Business Ethics

About the Editors xi Preface xii General Introduction: The Nature of Business Ethics 1 Part 1 Ethics and Business: From Theory to Practice 37 Introduction 37 1 Theories of Economic Justice 43 Justice as Fairness 43 John Rawls Distributive Justice 49 Robert Nozick Distributive Justice and Utilitarianism 55 J. J. C. Smart The "Invisible Hand" 59 Jan Narveson Corporate Ethics in a Devilish System 70 Kent Greenfield Questions for Discussion 77 2 Ethics and Business Decision Making 78 Teaching Ethical Decision Making and Principled Reasoning 78 Michael Josephson Business Ethics and Moral Motivation: A Criminological Perspective 86 Joseph Heath Ethical Leadership and the Psychology of Decision Making 105 David M. Messick and Max H. Bazerman Cost-Benefit Analysis: An Ethical Critique 120 Steven Kelman Cost-Benefit Analysis Defended 127 Herman B. Leonard and Richard J. Zeckhauser Questions for Discussion 130 Cases for Part 1 131 Mini-Cases 131 MBA Student Mini-Dilemmas 132 Cases The Parable of the Sadhu 133 Bowen H. McCoy The Ford Pinto 139 W. Michael Hoffman The Analyst's Dilemma (A) 145 Joseph L. Badaracco Jr. and Jerry Useem Walk Away From Your Mortgage! 149 Roger Lowenstein The Ok Tedi Copper Mine 150 Manuel G. Velasquez Part 2 The Nature of the Corporation 157 Introduction 157 3 Agency, Legitimacy, and Responsibility 163 Can a Corporation Have a Conscience? 163 Kenneth E. Goodpaster and John B. Matthews Jr. Is Business Bluffing Ethical? 172 Albert Z. Carr The Social Responsibility of Business is to Increase its Profits 180 Milton Friedman Stakeholder Theory of the Modern Corporation 184 R. Edward Freeman Ethics in Business: Two Skeptical Challenges 192 Robert E. Frederick Commentary on the Social Responsibility of Corporate Entities: Bad and Not-so-Bad Arguments for Shareholder Primacy 202 Lynn A. Stout Questions for Discussion 215 4 Corporate Governance and Accountability 216 Who Rules the Corporation? 216 Ralph Nader, Mark Green, and Joel Seligman Power and Accountability: The Changing Role of the Corporate Board of Directors 224 Irving S. Shapiro Who Should Control the Corporation? 231 Henry Mintzberg Tone at the Top: An Ethics Code for Directors? 243 Mark S. Schwartz, Thomas W. Dunfee, and Michael J. Kline Do CEOs Get Paid Too Much? 264 Jeffrey Moriarty Questions for Discussion 274 Cases for Part 2 275 Mini-Cases 275 MBA Student Mini-Dilemmas 277 Cases Fire Destroys Malden Mills 277 Anonymous Merck & Co., Inc. (A) 279 David Bollier and Stephanie Weiss Bailouts and Bonuses on Wall Street 284 Kirsten Martin and Michael Scotto Citigroup's Chief Rebuffed on Pay by Shareholders 297 Jessica Silver-Greenberg and Nelson D. Schwartz Part 3 Work in the Corporation 301 Introduction 301 5 Employee Rights and Duties 307 Employee Rights 307 Ronald Duska Human Rights, Workers' Rights, and the "Right" to Occupational Safety 316 Tibor R. Machan Whistle-Blowing 320 Richard T. De George The Morality of Whistleblowing: A Commentary on Richard T. De George 338 W. Michael Hoffman and Mark S. Schwartz Conflicts of Interest 350 Thomas L. Carson The Moral Problem in Insider Trading 368 Alan Strudler Questions for Discussion 382 6 The Modern Workplace: Obligations and Limits 383 A Kantian Theory of Meaningful Work 383 Norman E. Bowie Organization of Work in the Company and Family Rights of the Employees 392 Domènec Melé Workplace Wars: How Much Should I be Required to Meet the Needs of Your Children? 401 Claudia Mills Discrimination, Harassment, and the Glass Ceiling: Women Executives as Change Agents 407 Myrtle P. Bell, Mary E. McLaughlin, and Jennifer M. Sequeira The Debate Over the Prohibition of Romance in the Workplace 418 Colin Boyd Questions for Discussion 431 Cases for Part 3 432 Mini-Cases 432 MBA Student Mini-Dilemmas 433 Cases The Case of the Mismanaged Ms. 434 Sally Seymour Heineken NV: Workplace HIV/AIDS Programs in Africa (A) 439 Diana Barrett and Daniella Ballou Banking: A Crack in the Swiss Vault 450 Andy Court and Keith Sharman Will Rewards for Whistleblowers Encourage Ethical Behavior? 454 Matthew Gilley and W. Michael Hoffman Boeing Chief is Ousted after Admitting Affair 455 Leslie Wayne Abuse Scandal Inquiry Damns Paterno and Penn State 457 Ken Belson Timeline: The Penn State Scandal 460 Justin Sablich, Ford Fessenden, and Alan McLean You've Been Tagged! (Then Again, Maybe Not): Employers and Facebook 463 William P. Smith and Deborah L. Kidder Part 4 The Corporation in Society 475 Introduction 475 7 The Consumer 481 The Dependence Effect 481 John Kenneth Galbraith The Non Sequitur of the "Dependence Effect" 485 F. A. von Hayek The Ethics of Consumer Protection 488 Manuel G. Velasquez Marketing and the Vulnerable 504 George G. Brenkert Questions for Discussion 513 8 The Environment and Sustainability 514 Morality, Money, and Motor Cars 514 Norman Bowie Business and Environmental Ethics 520 W. Michael Hoffman Creating Sustainable Value 529 Stuart L. Hart and Mark B. Milstein Rethinking the Concept of Sustainability 542 Alexis J. Bañon Gomis, Manuel Guillén Parra, W. Michael Hoffman, and Robert E. McNulty Questions for Discussion 552 9 International Business 553 Ethical Dilemmas for Multinational Enterprise: A Philosophical Overview 553 Richard T. De George International Business, Morality, and the Common Good 557 Manuel G. Velasquez Values in Tension: Ethics Away from Home 567 Thomas Donaldson The Case for Leveraged-Based Corporate Human Rights Responsibility 576 Stepan Wood What's Wrong with Bribery 602 Scott Turow Capitalism with a Human Face: The UN Global Compact 604 Klaus M. Leisinger Questions for Discussion 620 Cases for Part 4 621 Mini-Cases 622 MBA Student Mini-Dilemmas 623 Cases The Ethics of Marketing: Nestlé's Infant Formula 624 James E. Post TransAuto Corporation Trade-offs 629 Rewritten by Mark S. Schwartz Sony Online Entertainment: EverQuest(r) or EverCrack? 632 Judith W. Spain and Gina Vega Dicing with Death? A Case Study of Guidant Corporation's Implantable Defibrillator Business 636 Martin E. Sandbu Chiquita Accused of Funding Colombia Terrorists 642 Curt Anderson Wal-Mart Hushed Up a Vast Mexican Bribery Case 644 David Barstow Yahoo! and Google in China 656 John M. Kline Google Softens Tone on China 661 Amir Efrati and Loretta Chao Part 5 Challenges and Emerging Issues 665 Introduction 665 10 C hallenges and Emerging Issues 669 What's the Matter with Business Ethics? 669 Andrew Stark Developing and Sustaining an Ethical Corporate Culture: The Core Elements 677 Mark S. Schwartz The Ethics Officer as Agent of the Board: Leveraging Ethical Governance Capability in the Post-Enron Corporation 689 W. Michael Hoffman and Mark Rowe Can a Company be Too Ethical? 699 Andrew W. Singer God as a Managerial Stakeholder? 705 Mark S. Schwartz The Fortune at the Bottom of the Pyramid 720 C. K. Prahalad and Stuart L. Hart Questions for Discussion 733 Business Ethics in Hollywood Movies 733 Mark S. Schwartz Cases for Part 5 735 Mini-Cases 735 Cases Global Corporation: Running a Global Ethics and Compliance Program 736 Lisa A. Stewart Barrick's Tanzanian Project Tests Ethical Mining Policies 743 Geoffrey York An Ethical Approach to Crisis Management 749 Mark S. Schwartz, Wesley Cragg, and W. Michael Hoffman Why I Am Leaving Goldman Sachs 756 Greg Smith