90595 - Ethics and Sustainability in Business Decisions

Learning outcomes

The course aims to develop ethical awareness in business contexts, providing students with the tools to recognize moral issues, address ethical dilemmas, and guide decisions toward social responsibility.

Key concepts and major theories of business ethics will be introduced, including an innovative approach based on Amartya Sen’s capabilities framework, which helps understand the impact of corporate decisions on stakeholders’ well-being.

The course will also explore the evolution of Corporate Social Responsibility (CSR), its link with sustainability, and the role of corporate governance and accountability in balancing different interests. New business models designed to tackle the three dimensions of sustainability (social, environmental, and economic) will be analyzed.

By the end of the course, students will be able to:

• Understand theoretical and practical aspects of major ethical issues in business;

• Identify stakeholders, their legitimate interests, and expectations;

• Comprehend the role of corporate governance and accountability in balancing stakeholder interests;

• Distinguish between the main approaches to CSR implementation in companies;

• Recognize, understand, and address the ethical implications of business decisions, including in international contexts.

Course contents

Should a company put profit before people when the two goals conflict? Is sustainability a genuine transformation of how business is done, or just good communication? Who decides what is "right" inside an organization: shareholders, employees, society as a whole? The course addresses these questions with the tools of a responsible manager: the main ethical theories, Amartya Sen's capability approach, business cases, and first-hand testimonials from companies leading in sustainability.

The course unfolds over ten sessions, organized around the following questions:

• Is ethics an obstacle to profit or a competitive advantage? Does ethics only matter as a business case, or does it have value in itself?  what is business ethics, the boundary between ethics and law, ethical dilemmas across different sectors and organizations.
• Does a company answer only to shareholders, or to everyone it affects? stakeholder theory, corporate citizenship, the evolution of corporate governance principles.
• How do you really decide what is right? the main normative ethical theories (utilitarianism, Kant, Rawls) and descriptive theories of ethical decision-making. - In-class discussion of ethical dilemmas, including through AI-based scenario simulations.
• Can capitalism fix itself? Benefit Corporations and hybrid enterprises. Gamification activities in class.
• Beyond the profit motive: are companies essential to well-being? Sen's capability approach applied to corporate governance, and the evolution of CSR from a shareholder-oriented approach to shared value. -  Capability Lab & the Patagonia and PepsiCo case studies.
• What makes a business model "good" when you're not just chasing margin?  Social Business Model Canvas, hybrid models.
• What does a responsible manager actually do? — responsible management competencies. - Company testimonial in class.
• How do you prove your impact is real? — social impact evaluation frameworks, Theory of Change.

The course includes company testimonials in class, a hands-on lab (Capability Lab), gamification activities, and AI-based ethical scenario simulations — opportunities that build transversal skills in critical analysis, teamwork, and argumentation.

The information in this syllabus may be subject to minor changes. The course instructor will inform students of any changes.

Readings/Bibliography

Mandatory readings

text book: Crane, A., Matten, D., Glozer, S., & Spence, L. J. (2019). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization (5th ed.). Oxford University Press. Capp.1,2,3,4.

Capability approach: Fia, M., Sacconi, L. Justice and Corporate Governance: New Insights from Rawlsian Social Contract and Sen’s Capabilities Approach. J Bus Ethics 160, 937–960 (2019). https://doi.org/10.1007/s10551-018-3939-6

Other material on Virtuale: slides, ethical dilemmas, and the Patagonia and PepsiCo case studies are to be considered an integral part of the exam material

 

Further readings:

CSR: Molteni (2007), Gli stadi di sviluppo della CSR nella strategia aziendale; Libro Verde UE COM(2001)366; Comunicazione COM(2011)681. (disponibili su virtuale)

Società Benefit: Bandini, F., Boni, L., Fia, M., & Toschi, L. (2023). "Mission, governance, and accountability of benefit corporations", European Management Review, 20(3), 477-492. & Fia, M., Pontini, A. (2025) La Governance delle Società Benefit in Italia: Processi Decisionali ed Etica Aziendale. Rapporto finale, novembre 2025

Social BMC: Sparviero, S. (2019). "The case for a socially oriented business model canvas", Journal of Social Entrepreneurship, 10(2), 232-251.

Impatto: Ebrahim, A., & Rangan, V.K. (2014). "What impact? A framework for measuring the scale and scope of social performance", California Management Review, 56(3), 118-141.

Teaching methods

The course program is delivered through lectures. The following activities are also included:

• Interactive lectures with examples and case studies.
• Discussion of ethical dilemmas and case studies, including group work.
• Company testimonials in class.
• Hands-on lab (Capability Lab) applying course concepts to a real case.
• Gamification activities and AI-based ethical scenario simulations, supporting in-class discussion.

Assessment methods

The exam is designed to assess theoretical knowledge and the ability to critically analyze the topics and cases covered in class, in line with the expected learning outcomes (ILOs).

The exam covers the entire syllabus, including the ethical dilemmas, case studies, exercises, and company testimonials carried out during the course. Materials are made available on Virtuale.

The syllabus and exam format are identical for attending and non-attending students; no differentiation is made in content or in the structure of the exam.

Written exam (mandatory)

Structure: multiple-choice questions; open-ended questions; analysis of a real case. The three sections contribute equally to the score, for a maximum of 30/30 (10 points per section).

Exam duration: 75 minutes. No study materials, notes, or books are allowed during the exam.

A minimum score of 18/30 is required to pass. Grade scale: below 18 fail; 18–23 pass; 24–27 good; 28–30 very good; 30 cum laude excellent. Cum laude is awarded at the instructor's discretion for a complete, error-free exam that demonstrates particular critical ability.

Additional points (up to 4 points)

Group work presented in class earns up to 3 additional points. Individual in-class work earns up to 1 additional point. These points are added to the written exam score, up to a cap of 30.

Submission of the group work: before the written exam and by the end of classes; the exact date will be announced in class.

Exam registration

Students must always register for the exam via AlmaEsami (mandatory — failure to register means the exam cannot be taken). Depending on the number of students, exams may be organized into multiple shifts on the same day if the number exceeds a certain threshold.

Teaching tools

ppt slides, AI , Gamification, Case studies, Video

Office hours

See the website of Magalì Fia