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Overview

<>Ethical Theory and Business, 8/e presents a comprehensive anthology of readings, legal perspectives, and cases in ethics in business. Focuses on providing and explaining the tools needed to deal with ethical dilemmas in business.

The authors examine ethical theory and business practice, the purpose of the corporation, corporate character and individual responsibility, acceptable risk, the ethical treatment of employees, diversity and discrimination in the workplace, marketing and disclosure of information, ethical issues in information technology and, ethical issues in international business.

This book is intended for those interested in examining the ethical challenges we face today.

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Product Details

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PREFACE:

Preface

We are delighted that Ethical Theory and Business has continued into the new millennium. The continued good fortune of this book is made possible by the many comments and suggestions that loyal readers have given us over more than a quarter of a century.

As the field of business ethics has matured, there has been an increased stability in the topics discussed. Nonetheless, the field is moving forward and we try to select readings that reflect those changes. Several changes simply update the discussion of topics in earlier editions. We do note that philosophers are taking empirical work in the field more seriously and that turn of events is reflected in some of the readings that we have chosen. Two of the areas where change is most noticeable are in the areas of employee rights and international business ethics. Advances in technology have increased the pressures on business to use that technology to improve the bottom line even if it comes at the cost of violating privacy. We have added an article on the electronic surveillance of employees and another article on the use of genetic testing in hiring decisions. In the international arena, discussions of bribery are not limited to the implications of the Foreign Corrupt Practices Act. In addition the alleged sweatshop conditions in factories that supply the developed world with cheap textiles and other goods have become a concern on college campuses and in the business press. Thoughtful people are also asking whether the western industrialized version of capitalism will work everywhere, and some even wonder if capitalism has a contribution to make in the less developed countries.These issues are introduced in the chapter on international business ethics.

As we enter a new decade, we are not sure which topics in business ethics will receive the most attention. We might speculate that the present concern about genetically altered foods in Europe might become a concern in the U.S. as well. However, as the field develops, we pledge that we will continue to reflect those changes in future editions.

As in the past, several persons deserve special recognition for their assistance in preparing this edition. Three anonymous reviewers provided Prentice Hall and us with valuable suggestions for updating the book. In addition we are thankful for the comments of Denis Arnold, Thomas Carson, Michael DeWilde, Mark W. Matthews, and Barbara McGraw.

In this edition, we have been ably assisted by Padma Shah, Mark Gaspers, and Michael Hammer—three student research assistants who exceeded their duties in searching data bases, locating new materials, and suggesting many changes to make the book useful for students. Special thanks go to Scott Reynolds, a doctoral candidate in business ethics at the University of Minnesota, who has provided library research, editorial assistance, and obtained permission to reprint many of the articles in this edition. Permission for the other articles was obtained by Moheba Hanif, who worked on manuscript preparation from the beginning of the project and made manuscript corrections for five of the nine chapters.

Tom L. Beauchamp
Norman E. Bowie

Read More Show Less

Table of Contents

PREFACE xiv

Chapter 1

ETHICAL THEORY AND BUSINESS PRACTICE 1

INTRODUCTION 1

FUNDAMENTAL CONCEPTS AND PROBLEMS 1

Morality and Ethical Theory 1

Morality and Prudence 3

Morality and Law 4

The Rule of Conscience 6

Approaches to the Study of Morality and Ethical Theory 7

Relativism and Objectivity of Belief 8

Moral Disagreements 11

The Problem of Egoism 13

NORMATIVE ETHICAL THEORY 18

Utilitarian Theories 18

Kantian Ethics 23

Contemporary Challenges to the Dominant Theories 30

Rights Theories 30

Virtue Ethics 33

Common-Morality Theories 35

A Prologue to Theories of Justice 38

The Moral Point of View 39

Chapter 2

THE PURPOSE OF THE CORPORATION 45

INTRODUCTION 45

STOCKHOLDER MANAGEMENT VERSUS STAKEHOLDER MANAGEMENT

Milton Friedman, The Social Responsibility of Business Is to Increase Its Profits 51

R. Edward Freeman, Managing for Stakeholders 56

John R. Boatright, What’s Wrong–and What’s Right–with Stakeholder Management 69

Wayne F. Cascio, Decency Means More than “Always Low Prices”: A Comparison of Costco

to Wal-Mart’s Sam’s Club” 80

LEGAL PERSPECTIVES

Michigan Supreme Court, Dodge v. Ford Motor Co. 90

Supreme Court of New Jersey, A. P. Smith Manufacturing Co. v. Barlow 92

Johnson & Johnson: Our Credo 94

CASES

Case 1: The NYSEG Corporate Responsibility Program 95

Case 2: Outsourcing at Any Cost? Do Corporations Ever Have a Moral Obligation Not

to Outsource? 98

Case 3: Merck and River Blindness 101

Case 4: H. B. Fuller in Honduras: Street Children and Substance Abuse 102

Case 5: From Tension to Cooperative Dialogue: Holcim 104

Suggested Supplementary Readings 106

Chapter 3

ETHICAL TREATMENT OF EMPLOYEES 107

INTRODUCTION 107

THE HIRING AND FIRING OF EMPLOYEES

Patricia H. Werhane and Tara J. Radin, Employment at Will and Due Process 113

Richard A. Epstein, In Defense of the Contract at Will 121

OCCUPATIONAL RISK Ruth R. Faden and Tom L. Beauchamp, The Right to Risk Information and the Right

to Refuse Workplace Hazards 129

John R. Boatright, Occupational Health and Safety 136

WHISTLE-BLOWING

Michael Davis, Some Paradoxes of Whistle-Blowing 147

Ronald Duska, Whistle-Blowing and Employee Loyalty 155

LEGAL PERSPECTIVES

Superior Court of New Jersey, Warthen v. Toms River Community Memorial Hospital 159

United States Supreme Court, Automobile Workers v. Johnson Controls Inc. 164

Superior Court of New Jersey, Potter v. Village Bank of New Jersey 167

CASES

Case 1: Off-Duty Smoking 171

Case 2: Fired for Drinking the Wrong Brand of Beer 172

Case 3: Exposing Workers to Plutonium 172

Case 4: BP Workers Ill-Trained for Dangers 173

Case 5: Roger Boisjoly and the Challenger Disaster: Disloyal Employee or Courageous Whistle-Blower? 175

Case 6: The Reluctant Security Guard 177

Case 7: A Matter of Principle 180

Suggested Supplementary Readings 181

Chapter 4

DIVERSITY, DISCRIMINATION AND HARASSMENT IN THE WORKPLACE 184

INTRODUCTION 184

DIVERSITY AND AFFIRMATIVE ACTION

Tom L. Beauchamp, Affirmative Action Goals in Hiring and Promotion 194

N. Scott Arnold, Affirmative Action and the Demands of Justice 202

James P. Sterba, A Defense of Diversity Affirmative Action 212

George Sher, Diversity 219

SEXUAL HARASSMENT

Larry May, Sexual Harassment and Solidarity 227

Jaimie Leeser and William O’Donohue, Normative Issues in Defining Sexual Harassment 236

LEGAL PERSPECTIVES

United States Supreme Court, Local 28 of the Sheet Metal Workers’ International Association v. Equal Employment Opportunity Commission 244

United States Supreme Court, Barbara Grutter, Petitioner, v. Lee Bollinger et al. 249

Justice Sandra Day O’Connor, Opinion of the Court 249

Justice Clarence Thomas, Dissenting Opinion 253

Brief for Amici Curiae: 65 Leading American Businesses in Support of Respondents 255

United States Supreme Court, Meritor Savings Bank, FSB, v. Vinson et al. 258

United States Supreme Court, Teresa Harris, Petitioner, v. Forklift Systems Inc. 262

CASES

Case 1: How Would You Vote if You Lived in Michigan? 264

Case 2: Sing’s Chinese Restaurant 266

Case 3: Kaiser Aluminum and the United Steelworkers 266

Case 4: Promotions at Uptown Bottling and Canning Company 267

Case 5: Freedom of Expression in the Workplace 268

Case 6: “Harassment” at Brademore Electric 269

Suggested Supplementary Readings 270

Chapter 5

MARKETING AND THE DISCLOSURE OF INFORMATION 273

INTRODUCTION 273

ADVERTISING AND DISCLOSURE

Robert L. Arrington, Advertising and Behavior Control 284

David M. Holley, Information Disclosure in Sales 290

MARKETING

George G. Brenkert, Marketing and the Vulnerable 297

Carl Elliott, The Drug Pushers 307

LEGAL PERSPECTIVES

United States Court of Appeals for the First Circuit, Irving A. Backman v. Polaroid Corporation 317

United States Court of Appeals for the Seventh Circuit, B. Sanfield Inc. v. Finlay Fine Jewelry Corp. 320

United States Court of Appeals for the Second Circuit, Coca-Cola Company v. Tropicana Products Inc. 323

Supreme Court of California, Kasky v. Nike Inc. 325

The Pharmaceutical Research and Manufacturers of America, Code on Interactions with Health-Care Professionals 328

CASES

Case 1: More HorsePOWER? 331

Case 2: Advice for Sale: How Companies Pay TV Experts for On-Air Product Mentions 331

Case 3: Sales at World Camera and Electronics 336

Case 4: Hucksters in the Classroom 336

Case 5: Kraft Foods Inc.: The Cost of Advertising on Children’s Waistlines 339

Case 6: Marketing Malt Liquor 344

Case 7: Merck & Company: The Vioxx Recall 345

Suggested Supplementary Readings 350

Chapter 6

ETHICAL ISSUES IN FINANCE AND ACCOUNTING 352

INTRODUCTION 352

AUDITING AFTER ENRON

Ronald F. Duska and Brenda Shay Duska, Ethics in Auditing: The Auditing Function 355

Colin Boyd, The Structural Origins of Conflicts of Interest in the Accounting Profession 364

John R. Boatright, Individual Responsibility in the American Corporate System: Does

Sarbanes-Oxley Strike the Right Balance? 373

FINANCIAL SERVICES

John R. Boatright, Ethical Issues in Financial Services 387

Robert W. McGee, Applying Ethics to Insider Trading 395

LEGAL PERSPECTIVES

United States Supreme Court, United States, Petitioner, v. James Herman O’Hagan, 402

American Institute of Certified Public Accountants, Code of Professional Conduct 405

CASES

Case 1: An Auditor’s Dilemma 408

Case 2: Accounting for Enron 409

Case 3: Enron and Employee Investment Risk 414

Case 4: The Conventions of Lying on Wall Street 415

Case 5: Martha Stewart Living Omnimedia Inc.: An Accusation of Insider Trading 416

Suggested Supplementary Readings 421

Chapter 7

ETHICAL ISSUES REGARDING EMERGING TECHNOLOGIES 423

INTRODUCTION 423

INFORMATION AND THE WORLD WIDE WEB

Deborah G. Johnson, Privacy 428

Jeffery D. Smith, Internet Content Providers and Complicity in Human Rights Abuse 442

Richard T. De George, Intellectual Property and the Information Age 455

PHARMACEUTICAL PATENTS

Richard T. De George, Intellectual Property and Pharmaceutical Drugs: An Ethical Analysis 465

Patricia H. Werhane and Michael E. Gorman, Intellectual Property Rights, Moral

Imagination, and Access to Life-Enhancing Drugs 477

LEGAL PERSPECTIVES

United States Supreme Court, Sony Corp. v. Universal City Studios Inc. 486

United States District Court for the Northern District of California, A&M Records v. Napster 491

World Trade Organization, Agreement on Trade-Related Aspects of Intellectual Property Rights 498

World Trade Organization, Declaration on the TRIPS Agreement and Public Health 501

CASES

Case 1: Privacy Pressures: The Use of Web Bugs at HomeConnection 502

Case 2: Spiders at the Auction 504

Case 3: Ditto.com 505

Case 4: Patents and the African AIDS Epidemic 507

Case 5: Aventis: Partnerships for Health 509

Suggested Supplementary Readings 510

Chapter Eight

ETHICAL ISSUES REGARDING THE NATURAL ENVIROMENT 512

INTRODUCTION 512

BUSINESS AND ENVIRONMENTAL OBLIGATIONS

Norman E. Bowie, Morality, Money and Motor Cars 516

Denis G. Arnold and Keith Bustos, Business, Ethics, and Global Climate Change 523

Joseph DesJardins, Sustainability: Business’s New Environmental Obligation 533

Dennis R. Cooley, Genetically Modified Organisms and Business Duties 541

LEGAL PERSPECTIVES

United States Supreme Court, United States, Petitioner, v. Best Foods et al. 547

United States Supreme Court, Christine Todd Whitman, Administrator of Environmental

Protection Agency et al., Petitioners, v. American Trucking Associations, Inc., et al. 550

CASES

Case 1: Royal Caribbean: Exotic Promises and Toxic Waters 553

Case 2: Texaco in the Ecuadorean Amazon 555

Case 3: BP: Beyond Petroleum Spills? 558

Case 4: Maintaining a Seat at the Table: The Shell Group 562

Case 5: Interface Corporation and Sustainable Business 565

Case 6: Monsanto’s Roundup Ready Wheat 566

Suggested Supplementary Readings 569

Chapter 9

ETHICAL ISSUES IN INTERNATIONAL BUSINESS 571

INTRODUCTION 571

UNIVERSALISM, RELATIVISM, AND HUMAN RIGHTS

Norman E. Bowie, Relativism and the Moral Obligations of Multinational Corporations 577

Denis G. Arnold, The Human Rights Obligations of Multinational Corporations 583

Patricia H. Werhane, Exporting Mental Models: Global Capitalism in the Twenty-First Century 590

SWEATSHOPS AND BRIBERY

Ian Maitland, The Great Non-Debate over International Sweatshops 597

Denis G. Arnold and Norman E. Bowie, Sweatshops and Respect for Persons 608

David Hess and Thomas Dunfee, Taking Responsibility for Bribery: The Multinational

Corporation’s Role in Combating Corruption 624

LEGAL PERSPECTIVES

Supreme Court of Texas, Dow Chemical Company and Shell Oil Company v. Domingo Castro Alfaro et al. 633

United States Court of Appeals for the Ninth Circuit, Doe 1 v. Unocal 638

United Nations, Draft Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights (2003) 644

United Nations, Global Compact 647

CASES

Case 1: Foreign Assignment 648

Case 2: Facilitation or Bribery: Cultural and Ethical Disparities 650

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

Freedom in China 651

Case 4: Should Wal-Mart Do More?: A Case Study in Global Supply Chain Ethics 653

Case 5: adidas: Application of Standards of Engagement to Child Labor Dilemma 657

Case 6: Tackling HIV/AIDS: Unilever Tea Kenya 661

Suggested Supplementary Readings 663

Chapter 10

SOCIAL AND ECONOMIC JUSTICE 665

INTRODUCTION 665

THEORIES OF SOCIAL JUSTICE

John Rawls, An Egalitarian Theory of Justice 674

Robert Nozick, The Entitlement Theory 682

Peter Singer, Rich and Poor 686

COMPENSATION

Jeffrey Moriarty, Do CEOs Get Paid Too Much? 692

GLOBAL JUSTICE

Martin Wolf, Why Globalization Works 702

Thomas Pogge, Priorities of Global Justice 712

LEGAL PERSPECTIVE

United Nations, Universal Declaration of Human Rights 722

CASES

Case 1: Sapora’s Patriarchical Society 725

Case 2: Cocaine at the Fortune 500 Level 726

Case 3: CEO Compensation at Qwest 728

Case 4: Wages of Failure: The Ethics of Executive Compensation 729

Case 5: Covering the Costs of Health Care 731

Suggested Supplementary Readings 732

Read More Show Less

Preface

PREFACE:

Preface

We are delighted that Ethical Theory and Business has continued into the new millennium. The continued good fortune of this book is made possible by the many comments and suggestions that loyal readers have given us over more than a quarter of a century.

As the field of business ethics has matured, there has been an increased stability in the topics discussed. Nonetheless, the field is moving forward and we try to select readings that reflect those changes. Several changes simply update the discussion of topics in earlier editions. We do note that philosophers are taking empirical work in the field more seriously and that turn of events is reflected in some of the readings that we have chosen. Two of the areas where change is most noticeable are in the areas of employee rights and international business ethics. Advances in technology have increased the pressures on business to use that technology to improve the bottom line even if it comes at the cost of violating privacy. We have added an article on the electronic surveillance of employees and another article on the use of genetic testing in hiring decisions. In the international arena, discussions of bribery are not limited to the implications of the Foreign Corrupt Practices Act. In addition the alleged sweatshop conditions in factories that supply the developed world with cheap textiles and other goods have become a concern on college campuses and in the business press. Thoughtful people are also asking whether the western industrialized version of capitalism will work everywhere, and some even wonder if capitalism has a contribution to make in the less developedcountries.These issues are introduced in the chapter on international business ethics.

As we enter a new decade, we are not sure which topics in business ethics will receive the most attention. We might speculate that the present concern about genetically altered foods in Europe might become a concern in the U.S. as well. However, as the field develops, we pledge that we will continue to reflect those changes in future editions.

As in the past, several persons deserve special recognition for their assistance in preparing this edition. Three anonymous reviewers provided Prentice Hall and us with valuable suggestions for updating the book. In addition we are thankful for the comments of Denis Arnold, Thomas Carson, Michael DeWilde, Mark W. Matthews, and Barbara McGraw.

In this edition, we have been ably assisted by Padma Shah, Mark Gaspers, and Michael Hammer—three student research assistants who exceeded their duties in searching data bases, locating new materials, and suggesting many changes to make the book useful for students. Special thanks go to Scott Reynolds, a doctoral candidate in business ethics at the University of Minnesota, who has provided library research, editorial assistance, and obtained permission to reprint many of the articles in this edition. Permission for the other articles was obtained by Moheba Hanif, who worked on manuscript preparation from the beginning of the project and made manuscript corrections for five of the nine chapters.

Tom L. Beauchamp
Norman E. Bowie

Read More Show Less

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