Contemporary Issues in Business Ethics

by DesJardins, Joseph R.; McCall, John J.

• ISBN13: 9780534584641
• ISBN10: 0534584640
• Edition: 5th
• Format: Paperback
• Copyright: 2004-07-16
• Publisher: Wadsworth Publishing

Summary

Prepare for your career with CONTEMPORARY ISSUES IN BUSINESS ETHICS! With coverage of business ethics from a social and political perspective, this business text focuses on areas of business ethics that are relevant to today?s student. Boxes in the text highlight important topics in ethics, including ethical relativism, psychological egoism, ethics and the law, virtue ethics, and ethical decision-making. Case studies, chapter introductions, and decision scenarios are just a few of the tools found throughout that help you master difficult concepts.

Table of Contents

Preface	xiii
I BUSINESS AND ETHICS
Business, Ethics, and the Free Market	1	(22)
Introduction	1	(2)
What is Ethics?	3	(1)
Ethical Relativism	4	(2)
Business Ethics: The ``Free Market'' Theory	6	(1)
Reading 1.1 The Social Responsibility of Business Is to Increase Its Profits	7	(4)
Milton Friedman
Doing Business Ethics: An Analysis of Freidman	11	(11)
Friedman's Radical Position	13	(1)
Free Society	14	(2)
The ``Tax Argument''	16	(4)
Is Obedience to the Law Enough?	20	(2)
In Summary	22	(1)
Philosophical Ethics: Utilitarianism and the Free Market	23	(21)
Introduction	23	(1)
Ethical Theories	24	(8)
Virtue Ethics: What Type of Person Should I Be?	24	(3)
Utilitarianism: Maximize the Overall Good	27	(4)
Deontology: An Ethics of Rights and Duties	31	(1)
Utilitarian Defense of the Free Market	32	(2)
An Analysis of the Utilitarian Defense	34	(8)
Is the Free Market the Best Means?	34	(4)
The ``Good'' of Free Market Utilitarianism	38	(2)
Means and Ends Challenges	40	(2)
In Summary	42	(2)
Philosophical Ethics: Rights and the Market	44	(20)
Introduction	44	(2)
Rights Theory	46	(9)
Rights and Respect	46	(1)
Dignity and Autonomy	47	(1)
What Rights?	48	(1)
The Scope of Rights	49	(3)
Basic and Derivative Rights: Resolving Conflicts	52	(3)
Two Rights Arguments for the Free Market	55	(9)
The Right to Liberty and the Market	56	(3)
Private Property Rights and the Market	59	(5)
The Corporation as a Social Institution	64	(49)
Introduction	64	(1)
The Nature of the Corporation	65	(1)
The Role of the Corporation	65	(1)
The Structure of the Corporation	65	(1)
The Legal Status of the Corporation	66	(1)
Corporate Responsibility	66	(7)
Stakeholder Theory	66	(3)
Social Contract Theory	69	(2)
The Corporation as a Morally Responsible Agent	71	(2)
Corporate Governance and Control	73	(2)
In Summary	75	(1)
Reading 4.1 A Stakeholder Theory of the Modern Corporation: Kantian Capitalism	76	(8)
William M. Evan
R. Edward Freeman
Reading 4.2 Bad and Not-So-Bad Arguments for Shareholder Primacy	84	(12)
Lynn A. Stout
Reading 4.3 Just Say No to Wall Street: Putting a Stop to the Earnings Game	96	(6)
Joseph Fuller
Michael C. Jensen
Reading 4.4 Assessing Executive Compensation	102	(11)
John J. McCall
II BUSINESS AND EMPLOYEES
Employee Rights: Job Security and Participation	113	(72)
Introduction	113	(1)
Job Security: Dismissals and Layoffs	114	(10)
Individual Dismissals	114	(5)
Layoffs	119	(5)
Employee Participation	124	(6)
Varieties of Participation	124	(1)
Participation and Rights	124	(1)
Participation and Firm Performance	125	(2)
Participation and Organized Labor	127	(1)
Case Study: Employee Relations at EDS	128	(2)
Reading 5.1 Meaningful Work: A Kantian Approach	130	(6)
Norman Bowie
Reading 5.2 The Right to Due Process	136	(5)
Patricia H. Werhane
Reading 5.3 Rights in the Workplace: A Nozickian Argument	141	(4)
Ian Maitland
Reading 5.4 Practices of Successful Organizations: Employment Security	145	(11)
Jeffrey Pfeffer
Reading 5.5 An Ethical Basis for Employee Participation	156	(7)
John J. McCall
Reading 5.6 Workplace Representation Overseas: The Works Councils Story	163	(22)
Joel Rogers
Wolfgang Streeck
Decision Scenario A: Levi's Shrinks	176	(1)
Decision Scenario B: Unwritten Employment Contracts	177	(1)
Decision Scenario C: Montana's Just Cause Legislation	178	(1)
Decision Scenario D: Saturn Motors: Shifting into Reverse?	179	(2)
Decision Scenario E: The German Model of Employee Participation	181	(1)
Decision Scenario F: Electromation: Illegal Employee Participation	182	(1)
Decision Scenario G: Donnelly Mirrors: Fifty Years of Participation	183	(2)
Employee Rights: Health, Equality, Privacy	185	(50)
Introduction	185	(1)
Health and Safety	186	(4)
Government Regulations to Protect Health and Safety	187	(1)
Cost-Benefit Analysis	188	(1)
Health Insurance and Work	189	(1)
Equal Treatment in the Workplace	190	(3)
Sexual Harassment	190	(2)
Disabled Workers	192	(1)
Privacy in the Workplace	193	(4)
Nature and Value of Privacy	193	(3)
Case Study: Health Insurance and Discrimination against the Sick	196	(1)
Readings 6.1 The Occupational Safety and Health Problem	197	(6)
James Chelius
Readings 6.2 Sex is the Least of It: Let's Focus Harassment Law on Work, Not Sex	203	(4)
Vicki Schultz
Readings 6.3 Disability and the Right to Work	207	(6)
Gregory S. Kavka
Readings 6.4 The Problem with ``Dead Peasants'' Insurance	213	(9)
Earl W. Spurgin
Readings 6.5 Drug Testing in Employment	222	(13)
Joseph DesJardins
Ronald Duska
Decision Scenario A: American Cyanamid and Johnson Controls	227	(1)
Decision Scenario B: Genetic Screening in the Workplace	228	(2)
Decision Scenario C: When Gender Harassment is Not Sexual	230	(1)
Decision Scenario D: Dismissal for an Abortion?	231	(1)
Decision Scenario E: If You Work Here, Don't Smoke	232	(1)
Decision Scenario F: Preemployment Psychological Testing	232	(1)
Decision Scenario G: E-mail Privacy	233	(2)
Ethical Responsibilities in Business: Employees, Managers, Professionals	235	(49)
Introduction	235	(1)
Honesty, Loyalty, and Trust	236	(3)
Honesty	236	(1)
Loyalty	237	(1)
Trust	238	(1)
Professional Responsibilities and the Gatekeeper Function	239	(4)
Case Study: Accounting for Enron	240	(3)
Reading 7.1 Is Business Bluffing Ethical?	243	(8)
Albert Carr
Reading 7.2 Whistleblowing and Employee Loyalty	251	(5)
Ronald Duska
Reading 7.3 Understanding Enron: ``It's About the Gatekeepers, Stupid''	256	(8)
John C. Coffee, Jr.
Reading 7.4 Public Accounting: Profession or Business?	264	(5)
John C. Bogle
Reading 7.5 Auditing Ethics	269	(15)
Ronald Duska
Brenda Shay Duska
Decision Scenario A: Martha Stewart, ImClone, and InsiderTrading	278	(2)
Decision Scenario B: Timing Mutual Funds	280	(1)
Decision Scenario C: ``Soft Money'' in the Securities Industry	281	(1)
Decision Scenario D: Buy American, or Else!	282	(2)
III BUSINESS AND CONSUMERS
Product Liability and Safety	284	(39)
The History of Product Liability	284	(3)
Assessing Product Liability Alternatives	287	(2)
Reforming Product Liability Law	289	(1)
Product Safety Regulation	290	(2)
Ethics and the Marketing of Dangerous Products	292	(4)
Case Study: Caution: McDonald's Coffee is HOT---And Its Food Will Make You FAT!	294	(2)
Reading 8.1 Who Pays for Tort Liability Claims? An Economic Analysis of the U.S. Tort Liability System	296	(9)
George W. Bush
Reading 8.2 Fairness, Strict Liability and Public Policy	305	(2)
John J. McCall
Reading 8.3 Social Products Liability: The Case of the Firearms Manufacturers	307	(16)
George G. Brenkert
Decision Scenario A: Tobacco Companies under Fire	314	(2)
Decision Scenario B: Selling Guns: Negligent Marketing?	316	(2)
Decision Scenario C: The Michigan Toy Box Company	318	(1)
Decision Scenario D: A.H. Robins and the Dalkon Shield	319	(1)
Decision Scenario E: Diethylstilbestrol (DES)	320	(3)
Marketing Ethics: Advertising, Sales, and Consumerism	323	(63)
Introduction	323	(1)
Deceptive Advertising and Sales	324	(1)
Nondeceptive Marketing, Autonomy, and Consumer Vulnerability	325	(3)
Marketing and Consumerism	328	(4)
Case Study: Nike: Advertising, Marketing, and Free Speech	329	(3)
Reading 9.1 Deceptive Advertising	332	(5)
John J. McCall
Reading 9.2 Deception and Withholding Information in Sales	337	(11)
Thomas Carson
Reading 9.3 Advertising and Behavior Control	348	(8)
Robert L. Arrington
Reading 9.4 Marketing to Inner-City Blacks: Powermaster and Moral Responsibility	356	(10)
George G. Brenkert
Reading 9.5 Children as Consumers: An Ethical Evaluation of Children's Television Advertising	366	(7)
Lynn Sharp Paine
Reading 9.6 Why Do We Consume So Much?	373	(13)
Juliet B. Shor
Decision Scenario A: Marketing in School	379	(2)
Decision Scenario B: Advertising's Images of Women	381	(1)
Decision Scenario C: Advertising Headaches	382	(1)
Decision Scenario D: New, Improved, . . . and Smaller	383	(1)
Decision Scenario E: Political Advocacy Meets High-Tech Ad Agencies	384	(2)
IV BUSINESS AND OTHER CONSTITUENCIES
Business and The Natural Environment	386	(54)
Introduction	386	(1)
Business, the Environment, and Economics	387	(2)
Sustainable Development and Business	389	(5)
Case Study: Interface Corporation: Sustainable Business	390	(4)
Reading 10.1 People or Penguins: The Case for Optimal Pollution	394	(4)
William F. Baxter
Reading 10.2 Why Political Questions Are Not All Economic	398	(6)
Mark Sagoff
Reading 10.3 Morality, Money, and Motor Cars	404	(5)
Norman Bowie
Reading 10.4 Sustainable Business: Environmental Responsibilities and Business Opportunities	409	(7)
Joseph R. DesJardins
Reading 10.5 A Road Map for Natural Capitalism	416	(11)
Amory B. Lovins
L. Hunter Lovins
Paul Hawken
Reading 10.6 The Next Industrial Revolution	427	(13)
William McDonough
Michael Braugart
Decision Scenario A: Global Warming	434	(1)
Decision Scenario B: Boomer v. Atlantic Cement Co.	435	(1)
Decision Scenario C: The Detroit Project	436	(1)
Decision Scenario D: Pacific Lumber	437	(1)
Decision Scenario E: Walt Disney v. the Sierra Club	438	(2)
Affirmative Action and Diversity	440	(31)
Introduction	440	(1)
Public Policy to Counter Discrimination	441	(3)
Arguments For and Against	443	(1)
Hiring for Diversity	444	(3)
Case Study: The University of Michigan Cases	445	(2)
Reading 11.1 Preferential Hiring and Compensation	447	(7)
Robert K. Fullinwider
Reading 11.2 A Defense of Programs of Preferential Treatment	454	(4)
Richard Wasserstrom
Reading 11.3 Brief in Support of the University of Michigan	458	(13)
Amicus Curiae
Decision Scenario A: United Steelworkers of America v. Weber	465	(1)
Decision Scenario B: Preferential Treatment for Men?	466	(1)
Decision Scenario C: Women Wage Earners: Less Is Best?	467	(1)
Decision Scenario D: Federal Set-Asides: From Fullilove to Adarand	468	(2)
Decision Scenario E: Hide the Wedding Ring	470	(1)
Ethics and Multinational Corporations	471	(66)
The Power of Multinationals	471	(1)
The Ethical Relativist Approach	472	(2)
The Nonrelativist Approach	474	(4)
Case Study: Africa, AIDS and Drug Patents	476	(2)
Reading 12.1 Rights and the Global Market	478	(14)
Thomas J. Donaldson
Reading 12.2 The Great Non-Debate over International Sweatshops	492	(9)
Ian Maitland
Reading 12.3 Sweatshops and Respect for Persons	501	(15)
Denis G. Arnold
Norm E. Bowie
Reading 12.4 Marketing, the Ethics of Consumption, and Less-Developed Countries	516	(21)
George G. Brenkert
Decision Scenario A: Indonesian Corruption and Multinationals	529	(2)
Decision Scenario B: Brazil: Economic Development versus Environmental Protection	531	(1)
Decision Scenario C: ``When in Rome'': International Affirmative Action	532	(1)
Decision Scenario D: Child and Bonded Labor: Business Responsibility for Supplier Practices	533	(2)
Decision Scenario E: Drug Safety and the Third World	535	(2)
Index	537