To pass this unit (requires a Standardised Numerical Grade of 50 or better) the student must pass the final examination.

CLASSES

Face-to-Face Teaching: Generally 20 hours

Timetable: Detailed timetable for classes are on the Centre’s web site www.mafc.mq.edu.au

Consultation Times: 

Students who wish to contact any of the teaching staff may do so through:

• The Unit’s iLearn site, in relation to general queries (so that all students may benefit); or
• Individual consultation with the lecturer by email in the first instance, if necessary.

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Suggested Text: Standards of Practice Handbook, 11th edition. CFA Institute, 2014. Available from : https://www.cfainstitute.org/learning/products/.../ccb.v2014.n4.1.aspx

Additional Readings: 

• Additional readings are included in the Unit notes and will be placed on iLearn.
• Students should assume these readings are not examinable unless otherwise advised.
  • Ahner, G. Business Ethics: making a Life, not just a living, orbis, 2007.
  • Asher, A. Working Ethically in Finance: Clarifying our Vocation, Business Expert Press, 2014. https://www.businessthink.unsw.edu.au/Pages/Maintaining-integrity-Anthony-Asher-on-an-ethical-life-in-finance.aspx
  • Arvelund, E. Madoff: The Man Who Stole $65 Billion, Penguin, 2009
  • Arvidsson, A. & Peitersen, N. The Ethical Economy: Rebuilding the Value after the Crisis, Columbia UP, 2013.
  • Badaracco, J.L. Jr Questions of Character: Illuminating the heart of leadership through Literatures, Harvard Business School Press, 2006.
  • Bartos, S. Against the Grain: The AWB Scandal and Why It Happened, UNSW Press, 2006.
  • Brown, M.T. Corporate integrity: Rethinking Organizational Ethics & Leadership, Cambridge UP, 2005.
  • Batstone, D. Saving the Corporate Soul, Jossey-Bass, 2003.
  • Beed, C & C. ‘Christian and Islamic Economics’, in their Alternatives to Economics, University Press of America, 2006, ch. 5
  • Coady, M. & Bloch, S., Codes of Ethics & the Professions, Melbourne University Press, 1996.
  • Duska R, Duska, B.S. & Ragatz, J. Accounting Ethics, 2^nd edition, Wiley-Blackwell, 2011.
  • Friedman, T.L. The Lexus and the Olive Tree, Farrar, Strauss & Giroux, 2008.
  • Friedman, T. L. The World is Flat, Farrar, Strauss & Giroux, 2005.
  • Friedman, T.L. Hot, Flat and Crowded: Why We Need a Green Revolution, Farrar, Strauss & Giroux, 2008
  • Fukuyama, F. Trust: The Social Virtues and the Creation of Wealth, New York, Free Press 1995
  • Grace, D & Cohen, S. Business Ethics: Australian Problems and Cases, Oxford UP, 4th. ed. 2009.
  • Gregg, S., & Preece, G.R. Christianity & Entrepreneurship, Centre for Independent Studies, 1999.
  • Gleeson-White, J. Six Capitals: The Revolution Capitalism Has to Have or Can Capitalism Save the Planet? , A&U, 2014.
  • Higginson, Richard, Questions of Business Life, Paternoster, 2002.
  • Hill, A., Just Business, Downers Grove, Intervarsity Press, 1997
  • Kinsley, M. ed. Creative Capitalism, Simon & Schuster, 2009.
  • Klinger, K. Confessions of ethical investing: A Personal and social journey, Palmer Higgs, 2014.
  • Longstaff, S., Hard Cases, Tough Choices: Exploring the Ethical Landscape of Business, Macmillan 1997
  • Longstaff, S. and Preece, G.R., Interface: Corporations, Conscience and Charity, ATF Press, 3/2 October, 2000
  • Markopolos, H. No One Would Listen: A True Financial Thriller, Wiley, 2010
  • Mellahi, K. & Wood. G, the Ethical Business, Palgrave McMillan, 2003.
  • Novak, M., Business as a Calling: Work and the Examined Life, Free Press, 1996
  • O’Brien T, Collier E., Flanagan, P., Good Business: Catholic Social Teaching at Work in the Marketplace, Anselm, 2014.
  • Pattison, B.S., The Faith of the Managers: When Management Becomes Religion, Cassell, 1997.
  • Piketty, T. Capital in the 21^st Century, Belknap/Harvard, 2014.
  • Preece, G.R., Changing Work Values, Acorn, 1995.
  • Preece, G.R. Rethinking Peter Singer, IVP, 2002.
  • Preece, G.R., ‘Corporate Psychopathology, Limited Vision and the James Hardie Case in D. Hynd, J. Barr and G. Preece ed. Theology in a Third Voice, ATF Press, 2006.
  • Preece, G.R. Moth and Rust Consume: Christ, Wealth and Continuing Financial Crises, forthcoming.
  • Rowland, W…,. Greed inc. Why Corporations Rule our World Thomas Allen,2005.
  • Ruggie, J.G. Just Business: Multinatinoal Corporations & Human Rights,Norton, 2013.
  • Salter, M.S. Innovation Corrupted, Harvard, 2008.
  • Sandel, M. J. What Money Ca’t Buy: The moral Limits of Markets, Penguin, 2012.
  • Sennett, R, The Corrosion of Character, New York, WW Norton, 2000
  • Solomon, Robert C., A Better Way of Thinking about Business: How Values Become Virtues, Oxford University Press, 1999
  • Weil, D. The Fissured Workplace: Why Work became So Bad for so Many 7 what Can be Done to Improve It, Harvard, 2014.
  • Trompenaars, F. Riding the Waves of Culture: Understanding Cultural Diversity in Business, Nicholas Brealey, 1995.
  • Veseth, M. Globaloney: Unveiling the Myths of Globalization, Rowman 7 Littlefield, 2005.
  • White, C. & Preece G., ‘Professions, Business and MacIntyre – Fellow Travellers?’, in Interface, Adelaide, ATF Press, 2012.
  • White Chris, ‘’Professional Practice in a Fallen World: A Calling, or a Business?… Or, Merely Work? in D. Hynd, J. Barr and G. Preece ed. Theology in a Third Voice, ATF, 2006
  • Wright, C. The Business of Virtue, SPCK, 2004.

Lecture Notes: Available in printed form and electronically via iLearn.

Pre-Unit Materials: Information papers on statistics, regression, accounting and other material may be found at http://www.mafc.mq.edu.au/applications/minimum-knowledge-requirement/pre-course-materials1/. All students should work through this material prior to commencing the degree.  The material will remain a useful reference as Students progress through the program.

Useful References:

• Scott B. Rae & Kenneth L. Wong, Beyond Integrity, Zondervan, Third edition 2009.
• Stackhouse, Max et. al. On Moral Business: Classical and Contemporary Resources for Ethics in Economic Life, Eerdmans, 1995. www.koorong.com.au or  www.amazon.com

Assumed Access:

• Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy.

TECHNOLOGY USED AND REQUIRED

Unit iLearn Site: 

• Found by logging on to iLearn ilearn.mq.edu.au, then clicking on Ethical Risk in Finance.
• This is where you will find links to forums, downloadable resources and other important pages.
• Forums allow you to communicate with other students and lecturer(s) and may provide supplementary material.
• You are requested to post questions to the forum at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Please try to not leave your questions to the last few days.

Important Notice: 

• It is important that you familiarize yourself with iLearn.
• All students should check iLearn regularly (minimum twice a week and prior to all lectures) and look for updates and distribution of materials (including case studies) related to the unit or assessments and, if relevant, participate in forum discussions.

SESSION 1 - ETHICAL FRAMEWORKS – PHILOSOPHICAL AND RELIGIOUS

Topics: 

• Personal Introductions & administration
• What is Ethics?
• Types of Ethics          
  • Deontological or Command based ethics
  • Virtue or Character Ethics
  • Teleological, Utilitarian or Consequentialist ethics
• Case Study 1 – How far to go in competition?
• How to be good in Finance?

SESSION 2 - CONTEMPORARY CONTEXT

Topics: 

• Globalisation: Global Village or Pillage?
• Globalisation and the Global Financial Crisis
• Peter Singer video  & Discussion re Globalisation & Ethics
• Case Study – AWB, Bribery and Relativism

SESSION 3 - THE ETHOS OR CHARACTER OF THE CORPORATION

Topics: 

• Case Study – James Hardie –Professional and Board responsibilities when profit and employee and public health conflict are in conflict?
• ‘The Corporation’ – DVD – Are Corporations Psychopaths?
• Strengthen Codes and Regulation or Professional Business Culture & Character?
• Professional roles and tensions
• Working Lunch –with assisted preparation for Sunday’s Assessed Group Debate on Corporate Social Responsibility and Investment

SESSION 4 - FIDUCIARY RESPONSIBILITIES & FINANCIAL TRANSPARENCY

Topics: 

• Case Studies:
  • Andersen (see HBS handout)
  • The Enron Effect – DVD (The Smartest Men in the Room)
  • Madoff & Markopolos – how would a code of conduct have helped?
• Business as a Moral/Professional Practice?

SESSION 5 - CASE STUDIES OF SOCIO-POLITICAL PHILOSOPHIES & BUSINESS ETHICS

Topics: 

• Libertarianism – Profit alone
• Liberalism – Profit and Equality
• Communitarianism and the common good
• Contemporary case studies

SESSION 6 - CORPORATE SOCIAL RESPONSIBILITY

Topics: 

• Stockholders vs. Stakeholders – Friedman & co. vs. Freeman & co.
  • Six Capitals: The Revolition Capitalism Has to Have
• Working lunch preparing for debate
• Debate on Corporate Social Responsibility
• Conclusion and Revision – Finance as a Moral Practice/Profession?

This Unit Guide may be subject to change. The latest version is on the Centre’s web site www.mafc.mq.edu.au.

Students should read the Unit Guide carefully at the start of semester.  It contains important information about the unit.  If anything is unclear, please consult one of the unit lecturers.  

University Policy on Grading:

• Macquarie University’s Academic Senate has established a Grading Policy available at http://www.mq.edu.au/policy/docs/grading/policy.html. Your final result will include: 
  • A grade ranging from Fail to High Distinction; and
  • A Standardised Numerical Grade (SNG). A SNG is not a summation of the individual assessment components, but is allocated on the basis of the performance in all assessment items, providing the examination component is passed.
• It is important to note:
  • The Policy does not require that a minimum or maximum number of students are to be failed in any unit; 
  • Grades will not be allocated to fit a predetermined distribution; and
  • The process of allocating SNGs does not change the rank order of marks among students who pass the unit. 

Specific Unit Grading: 

• To pass this unit (requires a Standardised Numerical Grade of 50 or better) the student must pass the final examination.
• All final grades in the Applied Finance Centre are determined by a grading committee and are not the sole responsibility of the unit convenor.
• The core criteria used to assess student work in this unit are: 
  • Knowledge and understanding: Understanding key ideas, knowledge and use of concepts.
  • Application: Ability to apply theoretical ideas and frameworks in practice and in a critically reflective way. 
  • Reasoning and analysis: Ability to analyse, use critical reasoning and principles to formulate a position, balancing theory and personal reflection. 
  • Professional literacy and research: Understanding of professional factors (language and landscape) and ability to undertake appropriate research. 
  • Communication and presentation: Ability to communicate and present effectively (written and oral, as relevant).
  • Use of mathematical and statistical ideas: Ability to use mathematical and statistical ideas, methods and formulae appropriately. 
• Performance in relation to each of these criteria are assessed against the University’s grading descriptors:

Review of Grade and final examination Script viewing:

• A student who has been awarded a final grade for a unit and who does not believe it is an accurate reflection of their performance, and has grounds for such a claim and can demonstrate those grounds, may apply to have their grade reviewed. 
• For information on requesting a review of grade and/or viewing your final exam script, please refer to the University’s Grade Appeal Policy at http://www.mq.edu.au/policy/docs/gradeappeal/policy.html and MAFC Program Rules & Procedures at http://www.mafc.mq.edu.au.