Addis Ababa University
Department of Management
Course Outline for the Course:
Course information:
Course name: Business Ethics and Corporate Social Responsibility
Course Code: MGT 4231
Credit Hours: 3
Course Speaker :- Jemal Mohammed (PhD), Assistant Professor
Course Description
This course introduces students to the fundamental concepts of business ethics and corporate
social responsibility (CSR). It explores ethical theories, decision-making frameworks,
stakeholder management, and the role of corporations in addressing social, environmental, and
governance challenges. Students will apply ethical reasoning to business dilemmas in Ethiopia
and globally and critically examine CSR practices in Ethiopia. The ultimate intent of the course
is to enable students better equipped to identify, think critically about, and resolve ethical issues
that are encountered in one’s working life at the individual, organizational, and societal levels.
Course Objectives
By the end of this course, students should be able to:
Understand the principles and theories of ethics and their application to business.
Identify and evaluate ethical issues in business cases in Ethiopia
Examine the role of CSR in sustainable business practices
Demonstrate awareness of Ethiopian legal and cultural perspectives on ethics and CSR.
Propose CSR initiatives that balance profit with social and environmental responsibilities.
Course Topics & Weekly Breakdown
Week 1–2: Chapter One- Introduction to Business Ethics
Definition and scope of business ethics
Morality, Ethics, and ethical theory
Importance of ethics in business and society
Globalization
Sustainability
Week 3–4: Chapter Two - Ethical Theories and Decision-Making
Why Ethical theories Matter
Major Ethical Theories
o Consequentialist Theories (Utilitarianism)
o Non-consequentialist theories (deontological, Virtue ethics, Justice, Ethics of care, etc)
Ethical decision-making models
Case study analysis or application Exercise
1
Week 5: Chapter Three- The Corporation and Stakeholders
Shareholder vs. stakeholder perspectives
o Stakeholder Mapping Activity /Exercise
Corporate governance
Ethical leadership and accountability
Week 6–7: Chapter Four - Corporate Social Responsibility (CSR)
Definitions and evolution of CSR
CSR models (Carroll’s pyramid, triple bottom line, shared value)
Importance of CSR
Global standards and guidelines for CSR
o UN Global Compact
o ISO 26000 - Social Responsibility
o OECD Guidelines for Multinational Enterprises
o Ethiopian Corporate Code of Conduct
CSR practice in Ethiopia
Week 8-10: Midterm Exam & 1st Assignment (Ethical Problem Case analysis) Presentations
Week 11: Chapter Five – Managing Ethics and CSR in Organizations
Creating Ethical culture in Organizations
Code of Ethics and conduct in organizations
Role if leadership
Whistle blowing and reporting
Integrating Ethics and CSR in to business Strategy
Week 12: Chapter Six - Ethics in Functional Areas
Marketing ethics (advertising, consumer rights)
Financial ethics (fraud, corruption, insider trading)
HR ethics (discrimination, workplace diversity)
Week 13-15: Student Group Assignment Presentations
Ethical problem cases identification
CSR practice in Ethiopian business context
Week 16: Final Exam
Teaching Methods
Lectures and guided discussions
Case study analysis (local and international)
Group projects and presentations
Guest lectures from Ethiopian business leaders
Role play / debates
Assessment Modality
2
Assignments/Case studies: 20%
Assignment on CSR and presentation: 20%
Midterm exam: 20%
Final exam: 40%
Reading List:
Core Textbooks
1. Crane, A. & Matten, D. (2021). Business Ethics: Managing Corporate Citizenship and
Sustainability in the Age of Globalization. Oxford University Press.
2. Carroll, A.B. & Buchholtz, A.K. (2019). Business and Society: Ethics, Sustainability, and
Stakeholder Management. Cengage.
Supplementary Readings
1. Treviño, L.K. & Nelson, K.A. (2017). Managing Business Ethics. Wiley.
2. Blowfield, M. & Murray, A. (2019). Corporate Responsibility. Oxford University Press.
Ethiopian context:
FDRE Commercial Code of Ethiopia (2021)
Ethiopian Corporate Governance Code of Conduct
o Banking Sector Code of Conduct
o Insurance Code of Conduct
o Public Enterprises Code of Conduct
UNDP/Ethiopia reports on CSR and sustainable development
Group Assignment #1 - Case Study Analysis:
Students are expected to form groups of 5 or 6 persons and select a functional area (each group chooses
one):
• Marketing – e.g., misleading advertising, consumer privacy
• Finance & Accounting – e.g., fraud, transparency, bribery in procurement,
• Human Resources – e.g., nepotism, discrimination, labor rights violation
• Operations & Supply Chain – e.g., worker safety, environmental impact or pollution
• Information Technology – e.g., cyber security, data ethics
Tasks:
Find an Ethiopian or international company operating in Ethiopia.
Select an ethical issue in the chosen functional area (e.g., misleading advertising, labor
exploitation, bribery, environmental negligence, data privacy, corruption).
Analyze the case by identifying
o Stakeholders:- Map the stakeholders involved and describe how they are affected.
o Ethical issues and competing values
Apply Ethical Theories: - Use at least two ethical theories (e.g., utilitarianism, rights theory,
virtue ethics) to analyze the case.
Provide recommendation and action plan:- Suggest practical solutions for managing the ethical
issue in line with international standards (e.g., UN Global Compact, ISO 26000).
3
Deliverables
A 10–15 minute group presentation (Power Point).
A 4-7 pages written report (typed with the Times New Roman style, 1.5 line space) summarizing
findings and recommendations with content as follows:
o Case Background
Company name and sector/industry context
Brief description of the operation of the organization
o Ethical issue
Describe the moral or ethical dilemma in detail
Explain why it is considered unethical
Link to organizational and societal consequences
o Application of Ethical Theories
Apply at least TWO theories (e.g., Utilitarianism, Rights, Virtue Ethics)
Explain how each theory interprets the issue
Compare insights from different perspectives
o Stakeholder Analysis
Identify key stakeholders
Explain how each stakeholder is affected
Use a stakeholder map or diagram if possible
o Recommendations
Suggest practical and ethical solutions
Align with Ethiopian law and global standards (UN Global Compact, ISO 26000)
Ensure recommendations are feasible and sustainable
Evaluation Criteria:
Identification of ethical issue (20%)
Application of ethical theories (20%)
Stakeholder analysis (20%)
Quality and feasibility of recommendations (20%)
Presentation and teamwork (20%)
Group Assignment # 2
Corporate Social Responsibility and Ethical Practice in the Ethiopian Context
Objective
To help students apply CSR and ethical theories to real-life Ethiopian organizations by analyzing how
businesses respond to social, environmental, and governance issues.
Assignment Description
Students will work in groups of 5–6 to identify and analyze one Ethiopian company or organization from
any sector (banking, telecom, manufacturing, NGO, agriculture, etc.). They will assess how the
organization applies CSR principles, ethical practices, and stakeholder engagement based on frameworks
such as ISO 26000, UN Global Compact, and the Ethiopian Corporate Governance Code.
4
Key Content for the assignment report
1. Company Profile – Name, sector, ownership, and main activities.
2. Ethical Culture and Governance – How does the company promote ethical behavior, transparency,
and accountability? Link with Ethiopian Corporate Governance Code principles.
3. CSR Practices – Main social and environmental initiatives (e.g., community development, education,
green programs, gender equality). Identify which core issues of ISO 26000 they address.
4. Stakeholder Engagement – How the company identifies and communicates with key stakeholders
(employees, community, government, investors, etc.).
5. Challenges and Recommendations – What are the key barriers to ethical and responsible business
practice in Ethiopia? Suggest practical solutions.
Deliverables
• A 10–12 page group report OR a PowerPoint presentation (15 minutes) summarizing findings.
• Include visuals, charts, and references (minimum three credible sources).
Suggested Ethiopian Companies for Case Study
• Ethiopian Airlines – sustainability and community initiatives
• Ethio Telecom – digital inclusion and ethics
• CBE, Dashen Bank, Awash Bank or any other private banks – CSR and governance practices
• NGOs such as CARE, Save the Children, or local foundations
• Manufacturing companies
Evaluation Criteria (Total 100%)
Criteria Weight
Understanding of CSR and ethics concepts 25%
Application to Ethiopian context 25%
Quality of analysis and evidence 20%
Creativity and presentation clarity 15%
Team collaboration and participation 15%
