Business and Its Environment

by Baron, David P.

• ISBN13: 9780130815613
• ISBN10: 0130815616
• Edition: 3rd
• Format: Hardcover
• Copyright: 1999-09-01
• Publisher: Prentice Hall

Summary

Taking a managerial perspective with respect to the subject matter and the cases provided, this book uses a structured and disciplinary approach to address a class of management issues of growing importance to the performance of companies. This approach brings together the disciplines of economics, political science, law, and ethics to provide a deeper understanding of the issues.

Table of Contents

Preface	xix
PART I: STRATEGY AND THE NONMARKET ENVIRONMENT	1	(118)
The Market and Nonmarket Environments	3	(27)
Introduction	3	(1)
The Role of Management	4	(1)
The Market and Nonmarket Environments	5	(2)
The Four I's	6	(1)
The Nonmarket Environment of the Automobile Industry Safety	7	(4)
Safety	7	(1)
Air bags	7	(1)
Fuel economy	8	(1)
Alternative fuel vehicles	8	(1)
Emissions	9	(1)
Activist pressure	9	(1)
Media coverage	9	(1)
Liability	10	(1)
Taxes	10	(1)
Global warming	10	(1)
International trade	10	(1)
Labor relations	11	(1)
Sexual harassment	11	(1)
The Nonmarket Environment and Issue Agenda	11	(6)
Issues	11	(1)
Interests	12	(1)
Institutions	13	(1)
Information	14	(1)
The nonmarket issue agenda	15	(2)
Change in the Nonmarket Environment	17	(2)
Anticipating Nonmarket Issues	19	(1)
Example: Graduation Cards	19	(1)
The Nonmarket Issue Life Cycle	20	(2)
Summary	22	(1)
Cases	23	(7)
General Motors Like a Rock? (A)	23	(3)
An Emerging Issue: MTBE	26	(2)
The Nonmarket Environment of McDonald's	28	(2)
Integrated Strategy	30	(30)
Introduction	30	(1)
Strategy in the Nonmarket Environment	30	(4)
The importance of nonmarket strategy	30	(2)
Timing and the nonmarket issue life cycle	32	(1)
Integrated strategy	33	(1)
Microsoft	34	(8)
Nonmarket Assets and Competencies	42	(1)
Strategies and borders	43	(1)
Analysis of Nonmarket Issues	43	(2)
The level of analysis	43	(2)
Disciplinary foundations of nonmarket analysis	45	(1)
A Framework for the Analysis of Nonmarket Issues	45	(2)
Case: Citibank and Credit Cards for Undergraduates	47	(3)
Application of the framework	47	(3)
Citibank I	50	(1)
Citibank II	50	(1)
Organization of the Nonmarket Strategy Function	50	(1)
Summary	51	(1)
Cases	52	(8)
Envirotest Systems Corporation (A)	52	(4)
Personal Watercraft aka Jet Skis	56	(2)
Buffalo Savings Bank (A)	58	(2)
The News Media and Nonmarket Issues	60	(30)
Introduction	60	(1)
The Role of the News Media in Nonmarket Issues	60	(2)
Messages and Their Interpretation	62	(1)
A Theory of the News Media Coverage and Treatment	63	(4)
Intrinsic audience interest	64	(1)
Societal significance	64	(1)
Combining the perspectives	65	(2)
Extending the Theory	67	(2)
Newsworthiness	67	(1)
The audience	68	(1)
The cost of coverage	69	(1)
The Nature of the News Media	69	(4)
The news media as a business	69	(1)
The profession	70	(1)
Does the media treat issues selectively?	70	(1)
Bias and accuracy	71	(2)
Business Interactions with the News Media	73	(3)
The need for information	73	(1)
Media strategies	74	(1)
Coverage and responses	74	(1)
Developing relationships with the media	75	(1)
Media interviews	75	(1)
Strategies for Addressing Media Issues	76	(1)
Anticipatable issues	76	(1)
Unanticipated events	77	(1)
Recourse in Disputes with the Media	77	(6)
Private recourse	77	(1)
Example: The Body Shop	78	(1)
Recourse to the law: defamation and libel	79	(1)
Example: Proctor & Gamble and Neighbor to Neighbor	80	(2)
Other laws	82	(1)
Summary	83	(2)
Cases	85	(5)
The Alar Episode (A)	85	(1)
Veggie Libel Wars	86	(2)
Illinois Power Company (A)	88	(2)
Private Nonmarket Action	90	(29)
Introduction	90	(3)
Boycotts	91	(2)
Activist Strategies	93	(5)
Example: Pizza Hut and Helath Insurance Reform	94	(4)
Activist Organizations	98	(2)
Activist organizations and networks	98	(1)
Greenpeace	99	(1)
Interacting with Interest Groups and Activists	100	(4)
Strategy and negotiations	100	(1)
Example: Mitsubishi and the Logging of Tropical Rain Forests	101	(2)
Example: Negotiating with Activists: OnBank	103	(1)
Example: Mitsubishi and RAN	104	(1)
Summary	104	(2)
Cases	106	(13)
Shell, Greenpeace, and Brent Spar	106	(4)
Nike in Southeast Asia	110	(3)
Monsanto and the Synthetic Milk Hormone	113	(2)
Denny's and Customer Service	115	(4)
Part I Integrative Case: Calgene Inc. and Infrastructure Marketing	119	(8)
PART II: NONMARKET STRATEGIES AND GOVERNMENT INSTITUTIONS	127	(128)
Political Theory and Government Institutions	129	(36)
Introduction	129	(1)
Markets	129	(4)
The role and functioning of markets	129	(1)
Consumer surplus and economic rents	130	(3)
The Connection Between the Market and Nonmarket Environments	133	(2)
The demand for nonmarket action	133	(1)
The costs of nonmarket action	134	(1)
The free-rider problem and collective action	134	(1)
Social and Political Dilemmas	135	(2)
The prisoner's dream	135	(1)
Dilemmas, repeated encounters, and cooperation	136	(1)
Majority Rule-Based Institutions	137	(4)
Properties of majority rule	137	(1)
Arrow's impossibility theorem and political institutions	138	(1)
The median voter theorem	139	(1)
Committees in legislatures	140	(1)
Bargaining versus voting	141	(1)
Vote trading and pivotal voters	141	(1)
Institutions	141	(12)
Congress	142	(1)
The organization of Congress	142	(1)
The legislative process	143	(3)
Committees	146	(2)
Committee and individual power	148	(1)
Bargaining in political institutions	148	(1)
Delegation	148	(1)
Legislatures and their constituencies	148	(2)
Committee and personal staffs	150	(1)
State governments	151	(1)
Parties	151	(1)
The presidency and the executive branch	152	(1)
Courts	153	(1)
Politics and the Public Interest	153	(1)
The Politics of the Extension of Daylight Saving Time	154	(5)
The nature of political explanations	154	(1)
The legislative history of the extension	154	(1)
The Politics of daylight saving time	155	(2)
The role of information	157	(1)
An analytical characterization of the politics of daylight saving time	158	(1)
Summary	159	(2)
Cases	161	(4)
Summertime in the European Union	161	(1)
Repeal of the Luxury Tax	162	(1)
An Electoral Dilemma (A)	163	(1)
An Electoral Dilemma (B)	164	(1)
Political Analysis for Business	165	(27)
Introduction	165	(1)
A Framework for the Analysis of Political and Collective Action	166	(8)
Interests and interest groups	166	(1)
The amount of political action	167	(1)
The demand for political action	167	(2)
The costs of political and collective action	169	(1)
The effectiveness of group action	170	(1)
The distributive politics spreadsheet	170	(2)
The nature of political competition	172	(2)
Institutions and institutional officeholders	174	(1)
Moral Determinants of Collective and Political Action	174	(3)
Example: Boeing in a Pickle	174	(3)
Analysis of the Case Example	177	(8)
The nonmarket issue	177	(1)
Distributive consequences	177	(2)
Boeing's nonmarket agenda and objectives	179	(1)
The nature of the politics	179	(2)
Institutions and institutional officeholders	181	(2)
Nonmarket strategy formulation	183	(1)
The outcome	184	(1)
Summary	185	(1)
Appendix	186	(1)
Cases	187	(5)
Tobacco Politics	187	(2)
Scrubbers and Environmental Politics	189	(1)
Pizza Hut and the Legal Drinking Age	190	(2)
Formulating Political Strategies	192	(31)
Introduction	192	(1)
Responsible Political Action	192	(4)
Criticisms of business political activity	193	(3)
Political Strategy Formulation	196	(5)
Managers and political strategies	196	(1)
An approach to strategy formulation	197	(4)
Political Strategies	201	(11)
A representational strategy: Toshiba and trade sanctions	201	(3)
Majority building strategies	204	(2)
Multiple pivots	206	(1)
The nature of the politics and political strategy	206	(1)
Agenda setting	206	(1)
Informational strategies	207	(2)
Public officeholders as targets of political strategies	209	(1)
Example: China and Most Favored Nation Status	210	(1)
Political strategies in client and interest group politics	211	(1)
Summary	212	(2)
Cases	214	(9)
Federal Express (A)	214	(1)
Echelon and the Home Automation Standard (A)	215	(4)
The Section 936 Tax Credit	219	(4)
Implementing Political Strategies	223	(32)
Introduction	223	(1)
Lobbying	223	(6)
The nature of lobbying	224	(1)
Technical and politically relevant information	224	(2)
Access	226	(1)
Timing	227	(1)
Government allies	228	(1)
Controls on lobbying	228	(1)
Grassroots Strategies and the Constituent Connection	229	(2)
Mobilization	229	(1)
Business grassroots campaigns	230	(1)
The effectiveness of grassroots programs	231	(1)
Coalition Building	231	(5)
Example: Pacificare's Political Portfolio	232	(1)
Peak associations	233	(1)
Trade associations	233	(1)
Example: Calgene and Canola	234	(1)
Ad hoc coalitions	234	(1)
Example: Silicon Valley goes to Washington	235	(1)
Coalitions and consensus	236	(1)
Testimony	236	(2)
Example: Pharmaceutical Politics	237	(1)
Electoral Strategies	238	(3)
Election financing laws	238	(2)
The pattern of campaign contributions	240	(1)
Purposes of campaign contributions	240	(1)
Communication and Public Advocacy	241	(1)
Judicial strategies	242	(1)
Advisory panels and committees	243	(1)
Organizing for political effectiveness	244	(1)
Summary	244	(1)
Cases	245	(9)
Drexel Burnham Lambert and Junk Bond Politics	246	(1)
Envirotest Systems Corporation (B)	247	(2)
CAFE Standards	249	(5)
Appendix A: CAFE Formula	254	(1)
Appendix B: CAFE Standards under S. 1224	254	(1)
Part II Integrative Case: Proposition 211: Securities Litigation Referendum (A)	255	(10)
PART III: GOVERNMENT AND MARKETS	265	(142)
Antitrust: Economics, Law, and Politics	265	(42)
Introduction	265	(1)
Antitrust Law and Enforcement	266	(9)
The antitrust statutes	266	(2)
Example: Microsoft and monopoly	268	(2)
Exemptions	270	(1)
Government enforcement of the antitrust laws	270	(3)
Private antitrust actions	273	(1)
Per se violations and the rule of reason	274	(1)
Schools of Antitrust Thought	275	(7)
The structural approach	275	(3)
The Chicago school	278	(2)
The New 10 approach	280	(2)
Examples of the Differences in Antitrust Thought	282	(4)
Vertical arrangements	282	(2)
Predatory pricing and entry deterrence	284	(2)
Collusion and price fixing	286	(1)
Mergers and Merger Guidelines	286	(2)
State Antitrust Enforcement	288	(1)
Compliance	289	(1)
The Politics of Antitrust	289	(2)
Summary	291	(1)
Cases	292	(15)
Apple Computer and Mail-Order Sales	292	(1)
The Staples-Office Depot Merger?	293	(5)
The Microsoft Antitrust Case	298	(9)
Regulation: Law, Economics, and Politics	307	(29)
Introduction	307	(1)
Periods of Regulatory Change	308	(1)
The Constitutional Basis for Regulation	309	(1)
Regulatory Commissions and Agencies	310	(1)
The Nonmarket Environment of Regulatory Agencies	310	(3)
Delegation, Rule Making, Due Process, and Discretion	313	(2)
Example: The FCC and TV, Cable, and VCR Compatibility	315	(1)
Explanations for Regulation	315	(1)
Market Imperfections	316	(6)
Natural monopoly	316	(2)
Externalities	318	(1)
Public goods	318	(1)
Asymetric information	319	(1)
Moral hazard	320	(1)
Transactions costs	321	(1)
Government imperfections	322	(1)
The Political Economy of Regulation	322	(4)
Redistribution and cross-subsidization	324	(1)
Cost-of-service regulation	325	(1)
Deregulation	326	(3)
Telecommunications	326	(2)
Electric power	328	(1)
Auctions	329	(1)
Summary	329	(2)
Cases	331	(5)
Whirlpool and Energy Efficiency Standards (B): Rule Making	331	(2)
Sears and the Local Regulation of Advertising	333	(1)
The FCC and International Telephone Rates	334	(2)
Product Safety: Liability and Regulation	336	(36)
Introduction	336	(1)
The Product Safety Problem and Social Efficiency	337	(2)
Entitlements, Liability, and Social Efficiency	339	(4)
The Coase theorem	339	(1)
Entitlements and their protection	340	(1)
Transactions costs and the limits of the Coase theorem	341	(1)
The assignment of costs and the choice between liability and regulation	342	(1)
Products Liability Law	343	(12)
Products liability cases	343	(2)
The development of products liability law	345	(3)
Allowable defenses under strict liability	348	(1)
Damages	349	(1)
Imperfections in the liability system	350	(2)
Absolute liability	352	(1)
Example: Silicon breast implants	353	(1)
The politics of products liability	354	(1)
Product Safety Regulation	355	(4)
The Consumer Products Safety Commission	355	(3)
The nonmarket environment of the CPSC	358	(1)
Chain Saw Safety	359	(4)
The safety issue	359	(1)
Market imperfections	360	(2)
Channels of distribution and information provision	362	(1)
The Consumer Product Safety Commission's standard-setting efforts	362	(1)
Summary	363	(2)
Cases	365	(7)
Domino's Delivers (A)	365	(1)
California Space Heaters, Inc. (A)	366	(3)
Bic Disposable Butane Lighters	369	(3)
Environmental Protection: Economics, Politics, and Management	372	(35)
Introduction	372	(1)
Socially Efficient Regulation of Pollution Externalities	372	(7)
Tradable permits system	373	(3)
Global warming and emissions trading systems	376	(2)
Uncompensated damages	378	(1)
Implementing socially efficient regulation	378	(1)
The Environmental Protection Agency	379	(4)
Enforcement	381	(1)
Standard setting and engineering controls	381	(1)
Incentive approaches	382	(1)
Superfund	382	(1)
The Politics of Environmental Protection	383	(2)
NIMBY	385	(1)
EPA Strategy and Activism	386	(6)
The 1990 amendments to the Clean Air Act	388	(1)
Acid rain and tradable permits	388	(2)
Environmental politics: Scrubbers and the Clean Air Act Amendments	390	(2)
Management of Environmental Protection Issues	392	(5)
Internal management issues	393	(1)
McDonald's and waste reduction	394	(1)
Kodak and the recycling of single-use cameras	395	(1)
3M and pollution prevention pays	396	(1)
Summary	397	(2)
Cases	399	(8)
Philips and the Low-Mercury Fluorescent Lamp	399	(2)
Procter & Gamble and Disposable Diapers	401	(3)
Westlands Water District	404	(3)
Part III Integrative Case: Whirlpool and Energy Efficiency Standards (A): Regulation and Politics	407	(6)
PART IV: GLOBAL BUSINESS AND THE NONMARKET ENVIRONMENT	413	(143)
The Political Economy of Japan	415	(32)
Introduction	415	(1)
Issues	416	(1)
Interests	417	(1)
Institutions	418	(7)
The Diet (parliament)	418	(1)
Political parties and the electoral system	419	(4)
The bureaucracy	423	(2)
The Judicial System and the Antimonopoly Law	425	(1)
Cultural Foundations	426	(2)
Tying the Components Together: A Framework for Political Exchange	428	(2)
Political exchange	428	(2)
Characteristics of Business	430	(3)
The organization of business	430	(3)
Business-Government Interactions	433	(4)
The organization of business for political action	433	(1)
Political strategies	434	(1)
Relationships with the bureaucracy	435	(1)
Lobbying and points of access	435	(2)
Information	437	(1)
Relationships with Bureaucrats and Politicians	437	(2)
Coalition building	438	(1)
An incident	438	(1)
Corporate Political Styles	439	(1)
Summary	440	(2)
Cases	442	(5)
The Breakup of Nippon Telephone and Telegraph	442	(3)
Toys Us in Japan (A)	445	(2)
The Political Economy of the European Union	447	(38)
Introduction	447	(1)
The Union	447	(2)
The Single European Act	448	(1)
The Maastricht Treaty	449	(1)
Nonmarket Issues	449	(2)
Example: Data privacy	450	(1)
The Institutions of the European Union	451	(13)
The European Commission	451	(2)
The Council of Ministers	453	(1)
The European Parliament	454	(1)
The European Court of Justice	454	(1)
The Economic and Social Committee	455	(1)
The EU legislative process	455	(2)
Economic and monetary union	457	(1)
Competition policy	458	(2)
Privatization and market opening	460	(1)
State aids	461	(1)
The social charter and labor markets	461	(1)
Social democracy and labor	462	(1)
Competition among the states	462	(1)
Fortress Europe?	463	(1)
Interests and Their Organization	464	(1)
Nonmarket Strategies in the European Union	465	(4)
Example: Pronuptia and franchising	469	(1)
Germany	469	(5)
Institutions: The structure of government	470	(1)
The political economy of Germany	471	(2)
Interests and their organizations	473	(1)
Summary	474	(2)
Cases	476	(9)
The European Union Carbon Tax	476	(4)
Benetton, Advertising Protests, and Franchising	480	(1)
Toys Us in Germany	481	(1)
Toys Us in Sweden	482	(3)
China: History, Culture, and Political Economy	485	(28)
Introduction	485	(1)
Historical Background	485	(6)
Pre-republican	485	(2)
The Republican era	487	(1)
The Communist era	488	(3)
Confucianism and Social Explanations	491	(5)
Applications in Society, Politics, and Business	493	(3)
The Nonmarket Environment and the Four I's	496	(4)
State institutions	498	(2)
Provincial and local governments	500	(1)
Business: State-Owned Enterprises, International Trade, and Investment	500	(3)
State-owned enterprises	500	(1)
International trade	501	(1)
Foreign direct investment	502	(1)
Continuing Issues	503	(3)
Human rights and political reform	503	(3)
Summary	506	(1)
Cases	507	(6)
Wugang and the Reform of State-Owned Enterprises	507	(3)
Direct Marketing in China	510	(1)
Fresenius Medical Care in China	511	(2)
The Political Economy of International Trade Policy	513	(43)
Introduction	513	(2)
The Economics of Interntional Trade	515	(3)
Competitive theory	515	(2)
Strategic trade theory	517	(1)
The Political Economy of International Trade Policy	518	(3)
The dual nature of the politics of international trade	518	(1)
Asymmetrics in the politics	519	(2)
International Trade Agreements	521	(6)
The General Agreement on Tariffs and Trade and the World Trade Organization	521	(1)
General Agreement of Trade in Services (GATS)	522	(1)
Trade-Related Aspects of Intellectual Property Rights (TRIPS)	523	(1)
Agriculture	523	(1)
Government procurement	524	(1)
Antidumping	524	(1)
Dispute settlement	524	(2)
The next round?	526	(1)
Other trade agreements	526	(1)
U.S. Trade Policy	527	(1)
The structure of U.S. trade policy	527	(1)
U.S. trade law and its administration	527	(1)
The Political Economy of Protectionism	528	(4)
Formal policies	528	(2)
Channels of protection	530	(1)
Example: Steel imports and the nonmarket campaign	530	(2)
The Political Economy of Market Opening	532	(2)
The North American Free Trade Agreement	532	(1)
Marketing opening and client politics	533	(1)
Market opening under the threat of retaliation	534	(1)
Summary	534	(2)
Appendix: U.S. Trade Law	536	(2)
Cases	538	(18)
The WTO and the Environment	538	(2)
Cemex and Antidumping	540	(6)
The Kodak-Fujifilm Trade Dispute	546	(10)
Part IV Integrative Case Toys Us and Globalization	556	(3)
PART V: ETHICS AND RESPONSIBILITY	559	(185)
Corporate Social Responsibility	561	(30)
Introduction	561	(2)
Example: Tuna and dolphins	562	(1)
The Role of Business in Society	563	(3)
The efficiency perspective	563	(1)
Concerns about the efficiency perspective	564	(1)
Market capitalism and managerial capitalism	565	(1)
The social responsibility perspective	565	(1)
Conceptions of the Social Responsibility of Business	566	(6)
The law	566	(1)
Corporate social responsibility as profit maximization	566	(3)
The Business Roundtable statement on social responsibility	569	(1)
An example of the difference between Friedman and the Business Roundtable	570	(1)
The stakeholder concept	571	(1)
Strategic Uses of Corporate Social Responsibility	572	(1)
Examples of Corporate Social Responsibility	573	(3)
Unocal Corporation and the dirty car bounty	573	(1)
ARCO and gasoline price restraints	574	(1)
Malden Mills Industries	574	(1)
Aetna and housing rehabilitation	575	(1)
South Shore Bank and community development	576	(1)
Social Responsibility: Motives and Causality	576	(3)
Corporate Governance	579	(4)
Constituent representation?	579	(1)
Social accountability	580	(1)
The duties of boards of directors	580	(2)
The market for control	582	(1)
Summary	583	(2)
Cases	585	(6)
Advanced Technology Laboratories, Inc.	585	(2)
Headquarters Relocation: Kimberly-Clark and the State of Wisconsin	587	(3)
Western National Bank	590	(1)
Ethical Systems: Utilitarianism and Management	591	(31)
Introduction	591	(1)
What Ethics Is and Is Not	592	(1)
Business Ethics	593	(1)
Ethics and Private Interests	594	(1)
Issue: integrity tests	594	(1)
Ethics, Politics, and Change	595	(1)
Casuistry	596	(1)
Example: Saving the Division	596	(1)
The Methodology of Ethical Analysis	597	(2)
The Relationship among Moral Philosophy, Ethics, and Political Philosophy	599	(1)
Utilitarianism: A Consequentalist System	600	(2)
Utilitarianism and self-interest	601	(1)
Utilitarianism, distribution, and altruism	601	(1)
Summary	602	(1)
Applied Utilitarianism---Cost-Benefit Analysis	602	(1)
Utilitarian duty and the calabresi and melamed principles	603	(1)
Act and Rule Utilitarianism	603	(3)
Simultaneous choice by several individuals	605	(1)
Utilitarianism and Rights	606	(1)
Criticisms of Utilitarianism	606	(2)
Utilitarianism in Application	608	(1)
Categories of situations	609	(1)
Methodology	609	(1)
Difficulties in the Implementation of Utilitarian Analysis	609	(5)
Identifying social costs and benefits	609	(1)
The measurement problem	610	(1)
The information problem	610	(1)
Example: Corporate social responsibility	611	(1)
Example: Integrity tests	612	(1)
Example: Insurance screening for pre-existing conditions	612	(1)
Example: Redlining	613	(1)
Summary	614	(1)
Cases	615	(7)
Living Benefits	615	(1)
Sex Differentiated Retirement Benefits	616	(2)
Pricing the Norplant® System	618	(4)
Ethical Systems: Rights and Justice	622	(35)
Introduction	622	(1)
Classification of Ethical Systems	622	(1)
Classes of Rights	623	(1)
Kantian Maxims or Moral Rules	624	(6)
The relationship between maxims and rights	626	(1)
Intrinsic and instrumental rights	627	(2)
Criticisms of Kantian rights	629	(1)
Applied Rights Analysis	630	(2)
Claimed and granted rights	630	(1)
A method for rights analysis	631	(1)
Conflict among Rights	632	(3)
Rights and interests	632	(1)
Prioritization	632	(1)
Example: Integrity tests	633	(2)
Neoclassical Liberalism	635	(1)
Categories of Justice Theories	636	(2)
Distributive justive	636	(1)
Compensatory justice	637	(1)
Injustice	638	(1)
Rawls's Theory of Justice	638	(8)
The framework for justice as fairness	638	(2)
The principles of justice	640	(1)
The role of incentives	641	(2)
Duty in Rawls's theory	643	(1)
Criticisms of Rawls's theory	643	(1)
The application of the principles of justice	644	(2)
Higher Order Standards for Evaluating Ethical Systems	646	(1)
Summary	647	(2)
Cases	649	(8)
Delta Instruments, Inc.	649	(1)
Genetic Testing in the Workplace	650	(2)
Governmental Justice and Pollution Credits Trading Systems	652	(5)
Implementing Ethics Systems	657	(29)
Introduction	657	(2)
Example: Levi Strauss & Co. and global sourcing	657	(2)
Moral Determinants of Nonmarket Action	659	(2)
Example: Buffalo Savings Bank (A) revisited	660	(1)
Tensions in the Implementation of Ethical Principles	661	(4)
Individual actions and responsibility for their consequences	661	(1)
Paternalism	662	(1)
Political action and restraint	663	(2)
Corporate Social Responsibility Revisited	665	(1)
Corporate Social Responsibility and Ethics in Practice	666	(12)
British Petroleum and global warming	666	(1)
Statements of commitment and expectations	667	(1)
Example: Johnson and Johnson's Our Credo	668	(1)
Core principles and their evolution	668	(1)
Levi Strauss & Co. business partner terms of engagement	669	(2)
Process	671	(1)
Maintaining a culture	671	(1)
The Body Shop and the social audit	672	(1)
Codes of conduct	673	(1)
Competitive and proprietary information	673	(1)
Principles and reasoning	674	(1)
Ethics programs	675	(1)
Compliance	676	(1)
Examples of implemented policies	677	(1)
Sources of Unethical Behavior	678	(2)
Summary	680	(1)
Cases	681	(5)
Circle K Corporation and Employee Health Care Costs (A)	681	(1)
Honda and Excess Demand	682	(2)
Levi Strauss & Co. Terms of Engagement Audits	684	(2)
Ethical Issues in the Employment Relationship	686	(30)
Introduction	686	(1)
Employment Rights	686	(3)
The evolution of employment rights	686	(1)
Employee rights in continuing jobs	687	(1)
Employee rights when jobs are being eliminated	688	(1)
Equal Employment Opportunity	689	(3)
The burden of proof	691	(1)
Affirmative Action	692	(3)
Preference and reverse discrimination	693	(2)
Americans with Disabilities Act	695	(1)
Sexual Harassment	696	(1)
Diversity	697	(1)
Women in Management	698	(1)
Company Programs	699	(1)
Organized Labor	700	(2)
Privacy and Drug Testing	702	(2)
Whistle-Blowing	704	(2)
Summary	706	(2)
Appendix: The Principal Equal Opportunity Laws	708	(2)
Cases	710	(6)
American Airlines and Weight Standards	710	(1)
Beards	711	(1)
Advanced Technology, Inc (ATI)	712	(4)
Ethical Issues in International Business	716	(28)
Introduction	716	(1)
International Law and Institutions	717	(1)
Cultural Relativism	718	(3)
Human Rights and Justice	721	(2)
Slave labor in Saipan?	722	(1)
Operating in Developing Countries	723	(3)
Sweatshops	724	(1)
International codes	725	(1)
Questionable Foreign Payments	726	(9)
Questionable payments and ethical principles	727	(1)
The Lockheed case	728	(1)
A utilitarian analysis of bribery	729	(1)
The Foreign Corrupt Practices Act	730	(1)
Company codes	731	(1)
Cummins practice	732	(2)
The OECD convention on combating bribery	734	(1)
Summary	735	(1)
Cases	736	(8)
Complications in Marnera	736	(2)
Marketing Infant Formula in Developing Countries	738	(1)
Levi Strauss & Co. in China	739	(3)
University Games, Inc.	742	(2)
Part V Integrative Case: Levi Strauss & Co. Global Sourcing Guidelines	744	(7)
References	751	(14)
Index	765