Business and Society

1993 Pages·2012·7.8 MB·English

CaseMatrix
Thiscasematrixprovidesalistingofthecasesinthebackofthebookandshowshowtheycanaccompanythetext
chapters.Agivencasemaybeappropriateformultiplechapters.
Page CaseTitle
771 Case1 Wal-Mart:TheMainStreetMerchantofDoom
784 Case2 TheBodyShop:PursuingSocialandEnvironmentalChange
790 Case3 TheBodyShop'sReputationisTarnished
797 Case4 TheBodyShopInternationalPLC(1998–2007)
802 Case5 TheHPPretextingPredicament
805 Case6 DickGrassoandtheNYSE:IsItaCrimetoBePaidWell?
808 Case7 TheWaiterRule:WhatMakesforaGoodCEO?
810 Case8 DoasISay,NotasIDid
812 Case9 Say-on-Pay
814 Case10 MarthaStewart:FreeTradingorInsiderTrading?
820 Case11 TheCaseoftheKillerPhrases(A)
823 Case12 ToHireorNottoHire
824 Case13 DoesCheatinginGolfPredictCheatinginBusiness?
827 Case14 TheTravelExpenseBillingControversy
831 Case15 PhantomExpenses
832 Case16 FamilyBusiness
833 Case17 ShouldBusinessHireIllegalImmigrants?
837 Case18 ThisLittlePiggy:ShouldtheXeno-PigMakeIttoMarket?
840 Case19 ToxicTacos?TheCaseofGeneticallyModifiedFoods
842 Case20 Something’sRotteninHondo
843 Case21 SweetenerGetsBitterReaction
845 Case22 Nike,Inc.,andSweatshops
855 Case23 CokeandPepsiinIndia:Issues,Ethics,andCrisisManagement
861 Case24 Chiquita:AnExcruciatingDilemmabetweenLifeandLaw
865 Case25 AstroturfLobbying
868 Case26 TheEthicsofEarmarks
871 Case27 DTC:ThePill-PushingDebate
873 Case28 EasyCreditHardFuture
876 Case29 BigPharma’sMarketingTactics
883 Case30 FirestoneandFord:TheTireTreadSeparationTragedy
892 Case31 McDonald’s:TheCoffeeSpillHeard ’RoundtheWorld
897 Case32 IstheCustomerAlwaysRight?
901 Case33 TheHudsonRiverCleanupandGE
907 Case34 Safety?WhatSafety?
908 Case35 LittleEnoughorTooMuch?
910 Case36 TheBetaseronDecision(A)
912 Case37 AMoralDilemma:HeadversusHeart
913 Case38 Wal-MartandItsAssociates:EfficientOperatororNeglectfulEmployer?
923 Case39 DeadPeasantLifeInsurance
926 Case40 TheCaseoftheFiredWaitress
929 Case41 PizzaRedlining:EmployeeSafetyorDiscrimination?
933 Case42 After-EffectsofAfter-HoursActivities:TheCaseofPeterOiler
935 Case43 TattoosandBodyJewelry:EmployerandEmployeeRights
937 Case44 IsHiringontheBasisof“Looks”UnfairorDiscriminatory?
941 Case45 WhenManagementCrossestheLine
942 Case46 TheCaseofJudy
Chapter Number
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
BUSINESS & SOCIETY
Ethics and Stakeholder Management
Seventh Edition
Archie B. Carroll
University of Georgia
Ann K. Buchholtz
University of Georgia
Australia Canada Mexico Singapore Spain UnitedKingdom UnitedStates
Business& Society:Ethicsand ©2009,2006South-Western,apartofCengageLearning
StakeholderManagement,7thEdition
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Preface
Business & Society: Ethics and Stakeholder Management, Seventh Edition,
employs a stakeholder management framework that emphasizes business’s
social and ethical responsibilities to external and internal stakeholder
groups. A managerial perspective is embedded within the book’s dual themes of
business ethics and stakeholder management. The ethics dimension is central
because it has become increasingly clear that ethical or moral considerations are
woven into the fabric of the public issues that organizations face. Economic and
legal issues are inevitably present, too. However, these aspects are treated more
directlyinotherbusinessadministrationcourses.
The stakeholder management perspective is essential because it requires
managers to (1) identify the various groups or individuals who have stakes in
the firm or its actions, decisions, and practices, and (2) incorporate those stake-
holders’concernsintothefirm’sstrategicplansanddailyoperations. Stakeholder
management is an approach that increases the likelihood that decision makers
will integrate ethical wisdom with managementwisdomin all that they do.
As this edition goes to press, we are beginning to reach some closure on the
fraud and ethics scandals that have dominated the business news since the early
2000s. The Enron scandal and subsequent scandals involving such firms as
WorldCom,Tyco,ArthurAndersen,Adelphia,GlobalCrossing,andHealthSouth
constituted an ethical tsunami. Most of the trials of the CEOs and top executives
of these firms have concluded, and a number of them are currently serving time
behind bars. Thehorrificattacks ontheWorld TradeCenter andthePentagonon
September 11, 2001, are still in our memories—especially for their relevance to
such topics as crisis management, global ethics, the business–government
relationship,andimpactsonbothinternalandexternalstakeholders.Thesemajor
events will be with us forever, and weurge readers tokeep in mind the extent to
which our world is now changed as they read through the book and consider its
content.
Applicable Courses for Text
This text is appropriate for college and university courses that carry such titles as
BusinessandSociety;BusinessandItsEnvironment;BusinessEthics;Businessand
Public Policy; Social Issues in Management; Business, Government, and Society;
and Stakeholder Management. This book is appropriate for either a required or
elective course seeking to meet the standards (revised January 31, 2007) of the
Association to Advance Collegiate Schools of Business (AACSB International).
The book has been used successfully in both undergraduate and graduate
courses.
iii
iv Preface
Though the AACSB does not require any specific courses, its standards
indicatethattheschool’scurriculumshouldresultinundergraduateandmaster’s
degree programs that contain topics covered in this textbook. For an under-
graduate degree program, learning experiences should be provided in such
general knowledge and skill areas as: ethical understanding and reasoning abilities
andmulticulturalanddiversityunderstanding.Forbothundergraduateandmaster’s
degree programs, learning experiences should be provided in such general
knowledge and skill areas as ethical and legal responsibilities in organizations and
societyanddomesticandglobalenvironmentsofbusiness.
Statedanotherway,thebookisidealforcoverageofperspectivesthatformthe
context for business: ethical and global issues; the influence of political, social,
legal and regulatory, environmental, and technological issues; and the impact of
diversity on organizations. The book provides perspectives on business, society,
and ethics in the United States as well as in Europe and other parts of the world:
versionsofthepreviouseditionwerepublishedinCanadaandinChina.Aspecial
effort has been made to include some examples from different parts of the world
toillustratemajorpoints.
Objectives in Relevant Courses
Depending on the placement of a course in the curriculum or the individual
instructor’sphilosophy orstrategy,thisbookcouldbeusedforavarietyofobjec-
tives.Thecoursesforwhichitisintendedincludeseveralessentialgoals.
1. Students should be made aware of the expectations and demands that
emanatefromstakeholdersandareplacedonbusinessfirms.
2. As prospective managers, students need to understand appropriate business
responses and management approaches for dealing with social, political,
environmental,technological,andglobalissuesandstakeholders.
3. An appreciation of ethical issues and the influence these issues have on
society, management decision making, behavior, policies, and practices is
important.
4. The broad question of business’s legitimacy as an institution in a global
society is at stake and must be addressed from both a business and societal
perspective.These topics are vital for business to build trust with society and
allstakeholders.
5. The increasing extent to which social, ethical, public, and global issues must
beconsideredfromastrategicperspectiveiscriticalinsuchcourses.
New to the Seventh Edition
This Seventh Edition has been updated and revised to reflect the most recent
research, laws, cases, and examples appropriate for courses in which it is used.
Materialinthisneweditionincludes:
Preface v
• Newresearch,surveys,andexamplesthroughoutallthechapters
• Coverage throughout the text on the most recent ethics scandals and their
influenceonbusiness,society,organizations,andpeople
• Chapter on “Corporate Governance: Foundational Issues” moved to Part 2 of
thebooktoemphasizeitsescalatingimportanceinrecentyears
• DiscussionofrecentdevelopmentswiththeSarbanes-OxleyActandtheAlien
TortClaimsAct,twolawswithsignificantimportancetomanagerstoday
• New “Ethics in Practice Cases” and “Search the Web” features in each
chapter
• Forty-sixend-of-textcases:
(cid:2) Twelvenewcases,includingthoseonHewlett-Packard(HP),Say-on-Pay,
Should Business Hire Illegal Aliens?, Chiquita Bananas, Coke & Pepsi in
India, the Credit Card Industry, and Tatoo/Body Art as Employee
Rights?
(cid:2) Twentytworevisedandupdatedcases
(cid:2) Twelvecasescarriedoverfromthepreviousedition
• A Case Matrix inside the front cover that suggests appropriate chapter uses
forend-of-textcases
• An Ethics in Practice Case Matrix inside the back cover that recommends
chapter uses for “Ethics in Practice Cases” that appear in the various
chapters
• Favorite cases from past editions are included in the Instructor’s Manual with
TestBanksothattheymaybeduplicatedandusedinclass
• ArevisedInstructor’sManual
“ ”
Ethics in Practice Cases
Continuing in this Seventh Edition are in-chapter features titled “Ethics in
Practice”Cases.Interspersedthroughoutthechapters,theseshortfeaturespresent
either(1)actualethicalsituationsfacedbycompaniesormanagersor(2)dilemmas
faced personally in the work experiences of our former students. These latter
types of cases are real-life situations actually confronted by our students in their
full-timeandpart-timeworkexperiences.Thestudentscontributedthesecaseson
a voluntary basis, and we are pleased they gave us permission to use them. We
would like to acknowledge them for their contributions to the book. Instructors
may wish to use these as mini-cases for class discussion on a daily basis when a
lengthiercaseisnotassigned.
vi Preface
“ ”
Search the Web Features
The“SearchtheWeb”insertsineachchapterhighlightanimportantandrelevant
webpage or pages that augment each chapter’s text material. The “Search the
Web” feature may highlight a pertinent organization and its activities or special
topics covered in the chapter. These features permit students to explore topics in
more detail. Most of the websites have links to other related sites. The use of
search engines to find other relevant materials is encouraged because the Web
nowcatalogsawealthofrelevantinformationtothetexttopicsandcases.
Structure of the Book
PART 1. BUSINESS, SOCIETY, AND
STAKEHOLDERS
Part 1 of the book provides an introductory coverage of pertinent business,
society, and stakeholder topics and issues. Because most courses for which this
book is intended evolved from the issue of corporate social responsibility, this
concept is treated early on. Part 1 documents and discusses how corporate social
responsiveness evolved from social responsibility and how these two matured
into a concern for corporate social performance and corporate citizenship. The
stakeholdermanagementconceptisalsogivenearlycoveragebecauseitprovides
awayofthinkingaboutalltopicsinthebook.
PART 2. CORPORATE GOVERNANCE AND
STRATEGIC MANAGEMENT ISSUES
The second part of the text addresses corporate governance and strategic
managementforstakeholderresponsiveness.Thepurposeofthispartistodiscuss
management considerations for dealing with the issues discussed throughout the
text. Corporate governance is covered early because in the past decade this topic
has been identified to be vital for effective strategic management. The strategic
management perspective is useful because these issues have impacts on the total
organization and are a serious concern for many upper-level managers. Special
treatment is given to corporate public policy, issues and crisis management, and
publicaffairsmanagement.
Some instructors may elect to cover Part 2 later in their courses. Part 2 could
easily be covered after Part 4 or 5. This option would be most appropriate for
thoseusingthebookforabusinessethicscourseorforthosewhodesiretospend
lesstimeonthegovernance,strategy,andmanagementperspectives.
PART 3. BUSINESS ETHICS AND MANAGEMENT
Four chapters dedicated to business ethics topics are presented in Part 3. In real
life, business ethics cannot be separated from the full range of external and
Preface vii
internal stakeholder concerns. Part 3 focuses on business ethics fundamentals,
personal and organizational ethics, business ethics and technology, and ethical
issuesintheglobalarena.
PART 4. EXTERNAL STAKEHOLDER ISSUES
Vital topics here include business relations with government, consumers, the
environment, and the community. In each of these topic areas we see social and
ethical issues that dominate business today. The business–government
relationship is divided into a chapter on regulatory initiatives for monitoring
business practices and another chapter addressing business attempts to influence
government—primarily through lobbying. Consumers, the environment, and
communitystakeholdersarethentreatedinseparatechapters.
PART 5. INTERNAL STAKEHOLDER ISSUES
The primary stakeholders covered in this part are employees. Here we consider
workplace issues and the key themes of employee rights, employment discrimi-
nation, and affirmative action. Two chapters address the changing social contract
betweenbusinessandemployeesandtheurgenttopicofemployeerights.Afinal
chapter treats the important topic of employment discrimination and affirmative
action. Owner stakeholders could be seen as internal stakeholders, but we have
decidedtocovertheminPart2alongsidethesubjectofcorporategovernance.
CASE STUDIES AT END OF TEXT
The forty-six cases placed at the end of the book address a wide range of topics
and decision situations. The cases are of varying length. Twelve of the cases are
newtotheSeventhEdition;amongthesearesomelongercases.Twenty-twoother
cases have been updated. All the cases are intended to provide instructors and
students with real-life situations within which to further analyze course issues
andtopicscoveredthroughoutthebook.Thecaseshaveintentionallybeenplaced
at the end of the text material so that instructors will feel freer to use them with
any text material they desire. The Case Matrix that appears inside the front cover
providessuggestedchapterusageforeachofthecases.
Many of the cases in this book have ramifications that spill over into several
areas, and almost all of them may be used for different chapters. Preceding the
cases is aset ofguidelinesforcaseanalysis that theinstructormay wish touse in
placeof(orinadditionto)thequestionsthatappearattheendofeachcase.
Somecasesfromprevious editionshavebeenmovedtothe Instructor’sManual
withTestBank.Ifinstructorswishtousesomeoftheirfavoritepreviouscases,you
maycopyanddistributetheminclassorcontactyourlocalrepresentativetohave
acustomeditioncreatedtoincludethecasesyouhaveselected.