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Business ethics textbook mcgraw hill

25/03/2021 Client: saad24vbs Deadline: 3 days

A N I N T R O D U C T I O N T O

B U S I N E S S E T H I C S

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TM

A N I N T R O D U C T I O N T O

B U S I N E S S E T H I C S

F o u r t h E d i t i o n

J o s e p h D e s J a r d i n s C o l l e g e o f S t . B e n e d i c t / S t . J o h n ’ s U n i v e r s i t y

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AN INTRODUCTION TO BUSINESS ETHICS, FOURTH EDITION

Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 0 9 8 7 6 5 4 3 2 1 0

ISBN: 978-0-07-353581-4 MHID: 0-07-353581-8

Vice President & Editor-in-Chief: Michael Ryan Vice President EDP/Central Publishing Services: Kimberly Meriwether David Editorial Director: Beth Mejia Sponsoring Editor: Mark Georgiev Executive Marketing Manager: Pamela S. Cooper Managing Editor: Meghan Campbell Project Manager: Erin Melloy Design Coordinator: Brenda A. Rolwes Cover Designer: Studio Montage, St. Louis, Missouri Visual Coordinator: Sonia Brown Cover Image: © Digital Vision/Getty Images Buyer: Kara Kudronowicz Media Project Manager: Sridevi Palini Compositor: MPS Limited, A Macmillan Company Typeface: 10/12 Palatino Printer: R. R. Donnelley

All credits appearing at the end of the book are considered to be an extension of the copyright page.

Library of Congress Cataloging-in-Publication Data

DesJardins, Joseph R. An introduction to business ethics / Joseph DesJardins.—4th ed. p. cm. ISBN-13: 978-0-07-353581-4 (pbk.) ISBN-10: 0-07-353581-8 (pbk.) 1. Business ethics. I. Title. HF5387.D392 2011 174’.4—dc22

2010016092

www.mhhe.com

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About the Author

Joe DesJardins is Associate Provost and Academic Dean, as well as Professor in the Department of Philosophy, at the College of St. Benedict and St. John’s University in Minnesota. His other books include Business Ethics: Decision Mak- ing for Personal Integrity and Social Responsibility (with Laura Hartman); Environ- mental Ethics: An Introduction to Environmental Philosophy; Environmental Ethics: Concepts, Policy, and Theory; Contemporary Issues in Business Ethics (co-editor with John McCall); and Business, Ethics, and the Environment. He is the former Execu- tive Director of the Society for Business Ethics, and has published and lectured extensively in the areas of business ethics, environmental ethics, and sustain- ability. He received his B.A. from Southern Connecticut State University, and his M.A. and Ph.D. from the University of Notre Dame. He previously taught at Villanova University.

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To Linda

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vii

Contents

Preface xii

Chapter One: Why Study Ethics? 1

Learning Objectives 1 Discussion Case: Bernard Madoff’s Ponzi Scheme 2 Discussion Questions 3 1.1 Why Study Business Ethics? 3 1.2 Values and Ethics: Doing Good and Doing Well 6 1.3 The Nature and Goals of Business Ethics 9 1.4 Business Ethics and the Law 11 1.5 Ethics and Ethos 13 1.6 Morality, Virtues, and Social Ethics 14 1.7 Ethical Perspectives: Managers and Other Stakeholders 15 1.8 A Model for Ethical Decision Making 16 Refl ections on the Chapter Discussion Case 17 Chapter Review Questions 18

Chapter Two: Ethical Theory and Business 20

Learning Objectives 20 Discussion Case: AIG Bonuses and Executive Salary Caps 21 Discussion Questions 22 2.1 Introduction 23 2.2 Ethical Relativism and Reasoning in Ethics 24 2.3 Modern Ethical Theory: Utilitarian Ethics 29 2.4 Challenges to Utilitarianism 33 2.5 Utilitarianism and Business Policy 35 2.6 Deontological Ethics 37 2.7 Virtue Ethics 41 2.8 Summary and Review 44 Refl ections on the Chapter Discussion Case 45 Chapter Review Questions 46

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viii Contents

Chapter Three: Corporate Social Responsibility 48

Learning Objectives 48 Discussion Case: Walmart: Socially Responsible and Green? 49 Discussion Questions 53 3.1 Introduction 54 3.2 The Economic Model of Corporate Social Responsibility 54 3.3 Critical Assessment of the Economic Model:

The Utilitarian Defense 56 3.4 Critical Assessment of the Economic Model:

The Private Property Defense 61 3.5 The Philanthropic Model of Corporate Social Responsibility 64 3.6 Modifi ed Version of the Economic Model: The Moral Minimum 66 3.7 The Stakeholder Model of Corporate Social Responsibility 68 3.8 Strategic Model of Corporate Social Responsibility:

Sustainability 72 3.9 Summary and Review 74 Refl ections on the Chapter Discussion Case 76 Chapter Review Questions 77

Chapter Four: Corporate Culture, Governance, and Ethical Leadership 80

Learning Objectives 80 Discussion Case: Is Steve Jobs Health a Private Matter? 81 Discussion Questions 82 4.1 Introduction 83 4.2 What is Corporate Culture? 83 4.3 Culture and Ethics 85 4.4 Ethical Leadership and Corporate Culture 87 4.5 Effective Leadership and Ethical Leadership 88 4.6 Building a Values-Based Corporate Culture 90 4.7 Mandating and Enforcing Ethical Culture:

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