A. Business Ethics: Ethics and Sustainable Development .... The Strategy of An Indonesian Game Developer in Introducing. Anti-Corruption ..... Principal hire the.
The Role of Educators & Students in Building
INTEGRITY Editor Prof. dr. Agus Suwandono, MHP.Dr.PH Prof. Dr. Sukron Kamil Pheni Chalid, SE., MA., P.hD. Dr. Irwansyah, MA. Dr. Jamin Ginting, SH., MH. Ries Wulandari, M.Si
Contents Foreword HeriBudianto ............................................................................................. iv
Contents.................................................................................................................vii Introduction
Ellen Goldberg .............................................................................................. xiv
Chapter 1. Business Ethics ............................................................... 1 A. Business Ethics: Ethics and Sustainable Development throughEducation ................................................................................................. 3 Ethics-Based Learning in Business School: Necessary but not Sufficient Arief Prima Johan -‐-‐ M.Ma'ruf -‐-‐ Niki Lukviarman (Andalas University, 1ndonesia) ...................................................................................................... ..4
Environmental Sustainability Issues: The Role and Contributions of Higher Eduaction Institutions M. Ma'ruf -‐-‐ Niki Lukviarman -‐-‐ Arief Prima Johan (Andalas University, 1ndonesia) ...................................................................................................... 19
Is it Ethical to Teach Ethics to The Computing Students? Examples from Institution of Higher Learning in Brunei Darussalam Afzaal H. Seyal -‐-‐ Mohd. Noah Abdul Rahman (1nstitut Teknologi Brunei, Brunei Darussalam) ....................................................................... 32
Ethics and Integrity Development: Towards Sustainable Business in Indonesia Yuhana Astuti (Telkom 1nstitute of Management Bandung, 1ndonesia) ................................... 54
B. Business Ethics and 1ntegrity: Ethics in Business Development ......................... 67 Outsourcing and Offshoring - Opportunities, Challenges, and Solutions for Socio-Economic Sustainable Growth And Integrity Business in Southeast Asia Countries: A Case Study of Vietnam Nguyen Minh Quang (Can Tho University, Vietnam) ........................................................................................................ 68
The Role of Locus of Control on Management Accounting Information Systems, and Its Implications on Managerial Performance (In order to Establish The Integrity Values of Business) ........................................... 90 Veronica Christina (Widyatama University, 1ndonesia)
Integrity PT. Astra International Through The Role of Coresponsibility in Education (Case Study: CSR Education PT. Astra International) \ Liza Dwi Ratna Dewi (Budi Luhur University, 1ndonesia)
105
C. Business Ethics and 1ntegrity: Ethics in Social Enterprises Development ................................................................................................... 115 Collective Action: A Case of Promoting Integrity and Accountability in Small and Medium Enterprise Ma. Ella C. Oplas (De La Salle University, Philippines) ............................................................................... 116
Building Potential Taxpayers' Integrity: A Case Study of Soegijapranata Catholic University Semarang Rini Hastuti (Soegijapranata Catholic University, 1ndonesia) ...................................................... 128
Analysis of Environmental Performance and Market Reaction to Environmental Performance Disclosure (Study on Manufacturing Companies Listed in Indonesian Stock)
Dr. Budi Rofelawaty, SE, M.Si.Ak. -‐-‐ Dr. Ir. Asfida Parama Rani, MM (ST1E Nasional, 1ndonesia) (ST1E 1ndonesia Kayutangi, 1ndonesia) ...... 151
Chapter II. Communication ............................................................
169
A. Communication: 1ntegrity and Ethical 1ssues in Media: The Growth of 1ntegrity in Media 1ndustry .................................. 171 Indonesian Television News Performance Concerning Freedom and Independence Morissan -‐-‐ Agustina Zubair (University of Mercu Buana, 1ndonesia) ....................................................................... 172
Rethinking about Integrity of the Journalists in Indonesia 1wan Awaluddin Yusuf, S.1P., M.Si. (1slamic University of 1ndonesia, 1ndonesia) ............................................................ 187
Implementing Integrity of Environmental Journalism (A Case Study of Indonesian Environmental Journalists' Performance, Ethics, Professionalism, and Integrity Amongst Complex Public Interests) Nevrettia Christantyawati, M.Si. (Dr Soetomo University, 1ndonesia) ............................................................................... 204
B. 1ntegrity and Ethical 1ssues in Media: The Application of 1ntegrity Values through Communication Media ................................. 219 TV Program: Integrity Representation of Indonesian Leader 1ra Dwi Mayangsari (Telkom 1nstitute of Management Bandung, 1ndonesia) ...................................... 220 Integrity Values of Public Media in Indonesia: Case Study Former "Beauty Queen" Angelina Sondakh Figure in Kompas Daily Newspaper December 2012 - January 2013 Gracia Rachmi Adiarsi -‐-‐ Yolanda Stellarosa -‐-‐ Daniari Setiawati (The London School of Public Relations, 1ndonesia) ................................................. 237
Values on Online Public Relations of Indonesian Hotels
Monika Sri Yuliarti
(Universitas Sebelas Maret Surakarta, 1ndonesia) .................................................... 246
C. 1ntegrity and Ethical 1ssues in Media: Emerging New Communication Media in Promoting 1ntegrity and Combating Corruption ...................... 259 The Challenges of Integrity Enforcement through Social Media Hadi Purnama, Drs., M.Si. (Telkom Bandung 1nstitute of Management, 1ndonesia) ....................................... 260 Twitter's Role in Enforcing Integrity in Indonesia Syafiq Basri Assegaff (Paramadina University, 1ndonesia) ............................................................................... 274 The Strategy of An Indonesian Game Developer in Introducing Anti-Corruption Values Ridwan Sanjaya, Ph.D. (Soegijapranata Catholic University, 1ndonesia) ...................................................... 246 Information & Communication Technology as An Integrity Tool in Managing Climate Change in The Philippines Maria Divina Gracia Z. Roldan, Ph.D. (De La Salle University, Philippines) ............................................................................... 306 D. 1ntegrity and Ethical 1ssues in Media: Communication Media for Education ............................................................................................ 319 The Future of Asean Integrity and Education Aims In a Digital Age: Pedagogical In The Age of New Media Siti Nur Aisyiyah (University of Mercu Buana, 1ndonesia) ....................................................................... 320 TOT for Preventing Maladministration in Education (A Case Study Conducted for Elementary Teachers Association in Wirobrajan District, Yogyakarta) Hermayawati (University of Mercu Buana Yogyakarta, 1ndonesia) ............................................... 334
Chapter III. Law ................................................................................
349
A. Law -‐ 1ntegrity and Law Enforcement in Corruption Cases: Corruption Prevention Challenges and Strategy ........................................ 351 Crime Prevention Strategy in Corruption Anastasia Reni Widyastuti (St. Thomas University, 1ndonesia) ................................................................................. 352 Integrity and Law Enforcement in Corruption Cases in Indonesia Amin Purnawan (Sultan Agung 1slamic University, 1ndonesia) ............................................................ 361
B. Integrity and Law Enforcement in Corruption Case: Legal Enforcers and Civil Society in Combating Corruption ................... 371 Corruption in The Ngabudi Ucing Strategy in Parliament at Bandung Junardi Harahap Rita Destiwati (Padjadjaran University, 1ndonesia) (Telkom Polytechnic, 1ndonesia) ........... 372 Analysis of Cause Corruption of Land Management (Case: Mark Up The Price of Land Acquisition for Construction of Office Building PLN Th Rayon Kuranji 2007 in The City of Padang) Indah Adi Putri, S.IP., M.IP. (Andalas University, 1ndonesia) ..................................................................................... 386 Mainstreaming Human Rights in Anti-Corruption Teaching: The Implementation of The United Nations Convention Against Corruption
Nukila Evanty
(Mahendradata University, 1ndonesia) ........................................................................ 396
C. Integrity and Law Enforcement in Corruption Cases: Rule of Law and Social Justice C o r r u p t i o n C r i m e : H u m a n R i g h t s V i o l a t i o n s i n T h e S o c i e t y W e l f a r e A c h i e v i n g S o c i a l J u s t i c e Sri Lestariningsih
4 1 5
(Brawijaya University, 1ndonesia) .................................................................................. 416
Understanding The Behavioral Typology of Judges in Handling Corruption Cases
M. Syamsudin
(1ndonesia 1slamic University, 1ndonesia) ................................................................. 425
Ripple Effect of Weakening Rule of Law (Case Study of Four Regions in Eastern Indonesia)
Theofransus Litaay
(Universitas Kristen Satya Wacana, 1ndonesia)........................................................ 442
Chapter VI. Public Administration ...............................................
451
A. Public Administration -‐ 1ntegrity in the Public Sector: 1m pl e me n ta ti o n of G ood P u bl i c G ov er na n ce ................... 45 3 Tr a ns p a re n cy o f I nf o rm a tio n fo r B u ild ing G o o d P ub li c G o ve rn an ce in Ind o ne si a Loina Lalolo Krina Perangin-‐angin, M.Si. (Swiss German University, 1ndonesia) .......................................................................... 454 Integrity of the Indonesian Supreme Audit Institution: The Gap between Vulnerability to Integrity Violation and the Integrity Control System Muhammad Wahyudi (The Audit Board of the Republic of 1ndonesia, 1ndonesia) ................................ 469
B. Integrity in the Public Sector: Establishing Good Procurement Systems ........................................................... 493 The Advantage of LPSE in Enhancing Transparency and Accountability on Public Procurement in Indonesia Wahyu Mahendra -‐-‐ Citra Yuda Nur Fatihah (University of 1ndonesia, 1ndonesia) ................................................................... 494
Corruption Network: The Case of Klong Darn Waste Water Treatment Sirilaksana Khoman (Thammasat University, Thailand) ......................................................... 511
C. Integrity in the Public Sector: Public Participation and 1nformation Disclosure ........................................... 533 Public Complaints and The Integrity of The Malaysian Public Sector: Issues, Trends, and Challenges from 2000 - 2012 Noreha Haji Hashim (Universiti Sains Malaysia, Malaysia) ...................................................... 534
The Role of the Hamlet (Dukuh) in Public Service Delivery: A Case Study in Nogotirto Village, Sleman, Yogyakarta Nur Faidati (Gadjah Mada University, 1ndonesia) ................................................................ 548
So cial Aud it P o ve rty Alle viation P ro g ram: Rice fo r The Po o r P rog ram at G unung Kidul District, D IY P ro vince Te nt i N ov ar i K ur n ia w at i (1DEA Association) ................................................................................562
D. Integrity in the Public Sector: Public 1ntegrity and Social Accountability ........................................................ 579 Social Capital in Public Service Operation Wawan E. Kuswandoro (University of Brawijaya, 1ndonesia) ................................................................. 580
Enhancing The Role of A University in Building Integrity in Public Service Through Community Service and Service Learning Programs Marcella Elwina Simandjuntak -‐-‐ Yuni Kusniati (Soegijapranata Catholic University, 1ndonesia) .......................................... ... 594
Chapter V. Public Health ..........................................................................613 A. Integrity and Public Health Formulation and Management: Challenges and Strategies in 1mproving Public Health Management ... 615 Adulteration in Food Business and Food Safety Concerns in Indonesia Bernadeta Soedarini -‐-‐ Ita Sulistyawati (Soegijapranata Catholic University, 1ndonesia) .......................................... ... 386
Barrier to Health Worker Adherence to National TB Diagnostic Algorithm Kurnia Dwi Artanti (Airlangga University, 1ndonesia) ......................................................... 626
'Informal Payments' and High Medicine Prices in Vietnam: A Qualitative Study Tuan Anh Nguyen -‐-‐ Rosemary Knight -‐-‐ Andrea Mant -‐ -‐ Geoffrey Brooks -‐-‐ Husna Razee (University of South Australia, Vietnam)........................................................................ 639
B. Integrity and Public Health Formulation and Management: 1mproving the Health Care System .............................................................. 659 Elderly Health Care System in Indonesia: The Need of Global Commitment for Improving Service Utilization Siti Masfiah, M.Kes, M.A. (Jenderal Soedirman University, 1ndonesia) ............................................................... 660
C. Integrity and Public Health Formulation and Management: Developing 1ntegrity Education in the Public Health Sector ................... 671 The Model Development of Integrity Education in the Sector of Health Finance (Case study in School of Public Health, Diponegoro University, Indonesia) Dr. Sutopo Patria Jati, M.M. (Diponegoro University, 1ndonesia) ............................................................................... 672
Module on Agriculture and Health for Ecohealth Training Course in Asia Indonesian Center for Agriculture Socio Economic and Policy Studies (ICASEPS), Agricultural Agency for Research and Development (AARD), Indonesia
Edi Basuno (1ndonesian Center for Socio Economic and Policy Studies (1CASEPS) Agriculture Agency for Research and Development (AARD), Ministry of Agricultue) Fang Jing (1nstitute for Health Sciences, Kunming Medical University, Yunnan, China) ............................................................. 681
Chapter VI. Religion ........................................................................
699
A. Religion -‐ Moral 1ntegrity through Religious-‐based Education: The Role of Religious Education in Combating Corruption ..................... 701 Eradicating Corruption with Religion: Tiger without Claws Drs. Jamalludin Sitepu, M.A. (Association of 1slamic Students, 1ndonesia) .............................................................. 702
How Does the Islamic Worldview Build Integrity? Dimas Bagus Wiranata Kusuma -‐-‐ Thaer Faisal Abdelrahim Qushtom -‐-‐ Nur Jamaluddin (1nternational 1slamic University Malaysia, Malaysia) ........................................... 715
Integrity in Christian Values in Problematic Social Relations: The Case of GKI Yasmin Riris Loisa (Tarumanegara University, 1ndonesia) ......................................................................... 730
B. Moral 1ntegrity through Religious-‐based Education: Creating An 1ntegrity Community through Religion-‐Based Science ...... 743 The Effect of Shalat Integrity on Daily Behavior and Subject's Values Akhmad Jayadi, S.E., M.Ec.Dev. (Airlangga University, 1ndonesia) .................................................................................... 744
The Integrity of Science and Charity: The Impleamentation of Surah Al Maun in Corporate Social Responsibility at Business Unit of Muhammadiyah Muhammad Najih Farihanto, S.I.Kom. (Ahmad Dahlan University, 1ndonesia) ........................................................................ 758
Building Integrity Through The Implementation of a Credit System Koko Srimulyo -‐-‐ Eduardus Bimo Aksono H -‐-‐ Ferry Efendi (Airlangga University, 1ndonesia) .................................................................................... 771
C. Moral Integrity through Religious-‐based Education: Religious Groups and Efforts in Combating Corrupting and Building Integrity .................................................................................... 779 The Roles of Nahdlatul Ulama and Muhammadiyah in Eradicating Corruption in Indonesia Akbar Meirio (President University, 1ndonesia) .................................................................................... 780
The Role of Religion in Combating Corruption: A Case Study of Indonesia's Nahdlatul Ulama in Integrity Education to School Children and Religious Preachers Ahmad Qisal -‐-‐ Nindita Paramastuti -‐-‐ Hasna Wihdatun Nikmah (Paramadina University, 1ndonesia) .............................................................................. 790
Muhammadiyah Effort in Eradicating Corruption and Upholding Public Integrity (A Case Study of Muhammadiyah East Jawa) Biyanto (1nstitut Agama 1slam Negeri Sunan Ampel, 1ndonesia) .................................... 806
Writers' Biography ................................................................................................ 821
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Ethics-Based Learning in Business School: Necessary but not Sufficient? Arief Prima Johan M. Ma'ruf Niki Lukviarman
Abstract Ethics scandals that occurred in business practices raises question on the importance of ethics-‐based learning in business learning/education, particularly within the context of higher education (business schools) that responsible to create future business leaders and professionals. The paper posits that teaching business ethics only as a course unit in business school is necessary but not sufficient. Sufficiency comes from ethics-‐based learning through embedding ethical values in any part of major business unit courses, such as functional management (i.e. marketing, finance, production/operation, human resources). As a corollary, the paper will reviewed the importance of ethics-‐based learning in every business course via instituting and integrating ethics-‐based learning from the holistic point of view. Several theoretical perspectives will be considered as the foundation to discuss such issues. For instance, traits theory argues ethics as a dimension of trait that hardly changed and relatively stable when someone reach his/her maturity. On the other hand, cognitive moral development theory (the psychological perspective) and learning theory (the behavioural perspective) posits ethics as one of fundamental cognitive and social behaviour that can be further developed and acculturated. it may be argued that the embedded ethics-‐based learning via business schools curricula and its supporting methods could improve business student's insights on ethical practices. Conclusion and policy recommendation will be presented at the end of paper. Keywords:
Ethics, Higher Education, Business School, Ethics-based Learning, Cognitive Moral Development
BUSINESS ETHICS: ETHICS AND SUSTAINABLE DEVEL0PMENT THR0UGH EDUCATI0N
1. Introduction Ethics scandal that occurred in today phenomena (e.g. gratification, corruption, cheating, sexual harassment), especially in business practice corroborate the need for embedding fundamentally ethical principle. Moreover, it is important to the young generation and the students who will be future practitioners in business world. It is higher education responsibility as one of educational institution to ensure the next generation has proper moral principle which based on good ethical values (Sims & Felton, 2006). The insistence has been emerged from institution and society to correctly integrate ethical course into higher education curriculum. This pressure need to respond comprehensively and strategically by higher education. It need a clear design to ensure the respond solve the problem correctly. It also needs to assure that institutionalization of ethics learning does not ended as political commodity or just simply lip rouge. Few following questions need to emphasize before further decision to institutionalize ethics learning into organization (i.e. Higher Education Institution). First, is ethical learning importance and could it be learned? Second, if it could be taught, are there some method could be used to teach. Finally, what role should be implemented by lecturer and institution to taught ethic effectively?
2. Several perspective about ethic learning Result on ethical research is not convincing, especially on learning method and institutionalization those methods to institutions (Hooker, 2004). Moreover, there are several popular sceptical argumentations that dominate ethical learning issue. For instance, popular argumentation from Milton Friedman (1970) argues that ethical responsible of business people is to maximize their company profit. Therefore, business people should learn functional course of business. Friedman suggest it is just wasting time for business people to learn and think about ethical issue. He underline his opposition against learning of ethic by suggest that
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"the nature of business is business". There are two reasons why ethical considerations are not the matter of business institution (Friedman, 1970). Business institution and business people is not qualified and have no right to perform activities for social purpose (Friedman, 1970;; Hooker, 2004). It is not qualified because business people expertise in making money, nor to create and promote social policy (Hooker, 2004). They also have no right to spend principal money to the social program which violates the basic concept of agency condition. Principal hire the agent to expect high return from their investment as soon as possible, instead wealth of society which directly resulted from their money (Hooker, 2004). Wealth of society will increase indirectly as consequences of business activity from provide work for society and low price from competition (Friedman, 1970). Friedman (1970) was considering the propriety aspect in making a business decision. He suggests maintaining propriety just needs roles play regulated formally which action is allowed or not. Hence, beside the obligation to learn about functional area of business, practitioners also need to study business law. Argumentation from Friedman sound too sceptical and presumption toward certain condition, it is too straight forward. He ignored the incomplete of legal system and occurred of opportunistic behaviour. Law tend to order and separate which standard behaviour is right and wrong, while ethic have no formal consensus which value behaviour in propriety way or not. This propriety often derived from culture in which each environment has different culture and in turn have different ethical propriety standard. Since behaviour is ordered from standard right or wrong in law perspective, there is an ethical gaps occurred between the right behaviour according to the law and appropriate behaviour according to ethic. Opportunistic behaviour perspective could explain clearer how straight forward and unpractical Friedman's argument is. Opportunistic behaviour is an action to taking self advantage from certain situation with little consideration about proprietary and appropriateness (i.e. often ignored ethical consideration). If it is not
BUSINESS ETHICS: ETHICS AND SUSTAINABLE DEVEL0PMENT THR0UGH EDUCATI0N
always, the advantage that took from these situations tend to harm others. This is not always unlawful behaviour, for instead a manager manages corporate profit to increase their power against principal. Many example of scandal that occurred in business world such as Enron phenomenon, gratification to government official, and corruption prove that opportunistic behaviour even push people to behave inappropriate in formally ordered (i.e. by law) situation. It can be said that the existence of law is not guarantee people to behave ethically or ensure that every people will abiding those law because opportunistic behaviour is presence in human attitude. These argument supported by Uhlig and Howes (1967) work. Their social experiment on cheating behaviour in high and low control and rules. Results suggest that third students from the class do cheating in low control (i.e. opportunistic situation). Even in tightly control situation, a few students still cheating. Opportunistic behaviour is also occurred in profit management research. Managers tend to exploit asymmetric information they have to increase their bargaining position toward shareholders (Sun & Rath, 2008). Proposition 1: opportunistic behaviour tends to lead unethical action even in strictly ordered circumstance. Therefore, business ethic should be learned in order to reduce the effect of opportunistic behaviour. Hooker (2004) cites from moral development perspective which suggest that ethical value is develop in childhood, and it is too late to develop or change these values when people has been studied in business schools. It is implied that ethics as one of human characteristics that could not develop or change after maturity. People tend to bring their learning result from childhood as part of their mature character that hardly to change (Sims & Felton, 2006;; Miller, Burke, & Glick, 1998;; Chattopadhyay, Glick, Miller, & Huber, 1999). They argue that learning in mature age is believed if not always, could not change people character. Generally these arguments conclude that foundation of people behaviour that derived from his or her characteristics is also hard to change. Many researchers agreed that personality such as value, BUSINESS ETHICS
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attitude, and personality hardly to change because it has been embedded and build simultaneously along with experience in a long time period (Miller et al., 1998;; Chatopadyay et al., 2000;; Weber, 2007). Essentially, characteristics is build and develop, not a given things or came by itself. Basic of cognitive moral development theory suggest that people characteristics are interaction of experience, education, and maturity (Kohlberg, 1969 in Weber, 2007). Hence, the sceptical conclusion about ethics learning from moral development in Hooker's paper is not derived from complete critical analysis and nor completely right. Although the characteristics is hardly to change in maturity age but it is still possible to do. Moreover, basic theory of cognitive moral development argues that education could develop and change characteristics of person. Some research from learning perspective have supported these argument that attitude, as a reflection of ethical value, could change in certain situation (Ajzen & Fishbein, 1977;; Gawronski & Bodenhausen, 2006;; Webster, Chan, Prosses, & Watkins, 2009). Learning theory is also counter these perspective. This theory suggests that learning process could change the foundation of people behaviour (Bandura, 1977) . As long as the condition of learning support targeted behaviour and perform continuously, the behaviour will change. One important aspect to successful learning is conditioning the environment accordance with learning objective. It will change people behaviours through habituation that lead to acculturated behaviour into people mind. New behaviour that came from learning process can be say as new core value that occurred from habituation and acculturation of these targeted behaviour. Leadership theory in transformational leadership style can use to arguing the sceptical argument about ethics learning. Bass (1997) proposed the essential of transformation process as efforts to change or transform subordinate's behaviour into certain behaviour that expected by organization. This transformation is interaction of intellectual stimuli, personal consideration, and environmental conditioning by leaders. Although there was a lack of evidence shown that subordinate behaviour was changed, but many researchers who
BUSINESS ETHICS: ETHICS AND SUSTAINABLE DEVEL0PMENT THR0UGH EDUCATI0N
find out the positive effects of transformational leadership style in employee's performance is an indication that behaviour is changed (Bass, 1997;; Barling, Slater, & Kelloway, 2000;; Xenikou & Simosi, 2006). Based on two perspective explained in previous discussion, it suggest that ethics behaviour, even core ethics value could be modified, developed, and changed. It also need to be understand that changing ethical characteristics of person is not easy effort. It need certain situation, specific targeted behaviour and manipulating the environment of learning. Most importance is these approaches should implement interactively and consistently over time until the expected behaviour occurred from person (Bandura, 1977). Since, the lecturer have role to lead students and have capability to create and manipulate certain situation in the class to support learning of ethics. Therefore, we argue that ethics learning can be done and could implement in higher education. Proposition 2: ethical learning can be done and have optimistic possibility to success. Traditional in class ethic teaching is sufficient to teach student about ethical knowledge. It can be used to deliver concepts about ethic, considering the concept with culture, sharing information about certain ethical issue, and discuss ethical dilemma in business world. However, this approach is not sufficient in order to embedding ethical value into students character. Especially if the teaching objective is to change students characteristics and value system. Changing personal characteristic and value system need certain condition and continuous learning until specific behaviour that expected occurred (Bandura, 1977). Besides, it also need inspiring condition to ensure these values have been got from learning process is understood and embedding into personal characteristics. For instead, integrating some practical case using ethic perspective, give an example of inspiring ethical behaviour, formulate several rules in class according to ethical principle (e.g. cheating consequences), and reward some ethics behaviour. In order to make these appropriate condition for ethic learning, BUSINESS ETHICS
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ethical consideration should incorporate in every course unit, at least in each of functional courses (i.e. marketing, finance, human resources, and operational). It is useful approach to give added perspective on certain course topic and could use as habituation that acculturated to students thinking when facing real business phenomena. Inuring to consider is more perspective, especially ethical perspective increase spectrum of personal cognitive moral development (Weber, 2007). People with higher cognitive moral development associate with higher ethical value that came from more consideration beside his/her egoistic self interest in making decisions (Weber, 2007). Business ethics course also does not sufficient to prepare students facing ethical dilemma in real business world. Actually, every decision in business practice consist of many ethical dilemma (Sims & Felton, 2006). Especially in major function of business such as marketing, finance, human resources, and operational. It is need to be understood that ethic is not separated issue in business, but it is integrating with every business process. Consequently, business learning should be incorporated in every course in business study and seen as integral issue that could not separate from business learning. At least, ethical consideration should include in each course of major business functional (i.e. marketing, finance, human resource, and operational)
Proposition 3: Business ethics as course unit is necessary but it is not sufficient in order to embedding ethical values. Sufficiency comes from ethics-‐based learning through embedding ethical values in any part of major business unit courses(i.e. marketing, finance, human resource, and operational).
3. Methods for ethics learning There are many method have been proposed by researcher in order to teaching ethic in business schools. McDonald (2007) said that method of teaching business ethic have been explored in descriptive, perspective, and analytical perspectives. Many business
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BUSINESS ETHICS: ETHICS AND SUSTAINABLE DEVEL0PMENT THR0UGH EDUCATI0N
schools also do the same (Sims & Felton, 2006). For instead, the Haas school of business at University of California at Berkeley has it students to learn from mistakes of convicted white-collar criminal by actively interact and discuss with them (Sims & Felton, 2006). Felton and Sim (2005) proposed targeted outputs method in ethics learning. This method is using traditionally formal class. Rather than proposed specific technique on teaching method, Felton and Sim (2005) suggest that lecturer to look over specific targeted output they hope to reach by students on the first step. They argue, often teaching of ethics is not seen have specific output. Hereafter, lecturer can think about his or her teaching technique, syllabus, rules, assessments, and evaluation of students and matching its with the specific targeted output. Felton and Sim (2005) suggest that specific targeted output of learning must cover at least three learning objectives: learning should focus on develop knowledge based of students theoretically about ethical concept. Objective should focus on analyze issue facing by business practice in real business situation. The last objective should focus on concept and practice of ethics equally. They also suggest that it is importance to align with cultural contextual because it can separate between ethical and unethical behaviour. Sim and Felton (2006) proposed active learning method using inductive technique. They suggest ethics learning should based on experience and value system of the student. That is why inductive approach should be applied. This method required open and trust discussion in the class. One of objective from this method is that learning outcome can embedded longer in students mind and character. Moreover, they could challenge, review, and even change their value system or core ethics principle that unexamined. To implement this approach, teachers should ensure that appropriate condition of learning to support the goals and expected outcomes are occur (Sims & Felton, 2006). Both lecturer and students must create open and comfort environment to discuss. It is importance to ensure students feel disposed to share their ethical experience and opinion to entire class. BUSINESS ETHICS
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4. Role of lecturer in ethics learning Lecturer have significant role in learning processes both in delivering the knowledge and develop or change student's behaviour. Especially in ethics learning, lecturer has more significant and responsible roles in order to embedding ethics value and shaping students behaviour. This work is more difficult and challenging than ordinary knowledge transfer from lecturer to students. Several roles should be done by lecturer;; they are not only as lecturer but also educator. Lecturer becomes a conditional maker to manipulate learning environment, delivering deeply understandable knowledge, and being ethical manager to organize learning process.
4.1. Role as an educator Being an educator is not only about delivering the knowledge, but also create a proper habit, behaviour, and skills. Especially in learning process, educator should use inspire and transformative process to ensure the objective of learning is deeply embedded in student character. As a term, teach or teacher and educate or education have different meaning. Teach refer to giving a guideline or knowledge to be known, make people understand about the knowledge or information that delivered by teacher. Meanwhile, educate refer to maintain, practice, and give insight about morality and mind. Its implied that educate has broaden meaning than ordinary teach. Work of an educator is to change attitude and behaviour of students in order to increasing the maturity. Realizing the ethics study is process of learning, the lecturer (educator) should take into account the expected behaviour of the output of learning. Syllabus, course work, material, technique, assessment should refer to the objective. The most importance of being educators is incorporating the ethical value into knowledge that delivered. Good educators expected to know the students and how they learn, know the content of knowledge and how to teach it, make plan and implement the effective teaching and learning, create and maintain supportive and safe learning environment, assess, 19
BUSINESS ETHICS: ETHICS AND SUSTAINABLE DEVEL0PMENT THR0UGH EDUCATI0N
provide feedback and report o student learning (Sims & Felton, 2006;; Celik, 2011). As considered in early article, ethic course should integrate with other course work. Hence, that approach should not only apply in business ethic course, but also in each course of business study. At least in every functional course, beside making specific objective about their primary course, lecturer need to include ethical objective of student's thought and behaviour. The syllabus, condition, material, rules, and assessment have to include the ethical value and consideration. 4.2. Role as conditioning makers The important thing in successful learning is appropriate condition to support the process and goal achievement (Bandura, 1977). It is lecturer job and responsible to maintain that condition over time. Lecturer should maintain suitable condition to employ active learning. Students need comfort condition to ensure they can and willing to discuss and share their ethical dilemma openly with entire class. Sims and Felton (2006) suggest few condition to support ethic learning. Learning environment should be based on a psychological contract of reciprocity. It mean that mutual and balance of getting and giving in the class interaction. Traditionally, student often just get and lecturer often just give. Getting is expected condition that should be occurred in learning process (Sims & Felton, 2006). Lecturer need to ensure that condition of learning should emphasize the personal experience of both lecturer and students. Since learning process is build upon both getting and giving, the process need to mutually interaction between lecturer and students about their knowledge and experience on ethical issue. The process also needs responsibility for the learning of other. It implied that students have to realize that their present and involvement on discussion is part of learning of others.
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4.3. Role as knowledge deliver Lecturer need to be expert on his or her primary course and have insight understanding about the concept of ethics. Good competencies on both primary course and ethical concept can assure the knowledge that delivers to the students is incorporate with ethics consideration appropriately. It also ensures the contextual condition such as culture, law, and regulation that blend and integrate with the theoretical concept of primary course and ethics. As note before, ethical value cannot separate from cultural value. Both ethic and culture is mutual support each other. As knowledge deliver, lecturer responsible to help students understands their core value, either conceptually or contextually (Sims & Felton, 2006). Students need to understand their core ethical value, so it could be internalized into their thinking. Ethical value which deeply embedded in students thinking is incorporate with their value system and bounded rationality in turn drive the action or decision they chooses (Finkeilstein, Hambrick, & Cannella, 2009). Lecturer is also responsible to challenge students to thinking over about their ethical value. Since ethical value of student absorbed from other and formed from childhood environment, family, peers and early education that value is remain unexamined (Sims & Felton, 2006). Sim and Felton (2006) argue often these values have not been critically questioned and analyzed. When the ethical value does not align with contextual condition or even with conceptual, its best review and have bigger probability to change if student thinking over her/his ethical value by his or himself. Role as ethics manager Considerate that ethics is build upon learning process with emphasize through certain habit or manners, lecturer have to assure ethical behaviour occurred in the class. It also should be over time and consistent condition. Both lecturer and student should shown down behave ethically either in the
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BUSINESS ETHICS: ETHICS AND SUSTAINABLE DEVEL0PMENT THR0UGH EDUCATI0N
class or outside class. It is important to make sure student's opinion toward their lecturer capability not only teaching them about knowledge or ethics knowledge but also as role model in ethical behaviour. Being ethics managers means that lecturer also plan certain standard of ethical behaviour that could be accepted. It should communicate and implement to the entire class include lecturer itself. That standard used as attitude and behaviour contract between each other in the class. So that, lecturer is not only using power to lead as a leader, but also authority as manager to make sure that contract is obeyed. Lecturer should control those contract implement fairly among the students and himself. Central control should be on the lecturer but it has to communicate clearly about the consequent to whoever disobeyed the contract. It also means the consequences for lecturer himself if he violet that contract. Finally, lecturer needs to evaluate the ethical behaviour of students. He needs to give reward to good and ethics behaviour, and punish the bad and it is not ethics behaviour. One of procedure could be applied is give a score to the students behaviour objectively based on their obedience toward contract of ethical behaviour.
5. Institutional role in embedding ethics learning Many researchers (Hoffman & Moore, 1982;; Hartog & Frame, 2004;; Weber, 2007;; McDonald, 2004) use curricula approach to incorporate ethics teaching in institution. By teaching ethics separately, knowledge about ethics concept and practical issue could explore and deliver more effectively and provide deeper understanding. This approach could be more effective because of it has grater focused than just considerate ethics issue superficially in other course. By teaching ethics separately from other course, cultural fit with core ethical value which teaches could be more suitable.
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Since ethic issue is incorporate with almost every business decision, the approaches to teach ethic in separate course unit is not sufficient. Each course has contextual issue in ethic decision (Sims & Felton, 2006). For instead, operational management need to considerate healthy factory environment for the worker;; while human resources course should considerate fairness of compensation and benefit among worker. Sufficiency of ethic learning should come from deeply embedding ethical issue in every course in business curricula. We suggest that institution should accommodate both approaches in their curricula. It needs to consider insight understanding about conceptual issue, cultural fit, and functional consideration in ethics. So that, both ethic course as separate course unit and deeply embedding ethic ethical issue in other course in business schools curricula need to be employed. It should not see as one is for support another, but should be understood as integrative approach which need equal accentuation and emphasis. To ensure these two approaches implement successfully, institution need to encourage their faculty members to understand the knowledge about ethical concept. Embedding ethics issue as part of ethics learning in functional course require lecturer who deeply understand both his primary course and knowledge about ethics. It will be more effective if the lecturer on functional course also have insight about culture. Higher education institution should give more emphasize and encourage their faculty members to do research in ethics area by provide more grant. This program can use to improve faculty expertise on ethics issue and make them more often interact with ethical issue. In so, more often the faculty interact with ethics issue, they will more sensitive and pay more attention about the issue. Still, the institution also needs to manipulate suitable condition to attract sharing between faculty members about ethics in formal and informal academic discussion. Institution could use Sims and Felton (2005) and Felton and Sims (2006) suggestions to formulate curriculum with embedded
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of ethical consideration. It needs to make specific targeted output from ethics learning program intuitionally. Make standard condition to manipulate learning environment for both faculty and students. Integrating some relevant content to applied in both ethics course and functional course that need to embed with ethical considerations.
6. Conclusion Business schools have responsibility toward occurring some of ethics scandal should be pay more attention to solve these problems. They should take seriously to teach young generation about business knowledge on ethical based. Many methods could be used to apply. But more importance is design of that method must be comprehensively and interactively to ensure embedded of learning output into students mind. Embedding ethic need to emphasize in each part of higher education institution and involved every civitas.
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