Business, Government and Society: A Managerial Perspective

by Steiner, George; Steiner, John

• ISBN13: 9780072994421
• ISBN10: 0072994428
• Edition: 11th
• Format: Hardcover
• Copyright: 2005-05-02
• Publisher: McGraw-Hill/Irwin

Summary

Business, Government and Society, by Steiner and Steiner, was one of the very first books in this course area and has benefited greatly from the reputation of its authors. George Steiner, the father in this father-and-son team, is one of the pioneers in the field. The text includes coverage of all the distinct content areas and is known for its inclusion of historical background. Each chapter has three elements; (1) a beginning story to illustrate central themes, (2) explanatory text, and (3) a case study inviting debate about events related to the subject area. One of the most complete on the market, the 10th Edition of Business, Government and Society not only covers the stakeholder theory, but also covers a total of four theoretical models for analyzing the actions and duties of corporations.

Table of Contents

Preface	xi
The Study of Business, Government, and Society	1	(20)
Exxon Mobil Corporation	1	(5)
What Is the Business--Government--Society (BGS) Field?	6	(2)
Why Is the BGS Field Important to Managers?	8	(1)
Four Models of the BGS Relationship	9	(9)
The Market Capitalism Model	9	(4)
The Dominance Model	13	(2)
The Countervailing Forces Model	15	(1)
The Stakeholder Model	16	(2)
Our Approach to the Subject Matter	18	(3)
Comprehensive Scope	19	(1)
Interdisciplinary Approach with a Management Focus	19	(1)
Use of Theory, Description, and Case Studies	19	(1)
Global Perspective	20	(1)
Historical Perspective	20	(1)
The Dynamic Environment	21	(31)
The Royal Dutch/Shell PLC	21	(2)
Volatility in the Business Environment	23	(1)
Underlying Historical Forces Changing the Business Environment	24	(10)
The Industrial Revolution	24	(1)
Inequality	24	(3)
Population Growth	27	(3)
Technology	30	(1)
Globalization	31	(1)
Nation-States	32	(1)
Dominant Ideologies	33	(1)
Great Leadership	33	(1)
Chance	34	(1)
Seven Key Environments of Business	34	(9)
The Economic Environment	35	(1)
The Technological Environment	36	(1)
The Government Environment	37	(2)
The Legal Environment	39	(1)
The Cultural Environment	40	(1)
The Natural Environment	41	(1)
The Internal Environment	41	(2)
Concluding Observations	43	(1)
Case Study: The American Fur Company	44	(8)
Business Power	52	(26)
James B. Duke and the American Tobacco Company	52	(3)
The Nature of Business Power	55	(1)
What Is Power?	55	(1)
Levels and Spheres of Corporate Power	56	(2)
The Story of the Railroads	58	(2)
Two Perspectives on Business Power	60	(10)
The Dominance Theory	61	(5)
Pluralist Theory	66	(4)
Concluding Observations	70	(1)
Case Study: John D. Rockefeller and the Standard Oil Trust	70	(8)
Critics of Business	78	(36)
Mary ``Mother'' Jones	78	(3)
Origins of Critical Attitudes toward Business	81	(3)
The Greeks and Romans	81	(2)
The Medieval World	83	(1)
The Modern World	83	(1)
The American Critique of Business	84	(19)
The Colonial Era	84	(1)
The Young Nation	85	(1)
1800--1865	86	(2)
Populists and Progressives	88	(2)
Socialists	90	(4)
The Great Depression and World War II	94	(1)
The Collapse of Confidence	95	(4)
Progressive Activists	99	(4)
Concluding Observations	103	(1)
Case Study: A Campaign against KFC Corporation	104	(10)
Corporate Social Responsibility	114	(33)
Merck & Co., Inc.	114	(2)
The Evolving Idea of Social Responsibility	116	(7)
Social Responsibility in Classical Economic Theory	116	(1)
The Early Charitable Impulse	117	(2)
Social Responsibility in the Late Nineteenth and Early Twentieth Centuries	119	(2)
1950--The Present	121	(2)
Basic Elements of Social Responsibility	123	(1)
General Principles of Corporate Social Responsibility	124	(1)
Are Social and Financial Performance Related?	125	(1)
Corporate Social Responsibility in a Global Context	126	(3)
International Codes of Conduct for Corporations	129	(7)
Corporate Codes	129	(2)
Industry Codes	131	(1)
The United Nations and the Global Compact	131	(2)
Other Codes	133	(2)
Assessing the Codes	135	(1)
Concluding Observations	136	(1)
Case Study: The Jack Welch Era at General Electric	137	(10)
Implementing Social Responsibility	147	(31)
The Chad-Cameroon Pipeline Project	147	(2)
Key Elements of Managing the Social Response	149	(10)
Leadership	149	(3)
Mission Statements	152	(1)
Managing Social Issues	153	(1)
The Life Cycles of Issues	153	(3)
Alignment of Structure, Culture, and Processes	156	(1)
Corporate Social Reporting	157	(2)
Corporate Philanthropy	159	(8)
Patterns and Magnitudes of Corporate Giving	160	(2)
Fortunes in Action	162	(2)
Strategic Philanthropy	164	(2)
Cause-Related Marketing	166	(1)
Concluding Observations	167	(1)
Case Study: Marc Kasky versus Nike Inc.	168	(10)
Business Ethics	178	(38)
The Fall of Arthur Andersen	178	(2)
What Are Business Ethics?	180	(1)
Two Theories of Business Ethics	181	(3)
Aristotle's Theory of Responsibility	184	(1)
Major Sources of Ethical Values in Business	185	(10)
Religion	185	(2)
Philosophy	187	(2)
Cultural Experience	189	(2)
Law	191	(4)
Factors That Influence Managerial Ethics	195	(4)
Leadership	195	(2)
Strategies and Policies	197	(1)
Corporate Culture	198	(1)
Individual Characteristics	199	(1)
How Corporations Manage Ethics	199	(7)
Ethics Programs: A Strong Future	206	(1)
Concluding Observations	206	(1)
Case Study: The Trial of Martha Stewart	206	(10)
Making Ethical Decisions in Business	216	(30)
Realtors in the Wilderness	216	(2)
Principles of Ethical Conduct	218	(11)
The Categorical Imperative	218	(1)
The Conventionalist Ethic	219	(1)
The Disclosure Rule	220	(1)
The Doctrine of the Mean	220	(1)
The Ends--Means Ethic	221	(1)
The Golden Rule	222	(1)
The Intuition Ethic	222	(1)
The Might-Equals-Right Ethic	223	(1)
The Organization Ethic	224	(1)
The Principle of Equal Freedom	224	(1)
The Proportionality Ethic	225	(1)
The Rights Ethic	226	(1)
The Theory of Justice	226	(1)
The Utilitarian Ethic	227	(2)
Reasoning with Principles	229	(1)
Character Development	230	(1)
Practical Suggestions for Making Ethical Decisions	231	(2)
Concluding Observations	233	(1)
Case Study: Short Incidents for Ethical Reasoning	234	(3)
HCA---The Healthcare Company	237	(9)
Business in Politics	246	(39)
Public Law 108-357	246	(2)
The Open Structure of American Government	248	(2)
A History of Political Dominance by Business	250	(5)
Laying the Groundwork	250	(1)
Ascendance, Corruption, and Reform	251	(2)
Business Falls Back under the New Deal	253	(1)
Postwar Politics and Winds of Change	254	(1)
The Rise of Antagonistic Groups	255	(1)
Diffusion of Power in Government	255	(2)
The Universe of Organized Business Interests	257	(1)
Lobbying	258	(4)
Lobbying Methods	260	(2)
The Corporate Role in Elections	262	(10)
Efforts to Limit Corporate Influence	262	(1)
The Federal Election Campaign Act	263	(2)
Political Action Committees	265	(1)
How PACs Work	265	(1)
Soft Money and Issue Advertising	266	(1)
Reform Legislation in 2002	267	(5)
The Influence Process	272	(2)
Tension over Corporate Political Expression	272	(2)
Concluding Observations	274	(1)
Case Study: Westar Goes to Washington	275	(10)
Federal Regulation of Business	285	(31)
Lockheed Martin Skunk Works	285	(3)
Underlying Reasons for Government Regulation of the Private Sector	288	(2)
Flaws in the Market	288	(1)
Social, Political, and Other Reasons for Regulation	289	(1)
Historical Patterns of Federal Regulation of Business	290	(4)
The First Wave	290	(1)
The Second Wave	291	(1)
The Third Wave	292	(1)
The Fourth Wave	292	(1)
War Blips	292	(1)
Attempts to Stem the Tide	292	(2)
The Legal Basis of Government Regulation of Business	294	(1)
Supreme Court Interpretations of Constitutional Power	295	(4)
Early History	295	(1)
Milestone Decisions: Post--Civil War to 1911	296	(1)
The Court Invalidates New Deal Laws	297	(1)
Attack and Reversal	298	(1)
How Government Regulations Are Made	299	(2)
Costs and Benefits of Complying with Federal Regulations	301	(3)
The Burden of Complying with Regulations	302	(1)
Benefits of Government Regulations	303	(1)
Growing Demands for New Regulations	304	(1)
The Mixed Economy	304	(1)
Regulation in Foreign Countries	305	(1)
Wide Variation in Regulation and Its Impact	305	(1)
Principles of Good Regulation	306	(1)
Concluding Observations	306	(1)
Case Study: The FDA and Tobacco Regulation	307	(9)
Reforming Regulation	316	(32)
Ted Turner Attacks Media Giants	316	(1)
Why Regulatory Reform?	317	(1)
Recommendations for Regulatory Reform	318	(10)
Statutory Reform	319	(1)
Privatization	320	(1)
Deregulation	321	(2)
Reduce Command Controls in Favor of Incentive Controls	323	(1)
Reduce Paperwork	324	(1)
Remove Flapdoodle and Conflicting Standards and Specifications	324	(1)
Regulatory Analysis	325	(1)
Sunset Laws	326	(1)
Regulatory Reform in Foreign Countries	326	(2)
The Basic Antitrust Laws	328	(3)
The Sherman Antitrust Act (1890)	328	(1)
The Clayton Act (1914)	328	(1)
The Federal Trade Commission Act (1914)	329	(1)
The Hart-Scott-Rodino Antitrust Improvement Act (1976)	329	(1)
Theories of Antitrust Enforcement	329	(2)
Mergers	331	(5)
Guidelines for Antitrust Action	332	(1)
Type of Merger	333	(1)
High-Technology Industries	334	(1)
Recent Trends in U.S. Merger Enforcement	334	(1)
Foreign Merger Laws and Activity	335	(1)
Concluding Observations	336	(1)
Case Study: Microsoft Corporation and Antitrust	337	(11)
Multinational Corporations and Trade	348	(33)
The Coca-Cola Company	348	(2)
The Multinational Corporation Defined	350	(1)
The Significance and Power of MNCs	351	(4)
How Multinational Is a Corporation?	353	(2)
Critics of MNC Power	355	(1)
Conflicts between Government and MNC Objectives	356	(1)
MNCs and Less Developed Countries (LDCs)	357	(2)
MNCs and Industrialized Nations	359	(1)
U.S. MNC--Government Relations	359	(1)
MNC--Government Relations in Other Industrialized Countries	360	(1)
Free Trade versus Protectionism	360	(6)
Why Free Trade?	361	(1)
The United States Moves toward Free Trade	361	(1)
Pressures for Protectionism	362	(1)
The Politics of Protectionism	363	(1)
Free Trader Responses to Protectionists	363	(1)
U.S. Deviation from Free Trade Policy	364	(1)
Tariff Barriers in Other Countries	364	(1)
Classical Free Trade Theory versus Reality	365	(1)
Corruption in Business and Government Transactions	366	(3)
What Is Corruption?	366	(1)
Costs and Consequences of Corruption	367	(1)
Laws and Codes to Control Corruption	368	(1)
Concluding Observations	369	(1)
Case Study: Union Carbide Corporation and Bhopal	370	(11)
Globalization	381	(32)
McDonald's Corporation	381	(3)
What Is Globalization?	384	(3)
Major Forces in Expanding Globalization	384	(1)
Pros and Cons of Globalization: An Overview	385	(2)
Increasing Foreign Competition	387	(1)
Expanding Regional Trade Agreements	388	(6)
The European Union (EU)	389	(2)
The North American Free Trade Agreement (NAFTA)	391	(2)
Other Trade Agreements	393	(1)
Nongovernmental Organizations	394	(1)
How Many NGOs Are There?	394	(1)
How NGOs Influence Government and Business	395	(1)
Globalization and International Financial Stability	395	(2)
Spreading Capitalism	397	(3)
Deviations from the American Capitalistic Model	397	(1)
Critics of Global Capitalism	398	(1)
Institutions and Ideas of Capitalism	399	(1)
Globalization Erodes Nation-State Sovereignty	400	(1)
Erosion of Cultures	401	(2)
Concluding Observations	403	(1)
Case Study: The World Trade Organization and Its Critics	403	(10)
Industrial Pollution and Environmental Policy	413	(34)
The Indian Health Service Solves a Mystery	413	(1)
Pollution	414	(3)
Human Health	415	(1)
The Biosphere	416	(1)
Industrial Activity, Pollution, and the Environment	417	(3)
Ideas Shape Attitudes toward the Environment	420	(2)
New Ideas Challenge the Old	421	(1)
Environmental Regulation in the United States	422	(1)
The Environmental Protection Agency	423	(1)
Principal Areas of Environmental Policy	423	(12)
Air	423	(7)
Water	430	(2)
Land	432	(3)
Assessing the Nation's Environmental Laws	435	(2)
Concluding Observations	437	(1)
Case Study: Owls, Loggers, and Old-Growth Forests	437	(10)
Managing Environmental Quality	447	(33)
Louisiana-Pacific Corporation	447	(2)
Regulating Environmental Risk	449	(1)
Analyzing Human Health Risks	450	(8)
Risk Assessment	450	(7)
Risk Management	457	(1)
Cost-Benefit Analysis	458	(3)
Advantages of Cost-Benefit Analysis	458	(1)
Criticisms of Cost-Benefit Analysis	459	(2)
Regulatory Options for Managing Environmental Risks	461	(5)
Command-and-Control Regulation	461	(1)
Market Incentive Regulation	462	(3)
Voluntary Regulation	465	(1)
Managing Environmental Quality	466	(2)
Environmental Management Systems	466	(2)
Capitalism Evolving	468	(2)
Concluding Observations	470	(1)
Case Study: Johns Manville Corporation and the Asbestos Nightmare	470	(10)
Consumerism	480	(32)
Harvey W. Wiley	480	(4)
Consumerism	484	(6)
Consumerism as an Ideology	484	(1)
The Rise of Consumerism in America	485	(3)
Consumerism as a Protective Movement	488	(2)
The Consumer's Protective Shield	490	(4)
The Consumer Product Safety Commission (CPSC)	490	(1)
The National Highway Traffic Safety Administration (NHTSA)	491	(1)
The Food and Drug Administration (FDA)	492	(2)
Other Consumer Protection Agencies	494	(1)
Product Liability Law	494	(4)
Negligence	495	(1)
Warranty	496	(1)
Strict Liability	497	(1)
An Assessment of Product Liability Suits	498	(3)
Business Wants Product Liability Reform	500	(1)
Impacts on Operations	501	(1)
Concluding Observations	502	(1)
Case Study: Advertising Alcohol	503	(9)
The Changing Workplace	512	(32)
Ford Motor Company	512	(3)
External Forces Changing the Workplace	515	(9)
Demographic Change	515	(2)
Technological Change	517	(1)
Structural Change	518	(2)
Competitive Pressures	520	(2)
Reorganization of Work	522	(2)
Government Intervention	524	(11)
Development of Labor Regulation in the United States	524	(6)
Work and Worker Protection in Japan and Europe	530	(3)
Observations about Labor Regulation	533	(2)
Concluding Observations	535	(1)
Case Study: Workplace Drug Testing	535	(9)
Civil Rights at Work	544	(44)
Johnson Controls, Inc.	544	(1)
A Short History of Workplace Civil Rights	545	(7)
The Colonial Era	545	(1)
Civil War and Reconstruction	546	(2)
Other Groups Face Employment Discrimination	548	(1)
The Civil Rights Cases	549	(1)
Plessy v. Ferguson	549	(2)
Long Years of Discrimination	551	(1)
The Civil Rights Act of 1964	552	(3)
Disparate Treatment and Disparate Impact	553	(1)
The Griggs Case	554	(1)
Affirmative Action	555	(1)
Executive Order 11246	555	(1)
The Supreme Court Changes Title VII	556	(6)
The Affirmative Action Debate	559	(3)
Women in the Workplace	562	(10)
Gender Attitudes at Work	563	(2)
The Persistence of Traditional Stereotypes	565	(1)
Occupational Segregation	565	(1)
Subtle Discrimination	566	(2)
Compensation	568	(2)
Sexual Harassment	570	(2)
Corporate Efforts to Promote Diversity	572	(4)
Concluding Observations	576	(1)
Case Study: Adarand v. Pena	576	(12)
Corporate Governance	588	(30)
Enron's Governance Debacle	588	(4)
Corporate Scandals in the Wake of Enron	592	(2)
Who Regulates Corporations?	594	(3)
The Sarbanes-Oxley Act	595	(2)
Corporate Governance Defined	597	(1)
The Corporate Charter	598	(1)
The Composition and Size of Boards	599	(3)
Board Structures in Foreign Countries	600	(1)
The Duties of Directors	600	(2)
Institutional Investors and Governance	602	(3)
CalPERS	603	(2)
Compensation	605	(4)
How Much Are CEOs Paid?	605	(1)
Criticisms of CEO Compensation	606	(2)
In Defense of CEOs	608	(1)
What Should Directors Do about Compensation?	608	(1)
To Whom Are Directors Accountable?	609	(1)
Concluding Observations	609	(1)
Case Study: Cendant Shareholders Attack Executive Pay	610	(8)
Index	618