing and/or ability to operate. Examples of organisational
crises include; natural disasters, security breaches, fraud, product recalls and environmental
spills.

Your lecturer needs to approve your choice of organisational crisis before you proceed.

In your video, you provide a short overview of the crisis and then specifically address the
following three questions below:

1) What decision-making models or approaches were used by the company when managing this

crisis? In answering this question refer at least 1 (one) decision-making model which could
have been followed.

2) Identify on a minimum of 2 (two) decision-making biases or errors might have influenced the
decisions made. What could have been the impact of these biases or errors?

3) Make a minimum of 2 (two) recommendations regarding the strategies that could be put in
place, in the future, to avoid your identified decision-making biases or errors.

A minimum of 5 academic references should be used to support the statements made and
arguments presented in this video.

Learning outcomes
LO4 – Apply Strategies integrating ethical, social and global considerations, which benefit
organisational performance

Page 2 Kaplan Business School Assessment Outline

LO5 – Analyse and evaluate real-world situation using a wide variety of decision-making
approaches and techniques.

Assessment Instructions

To ensure the success of your video presentation, you should take account of the following:

1) Ensure that you record in a well-lit location and quiet location so that the quality of your video is

enhanced
2) Confirm that your voice is recording clearly and avoid reading notes, and look at the camera when

you speak.

3) Practice numbers times beforehand so that you become polished and confident.

4) Be creative in how you present your information and reinforce the arguments or positions you are

taking.

Please refer to the assessment marking guide to assist you in completing all the assessment criteria.

Important Study Information

Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.

What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?

Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.

Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.

Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the
resources on the MyKBS Academic Success Centre page. Click here for this information.

http://www.kbs.edu.au/current-students/student-policies/

https://elearning.kbs.edu.au/course/view.php?id=1481

Page 3 Kaplan Business School Assessment Outline

MBA 503 Assessment Three – Video – Marking Guide

Criteria F (Fail) 0-49% P (Pass) 50-64% CR (Credit) 65-74% D (Distinction) 75% – 84% HD (High Distinction) 85% – 100%
Marks Assessment Content (MBA 503 – Assessment 3) out of 30 marks

Decision-Making
Models

DM model either not mentioned
at all or vaguely explained.
Either no or limited analysis and
connections included.

Analysis of the chosen DM
model included – limitations
and advantages mentioned but
not developed. Connections
between the context and the
DM model mentioned but not
developed.

Extensive and detailed analysis
of the chosen DM model –
limitations and advantages
explained. Connections
between the context and the
DM model clarified and
detailed. Academic research
included

Thorough and comprehensive
analysis of the chosen DM
model – limitations and
advantages evident.
Connections between the
context and the DM model
carefully detailed. Academic
research included and supports
the arguments being developed.

Extensive, detailed, and in-
depth analysis of the chosen
DM model – limitations and
advantages apparent.
Connections between the
context and the DM model
thoroughly detailed. Academic
research and sources skillfully
embedded and support the
arguments being developed.

Decision-Making
Biases or Errors

DM biases/errors either not
detailed at all or minimally
referred to. Little or no impact
of the biases/errors included.

DM biases/errors mentioned.
Connections made between the
context and the DM bias. Some
commentary on the impact of
DM biases/errors included

DM biases/errors detailed
clearly. Extensive connections
made between the context and
the DM bias. Reflections made
re the impact of DM
biases/errors.

DM biases/errors detailed and
comprehensive manner.
Extensive connections made
between the context and the
bias. Considered and measured
reflections made re the impact
of DM biases/errors. Academic
references included

DM biases/errors thoroughly
and meticulously analysed. A
deep, extensive and detailed
connection made between the
context and the bias. Insightful
reflections made re the impact
of DM biases/errors. Academic
theory support and augments
discussion.

Recommendations
to the Board

Recommendations minimal or
non-existent. No clear
connections between the biases
and recommendations

Clear recommendations
included. Strategies clear. Effort
made to detail linkages between
DM biases and
recommendations.

Detailed and clear and concise
recommendations included.
Strategies logical and clear.
Obvious linkages between DM
biases and recommendations.

Detailed and considered
recommendations included.
Strategies logical with
reasonable likelihood of
successful outcomes. Perceptive
linkages between DM biases
and recommendations.

Discerning, thorough, precise
and measured
recommendations included.
Strategies logical with strong
likelihood of successful
outcomes. Perceptive linkages
between DM biases and
recommendations.

Structure Format and Presentation (MBA 503 Assessment 3) out of 10 marks
Video – Structure Little structure evident – which

limits the flow of the
presentation. No support
materials included

Structure poor. Progression of
ideas reasonable but flow could
be better. Additional materials
used in a limited fashion.

Reasonable structure used to
progression of ideas. Some
materials used in the
presentation effectively.

Good structure, clear and logical
progression of ideas. Additional
materials used in the
presentation effectively.

Excellent structure, clear and
logical progression of ideas.
Additional materials used in the
presentation support and
augment the position being
developed.

Video – Quality Quality of the video poor and
impacts on the overall
presentation.

Quality of Video acceptable, but
could be better. Issues with the
audio, lighting and/or recording
limit impact on the effectiveness
of the overall presentation

Video quality reasonable, but
could be better. Limitations with
the audio, lighting, etc. impact
on the overall presentation

Good quality video. Script flows
well. Audio clear and visuals
effective and lighting very
effective in supporting the video.
The quality supports the
presentation

High-quality video. Well
developed script. Clear audio
and visuals, and lighting used to
support the presentation. The
overall quality enhances notably
the overall presentation and the
content included.

Presentation Length:

40 %

MBA503
Operations Management and Decision-Making Models
Assessment Instructions
To ensure the success of your video presentation, you should take account of the following:

1) Ensure that you record in a well-lit location and quiet location so that the quality of your video is enhanced
2) Confirm that your voice is recording clearly and avoid reading notes, and look at the camera when you speak.

3) Practice numbers times beforehand so that you become polished and confident.

4) Be creative in how you present your information and reinforce the arguments or positions you are taking.

Please refer to the assessment marking guide to assist you in completing all the assessment criteria.

MBA503 – Operations

Management and

Decision-Making Models

Workshop 8 – Decision-making

– approaches and techniques

This material has been reproduced and communicated to you by or on behalf of Kaplan Higher

Education pursuant to Part VB of the Copyright Act 1968 (the Act). The material in

this communication may be subject to copyright under the Act. Any further reproduction

or communication of this material by you may be the subject of copyright protection under the Act.

Do not remove this notice

Introductory Student Activity

Watch the following video monologue by

Ellen Degeneres – what reflections do you

have on her commentary

• https://www.youtube.com/watch?v=BatqV

3B9hiU

Lesson Learning Outcomes

1 Appreciate the key concepts which

underpin

effective decision-making

2 Identify decision-making

constructs

and approaches

3 Understand how biases and errors

limit

effective decision-making

LEARNING OUTCOME 1

Appreciate the key concepts

which underpin

effective decision-making

What is a decision?

“A choice made between alternative

courses of action in a situation of

uncertainty.” Business Dictionary, 2019

“A conclusion or resolution reached

after consideration.” Oxford dictionaries 2019

Decision-Making

“The thought process of selecting a
logical choice from the available

options.”

Business Dictionaries, 2019

When trying to make a

good decision, a person

must weigh the positives

and negatives of each

option, and consider all

the alternatives.

For effective decision

making, a person must be

able to forecast the

outcome of each option as

well, and based on all these

items, determine which

option is the best for that

particular situation.

Business Dictionaries 2019

Good Decision

Effective Decision Making

LEARNING OUTCOME 2

Identify decision-making

constructs
and approaches

The 8 Step Decision-Making

Process
http://franzimanagement.blogspot.com.au/2010/10/week-4-chapter-5-managerial-planning.html

http://franzimanagement.blogspot.com.au/2010/10/week-4-chapter-5-managerial-planning.html

Student Activity

You are in charge of a business
that is in financial trouble.

One staff member must be made
redundant.

A shortlist of five staff members
has been put forward:

• Finance manager
• Marketing manager
• Office manager
• HR manager
• Operations manager

• By working through the 8-step
decision-making process, identify

who you would make redundant

first. Why?

Rational Decision-Making

• Operations managers
are expected to make

decisions that are:

• logical
• consistent
• act to maximise

enterprise value (not

their own interests).

• The process of
rational decision-

making favours

• logic,
• objectivity, and
• analysis over

subjectivity and

insight.

Behaviour that is
rational within the
parameters of a

simplified decision-
making process that
is limited (bounded)

by an individual’s
ability to process

information.

Often results in the
pursuit of a course of
action that will satisfy

the minimum
requirements

necessary to achieve
a particular goal. This

is satisfiscing.

“Hey! It is not a
perfect outcome but it

will do!”

Bounded Rationality

Intuitive Decision-Making

• A subconscious process of making

decisions on the basis of experience,

feelings and accumulated

judgement.

• Is there a role for values and ethics in

intuitive decision-making?

Well-Structured Problems and Programmed

Decisions

Rule: An explicit

statement that tells a

manager what they

can or cannot do

Structured problem:
Straightforward,
familiar and easily
defined problems

Programmed
decision: a repetitive
decision that that can
handled by a routine
approach

Policy: a guideline
that establishes
parameters for making
decisions

Student Activity

• In groups of four, identify three

examples of each type of decision

described in the previous slide.

• What type of decisions are the most

common in your life at present?

Unstructured Problems and Non-

Programmed Decisions

• Unstructured problems: problems that are

new or unusual and for which information

is ambiguous or incomplete

• Non-programmed decisions: decisions that

are unique and require customised

solutions

• See Table 6.5 Robbins et al

LEARNING OUTCOME 3

Understand how biases and errors

limit
effective decision-making

Escalation of Commitment

Decision
is made

Evidence
suggests
that the
decision
was
wrong

Money, or
time and
commitment
makes
people
reluctant to
change
direction

Sometimes, during

decision making people

can chose to continue

on a path, despite the

evidence that it is the

wrong decision

Sometimes known as

Throwing good money

after bad

Sunk Costs

Availability heuristic:

Overestimating the
importance of information that

is easily available to them

Anchoring bias:

Being too reliant on the first
information available to the

decision-maker

Bandwagon effect:

One person’s views are too
readily accepted by others

(groupthink)

Blind-spot bias:

An individual is often poor at
identifying their own personal

biases

Decision Making
Biases and

Errors

Clustering illusion:
seeing patterns in

random events (the
gambler’s curse)

Confirmation Bias:
preferring to only receive
information that confirms

a preconception

Conservatism Bias:

favouring older

information over new or
radically different

information

Information Overload:
constantly seeking more

information than is
necessary to make a

decision

Decision
Making Biases

and Errors

Ostrich Effect:

Ignoring or avoiding
information that may be
dangerous or negative –

‘hiding your head in the sand’

Outcome Bias:

Judging the quality of a
decision based on its

outcome rather than its
process

Conservatism Bias:

Favouring older information
over new or radically different

information

Information Overload:
Constantly seeking more

information than is necessary
to make a decision

Decision Making
Biases and
Errors

Overconfidence:

Too confident in one’s own
abilities – leads to risk-

taking – the ‘expert’
syndrome

Recency Bias:

Opposite to conservatism –
placing too much weight on

recent information at the
expense of older data

Stereotyping:

Expectation that a group or
individuals will have certain
qualities that is not based

on factual information

Zero Risk Bias:

We love certainty even if it
is counterproductive – trying
to eliminate risk completely

– do no harm to anyone

Decision
Making Biases
and Errors

Student Activity

• View the following video which explains

some of the common decision-making

biases.

https://youtu.be/cAbdmV3VOwA.

Student Activity

Imagine you are interviewing a

candidate for an important new role in

your company.

• In pairs, identify two ways that each

of those biases could become

manifest either before, during or after

the recruitment process.

Dangers of Categorical

Thinking

• “We all think categorically, and for good

reason: It helps us make sense of the

world, But in business, categorical

thinking can lead to major errors in

decision-making”

• Langhe and Fernbach (2019, pg. 82)

Categorical thinking

Make sure
everyone
appreciates the
danger or
categorisation.
Analysing data
assists us to
understand the
problems, by
questioning the
decision-
making criteria
de-fossilising,
categories

The solution

By categorising
we make things
in the category
more “alike
“than they are –
and then make
the differences
between the
categories more
significant than
they are.

The
consequences

Categorical
thinking is
normal human
behaviour,
however, it can
impact on our
ability to make
good decisions

The problem

How to avoid categorisation

Increased awareness –
understand that we all

think categorically and its
limitations

Develop capabilities to
analyse data continuously.
Good analytics are critical

Audit decision criteria. Avoid
having an arbitrary

threshold for “passing” a
decision

Schedule regular meetings
where you brainstorm your

basic assumptions
underpinning your decisions

– are they still valued?

Effective Decision-Making in the

21st Century

• Understand cultural differences.

• Create standards for good decision-

making.

• Know when it is time to call it quits. If it is

not working then walk away.

• Constantly validate the effectiveness of

your decision-making processes.

Exit Activity

• Individually, think of a circumstance when

you made a significant decision, which

turned out to be either a very good

decision or a poor decision

• What made the decision right or wrong?

MBA

03 – Operations

Management and

Decision-Making Models

Workshop 8 – Conceptual

models for ethical decision-

making

This material has been reproduced and communicated to you by or on behalf of Kaplan Higher

Education pursuant to Part VB of the Copyright Act 1968 (the Act). The material in

this communication may be subject to copyright under the Act. Any further reproduction

or communication of this material by you may be the subject of copyright protection under the Act.

Do not remove this notice

Student Activity

On the right is a list of words associated with the work

ETHICS. In small groups think of at least three more.

If you were drawing a word cloud – which word would

be the biggest to the smallest.

is an example of an operations management word

cloud

•

Morals

• Values

• Character

• Law

• Principles

• Conduct

• Integrity

• Right

Adobe Stock 2019

Lesson Learning Outcomes

1 Develop an understanding of ethics, morals, values,

integrity and principles

as concepts

2 Realise the complexity to organisations in operating

as an ethical organisation and how they can be

reinforced

3 Appreciate strategies, models and approaches
which reinforce business ethics

4 Recognise the role frameworks of ethical

decision

making in informing business

ethics

LEARNING OUTCOME 1

Develop an understanding of ethics,

morals, values, integrity and principles

as concepts

What is Ethics?

Ethics

Accepted
community

values

Standards
of right and

wrong

Can be the
study of
ethics

Beliefs and
values

Rights and
obligations,

What
humans

ought to do

Student Activity

What makes

legality different and
the same as the other

words?

What makes

morality different and

the same as the

other words?

What makes Integrity

different and the

same as the other

words?

What makes ethics

different and the
same as the other

words?

Ethics Integrity

Legality Morality

Differences and connections between Values,

Principles and

Purpose

Tell us what is
good

• They are things we
strive for, desire
and seek to protect

Values

Tell us what is right

• Outline how we
may or may not
achieve our values

Principles
Is our reason for

being

• It gives life to your
values and
principles

Purpose

Ethics.org.au

Morality and the law
M

o
ra

li
ty

h
e

L
a

Complying with the

law does not

necessarily

guarantee moral

behaviour, just as

breaking the law

does now always

result in immoral

behaviour

Acting immorally

does not always

result in illegal

behaviour, just as

acting morally does

not necessarily

guarantee the

legality of an action

Student Activity

Working in pairs:

• Can you think of an action that is illegal

but morally right?

• Can you think of an action that is legal but

morally wrong?

• Discuss your answers as a class.

Morality and the Law in Practice

An action can be illegal but morally right:

• Helping a Jewish family in Nazi Germany

• Non-adherence to segregation laws in the USA

An action that is legal can be morally wrong:

• Failure of a person with knowledge of first aid to

render assistance at the scene of an accident,

when there is no valid reason not to help

LEARNING OUTCOME

Realise the complexity to organisations

in operating as an ethical organisation

and how they can be reinforced.

Challenges – Business Ethics
• To appreciate how

and why it is

challenging for

organisations to

operate ethically – an

appreciation of

business ethics is

critical.

In just about every

gangster movie there is a

scene where the mob

boss says, ‘Hey, I’m just

a businessman.”

― William Hageman

Definitions of Business Ethics

• The application of a moral

code of conduct to the

strategic and operational

management of a business.

• Business ethics and therefore

business morality generally

result from an individual’s own

moral standards in the context

of the political and cultural

environment in which the

organisation is operating.

At firms hit by

major scandals,

a culture of

making the

numbers at all

costs trumped

any concerns

about how the

targets were

met.”

Healy and Serafeim

(2019 45)

It sounds easy – doesn’t it?

A survey conducted by PwC in 2018 states

• In the previous year ≈ half of the 7,228
participants had experienced economic
crimes or fraud in the previous year.

• This % increased by 30% in the last 10 years.

• The survey also showed that more than ½ of
the criminals were employees.

(The Thing About Integrity, July-August p. 149 2019)

Business Ethics are hard!

• “Many corporate leaders don’t discover

the magnitude of integrity gaps until a

problem has blown up into a crisis and the

threat of government action or litigation

looms”

• Soltes, (2019, p. 51)

Why is it happening?

• “A culture of making the numbers at all

costs

trumped any concerns about how the targets

were being met.”

• Executives at companies where problems were

occurring, dismissed or ignored the issues and

didn’t seem them as their problem.

• While ensuring compliance happened they

emphasised and rewarded sales and profit.

( Healy & Serafeim, G, 2019 July- August “How to scandal proof your company” July-

August 2019, Harvard Business Review, p. 42)

The ethical gap – between what is desirable

versus actual?

Think, Pair and Share

1) Think – By yourself –
consider the list on the right.

Which one has the greatest

gap between desirable and

actual practice?

2) Pair – With the person
next to you – how do your

list compare

3) Share – What does the
whole class say?

• Health
• Education
• Government
• Public Service
• Banking, finance and insurance
• Charities and NPOFP
• Large corporations
• Professional membership

associations

• Small to medium enterprises
• Media
• Trade worker association s

The Ethics Gap

The Ethical Expectation Cap (2018, p. 51)

Governance Institute of Australia 2018 – The Ethics Index 2018,

https://dcwebsvr.governanceinstitute.com.au

Student Activity

• View the following video:

• https://www.youtube.com/watch?v=9yslB

3BkDm8&feature=youtu.be

• What organisational norms are evident

here?

• You would be surprised how common this

situation really is.

View the following video:

Organisational Norms 1

• A major characteristic of an organisation is

its members’ shared acceptance of

organisational rules.

• Leaders / managers can experience role

tension – what it means to be ethical

versus efficient.

What is expected of
an efficient manager What is expected of an

ethical person.

Organisational Norms 2

Organisational pressures can lead to
un

ethical behaviour

• The need to meet corporate objectives, to be a

team player, and to conform to organisational
norms can lead otherwise honourable individuals
to engage in unethical conduct.

Groupthink
• Group members may have the illusion that the

group is invulnerable or that because the group is
good or right, whatever it does is permissible.

Organisational Norms

Diffusion of responsibility

• Responsibility for what an organisation does
can become fragmented or diffused
throughout the group, with no single
individual seeing himself or herself as
responsible for what happens.

• In any large group or organisation, diffusion of
responsibility for its actions can lead
individuals to feel anonymous and not
accountable for what happens.

LEARNING OUTCOME 3

Appreciate strategies, models and

approaches which reinforce business

ethics.

The Importance of Business Ethics

• Despite being hard – Business Ethics are

important

• The public – customers – expect and want

ethical behaviour

• Business needs to be truly acting in a way

which goes beyond purely profit-based

motivations, towards a model which works for

everyone – what is called the

Triple Bottom Line:

• People, Planet, Profit

•

Student Activity

In groups of 4 – list 5 ways that operations management can contribute to

the triple bottom line

Category List 5 examples

People
1

2
3

Planet
1

2
3
4
5

Profit
1

2
3
4
5

Overview of Ethical Decision-

Making Frameworks

Brown University (2019)

Frameworks for Ethical Decision-

Making 1

• In the consequentialist framework, we
focus on the future effects of the possible
courses of action, considering the people
who will be directly or indirectly affected.

• We ask about what outcomes are
desirable in a given situation, and consider
ethical conduct to be whatever will achieve
the best consequences.

• It is a pragmatic utilitarian approach.

www.brown.edu/academics/science-and-technology-studies/framework-making-ethical-

decisions

Frameworks for Ethical Decision-

Making 2

• In the duty framework, we focus on our

duties and obligations in a given situation,

and consider what ethical obligations we

have and what things we should never do.

• Ethical conduct is defined by doing one’s

duties and doing the right thing, and the

goal is performing the correct action.

www.brown.edu/academics/science-and-technology-studies/framework-making-

ethical-decisions

Frameworks for Ethical Decision-

Making 3

• In the virtue framework, we try to identify the
character traits (either positive or negative)
that might motivate us in a given situation.

• We are concerned with what kind of person
we should be and what our actions indicate
about our character.

• We define ethical behaviour as whatever a
virtuous person would do in the situation, and
we seek to develop similar virtues.

www.brown.edu/academics/science-and-technology-studies/framework-making-
ethical-decisions

Summary of Key Ethical Theories

• Virtue ethics states that character matters
above all else. Develop and demonstrate the
virtues of courage, compassion, wisdom, and
temperance. Avoid vices like greed, jealousy,
and selfishness.

• Utilitarianism holds that acting rightly
involves maximising the amount of happiness
and minimising the amount of suffering
around you. The greatest good for the
greatest number constitutes what is right
and what is wrong.

Summary of Key Ethical Theories

• Kantianism emphasises the principles

behind actions rather than an action’s

results – being motivated by proper universal

principles that treat everyone with respect.

• Contract theory proposes thinking about

ethics in terms of agreements between

people. Doing the right thing means abiding

by the agreements that the members of a

rational society would choose.

Summary of Key Ethical Theories

• Care ethics focuses ethical attention on

relationships before other factors. Acting

rightly involves building, strengthening and

maintaining strong relationships. Acting

rightly thus displays care for others and for

the relationships of which they are a part.

To care ethicists, relationships are

fundamental to ethical thinking.

Applied Ethics

• The field of business ethics examines moral
controversies relating to the social responsibilities of
capitalist business practices, the moral status of
corporate entities, deceptive advertising, insider
trading, basic employee rights, job discrimination,
affirmative action, drug testing, and whistle blowing.

• Issues in environmental ethics often overlap with
business and medical issues. These include the rights
of animals, the morality of animal experimentation,
preserving endangered species, pollution control,
management of environmental resources, whether
ecosystems are entitled to direct moral consideration,
and our obligation to future generations.

http://www.iep.utm.edu/ethics/

The problem and solution

• The
Problem

“Despite govern-
mandated corporate

expenditure
systems to deter

white-collar crime,
data and anecdotal
evidence indicate

that it’s continuing to
rise.

• The
Causes

“Extensive research
suggests that the

real culprit is not the
systems but weak

leadership and
flawed corporate
cultures that push

employees to make
the numbers at all

costs

• The
Solution

Leaders need to
broadcast that crime
hurts everyone in the
organisation, punish

perpetrators equally, hire
managers with integrity,
create decision-making
processes that reduce

the opportunity for illegal
or unethical acts and

champion transparency

(Idea in Brief, 2019, p. 44)

Morality and Professional Codes

• Professional codes of conduct are rules

designed to govern a given profession

(medicine, law, accountancy etc.)

• Professionals are understood to have agreed to

be bound by these rules.

• Violation of the professional code may result in

the disapproval of one’s peers and, in serious

cases, loss of one’s licence to practise that

profession.

Chartered Financial Analysts –

Code of Ethics

• Act with integrity, competence, diligence, respect and in an ethical manner with the public,
clients, prospective clients, employers, employees, colleagues in the investment profession,

and other participants in the global capital markets.

• Place the integrity of the investment profession and the interests of clients above their own
personal interests.

• Use reasonable care and exercise independent professional judgment when conducting
investment analysis, making investment recommendations, taking investment actions, and

engaging in other professional activities.

• Practice and encourage others to practice in a professional and ethical manner that will
reflect credit on themselves and the profession.

• Promote the integrity and viability of the global capital markets for the ultimate benefit of
society.

• Maintain and improve their professional competence and strive to maintain and improve the
competence of other investment professionals.

Investopedia, 2019

https://www.investopedia.com/terms/c/code-of-ethics.asp

Ethical questions
In order for companies to operate ethically, their leaders

need to operate ethically. Here are some recommended

questions leaders should ask themselves before making a

decision

1) Would I be happy for this decision to be headline new

tomorrow (also know as the Sunlight Test)

2) Is there an ethical non-negotiable at play?

3) Will my action make the world a better place?

4) What would happen if everybody did this?

5) What will this do to my character or the character of my

organisation?

6) Is this consistent with my values and principles

Business Ethics and Morals

• Moral behaviour can profoundly benefit

people and immoral behaviour can do

harm.

– Are products healthful or harmful?

– Are work conditions safe or dangerous?

– Are personnel procedures biased or fair?

– Is privacy respected or invaded?

Who judges what is ethical

behaviour – Australia?

Urban Dictionary (2019)

LEARNING OUTCOME 4

Recognise the role frameworks of ethical

decision making in informing business

ethics

Activity

• Read this case study:

http://public.tepper.cmu.edu/ethics/AA/mgmt

17-case

• Using the ethical theory allocated to your

group draft a response to the person

concerned.

http://public.tepper.cmu.edu/ethics/AA/mgmt17-case

Process

for Applying the

Frameworks

1. Recognise an ethical issue exists

2. Identify and consider the parties involved

3. Formulate actions and consider alternatives

4. Make a decision and consider it

5. Act

6. Reflect on the outcome – are changes

necessary?

www.brown.edu/academics/science-and-technology-studies/framework-

making-ethical-decisions

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