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
Domenec Mele
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. Banon Gomis, Manuel Guillen 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: Nestle’s Infant Formula 624
James E. Post
TransAuto Corporation Trade-offs 629
Rewritten by Mark S. Schwartz
Sony Online Entertainment: EverQuest® 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 Challenges 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
