Business Ethics: A Stakeholder and Issues Management Approach

Description

With a unique, highly practical approach to teaching business ethics, this text focuses on the relationships among various stakeholders, including individuals, groups, corporations, and governments. The book includes an easy, step-by-step guide to implementing stakeholder analysis, tips to help students apply ethical principles in their personal and professional lives, and comprehensive coverage of employee workplace issues. It addresses highly relevant topics such as risk management, preferential hiring, corporate legitimacy, and moral accountability. The text also explores today’s increasingly interconnected global business environment with coverage of multinational corporations and important issues such as the digital divide, bribery, corruption, human rights, and the environment. The new sixth edition incorporates the latest research, updated cases (such as WikiLeaks), and a full complement of online support for students and instructors, including teaching notes, PowerPoint slides, and sample tests. Cover Page......Page 2 Title Page......Page 5 Copyright Page......Page 6 Contents......Page 9 Preface......Page 21 Acknowledgments......Page 27 Case Authorship......Page 28 Chapter 1 Business Ethics, the Changing Environment, and Stakeholder Management......Page 31 1.1 Business Ethics and the Changing Environment......Page 33 Seeing the “Big Picture”......Page 35 Point/CounterPoint......Page 36 Environmental Forces and Stakeholders......Page 38 Stakeholder Management Approach......Page 40 1.2 What Is Business Ethics? Why Does It Matter?......Page 41 What Is Ethics and What Are the Areas of Ethical Theory?......Page 42 Unethical Business Practices and Employees......Page 43 Ethics and Compliance Programs......Page 44 Why Does Ethics Matter in Business?......Page 45 1.3 Levels of Business Ethics......Page 46 Asking Key Questions......Page 47 Ethical Insight 1.1......Page 48 Myth 1: Ethics Is a Personal, Individual Affair, Not a Public or Debatable Matter......Page 49 Myth 2: Business and Ethics Do Not Mix......Page 50 Myth 4: Good Business Means Good Ethics......Page 51 1.5 Why Use Ethical Reasoning in Business?......Page 52 1.6 Can Business Ethics Be Taught and Trained?......Page 53 1.7 Plan of the Book......Page 54 Chapter Summary......Page 55 Questions......Page 56 Real-Time Ethical Dilemma......Page 57 1. Bernard L. Madoff Investment Securities LLC: Wall Street Trading Firm......Page 58 2. Cyberbullying: Who’s to Blame and What Can Be Done?......Page 66 Notes......Page 72 Chapter 2 Ethical Principles, Quick Tests, and Decision-Making Guidelines......Page 76 Three Criteria in Ethical Reasoning......Page 77 2.2 Ethical Principles and Decision Making......Page 78 Ethical Insight 2.1......Page 80 Utilitarianism: A Consequentialist (Results-Based) Approach......Page 81 Universalism: A Deontological (Duty-Based) Approach......Page 83 Rights: A Moral and Legal Entitlement-Based Approach......Page 84 Justice: Procedures, Compensation, and Retribution......Page 85 Virtue Ethics: Character-Based Virtues......Page 87 Ethical Relativism: A Self-Interest Approach......Page 89 Immoral, Amoral, and Moral Management......Page 91 2.3 Four Social Responsibility Roles......Page 92 Personal Level......Page 95 Industry Level......Page 98 2.5 Identifying and Addressing Ethical Dilemmas......Page 99 Moral Creativity......Page 100 12 Questions to Get Started......Page 101 2.6 Individual Ethical Decision-Making Styles......Page 102 Communicating and Negotiating across Ethical Styles......Page 103 2.8 Concluding Comments......Page 104 Chapter Summary......Page 105 Questions......Page 106 Real-Time Ethical Dilemma......Page 107 3. Ford’s Pinto Fires: The Retrospective View of Ford’s Field Recall Coordinator......Page 108 4. Jerome Kerviel: Rogue Trader or Misguided Employee? What Really Happened at the Société Générale?......Page 114 5. Samuel Waksal at ImClone......Page 122 Notes......Page 126 Chapter 3 Stakeholder and Issues Management Approaches......Page 130 3.1 Stakeholder Theory and the Stakeholder Management Approach Defined......Page 132 Stakes......Page 133 3.2 Why Use a Stakeholder Management Approach for Business Ethics?......Page 134 Stakeholder Theory: Criticisms and Responses......Page 135 Role of the CEO in Stakeholder Analysis......Page 136 Summary of Stakeholder Analysis......Page 145 Stakeholder Dispute Resolution Methods......Page 146 3.5 Stakeholder Management Approach: Using Ethical Principles and Reasoning......Page 148 Marketing and Sales Professionals and Managers as Stakeholders......Page 149 Accounting and Finance Professionals and Managers as Stakeholders......Page 151 Human Resource Managers as Stakeholders......Page 152 What Is an Issue?......Page 153 Other Types of Issues......Page 154 Moral Dimensions of Stakeholder and Issues Management......Page 155 Types of Issues Management Frameworks......Page 156 3.8 Managing Crises......Page 161 How Executives Have Responded to Crises......Page 163 Crisis Management Recommendations......Page 165 Chapter Summary......Page 166 Exercises......Page 167 Real-Time Ethical Dilemma......Page 168 6. The BP Deepwater Horizon Explosion and Oil Spill: Crisis and Aftermath......Page 169 7. Mattel Toy Recalls......Page 174 8. Genetic Discrimination......Page 180 Notes......Page 187 Chapter 4 The Corporation and External Stakeholders: Corporate Governance: From the Boardroom to the Marketplace......Page 192 4.1 Managing Corporate Social Responsibility in the Marketplace......Page 194 Ethical Insight 4.1......Page 195 Free-Market Theory and Corporate Social Responsibility......Page 196 Problems with the Free-Market Theory......Page 197 Intermediaries: Bridging the Disclosure Gap......Page 198 Point/CounterPoint......Page 199 The Corporation as Social and Economic Stakeholder......Page 200 Balance between Ethical Motivation and Compliance......Page 202 The Moral Basis and Social Power of Corporations as Stakeholders......Page 203 Corporate Philanthropy......Page 204 Ethical Insight 4.2......Page 205 4.3 Managing and Balancing Corporate Governance, Compliance, and Regulation......Page 207 Ethical Insight 4.3......Page 208 Sarbanes-Oxley Act......Page 210 Pros and Cons of Implementing the Sarbanes-Oxley Act......Page 212 The Federal Sentencing Guidelines for Organizations: Compliance Incentive......Page 214 4.4 The Role of Law and Regulatory Agencies and Corporate Compliance......Page 216 Why Regulation?......Page 218 Laws Protecting Consumers......Page 219 Laws Protecting the Environment......Page 220 4.5 Managing External Issues and Crises: Lessons from the Past (Back to the Future?)......Page 222 Questions......Page 230 Exercises......Page 231 9. Conscious Capitalism: What Is It? Why Do We Need It? Does It Work?......Page 232 10. Goldman Sachs: Hedging a Bet and Defrauding Investors......Page 248 11. Google Books......Page 253 Notes......Page 262 Chapter 5 Corporate Responsibilities, Consumer Stakeholders, and the Environment......Page 269 Corporate Responsibilities and Consumer Rights......Page 271 5.2 Corporate Responsibility in Advertising......Page 274 The Federal Trade Commission and Advertising......Page 275 Ethical Insight 5.1......Page 276 Advertising and Free Speech......Page 278 Paternalism, Manipulation, or Free Choice?......Page 279 Advertising and the Internet......Page 280 The Thin Line between Deceptive Advertising, Spyware, and Spam......Page 281 Advertising to Children......Page 282 Protecting Children......Page 283 Tobacco Advertising......Page 284 Alcohol Advertising......Page 285 Ethical Insight 5.2......Page 286 How Safe Is Safe? The Ethics of Product Safety......Page 287 Ethical Insight 5.3......Page 288 Product Liability Doctrines......Page 290 Legal and Moral Limits of Product Liability......Page 291 Product Safety and the Road Ahead......Page 292 The Most Significant Environmental Problems......Page 293 Causes of Environmental Pollution......Page 295 The Ethics of Ecology......Page 296 Green Marketing, Environmental Justice, and Industrial Ecology......Page 297 Recommendations to Managers......Page 298 Chapter Summary......Page 299 Exercises......Page 300 Real-Time Ethical Dilemma......Page 301 12. For-Profit Universities: Opportunities, Issues, and Promises......Page 303 13. Fracking: Drilling for Disaster?......Page 308 14. Neuromarketing......Page 315 15. Wal-Mart: Challenges with Gender Discrimination......Page 321 16. Vioxx, Dodge Ball: Did Merck Try to Avoid the Truth?......Page 326 Notes......Page 334 Chapter 6 The Corporation and Internal Stakeholders: Values-Based Moral Leadership, Culture, Strategy, and Self-Regulation......Page 341 6.1 Leadership and Stakeholder Management......Page 343 Defining Purpose, Mission, and Values......Page 344 Leadership Stakeholder Competencies......Page 350 Example of Companies Using Stakeholder Relationship Management......Page 354 Ethical Insight 6.2......Page 355 Spiritual Values, Practices, and Moral Courage in Leading......Page 356 Failure of Ethical Leadership......Page 359 Ethical Dimensions of Leadership Styles......Page 360 How Should CEOs as Leaders Be Evaluated and Rewarded?......Page 362 6.2 Organizational Culture, Compliance, and Stakeholder Management......Page 364 Organizational Culture Defined......Page 365 Weak Cultures......Page 367 6.3 Leading and Managing Strategy and Structure......Page 369 Organizational Structure and Ethics......Page 370 6.4 Leading Internal Stakeholder Values in the Organization......Page 372 6.5 Corporate Self-Regulation and Ethics Programs: Challenges and Issues......Page 374 Ethical Insight 6.3......Page 375 Ethics Codes......Page 376 Codes of Conduct......Page 377 Problems with Ethics and Conduct Codes......Page 378 Ombuds and Peer-Review Programs......Page 379 Is the Organization Ready to Implement a Values-Based Stakeholder Approach? A Readiness Checklist......Page 380 Chapter Summary......Page 381 Questions......Page 383 Real-Time Ethical Dilemmas......Page 384 17. Kaiser Permanente: A Crisis of Communication, Values, and Systems Failure......Page 388 18. Social Networking and Social Responsibility......Page 395 Notes......Page 403 Chapter 7 Employee Stakeholders and the Corporation......Page 409 The Aging Workforce......Page 411 Generational Differences in the Workplace......Page 412 Steps for Integrating a Multigenerational Workforce......Page 414 Ethical Insight 7.1......Page 416 Women in the Workforce......Page 417 Same-Sex Marriages, Civil Unions, Domestic Partnerships, and Workforce Rights......Page 418 The Increasing Cultural Mix: Minorities Are Becoming the Majority......Page 420 Point/CounterPoint......Page 421 Mainstreaming Disabled Workers......Page 423 Balancing Work and Life in Families......Page 424 7.2 The Changing Social Contract between Corporations and Employees......Page 425 Implied Contract Exception......Page 426 7.3 Employee and Employer Rights and Responsibilities......Page 427 The Principle of Balance in the Employee and Employer Social Contract and the Reality of Competitive Change......Page 428 Employer Responsibilities to Employees......Page 429 Employee Rights in the Workplace......Page 432 Other Employee Rights and Obligations to Employers......Page 435 Ethical Insight 7.2......Page 436 7.4 Discrimination, Equal Employment Opportunity, and Affirmative Action......Page 442 Equal Employment Opportunity and the Civil Rights Act......Page 443 Affirmative Action......Page 444 Ethics and Affirmative Action......Page 445 Reverse Discrimination: Arguments against Affirmative Action......Page 446 7.5 Sexual Harassment in the Workplace......Page 447 What Is Sexual Harassment?......Page 448 Who Is Liable?......Page 449 Tangible Employment Action and Vicarious Liability......Page 450 7.6 Whistle-Blowing versus Organizational Loyalty......Page 451 When Whistle-Blowers Should Not Be Protected......Page 455 Managerial Steps to Prevent External Whistle-Blowing......Page 456 Chapter Summary......Page 457 Questions......Page 458 Real-Time Ethical Dilemma......Page 459 19. Preemployment Screening and Facebook: Ethical Considerations......Page 460 20. Women on Wall Street: Fighting for Equality in a Male-Dominated Industry......Page 466 Notes......Page 474 Chapter 8 Business Ethics and Stakeholder Management in the Global Environment......Page 484 Ethical Insight 8.1......Page 485 Globalization and the Forces of Change......Page 486 8.2 Managing and Working in a “Flat World”: Professional Competencies and Ethical Issues......Page 491 Shared Leadership in Teams’ Competency......Page 494 Ethical Insight 8.2......Page 495 Global Ethical Values and Principles......Page 496 Know Your Own Cultural and Core Values, Your Organization’s, and Those with Whom You Are Working......Page 498 Cross-Cultural Business Ethical Issues Professionals May Experience......Page 500 8.3 Societal Issues and Globalization: The Dark Side......Page 506 International Crime and Corruption......Page 507 Economic Poverty and Child Slave Labor......Page 508 Westernization (Americanization) of Cultures......Page 509 Loss of Nation-State Sovereignty......Page 510 Power of MNEs......Page 511 Microfinancing......Page 517 8.6 MNEs: Stakeholder Values, Guidelines, and Codes for Managing Ethically......Page 518 Environmental Protection......Page 519 Basic Human Rights and Fundamental Freedoms......Page 520 External Corporate Monitoring Groups......Page 521 Individual Stakeholder Methods for Ethical Decision Making......Page 522 Hypernorms, Local Norms, and Creative Ethical Navigation......Page 525 Chapter Summary......Page 527 Questions......Page 528 Exercises......Page 529 Real-Time Ethical Dilemmas......Page 530 21. Google in China: Still “Doing No Evil”?......Page 532 22. Sweatshops: Not Only a Global Issue......Page 538 23. The U.S. Industrial Food System......Page 543 Notes......Page 549 Index......Page 557 About the Author......Page 613