Business Ethics Ethical Decision Making and Cases

by Ferrell, O. C.; Fraedrich, John; Ferrell

• ISBN13: 9780618395736
• ISBN10: 0618395733
• Edition: 6th
• Format: Paperback
• Copyright: 2004-01-01
• Publisher: South-Western College Pub

Summary

Due to a series of highly publicized scandals involving prominent organizations and figures (including Enron, WorldCom, and Martha Stewart), more business instructors are intent on teaching their students sound ethical principals. Business Ethics fulfills the need for a practical, applied text at the core of the ethics course or used as a supplement in other undergraduate and graduate courses. This accessible, up-to-date text covers the complex environment in which managers confront ethical decision making. Through this managerial framework, the authors cover the overall concepts, processes, and best practices associated with successful business ethics programs--helping students to see how ethics can be integrated into key strategic business decisions. Pedagogical tools help students to prepare for real-world ethical dilemmas instead of focusing on intellectual reasoning or a philosophical discussion of ideas. At the beginning of each chapter, Chapter Objectives give students concrete expectations for what they will learn, and An Ethical Dilemma describes a hypothetical incident and then asks students to consider how it may be resolved. A Real-Life Situation, or fictional mini-case, at the end of each chapter helps students to practice what they have learned and experience the process of ethical decision making. Check Your EQ quizzes allow students to assess their overall understanding of the key points in each chapter (answers appear upside-down at the end of this feature). In addition, instructors can use Behavior Simulation Role-Playing Cases from the Instructor's Resource Manual that encourage students to practice making complex, realistic, and timely ethical decisions while working in teams. New! Nine new cases reinforce the text's applied approach to ethics and cover a range of organizations and topics, such as "Martha Stewart's Insider Trading Scandal," "Enron: The Case of the Tilted 'E,'" "Tyco International, Ltd.," and "WorldCom." The Sixth Edition features a total of 18 cases--three more than in the last edition. New! Chapter 10, Business Ethics in a Global Economy, includes information on best practices, ethics audits, and disaster recovery planning to increase students' awareness of cross-national ethical issues and develop their strategic skills for planning and working through disasters. New! New and updated topics appear throughout the text, including a discussion of organizational and stakeholder issues and how to manage the necessary conflicts between stakeholder priorities; clarification of the notion of a universal code of ethics; increased coverage of highly ethical organizations such as Nordstrom and L.L. Bean; and more examples of ethical issues at lower management and entry-level positions. New! The Sixth Edition features a new two-color design, increasing the text's visual appeal and accessibility by more effectively highlighting major topics.

Table of Contents

The Importance of Business Ethics	2	(24)
Chapter Objectives	2	(1)
Chapter Outline	2	(1)
An Ethical Dilemma	3	(2)
Business Ethics Defined	5	(1)
Why Study Business Ethics?	6	(3)
A Crisis in Business Ethics	6	(2)
The Reasons for Studying Business Ethics	8	(1)
The Development of Business Ethics	9	(4)
Before 1960: Ethics in Business	9	(1)
The 1960s: The Rise of Social Issues in Business	10	(1)
The 1970s: Business Ethics As an Emerging Field	10	(1)
The 1980s: Consolidation	11	(1)
The 1990s: Institutionalization of Business Ethics	12	(1)
The Twenty-first Century: A New Focus on Business Ethics	12	(1)
The Benefit of Business Ethics	13	(6)
Ethics Contributes to Employee Commitment	14	(2)
Ethics Contributes to Investor Loyalty	16	(1)
Ethics Contributes to Customer Satisfaction	17	(1)
Ethics Contributes to Profits	18	(1)
Our Framework for Studying Business Ethics	19	(2)
Summary	21	(1)
Important Terms for Review	22	(1)
A Real-Life Situation	22	(1)
Check Your E.Q.	23	(1)
Emerging Business Ethics Issues	24	(21)
Chapter Objectives	24	(1)
Chapter Outline	24	(1)
An Ethical Dilemma	25	(1)
Stakeholders Define Ethical Issues in Business	26	(5)
Identifying Stakeholders	27	(2)
A Stakeholder Orientation	29	(2)
Ethical Issues in Business	31	(10)
Honesty and Fairness	31	(1)
Conflicts of Interest	32	(1)
Fraud	33	(3)
Discrimination	36	(2)
Information Technology	38	(3)
Recognizing an Ethical Issue	41	(1)
Summary	41	(2)
Important Terms for Review	43	(1)
A Real-Life Situation	43	(1)
Check Your E.Q.	44	(1)
Ethics As a Dimension of Social Responsibility	45	(29)
Chapter Objectives	45	(1)
Chapter Outline	45	(1)
An Ethical Dilemma	46	(3)
Economic Issues	49	(3)
Competitive Issues	52	(1)
Legal and Regulatory Issues	53	(11)
Laws Regulating Competition	54	(2)
Laws Protecting Consumers	56	(1)
Laws Promoting Equity and Safety	57	(2)
Laws Protecting the Environment	59	(2)
Laws That Encourage Ethical Conduct	61	(3)
Philanthropic Issues	64	(3)
Quality-of-Life Issues	65	(1)
Philanthropic Contributions	66	(1)
Strategic Philanthropy	66	(1)
Ethics As a Force in Social Responsibility	67	(1)
Summary	67	(1)
Important Terms for Review	68	(1)
A Real-Life Situation	69	(2)
Check Your E.Q.	71	(3)
Understanding Ethical Decision Making and Corporate Governance	74	(18)
Chapter Objectives	74	(1)
Chapter Outline	74	(1)
An Ethical Dilemma	75	(1)
A Framework for Ethical Decision Making in Business	76	(6)
Ethical Issue Intensity	76	(1)
Individual Factors	77	(2)
Organizational Factors	79	(1)
Opportunity	80	(1)
Business Ethics Evaluations and Intentions	81	(1)
Corporate Governance As a Dimension of Ethical Decision Making	82	(5)
Views of Corporate Governance	83	(1)
Elements of Corporate Governance Related to Ethical Decision Making	84	(3)
Using the Ethical Decision-Making Framework to Improve Ethical Decisions	87	(1)
Summary	88	(1)
Important Terms for Review	89	(1)
A Real-Life Situation	90	(1)
Check Your E.Q.	91	(1)
Individual Factors: Moral Philosophies and Cognitive Moral Development	92	(22)
Chapter Objectives	92	(1)
Chapter Outline	92	(1)
An Ethical Dilemma	93	(1)
Moral Philosophy Defined	94	(1)
Moral Philosophy Perspectives	95	(12)
Teleology	96	(3)
Deontology	99	(2)
The Relativist Perspective	101	(1)
Virtue Ethics	102	(1)
Justice	103	(3)
Applying Moral Philosophy to Ethical Decision Making	106	(1)
Cognitive Moral Development	107	(3)
Summary	110	(1)
Important Terms for Review	111	(1)
A Real-Life Situation	112	(1)
Check Your E.Q.	113	(1)
Organizational Factors: Corporate Culture	114	(26)
Chapter Objectives	114	(1)
Chapter Outline	114	(1)
An Ethical Dilemma	115	(1)
The Role of Corporate Culture in Ethical Decision Making	116	(7)
Ethical Framework and Audit for Corporate Culture	118	(2)
Ethics as a Component of Corporate Culture	120	(3)
The Role of Leadership in a Corporate Culture	123	(6)
Leadership Styles Influence Ethical Decisions	124	(2)
The Power of Leaders Influences Ethical Decisions	126	(2)
Motivating Ethical Behavior	128	(1)
Organizational Structure and Business Ethics	129	(3)
Group Dimensions of Organizational Structure and Culture	132	(3)
Types of Groups	132	(2)
Group Norms	134	(1)
Can People Control Their Own Actions Within an Organizational Culture?	135	(1)
Summary	136	(1)
Important Terms for Review	137	(1)
A Real-Life Situation	138	(1)
Check Your E.Q.	139	(1)
Organizational Factors: Structure, Relationships, and Conflicts	140	(26)
Chapter Objectives	140	(1)
Chapter Outline	140	(1)
An Ethical Dilemma	141	(2)
Interpersonal Relationships in Organizations	143	(10)
The Responsibility of the Corporation As a Moral Agent	143	(1)
Variation in Employee Conduct	144	(2)
Role Relationships	146	(4)
Differential Association	150	(1)
Whistle-Blowing	151	(1)
Organizational Pressures	152	(1)
The Role of Opportunity and Conflict	153	(4)
Opportunity Creates Ethical Dilemmas	154	(2)
Conflict Resolution	156	(1)
Improving Ethical Decision Making in Business	157	(2)
Summary	159	(1)
Important Terms for Review	160	(1)
A Real-Life Situation	161	(2)
Check Your E.Q.	163	(3)
Developing an Effective Ethics Program	166	(24)
Chapter Objectives	166	(1)
Chapter Outline	166	(1)
An Ethical Dilemma	167	(2)
The Need for Organizational Ethics Programs	169	(2)
An Effective Ethics Program	171	(3)
An Ethics Program Can Help a Company Avoid Legal Problems	172	(1)
Ethics Versus Compliance Programs	173	(1)
Codes of Conduct	174	(3)
Texas Instruments' Code of Ethics	176	(1)
Ethics Officers	177	(1)
Ethics Training and Communication	178	(3)
Systems to Monitor and Enforce Ethical Standards	181	(2)
Continuous Improvement of the Ethical Program	183	(1)
Common Mistakes in Designing and Implementing an Ethics Program	184	(2)
Summary	186	(1)
Important Terms for Review	187	(1)
A Real-Life Situation	188	(1)
Check Your E.Q.	189	(1)
Implementing and Auditing Ethics Programs	190	(24)
Chapter Objectives	190	(1)
Chapter Outline	190	(1)
An Ethical Dilemma	191	(1)
The Ethics Audit	192	(6)
Benefits of Ethics Auditing	194	(1)
Ethical Crisis Management and Recovery	195	(2)
Risks and Requirements in Ethics Auditing	197	(1)
The Auditing Process	198	(10)
Secure Commitment of Top Managers and Board of Directors	199	(1)
Establish a Committee to Oversee the Ethics Audit	200	(1)
Define the Scope of the Audit Process	201	(1)
Review Organizational Mission, Values, Goals, and Policies and Define Ethical Priorities	201	(2)
Collect and Analyze Relevant Information	203	(3)
Verify the Results	206	(1)
Report the Findings	207	(1)
Strategic Importance of Ethics Auditing	208	(1)
Summary	209	(2)
Important Terms for Review	211	(1)
A Real-Life Situation	211	(2)
Check Your E.Q.	213	(1)
Business Ethics in a Global Economy	214	(183)
Chapter Objectives	214	(1)
Chapter Outline	214	(1)
An Ethical Dilemma	215	(2)
Ethical Perceptions and International Business	217	(14)
Culture As a Factor in Business	218	(1)
Adapting Ethical Systems to a Global Framework	219	(12)
Global Values	231
The Multinational Corporation	225	(5)
Ethical Issues Around the Globe	230	(12)
Sexual and Racial Discrimination	230	(1)
Human Rights	231	(2)
Price Discrimination	233	(1)
Bribery	234	(2)
Harmful Products	236	(2)
Pollution and the Environment	238	(1)
Telecommunications Issues	239	(2)
Intellectual Property Protection	241	(1)
World Trade Organization	242	(1)
Summary	242	(2)
Important Terms for Review	244	(1)
A Real-Life Situation	244	(1)
Check Your E.Q.	245	(3)
Enron: Questionable Accounting Leads to Collapse	248	(9)
Tyco International: Leadership Crisis	257	(8)
Global Crossing: Inflated Sales Lead to Bankruptcy	265	(8)
WorldCom: Actions Lead to Corporate Reform	273	(8)
Arthur Andersen: Questionable Accounting Practices	281	(9)
Sunbeam Corporation: ``Chainsaw Al'' and Greed	290	(10)
Martha Stewart: Insider-Trading Scandal	300	(7)
Astra USA: A Sexual Discrimination Scandal	307	(6)
Firestone: A Reputation Blowout	313	(8)
Exxon Valdez: Revisited	321	(8)
Tobacco Under Fire: Advertising a Harmful Product	329	(6)
Microsoft: Antitrust Battles	335	(8)
HCA---The Healthcare Company: Learning from Past Mistakes	343	(7)
Ethics Officer Association: Sharing Best Practices	350	(8)
Ben & Jerry's Homemade: Managing Social Responsibility and Growth	358	(6)
New Belgium Brewing: Environmental and Social Responsibilities	364	(5)
Mattel: Ethics Is No Game	369	(8)
Conoco's Decision: The First Annual President's Award for Business Ethics	377	(20)
Appendix A Company Codes of Ethics	397	(28)
Appendix B The Caux Round Table Business Principles of Ethics	425	(4)
Endnotes	429	(20)
Index	449