Business and Its Environment,9780133033144

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Business and Its Environment

by David Baron

Edition:

2nd

ISBN13:

9780133033144

ISBN10:

0133033147

Format:

Hardcover

Pub. Date:

9/1/1995

Publisher(s):

Prentice Hall Professional Technical Reference

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Summary

Brings together the disciplines of economics, political science, law, and ethics to address a class of management issues of growing importance to the performance of companies. Provides conceptual frameworks for understanding issues in the environment of business and their development; strategy formulation; analysis of the news media; political analysis; the economics and politics of government intervention in markets (regulation, antitrust, and torts); the economics and politics of international trade; the political economy of countries; and ethical analysis and decision-making. For all business professionals, including managers looking to enhance their knowledge of an ever-changing, increasingly global field.

Part I: Strategy and the Nonmarket Environment

(112)

Chapter 1: The Market and Nonmarket Environments

(26)

INTRODUCTION

(1)

THE ROLE OF MANAGEMENT

(1)

THE MARKET AND NONMARKET ENVIRONMENTS

(2)

The Four I's

(1)

THE NONMARKET ENVIRONMENT OF THE AUTOMOBILE INDUSTRY

(3)

Safety

(1)

Fuel Economy Standards

(1)

Environmental Protection

(1)

International Trade

(1)

Antitrust

(1)

Competitiveness

(1)

Employee Relations

(1)

Tax Policy

(1)

The Media and the Public

(1)

THE NONMARKET ENVIRONMENT AND ISSUE AGENDA

(5)

Issues

(1)

Interests

(1)

Institutions

(2)

Information

(1)

The Nonmarket Issue Agenda

(1)

CHANGE IN THE NONMARKET ENVIRONMENT

(2)

ANTICIPATING NONMARKET ISSUES

(1)

THE NONMARKET ISSUE LIFE CYCLE

(2)

SUMMARY

(2)

CASES

(7)

GENERAL MOTORS LIKE A ROCK? (A)

(3)

AN EMERGING ISSUE

(2)

THE NONMARKET ENVIRONMENT OF McDONALD'S

(2)

Chapter 2: Integrated Strategy

(26)

INTRODUCTION

(1)

STRATEGY IN THE NONMARKET ENVIRONMENT

(8)

The Importance of Nonmarket Strategy

(4)

Integrated Strategy

(2)

Nonmarket Assets and Distinctive Competencies

(1)

Strategies and Borders

(1)

ANALYSIS OF NONMARKET ISSUES

(2)

The Level of Analysis

(1)

Disciplinary Foundations of Nonmarket Analysis

(1)

Time Frame

(1)

A FRAMEWORK FOR THE ANALYSIS OF NONMARKET ISSUES

(2)

CASE: CITIBANK AND CREDIT CARDS FOR UNDERGRADUATES

(3)

Application of the Framework

(3)

ORGANIZATION OF THE NONMARKET STRATEGY FUNCTION

(1)

SUMMARY

(1)

CASES

(9)

GLOBAL WARMING

(2)

BUFFALO SAVINGS BANK (A)

(1)

ENVIROTEST SYSTEMS CORPORATION (A)

(6)

Chapter 3: The News Media and Nonmarket Issues

(26)

INTRODUCTION

(1)

THE ROLE OF THE NEWS MEDIA IN NONMARKET ISSUES

(2)

MESSAGES AND THEIR INTERPRETATION

(1)

A THEORY OF THE NEWS MEDIA

(4)

Intrinsic Audience Interest

(1)

Societal Significance

(1)

Combining the Perspectives

(2)

EXTENDING THE THEORY

(2)

Newsworthiness

(1)

The Audience

(1)

The Cost of Coverage

(1)

THE NATURE OF THE NEWS MEDIA

(3)

The News Media as a Business

(1)

The Profession

(1)

Does the Media Treat Issues Selectively?

(1)

MEDIA BEHAVIOR AND PUBLIC ATTITUDES TOWARD THE MEDIA

(1)

BUSINESS INTERACTIONS WITH THE NEWS MEDIA

(2)

The Need for Information

(1)

Media Strategies

(1)

Coverage and Responses

(1)

Developing Relationships with the Media

(1)

Media Interviews

(1)

STRATEGIES FOR ADDRESSING MEDIA ISSUES

(2)

Anticipatable Issues

(1)

Unanticipated Events

(1)

CASE: THE BODY SHOP

(1)

RECOURSE IN DISPUTES WITH THE MEDIA

(2)

Private Recourse

(1)

Recourse to the Law

(2)

SUMMARY

(2)

CASES

(4)

THE ALAR EPISODE (A)

(1)

ILLINOIS POWER COMPANY (A)

(1)

PROCTER & GAMBLE AND NEIGHBOR TO NEIGHBOR

(2)

Chapter 4: Private Nonmarket Action

(22)

INTRODUCTION

(3)

ACTIVIST STRATEGIES

(2)

ACTIVIST ORGANIZATIONS

(2)

Activist Organizations and Networks

(1)

The Center for Auto Safety

(1)

INTERACTING WITH INTEREST GROUPS AND ACTIVISTS

(5)

Strategy and Negotiations

(3)

SUMMARY

(2)

CASES

(8)

MONSANTO AND THE SYNTHETIC MILK HORMONE

(2)

DENNY'S AND CUSTOMER SERVICE (A)

(2)

NIKE AND THE OPERATION PUSH BOYCOTT (A)

(4)

Integrative Case Part I: Calgene, Inc. and Infrastructure Marketing

103

(10)

Part II: Nonmarket Strategies and Government Institutions

113

(124)

Chapter 5: Political Theory and Government Institutions

115

(34)

INTRODUCTION

115

(1)

MARKETS

115

(3)

The Role and Functioning of Markets

115

(1)

Consumer Surplus and Economic Rents

116

(2)

A CONNECTION BETWEEN THE MARKET AND NONMARKET ENVIRONMENTS

118

(3)

The Demand for Nonmarket Action

118

(1)

The Costs of Nonmarket and Collective Action

119

(2)

SOCIAL AND POLITICAL DILEMMAS

121

(2)

The Prisoners' Dilemma

121

(1)

Dilemmas, Repeated Encounters, and Cooperation

122

(1)

MAJORITY RULE-BASED INSTITUTIONS

123

(3)

Properties of Majority Rule

123

(1)

Arrow's Impossibility Theorem and Political Institutions

123

(1)

Agendas

124

(1)

The Median Voter Theorem

125

(1)

Committees in Legislatures

126

(1)

Bargaining Versus Voting

126

(1)

INSTITUTIONS

126

(12)

Congress

127

(1)

The Organization of Congress

127

(1)

The Legislative Process

128

(2)

Committees

130

(3)

Committee and Individual Power

133

(1)

Bargaining in Political Institutions

134

(1)

Delegation

134

(1)

Legislators and Their Constituencies

134

(1)

Vote Trading and Pivotal Voters

135

(1)

Committee and Personal Staffs

135

(1)

State Governments

136

(1)

Parties

136

(1)

The Presidency and the Executive Branch

137

(1)

POLITICS AND THE PUBLIC INTEREST

138

(1)

THE POLITICS OF THE EXTENSION OF DAYLIGHT-SAVING TIME

138

(5)

The Nature of Political Explanations

138

(1)

The Legislative History of the Extension

139

(1)

The Politics of Daylight-Saving Time

140

(2)

The Role of Information

142

(1)

An Analytical Characterization of the Politics of Daylight-Saving Time

142

(1)

SUMMARY

143

(2)

CASES

145

(4)

STANFORD UNIVERSITY'S ON-CAMPUS HOUSING PROGRAM

145

(1)

THE REPEAL OF THE LUXURY TAX

145

(1)

AN ELECTORAL DILEMMA (A)

146

(1)

AN ELECTORAL DILEMMA (B)

147

(2)

Chapter 6: Political Analysis for Business

149

(24)

INTRODUCTION

149

(1)

A FRAMEWORK FOR THE ANALYSIS OF POLITICAL AND COLLECTIVE ACTION

150

(8)

Interests and Interest Groups

150

(1)

The Amount of Political Action

151

(1)

The Demand for Political Action

152

(1)

The Costs of Political and Collective Action

153

(1)

The Effectiveness of Group Action

154

(1)

The Distributive Politics Spreadsheet

154

(1)

The Nature of Political Competition

155

(3)

Institutions and Institutional Officeholders

158

(1)

MORAL DETERMINANTS OF COLLECTIVE AND POLITICAL ACTION

158

(1)

CASE EXAMPLE: BOEING IN A PICKLE

159

(2)

ANALYSIS OF THE CASE EXAMPLE

161

(6)

The Nonmarket Issue

161

(1)

Distributive Consequences

161

(2)

Boeing's Nonmarket Agenda and Objectives

163

(1)

The Nature of the Politics

163

(2)

Institutions and Institutional Officeholders

165

(1)

Nonmarket Strategy Formulation

166

(1)

The Outcome

167

(1)

SUMMARY

167

(1)

APPENDIX

168

(2)

The Distributive Consequences of Foreign Leasing

168

(2)

CASES

170

(3)

LOTUS DEVELOPMENT CORPORATION AND MARKETPLACE HOUSEHOLD

170

(1)

SCRUBBERS AND ENVIRONMENTAL POLITICS

170

(1)

PIZZA HUT AND THE LEGAL DRINKING AGE

171

(2)

Chapter 7: Formulating Political Strategies

173

(26)

INTRODUCTION

173

(1)

RESPONSIBLE POLITICAL ACTION

173

(4)

Criticisms of Business Political Activity

174

(3)

POLITICAL STRATEGY FORMULATION

177

(5)

Managers and Political Strategies

177

(1)

An Approach to Strategy Formulation

177

(5)

EXAMPLES OF POLITICAL STRATEGIES

182

(4)

Toshiba and Trade Sanctions

182

(2)

Section 89 of the 1986 Tax Act

184

(1)

Merck and Pharmaceutical Price Regulation

185

(1)

THEORY AND STRATEGY FORMULATION

186

(2)

SUMMARY

188

(3)

CASES

191

(8)

DRUG EXPORTS

191

(1)

RBOC POLITICS (A)

192

(2)

THE SECTION 936 TAX CREDIT

194

(5)

Chapter 8: Implementing Political Strategies

199

(30)

INTRODUCTION

199

(1)

LOBBYING

199

(4)

Lobbying by Managers

199

(1)

The Nature of Lobbying

199

(1)

Persuasion or Information Provision?

200

(1)

Access

201

(1)

Timing

202

(1)

Government Allies

202

(1)

Controls on Lobbying

202

(1)

GRASSROOTS STRATEGIES AND THE CONSTITUENT CONNECTION

203

(2)

Mobilization

203

(1)

Business Grassroots Campaigns

204

(1)

The Effectiveness of Grassroots Programs

205

(1)

COALITION BUILDING

205

(4)

Peak Associations

206

(1)

Trade Associations

206

(1)

Forming Ad Hoc Coalitions

207

(1)

Coalitions and Consensus

207

(2)

Responsibility

209

(1)

TESTIMONY

209

(1)

BUSINESS POLITICAL ENTREPRENEURSHIP

210

(1)

ELECTORAL STRATEGIES

210

(3)

Election Financing Laws

211

(1)

The Pattern of Campaign Contributions and Expenditures

212

(1)

Purposes of Campaign Contributions

212

(1)

COMMUNICATION AND PUBLIC ADVOCACY

213

(1)

JUDICIAL STRATEGIES

214

(1)

ADVISORY PANELS AND COMMITTEES

215

(1)

ORGANIZING FOR POLITICAL EFFECTIVENESS

215

(1)

SUMMARY

215

(1)

CASES

218

(11)

DREXEL BURNHAM LAMBERT AND JUNK BOND POLITICS

218

(1)

ENVIROTEST SYSTEMS CORPORATION (B)

219

(2)

CAFE STANDARDS 1990

221

(8)

Integrative Case Part II: Manufacturing Politics (A)

229

(8)

Part III: Government and Markets

237

(136)

Chapter 9: Antitrust: Economics, Law, Policy, and Politics

239

(30)

INTRODUCTION

239

(1)

ANTITRUST LAW AND ENFORCEMENT

240

(7)

The Antitrust Statutes

240

(2)

Exemptions

242

(1)

Government Enforcement of the Antitrust Laws

242

(3)

Private Antitrust Actions

245

(2)

Per Se Violations and the Rule of Reason

247

(1)

SCHOOLS OF ANTITRUST THOUGHT

247

(5)

The Traditional or Structural Approach

249

(1)

The Chicago School

250

(2)

The Strategic Approach

252

(1)

EXAMPLES OF THE DIFFERENCES IN ANTITRUST THOUGHT

252

(4)

Vertical Arrangements

252

(2)

Predatory Pricing and Entry Deterrence

254

(2)

Collusion and Price-Fixing

256

(1)

MERGERS AND MERGER GUIDELINES

256

(2)

STATE ANTITRUST ENFORCEMENT

258

(1)

COMPLIANCE

258

(1)

THE POLITICS OF ANTITRUST

259

(1)

SUMMARY

260

(2)

CASES

262

(7)

APPLE COMPUTER AND MAIL-ORDER SALES

262

(1)

GOODYEAR TIRE AND RUBBER CO.

263

(1)

THE MALT BEVERAGE INTERBRAND COMPETITION ACT

264

(5)

Chapter 10: Regulation: Law, Economics, and Politics

269

(26)

INTRODUCTION

269

(1)

PERIODS OF REGULATORY CHANGE

270

(1)

THE CONSTITUTIONAL BASIS FOR REGULATION

271

(1)

REGULATORY COMMISSIONS AND AGENCIES

272

(1)

THE NONMARKET ENVIRONMENT OF REGULATORY AGENCIES

272

(2)

DELEGATION, DUE PROCESS, AND DISCRETION

274

(2)

EXPLANATIONS FOR REGULATION

276

(1)

MARKET IMPERFECTIONS

276

(6)

Natural Monopoly

276

(2)

Externalities

278

(1)

Public Goods

278

(1)

Asymmetric Information

279

(1)

Moral Hazard

280

(1)

Transactions Costs

281

(1)

Destructive Competition

281

(1)

Government Imperfections

282

(1)

THE POLITICAL ECONOMY OF REGULATION

282

(3)

Cross-Subsidization

284

(1)

Cost-of-Service Regulation

284

(1)

TELECOMMUNICATIONS AND REGULATORY CHANGE

285

(3)

Alternatives to Cost-of-Service Regulation

286

(1)

Other Regulatory Innovations

287

(1)

SUMMARY

288

(1)

CASES

289

(6)

SEARS AND THE LOCAL REGULATION OF ADVERTISING

289

(1)

THE FCC AND INTERNATIONAL TELEPHONE RATES

290

(2)

AMR, CORP.

292

(3)

Chapter 11: Product Safety: Liability and Regulation

295

(38)

INTRODUCTION

295

(1)

THE PRODUCT SAFETY PROBLEM AND SOCIAL EFFICIENCY

296

(2)

ENTITLEMENTS, LIABILITY, AND SOCIAL EFFICIENCY

298

(4)

The Coase Theorem

298

(1)

Entitlements and Their Protection

299

(1)

Transactions Costs and the Limits of the Coase Theorem

300

(1)

The Assignment of Costs and the Choice Between Liability and Regulation

301

(1)

PRODUCTS LIABILITY LAW

302

(10)

Products Liability Cases

302

(1)

The Development of Products Liability

303

(3)

Allowable Defenses Under Strict Liability

306

(1)

Damages

307

(1)

Imperfections in the Liability System

308

(1)

Absolute Liability

309

(1)

Further Change and Revision of Products Liability

310

(1)

The Politics of Products Liability

310

(2)

PRODUCT SAFETY REGULATION

312

(3)

CHAIN SAW SAFETY

315

(4)

The Safety Issue

315

(1)

Market Imperfections

316

(2)

Channels of Distribution and Information Provision

318

(1)

The Consumer Product Safety Commission's Standard Setting Efforts

318

(1)

SUMMARY

319

(2)

CASES

321

(12)

DOMINO'S DELIVERS (A)

321

(1)

CALIFORNIA SPACE HEATERS, INC. (A)

322

(3)

PEPSI-COLA AND THE SYRINGE EPISODE

325

(3)

BIC DISPOSABLE BUTANE LIGHTERS

328

(5)

Chapter 12: Environmental Protection: Economics, Politics, and Management

333

(32)

INTRODUCTION

333

(1)

SOCIALLY EFFICIENT REGULATION OF POLLUTION EXTERNALITIES

334

(5)

Emissions Charges

334

(1)

Tradable Permits

335

(1)

Abatement Decisions

336

(2)

Distributive Consequences

338

(1)

Uncompensated Damages

338

(1)

Implementing Socially Efficient Regulation

338

(1)

THE ENVIRONMENTAL PROTECTION AGENCY

339

(4)

Standard Setting and Engineering Controls

341

(1)

Incentive Approaches

342

(1)

Superfund

342

(1)

THE POLITICS OF ENVIRONMENTAL PROTECTION

343

(3)

Changing Politics?

345

(1)

NIMBY

346

(5)

The 1990 Amendments to the Clean Air Act

347

(1)

Acid Rain and Tradable Permits

348

(3)

MANAGEMENT OF ENVIRONMENTAL PROTECTION ISSUES

351

(4)

Internal Management Issues

352

(1)

McDonald's and Waste Reduction

353

(1)

Kodak and the Recycling of Single-Use Cameras

354

(1)

3M and Pollution Prevention Pays

354

(1)

SUMMARY

355

(2)

CASES

357

(8)

AMERICAN NUKEM, INC.

357

(1)

PROCTER & GAMBLE AND DISPOSABLE DIAPERS

358

(3)

WESTLANDS WATER DISTRICT

361

(4)

Integrative Case Part III: Calgene, Inc.: The FLAVR SAVR Tomato and the Regulatory Approval Process

365

(8)

Part IV: International Business and Nonmarket Issues

373

(140)

Chapter 13: Country Analysis: The Political Economy of Japan

375

(24)

INTRODUCTION

375

(2)

ISSUES

377

(1)

INTERESTS

377

(1)

INSTITUTIONS

378

(9)

The Diet (Parliament)

378

(2)

Political Parties and the Electoral System

380

(3)

The Bureaucracy

383

(3)

The Judicial System

386

(1)

The Anti-Monopoly Law and the Fair Trade Commission

386

(1)

INFORMATION

387

(1)

THE MEDIA

387

(1)

CULTURAL FOUNDATIONS

388

(1)

TYING THE COMPONENTS TOGETHER: A FRAMEWORK FOR POLITICAL EXCHANGE

389

(5)

Political Exchange

390

(4)

SUMMARY

394

(1)

CASES

395

(4)

THE BREAKUP OF NIPPON TELEPHONE AND TELEGRAPH?

395

(2)

FUJITSU AND BUYING IN

397

(2)

Chapter 14: Nonmarket Strategy in the Japanese Political Economy

399

(20)

INTRODUCTION

399

(1)

CHARACTERISTICS OF BUSINESS

400

(5)

The Organization of Business

400

(2)

Business Attitudes Toward Shareholders and the Market for Control

402

(1)

Business Practices

403

(2)

BUSINESS-GOVERNMENT INTERACTIONS

405

(5)

The Organization of Business for Political Action

405

(1)

Political Strategies

405

(1)

Lobbying and Points of Access

406

(2)

Joint Ventures as a Mechanism for Accessing the Government

408

(1)

Information

408

(1)

Coalition Building

408

(1)

An Incident

409

(1)

CORPORATE POLITICAL STYLES

410

(1)

SUMMARY

411

(1)

CASES

412

(7)

SYNTEX: THE CHALLENGE IN JAPAN

412

(4)

TOYS (XXX) US IN JAPAN (A)

416

(3)

Chapter 15: The European Union

419

(38)

INTRODUCTION

419

(1)

THE UNION

419

(3)

The Single European Act

420

(1)

The Maastricht Treaty

421

(1)

NONMARKET ISSUES

422

(1)

THE INSTITUTIONS OF THE EUROPEAN UNION

423

(11)

The European Commission

423

(1)

The Council of Ministers

424

(1)

The European Parliament

425

(1)

The Economic and Social Committee

425

(1)

The European Court of Justice

426

(1)

The EU Legislative Process

426

(1)

Competition Policy

427

(3)

Privatization and Market Opening

430

(1)

State Aids

431

(1)

Company Law

431

(1)

Social Charter

431

(1)

Social Democracy and Labor

432

(1)

Competition Among the States

432

(1)

Fortress Europe?

433

(1)

INTERESTS AND THEIR ORGANIZATION

434

(1)

NONMARKET STRATEGIES IN THE EUROPEAN UNION

435

(3)

GERMANY

438

(5)

Institutions: The Structure of Government

438

(2)

The Political Economy of Germany

440

(1)

Interests and Their Organization

441

(2)

SUMMARY

443

(1)

CASES

444

(13)

BENETTON, ADVERTISING PROTESTS, AND FRANCHISING

444

(1)

THE EUROPEAN AUTO INDUSTRY

445

(6)

PHILIPS N.V. AND THE CHALLENGE OF A SINGLE MARKET (A)

451

(3)

TOYS (XXX) US IN GERMANY

454

(3)

Chapter 16: The Political Economy of International Trade Policy

457

(24)

INTRODUCTION

457

(2)

THE ECONOMICS OF INTERNATIONAL TRADE

459

(4)

Competitive Theory

459

(2)

Strategic Trade Theory

461

(2)

THE POLITICAL ECONOMY OF INTERNATIONAL TRADE POLICY

463

(3)

The Dual Nature of the Politics of International Trade

463

(1)

Asymmetries in the Politics

464

(2)

INTERNATIONAL TRADE AGREEMENTS

466

(5)

The General Agreement on Tariffs and Trade and the World Trade Organization

467

(1)

The Uruguay Round (1986-1993)

468

(2)

Additional Issues

470

(1)

Dispute Settlement

471

(1)

OTHER MULTILATERAL AND BILATERAL AGREEMENTS

471

(2)

SUMMARY

473

(1)

CASES

474

(7)

THE SEMICONDUCTOR TRADE AGREEMENT: ROUND II

474

(2)

THE NEXT GATT ROUND: ENVIRONMENTAL PROTECTION?

476

(1)

ANTIDUMPING POLICY

477

(4)

Chapter 17: U.S. Trade Policy, Politics, and Negotiations

481

(28)

INTRODUCTION

481

(1)

U.S. TRADE POLICY

482

(2)

The Structure of U.S. Trade Policy

482

(1)

U.S. Trade Law and Its Administration

482

(1)

The International Trade Commission

483

(1)

The International Trade Administration

484

(1)

THE POLITICS OF PROTECTIONISM

484

(4)

Formal Policies

484

(3)

Channels of Protection

487

(1)

THE POLITICAL ECONOMY OF MARKET OPENING

488

(3)

The North American Free Trade Agreement

488

(1)

Market Opening and Client Politics

489

(1)

Market Opening Under the Threat of Retaliation: The Omnibus Trade and Competitiveness Act of 1988 and "Super 301"

490

(1)

TRADE NEGOTIATIONS BETWEEN THE UNITED STATES AND JAPAN

491

(2)

Cellular Telephone Disputes

492

(1)

SUMMARY

493

(1)

APPENDIX

494

(3)

U.S. Trade Law

494

(1)

Section 201--The Escape Clause

494

(1)

Section 301--Presidential Retaliation

494

(1)

Section 731--Antidumping

495

(1)

Section 303--Countervailing Duties

495

(1)

Section 337--Intellectual Property

495

(1)

Trade Adjustment Assistance

495

(2)

CASES

497

(12)

CEMEX AND ANTIDUMPING

497

(7)

SUPERCOMPUTER POLITICS AND TRADE RELATIONSHIPS

504

(1)

THE CELLULAR TELEPHONE TRADE DISPUTE: ROUND III

505

(2)

ANOTHER TRADE DISPUTE?

507

(2)

Integrative Case Part IV: Toys (XXX) US and Globalization

509

(4)

Part V: Ethics and Responsibility

513

Chapter 18: Corporate Social Responsibility

515

(28)

INTRODUCTION

515

(2)

THE ROLE OF BUSINESS IN SOCIETY

517

(2)

The Efficiency Perspective

517

(1)

Concerns About the Efficiency Perspective

518

(1)

Market Capitalism and Managerial Capitalism

518

(1)

The Social Responsibility Perspective

519

(1)

CONCEPTIONS OF THE SOCIAL RESPONSIBILITY OF BUSINESS

519

(6)

The Law

519

(1)

Corporate Social Responsibility as Market Value Maximization

520

(2)

The Business Roundtable Statement on Social Responsibility

522

(1)

An Example of the Difference Between Friedman and the Business Roundtable

523

(1)

The Stakeholder Concept

524

(1)

EXAMPLES OF CORPORATE SOCIAL RESPONSIBILITY?

525

(2)

Unocal Corporation and the Dirty Car Bounty

525

(1)

ARCO and Gasoline Price Restraints

526

(1)

Aetna and Housing Rehabilitation

526

(1)

Shorebank and Community Development

527

(1)

SOCIAL RESPONSIBILITY: MOTIVES AND CAUSALITY

527

(4)

CORPORATE GOVERNANCE

531

(4)

Constituent Representation

531

(1)

Social Accountability

531

(1)

The Duties of Boards of Directors

532

(2)

The Market for Control

534

(1)

SUMMARY

535

(1)

CASES

536

(7)

WESTERN NATIONAL BANK

536

(1)

HEADQUARTERS RELOCATION: KIMBERLY-CLARK AND THE STATE OF WISCONSIN

536

(4)

RESPONSIBILITY FOR YOUR CUSTOMERS?

540

(1)

RESPONSIBILITY FOR YOUR SUPPLIERS?

541

(2)

Chapter 19: Ethical Systems and Management

543

(28)

INTRODUCTION

543

(1)

WHAT ETHICS IS AND IS NOT

544

(2)

Issue: Integrity Tests

545

(1)

THE METHODOLOGY OF ETHICAL ANALYSIS

546

(1)

THE RELATIONSHIPS AMONG MORAL PHILOSOPHY, ETHICS, AND POLITICAL PHILOSOPHY

547

(1)

CLASSIFICATION OF ETHICAL SYSTEMS

548

(1)

UTILITARIANISM: A CONSEQUENTIALIST SYSTEM

549

(4)

Consequences and Their Evaluation

549

(2)

Act and Rule Utilitarianism

551

(1)

Utilitarianism and Rights

552

(1)

Criticisms of Utilitarianism

552

(1)

DEONTOLOGICAL SYSTEMS

553

(4)

Kantian Maxims or Moral Rules

553

(1)

The Relationship Between Maxims and Rights

554

(1)

Criticisms of Kantian Rights

555

(1)

Neoclassical Liberalism

556

(1)

RAWLS' THEORY OF JUSTICE

557

(4)

The Framework for Justice as Fairness

557

(1)

The Principles of Justice

558

(1)

The Role of Incentives

559

(1)

Criticisms of Rawls' Theory

560

(1)

HIGHER ORDER STANDARDS FOR JUDGING RULES AND PRINCIPLES

561

(1)

CATEGORIES OF JUSTICE THEORIES

562

(1)

DISTRIBUTIVE JUSTICE

562

(1)

Compensatory Justice

563

(1)

SUMMARY

563

(2)

CASES

565

(6)

SEX-DIFFERENTIATED RETIREMENT BENEFITS

565

(2)

LIVING BENEFITS

567

(1)

GENETIC TESTING

568

(3)

Chapter 20: Ethical Reasoning in Management

571

(30)

INTRODUCTION

571

(1)

ETHICS AND PRIVATE INTERESTS

571

(1)

CASUISTRY

572

(1)

THE APPLICATION OF UTILITARIAN ANALYSIS

573

(6)

Categories of Situations

573

(1)

Methodology

574

(1)

Difficulties in the Implementation of Utilitarian Analysis

575

(4)

APPLIED RIGHTS ANALYSIS

579

(6)

Classes of Rights

580

(1)

Claimed and Granted Rights

580

(1)

A Method for Rights Analysis

581

(1)

Conflicts Among Rights

582

(3)

THE APPLICATION OF PRINCIPLES OF JUSTICE

585

(3)

INTEGRATIVE EXAMPLE: RENGER GARDEN EQUIPMENT COMPANY

588

(5)

Analysis of the Renger Garden Equipment Company Example

589

(1)

Utilitarian Analysis

589

(1)

Rights Analysis

590

(2)

Justice and Fairness

592

(1)

RENGER SUMMARY

593

(1)

CASES

594

(7)

DELTA INSTRUMENTS, INC.

594

(1)

AIRLINE SAFETY AND SPECIAL ISSUANCES

595

(1)

PSYCHOLOGICAL TESTING

596

(1)

PRICING THE NORPLANT^R SYSTEM

597

(4)

Chapter 21: Implementing Ethics Systems

601

(26)

INTRODUCTION

601

(2)

MORAL DETERMINANTS OF NONMARKET ACTION

603

(2)

An Approach

603

(2)

TENSIONS IN THE IMPLEMENTATION OF ETHICAL PRINCIPLES

605

(3)

Individual Actions and Responsibility for Their Consequences

605

(1)

Paternalism

606

(1)

Political Action and Restraint

607

(1)

CORPORATE SOCIAL RESPONSIBILITY REVISITED

608

(1)

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS IN PRACTICE

609

(9)

Statements of Commitment and Expectations

609

(1)

Core Principles and Their Evolution

610

(1)

Levi Strauss & Co. Business Partner Terms of Engagement

611

(2)

Process

613

(1)

Codes of Conduct

613

(2)

Competitive and Proprietary Information

615

(1)

Defense Contractors and Ethics Programs

615

(1)

Compliance

616

(1)

Examples of Implemented Policies

617

(1)

SOURCES OF UNETHICAL BEHAVIOR

618

(2)

SUMMARY

620

(1)

CASES

621

(6)

CIRCLE K CORPORATION AND EMPLOYEE HEALTH CARE COSTS (A)

621

(1)

FAIR COMPETITION

622

(1)

HONDA AND EXCESS DEMAND

623

(2)

LEVI STRAUSS & CO. TERMS OF ENGAGEMENT AUDITS

625

(2)

Chapter 22: Ethical Issues in the Employment Relationship

627

(30)

INTRODUCTION

627

(1)

EMPLOYMENT RIGHTS

627

(4)

The Evolution of Employment Rights

627

(1)

Employee Rights in Continuing Jobs

628

(1)

Employee Rights When Jobs Are Being Eliminated

629

(1)

Managerial Considerations

630

(1)

EQUAL EMPLOYMENT OPPORTUNITY

631

(3)

The Burden of Proof

633

(1)

AFFIRMATIVE ACTION

634

(4)

Sexual Harassment

636

(2)

DIVERSITY

638

(1)

WOMEN IN MANAGEMENT

638

(1)

COMPANY PROGRAMS

639

(1)

ORGANIZED LABOR

640

(2)

PRIVACY AND DRUG TESTING

642

(2)

WHISTLE-BLOWING

644

(2)

SUMMARY

646

(1)

APPENDIX

647

(1)

The Principal Equal Opportunity Laws

647

(2)

CASES

649

(8)

AMERICAN AIRLINES AND WEIGHT STANDARDS

649

(1)

BEARDS

650

(1)

ADVANCED TECHNOLOGY, INC. (ATI)

651

(4)

DRUG TESTING IN A COMPETITIVE INDUSTRY

655

(2)

Chapter 23: Ethical Issues in International Business

657

(26)

INTRODUCTION

657

(1)

INTERNATIONAL LAW AND INSTITUTIONS

658

(1)

CULTURAL RELATIVISM

659

(1)

HUMAN RIGHTS AND JUSTICE

660

(2)

Slave Labor in Saipan?

662

(1)

QUESTIONABLE FOREIGN PAYMENTS

662

(6)

Questionable Payments and Ethical Principles

663

(1)

The Lockheed Case

664

(1)

The Foreign Corrupt Practices Act

665

(1)

Company Codes

666

(1)

Cummins Practice

667

(1)

OPERATING IN DEVELOPING COUNTRIES

668

(2)

ISSUE: TOBACCO EXPORTS

670

(1)

SUMMARY

671

(2)

CASES

673

(10)

COMPLICATIONS IN CAPRIOTA

673

(1)

MARKETING INFANT FORMULA IN DEVELOPING COUNTRIES

674

(1)

CIGARETTE PROMOTION IN INDIA

675

(1)

LEVI STRAUSS & CO. IN CHINA

676

(4)

UNIVERSITY GAMES, INC.

680

(3)

Integrative Case Part V: Levi Strauss & Co. Global Sourcing Guidelines

683

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