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An anthology of readings, legal perspectives, and cases in business ethics.

Ethical Theory and Business provides students with a strong understanding of ethics in business. Case studies, a discussion of ethical theory, and a diverse range of perspectives on specific topics give students the tools needed to address ethical situations in business and challenge them to think for themselves.

Learning Goals

Upon completing this book readers will be able to:

  • Reflect on ethical and sustainable business practices
  • Understand the role of ethics in all function areas of business including management, marketing, international business, human resources, finance, and accounting
  • Discuss the most pressing issues confronting business leaders today

Note: MySearchLab does not come automatically packaged with this text. To purchase MySearchLab, please visit: or you can purchase a ValuePack of the text + MySearchLab (at no additional cost): ValuePack ISBN-10: 0205201199 / ValuePack ISBN-13: 9780205201198.

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Product Details

  • ISBN-13: 9780205201198
  • Publisher: Pearson
  • Publication date: 8/7/2012
  • Series: MyThinkingLab Series
  • Edition description: New Edition
  • Edition number: 9
  • Pages: 672
  • Sales rank: 570,752
  • Product dimensions: 7.30 (w) x 9.00 (h) x 0.60 (d)

Table of Contents

Found in this section:

1. Brief Table of Contents

2. Full Table of Contents



Chapter One Ethical Theory and Business Practice

Chapter Two Corporate Responsibility

Chapter Three Ethical Treatment of Employees

Chapter Four Diversity and Discrimination in the Workplace

Chapter Five Marketing and the Disclosure of Information

Chapter Six Ethical Issues in Finance and accounting

Chapter Seven Ethical Issues regarding Emerging Technologies

Chapter Eight Environmental Sustainability

Chapter Nine Ethical Issues In International Business

Chapter Ten Social and Economic Justice



Chapter One: Ethical Theory and Business Practice

Fundamental Concepts and Problems

Approaches to the Study of Morality and Ethical Theory

Contemporary Trends in Ethical Theory


Case 1: The Training Program

Case 2: Should Company Policy Apply to All?

Case 3: Should Everything Be for Sale?

Chapter Two: Corporate Responsibility


Stockholder Management Versus Stakeholder Management

Milton Friedman, The Social Responsibility of Business Is to Increase Its Profits

R. Edward Freeman, Managing for Stakeholders

John R. Boatright, What's Wrong--- and What's Right -- with Stakeholder Management

Wayne F. Cascio, Decency Means More than “Always Low Prices”: A Comparison of Costco to Wal-Mart’s Sam’s Club

Eric Orts and Alan Strudler, Putting a Stake in Stakeholder Theory

Ethical Cultures & Moral Responsibility

Linda Trevino and Katherine Nelson, Ethics as Organizational Culture

John R. Boatright, Individual Responsibility in the American Corporation System: Does Sarbanes Oxley Strike the Right Balance?

Legal Perspectives

Michigan Supreme Court, Dodge v. Ford Motor Co.

Supreme Court of New Jersey, A. P. Smith Manufacturing Co. v. Barlow

Johnson & Johnson: Our Credo


Case 1: The NYSEG Corporate Responsibility Program

Case 2: Outsourcing at Any Cost?

Case 3: H. B. Fuller in Honduras: Street Children and Substance Abuse

Case 4: Merck & River Blindness

Case 5: From Tension to Cooperative Dialogue: Holcim

Case 6: The Bachelor Party

Case 7: The Deepwater Horizon Disaster: Challenges in Ethical Decision Making

Suggested Supplementary Readings

Chapter Three: Ethical Treatment of Employees


The Hiring And Firing Of Employees

Patricia H. Werhane and Tara J. Radin, Employment at Will and Due Process

Richard A. Epstein, In Defense of the Contract at Will

Occupational Risk

Ruth R. Faden and Tom L. Beauchamp, The Right to Risk Information and the Right to Refuse Workplace Hazards

John R. Boatright, Occupational Health and Safety


Ronald Duska, Whistleblowing and Employee Loyalty

George Brenkert, Whistleblowing, Moral Integrity, and Organizational Ethics

Legal Perspectives

Superior Court of New Jersey, Warthen v. Toms River Community Memorial Hospital

Supreme Court of the United States, Automobile Workers v. Johnson Controls, Inc.

Superior Court of New Jersey, Potter v. Village Bank of New Jersey


Case 1: Off-duty Smoking

Case 2: Fired for Drinking the Wrong Brand of Beer

Case 3: Exposing Workers to Plutonium

Case 4: BP Workers Ill Trained for Dangers

Case 5: The Reluctant Security Guard

Case 6: A Matter of Principle

Suggested Supplementary Readings

Chapter Four: Diversity and Discrimination in the Workplace


Diversity And Affirmative Action

Tom L. Beauchamp, Affirmative Action and Diversity Goals in Hiring and Promotion

James P. Sterba, A Defense of Diversity Affirmative Action

George Sher, Diversity

Sexual Harassment

Larry May, Sexual Harassment and Solidarity

Jaimie Leeser and William O’Donohue, Normative Issues in Defining Sexual Harassment

Legal Perspectives

Supreme Court of the United States, Local 28 of the Sheet Metal Worker’s International Association v. Equal Employment Opportunity Commission

Supreme Court of the United States, Grutter V. Bollinger

Justice Sandra Day O’Connor, Opinion of the Court

Justice Clarence Thomas, Dissenting Opinion

Brief for 65 Leading American Businesses [Amici Brief]

Supreme Court of the United States, Meritor Savings Bank, FSB v. Vinson, et al.

Supreme Court of the United States, Teresa Harris, Petitioner v. Forklift Systems, Inc.


Case 1: Kaiser Aluminum and the United Steelworkers

Case 2: Promotions at Uptown Bottling and Canning Company

Case 3: How Would You Vote if You Lived in Michigan?

Case 4: Gay and Lesbian Rights at Friendly Motors

Case 5: Freedom of Expression at American Plastics Products

Case 6: Harassment at Brademore Electric

Suggested Supplementary Readings

Chapter Five: Marketing and the Disclosure of Information


Advertising And Disclosure

David M. Holley, Information Disclosure in Sales

Robert L. Arrington, Advertising and Behavior Control

George Brenkert, Marketing and the Vulnerable

Pharmaceutical Marketing

Carl Elliott, The Drug Pushers

Denis G. Arnold, The Ethics of Direct to Consumer Pharmaceutical Advertising

Legal Perspectives

United States Court of Appeals for the First Circuit, Irving A. Backman v. Polaroid Corporation

United States Court of Appeals for the Seventh Circuit, B. Sanfield, Inc. v. Finlay Fine Jewelry Corp.

United States Court of Appeals for the Second Circuit, Coca-Cola Company v. Tropicana Products, Inc

Supreme Court of California, Kasky v. Nike, Inc..


Case 1: Advice for Sale

Case 2: Sales at World Camera and Electronics

Case 3: Hucksters in the Classroom

Case 4: Kraft Foods Inc.: The Cost of Advertising on Children’s Waistlines

Case 5: Merck & Company: The Vioxx Recall

Case 6: Pfizer, Repeat Offender

Suggested Supplementary Readings

Chapter Six: Ethical Issues in Finance and Accounting


Accounting Ethics

Ronald Duska and Brenda Duska, Ethics in Auditing: The Auditing Function

Colin Boyd, The Structural Origins of Conflicts of Interest in the Accounting Profession

Financial Services

John R. Boatright, Ethical Issues in Financial Services

Alan Strudler, The Moral Problem of Insider Trading

Richard Nielsen, High Leverage Finance Capitalism: Ethical Issues and Potential Reforms

Legal Perspectives

U.S. Supreme Court, U.S. v. O’Hagan

American Institute of Certified Public Accountants, Code of Professional Conduct


Case 1: An Auditor’s Dilemma

Case 2: Accounting for Enron

Case 3: Enron and Employee Investment Risk

Case 4: Predatory Lending at Countrywide Financial

Case 5: Martha Stewart Living Omnimedia, Inc.: An Accusation of Insider Trading

Suggested Supplementary Readings

Chapter Seven: Ethical Issues regarding Emerging Technologies


Information And The World Wide Web

Deborah G. Johnson, Privacy & Internet Ethics

Jeffery D. Smith, Internet Content Providers and Complicity in Human Rights Abuse

Pharmaceutical Patents

Richard T. De George, Intellectual Property and Pharmaceutical Drugs: An Ethical Analysis

Patricia H. Werhane and Michael E. Gorman, Intellectual Property Rights, Access to Life-Enhancing Drugs, and Corporate Moral Responsibilities

Legal Perspectives

U.S. Supreme Court, Sony Corp. v. Universal City Studios Inc.

United States District Court for the Northern District of California, A & M Records v. Napster

World Trade Organization, Agreement on Trade-Related Aspects of Intellectual Property Rights


Case 1: Social Media and the Modern Worker: The Use of Facebook as an Organizational Monitoring and Management Tool

Case 2: Privacy at

Case 3: Patents and the African Aids Epidemic

Case 4: Aventis: Partnerships for Health

Suggested Supplementary Readings

Chapter Eight: Environmental Sustainability


Environmental Obligations And Climate Change

Norman E. Bowie, Morality, Money and Motor Cars

Denis G. Arnold with Keith Bustos, Business, Ethics, and Global Climate Change

Sustainability And Natural Capitalism

Allen Holland, Sustainability

Paul Hawken, Amory Lovens, and L. Hunter Lovins, Natural Capitalism

Stuart L. Hart, Taking the Green Leap to the Base of the Pyramid

Legal Perspectives

United States Supreme Court, United States v. Best Foods et al.

United States Supreme Court, Whitman, et al. v. American Trucking Associations, Inc.


Case 1: Royal Caribbean: Exotic Promises & Toxic Waters

Case 2: Texaco in the Ecuadorean Amazon

Case 3: BP: Beyond Petroleum Spills?

Case 4: Maintaining a Seat at the Table: The Shell Group

Case 5: Interface Corporation and Sustainable Business

Case 6: What Does it Mean to be Truly Green?: Environmental Sustainability at Frito Lay North America

Case 7: Ethics and Sustainability at Alcoa: A Symbiotic Relationship

Suggested Supplementary Readings

Chapter Nine: Ethical Issues in International Business


Universalism, Relativism And Human Rights

Norman Bowie, Relativism and the Moral Obligations of Multinational Corporations

Denis G. Arnold, Human Rights and Multinational Corporations

Patricia H. Werhane, Exporting Mental Models: Global Capitalism in the 21st Century

Sweatshops And Bribery

Ian Maitland, The Great Non-Debate Over International Sweatshops

Denis G. Arnold and Norman E. Bowie, Sweatshops and Respect for Persons

David Hess and Thomas Dunfee, Taking Responsibility for Bribery: The Multinational Corporation’s Role in Combating Corruption

Legal Perspectives

Supreme Court of Texas, Dow Chemical Company and Shell Oil Company v. Domingo Castro Alfaro et al.

U.S. Court of Appeals, Ninth Circuit, Doe 1 vs. Unocal

The U.N. Global Compact


Case 1: Foreign Assignment

Case 2: Facilitation or Bribery: Cultural and Ethical Disparities

Case 3: Chrysler and Gao Feng: Corporate Responsibility for Religious and Political Freedom in China

Case 4: Should Wal-Mart Do More? A Case Study in Global Supply Chain Ethics

Case 5: adidas: Application of Standards of Engagement to Child Labor Dilemma

Case 6: Tackling HIV/AIDS: Unilever Tea Kenya

Suggested Supplementary Readings

Chapter Ten: Social and Economic Justice


Economic Justice

John Rawls, An Egalitarian Theory of Justice

Robert Nozick, The Entitlement Theory

Justice At Work

Jeffery Moriarty, Do CEOs Get Paid Too Much?

Global Justice

Martin Wolf, Why Globalization Works

Thomas Pogge, Priorities of Global Justice

Legal Perspective

Universal Declaration of Human Rights


Case 1: Sapora’s Patriarchical Society

Case 2: Cocaine at the Fortune-500 Level

Case 3: Wages of Failure: The Ethics of Executive Compensation

Case 4: Shareholder Losses and Executive Gains: Bank of America’s Acquisition of Merrill Lynch

Case 5: SC Johnson: Pyrethrum Sourcing from Kenya

Case 6: Coca-Cola: The Entrepreneur Development Program – South Africa

Suggested Supplementary Readings

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