Instruction Manual for Business Ethics Ethical Decision Making and Cases 11th Edition by O Ferrell, John Fraedrich, Ferrell ISBN 1305500849 978-1305500846

Part 1. An Overview of Business Ethics

Chapter 1. The Importance of Business Ethics

Business Ethics Defined

Why Study Business Ethics?

A Crisis in Business Ethics

Specific Issues

The Reasons for Studying Business Ethics

The Development of Business Ethics

Before 1960: Ethics in Business

The 1960s: The Rise of Social Issues in Business

The 1970s: Business Ethics as an Emerging Field

The 1980s: Consolidation

The 1990s: Institutionalization of Business Ethics

The Twenty-First Century of Business Ethics

Developing an Organizational and Global Ethical Culture

The Benefits of Business Ethics

Ethics Contributes to Employee Commitment

Ethics Contributes to Investor Loyalty

Ethics Contributes to Customer Satisfaction

Ethics Contributes to Profits

Our Framework for Studying Business Ethics

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 2. Stakeholder Relationships, Social Responsibility, and Corporate Governance

Stakeholders Define Ethical Issues in Business

Identifying Stakeholders

A Stakeholder Orientation

Social Responsibility and Business Ethics

Issues in Social Responsibility

Social Responsibility and the Importance of a Stakeholder Orientation

Corporate Governance Provides Formalized Responsibility to Stakeholders

Views of Corporate Governance

The Role of Boards of Directors

Greater Demands for Accountability and Transparency

Executive Compensation

Implementing A Stakeholder Perspective

Step 1: Assessing the Corporate Culture

Step 2: Identifying Stakeholder Groups

Step 3: Identifying Stakeholder Issues

Step 4: Assessing Organizational Commitment to Stakeholders and Social Responsibility

Step 5: Identifying Resources and Determining Urgency

Step 6: Gaining Stakeholder Feedback

Contributions of a Stakeholder Perspective

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Part 2. Ethical Issues and the Institutionalization of Business Ethics

Chapter 3. Emerging Business Ethics Issues

Recognizing an Ethical Issue (Ethical Awareness)

Foundational Values for Identifying Ethical Issues

Integrity

Honesty

Fairness

Ethical Issues and Dilemmas in Business

Misuse of Company Time and Resources

Abusive or Intimidating Behavior

Lying

Conflicts of Interest

Bribery

Corporate Intelligence

Discrimination

Sexual Harassment

Fraud

Consumer Fraud

Financial Misconduct

Insider Trading

Intellectual Property Rights

Privacy Issues

The Challenge of Determining an Ethical Issue in Business

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 4. The Institutionalization of Business Ethics

Managing Ethical Risk through Mandated and Voluntary Programs

Mandated Requirements for Legal Compliance

Laws Regulating Competition

Laws Protecting Consumers

Laws Promoting Equity and Safety

The Sarbanes–Oxley (SOX) Act

Public Company Accounting Oversight Board

Auditor and Analyst Independence

Whistle-Blower Protection

Cost of Compliance

Dodd–Frank Wall Street Reform and Consumer Protection Act

Financial Agencies Created by the Dodd–Frank Act

Consumer Financial Protection Bureau

Whistle-Blower Bounty Program

Laws that Encourage Ethical Conduct

Federal Sentencing Guidelines for Organizations

Core or Best Practices

Voluntary Responsibilities

Cause-Related Marketing

Strategic Philanthropy

Social Entrepreneurship

The Importance of Institutionalization in Business Ethics

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Part 3. The Decision-Making Process

Chapter 5. Ethical Decision Making

A Framework for Ethical Decision Making in Business

Ethical Issue Intensity

Individual Factors

Organizational Factors

Opportunity

Business Ethics Intentions, Behavior, and Evaluations

Using the Ethical Decision-Making Model to Improve Ethical Decisions

Normative Considerations in Ethical Decision Making

Institutions as the Foundation for Normative Values

Implementing Principles and Core Values in Ethical Decision Making

Understanding Ethical Decision Making

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 6. Individual Factors: Moral Philosophies and Values

Moral Philosophy Defined

Moral Philosophies

Instrumental and Intrinsic Goodness

Teleology

Deontology

Relativist Perspective

Virtue Ethics

Justice

Applying Moral Philosophy to Ethical Decision Making

Cognitive Moral Development and its Problems

White-Collar Crime

Individual Factors in Business Ethics

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 7. Organizational Factors: The Role of Ethical Culture and Relationships

Defining Corporate Culture

The Role of Corporate Culture in Ethical Decision Making

Ethical Frameworks and Evaluations of Corporate Culture

Ethics as a Component of Corporate Culture

Compliance versus Values-Based Ethical Cultures

Differential Association

Whistle-Blowing

Leaders Influence Corporate Culture

Power Shapes Corporate Culture

Motivating Ethical Behavior

Organizational Structure

Group Dimensions of Corporate Structure and Culture

Types of Groups

Group Norms

Variation in Employee Conduct

Can People Control their Actions within a Corporate Culture?

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Part 4. Implementing Business Ethics in a Global Economy

Chapter 8. Developing an Effective Ethics Program

The Responsibility of the Corporation to Stakeholders

The Need for Organizational Ethics Programs

An Effective Ethics Program

An Ethics Program Can Help Avoid Legal Problems

Values versus Compliance Programs

Codes of Conduct

Ethics Officers

Ethics Training and Communication

Systems to Monitor and Enforce Ethical Standards

Continuous Improvement of an Ethics Program

Common Mistakes in Designing and Implementing an Ethics Program

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 9. Managing and Controlling Ethics Programs

Implementing an Ethics Program

The Ethics Audit

Benefits of Ethics Auditing

Ethical Crisis Management and Recovery

Measuring Nonfinancial Ethical Performance

Risks and Requirements in Ethics Auditing

The Auditing Process

Secure Commitment of Top Managers and Board of Directors

Establish a Committee to Oversee the Ethics Audit

Define the Scope of the Audit Process

Review Organizational Mission, Values, Goals, and Policies and Define Ethical Priorities

Collect and Analyze Relevant Information

Verify the Results

Report the Findings

The Strategic Importance of Ethics Auditing

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 10. Globalization of Ethical Decision Making

Global Culture, Values, and Practices

Economic Foundations of Business Ethics

Economic Systems

Multinational Corporations

Global Cooperation to Support Responsible Business

International Monetary Fund

United Nations Global Compact

World Trade Organization

Global Ethics Issues

Global Ethical Risks

Bribery

Antitrust Activity

Internet Security and Privacy

Human Rights

Health Care

Labor and Right to Work

Compensation

Consumerism

The Importance of Ethical Decision Making in Global Business

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 11. Ethical Leadership

Defining Ethical Leadership

Requirements for Ethical Leadership

Benefits of Ethical Leadership

Ethical Leadership and Organizational Culture

Managing Ethical Business Conflicts

Conflict Management Styles

Ethical Leaders Empower Employees

Ethical Leadership Communication

Ethical Leadership Communication Skills

Leader–Follower Relationships

Ethics Programs and Communication

Power Differences and Workplace Politics

Feedback

Leadership Styles and Ethical Decisions

The Radar Model

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Chapter 12. Sustainability: Ethical and Social Responsibility Dimensions

Defining Sustainability

How Sustainability Relates to Ethical Decision Making and Social Responsibility

Global Environmental Issues

Atmospheric

Water

Land

Environmental Legislation

Environmental Protection Agency (EPA)

Environmental Regulations

Alternative Energy Sources

Wind Power

Geothermal Power

Solar Power

Nuclear Power

Biofuels

Hydropower

Business Response to Sustainability Issues

Green Marketing

Greenwashing

Strategic Implementation of Environmental Responsibility

Recycling Initiatives

Stakeholder Assessment

Risk Analysis

The Strategic Environmental Audit

Summary

Important Terms for Review

Resolving Ethical Business Challenges

Check Your EQ

Part 5. Cases

Case 1. Monsanto Attempts to Balance Stakeholder Interests

Introduction

History: From Chemicals to Food

Monsanto’s Emphasis on Biotechnology

Concerns about the Safety of GM Food

Concerns about Environmental Effects of Monsanto Products

Resistance to Pesticides and Herbicides

Dealing with Organizational Ethical Issues

Patent Issues

Legal Issues

Corporate Responsibility at Monsanto

Sustainable Agriculture

Charitable Giving

Conclusion

Questions for Discussion

Sources

Case 2. Starbucks Mission: Social Responsibility and Brand Strength

New Product Offerings

Starbucks Culture

Corporate Social Mission

Environment

Employees

Suppliers

Customers

Communities

Brand Evolution

Success and Challenges

Conclusion

Questions for Discussion

Sources

Case 3. Walmart Manages Ethics and Compliance Challenges

History: The Growth of Walmart

Effects on Competitive Stakeholders

Relationships with Supplier Stakeholders

Ethical Issues Involving Employee Stakeholders

Ethical Leadership Issues

Bribery Scandal

Safety Issues

Responding to Stakeholder Concerns

Sustainability Leadership

What is Walmart Doing to Improve Ethics and Social Responsibility?

Walmart Today

The Future of Walmart

Questions for Discussion

Sources

Case 4. Sustainability Challenges in the Gas and Oil Industry

The Wreck of the Exxon Valdez

Response to the Disaster

The Aftermath

Deepwater Horizon Oil Spill

What Caused the Explosion?

Repercussions of the Disaster

The Aftermath

Fracking: More Beneficial or Harmful to the Environment?

Conclusion

Questions for Discussion

Sources

Case 5. New Belgium Brewing: Engaging in Sustainable Social Responsibility

History of the New Belgium Brewing Company

New Belgium Ethical Culture

New Belgium’s Purpose and Core Beliefs

Employee Concerns

Sustainability Concerns

Social Concerns

Organizational Success

Questions for Discussion

Sources

Case 6. National Collegiate Athletic Association Ethics and Compliance Program

Introduction

Overview of NCAA

Challenges for Ethics and Compliance in College Football

Penn State Scandal

Ohio State

Self-Reporting and Monitoring Student–Athletes

Conclusion

Questions for Discussion

Sources

Case 7. Google: The Quest to Balance Privacy with Profit

Introduction

Company Culture

Products

Search Engine

Advertising

Web Browser

Email Account

YouTube

Android

Google+

Expanding the Product Mix

Google’s Initiatives

Google Ventures

Google Green

Google.org

Google and Employee Charitable Initiatives

Privacy

Search Queries

Tracking Users

Privacy Audits

From Many Privacy Policies to One

“Right to Be Forgotten”

Google in China

Government Response to Privacy Issues

Conclusion

Questions for Discussion

Sources

Case 8. Zappos: Stepping Forward in Stakeholder Satisfaction

Introduction

History

Core Values

Zappos’s Customer-Focused Business Model

Shopping and Shipping

Customer Service

Transparency

Zappos Insights

Corporate Culture

Work Environment

Hiring and Training

Benefits

Work-Life Integration

Zappos’s New Structure

Corporate Social Responsibility

Philanthropy

Sustainability

Recognition

Ethical Challenges for Zappos

Laying Off Employees

Acquisition by Amazon

More than Shoes Campaign

Technical Difficulties

Theft of Customer Information

The Future of Zappos

Questions for Discussion

Sources

Case 9. Enron: Questionable Accounting Leads to Collapse

Introduction

Enron’s History

Enron’s Corporate Culture

Enron’s Accounting Problems

The Whistle-Blower

The Chief Financial Officer

The Chief Executive Officer

The Chair

The Lawyers

Merrill Lynch

Arthur Andersen LLP

The Fallout

Learning from Enron

Conclusion

Questions for Discussion

Sources

Case 10. Lululemon: Encouraging a Healthier Lifestyle

Introduction

Background

Ethical Risks and Challenges

Founder Chip Wilson

Misleading Advertising

Corporate Culture

Too-Sheer Yoga Pants

Customer Privacy

Positive Ethical Practices

Contributions to Communities

Relationships with Employees

Conclusion

Questions for Discussion

Sources

Case 11. Frauds of the Century

The Impact of Ponzi Schemes on Society

The Original Ponzi Schemer

Tom Petters

Bernard L. Madoff

R. Allen Stanford

Pyramid Schemes

Herbalife: Ackman’s Accusations

NexGen3000.com: The Internet’s Effect

Conclusion

Questions for Discussion

Sources

Case 12. Insider Trading at the Galleon Group

Raj Rajaratnam

Accusations of Insider Trading at Galleon

Arrest and Trial

The Verdict

Rajat Gupta

The Impact of the Galleon Case

Questions for Discussion

Sources

Case 13. Whole Foods Strives to Be an Ethical Corporate Citizen

Introduction

Company Background

Mission Statement and Core Values

Living its Values

Commitment to Customers

Commitment to Employees

Commitment to Other Stakeholders

Commitment to Sustainability

Ethical Issues

Reaction toward Competitors

Veering Off-Course

Unions, Health Care, and Climate Change

Conclusion

Questions for Discussion

Sources

Case 14. Apple Inc.’s Ethical Success and Challenges

Apple’s History

Apple’s Corporate Culture

Apple’s Ethics

Ethical Issues at Apple Inc.

Privacy

Price Fixing

Rioting

Sustainability

Intellectual Property

Threats to Other Companies

Supply Chain Management Issues

The Future of Apple Inc.

Questions for Discussion

Sources

Case 15. PepsiCo’s Journey Toward an Ethical and Socially Responsible Culture

Company Overview

Company and Marketing History

Building a Brand

Celebrity Endorsements

Recent Years

Pepsico Divisions and Brands

Pepsi-Cola Brands

Frito-Lay

Gatorade

Criticisms

India

Health

Labeling and Packaging Issues

Social Responsibility and Sustainability

PepsiCo Guiding Principles

Sustainability

Employee Commitment

PepsiCo Foundation

Dream Machine

Conclusion

Questions for Discussion

Sources

Case 16. Ethical Leadership at Cardinal IG: The Foundation of a Culture of Diversity

Background

The Cardinal IG Story

Mission and Vision

Values, Principles, and Behavior

Leadership Through a Multilevel Team Structure

A Culture of Discipline and Respect

Ethical Expectations

Aligned Incentives, Rewards, and Recognition

Synergy Through Diversity

Conclusion

Questions for Discussion

Sources

Case 17. Belle Meade Plantation: The First Nonprofit Winery Engages in Social Entrepreneurship

Introduction

Brief History of Belle Meade Plantation

Nonprofits Move in Direction of Social Entrepreneurship

Market for wine in Tennessee

Beginning of the Winery

Success Beyond Expectations: Tours, Tastings, and Social Media

Promoting the Social Enterprise

Approaching Challenges Facing Belle Meade Plantation

Questions for Discussion

Sources

Case 18. Managing the Risks of Global Bribery in Business

Background of the United States Foreign Corrupt Practices Act

United Kingdom Bribery Act

Penalties Under the FCPA and the U.K. Bribery Act

Pfizer

Siemens: FCPA’s Global Reach

Ralph Lauren: Value of Cooperation with the FCPA

Prosecutions under the U.K. Bribery Act

Alstom: Bribery Leads to Convictions in both the United States and the United Kingdom

National Institutions and the Impact of Bribery

Conclusion

Questions for Discussion

Sources

Case 19. Multilevel Marketing under Fire: Herbalife Defends Its Business Model

Introduction

History

Products

Multilevel Marketing

Herbalife’s Direct Sellers

Pyramid Schemes

Is Herbalife a Pyramid Scheme? Ackman’s Allegations

Criticism Against William Ackman

The Controversy Continues

Herbalife’s Social Responsibility

Conclusion

Questions for Discussion

Sources

Case 20. The Mission of CVS: Corporate Social Responsibility and Pharmacy Innovation

Introduction

Ethical Challenges

HIPAA Privacy Case of 2009

Deceptive Business Practices

Overdistribution of Oxycodone

Death of a Shoplifter

Moving Toward a Health Care Company

Revealing CVS’s New Direction: Tobacco-Free CVS

Criticism Against CVS

Stakeholder Orientation

Employees

Shareholders

Communities

Suppliers

Environmental Impact

Conclusion

Questions for Discussion

Sources