Case Studies in Business Ethics / Edition 6

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Overview

For Business Ethics courses.

This collection of quality cases and essays on business ethics addresses some of the most pertinent ethical issues in today's business environment. It goes well beyond matters of fraud and public relations to consider standards of professionalism, corporate decision-making structure, the interface between ethical theory and economic practice.

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Product Details

  • ISBN-13: 9780132424325
  • Publisher: Pearson
  • Publication date: 3/6/2008
  • Edition description: New Edition
  • Edition number: 6
  • Pages: 448
  • Product dimensions: 6.90 (w) x 9.10 (h) x 1.00 (d)

Table of Contents

Complete Table of Contents:

Introduction

Ethics, Business, and Business Ethics

Al Gini, Alexei Marcoux

Section One

Business or Ethics

Essay

Is Business Bluffing Ethical?

Albert Z. Carr

Case Study

The Parable of the Sadhu

Bowen H. McCoy

Case Study

Into the Mouth of Babes

James Traub

Case Study

Tylenol’s Rebound

Carl Cannon

Section Two

Truth-Telling and Communication

Case Study

Whistleblowing and Employee Loyalty

Ronald Duska

Case Study

Some Paradoxes of Whistleblowing

Michael Davis

Case Study

Baxter International and the Dialyzer Crisis

Julie A. Davis

Case Study

Shoe Sales

Thomas L. Carson

Case Study

The Job Negotiation

Michael A. Santoro

Case Study

Volvo’s Crushing Blow

Ronald M. Green

Section Th ree

The Ad-Cult and Marketing

Essay

Is Marketing Ethics an Oxymoron?
Philip Kotler

Essay

The Dependence Effect

John Kenneth Galbraith

Case Study

Everyquest®: Entertainment or Addiction

Judith W. Spain and Gina Vega

Case Study

Vioxx

Ronald M. Green

Case Study

Uptown, Dakota, and PowerMaster

N. Craig Smith

Case Study

The Case of the Contested Firearms

George Brenkeri

Section Four

Everything Old to New Again

Case Study

The Fall of Michael Milken

O. C. Ferrell and John Fraedrich

Case Study

Enron: The Good, the Bad, and the Really Ugly

Denis Collins

Case Study

Kozlowski’s Tyco—I Am the Company!

Denis Collins

Case Study

The Parmalat Affair: Europe’s Largest Bankruptcy Scandal

Peter Madsen and Antonino Vaccaro

Case Study

The Good Old Boys at WorldCom

Dennis Moberg and Edward Romar

Case Study

The Ford Pinto

W. Michael Hoffman

Section Five

Corporations and Businesses, Large and Small

Case Study

Sears Auto Shock

Ronald M. Green

Case Study

The New Year’s Eve Crisis

William Naumes and Margaret J. Naumes

Case Study

The Wal-Mart Way

Edward C. Brewer

Case Study

Who Should Pay?

Manuel G. Velasquez

Case Study

Selling your Sole at Birkenstock

Michael Lewis

Case Study

A. H. Robins: The Dalkon Shield

Al Gini and T. Sullivan

Section Six

The Global Marketplace

Essay

Sweatshops and Respect for Persons

Denis G. Arnold and Norman E. Bowle

Essay

The Great Non-Debate over International Sweatshops

Ian Maitland

Case Study

Big Blue in Argentina

Miguel Alzola

Case Study

Ellen Moore: Living and Working in Bahrain

Gail Ellement and Martha Maznevski

Case Study

Nike’s Suppliers in Vietnam

Sahsa Lyutse

Case Study

Chrysler and Gao Feng: Corporate Responsibility for Religious and Political Freedom in China

Michael A. Santoro

Case Study

H. B. Fuller in Honduras

John Boatright

Section Seven

Women in the Workplace

Essay

Women in the Workplace

Al Gini

Essay

Management Women and the New Facts of Life

Felice N. Schwartz

Essay

Homeward Bound

Linda Hirshman

Essay

Where Are the Women?

Linda Tischler

Essay

How Women Are Changing Corporate America

Yoji Cole

Essay

How Corporate America Is Betraying Women

Betsy Morris

Case Study

Gender Issues at Your House

John Hasnas

Case Study

Worth the Effort?

Raymond S. Pfeiffer and Ralph R. Forsberg

Section Eight

Diversity in the Workplace

Essay

Racism in the Workplace

Aaron Bernstein

Case Study

Texaco: The Jelly Bean Diversity Fiasco

Marianne M. Jennings

Case Study

Denny’s

Ronald M. Green

Case Study

Management Dilemma

Fred E. Schuster

Case Study

Keeping It Real

Patricia S. Parker

Case Study

Sexual Discrimination at Eastern Airlines?

Al Gini

Section Nine

Business and the Environment

Case Study

Save the Turtles

Rogene A. Buchholz

Case Study

Edible Carpets, Anyone?! Interface Corporation, a Sustainable Business

Joe DesJardins and Janalle Aaron

Case Study

Texaco in the Ecuadorean Amazon

Denis G. Arnold

Case Study

The Fight over the Redwoods

William H. Shaw

The New Market Opportunity

Manuel G. Velasquez

Section Ten

Internet Ethics and Electronic Commerce

Case Study

Cyberethics: Seven Short Cases

Richard A. Spinello and Herman T. Tavani

Case Study

E-Mail Policy at Johnson & Dresser

Richard A. Spinello

Essay

Reckonings: What Price Fairness?

Paul Krugman

Essay

Much Ado About Price Discrimination

Alexei M. Marcoux

Essay

“Snipers” Draw Ire of Auction Site Fans

Doug Bedell

Essay

Snipers, Stalkers, and Nibblers: Online Auction Business Ethics

Alexei M. Marcoux

Section Eleven

Leadership

Essay

Leadership: An Overview

Al Gini

Essay

The Call of Leaders

Gary Wills

Essay

Ethics: Take It from the Top

Maynard M. Dolecheck and Carolyn C. Dolecheck

Essay

Ways Women Lead

Judy B. Rosener

Essay

Moral Mazes: Bureaucracy and Managerial Work

Robert Jackall

Essay

Not a Fool, Not a Saint

Thomas Teal

Essay

Malden Mills: When Being A Good Company Isn’t Good Enough

Al Gini and Alexei M. Marcoux

Case Study

Merck and Roy Vagelus: The Value of Lenders

Joanne B. Ciulla

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Preface

If doing business were simple and ethical decisionmaking always obvious, there would be no need for this book or any textbook on the topic of business ethics. But clearly such is not the case. Like most things in life, business is complex and the pursuit of ethics is often convoluted. Sadly, because it is hard to combine these two enterprises, we too often simply dismiss business ethics, accuse it of being an oxymoron, or proclaim that it is impossible to achieve because of the technical complexity and intellectual nuances involved.

The reality is that, whether in our professional or private lives, doing the right thing for the right reason is never easy. But just because it is difficult does not mean that we need not bother to try, or that it cannot be done. We are, to paraphrase jean-Paul Sartre, moral mammals required by our status and situation to decide, make choices, seek meaning. None of us are absolved, says Sartre; we all must choose our way through life. We all must decide on what is right, what is wrong, what is acceptable and unacceptable conduct in regard to ourselves and others.

Some critics, of course, will say that, while this all may be true, in business ethics the situation is much more complex, the choices are much more difficult, and the dilemmas are much more confusing because of what is at stake: success, status, stuff, wealth, position, property. These critics claim that there is a long history (e.g., Niccolo Machiavelli, The Prince) of maintaining separate standards for personal and business (and/or political) conduct. According to Otto von Bismarck, it is the way of the world. Success in the public realm requires a certain amountof ethical schizophrenia, what he would call real politik.

As a discipline, business ethics wants to deny this dichotomy. Business is not disconnected from the people it serves. Business is part of life. Life, labor, and business are all of a piece. They should not be separate "games" played by separate "rules." Like all other activities in life, business is required to ask, "What ought to be done in regard to others?" and "What rights and obligations do we have and share with others?"

What business ethics is advocating is that people apply in the workplace those commonsensical rules and standards learned at home, from the lectern, and from the pulpit. The moral issues facing a person are age-old, and they are essentially the same issues facing a business—only written large. According to R. Edward Freeman, of the Darden School of Business, ethics is "how we treat each other, every day, person to person. If you want to know about a company's ethics, look at how it treats people—customers, suppliers, and employees. Business is about people. And business ethics is about how customers and employees are treated."

What is being asked of the business community is neither extraordinary nor excessive: a decent product at a fair price; honesty in advertisements; fair treatment of employees, customers, suppliers, and competitors; a strong sense of responsibility to the communities it inhabits and serves; and the production of 4 reasonable profit for the financial risk-taking of its stockholders and owners. In the words of General Robert Wood Johnson, founder of Johnson & Johnson:

The day has passed when business was a private matter—if it ever really was. In a business society, every act of business has social consequences and may arouse public interest. Every time business hires, builds, sells or buys, it is acting for the . . . people as well as for itself, and it must be prepared to accept full responsibility.

Case Studies in Business Ethics is an attempt to bring together in a single package an overview of ethical reasoning, an explanation of the case method, essays to read, ideas and issues to ponder, and cases to debate. It is my hope that these readings will be both interesting and informative to teachers and students alike.

The first edition of this text (1984) was the brainchild solely of Thomas Donaldson. Editions two (1990), three (1993), and four (1996) were the products of the efforts of both of us. For good or ill, the responsibility for this fifth edition fell entirely on my shoulders. Tom's pressing professional schedule and expanded family responsibilities prohibited him from coediting this project with me. Nevertheless, I want to publicly thank Tom for all of his efforts over the years on this project, for his accomplishments and contributions to the field of business ethics, and for his friendship and collegiality.

A few other thanks also need to be noted. I owe a great deal of gratitude to my longtime associate Mark D. Schneider for his diligence in preparing this manuscript. I also want to thank April White, my graduate assistant, for her day-today production efforts. And I want especially to thank Ross Miller and Wendy Yurash of Prentice Hall for making this book possible yet again.

AL GINI
Loyola University Chicago

Read More Show Less

Introduction

If doing business were simple and ethical decisionmaking always obvious, there would be no need for this book or any textbook on the topic of business ethics. But clearly such is not the case. Like most things in life, business is complex and the pursuit of ethics is often convoluted. Sadly, because it is hard to combine these two enterprises, we too often simply dismiss business ethics, accuse it of being an oxymoron, or proclaim that it is impossible to achieve because of the technical complexity and intellectual nuances involved.

The reality is that, whether in our professional or private lives, doing the right thing for the right reason is never easy. But just because it is difficult does not mean that we need not bother to try, or that it cannot be done. We are, to paraphrase jean-Paul Sartre, moral mammals required by our status and situation to decide, make choices, seek meaning. None of us are absolved, says Sartre; we all must choose our way through life. We all must decide on what is right, what is wrong, what is acceptable and unacceptable conduct in regard to ourselves and others.

Some critics, of course, will say that, while this all may be true, in business ethics the situation is much more complex, the choices are much more difficult, and the dilemmas are much more confusing because of what is at stake: success, status, stuff, wealth, position, property. These critics claim that there is a long history (e.g., Niccolo Machiavelli, The Prince) of maintaining separate standards for personal and business (and/or political) conduct. According to Otto von Bismarck, it is the way of the world. Success in the public realm requires a certain amount ofethical schizophrenia, what he would call real politik.

As a discipline, business ethics wants to deny this dichotomy. Business is not disconnected from the people it serves. Business is part of life. Life, labor, and business are all of a piece. They should not be separate "games" played by separate "rules." Like all other activities in life, business is required to ask, "What ought to be done in regard to others?" and "What rights and obligations do we have and share with others?"

What business ethics is advocating is that people apply in the workplace those commonsensical rules and standards learned at home, from the lectern, and from the pulpit. The moral issues facing a person are age-old, and they are essentially the same issues facing a business--only written large. According to R. Edward Freeman, of the Darden School of Business, ethics is "how we treat each other, every day, person to person. If you want to know about a company's ethics, look at how it treats people--customers, suppliers, and employees. Business is about people. And business ethics is about how customers and employees are treated."

What is being asked of the business community is neither extraordinary nor excessive: a decent product at a fair price; honesty in advertisements; fair treatment of employees, customers, suppliers, and competitors; a strong sense of responsibility to the communities it inhabits and serves; and the production of 4 reasonable profit for the financial risk-taking of its stockholders and owners. In the words of General Robert Wood Johnson, founder of Johnson & Johnson:

The day has passed when business was a private matter--if it ever really was. In a business society, every act of business has social consequences and may arouse public interest. Every time business hires, builds, sells or buys, it is acting for the . . . people as well as for itself, and it must be prepared to accept full responsibility.

Case Studies in Business Ethics is an attempt to bring together in a single package an overview of ethical reasoning, an explanation of the case method, essays to read, ideas and issues to ponder, and cases to debate. It is my hope that these readings will be both interesting and informative to teachers and students alike.

The first edition of this text (1984) was the brainchild solely of Thomas Donaldson. Editions two (1990), three (1993), and four (1996) were the products of the efforts of both of us. For good or ill, the responsibility for this fifth edition fell entirely on my shoulders. Tom's pressing professional schedule and expanded family responsibilities prohibited him from coediting this project with me. Nevertheless, I want to publicly thank Tom for all of his efforts over the years on this project, for his accomplishments and contributions to the field of business ethics, and for his friendship and collegiality.

A few other thanks also need to be noted. I owe a great deal of gratitude to my longtime associate Mark D. Schneider for his diligence in preparing this manuscript. I also want to thank April White, my graduate assistant, for her day-today production efforts. And I want especially to thank Ross Miller and Wendy Yurash of Prentice Hall for making this book possible yet again.

AL GINI
Loyola University Chicago

Read More Show Less

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