Business Ethics, 7th Edition: A Stakeholder and Issues Management Approach

enter Cover Title Page Copyright Page Brief Contents Contents Preface Acknowledgments Case Authorship Chapter 1. Business Ethics, the Changing Environment, and Stakeholder Management 1.1. Business Ethics and the Changing Environment Seeing the “Big Picture” Point/CounterPoint Environmental Forces and Stakeholders Stakeholder Management Approach 1.2. What Is Business Ethics? Why Does It Matter? What Is Ethics, and What Are the Areas of Ethical Theory? Unethical Business Practices and Employees Why Does Ethics Matter in Business? Working for the Best Companies 1.3. Levels of Business Ethics Point/CounterPoint Asking Key Questions Ethical Insight 1.1 1.4. Five Myths about Business Ethics Myth 1: Ethics Is a Personal, Individual Affair, Not a Public or Debatable Matter Myth 2: Business and Ethics Do Not Mix Myth 3: Ethics in Business Is Relative Myth 4: Good Business Means Good Ethics Myth 5: Information and Computing Are Amoral 1.5. Why Use Ethical Reasoning in Business? 1.6. Can Business Ethics Be Taught? 1.7. Plan of the Book Chapter Summary Questions Exercises Real-Time Ethical Dilemma Cases 1. Education Pushed to the Brink: How Covid-19 Is Redefining Recruitment and Admissions Decisions 2. Classic Ponzi Scheme: Bernard L. Madoff Investment Securities LLC: Wall Street Trading Firm 3. Cyberbullying: Who’s to Blame and What Can Be Done? Notes Chapter 2. Ethical Principles, Quick Tests, and Decision-Making Guidelines 2.1. Ethical Reasoning and Moral Decision Making Three Criteria in Ethical Reasoning Moral Responsibility Criteria 2.2. Ethical Principles and Decision Making Ethical Insight 2.1 Utilitarianism: A Consequentialist (Results-Based) Approach Universalism: A Deontological (Duty-Based) Approach Rights: A Moral and Legal (Entitlement-Based) Approach Justice: Procedures, Compensation, and Retribution Virtue Ethics: Character-Based Virtues The Common Good Ethical Relativism: A Self-Interest Approach Immoral, Amoral, and Moral Management Point/CounterPoint 2.3. Four Social Responsibility Roles Point/CounterPoint 2.4. Levels of Ethical Reasoning and Moral Decision Making Personal Level Organizational Level Industry Level Societal, International, and Global Levels 2.5. Identifying and Addressing Ethical Dilemmas Ethical Insight 2.2 Moral Creativity Ethical Dilemma Problem Solving 12 Questions to Get Started 2.6. Individual Ethical Decision-Making Styles Communicating and Negotiating across Ethical Styles 2.7. Quick Ethical Tests 2.8. Concluding Comments Back to Louise Simms… Chapter Summary Questions Exercises Real-Time Ethical Dilemma Cases 4. Ford’s Pinto Fires: The Retrospective View of Ford’s Field Recall Coordinator 5. Jerome Kerviel: Rogue Trader or Misguided Employee? What Really Happened at the Société Générale? 6. Samuel Waksal at ImClone Notes Chapter 3. Stakeholder and Issues Management Approaches 3.1. Stakeholder Theory and the Stakeholder Management Approach Defined Stakeholders Stakes 3.2. Why Use a Stakeholder Management Approach for Business Ethics? Stakeholder Theory: Criticisms and Responses 3.3. How to Execute a Stakeholder Analysis Taking a Third-Party Objective Observer Perspective Role of the CEO in Stakeholder Analysis Summary of Stakeholder Analysis 3.4. Negotiation Methods: Resolving Stakeholder Disputes Stakeholder Dispute Resolution Methods 3.5. Stakeholder Management Approach: Using Ethical Principles and Reasoning 3.6. Moral Responsibilities of Cross-Functional Area Professionals Marketing and Sales Professionals and Managers as Stakeholders R&D, Engineering Professionals, and Managers as Stakeholders Accounting and Finance Professionals and Managers as Stakeholders Public Relations Managers as Stakeholders Human Resources Managers as Stakeholders Summary of Managerial Moral Responsibilities 3.7. Issues Management: Integrating a Stakeholder Framework What Is an Issue? Ethical Insight 3.1 Other Types of Issues Stakeholder and Issues Management: “Connecting the Dots” Moral Dimensions of Stakeholder and Issues Management Types of Issues Management Frameworks 3.8. Managing Crises Ethical Insight 3.2 How Executives Have Responded to Crises Crisis Management Recommendations Chapter Summary Questions Exercises Real-Time Ethical Dilemma Cases 7. The BP Deepwater Horizon Explosion and Oil Spill: Crisis and Aftermath 8. Ethics and AI (Artificial Intelligence): Opportunities and Threats 9. Genetic Discrimination Notes Chapter 4. The Corporation and External Stakeholders: Corporate Governance: From the Boardroom to the Marketplace 4.1. Managing Corporate Social Responsibility in the Marketplace Ethical Insight 4.1 Free-Market Theory and Corporate Social Responsibility Problems with the Free-Market Theory Intermediaries: Bridging the Disclosure Gap Point/CounterPoint Ethical Insight 4.2 4.2. Managing Corporate Responsibility with External Stakeholders The Corporation as Social and Economic Stakeholder The Social Contract: Dead or Desperately Needed? Balance between Ethical Motivation and Compliance Covenantal Ethic The Moral Basis and Social Power of Corporations as Stakeholders Corporate Philanthropy Managing Stakeholders Profitably and Responsibly: Reputation Counts Ethical Insight 4.3 4.3. Managing and Balancing Corporate Governance, Compliance, and Regulation Ethical Insight 4.4 Best Corporate Board Governance Practices Sarbanes-Oxley Act Pros and Cons of Implementing the Sarbanes-Oxley Act The Federal Sentencing Guidelines for Organizations: Compliance Incentive 4.4. The Role of Law and Regulatory Agencies and Corporate Compliance Why Regulation? Laws and U.S. Regulatory Agencies Laws Protecting Consumers Laws Protecting the Environment 4.5. Managing External Issues and Crises: Lessons from the Past (Back to the Future?) Chapter Summary Questions Exercises Real-Time Ethical Dilemma Cases 10. Conscious Capitalism: What Is It? Why Do We Need It? Does It Work? 11. Uber and the Ride-Sharing Economy 12. The Crisis at Wells Fargo Bank: Then and Now Notes Chapter 5. Corporate Responsibilities, Consumer Stakeholders, and the Environment 5.1. Corporate Responsibility toward Consumer Stakeholders Corporate Responsibilities and Consumer Rights Consumer Protection Agencies and Law 5.2. Corporate Responsibility in Advertising Ethics and Advertising The Federal Trade Commission and Advertising Pros and Cons of Advertising Ethical Insight 5.1 Point/CounterPoint Advertising and Free Speech Paternalism, Manipulation, or Free Choice? 5.3. Controversial Issues in Advertising: The Internet, Children, Tobacco, and Alcohol Advertising and the Internet The Thin Line between Deceptive Advertising, Spyware, and Spam Advertising to Children Protecting Children Tobacco Advertising The Tobacco Controversy Continues Alcohol Advertising Ethical Insight 5.2 5.4. Managing Product Safety and Liability Responsibly How Safe Is Safe? The Ethics of Product Safety Product Liability Doctrines Legal and Moral Limits of Product Liability Product Safety and the Road Ahead 5.5. Corporate Responsibility and the Environment The Most Significant Environmental Problems Causes of Environmental Pollution Enforcement of Environmental Laws The Ethics of Ecology Green Marketing, Environmental Justice, and Industrial Ecology Rights of Future Generations and Right to a Livable Environment Recommendations to Managers Chapter Summary Questions Exercises Real-Time Ethical Dilemma Cases 13. For-Profit Universities: Opportunities, Issues, and Promises 14. Fracking: Drilling for Disaster? 15. Neuromarketing 16. Opioid Crisis in America Notes Chapter 6. The Corporation and Internal Stakeholders: Values-Based Moral Leadership, Culture, Strategy, and Self-Regulation 6.1. Leadership and Stakeholder Management Defining Purpose, Mission, and Values Ethical Insight 6.1 Leadership Stakeholder Competencies Example of Companies Using Stakeholder Relationship Management Ethical Insight 6.2 Spiritual Values, Practices, and Moral Courage in Leading Failure of Ethical Leadership Ethical Dimensions of Leadership Styles How Should CEOs as Leaders Be Evaluated and Rewarded? 6.2. Organizational Culture, Compliance, and Stakeholder Management Organizational Culture Defined High-Ethics Companies Weak Cultures Point/CounterPoint 6.3. Leading and Managing Strategy and Structure Organizational Structure and Ethics Boundaryless and Networked Organizations 6.4. Leading Internal Stakeholder Values in the Organization 6.5. Corporate Self-Regulation and Ethics Programs: Challenges and Issues Ethical Insight 6.3 Organizations and Leaders as Moral Agents Ethics Codes Codes of Conduct Problems with Ethics and Conduct Codes Ombuds and Peer-Review Programs Is the Organization Ready to Implement a Values-Based Stakeholder Approach? A Readiness Checklist Chapter Summary Questions Exercises Real-Time Ethical Dilemmas Cases 17. Corporate Responsibility in the Age of Big Data: Facebook’s Obligations to Protect Consumers 18. Boeing: The 737 “MAX-imum” Mistake Notes Chapter 7. Employee Stakeholders and the Corporation 7.1. Employee Stakeholders in the Changing Workforce Point/CounterPoint The Aging Workforce Generational Differences in the Workplace Steps for Integrating a Multigenerational Workforce Ethical Insight 7.1 Women in the Workforce Same-Sex Marriages, Civil Unions, Domestic Partnerships, and Workforce Rights The Increasing Cultural Mix: Minorities Are Becoming the Majority Educational Weaknesses and Gaps Point/CounterPoint Mainstreaming Disabled Workers Balancing Work and Life in Families 7.2. The Changing Social Contract between Corporations and Employees Good Faith Principle Exception Public Policy Principle Exception Implied Contract Exception 7.3. Employee and Employer Rights and Responsibilities Moral Foundation of Employee Rights The Principle of Balance in the Employee and Employer Social Contract and the Reality of Competitive Change Rights from Government Legislation Employer Responsibilities to Employees Employee Rights and Responsibilities to Employers Employee Rights in the Workplace Other Employee Rights and Obligations to Employers Ethical Insight 7.2 7.4. Discrimination, Equal Employment Opportunity, and Affirmative Action Discrimination Equal Employment Opportunity and the Civil Rights Act Age and Discrimination in the Workplace Comparable Worth and Equal Pay Affirmative Action Ethics and Affirmative Action Reverse Discrimination: Arguments against Affirmative Action Ethical Insight 7.3 7.5. Sexual Harassment in the Workplace What Is Sexual Harassment? Point/CounterPoint Who Is Liable? Tangible Employment Action and Vicarious Liability Sexual Harassment and Foreign Firms in the United States 7.6. Whistle-Blowing versus Organizational Loyalty When Whistle-Blowers Should Not Be Protected Factors to Consider before Blowing the Whistle Managerial Steps to Prevent External Whistle-Blowing Chapter Summary Questions Exercises Real-Time Ethical Dilemma Case 19. Women on Wall Street: Fighting for Equality in a Male-Dominated Industry Notes Chapter 8. Business Ethics and Stakeholder Management in the Global Environment 8.1. The Connected Global Economy and Globalization Ethical Insight 8.1 Globalization and the Forces of Change Point/CounterPoint 8.2. Managing and Working in a Different Global World: Professional and Ethical Competencies Shared Leadership in Teams’ Competency Ethical Insight 8.2 Global Ethical Values and Principles Know Your Own Cultural and Core Values, Your Organization’s, and Those with Whom You Are Working Cross-Cultural Business Ethical Issues Professionals May Experience 8.3. Societal Issues and Globalization: The Dark Side International Crime and Corruption Economic Poverty and Child Slave Labor The Global Digital Divide Westernization (Americanization) of Cultures Loss of Nation-State Sovereignty 8.4. Multinational Enterprises as Stakeholders Power of MNEs 8.5. Triple Bottom Line, Social Entrepreneurship, and Microfinancing The Triple Bottom Line Social Entrepreneurs and Social Enterprises Microfinancing 8.6. MNEs: Stakeholder Values, Guidelines, and Codes for Managing Ethically Employment Practices and Policies Consumer Protection Environmental Protection Political Payments and Involvement Basic Human Rights and Fundamental Freedoms 8.7. Cross-Cultural Ethical Decision Making and Negotiation Methods External Corporate Monitoring Groups Individual Stakeholder Methods for Ethical Decision Making Four Typical Styles of International Ethical Decision Making Hypernorms, Local Norms, and Creative Ethical Navigation Chapter Summary Questions Exercises Real-Time Ethical Dilemmas Cases 20. Plastic in the Ocean: An International Climate Change Problem 21. Sweatshops: Not Only a Global Issue 22. The U.S. Industrial Food System Notes Index About the Author