Prof Alexander Pepper NAB 4.30

This course is compulsory on the Global MSc in Management, Global MSc in Management (CEMS MiM) and Global MSc in Management (MBA Exchange). This course is not available as an outside option.

This is a second year core Global Masters in Management course and is not available to any other students.

This is a second year course for Global Masters in Management students so students on this course must have successfully completed the first year of the programme.

This is a core course for second year GMiM students. The purpose of the course is to help students to understand key ideas in business ethics, corporate governance and leadership, to prepare them for future leadership roles. Business leaders have a special role to play because of their ability to determine an organisation’s mission, vision and values, how companies should be governed and led, and the ethical standards which business should aspire to.

In the first part of the module, we consider two historical approaches to the ethical responsibilities of managers. According to the shareholder approach, the interests of shareholders take priority over the interests of other stakeholders. According to the stakeholder approach, managers are morally obliged to balance competing stakeholder interests in their decision-making. We discuss how both these approaches are importantly incomplete, and how a more recent approach, the so-called “market failures approach”, may provide a viable alternative.

In the second part of the module we look at corporate governance, focusing on the dominant Anglo-Saxon model based on the concept of “shareholder primacy” and principal-agent theory, but also considering international comparisons. We examine the different roles of directors, managers and the main board.

In the final part of the module we look at organisational leadership in the context of business ethics and corporate governance. We examine various models of organisational leadership, including Michael Maccoby’s thesis that many business leaders today are “productive narcissists”. We consider whether leadership skills can be learnt and if so how.

Our teaching encourages students to address questions such as:

• What obligations do business leaders owe to shareholders, employees, customers and other stakeholders?
• Are normative questions of “character” relevant in an organizational context?
• Is the Anglo-Saxon model of corporate governance relevant in Continental Europe, Asia-Pacific, and emerging economies? 
• What is the difference between governance and management?
• What is the difference between management and leadership?
• How does personality-type affect leadership styles?
• Can leadership skills be learnt?

15 hours of lectures and 15 hours of seminars in the LT. 1 hour and 30 minutes of lectures in the ST.

Students will be expected to produce 1 piece of coursework in the LT.

The formative assignment will involve the preparation of a detailed 1000 word assignment plan for a business case analysis involving issues relating to leadership, corporate governance and business ethics.

Friedman, Milton (1970): "The Social Responsibility of Business is to Increase its Profits", New York Times Magazine, Sept. 13. 

Donaldson, Thomas; Preston, Lee E. (1995). "The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications". Academy of Management Review. Academy of Management. 20 (1): pp.70-

Heath, Joseph (2014): "A Market Failure Approach to Business Ethics", in Morality, Competition, and the Firm: The Market Failures Approach to Business Ethics, pp. 25-41. Oxford: Oxford University Press.

Chapter 1, “Cycles of Governance”, in Clarke, Thomas (2017)   International Corporate Governance, 2nd Edition. Abingdon, Oxon & New York, Routledge

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). “Toward a Stewardship Theory of Management”. Academy of Management Review, 22(1): pp. 20-47.

Maccoby, Michael (2000) “Narcissistic Leaders” Harvard Business Review. 78 (1) pp.68-77   

Goffee, Robert., & Jones, Gareth (2000) “Why Should Anyone Be Led by You”. Harvard Business Review, 78 (5) pp. 62-70

In addition to the core readings, students will be encouraged to read more widely in:

For weeks 2-4:  Heath, Joseph (2014) Morality, Competition, and the Firm: The Market Failures Approach to Business Ethics. Oxford: Oxford University Press.

For weeks 5-7: Clarke, Thomas (2017) International Corporate Governance, 2nd Edition. Abingdon, Oxon & New York, Routledge. 

For weeks 8-11: Maccoby, Michael (2007) The Leaders We Need: And What Makes Us Follow. Harvard Business Review Press.

Project (100%, 3000 words) in the ST.

Assessment will be by a 3000 word business case analysis involving issues relating to leadership, corporate governance and business ethics. The assignment will be set in Week 7 of LT and due for submission in the first or second week of ST, allowing students to work on their assignments over the Easter vacation