. Identify two major trends in the changing demographics of the workforce.
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BUSINESS ETHICS
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BUSINESS ETHICS A Stakeholder and Issues Management Approach
SIXTH EDITION
Joseph W. Weiss
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
