McGraw-Hill Irwin. Decision Making for Personal Integrity and Social Responsibility. Second Edition. Laura P. Hartman. Joe Desjardins.
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1 Decision Making for Personal Integrity and Social Responsibility Second Edition Laura P. Hartman DePaul University Joe Desjardins College of St. Benedict/St. John's University Me Grauu Hill McGraw-Hill Irwin
2 Table of About the Authors Preface vii vi Chapter 1 Ethics and Business 1 Opening Decision Point: The Meaning of "Good" 2 Introduction: Making the Case for Business Ethics 3 ' Business Ethics as Ethical Decision Making 11 Business Ethics as Personal Integrity and Social Responsibility 13 Ethics and the Law 19 Ethics as Practical Reason 26 Readings Value Shift An Ethical Hero or a Failed Businessman? The Maiden Mills Case Revisited How to Write about Africa 42 Chapter 2 Ethical Decision Making: Personal and Professional Contexts 45 Opening Decision Point: What Would You Do? 46 Introduction 47 A Decision-Making Process for Ethics 47 When Ethical Decision Making Goes Wrong: Why Do "Good" People Engage in "Bad" Acts? 59 Ethical Decision Making in Managerial Roles 63 Readings The Parable of the Sadhu Managing for Stakeholders What Stakeholder Theory Is Not When Good People Do Bad Things at Work: Rote Behavior, Distractions, and Moral Exclusion Stymie Ethical Behavior on the Job 91 Chapter 3 Philosophical Ethics and Business 95 Opening Decision Point: Executive Compensation: Needed Incentives, Justly Deserved, or Just Distasteful? 96 Introduction: Ethical Theories and Traditions 97 Utilitarianism: Making Decisions Based on Ethical Consequences 100 Utilitarianism and Business 102 Challenges to Utilitarian Ethics 104 Deontology: An Ethics of Rights and Duties 107 Human Rights and Duties 110 Moral Rights and Legal Rights 114 Challenges to an Ethics of Rights and Duties 115 Virtue Ethics: Making Decisions Based on Integrity and Character 116 A Decision-Making Model for Business Ethics Revisited 121 Readings Business and Human Rights: A Not-So-New Framework for Corporate Responsibility The Caux Principles for Responsible Business Ethical Dimensions of Decision-Making in the Developing World: The Case of Bribery in Mauritius It Seems Right in Theory but Does It Work in Practice? 137 Chapter 4 The Corporate Culture Impact and Implications 143 Opening Decision Point: Creating an Ethics Program 144 What Is Corporate Culture? 145 Culture and Ethics 149 Compliance and Value-Based Cultures 152 Ethical Leadership and Corporate Culture 154
3 xiv Table of Contents Effective Leadership and Ethical, Effective Leadership 158 Building a Values-Based Corporate Culture 159 Mission Statements, Credos, Codes of Conduct, and Statements of Values 159 Developing the Mission and Code 162 Culture Integration: Ethics Hotlines, Ombudspersons, and Reporting 163 Assessing and Monitoring the Corporate Culture: Audits 167 Mandating and Enforcing Culture: The Federal Sentencing Guidelines for Organizations 169 Readings Leadership in a Values-Based Organization: The Sears Lectureship in Business Ethics at Bentley College Thursday, February 7, Whistleblowing Today: Critical Issues Facing Business Leadership Assessment and Plan for Organizational Culture Change at NASA Does the Company Get It? 20 Questions to Ask Regarding Compliance, Ethics, and Risk Management 193 Chapter 5 Corporate Social Responsibility 203 Opening Decision Point: Social Entrepreneurship: Banking on Poverty 204 Introduction 206 Ethics and Social Responsibility 207 Philanthropic Model of CSR 212 Social Web Model of CSR 213 Example of a Social Web Model: Stakeholder Theory 214 Integrative Model of CSR 216 The Implications of Sustainability in the Integrative Model of CSR 217 Exploring Enlightened Self-interest: Does "Good Ethics" Mean "Good Business"? 219 Readings / Rethinking the Social Responsibility of Business: A Reason Debate Featuring Milton Friedman, Whole Foods'John Mackey, and Cypress Semiconductor's T. J. Rodgers Does It Pay to Be Good? The Big Interview: JeffSwartz "Consumer Trust That's Goodfor the Sole": Timberland's JeffSwartz Explains Why Brands Must Start Engaging Consumers on Social Issues to Rebuild Trust Lost during the Financial Crisis 245 Chapter 6 Ethical Decision Making: Employer Responsibilities and Employee Rights 249 Opening Decision Point: Abercrombie & Fitch: Image Consciousness? 250 Introduction 251 Ethical Issues in the Workplace: The Current Environment 252 Defining the Parameters of the Employment Relationship 254 Due Process and Just Cause 254 Downsizing 259 Health and Safety 262 Health and Safety as Acceptable Risk 264 Health and Safety as Market Controlled 266 Health and Safety Government-Regulated Ethics 268 Global Applications: The Global Workforce and Global Challenges 270 The Case of Child Labor 275 Rights and Responsibilities in Conflict: Discrimination, Diversity, and Affirmative Action 276 Discrimination 276 Diversity 279 Affirmative Action 283 Readings Employment-at-Will, Employee Rights, and Future Directions for Employment Confessions of a Sweatshop Inspector 307
4 Table of Contents xv 6-3 Sweatshops, Choice, and Exploitation Attacking the Roots: Shiraishi Garments Company and an Evolving Thicket of Business Ethics in China 326 Chapter 7 Ethical Decision Making: Technology and Privacy in the Workplace 333 Opening Decision Point: "Reasonable" Use of Company Technology 334 -* Introduction 335 The Right to Privacy 337 Defining Privacy 337 Ethical Sources of a Right to Privacy 338 Legal Sources of a Right to Privacy 339 Global Applications 342 Linking the Value of Privacy to the Ethical Implications of Technology 345 Information and Privacy 346 Managing Employees through Monitoring 349 Monitoring Employees through Drug Testing 354 Other Forms of Monitoring 356 Business Reasons to Limit Monitoring 358 Balancing Interests 358 Regulation of Off-Work Acts 361 Privacy Rights since September 11, Readings Drug Testing and the Right to Privacy: Arguing the Ethics of Workplace Drug Testing Medical Ethics for the Newest Practitioners: Health Web Sites Power and Responsibility in Online Health Bridging the Digital Gap in Emerging Economies The Ethical Use of Technology in Business 397 Chapter 8 Ethics and Marketing 403 Opening Decision Point: Marketing Pharmaceuticals 404 Introduction 406 Ethical Issues in Marketing: A Framework 408 Responsibility for Products: Safety and Liability 412 Contractual Standards for Product Safety 413 Tort Standards for Product Safety 415 Strict Product Liability 421 Ethical Debates on Product Liability 421 Responsibility for Products: Advertising and Sales 423 Ethical Issues in Advertising 425 Marketing Ethics and Consumer Autonomy 426 Marketing to Vulnerable Populations 431 Supply Chain Responsibility 436 Sustainable Marketing 439 Product 439 Price 440 Promotion 442 Placement 445 Readings The Friendship of Buzz, Blog and Swag First Analysis of Online Food Advertising Targeting Children Fortune at the Bottom of the Pyramid Response to A. Karnani 4 74 Chapter 9 Business and Environmental Sustainability 479 Opening Decision Point: When is Building Design and Construction an Ethical Issue? 480 Introduction 481 Business Ethics and Environmental Values 484 The Market Approach 488 The Regulatory Approach 490 Business' Environmental Responsibilities: The Sustainability Approach 493 The "Business Case" for a Sustainable Economy 497 Principles for a Sustainable Business 498
5 Table of Contents xv 6-3 Sweatshops, Choice, and Exploitation Attacking the Roots: Shiraishi Garments Company and an Evolving Thicket of Business Ethics in China 326 Chapter 7 Ethical Decision Making: Technology and Privacy in the Workplace 333 Opening Decision Point: "Reasonable" Use of Company Technology 334? Introduction 335 The Right to Privacy 337 Defining Privacy 337 Ethical Sources of a Right to Privacy 338 Legal Sources of a Right to Privacy 339 Global Applications 342 Linking the Value of Privacy to the Ethical Implications of Technology 345 Information and Privacy 346 Managing Employees through Monitoring 349 Monitoring Employees through Drug Testing 354 Other Forms of Monitoring 356 Business Reasons to Limit Monitoring 358 Balancing Interests 358 Regulation of Off-Work Acts 361 Privacy Rights since September 11, Readings Drug Testing and the Right to Privacy: Arguing the Ethics of Workplace Drug Testing 3/6 7-2 Medical Ethics for the Newest Practitioners: Health Web Sites Power and Responsibility in Online Health Bridging the Digital Gap in Emerging Economies The Ethical Use of Technology in Business 397 Chapter 8 Ethics and Marketing 403 Opening Decision Point: Marketing Pharmaceuticals 404 Introduction 406 Ethical Issues in Marketing: A Framework 408 Responsibility for Products: Safety and Liability 412 Contractual Standards for Product Safety 413 Tori Standards for Product Safety 415 Strict Product Liability 421 Ethical Debates on Product Liability 421 Responsibility for Products: Advertising and Sales 423 Ethical Issues in Advertising 425 Marketing Ethics and Consumer Autonomy 426 Marketing to Vulnerable Populations 431 Supply Chain Responsibility 436 Sustainable Marketing 439 Product 439 Price 440 Promotion 442 Placement 445 Readings The Friendship of Buzz, Blog and Swag First Analysis of Online Food Advertising Targeting Children Fortune at the Bottom of the Pyramid Response to A. Karnani 4 74 Chapter 9 Business and Environmental Sustainability 479 Opening Decision Point: When is Building Design and Construction an Ethical Issue? 480 Introduction 481 Business Ethics and Environmental Values 484 The Market Approach 488 The Regulatory Approach 490 Business' Environmental Responsibilities: The Sustainability Approach 493 The "Business Case" for a Sustainable Economy 497 Principles for a Sustainable Business 498
6 xvi Table of Contents Readings The Next Industrial Revolution Taking Sustainability Seriously: An Argument for Managerial Responsibility Beyond Corporate Responsibility: Social Innovation and Sustainable Development as Drivers of Business Growth 518 Chapter 10 Ethical Decision Making: Corporate Governance, Accounting, and Finance 527 Opening Decision Point: Is Steve Jobs' Health Status a Private Matter? 528 Professional Duties and Conflicts of Interest 531 The Sarbanes-Oxley Act of The Internal Control Environment 539 Going beyond the Law: Being an Ethical Board Member 541 Legal Duties of Board Members 541 Beyond the Law, There Is Ethics 542 Conflicts of Interest in Accounting and the Financial Markets 544 Executive Compensation 547 Insider Trading 553 Readings Thoughts on Reform: On the First Anniversary of the Collapse of Lehman Brothers Islamic Banking and Finance: Moral Beliefs and Business Practices at Work Why "Best" Corporate Governance Practices Are Unethical and Less Competitive How Much Compensation Can CEOs Permissibly Accept? 583 Glossary 591 Index 599
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