Prof. Peter Hardi Director, Center for Intergity in Business and Government MODULAR, GRANULAR AND INTERDISCIPLINARY: A NEW APPROACH TO INTEGRITY EDUCATION First PRME CEE Chapter Meeting Riga, Latvia April 18-19, 2016

BACKGROUND AND STARTING HYPOTHESES The Integrity Education project and the need for a new INTEGRITY CURRICULUM FRAMEWORK Why a framework? What should be included? Supply and demand side of MBA integrity education How to understand the demand side? Focus groups brainstorming and a global executive survey The importance of a management perspective Integrity as a management problem The macro (extra- and inter-firm)- and micro (intra-firm)-environment influencing integrity The limits to an ethical approach Cultural, social and value pluralism in globalized markets What is the relevance of ethics? Market neutrality and leveling the playing field Idealized conditions of competition Global standards of fair competition

MODULAR, GRANULAR AND INTERDISCIPLINARY:A NEW APPROACH TO INTEGRITY EDUCATION CORE COURSE: INTEGRITY IN BUSINESS Basic course: Integrity in Business Topics covered: Session 1: Integrity and leadershipSession 7: Protecting integrity: Legal frameworks Session 2: The macro-environment: State and politics Session 8: Codes of conduct and fiduciary duties Session 3: Market failures and integrity traps Session 9: Compliance in business environments Session 4: Corruption, bribery and fraudSession 10: Prevention: Risk management and business intelligence Session 5: Social and cultural factors in managing integrity Session 11: Positive leadership and decision choices Session 6: Integrity and efficiency

MODULAR, GRANULAR AND INTERDISCIPLINARY:A NEW APPROACH TO INTEGRITY EDUCATION CORE COURSE: INTEGRITY IN BUSINESS Modular conversion of topics Locus of activity/transaction PersonalIntra-firmExtra-firm Nature of relevant norms Informal (ethics and culture)  Integrity and leadership (1)  Positive leadership and decision choices (11)  Corruption, bribery and fraud (4)  Social and cultural factors in managing integrity (5)  Integrity and efficiency (6)  Market failures and integrity traps (3)  Social and cultural factors in managing integrity (5)  Integrity and efficiency (6) Formal (governance and law)  Codes of conduct and fiduciary duties (8)  Compliance in business environments (9)  Prevention: Risk management and business intelligence (10)  The macro- environment: State and politics (2)  Protecting integrity: Legal frameworks (7)

MODULAR, GRANULAR AND INTERDISCIPLINARY:A NEW APPROACH TO INTEGRITY EDUCATION ADDITIONAL COURSES: INTEGRITY TRACK Course title: ‘Corporate Intelligence in Managing Risk and Business Integrity’ Course title: 'Corruption and Corruption Control' Course title: ‘Current Issues in Financial Reporting’ (Formerly: ‘Financial Scandals’) Course title: ‘Legal and Market Instruments for Protecting Integrity’ Course title: 'Legal, Political and Policy Environment of Market' Course title: ‘Managing Integrity Challenges in Business Transactions’ Course title: 'Socio-Cultural Dimension of Global Management'

MODULAR, GRANULAR AND INTERDISCIPLINARY:A NEW APPROACH TO INTEGRITY EDUCATION ADDITIONAL COURSES: INTEGRITY TRACK Context of Integrity courses Interdisciplinary Course disciplines Management science Political science/ Public policy LawAnthropology Context of managing integrity Macro- environment of integrity management (extra-firm)  Political, policy and legal environment of markets  Corruption and Corruption Control  Political, policy and legal environment of markets  Legal and Market instruments for Protecting Integrity  Socio- Cultural Dimension of Global Management Micro- environment of integrity management (intra-firm)  Integrity in Business  Managing Integrity Challenges in Business Transactions  Corporate Intelligence in Managing Risk and Business Integrity  Corruption and Corruption Control  Integrity in Business

MODULAR, GRANULAR AND INTERDISCIPLINARY:A NEW APPROACH TO INTEGRITY EDUCATION METHODOLOGICAL VARIETY Use of traditional and experiential learning methods Lectures, class discussions, small group works Guest lectures by executives and reports from the trenches On-line situation games Simulations, board games Action learning Extensive use of the Moodle e-learning platform Blogs, discussion forum Individual and team assignments Case study approach Biggest challenge: Lack of relevant local case studies Regional cases with teaching notes from several countries (Bulgaria, Hungary, Poland) Fully on-line case study with video interviews and supporting materials

MODULAR, GRANULAR AND INTERDISCIPLINARY:A NEW APPROACH TO INTEGRITY EDUCATION KEY LEARNINGS FROM THE CLASSROOM Limits to acceptance of external value systems Differences between individual vs. group and private vs. business norms Challenges to integrity: The need for positive cases Sensitizing to recognize integrity traps The importance of learning different instruments for protecting integrity Management tasks: Integrity in vertical and horizontal management issues and business transactions