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Managing Business Ethics: Straight Talk About How To Do It Right, 4th Edition,9780471755258
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Managing Business Ethics: Straight Talk About How To Do It Right, 4th Edition

by ;
Edition:
4th
ISBN13:

9780471755258

ISBN10:
0471755257
Format:
Paperback
Pub. Date:
8/1/2006
Publisher(s):
WILEY JOHN & SONS LTD

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Summary

Practical strategies for promoting ethical behavior Offering a highly realistic, down-to-earth look at ethics in the workplace, Linda Treviņo and Kate Nelson's Managing Business Ethics will help you identify and solve ethical dilemmas, understand why people behave the way they do, and help you design a culture that will promote ethical behavior in your organization. Throughout, the emphasis is on common, real-life work situations, including hiring, managing, assessing performance, disciplining, firing, and providing incentives for staff, as well as producing quality products and services, and dealing effectively and fairly with customers, vendors, and other stakeholders. Highlights of the Fourth Edition * Updated information relates content to current events such as the U.S. Sentencing Guidelines for Corporations. * Describes the link between ethical culture and employee engagement. * Covers new research, including the role of emotions in ethical decision making. * Presents new profiles of organizations such as McWane, Enron, Citigroup, and Marsh & McLennan. * International references reflect the realities of the increasingly global business environment.

Author Biography

Linda K. Treviño is Professor of Organizational Behavior, Cook Fellow in Busness Ethics, and Director of the Shoemaker Program in Business Ethics in the Smeal College of Business Administration at The Pennsylvania State University where she has been on faculty since 1987. She served as Chair of the Department of Management and Organization from 1999 - 2003. She holds a Ph.D. in management  from Tesas A&M University. Her research and writing on the management of ethical conduct in organizations is widely published and is internationally known.She has published about fifty journal articles and has co-authored an academic book entitled, Managing Ethics in Business Organizations: Social Scientific Perspectives, with Gary Weaver, in 2003.

Katherine A. Nelson is a founding principal of Talent Strategy Partners in Media, Pennsylvania, and a senior fellow in business ethics at the Wharton School, University of Pennsylvania. Her expertise includes ethics program design and strategic organizational communication. Kate and her partners at Talent Starategy Partners help organizations attain superior business results by focusing on the threee key levers that influence how employees deliver value—effective leadership, employee commitment, and a deliberate culture. By developing creative approaches to build a "value-mentality" among employees, they influence the cultural elements that underpin employee commitment—the engine that drives value delivery. They focus on the entire employee experience—from how well an organization lives its values and develops its leaders to how well it communicates its vision and rewards its people for outstanding performance.

Table of Contents

Preface xv
PART I INTRODUCTION TO BUSINESS ETHICS
Introducing Straight Talk About Managing Business Ethics: Where We're Going and Why
2(21)
Introduction
2(1)
Taking Away the Mystery
3(1)
Moving beyond Cynicism
3(4)
Tools to Manage Unethical Behavior
6(1)
Focus on the Positive, the Ethical, and the Socially Responsible
6(1)
Is Business Ethics Just a Fad?
7(2)
Can Business Ethics Be Taught?
9(6)
Aren't Bad Apples the Cause of Ethical Problems in Organizations?
9(2)
Shouldn't Employees Already Know the Difference between Right and Wrong?
11(1)
Aren't Adults' Ethics Fully Formed and Unchangeable?
12(3)
This Book Is About Managing Ethics
15(2)
Bringing Ethics Down to Size
17(1)
Ethics and the Law
17(1)
How the Book Is Structured
18(1)
Conclusion
19(1)
Discussion Questions
19(1)
Exercise: Your Cynicism Quotient
20(1)
Notes
21(2)
Why Be Ethical? (Why Bother? Who Cares?)
23(43)
Introduction
23(1)
Why Be Ethical? Why Bother? Who Cares?
23(1)
The Motivation to Be Ethical
24(1)
The Media Focus on Ethics and Corporate Reputation
25(2)
Industries Care About Ethics
27(1)
Executive Leaders Care About Ethics
28(1)
Managers Care About Ethics
29(2)
Employees Care About Ethics: Employee Attraction and Commitment
31(1)
Individuals Care About Ethics: Reputation Counts
32(1)
Does Society Care? Business and Social Responsibility
32(6)
Economic Responsibilities
33(1)
Legal Responsibilities
34(1)
Ethical Responsibilities
34(2)
Philanthropic Responsibilities
36(2)
Government Regulation of Business
38(2)
Is Socially Responsible Business Good Business?
40(11)
Socially Responsible Investors
45(1)
Avoiding the Costs of Criminal Liability
45(4)
The Importance of Trust
49(2)
The Best and the Worst In Us
51(5)
Conclusion
56(1)
Discussion Questions
56(1)
Case: Merck and River Blindness
57(2)
Appendix: How Fines Are Determined under the U.S. Sentencing Guidelines
59(2)
Notes
61(5)
PART II ETHICS AND THE INDIVIDUAL
Common Ethical Problems
66(29)
Introduction
66(1)
Human Resources Issues
67(6)
Discrimination
68(3)
Harassment, Sexual and Otherwise
71(2)
Conflicts of Interest
73(4)
What Is It?
74(2)
Why Is It an Ethical Problem?
76(1)
Costs
76(1)
Customer Confidence Issues
77(4)
What Is It?
77(4)
Why Is It an Ethical Problem?
81(1)
Costs
81(1)
Use of Corporate Resources
81(4)
What Is It?
82(3)
Why Is It an Ethical Problem?
85(1)
Costs
85(1)
When All Else Fails: Blowing the Whistle
85(6)
When Do You Blow the Whistle?
86(1)
How to Blow the Whistle
87(4)
Conclusion
91(1)
Discussion Questions
91(2)
Notes
93(2)
Deciding What's Right: A Prescriptive Approach
95(26)
Introduction
95(1)
The Layoff
95(1)
Prescriptive Approaches to Ethical Decision Making in Business
96(7)
Focus on Consequences (Consequentialist Theories)
96(2)
Focus on Duties, Obligations, and Principles (Deontological Theories)
98(3)
Focus on Integrity (Virtue Ethics)
101(2)
Eight Steps to Sound Ethical Decision Making in Business
103(6)
Step One: Gather the Facts
103(1)
Step Two: Define the Ethical Issues
104(1)
Step Three: Identify the Affected Parties (the Stakeholders)
105(1)
Step Four: Identify the Consequences
106(1)
Step Five: Identify the Obligations
107(1)
Step Six: Consider Your Character and Integrity
108(1)
Step Seven: Think Creatively about Potential Actions
108(1)
Step Eight: Check Your Gut
109(1)
Practical Preventive Medicine
109(3)
Doing Your Homework
109(1)
When You're Asked to Make a Snap Decision
110(2)
Conclusion
112(1)
Discussion Questions
112(2)
Exercise: Clarifying Your Values
114(1)
Case: Pinto Fires
115(5)
Notes
120(1)
Deciding What's Right: A Psychological Approach
121(31)
Introduction
121(1)
Moral Awareness and Moral Judgment
121(3)
Individual Differences, Moral Judgment, and Ethical Behavior
124(8)
Cognitive Moral Development
125(6)
Locus of Control
131(1)
Cognitive Barriers to Good Ethical Judgment
132(5)
Thinking About Fact Gathering
132(1)
Thinking About Consequences
133(2)
Thinking About Integrity
135(1)
Thinking About Your Gut
136(1)
Emotions in Ethical Decision Making
137(1)
Reflections on the Pinto Fires Case
138(8)
Revisiting the Pinto Fires Case
142(4)
Conclusion
146(1)
Discussion Questions
146(1)
Notes
147(5)
PART III ETHICS AND THE MANAGER
Ethical Problems of Managers
152(27)
Introduction
152(3)
Managers and Employee Engagement
152(3)
Managing the ``Basics''
155(8)
Hiring and Work Assignments
155(2)
Performance Evaluation
157(2)
Discipline
159(2)
Terminations
161(2)
Managing a Diverse Workforce
163(6)
Diversity
164(1)
Harassment
165(2)
Family and Personal Issues
167(2)
The Manager as a Lens
169(4)
The Buck Stops with Managers
170(2)
Managers Are Role Models
172(1)
Managing Up and Across
173(2)
Honesty Is Rule One
174(1)
Standards Go Both Ways
175(1)
Conclusion
175(1)
Discussion Questions
176(1)
Notes
177(2)
Managing for Ethical Conduct
179(35)
Introduction
179(1)
In Business, Ethics Is About Behavior
179(1)
Practical Advice for Managers about Ethical Behavior
180(1)
Our Multiple Ethical Selves
180(4)
The Kenneth Lay Example
181(2)
The Dennis Levine Example
183(1)
Practical Advice for Managers About Multiple Ethical Selves
183(1)
Reward Systems
184(9)
People Do What's Rewarded and Avoid Doing What's Punished
184(1)
People Will Go the Extra Mile to Achieve Goals Set by Managers
184(1)
How Reward Systems Can Encourage Unethical Behavior
185(1)
Practical Advice for Managers About Reward Systems
186(1)
Recognize the Power of Indirect Rewards and Punishments
187(2)
Can You Really Reward Ethical Behavior?
189(1)
What About Punishment?
190(2)
Practical Advice for Managers About Punishment
192(1)
``Everyone's Doing It''
193(2)
People Follow Group Norms
193(1)
Rationalizing Unethical Behavior
193(1)
Pressure to Go Along
194(1)
Practical Advice for Managers About Group Norms
194(1)
People Fulfill Assigned Roles
195(4)
The Zimbardo Prison Experiment
196(1)
Roles at Work
197(1)
Conflicting Roles Can Lead to Unethical Behavior
198(1)
Roles Can Support Ethical Behavior
198(1)
Practical Advice for Managers About Roles
199(1)
People Do What They're Told
199(2)
The Milgram Experiments
200(1)
Obedience to Authority at Work
200(1)
Practical Advice for Managers About Obedience to Authority
201(1)
Responsibility Is Diffused in Organizations
201(5)
``Don't Worry---We're Taking Care of Everything''
201(1)
Diffusing Responsibility in Groups
202(1)
Diffusing Responsibility by Dividing Responsibility
203(1)
Diffusing Responsibility by Creating Psychological Distance
204(1)
Practical Advice for Managers About Personal Responsibility
205(1)
Conclusion
206(1)
Discussion Questions
206(1)
Case: Sears, Roebuck and Co.: The Auto Center Scandal
207(3)
Notes
210(4)
PART IV ETHICS AND THE ORGANIZATION
Ethical Problems of Organizations
214(42)
Introduction
214(1)
Managing Stakeholders
215(2)
Ethics and Consumers
217(16)
Conflicts of Interest
218(6)
Product Safety
224(4)
Advertising
228(5)
Ethics and Employees
233(8)
Employee Safety
234(4)
Employee Downsizings
238(3)
Ethics and Shareholders
241(3)
Ethics and the Community
244(3)
Why Are These Ethical Issues?
247(1)
Costs
247(2)
Conclusion
249(1)
Discussion Questions
250(3)
Notes
253(3)
Ethics as Organizational Culture
256(58)
Introduction
256(1)
A ``Cookie Cutter'' Approach Won't Work
256(3)
Organizations Don't Have Cookie-Cutter Ethical Problems
257(1)
Cookie-Cutter Programs Are Superficial
257(1)
``Ethics for a Day'' Breeds Cynicism
257(1)
Proactively Develop an Ethical Organizational Culture
258(1)
Organizational Ethics as a Cultural Phenomenon
259(2)
What Is Culture?
259(1)
Strong versus Weak Cultures
259(1)
How Culture Influences Behavior: Socialization and Internalization
260(1)
Ethical Leadership
261(10)
Ethical Leaders Create Culture
261(2)
Leaders Maintain or Change Organizational Culture
263(8)
Formal Cultural Systems
271(14)
Selection Systems
271(1)
Values and Mission Statements, Policies and Codes
272(4)
Orientation and Training Programs
276(1)
Performance Management Systems
277(4)
Organizational Structure
281(2)
Decision-Making Processes
283(2)
Informal Cultural Systems
285(6)
Heroes and Role Models
285(1)
Norms: ``The Way We Do Things Around Here''
286(1)
Rituals
287(1)
Myths and Stories
287(2)
Language
289(2)
Developing and Changing the Ethical Culture
291(4)
How an Ethical Culture Can Become an Unethical Culture
292(1)
Becoming a More Ethical Culture
293(2)
A Cultural Approach to Changing Organizational Ethics
295(5)
A Cultural Systems View
295(1)
A Long-Term View
296(1)
Assumptions About People
296(1)
Diagnosis: The Ethical Culture Audit
296(2)
Ethical Culture Change Intervention
298(2)
The Ethics of Managing Organizational Ethics
300(1)
Conclusion
300(1)
Discussion Questions
301(1)
Case: Videotek Corporation
301(5)
Case: Culture Change at Texaco
306(2)
Case: An Unethical Culture in Need of Change: TAP Pharmaceuticals
308(2)
Notes
310(4)
Managing Ethics and Legal Compliance
314(42)
Introduction
314(1)
Structuring Ethics Management
315(3)
Managing Ethics: The Corporate Ethics Office
315(1)
Ethics Officers
316(1)
The Ethics Infrastructure
317(1)
The Corporate Ethics Committee
318(1)
Communicating Ethics
318(26)
Basic Communications Principles
319(3)
Evaluating the Current State of Ethics Communications
322(1)
Multiple Communications Channels for Formal Ethics Communication
323(2)
A Novel Approach to Ethics Communication at USAA
325(4)
Mission or Values Statements
329(2)
Policy Manuals
331(1)
Codes of Conduct
332(1)
Communicating Senior Management Commitment to Ethics
333(9)
Formal and Informal Systems to Resolve Questions and Report Ethical Concerns
342(2)
Using the Reward System to Reinforce the Ethics Message
344(2)
Evaluating the Ethics Program
346(1)
Surveys
346(1)
Values or Compliance Approaches
347(2)
Globalizing an Ethics Program
349(1)
Conclusion
350(1)
Discussion Questions
351(1)
Notes
352(4)
PART V ETHICS AND THE WORLD
Managing for Ethical Conduct in a Global Business Environment
356(42)
Introduction
356(1)
Focus on the Individual Expatriate Manager
357(17)
The Difficulties of Foreign Business Assignments
357(1)
The Need for Structure, Training, and Guidance
357(1)
Foreign Language Proficiency
358(1)
Learning About the Culture
359(1)
Recognizing the Power of Selective Perception
360(1)
Assumption of Behavioral Consistency
361(1)
Assumption of Cultural Homogeneity
362(1)
Assumption of Similarity
362(1)
Ethics-Related Training and Guidance
363(5)
How Different Are Ethical Standards in Different Cultures?
368(2)
Development of Corporate Guidelines and Policies for Global Business Ethics
370(4)
The Organization in a Global Business Environment
374(14)
Deciding to Do Business in a Foreign Country
374(8)
Development of a Transcultural Corporate Ethic
382(4)
Putting It All Together: Royal Dutch Shell
386(2)
Conclusion
388(1)
Discussion Questions
389(1)
Appendix: Caux Round Table Principles for Business
390(4)
Notes
394(4)
Index 398


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