Preface xi Introduction Chapter 1: Ethics and Business 1 Horatio Alger and Stock Options 1 The Myth of Amoral Business 3 The Relation of Business and Morality 5 Business Ethics and Ethics 9 The Case of the Collapsed Mine 18 Study Questions 20 Moral Reasoning In Business Chapter 2: Conventional Morality and Ethical Relativism 21 Purchasing Abroad: A Case Study 21 The Levels of Moral Development 22 Subjective and Objective Morality 24 Descriptive Relativism 26 Normative Ethical Relativism 27 Moral Absolutism 31 Moral Pluralism 32 Pluralism and American Business 33 Pluralism and International Business 33 Pluralism, Business, and the Law 35 Business and Religious Ethics 36 Approaches to Ethical Theory 38 Study Questions 41 Chapter 3: Utility and Utilitarianism 43 An Airplane Manufacturing Case 43 Utilitarianism 43 Act and Rule Utilitarianism 47 Objections to Utilitarianism 50 Utilitarianism and Justice 52 Applying Utilitarianism 53 Utilitarianism and Bribery 56 Study Questions 60 Chapter 4: Moral Duty, Rights, and Justice 61 The Johnson Controls Case 61 Deontological Approaches to Ethics 62 Reason, Duty, and the Moral Law 63 Application of the Moral Law 67 Imperfect Duties, Special Obligations, and Moral Ideals 71 Rights and Justice 73 Study Questions 81 Chapter 5: Virtue Ethics and Moral Reasoning 82 The Case of Dora and Joe 82 Virtue 82 Applying Moral Reasoning 87 Study Questions 97 Chapter 6: Moral Responsibility: Individual and Corporate 98 The Love Canal Case 98 Moral Responsibility 99 Excusing Conditions 100 Liability and Accountability 104 Agent and Role Moral Responsibility 106 The Moral Status of Corporations and Formal Organizations 108 Study Questions 112 Moral Issues in Business Chapter 7: Justice and Economic Systems 114 The Case of the Two Slaveholders 114 Moral Evaluation of Economic Systems 115 Moral Evaluation of Contemporary Systems 119 Economic Models and Games 120 A Capitalist Model 121 Capitalism and Government 125 A Socialist Model 128 Comparison of Models and Systems 130 Economic Systems and Justice 131 Study Questions 133 Chapter 8: American Capitalism: Moral or Immoral? 134 The Case of Bill Gates and Warren Buffet 134 The American Economic System 136 Relation of the American Government to the American Economic System 138 The Marxist Critique 141 Non-Marxist Moral Critiques of American Capitalism 146 The Moral Defense of the American Free-Enterprise System 148 Non-Socialist Alternatives to Contemporary American Capitalism 152 Philanthropy 156 Study Questions 157 Chapter 9: The International Business System, Globalization, and Multinational Corporations 159 The WTO and Agriculture: A Case Study 159 Justice and the International Economic System 161 The Globalization of Business 164 Multinational Corporations and Ethics 167 Ethical Guidelines for Multinational Operations 173 Multinationals and Human Rights 175 International Codes 176 Cross-Cultural Judgments, Negotiation, and International Justice 180 Study Questions 183 Chapter 10: Corporations, Morality, and Corporate Social Responsibility 185 The Case of Malden Mills 185 Privately Owned, Small and Medium-Sized Businesses 187 Concept of the Corporation: Shareholder versus Stakeholder 190 Moral Responsibility Within the Corporation 192 Corporate Social Responsibility 198 Corporate Codes 206 Corporate Culture and Moral Firms 208 Study Questions 209 Chapter 11: Corporate Governance, Disclosure, and Executive Compensation 211 The Enron Case 211 Corporate Governance 213 Corporate Disclosure 218 Insider Trading 224 Executive Compensation 233 Study Questions 237 Chapter 12: Finance, Accounting, and Investing 239 The case of Lehman Brothers 239 Mortgages, Risk, and Financial Institutions 241 Corporate Takeovers and Restructuring 249 Accounting 257 Ethical Investing 261 Study Questions 268 Chapter 13: Safety, Risk, and Environmental Protection 270 The McDonald's Polystyrene Case 270 Corporations, Products, and Services 271 Do No Harm 272 Safety and Acceptable Risk 273 Product Safety and Corporate Liability 276 Strict Liability 277 Production Safety 279 The Transfer of Dangerous Industries to Less Developed Countries 280 Environmental Harm 287 Pollution and Its Control 289 Global Warming and the Kyoto Protocol 294 Study Questions 296 Chapter 14: Whistle-Blowing 298 The Ford Pinto Case 298 Blowing the Whistle 299 Kinds of Whistle-Blowing 300 Whistle-Blowing as Morally Prohibited 303 Whistle-Blowing as Morally Permitted 306 Whistle-Blowing as Morally Required 310 Internal Whistle-Blowing 312 Precluding the Need for Whistle-Blowing 316 Study Questions 317 Chapter 15: Marketing, Truth, and Advertising 319 Case Study: Direct-to-Consumer Drug Advertising 319 The Nestle Infant Milk Formula Case 321 Marketing 322 Advertising 332 Truth and Advertising 334 Manipulation and Coercion 338 Paternalism and Advertising 340 Prevention of Advertising 342 Allocation of Moral Responsibility in Advertising 343 Study Questions 346 Chapter 16: Workers' Rights: Employment, Discrimination, and Affirmative Action 348 The Case of the 2008 Presidential Election: The End of Affirmative Action? 348 Employment-at-Will 349 Rights in Hiring, Promotion, and Firing 351 Discrimination, Affirmative Action, and Reverse Discrimination 354 Discrimination 356 Changing Social Structures 361 Equal Employment Opportunity 362 Affirmative Action 364 Reverse Discrimination 367 Balanced or Preferential Hiring 368 Study Questions 374 Chapter 17: Workers' Rights and Duties Within a Firm 376 Case Study: Drug and Polygraph Testing at Company X 376 The Rights of Employees Within a Firm 377 Employee Civil Rights and Equal Treatment 378 The Right to a Just Wage 381 Privacy, Polygraphs, and Drugs 388 Employee Duties Worker Loyalty and Obedience 395 The Right to Organize: Unions 396 The Right to Strike 399 Study Questions 403 Chapter 18: Workers' Rights and International Business 405 Nike: A Case Study 405 Child Labor 406 Sweatshops 409 Outsourcing and International Business 412 Migrant and Illegal Workers 413 Discrimination, Corrupt Governments, and Multinationals 417 The Right to Work 422 Study Questions 426 Chapter 19: The Information Age: Property and New Technologies 428 Two Intellectual Property Cases 428 Intellectual Property 431 Property: Information and Software 440 Patents and Pharmaceutical Drugs 451 Study Questions 453 Chapter 20: Information, Computers, the Internet, and Business 455 The Electronic Privacy at ABC Control Case 455 Business and Computers 456 Computer Crime 457 Computers and Corporate Responsibility 464 Computers and Privacy 466 The Changing Nature of Work 475 Study Questions 478 Chapter 21: Global Issues and International Obligations 480 The Case of Merck and Costa Rica 480 Global Issues 481 Famine, Malnutrition, and Moral Obligation 482 Cosmopolitanism and Poverty 488 Property and Allocation of the World's Resources 490 Global Common Goods 497 Oil and the Depletion of Natural Resources 498 Study Questions 505 Conclusion Chapter 22: The New Moral Imperative for Business 507 The End of an Era: A Case Study 507 The Changing Business Mandate 509 Quality of Work Life 513 The Role of Government 517 Corporate Democracy and the New Entrepreneur 519 Building a Good Society 520 Study Questions 522
