Ethical Theory and Business - HTW Berlin

[Pages:8]Ethical Theory and Business

SEVENTH EDITION

Edited by

Tom L. Beauchamp

Georgetown University

Norman E. Bowie

University of Minnesota

Pearson Education International

Contents

PREFACE xiii

Chapter One ETHICAL THEORY AND BUSINESS PRACTICE 1

FUNDAMENTAL CONCEPTS AND PROBLEMS Morality and Ethical Theory 1 Morality and Prudence 2

Morality and Law 4 The Rule of Conscience 5 Approaches to the Study of Morality 6 Relativism and Objectivity of Belief 7 Moral Disagreements 10 The Problem of Egoism 12

NORMATIVE ETHICAL THEORY Utilitarian Theories 17 , Kantian Ethics 22

Contemporary Challenges to the Dominant Theories 28 Rights Theories 28 Virtue Ethics 31 Feminist Ethics and the Ethics of Care 33 Common Morality Theories 35 A Prologue to Theories of Justice 38

ANALYSIS OF CASES

The Case Method in Law 39 The Case Method in Business 40 The Case Method in Ethics 40 Ethical Theory and Case Analysis 41

V

-\ h

vi Contents

Chapter Two

THE PURPOSE OF THE CORPORATION 45

INTRODUCTION

STOCKHOLDER MANAGEMENTVERSUS STAKEHOLDER MANAGEMENT

Milton Friedman, The Social Responsibility of Business 1s to Increase Its Profits 50 R. Edward Freeman,A Stakeholder Theory of the Modern Corporation 55

W I C H VIEW IS RIGHT?

John Hasnas, Two Normative Theories of Business Ethics: A Critique 65 John R. Boatright, What's S o Special About Shareholders? 75

LEGAL PERSPECTIVES

Michigan Supreme Court, Dodge U. Ford Motor Co. 83 Supreme Court of NewJersey, A. F! Smith Manufacturing Co. U. Barlow 85 Johnson &Johnson: Our Credo 88

CASES

Case 1: Shutdown at Eastland 89 Case 2: Merck & River Blindness 90 Case 3: H. B. Fuller in Honduras: Street Children and Substance Abuse 91

Suggested Supplementary Readings 93

Chapter Three

CORPORATE CHARACTER AND INDIVIDUAL RESPONSIBILITY 95

INTRODUCTION

ACCOUNTABILITY AND RESPONSIBILITY

Jennijii Moore, Corporate Culpability under the Federal Sentencing Guidelines 99 Manuel Velasquez, Debunking Corporate Moral Responsibility 109 Russell l? Boisjoly, Ellen Foster Curtis, Eugene Mellican, Roger Boisjoly and the Challenger

Disaster: The Ethical Dimensions 123 Lisa Belkin, How Can We Save the Next Victim? 136

LEGAL PERSPECTIVES Federal Sentencing Guidelines-Sentencing of Organizations 147 United States Court of Appeals for the First Circuit, United States U.Bank of Na0 England 152 Supreme Court of South Dakota, Stute of South Dakota U. Hy VeeFood Stores, Inc. 156

~- ~

\

WES

Case 1: An Auditor's Dilemma 158 Case 2: Sears Auto Centers 159 Case 3: H.J. Heinz Company: The Administration of Policy 161

1'

Contents vii

Chapter Four ACCEPTABLE RISK 166

I i INTRODUCTION

CONSUMER RISK

Manuel G. Velasquez, The Ethics of Consumer Production 175 Gemge G. Brenkert, Strict Products Liability and CompensatoryJustice 184

INVESTMENT RISK Robert E. Fredcrick und I?! Michael Hoffman, The Individual Investor in Securities Markets:

An Ethical Analysis 189 John R. Boatright, Ethical Issues in Financial Services 196

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

to Refuse Workplace Hazards 204 John R. Boathght, Occupational Health and Safety 211

ENVIRONMENTAL RISK

Richard '7: De George, Safety, Risk, and Environmental Protection 222 Manuel G. Velasquez, Ethics and the Environment 227

LEGAL PERSPECTIVES Supreme Court of NewJersey, Henningsen U. Bloomfield Motors, Inc. und Chrysler

Coqoration 237 Supreme Court of the United States, Automobile WorkersU.Johnson Controls, Inc. 241 Supreme Court of the United States, United States, Petitioner U. Bestjoods et al. 244

. viii Contents

Case 1: Protecting Consumers Against Tobacco 247 Case 2: Exposing Workers to Plutonium 248 Case 3: The McDonald's Polystyrene Case 249 Case 4 Enron and Employee Investment Risk 251 Case 5: OSHA Noncompliance and Security 252 Case 6: Texaco in the Ecuadorean Amazon 252

Suggested Supplementary Readings 254

Chapter Five

ETHICAL TREATMENT OF EMPLOYEES 257

INTRODUCTION

I

THE HIRING AND FIRING OF EMPLOYEES

Patriciu H. Werhaneund TuraJ Radin, Employment at Will and Due Process 266

Kichard A. Epstein, In Defense of the Contract at Will 274

PRNACY

Joseph K u p f i The Ethics of Genetic Screening in the Workplace 282

Andrew C. Wicks, Lowell E. S a i q Rebekah Harty, Steuen V? Gajewski, Miriam Marcus-Smith,

Screening Workers for Genetic Hypersusceptibility: Potential Ethical, Legal, and Social Implications from the Human Genome Project 289

WHISTLEBLOWING

Michael Davis, Some Paradoxes of Whistleblowing 297 Ronald Duska, Whistleblowingand Employee Loyalty 305

LEGAL PERSPECTIVES

Superior Court of NewJersey, Warthen U. Toms River Community Memorial Hospital 310 Superior Court of NewJersey, Potter U. VillugeBank of NewJersey 314

CASES

Case 1: The Reluctant Security Guard 318 Case 2: A Matter of Principle 321 Case 3: Health and Genetic Screening 322

Suggested Supplementary Readings 323

Contents ix

Chapter Six DIVERSITY AND DISCRIMINATION IN THE WORJWLACE 325

INTRODUCTION George Sher, Diversity 331

AFFIRMATIVE ACTION AND REVERSE DISCRIMINATION

Thomas Nagel, A Defense of Affirmative Action 339 N. Scott Arnold, Affirmative Action and the Demands ofJustice 343 Tom L. Beauchamp, Goals and Quotas in Hiring and Promotion 352

ARTICLES

Deborah Epstein, Can a "Dumb A s s Woman" Achieve Equality in the Workplace? Running the Gauntlet of Hostile Environment Harassing Speech 361

E u p VOZokh,What Speech Does "HostileWork Environment"HarassmentLaw Restrict? 369

LEGAL PERSPECTNES

Supreme Court of the United States, Local28 of the Sheet Meta1 Worker'sInternational Association U. Equal Employment Opportunity Commission 374

Supreme Court of the United States, City ofRichmond u.J A. Croson Company 379 Supreme Court of the United States, Mmitor Sauings Bank, I S B v. Vinson, et al. 384 Supreme Court of the United States, Teresa Harn's, Petitioner U. Forklijit Systems, Inc. 389

CASES

Case 1: Increasing Minority Coaches in the NFL 391 Case 2: Sing's Chinese Restaurant 392 Case 3: Wards Cove Packing Co. v. Atonio 393 Case 4: Weber and the Kaiser Aluminum Steelworkers Plan 394 Case 5: Firefighters Local Union No. 1784 v. Stotts 395 Case 6: Promotions at Uptown Bottling and Canning Company 396

Case 7: Freedom of Expression in the Workplace 397

Case 8: "Harassment"at Brademore Electric 397

Suggested Supplementary Readings 399

Chapter Seven MARKETING AND THE DISCLOSURE OF INFORMATION 401

INTRODUCTION

Robert L. Arn'ngton,Advertising and Behavior Control 409 John Douglas Bishop, 1s Self-IdentityImage Advertising Ethical? 417 Dauid M. Hollty, Information Disclosure in Sales 427 Thomas Carson, Deception and Withholding Information in Sales 434

I / x Contents

. BLUFFING

Albert 2. Cam, 1s Business Bluffing Ethical? 443 Thomas Carson, Second Thoughts About Bluffing 448

LEGAL PERSPECTIVES

United States Court ofAppeals (FirstCircuit), IrvingA. Backman U. Polaroid Corporation 453 United States Court of Appeals for the Seventh Circuit, B. Sanfield, Inc. v. Finlay Fine Jeweliy Co?. 456 United States Court of Appeals for the Second Circuit, Coca-Cola Company U . Tropicana

Products, Inc. 459

CASES Case 1: More HorsePOWER? 461 Case 2: Self-IdentityAdvertising 462

Case 3: AdvertisingJoe Camel 462 Case 4: Green Advertising 463 Case 5: Sales at World Camera and Electronics 464 Case 6: Marketing Malt Liquor 465

Case 7: The Conventions of Lying on Wall Street 465

Suggested Supplementary Readings 467

Chapter Eight ETHICAL ISSUES IN INFORMATION TECHNOLOGY 469

INTRODUCTION

COMPUTERS AND PRIVACY

DeborahJohnson, Privacy 473 Damen Charters,Electronic Monitoring and Privacy Issues in Business-Marketing:

The Ethics of the DoubleClick Experience 487

TECHNOLOGICAL CHALLENGES TO INTELLECTUAL PROPERTY

Richard 7:De Gemge, Intellectual Property and The Information Age 495 Lawrence Lessig, Controlling the Wired 504

I

LEGAL PERSPECTniTES

U.S. Supreme Court, Sony C e . U. Universal City Studios Inc. 513

United States District Court for the Northern District of California,

A fM Records v. Napster 518

Contents xi

CASES

Case 1: Privacy, Legality, and Information Technology 524 Case 2: Privacy Pressures: The Use of Web Bugs at HomeConnection 525 Case 3: Spiders at the Auction 527 Case 4: 528

Suggested Supplementary Readings 530

Chapter Nine

ETHICAL ISSUES IN INTERNATIONAL, BUSINESS 532

INTRODUCTION

UNIVERSALS, RELATIVISM,AND THE PROBLEM OF BRIBERY

Normun Bowie, Relativism and the Moral Obligations of Multinational Corporations 538 Patm'ciuH. Werhane,Exporting Mental Models: Global Capitalism in the 21st Century 544 Thomas I/I!Dunfee and ThomasJ Donaldson, Untangling the Corruption Knot: Global

Bribery Viewed through the Lens of Integrative Social Contract Theory 550

HUMAN RIGHTS AND THE MULTINATIONAL CORPORATION

Denis G. Arnold, Human Rights and Global Labor Practices 558 John R. Schermerhorn,J K ,Terms of Global Business Engagement in Ethically Challenging

Environments: Applications to Burma 570 Iun Maitlund, The Great Non-Debate Over International Sweatshops 579 Denis G. Arnold, Norman E. Bowie, Sweatshops and Respect for Persons 591

LEGAL PERSPECTIVES

Universal Declaration of Human Rights 606 Supreme Court of Texas, Dow Chemical Company and Shell Oil Company U. Domingo Castro

Alfaro et al. 610 U.S. Court of Appeals, Ninth Circuit, Doe 1 us. Unocal 615

CASES

Gase 1: Foreign Assignment 621 Case 2: Facilitation or Bribery: Cultural and Ethical Disparities 623 Case 3: Adidas-Salomon: Application of Standards of Engagement to Child Labor Dilemma 624

Suggested Supplementary Readings 628

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download