Stakeholder Management

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Business & Society Ethics, Sustainability, and Stakeholder Management

TENTH EDITION

ARCH I E B . CARROL L University of Georgia

J I L L A . BROWN Bentley University

ANN K . BUCHHOLTZ Rutgers University

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

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Business & Society: Ethics, Sustainability, and Stakeholder Management, Tenth Edition

Archie B. Carroll, Jill A. Brown, and Ann K. Buchholtz

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Printed in the United States of America Print Number: 01 Print Year: 2016

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Brief Contents

Preface xvii About the Authors xxv

PART 1 Business, Society, and Stakeholders 1

CHAPTER 1 The Business and Society Relationship 2

CHAPTER 2 Corporate Social Responsibility, Citizenship, and Sustainability 30

CHAPTER 3 The Stakeholder Approach to Business, Society, and Ethics 71

PART 2 Corporate Governance and Strategic Management Issues 101

CHAPTER 4 Corporate Governance: Foundational Issues 102

CHAPTER 5 Strategic Management and Corporate Public Policy 135

CHAPTER 6 Risk, Issue, and Crisis Management 155

PART 3 Business Ethics and Leadership 183

CHAPTER 7 Business Ethics Essentials 184

CHAPTER 8 Managerial and Organizational Ethics 224

CHAPTER 9 Business Ethics and Technology 272

CHAPTER 10 Ethical Issues in the Global Arena 305

PART 4 External Stakeholder Issues 341

CHAPTER 11 Business, Government, and Regulation 342

CHAPTER 12 Business Influence on Government and Public Policy 370

CHAPTER 13 Consumer Stakeholders: Information Issues 395

CHAPTER 14 Consumer Stakeholders: Product and Service Issues 432

CHAPTER 15 Sustainability and the Natural Environment 457

CHAPTER 16 Business and Community Stakeholders 491

PART 5 Internal Stakeholder Issues 521

CHAPTER 17 Employee Stakeholders and Workplace Issues 522

CHAPTER 18 Employee Stakeholders: Privacy, Safety, and Health 551

CHAPTER 19 Employment Diversity and Discrimination 580

Cases 611 Subject Index 748 Name Index 763

iii Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

 

 

Contents

Preface xvii About the Authors xxv

PART 1 Business, Society, and Stakeholders 1

CHA P T E R 1

The Business and Society Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.1 Business and Society 5 1.1a Business Defined 5 1.1b Society Defined 6

1.2 Society as the Macroenvironment 6

1.3 A Pluralistic Society 7 1.3a Pluralism Has Strengths and Weaknesses 8 1.3b Multiple Publics, Systems, and Stakeholders 8

1.4 A Special-Interest Society 9

1.5 Business Criticism and Corporate Response 10 1.5a Factors in the Social Environment 10 1.5b A General Criticism of Business: Use and Abuse of Power 17 1.5c Balancing Power with Responsibility 20 1.5d Business’s Response: Concern and a Changing Social Contract 20

1.6 Focus of the Book 22 1.6a Managerial Approach 22 1.6b Business Ethics Theme 23 1.6c Sustainability Theme 23 1.6d Stakeholder Management Theme 24

1.7 Structure of the Book 24

Summary 26 Key Terms 26 Discussion Questions 27 Endnotes 27

CHA P T E R 2

Corporate Social Responsibility, Citizenship, and Sustainability . . . . . . . . . . . . . . . . . 30

2.1 Corporate Social Responsibility as a Concept 31 2.1a Historical Perspectives on CSR 32 2.1b Adaptations of the Economic Model 33 2.1c Evolving Meanings of CSR 35 2.1d A Four-Part Definition of CSR 35 2.1e The Pyramid of Corporate Social Responsibility 39 2.1f CSR in Practice 42

2.2 Traditional Arguments against and for CSR 44 2.2a Arguments against CSR 44 2.2b Arguments in Support of CSR 45 2.2c The Business Case for CSR 46

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2.3 Ages and Stages of CSR 48

2.4 CSR Greenwashing 49

2.5 Political CSR 50

2.6 Corporate Social Responsiveness 50

2.7 Corporate Social Performance 51 2.7a Carroll’s CSP Model 51

2.8 Corporate Citizenship 53 2.8a Broad and Narrow Views 54 2.8b Stages of Corporate Citizenship 54 2.8c Global Corporate Citizenship 56 2.8d CSR and Corporate Citizenship Awards by Business Media 57

2.9 The Social Performance and Financial Performance Relationship 57 2.9a Three Perspectives on the Social–Financial–Reputation Relationship 58

2.10 Sustainability—Profits, People, Planet 61 2.10a Creating Shared Value and Conscious Capitalism 62

2.11 Socially Responsible, Sustainable, Ethical Investing 63

Summary 64 Key Terms 65 Discussion Questions 66 Endnotes 66

CHA P T E R 3

The Stakeholder Approach to Business, Society, and Ethics . . . . . . . . . . . . . . . . . . . . . 71

3.1 Origins of the Stakeholder Concept 72 3.1a What Is the Stake in Stakeholder? 72 3.1b What Is a Stakeholder? 72

3.2 Who Are Business’s Stakeholders? 73 3.2a Three Views of the Firm: Production, Managerial, and Stakeholder 74 3.2b Primary and Secondary Stakeholders 75 3.2c Important Stakeholder Attributes: Legitimacy, Power, Urgency 76

3.3 Stakeholder Approaches: Strategic, Multifiduciary, and Synthesis 78

3.4 Three Values of the Stakeholder Model 80 3.4a Descriptive Value 80 3.4b Instrumental Value 80 3.4c Normative Value 80

3.5 Stakeholder Management: Five Key Questions 80 3.5a Who Are the Organization’s Stakeholders? 81 3.5b What Are Our Stakeholders’ Stakes? 85 3.5c What Opportunities and Challenges Do Our Stakeholders Present? 86 3.5d What Responsibilities Does a Firm Have toward Its Stakeholders? 87 3.5e What Strategies or Actions Should Management Take? 88

3.6 Effective Stakeholder Management 91 3.6a Stakeholder Thinking 91 3.6b Developing a Stakeholder Culture 91 3.6c Stakeholder Management Capability 92 3.6d Stakeholder Engagement 93 3.6e The Stakeholder Corporation 95 3.6f Principles of Stakeholder Management 96

3.7 Strategic Steps toward Global Stakeholder Management 96 3.7a Implementation 96

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Summary 97 Key Terms 97 Discussion Questions 98 Endnotes 98

PART 2 Corporate Governance and Strategic Management Issues 101

CHA P T E R 4

Corporate Governance: Foundational Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

4.1 Legitimacy and Corporate Governance 102 4.1a The Purpose of Corporate Governance 104 4.1b Components of Corporate Governance 104

4.2 Problems in Corporate Governance 106 4.2a The Need for Board Independence 107 4.2b Issues Surrounding Compensation 107 4.2c The Governance Impact of the Market for Corporate Control 111 4.2d Insider Trading 112

4.3 Improving Corporate Governance 114 4.3a Legislative Efforts 114 4.3b Changes in Boards of Directors 115 4.3c Board Diversity 115 4.3d Outside Directors 116 4.3e Use of Board Committees 116 4.3f The Board’s Relationship with the CEO 117 4.3g Board Member Liability 118

4.4 The Role of Shareholders 120 4.4a Shareholder Democracy 120

4.5 The Role of the SEC 121

4.6 Shareholder Activism 122 4.6a The History of Shareholder Activism 122 4.6b Shareholder Resolutions 123 4.6c Shareholder Lawsuits 124

4.7 Investor Relations and Shareholder Engagement 124

4.8 An Alternative Model of Corporate Governance 125

Summary 127 Key Terms 128 Discussion Questions 129 Endnotes 129

CHA P T E R 5

Strategic Management and Corporate Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

5.1 Strategic Management and Corporate Public Policy 135 5.1a Relationship of Ethics to Strategic Management 136

5.2 Four Key Strategy Levels 137 5.2a Four Strategy Levels Described 137 5.2b Emphasis on Enterprise-Level Strategy 138

5.3 The Strategic Management Process 143 5.3a Strategic Corporate Social Responsibility 144 5.3b Measuring Sustainable Corporate Performance 145

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5.4 Public Affairs as a Part of Strategic Management 149

5.5 The Corporate Public Affairs Function Today 149 5.5a PA’s Place at the Table 150 5.5b Future of Corporate PA in the 21st Century 150

Summary 151 Key Terms 151 Discussion Questions 152 Endnotes 152

CHA P T E R 6

Risk, Issue, and Crisis Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

6.1 The Relationships between Risk, Issue, and Crisis Management 156

6.2 Risk Management 156 6.2a Risk Management and Sustainability 157

6.3 Issue Management 158 6.3a A Portfolio Approach 159 6.3b Issue Definition and the Issue Management Process 159 6.3c Issue Development Process 166 6.3d Issue Management in Practice 167

6.4 Crisis Management 168 6.4a The Nature of Crises 169 6.4b Managing Business Crises 172 6.4c Crisis Communications 174 6.4d Successful Crisis Management 176

Summary 177 Key Terms 178 Discussion Questions 178 Endnotes 178

PART 3 Business Ethics and Leadership 183

CHA P T E R 7

Business Ethics Essentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

7.1 The Public’s Opinion of Business Ethics 187 7.1a Are the Media Reporting Business Ethics More Vigorously? 188 7.1b Is It Society That Is Changing? 189

7.2 Business Ethics: Some Basic Concepts 189 7.2a Descriptive versus Normative Ethics 190 7.2b The Conventional Approach to Business Ethics 191 7.2c Ethics and the Law 194 7.2d Making Ethical Judgments 195

7.3 Ethics, Economics, and Law—A Venn Model 197

7.4 Three Models of Management Ethics 199 7.4a Immoral Management 199 7.4b Moral Management 201 7.4c Amoral Management 204 7.4d Two Hypotheses Regarding the Models of Management Morality 207

7.5 Making Moral Management Actionable 209

7.6 Developing Moral Judgment 209 7.6a Levels of Moral Development 210 7.6b Different Sources of a Person’s Values 213

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7.7 Elements of Moral Judgment 217 7.7a Moral Imagination 217 7.7b Moral Identification and Ordering 217 7.7c Moral Evaluation 217 7.7d Tolerance of Moral Disagreement and Ambiguity 218 7.7e Integration of Managerial and Moral Competence 218 7.7f A Sense of Moral Obligation 218

Summary 219 Key Terms 220 Discussion Questions 220 Endnotes 221

CHA P T E R 8

Managerial and Organizational Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224

8.1 Ethics Issues Arise at Different Levels 225 8.1a Personal Level 225 8.1b Managerial and Organizational Levels 226 8.1c Industry or Profession Level 227 8.1d Societal and Global Levels 227

8.2 Managerial Ethics and Ethical Principles 228 8.2a Principles Approach to Ethics 228 8.2b Ethical Tests Approach to Decision Making 237

8.3 Managing Organizational Ethics 240 8.3a Factors Affecting the Organization’s Moral Climate 241 8.3b Improving the Organization’s Ethical Culture 243

8.4 Best Practices for Improving an Organization’s Ethics 245 8.4a Top Management Leadership (Moral Management) 246 8.4b Effective Communication of Ethical Messages 249 8.4c Ethics and Compliance Programs and Officers 249 8.4d Setting Realistic Objectives 252 8.4e Ethical Decision-Making Processes 252 8.4f Codes of Ethics or Conduct 254 8.4g Disciplining Violators of Ethics Standards 255 8.4h Ethics “Hotlines” and Whistle-Blowing Mechanisms 257 8.4i Business Ethics Training 257 8.4j Ethics Audits and Risk Assessments 260 8.4k Corporate Transparency Policies 260 8.4l Board of Directors Leadership and Oversight 261

8.5 Behavioral Ethics—Toward a Deeper Understanding 262

8.6 Moral Decisions, Managers, and Organizations 264

Summary 265 Key Terms 265 Discussion Questions 266 Endnotes 266

CHA P T E R 9

Business Ethics and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272

9.1 The New World of Big Data 273 9.1a Social Media 273 9.1b Surveillance 274

9.2 Technology and the Technological Environment 274

9.3 Characteristics of Technology 275

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9.3a Benefits, Costs, and Challenges 276

9.4 Technology and Ethics 277

9.5 Information Technology 278 9.5a E-Commerce as a Pervasive Technology 278 9.5b Ongoing Issues in E-Commerce Ethics 279 9.5c Invasion of Consumer Privacy via E-Commerce 279 9.5d The Workplace and Computer Technology 286

9.6 Biotechnology 291 9.6a Bioethics 291 9.6b Genetic Engineering 292 9.6c Genetically Modified Organisms (GMOs) 296

Summary 299 Key Terms 299 Discussion Questions 300 Endnotes 300

CHA P T E R 1 0

Ethical Issues in the Global Arena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

10.1 Business Challenges in a Global Environment 306

10.2 Ethical Issues in the Global Business Environment 308 10.2a Questionable Marketing and Plant Safety Practices 309 10.2b Human Rights, Sweatshops, and Labor Abuses 312 10.2c Corruption, Bribery, and Questionable Payments 318

10.3 Improving Global Business Ethics 325 10.3a Balancing and Reconciling the Ethics Traditions of Home and Host Countries 326 10.3b Strategies for Improving Global Business Ethics 328 10.3c Corporate Action against Corruption 334

Summary 334 Key Terms 335 Discussion Questions 335 Endnotes 336

PART 4 External Stakeholder Issues 341

CHA P T E R 1 1

Business, Government, and Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342

11.1 The Pendulum of Government’s Role in Business 343

11.2 The Roles of Government and Business 345 11.2a A Clash of Ethical Belief Systems 346

11.3 Interaction of Business, Government, and the Public 347 11.3a Government–Business Relationship 347 11.3b Public–Government Relationship 348 11.3c Business–Public Relationship 348

11.4 Government’s Nonregulatory Influence on Business 348 11.4a Industrial Policy 349 11.4b Privatization 351 11.4c Other Nonregulatory Governmental Influences on Business 352

11.5 Government’s Regulatory Influences on Business 354 11.5a Regulation: What Does It Mean? 355 11.5b Reasons for Regulation 355

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11.5c Types of Regulation 357 11.5d Issues Related to Regulation 360

11.6 Deregulation 363 11.6a Purpose of Deregulation 363 11.6b The Changing World of Deregulation 363

Summary 365 Key Terms 366 Discussion Questions 366 Endnotes 366

CHA P T E R 1 2

Business Influence on Government and Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . 370

12.1 Corporate Political Participation 371

12.2 Business Lobbying 371 12.2a Organizational Levels of Lobbying 373

12.3 Corporate Political Spending 381 12.3a Arguments for Corporate Political Spending 383 12.3b Arguments against Corporate Political Spending 383

12.4 Political Action Committees 383 12.4a The Impact of Super PACs 384 12.4b Agency Issues 384

12.5 Political Accountability and Transparency 385

12.6 Strategies for Corporate Political Activity 387 12.6a Financial Performance Outcomes 388

Summary 388 Key Terms 389 Discussion Questions 389 Endnotes 390

CHA P T E R 1 3

Consumer Stakeholders: Information Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395

13.1 The Consumer Movement 396 13.1a Ralph Nader’s Consumerism 397 13.1b Consumerism Today 397 13.1c Product/Service Information Issues 399 13.1d Advertising Issues 400 13.1e Specific Controversial Advertising Issues 403 13.1f Warranties and Guarantees 417 13.1g Packaging and Labeling 418 13.1h Other Product Information Issues 421

13.2 The Federal Trade Commission (FTC) 421 13.2a The FTC in the 21st Century 422 13.2b Consumer Financial Protection Bureau 423

13.3 Self-Regulation in Advertising 424 13.3a The National Advertising Division’s Program 425

13.4 Moral Models and Consumer Stakeholders 425

Summary 426 Key Terms 426 Discussion Questions 427 Endnotes 427

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CHA P T E R 1 4

Consumer Stakeholders: Product and Service Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . 432

14.1 Two Central Issues: Quality and Safety 433 14.1a The Issue of Quality 433 14.1b The Issue of Safety 436 14.1c Product Liability 441

14.2 Consumer Product Safety Commission 445

14.3 Food and Drug Administration 447

14.4 Business’s Response to Consumer Stakeholders 448

14.5 Customer Service Programs 448

14.6 Total Quality Management Programs 450

14.7 Six Sigma Strategy and Other Processes 451

Summary 452 Key Terms 453 Discussion Questions 453 Endnotes 454

CHA P T E R 1 5

Sustainability and the Natural Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457

15.1 The Sustainability Imperative 458

15.2 The Natural Environment 460

15.3 A Brief Introduction to the Natural Environment 461

15.4 The Impact of Business on the Natural Environment 462 15.4a Climate Change 463 15.4b Energy 463 15.4c Water 464 15.4d Biodiversity and Land Use 465 15.4e Chemicals, Toxics, and Heavy Metals 466 15.4f Air Pollution 467 15.4g Waste Management 467 15.4h Ozone Depletion 469 15.4i Oceans and Fisheries 469 15.4j Deforestation 470

15.5 Responsibility for Environmental and Sustainability Issues 471 15.5a Environmental Ethics 471 15.5b The NIMBY Problem 472

15.6 The Role of Governments in Environmental and Sustainability Issues 473 15.6a Responses of Governments in the United States 473 15.6b International Government Environmental and Sustainability Responses 477

15.7 Other Environmental and Sustainability Stakeholders 478 15.7a Environmental Interest Groups 478 15.7b Other Sustainability Interest Groups 480

15.8 Business Environmentalism and Sustainability 482 15.8a Patagonia 482 15.8b Apple 483 15.8c CVS Health 483 15.8d Tesla 483 15.8e Business and Environmental Partnerships-Activists, NGOs, and Interest Groups 483

15.9 The Future of Business: Greening and/or Growing? 484

Summary 484

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Key Terms 485 Discussion Questions 485 Endnotes 485

CHA P T E R 1 6

Business and Community Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491

16.1 Community Involvement 492 16.1a Volunteer Programs 494 16.1b Managing Community Involvement 495

16.2 Corporate Philanthropy or Business Giving 496 16.2a A Brief History of Corporate Philanthropy 497 16.2b A Call for Transparency in Corporate Philanthropy 498 16.2c Giving to the “Third Sector”: The Nonprofits 499 16.2d Managing Corporate Philanthropy 503

16.3 Detrimental Impacts on Communities 508 16.3a Offshoring and Reshoring 508 16.3b Business and Plant Closings 510

Summary 514 Key Terms 515 Discussion Questions 515 Endnotes 516

PART 5 Internal Stakeholder Issues 521

CHA P T E R 1 7

Employee Stakeholders and Workplace Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522

17.1 The New Social Contract 523

17.2 Employee Engagement 525

17.3 The Employee Rights Movement 525 17.3a The Meaning of Employee Rights 526

17.4 The Right Not to Be Fired without Cause 527 17.4a Employment-at-Will Doctrine 528 17.4b Dismissing an Employee with Care 531

17.5 The Right to Due Process and Fair Treatment 532 17.5a Due Process 532 17.5b Alternative Dispute Resolution 533

17.6 Freedom of Speech in the Workplace 536 17.6a Whistle-Blowing 537 17.6b Consequences of Whistle-Blowing 539 17.6c Government’s Protection of Whistle-Blowers 541 17.6d False Claims Act 542 17.6e Management Responsiveness to Potential Whistle-Blowing Situations 544

Summary 545 Key Terms 546 Discussion Questions 546 Endnotes 547

CHA P T E R 1 8

Employee Stakeholders: Privacy, Safety, and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . 551

18.1 Privacy in the Workplace 552 18.1a Collection and Use of Employee Information by Employers 554

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18.1b Integrity Testing 557 18.1c Drug Testing 560 18.1d Workplace Monitoring 562 18.1e Policy Guidelines on the Issue of Privacy 565

18.2 Workplace Safety 566 18.2a The Workplace Safety Problem 567 18.2b Workplace Safety Today 568 18.2c Right-to-Know Laws 568 18.2d Workplace Violence 569

18.3 Health in the Workplace 571 18.3a Smoking in the Workplace 572 18.3b The Family-Friendly Workplace 572

Summary 574 Key Terms 575 Discussion Questions 575 Endnotes 575

CHA P T E R 1 9

Employment Diversity and Discrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580

19.1 Diversity in the Workforce 581

19.2 The Civil Rights Movement 582

19.3 Federal Laws Prohibiting Discrimination 583 19.3a Title VII of the Civil Rights Act of 1964 583 19.3b Age Discrimination in Employment Act of 1967 585 19.3c Equal Pay Act of 1963 585 19.3d Rehabilitation Act of 1973, Section 503 586 19.3e Americans with Disabilities Act 586 19.3f Civil Rights Act of 1991 591 19.3g Equal Employment Opportunity Commission 591

19.4 Expanded Meanings of Employment Discrimination 592 19.4a Disparate Treatment 592 19.4b Disparate Impact 593

19.5 Issues in Employment Discrimination 594 19.5a Inequality Persists Despite Diversity Efforts 594 19.5b Race and Ethnicity 594 19.5c Color 595 19.5d Gender 596 19.5e Other Forms of Employment Discrimination 598

19.6 Affirmative Action in the Workplace 602 19.6a The Future of Diversity Management 604

Summary 604 Key Terms 605 Discussion Questions 605 Endnotes 606

Cases 611 Subject Index 748 Name Index 763

ETHICS IN PRACTICE CASES

WORKING FOR MY CUP OR THE HOUSE? 17 IS BUSINESS POWER TOO GREAT? 19

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THE SOCIALLY RESPONSIBLE SHOE COMPANY 48 BURGERS WITH A SOUL—FRESH, LOCAL, SUSTAINABLE 58 ARE PLANTS AND FLOWERS STAKEHOLDERS? DO THEY HAVE RIGHTS? 79 CHICKENS OR EMPLOYEES? WHICH IS THE MOST IMPORTANT STAKEHOLDER? 90 SOMETHING’S ROTTEN IN HONDO 94 EXCESSIVE DIRECTOR COMPENSATION AT FACEBOOK? 113 MONITORING THE MONITORS 119 DUPONT AND SUSTAINABILITY REPORTING 148 CRISIS MANAGEMENT: WHEN TO REPENT? WHEN TO DEFEND? 175 WHAT WOULD YOU DO? 193 TO HUNT OR NOT TO HUNT—THAT IS THE QUESTION 196 IS RÉSUMÉ INFLATION AND DECEPTION ACCEPTABLE? 198 ARE PEOPLE MORE ETHICAL WHEN BEING “WATCHED?” 214 MORE SALES, LOWER ETHICS? 244 FIRED FOR CHEATING ON EMPLOYER TESTS 247 THE NEW ETHICS CODE–SIGN OR RESIGN 256 SOMETIMES ETHICS HOTLINES DON’T WORK 258 TWITTER ETHICS IN BUSINESS 275 COPYRIGHT INFRINGEMENT? 285 USING PERSONAL TECHNOLOGY IN THE WORKPLACE 287 WHOLE FOODS: GMO TRANSPARENCY OR CLEVER MARKETING? 298 IS THE FAIR TRADE MOVEMENT SUSTAINABLE? 313 HELPING FACTORIES TO PASS SWEATSHOP AUDITS—USING CHEATING CONSULTANTS 317 VIOLATIONS OF THE FOREIGN CORRUPT PRACTICES ACT OR NOT? 324 THE MARIJUANA REGULATORY DILEMMA 358 BANNING THE BIG GULP 360 THE NRA AND THE CDC 372 DOUBLE IRISH WITH A DUTCH SANDWICH 381 WHAT DO WE TELL THE CUSTOMER? 401 SHOULD THE WORD FREE BE BANNED IN ADVERTISING? 404 DO THESE “ADVERTISING TRAPS” REPRESENT ETHICAL ADVERTISING? 406 SHOULD FOOD ADVERTISING TO CHILDREN BE BANNED? 409 RETURN FRAUD—A GROWING BUSINESS 419 THE PIRATED POPCORN 435 WAS “PINK SLIME” A VICTIM OF SOCIAL MEDIA FRENZY? 440 WATER SCORING: A WAY TO PUSH FOR BETTER WATER STEWARDSHIP? 466 A LITTLE GREEN LIE 473 WHO FAILED TO PROTECT THE COMMUNITY IN FLINT, MICHIGAN? 475

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SLOW FASHION 480 MATTERS OF GOOD INTENTIONS 497 COMPETITION IN THE NONPROFIT WORKPLACE 507 SHOULD I SAY SOMETHING? 527 THE POCKETED PURSE 529 A WHISTLE-BLOWER’S WINDFALL 536 THE SERIAL WHISTLE-BLOWER: HAVE THE INCENTIVES GONE TOO FAR? 538 EMPLOYEE HEALTH AND THE USE OF BIG DATA 553 CO-WORKERS VERSUS FRIENDSHIP 559 AMAZON: USING THE DIGITAL BULLETIN BOARD TO SHAME EMPLOYEES INTO GOOD BEHAVIOR 563 SICK DAY SNOOPS 565 WHEN EXTERNAL STAKEHOLDERS ATTACK 569 WHAT IS REASONABLE ACCOMMODATION FOR PREGNANCY? 589 GENTLEMAN’S CLUB? 599 BIGOTRY IN THE BAKERY? 600

CASES

WALMART: THE MAIN STREET MERCHANT OF DOOM 613 WALMART’S LABOR PRACTICES 623 THE BODY SHOP: POSTER CHILD OF EARLY CSR MOVEMENT 630 CHIPOTLE’S STRUGGLE WITH FOOD SAFETY 642 DIRECT-TO-CONSUMER ADVERTISING FOR PILLS: IS IT ETHICAL? 646 USING EX-CONS TO TEACH BUSINESS ETHICS 648 VOLKSWAGEN’S DIESEL DECEPTION 650 UNLOCKING THE SECRETS OF THE APPLE IPHONE IN THE NAME OF ANTITERRORISM 659 TO HIRE OR NOT TO HIRE 664 PAYDAY LOANS: A NEEDED PRODUCT OR A SCAM? 664 YOU PUNCH MINE AND I’LL PUNCH YOURS 667 PHANTOM EXPENSES 668 FAMILY BUSINESS 669 THE WAITER RULE: WHAT MAKES FOR A GOOD CEO? 669 NIKE, INC. AND SWEATSHOPS 671 COKE AND PEPSI IN INDIA: ISSUES, ETHICS, AND CRISIS MANAGEMENT 679 CHIQUITA: AN EXCRUCIATING DILEMMA BETWEEN LIFE AND LAW 685 THE BETASERON® DECISION (A) 689 SHOULD DIRECTORS SHINE LIGHT ON DARK MONEY? 691 BIG PHARMA’S MARKETING TACTICS 692 MCDONALD’S—THE COFFEE SPILL HEARD ’ROUND THE WORLD 701

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GENERAL ELECTRIC AND THE HUDSON RIVER CLEANUP 705 WHAT HAVE YOU DONE FOR ME LATELY? THE CASE OF AMAZON IN SOUTH CAROLINA 711 EVERLANE: ETHICAL CHIC AND RADICAL TRANSPARENCY IN GLOBAL SUPPLY CHAINS 715 NEW BELGIUM BREWING: DEFINING A BUSINESS ON SUSTAINABILITY 718 ALTRUISM VERSUS PROFIT: THE CHALLENGES OF CLEAN WATER IN INDIA 721 SAFETY? WHAT SAFETY? 724 TARGETING CONSUMERS (AND USING THEIR SECRETS) 725 THE PERILS OF STUDENT LOAN DEBT 727 “DEAD PEASANT” LIFE INSURANCE POLICIES 730 THE CASE OF THE FIRED WAITRESS 732 AFTER-HOURS ACTIVITIES: THE CASE OF PETER OILER 734 LOCATION, LOCATION, LOCATION 736 LOOKS DISCRIMINATION AT A&F 737 TWO VETS, TWO DOGS, AND A DEADLOCK 739 ARE CRIMINAL BACKGROUND CHECKS DISCRIMINATORY? 741 TO TAKE OR NOT TO TAKE 742 TRAGEDY IN BANGLADESH—THE RANA PLAZA FACTORY COLLAPSE 742 WORKPLACE SPYING 746

xvi Contents

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

 

 

Preface

Business & Society: Ethics, Sustainability, and Stakeholder Management, Tenth Edition, pro- vides a conceptual framework, analysis, and discussion of the issues surrounding the business and society relationship. The book’s structure, chapters, and cases identify and engage the major topics involved in developing a robust understanding of business and society, or busi- ness in society. The latest research, examples, and cases provide you with a broad, yet detailed, analysis of the subject matter; they also offer a solid basis for thoughtful …

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