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2026/2027  DIP-DIBUO2404U  Ethics in International Business

English Title
Ethics in International Business

Course information
Language English
Course ECTS 5 ECTS
Type Mandatory
Level Graduate Diploma
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Graduate Diploma in Business Administration (part 2)
Programme Graduate Diploma in Business Administration (International Business)
Course coordinator
  • Steffen Brenner - Department of International Economics, Goverment and Business (EGB)
Study administration for HD IB: hdib@cbs.dk
Main academic disciplines
  • Philosophy and ethics
  • Globalisation and international business
Teaching methods
  • Online teaching
Last updated on 20-03-2026

Relevant links
Learning objectives
The multinational enterprises play a pivotal role within the global economy. However, in their ambition to explore overseas markets, they face various ethical dilemmas. On the one hand the multinational enterprise can - through its resources and engagement in the host countries in which they operate - address and contribute to solving grand challenges of society such as climate change, digitalization or social issues. On the other hand, through its behavior, it might exacerbate these challenges.

The aim of this course is to provide students with an integrated understanding of the multinational enterprise’s cross-border activities in a global business environment highlighting the ethical challenges it faces and discuss approaches to address them. To this end, we will focus on strategies of responsible management, the role of leadership and governance, the dilemmas of subsidiaries and their relationship to headquarters and host country stakeholders. In terms of host countries, and emphasis will be on emerging markets, and in this light, emphasis is also on the geopolitical risks.
By the end of the course, students should have developed their ability to understand, apply and critically reflect on terms, theories and models explaining firms’ different options to engage in ethical challenges of international business.
Students should also be prepared to formulate and execute strategies in relation to ethical dilemmas and be able to succeed in international business ventures such as headquarters and subsidiaries. Both theory and cases are included in the curriculum, with much of the empirical material drawn from recent examples of ethical issues in the field of international business. The case studies will demonstrate real-world applications of ethical dilemmas in international business.

After taking this course, students have acquired the following:
  • Knowledge to understand, apply, and critically reflect on terms, theories and models explaining multinational enterprise’s different strategies addressing ethical issues.
  • Knowledge to explain and critically reflect on multinational enterprise’s ethical and unethical behavior.
  • Knowledge to understand and critically reflect on challenges of operating in geographical distant markets in a world with increasing geopolitical tension.
  • Knowledge to understand and explain the governance and organizational structures of multinational enterprises.
  • Skills to analyze and develop principles for responsible management.
  • Skills to analyze the foundation of an ethical dilemma in international business.
  • Skills to analyze ethical issues from a leadership angle.
  • Competences to formulate and execute ethical strategies and plans to succeed in international business activities.
  • Competences to develop a plan for a subsidiary facing ethical dilemmas.
  • Competences to develop a leadership and governance plan for a multinational enterprise in relation to ethical challenges.
Examination
Ethics in International Business:
Exam ECTS 5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 10 pages
Assignment type Written assignment
Release of assignment The Assignment is released in Digital Exam (DE) at exam start
Duration 7 days to prepare
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter and Winter, For information relating to the exam please go to: https://eksamen.cbs.dk/
Assignment hand-out 25 September, hand-in 2 October 2026.
Make-up exam/re-exam
Same examination form as the ordinary exam
For information relating to the exam please go to: https://eksamen.cbs.dk/
Assignment hand-out 4 November, hand-in 11 November 2026.
Course content, structure and pedagogical approach

This course examines ethical challenges facing multinational enterprises as they operate across borders, with particular attention to emerging markets, sustainability, and geopolitical risk. Students learn to identify and analyze ethical dilemmas using core frameworks in business ethics, CSR, stakeholder theory, responsible leadership, and corporate governance. Key topics include ESG measurement and materiality, corruption and compliance, ethical leadership and boards, incentive design and ESG-linked executive pay, ethical culture, and the role of media and external scrutiny. Through academic readings, cases, and discussion, students develop the ability to apply theory to real-world scenarios and propose well-reasoned strategies for responsible management.
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • Teacher’s own research
Research-like activities
  • Analysis
  • Discussion, critical reflection, modelling
Description of the teaching methods
Dialogue-based lectures and case discussions.
Feedback during the teaching period
Feedback will be given in different forms:

1) Individual feedback during office hours.

2) Peer-level feedback during lectures.
Student workload
Lectures 24 hours
Preparation for classes and exam 120 hours
Further Information

The course consists of a total of 24 lessons (5 ECTS).

For information relating to the course please go to: canvas.cbs.dk

 

The course will be delivered online, both live and recorded on:

Tuesday and Thursday in week 36 - 37 (17.10 - 19.45)

Monday and Wednesday in week 38 - 39 (17.10 - 19.45)

 

Course Coordinator: Steffen Brenner, sbr.egb@cbs.dk 
Teacher: Steffen Brenner, sbr.egb@cbs.dk 
Programme Administrator: Mette Kierkegaard, hdib@cbs.dk

 
Expected literature

Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization (5th ed.). ISBN: 9780198810070.

 

Aresu, S., Hooghiemstra, R., & Melis, A. (2023). Integration of CSR criteria into executive compensation contracts: A cross-country analysis. Journal of Management, 49(8), 2766–2804.

 

Bothello, J., Ioannou, I., Porumb, V. A., & Zengin-Karaibrahimoglu, Y. (2023). CSR decoupling within business groups and the risk of perceived greenwashing. Strategic Management Journal, 44(13), 3217–3251.

 

Cabezon, F. (2024). Executive compensation: The trend toward one-size-fits-all. Journal of Accounting and Economics, 101708.

Chin, M. K., Hambrick, D. C., & Treviño, L. K. (2013). Political ideologies of CEOs: The influence of executives’ values on corporate social responsibility. Administrative Science Quarterly, 58(2), 197–232.

 

Choi, T. J., & Phung, K. (2025). When Newspapers Fail to Deter Corporate Illegality: The Constraining Effects of Economic Institutions. Journal of Management Studies.

 

Cohen, S., Kadach, I., Ormazabal, G., & Reichelstein, S. (2023). Executive compensation tied to ESG performance: International evidence. Journal of Accounting Research, 61(3), 805–853.

 

Core, W., Guay, W., & Larcker, D. (2008). The power of the pen and executive compensation. Journal of Financial Economics, 88.

 

Corritore, M., Goldberg, A., & Srivastava, S. B. (2020). The new analytics of culture. Harvard Business Review, 98(1), 76–83.

 

Cortes-Mejia, S., Cortes, A. F., & Herrmann, P. (2022). Sharing strategic decisions: CEO humility, TMT decentralization, and ethical culture. Journal of Business Ethics, 178(1), 241–260.

 

Cuervo-Cazurra, A. (2016). Corruption in international business. Journal of World Business, 51(1), 35–49.

 

Cuervo-Cazurra, A., Dieleman, M., Hirsch, P., Rodrigues, S. B., & Zyglidopoulos, S. (2021). Multinationals’ misbehavior. Journal of World Business, 56(5), 101244.

 

Dathe, T., Helmold, M., Dathe, R., & Dathe, I. (2024). ESG Reporting Rules. In Implementing Environmental, Social and Governance (ESG) Principles for Sustainable Businesses: A Practical Guide in Sustainability Management (pp. 147–158). Cham: Springer International Publishing.

 

DesJardine, M. R., Shi, W., & Westphal, J. (2024). Shareholder politics: The influence of investors’ political affiliations on corporate social responsibility. Journal of Management, 50(5), 1569–1598.

 

Donaldson, T. (1996). Values in Tension: Ethics Away from Home. Harvard Business Review (September–October).

 

Dyck, A., Volchkova, N., & Zingales, L. (2008). The corporate governance role of the media: Evidence from Russia. The Journal of Finance, 63(3), 1093–1135.

 

Edmans, A., Gabaix, X., & Jenter, D. (2017). Executive compensation: A survey of theory and evidence. In The Handbook of the Economics of Corporate Governance (Vol. 1, pp. 383–539). (Sections 1, 2, 3.5, 4.0–4.2, 4.4, 6.2.0–6.2.3.)

 

Endrikat, J., De Villiers, C., Guenther, T. W., & Guenther, E. M. (2021). Board characteristics and corporate social responsibility: A meta-analytic investigation. Business & Society, 60(8), 2099–2135.

 

Flammer, C., Hong, B., & Minor, D. (2019). Corporate governance and the rise of integrating corporate social responsibility criteria in executive compensation: Effectiveness and implications for firm outcomes. Strategic Management Journal, 40(7), 1097–1122.

 

Flammer, C., Toffel, M. W., & Viswanathan, K. (2021). Shareholder activism and firms' voluntary disclosure of climate change risks. Strategic Management Journal, 42(10), 1850–1879.

 

Frei, C., & Muethel, M. (2017). Antecedents and consequences of MNE bribery: A multilevel review. Journal of Management Inquiry, 26(4), 418–432.

 

Freiberg, D., Rogers, J., & Serafeim, G. (2020). How ESG issues become financially material to corporations and their investors. Harvard Business School Accounting & Management Unit Working Paper (20-056).

 

Garst, J., Maas, K., & Suijs, J. (2022). Materiality assessment is an art, not a science: Selecting ESG topics for sustainability reports. California Management Review, 65(1), 64–90.

 

Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889.

 

Gruda, D., & Hanges, P. (2023). Why we follow narcissistic leaders. Harvard Business Review.

 

Ikram, A., Li, Z. F., & Minor, D. (2023). CSR-contingent executive compensation contracts. Journal of Banking & Finance, 151, 105655.

 

Ioannou, I., & Serafeim, G. (2023). What drives corporate social performance? The role of nation-level institutions. Journal of International Business Studies, 54(1), 14–23.

 

Krueger, P., Sautner, Z., & Starks, L. T. (2020). The importance of climate risks for institutional investors. The Review of Financial Studies, 33(3), 1067–1111.

 

Larcker, D. F., Tayan, B., & Watts, E. M. (2021). Seven Myths of ESG. European Financial Management.

 

Mayer, D. M. (2014). A review of the literature on ethical climate and culture. In The Oxford handbook of organizational climate and culture (p. 415). (Listed as “22 A Review…” in your text.)

 

McManus, J. (2018). Hubris and unethical decision making: The tragedy of the uncommon. Journal of Business Ethics, 149(1), 169–185.

 

Paine, L. S. (1994). Managing for organizational integrity. Harvard Business Review, 72(2), 106–117.

 

Post, C., Rahman, N., & Rubow, E. (2011). Green governance: Boards of directors’ composition and environmental corporate social responsibility. Business & Society, 50(1), 189–223.

 

Roy, A., Newman, A., Round, H., & Bhattacharya, S. (2024). Ethical culture in organizations: A review and agenda for future research. Business Ethics Quarterly, 34(1), 97–138.

 

Spencer, J., & Gomez, C. (2011). MNEs and corruption: The impact of national institutions and subsidiary strategy. Strategic Management Journal, 32(3), 280–300. (Appears twice in your text; listed once here.)

 

Taylor, A. (2024). Corporate advocacy in a time of social outrage. Harvard Business Review.

 

Van Scotter, J. R., & Roglio, K. D. D. (2020). CEO bright and dark personality: Effects on ethical misconduct. Journal of Business Ethics, 164, 451–475.

 

Wang, T., Fu, Y., Rui, O., & De Castro, J. (2024). Catch up with the good and stay away from the Bad: CEO decisions on the appointment of chief sustainability officers. Journal of Management Studies, 61(4), 1295–1326.

 

Petersen, F., Dhingra, V., & Shah, R. Are chief sustainability officers guardians of environmental justice? An empirical evaluation. (No year/journal given in the pasted text.)

 

“What is the purpose of the firm?” (Harvard Law School Forum on Corporate Governance link provided; described as “Corporate Governance for Sustainability statement” in the URL).
Last updated on 20-03-2026