Ethical Issues in Business: A Philosophical Approach / Edition 8 available in Paperback
This widely used business ethics book begins by introducing students/readers to moral reasoning. A collection of readings and cases from both philosophical literature and business articles apply ethical theory to real-life business situations. Well-known scandals involving companies like Enron, WorldCom, Tyco, Merrill Lynch, and Parmalat have increased public awareness of business ethics, underscored its importance, and ushered in a new era of increased corporate regulation and governance.
Now, more than ever, a student planning on entering the business world, and anyone working for a corporation, investing in stock, or even interacting with businesses will benefit from a basic understanding of business ethics.
About the Author
MARGARET CORDING is a doctoral candidate at the Darden Graduate School of Business Administration, University of Virginia, specializing in business ethics and strategy. She earned her MBA from the Wharton School, University of Pennsylvania. Previously she worked in financial services for over 15 years, most recently as a managing director for The Chase Manhattan Bank.
THOMAS DONALDSON is the Mark O. Winkelman Professor at the Wharton School of the University of Pennsylvania, where he is the director of the Wharton Ethics Program. From 1990 to 1996 he held the position of the John F. Connelly Professor of Business Ethics in the School of Business, Georgetown University. Professor Donaldson has written broadly in the area of business values and professional ethics including The Ties that Bind: A Social Contract Approach to Business Ethics, co-authored with Thomas W. Dunfee (Harvard University Business School Press, 1999), and Ethics in International Business (Oxford University Press, 1989).
PATRICA H. WERHANE is the Ruffin Professor of Business Ethics and senior fellow of the Olsson Center for Applied Ethics in the Darden Graduate School of Business Administration at the University of Virginia. She was formerly the Wirtenberger Professor of Business Ethics at Loyola University Chicago. She has been a Rockefellor Fellow at Dartmouth, Arthur Anderson Visiting Professor at the University of Cambridge, and Erskine Visiting Fellow at the University of Canterbury (New Zealand). Professor Werhane has published numerous articles and is the author or editor of 13 books including Persons, Rights andCorporations, and Adam Smith and His Legacy for Modern Capitalism. Her latest books are Moral Imagination and Managerial Decision-Making, and Organization Ethics for Health Care (with E. Spencer, A. Mills and M. Rorty) both with Oxford University Press. She is also founder and former editor-in-chief of Business Ethics Quarterly, the journal of the Society for Business Ethics
Table of Contents
PART ONE General Issues in Ethics
Section 1: The Controversy
CASE STUDY Norman Bowie and Stephanie Lenway, H.B. Fuller in Honduras: Street Children. Graduate School of Business of Columbia University but it looks like it was first published in 1993 in an earlier edition of this text by Prentice Hall.
Peter French, The Corporation as a Moral Person, American Philosophical Quarterly, 1979.
Milton Friedman, The Social Responsibility of Business is to increase its Profits, New York Times Magazine, 1970.
R. Edward Freeman, Stakeholder Theory of the Modern Corporation, No publisher indicated; used by permission of the author. 1984 is the date attributed by Wikipedia, but no citation. It may first have appeared in this text.
Section 2: General Issues in Ethics
CASE STUDY Arthur Kelly, Italian Tax Mores, Copyright 1977 by the author.
Norman Bowie, A Kantian Approach to Business Ethics, Blackwell Publishing, Ltd., 1999
Robert C. Solomon, Corporate Roles, Personal Virtues: An Aristotelean Approach to Business Ethics, Business Ethics Quarterly, 1992.
Andrew Gustafson, Utilitarianism and Business Ethics. No date or copyright information is provided by the author. (New)
John McVea, Ethics and Pragmatism: John Dewey’s deliberative approach, This is the article that has been accepted for publication but I don’t know by what journal yet. (New)
Patricia Werhane, The Very Idea of a Conceptual Scheme, Oxford University Press, 1999.
Section 3: Truth Telling
CASE STUDY Emily Mead and Patricia Werhane, Cynthia Cooper and WorldCom, U. of Va. Darden School Foundation, 2005. (New)
Immanuel Kant, Ethical Duties Towards Others
George Brenkert, Trust, Morality and International Business, Business Ethics Quarterly, 1998
Sissela Bok, Whistleblowing and Professional Responsibilities, New York University Education Quarterly, 1980
Albert Carr, Is Business Bluffing Ethical?
PART TWO: Property, Profit and Justice
Section I: Traditional Theories of Property and Profit
CASE STUDY Geeta Anand, How Drug’s Rebirth as Treatment for Cancer Fueled Price Rises, Wall Street Journal, Nov. 15, 2004
CASE STUDY T.W. Zimmer and Paul Preston, Plasma International, Southwestern Publishing Company, 1976
John Locke, The Justification of Private Property, (probably in the public domain, but from McMillan reprint, 1956)
Adam Smith, Benefits of the Profit Motive, (Reprint from U. of Chicago Press, 1976)
Karl Marx, Alienated Labor McGraw-Hill, 1963
Andrew Carnegie, Wealth, (In the public domain; North American Review, 1889)
Section 2: Contemporary Challenges to Property Rights
CASE STUDY Kristi Severance, Lisa Shapiro and Pat Werhane, W.R. Grace & Co. and the Neemix Patent, University of Virginia Darden School Foundation, 1997 (New)
Lester C. Thurow, Needed: A New System of Intellectual Property Rights, Harvard Business Review, 1997
Deborah G. Johnson, Privacy, (From Computer Ethics, Prentice Hall, 2001) (New)
Section 3: Justice
CASE STUDY Joanne B. Ciulla, The Oil Rig, University of Richmond, 1990
John Rawls, Distributive Justice, Harper and Row, 1967
Robert Nozick, The Entitlement Theory, Basic Books, 1974
Michael Walzer, Complex Equality, Basic Books, 1983
PART THREE: Corporations, Persons, and Morality
Section 1: The Role of Organizational Values
CASE STUDY Business Enterprise Trust, Merck & Co., The Business Enterprise Trust, 1991.
Amartya Sen, Does Business Ethics Make Economic Sense? Business Ethics Quarterly, 1993.
Robert H. Frank, Can Socially Responsible Firms Survive in a Competitive Environment? Russell Sage Foundation, 1996.
Lynn Sharp Paine, Managing for Organizational Integrity, Harvard Business School Publishing Corp., 1994.
Bowen H. McCoy, The Parable of the Sadhu., Harvard Business School Publishing Corp., 1983.
Section 2: Values and the Virtuous Manager
CASE STUDY Stewart Hamilton, The Enron Collapse, International Institute for Management Development, (IMD) 2003.
Robert Jackall, Moral Mazes: Bureaucracy and Managerial Work, Harvard Business School Publishing Corp., 1983.
Frederick Bird and James Waters, The Moral Muteness of Managers, California Management Review; Regents of the University of California, 1989.
(No Attributed Author) Legislative Summary of the Sarbanes-Oxley Act, Ernst & Young, 2002 (New)
John C. Coffee, Jr., Limited Options, Legal Affairs, 2003.
Section 3: Issues in Employment
CASE STUDY Mark Skertic, The Pension Plan Crisis, Chicago Tribune, 2005. (New)
Barbara Rose, Unkept promises hit retirees, Chicago Tribune, 2005. (New)
CASE STUDY Barbara Ehrenreich, Working at Walmart, Henry Holt & Co., 2001 (New)
Tara Radin and Patricia Werhane, Employment at Will, Employee Rights, and Future Directions for Employment, Business Ethics Quarterly, 2003.
Richard A. Epstein, In Defense of the Contract at Will, University of Chicago Law Review, 1984
Rosabeth Moss Kanter, Employability Security, Basic Books, 1977.
Jeffrey Pfeffer, People, Profits and Perspective, Harvard Business School Press, 1998. (New)
Section 4: Diversity
CASE STUDY Thomas Dunfee and Diana Robertson, Foreign Assignment, unpublished. (New)
Judy B. Rosener, Ways Women Lead, Harvard Business Review, 1990. (New)
Peggy McIntosh, White Privilege and Male Privilege: A Personal Account of Coming to See Correspondences Through Work in Women’s Studies, Copyright retained by author.
PART FOUR: International Business
Section 1: Ethical Relativism
CASE STUDY R.S. Moorthy, Richard T. De George, Thomas Donaldson, William J. Ellos, S.J., Robert C. Solomon, Robert B. Textor, “What Price Safety” and “Facing Face”, Motorola University Press, 1998 (New)
James Rachels, The Challenge of Cultural Relativism, McGraw-Hill, 1998.
Thomas Donaldson and Thomas Dunfee, A Social Contracts Approach to Business Ethics, Business and Society Review, 2000.
The United Nations Declaration of Human Rights, (No publisher listed)
Section 2: Business Values Away from Home
CASE STUDY Barnaby J. Feder, Alchemist Dream Come True, New York Times, 1995 (New)
CASE STUDY Edwin M. Hartman, Gift Giving and the African Elder, (unpublished; author retains rights) (New)
Richard T. De George, International Business Ethics and Incipient Capitalism: A Double Standard?, (Unpublished; author retains rights)
Thomas Donaldson, Values in Tension Away From Home, Harvard Business Review, 1996.
PART FIVE: Contemporary Business Themes
Section 1: Marketing
CASE STUDY Lee Fennel, Gretchen A. Kalsow, and June West, Fingerhut’s Price Stategy, University of Virginia Darden School Foundation, 2001.
Roger Crisp, Persuasive Advertising, Autonomy and the Creation of Desire, Journal of Business Ethics, Reidel, 1987
Section 2: The Environment
CASE STUDY Emily Mead, Andrew Wicks, and Patricia Werhane, ExxonMobil and the Chad/Cameroon Pipeline, University of Virginia Darden School Foundation, 2003. (New)
Julian L. Simon, Scarcity or Abundance? W. W. Norton and Company, 1994
Steven Kelman, Cost Benefit Analysis: An Ethical Critique, American Institute for Public Policy Research, 1981
William McDonough, A Boat for Thoreau, Business Ethics, 1998 (New)
Section 3: Globalization
Mark Baker, Laura Hartman and Bill Shaw, Global Profits, Global Headaches, Publisher, if any, not listed. Copyright presumably held by authors, 1999. (New)
C. K. Prahalad, Marketing from the Bottom of the Pyramid, Wharton School Publishing, 2005 (New)
Ian Maitland, The Great Non-Debate Over International Sweatshops, British Academy of Management Annual Conference Proceedings, September, 1997 (New)
Ethical Issues in Business was first published more than two decades ago, in 19'79. Since then the field of business ethics has grown into an academic discipline bristling with research and practical implications for managers. Textbooks and research have multiplied. In 1979, Ethical Issues in Business was one of only three textbooks in the field. Now at least 50 are available. Along with the growth of course offerings and college teaching materials, an explosion of new articles, cases, and journals has occurred. Meanwhile, outside colleges and universities, hundreds of business firms have now created positions of "corporate ethics officer," and thousands more have instituted ethics training programs for managers and employees. The seventh edition reflects these dramatic changes that the field has undergone.
Some theoretical perspectives preserve their importance over the decades. Indeed, many are foundational materials for the study of business ethics. The insights of Adam Smith and John Locke about markets and human rights, or the radical claims made by Karl Marx that capitalism affects the minds of its participants, are no less relevant today than they were in earlier centuries. You will find those perspectives included in this edition, just as in the earlier ones. Yet other issues are clearly timebound. When the last edition appeared, the hot issue of business conversation was the moral and legal obligations of U.S. tobacco companies, apparel companies' use of overseas "sweat shops," and a financial crisis in Asia.
Since the publication of the sixth edition new events have posed new ethical challenges. Since then new technology has challengedtraditional views of copyright law, resulting in lawsuits between Napster and the record companies. The dramatic stock price erosion of the U.S. "dot.com" companies has coincided with a-debate over privacy and marketing issues. Ford Motor Company and Bridgestone/Firestone find themselves in a legal and public relations dilemma as a result of hundreds of deaths allegedly due to product defects. Transnational corporations continue to face thorny ethical issues as they increasingly do business in countries with significantly different value systems. Further, in the increasingly competitive commercial environment of global business, corporate leaders have been faced with new challenges in employment, corporate restructuring, and training. Readings that focus on some of the ethical issues raised by these new kinds of challenges are included in this seventh edition.
The present edition, like earlier ones, has not been simply the product of its editors, but owes greatly to those whose suggestions, criticism, and editorial assistance made it a better book. We are indebted to Prentice Hall reviewers John Mundy, University of Nevada, Las Vegas, and Benjamin A. Petty, Southern Methodist University for their constructive comments, and we especially want to thank Nicholas Dew, Thomas Dunfee, Ronald Duska, R. Edward Freeman, Mary Hamilton, and Henry Tulloch for their helpful revision suggestions. Thanks also go to Karen Musselman and Erin Becker for their excellent organizational and editorial skills.T.D.