Teaching responsible business by using definitions – or dilemmas

Responsible business has become a key area of business education. Students learn various concepts, such as corporate social responsibility, sustainable development, stakeholder engagement and ethical business. These concepts provide a useful foundation for discussing the responsibility of businesses in society. Nevertheless, learning the definitions of the concepts and understanding them is not necessarily the same as knowing how to apply them in practice.

Moving from definitions to analysing complex situations

In practice, organisations do not decide things based on straightforward questions with right or wrong answers. Instead, they face situations in which different stakeholder interests and responsibilities conflict with one another.

While making a responsible decision, one might realise that it may be challenging to consider the situation from another perspective. This is an aspect worth considering in business education. Are students able to learn responsible business solely by memorizing the concepts and definitions, or by learning to navigate multifaceted business dilemmas?

While teaching at Haaga-Helia, especially in the field of sustainable, responsible and international business, I have observed that most meaningful discussions emerge when students are asked to move beyond definitions and consider what they would do in practice as managers in a complex business situation.

Real world decisions rarely offer simple answers

In decision-making, there are usually many factors to consider, and seldom just one straightforward answer.

Recently, in one of my classes, students discussed a case of an attractive foreign market, which offered significant growth opportunities for the organisation, yet with concerns about bribery and corruption (Bahoo, Alon & Paltrinieri 2020) in the market. The discussion explored several questions. How should the company approach this problem? Should it avoid the market completely and therefore lose the financial opportunity? Should it engage in bribery and not stay true to its own values? Should it take a relative approach and fit local context and practices? The discussion showed, that there clearly was no one simple correct answer.

It was interesting to see how differently students approached the issue. Some took a clear position that the company should not enter the market if doing so required bribery. Their reasoning focused on the company’s responsibility to maintain its ethical standards, even when there are significant business opportunities at stake.

Others looked at the dilemma more from a business perspective. They questioned whether refusing to participate in corrupt practices could put the company at a disadvantage. This led to a discussion about competitive pressures and the practical challenges of operating in such a market. Some students also suggested looking for alternative ways to enter the market, for example by changing how the operations were organised or by working with different local partners.

These responses showed that students were beginning to see responsible business not simply as a matter of following ethical principles, but as something that can shape strategic decisions and the way a company approaches complex business situations.

Another case explored the synergies between sustainability and frugal innovation (Albert 2019), as an organisation develops a highly sustainable, yet expensive product that limits its access to most consumers. The following questions formed the basis of discussion. Should sustainability come at a higher price and make the product inaccessible to many consumers? If a sustainable innovation limits affordability, is it socially sustainable? Should the organisation look for more affordable alternatives or limit its own profit margins?

Students initially viewed the issue as a choice between sustainability and affordability. As the discussion progressed, they began to consider who might be excluded by a higher price, whether the organisation should accept lower profit margins, and what other options might make the product more accessible.

The discussion helped students move beyond simply defining sustainability and start thinking critically about how environmental, social and economic considerations are connected and balanced in practice.

Learning to embrace complexity

These cases above demonstrate that responsible decision-making is about navigating competing priorities. Several factors like profitability, sustainability, affordability, stakeholder expectations and social impact may all need to be considered at the same time. My students were challenged to consider the complexity of decision-making and they learned that there might not be a straightforward answer to a multifaceted business situation.

Instead of learning the definitions of concepts, the students learned about analysing situations, identifying stakeholders and their priorities. Furthermore, they learned to consider different viewpoints and to justify their decisions. They saw in practice how responsibility is and must be an integral part of business strategy rather than a separate activity. They understood that complex business situations involve competing priorities, and that different groups may reach different conclusions based on their own reasoning.

Teaching responsible decision-making

What is important for a business educator in this context, is to consider how students arrive at their decisions. It is important to see, if the students considered different stakeholder expectations and priorities, and whether they recognize the potential consequences of their choices. Moreover, educators should consider how students identify missing information and justify their choices and decisions. The aim being that students understand how responsible decision-making is about navigating difficult choices thoughtfully and embracing complexity.

Good dilemmas for students to solve are cases that have no obvious right answers, and include conflicting values, different stakeholder interests, realistic constraints, and no solution that satisfies everyone.

In conclusion, responsible business education requires more than definitions and frameworks. Dilemma-based discussions help students apply concepts, and by considering different perspectives, questioning assumptions, embracing complexity and justifying their choices, they learn to approach decisions responsibly – understanding that every option has consequences.

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