2
3
BUSINESS ETHICS
4
BUSINESS ETHICS A Stakeholder and Issues Management Approach
SIXTH EDITION
Joseph W. Weiss
5
Business Ethics Copyright © 2014 by Joseph W. Weiss
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Permissions Coordinator,” at the address below.
Berrett-Koehler Publishers, Inc. 235 Montgomery Street, Suite 650 San Francisco, California 94104-2916 Tel: (415) 288-0260, Fax: (415) 362-2512
www.bkconnection.com
Ordering information for print editions
Quantity sales. Special discounts are available on quantity purchases by corporations, associations, and others. For details, contact the “Special Sales Department” at the Berrett-Koehler address above.
Individual sales. Berrett-Koehler publications are available through most bookstores. They can also be ordered directly from Berrett-Koehler: Tel: (800) 929-2929; Fax: (802) 864-7626; www.bkconnection.com
Orders for college textbook/course adoption use. Please contact Berrett-Koehler: Tel: (800) 929-2929; Fax: (802) 864-7626.
Orders by U.S. trade bookstores and wholesalers. Please contact Ingram Publisher Services, Tel: (800) 509-4887; Fax: (800) 838-1149; E-mail: customer.service@ingrampublisherservices.com; or visit www.ingrampublisherservices.com/Ordering for details about electronic ordering.
Berrett-Koehler and the BK logo are registered trademarks of Berrett-Koehler Publishers, Inc.
Sixth Edition
Paperback print edition ISBN 978-1-62656-140-3 PDF e-book ISBN 978-1-62656-141-0 IDPF e-book ISBN 978-1-62656-142-7
2014-1
Book produced by: Westchester Publishing Services
Cover design: Dan Tesser / pemastudio
Interior illustration: Westchester Publishing Services
Indexer: Robert Swanson
6
http://www.bkconnection.com
http://www.bkconnection.com
mailto:customer.service@ingrampublisherservices.com
http://www.ingrampublisherservices.com/Ordering
7
Brief Contents
Chapter 1 Business Ethics, the Changing Environment, and Stakeholder Management
Chapter 2 Ethical Principles, Quick Tests, and Decision-Making Guidelines
Chapter 3 Stakeholder and Issues Management Approaches
Chapter 4 The Corporation and External Stakeholders: Corporate Governance: From the Boardroom to the Marketplace
Chapter 5 Corporate Responsibilities, Consumer Stakeholders, and the Environment
Chapter 6 The Corporation and Internal Stakeholders: Values-Based Moral Leadership, Culture, Strategy, and Self-Regulation
Chapter 7 Employee Stakeholders and the Corporation
Chapter 8 Business Ethics and Stakeholder Management in the Global Environment
8
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
Ethics and Compliance Programs
Why Does Ethics Matter in Business?
Working for the Best Companies
1.3 Levels of Business Ethics
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 and Trained?
1.7 Plan of the Book
9
Chapter Summary
Questions
Exercises
Real-Time Ethical Dilemma
Cases
1. Bernard L. Madoff Investment Securities LLC: Wall Street Trading Firm
2. 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
2.3 Four Social Responsibility Roles
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
10
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
3. Ford’s Pinto Fires: The Retrospective View of Ford’s Field Recall Coordinator
4. Jerome Kerviel: Rogue Trader or Misguided Employee? What Really Happened at the Société Générale?
5. 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
11
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 Resource 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
How Executives Have Responded to Crises
Crisis Management Recommendations
Chapter Summary
Questions
Exercises
Real-Time Ethical Dilemma
Cases
6. The BP Deepwater Horizon Explosion and Oil Spill: Crisis and Aftermath
7. Mattel Toy Recalls
8. Genetic Discrimination
Notes
Chapter 4 The Corporation and External Stakeholders: Corporate Governance: From the Boardroom to the Marketplace
12
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
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 4.2
4.3 Managing and Balancing Corporate Governance, Compliance, and Regulation
Ethical Insight 4.3
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
13
Real-Time Ethical Dilemma
Cases
9. Conscious Capitalism: What Is It? Why Do We Need It? Does It Work?
10. Goldman Sachs: Hedging a Bet and Defrauding Investors
11. Google Books
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
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
Ethical Insight 5.3
Product Liability Doctrines
14
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
12. For-Profit Universities: Opportunities, Issues, and Promises
13. Fracking: Drilling for Disaster?
14. Neuromarketing
15. WalMart: Challenges with Gender Discrimination
16. Vioxx, Dodge Ball: Did Merck Try to Avoid the Truth?
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
15
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
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. Kaiser Permanente: A Crisis of Communication, Values, and Systems Failure
18. Social Networking and Social Responsibility
Notes
Chapter 7 Employee Stakeholders and the Corporation
7.1 Employee Stakeholders in the Changing Workforce
16
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
17
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?
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
Cases
19. Preemployment Screening and Facebook: Ethical Considerations
20. 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
8.2 Managing and Working in a “Flat World”: Professional Competencies and Ethical Issues
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
18
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
21. Google in China: Still “Doing No Evil”?
19
22. Sweatshops: Not Only a Global Issue
23. The U.S. Industrial Food System
Notes
Index
About the Author
20
Preface
The sixth edition of Business Ethics: A Stakeholder and Issues Management Approach continues the mission of providing a practical, easy-to-read, engaging and contemporary text with detailed real-time contemporary and classic cases for students. This text updates the previous edition, adding fourteen new cases in addition to other new features discussed below.
We continue our quest to assist colleagues and students in understanding the changing environment from combined stakeholder and issues management approaches, based on the theory and practice that firms depend on stakeholders as well as stockholders for their survival and success. Acting morally while doing business is no longer a joking or even questionable topic of discussion. With the near shutdowns of the U.S. government, the subprime lending crisis, global climate changes, the fading middle class in America and other countries, China’s continuing economic expansion, and India’s inroads into the global economy, the stakes for the global economy are not trivial. Ethical behaviors are required, not optional, for this and future generations. Learning to think and reason ethically is the first step.
Business ethics is concerned with doing what is right over what is wrong, while acting in helpful over harmful ways, and with seeking the common good as well as our own welfare. This text addresses this foundational way of thinking by asking why does the modern corporation exist in the first place? What is its raison d’être? How does it treat its stakeholders? Business ethics engages these essential questions, and it is also about the purpose, values, and transactions of and between individuals, groups, and companies and their global alliances. Stakeholder theory and management, in particular, are what concern nonfinancial as well as the financial aspects of business behavior, policies, and actions. A stakeholder view of the firm complements the stockholder view and includes all parties and participants who have an interest—a stake—in the environment and society in which business operates.
Students and professionals need straightforward frameworks to thoughtfully and objectively analyze and then sort through complex issues in order to make decisions that matter—ethically, economically, socially, legally, and spiritually. The United States and indeed the whole world are different after the 9/11 attacks. Terrorism is a threat to everyone, everywhere, as the Boston bombings showed. Also threatening are the ongoing corporate scandals, the consequences of the Arab Spring, security issues worldwide, immigration problems, the inequalities in income distribution and wealth, the decay of the middle classes—all of these affect graduating students and those who wish to attend a university or college but cannot afford to. Business ethics affects our professional and personal relationships, careers, and lives, and this text attempts to identify and help analyze many of these issues and opportunities for change, using relevant ethical frameworks and reasoning.
The New Revised Sixth Edition: Why and How This Text Is Different
This edition builds on previous success factors to provide:
1. A competent, contemporary text grounded in factual and detailed research, while being easy to read and
21
applying concepts and methods to real-time business-related situations.
2. Interesting and contemporary news stories, exercises, and examples.
3. In-depth, real-time customized cases (twenty-three in this edition) specifically designed for this book.
4. Ethical dilemmas experienced by real individuals, not hypothetical stories.
5. A detailed chapter on both stakeholder and issues management methods, with step-by-step explanations, not summarized or theoretical abstractions.
6. A straightforward business and managerial perspective supported by the latest research—not only a philosophical approach.
7. One of the most comprehensive texts on the topics of workforce and workplace demographics, generational trends, and issues relating to ethical issues.
8. Comprehensive coverage of the Sarbanes-Oxley Act, federal sentencing guidelines, and codes of conduct.
9. Personal, professional, organizational, and global perspectives, and information and strategies for addressing ethical dilemmas.
10. A decision-maker role for students in exercises and examples.
This edition adds features that enhance your ethical understanding and interest in contemporary issues in the business world. It also aligns even more closely with international Association to Advance Collegiate Schools of Business (AACSB) requirements to help students, managers, and leaders achieve in their respective fields. Additions and changes include:
• A Point/CounterPoint exercise has been added to several chapters to challenge students’ thinking and arguments on contemporary issues. Topics include “too big to fail” (TBTF) institutions; advertising on the Boston bomber; student loan debt; and file sharing and other forms of online sharing.
• Twenty-three cases, of which fourteen are new and three updated, dealing with national and international issues.
• Updated national ethics survey data is included throughout the text.
• New perspectives on generational differences and ethical workplace issues have been added.
• Each chapter has new and updated lead-off cases and scenarios to attract students’ attention.
• Updated data on global and international issues.
• Updated research and business press findings and stories have been added to each chapter to explain concepts and perspectives.
• Chapter 1 includes a section on personal ethics with Covey’s maturity continuum and cases on cyberbullying and Madoff’s Ponzi scheme.
• Chapter 2 now covers more material on personal ethics and has a section explaining the foundations of ethics with cases on Jerome Kerviel, rogue trader, Sam Waksal (ImClone), and the Ford Pinto.
• Chapter 3 is now the stakeholder and issues management chapter with a section explaining stakeholder theory in more depth with a lead-in case on the BP oil spill and aftermath in the Gulf of Mexico. Cases include genetic discrimination and the Mattel toy recalls.
• Chapter 4 has updated research throughout with new Ethical Insight inserts and cases on conscious
22
capitalism, Goldman Sachs, and Google Books.
• Chapter 5 includes cases on fracking, for-profit education, neuromarketing, and gender discrimination.
• Chapter 6 includes new cases on Kaiser Permanente, and social networking and social responsibility.
• Chapter 7 remains a leader in the field on depth and coverage of current trends on generational differences, gender, and population changes. Cases include Facebook and Preemployment, and women on Wall Street.
• Chapter 8 features new research on skills and ethical capacities in international/global management and leadership. The “dark side” of globalization is updated with research on ethical issues in developing and underdeveloped countries. Cases include sweatshops and the U.S. industrial food system.
An Action Approach
The sixth edition puts the students in the decision-maker role when identifying and addressing ethical dilemmas with thought-provoking cases and discussion questions that ask, “What would you do if you had to decide a course of action?” Readers are encouraged to articulate and share their decision-making rationales and strategies. Readers will also learn how to examine changing ethical issues and business problems with a critical eye. We take a close look at the business reporting of the online editions of the Wall Street Journal, 60 Minutes, the New York Times, Businessweek, the Economist, and other sources.
Stakeholder and Issues Management Analysis
Stakeholder analysis is one of the most comprehensive approaches for identifying issues, groups, strategies, and outcomes. In the sixth edition, these methods are presented in an updated and more integrative Chapter 3. This chapter offers a useful starting point for mapping the who, what, when, where, why, and how of ethical problems relating to organizations and their stakeholders. Issues and crisis management frameworks are explained and integrated into approaches that complement the stakeholder analysis. Quick tests and negotiation techniques are presented in Chapters 2 and 8.
• A new instructor’s manual and PowerPoints.
• Streamlined case teaching notes.
• Suggested videos and web sites for each chapter.
Objectives and Advantages of This Textbook
• To use an action-oriented stakeholder and issues management approach for understanding the ethical dimensions of business, organizational, and professional complex issues, crises, and events that are happening now.
• To introduce and motivate students about the relevance of ethical concepts, principles, and examples through actual moral dilemmas that are occurring in their own lives, as well as with known national and international people, companies, and groups.
23
• To present a simple, straightforward way of using stakeholder and issues management methods with ethical reasoning in the marketplace and in workplace relationships.
• To engage and expand readers’ awareness of ethical and unethical practices in business at the individual, group, organizational, and multinational levels through real-time—not hypothetical— ethical dilemmas, stories, and cases.
• To instill self-confidence and competence in the readers’ ability to think and act according to moral principles. The classroom becomes a lab for real-life decisions.
Structure of the Book
• Chapter 1 defines business ethics and familiarizes the reader with examples of ethics in business practices, levels of ethical analysis, and what can be expected from a course in business ethics. A Point/CounterPoint exercise engages students immediately.
• Chapter 2 has exchanged positions in the text with the former Chapter 3. This chapter engages students in a discussion of ethics at the personal, professional, organizational, and international levels. The foundations of ethical principles are presented in context with contemporary ethical decision- making approaches. Individual styles of moral decision making are also discussed in this section. Although the approach here is a micro-level one, these principles can be used to examine and explain corporate strategies and actions as well. (Executives, managers, employees, coalitions, government officials, and other external stakeholder groups are treated as individuals.)
• Chapter 3 introduces action-oriented methods for studying social responsibility relationships at the individual employee, group, and organizational levels. These methods provide and encourage the incorporation of ethical principles and concepts from the entire book.
• Chapter 4 presents ethical issues and problems that firms face with external consumers, government, and environmental groups. How moral can and should corporations be and act in commercial dealings? Do corporations have a conscience? Classic and recent crises resulting from corporate and environmental problems are covered.
• Chapter 5 explains ethical problems that consumers face in the marketplace: product safety and liability, advertising, privacy, and the Internet. The following questions are addressed: How free is “free speech”? How much are you willing to pay for safety? Who owns the environment? Who regulates the regulators in an open society?
• Chapter 6 presents the corporation as internal stakeholder and discusses ethical leadership, strategy, structure, alliances, culture, and systems as dominant themes regarding how to lead, manage, and be a responsible follower in organizations today.
• Chapter 7 focuses on the individual employee stakeholder and examines the most recent, new and changing workforce/workplace trends, moral issues, and dilemmas employees and managers face and must respond to in order to survive and compete in national and global economies. This chapter has been described as a “must-read” for every human resource professional.
• Chapter 8 begins by asking students if they are ready for professional international assignments. Ethical and leadership competencies of new entrants into the global workforce are introduced, before
24
moving the discussion to global and multinational enterprises (MNEs) and ethical issues between MNEs, host countries, and other groups. Issues resulting from globalization are presented along with stakeholders who monitor corporate responsibility internationally. Negotiation techniques for professionals responsibly doing business abroad are presented.
Cases
Twenty-three cases are included in this edition, fourteen of which are new and three thoroughly updated.
Chapter 1
1. Bernard L. Madoff Investment Securities LLC: Wall Street Trading Firm
2. Cyberbullying: Who’s to Blame and What Can Be Done?
Chapter 2
3. Ford’s Pinto Fires: The Retrospective View of Ford’s Field Recall Coordinator
4. Jerome Kerviel: Rogue Trader or Misguided Employee? What Really Happened at the Société Générale?
5. Samuel Waksal at ImClone
Chapter 3
6. The BP Deepwater Horizon Explosion and Oil Spill: Crisis and Aftermath
7. Mattel Toy Recalls
8. Genetic Discrimination
Chapter 4
9. Conscious Capitalism: What Is It? Why Do We Need It? Does It Work?
10. Goldman Sachs: Hedging a Bet and Defrauding Investors
11. Google Books
Chapter 5
12. For-Profit Universities: Opportunities, Issues, and Promises
13. Fracking: Drilling for Disaster?
14. Neuromarketing
15. WalMart: Challenges with Gender Discrimination
16. Vioxx, Dodge Ball: Did Merck Try to Avoid the Truth?
Chapter 6
17. Kaiser Permanente: A Crisis of Communication, Values, and Systems Failure
18. Social Networking and Social Responsibility
25
Chapter 7
19. Preemployment Screening and Facebook: Ethical Considerations
20. Women on Wall Street: Fighting for Equality in a Male-Dominated Industry
Chapter 8
21. Google in China: Still “Doing No Evil”?
22. Sweatshops: Not Only a Global Issue
23. The U.S. Industrial Food System
26
Acknowledgments
This book continues the practice that has endured over the last several years that I have been teaching business ethics to MBA students and executives. My consulting work also informs this edition in numerous ways. I would like to thank all my students for their questions, challenges, and class contributions, which have stimulated the research and presentations in this text. I also thank all the professional staff at Berrett-Koehler who helped make this edition possible and the faculty and staff at Bentley University who contributed resources and motivation for this edition. I am grateful to Michael Hoffman and his staff at Bentley University’s Center for Business Ethics, whose shared resources and friendship also helped with this edition.