Contents
Preface
ix
Acknowledgments
1
xi
Ethics in the World of Business
1
CASE 1.1 Johnson & Johnson: The Tylenol Crisis
INTRODUCTION 3
CASE 1.2
Four Business Decisions
3
BUSINESS DECISION MAKING 4
CASE 1.3 The Ethics of Hardball 12
ETHICS, ECONOMICS, AND LAW 13
ETHICS AND MANAGEMENT 18
MORALITY, ETHICS, AND ETHICAL THEORY
CASE 1.4
CASE 1.5
2
A Sticky Situation 23
Argus Incorporated: A Leasing Triangle
Utilitarianism
THE FORMS OF UTILITARIANISM
COST-BENEFIT ANALYSIS 39
CASE 2.2 Exporting Pollution
3
25
29
CASE 2.1 Lockheed in Japan 29
INTRODUCTION 30
TWO TYPES OF ETHICAL THEORIES
CLASSICAL UTILITARIANISM 34
CASE 2.3
22
31
36
44
Beech-Nut's Bogus Apple Juice
Kantian Ethics, Rights, and Virtue
45
49
CASE 3.1 Big Brother at Procter & Gamble
INTRODUCTION 51
49
iii
iv
Contents
KANT'S ETH ICAL TH EORY 51
THE CONCEPT OF A RIGHT 57
VIRTUE ETHICS 61
4
CASE 3.2
Clean Hands in a Dirty Business
CASE 3.3
An Auditor's Dilemma
Justice and the Market System
CASE 4.1
66
68
71
Green Giant Runs for the Border
INTRODUCTION 73
ARISTOTLE'S ANALYSIS OF JUSTICE
71
74
UTILITY AND JUSTICE 77
THE EGALITARIAN THEORY OF JOHN RAWLS
79
UTILITY AND THE MARKET SYSTEM 84
THE LIBERTARIAN JUSTIFICATION OF THE MARKET
5
CASE 4.2
Executive Compensation
CASE 4.3
Merck and AIDS in South Africa
Whistle-Blowing
CASE 5.1
89
93
95
101
Two Whistle-Blowers
101
INTRODUCTION 103
WHAT IS WHISTLE-BLOWING?
104
THE JUSTIFICATION OF WHISTLE-BLOWING 106
THE CONDITIONS FOR JUSTIFIED WHISTLE-BLOWING
111
IS THERE A RIGHT TO BLOW THE WHISTLE? 114
DEVELOPING A COMPANY WHISTLE-BLOWING POLICY
CASE 5.2 A Whistle-Blower Accepts a "Deal" 120
CASE 5.3
6
Better Late than Never?
121
Trade Secrets and Conflict of Interest
125
CASE 6.1 The Aggressive Ad Agency 125
INTRODUCTION 127
THE DEFINITION OF A TRADE SECRET 127
THE ARGUMENTS FOR TRADE SECRET PROTECTION
COMPETITOR INTELLIGENCE GATHERING 136
CONFLICT OF INTEREST
138
128
118
Contents
MANAGING CONFLICT OF INTEREST 147
CASE 6.2 The Conflict of an Insurance Broker
7
Procter & Gamble Goes Dumpster Diving
Privacy
155
CASE 7.1
Psychological Testing at Dayton Hudson
INTRODUCTION 156
CHALLENGES TO PRIVACY
151
155
157
THE CONCEPT OF PRIVACY
161
THE VALUE OF PRIVACY 164
THE PRIVACY OF EMPLOYEE RECORDS
PRIVACY ON THE INTERNET
8
150
CASE 6.3
168
173
CASE 7.2
CASE 7.3
Three Challenges to Employee Privacy
Ford Meter Box 180
CASE 7.4
Lotus MarketPlace: Households
181
Discrimination and Affirmative Action
CASE 8.1 Discrimination at Texaco
INTRODUCTION 189
WHAT IS DISCRIMINATION? 190
179
187
187
ETHICAL ARGUMENTS AGAINST DISCRIMINATION
AVOIDING DISCRIMINATION 198
AFFIRMATIVE ACTION 203
196
Conclusion 213
CASE 8.2 The Alaskan Salmon Cannery 213
CASE 8.3 The Walkout at Wilton's 215
9
Women and Family Issues
CASE 9.1
Jacksonville Shipyards
INTRODUCTION 221
SEXUAL HARASSMENT
CASE 9.2
219
219
222
Sexual Harassment or Business as Usual?
COMPARABLE WORTH 229
CASE 9.3 The Mommy Track 239
FAMILY AND WORK
CASE 9.4
240
Is Family-Friendly Always Fair?
245
228
v
vi
Contents
10
Unjust Dismissal
249
CASE 10.1 The Firing of Robert Greeley 249
INTRODUCTION 250
PROPERTY RIGHTS AND EMPLOYMENT AT WILL
251
PROPERTY RIGHTS AND DEMOCRACY 254
THE FREEDOM OF CONTRACT ARGUMENT 257
PROTECTING AGAINST UNJUST DISMISSAL
CASE 10.2
CASE 10.3
11
265
Waiving the Right to Sue 268
A "State-of-the-Art" Termination
269
Marketing, Advertising, and Product Safety
CASE 11.1
Dow Corning's Breast Implants
INTRODUCTION 275
ETHICAL ISSUES IN MARKETING
ADVERTISING
273
275
282
PRODUCT LIABILITY 293
CASE 11.2 Volvo's "Bear Foot" Misstep 303
CASE 11.3 The Target Marketing of Cigarettes
12
273
Occupational Health and Safety
CASE 12.1 The Regu lation of Benzene
304
311
311
INTRODUCTION 312
THE SCOPE OF THE PROBLEM 313
THE RIGHT TO A SAFE AND HEALTHY WORKPLACE
315
CASE 12.2 Whirlpool Corporation 321
THE RIGHT TO KNOW ABOUT AND REFUSE HAZARDOUS WORK
CASE 12.3 Johnson Controls, Inc. 329
THE PROBLEM OF REPRODUCTIVE HAZARDS
13
Ethics in Finance
CASE 13.1
339
Pacific Lumber Company
INTRODUCTION 340
FINANCIAL SERVICES 340
FINANCIAL MARKETS 345
INSIDER TRADING 350
339
330
322
Contents
HOSTILE TAKEOVERS 354
CASE 13.2 E. F. Hutton 362
CASE 13.3 Salomon Brothers
14
Ethics and Corporations
CASE 14.1
365
369
The Nun and the CEO
369
INTRODUCTION 371
CORPORATE SOCIAL RESPONSIBILITY
CORPORATE GOVERNANCE 381
372
CASE 14.2 Bath Iron Works 392
CORPORATE ETHICS PROGRAMS 394
CASE 14.3 Sears Auto Centers 402
CASE 14.4
15
Campbell Soup Company
404
International Business Ethics
411
CASE 15.1 Nike in Southeast Asia
INTRODUCTION 412
WHAT TO DO IN ROME 413
411
WAGES AND WORKING CONDITIONS
FOREIGN BRIBERY 427
CULTURAL DIFFERENCES 431
CASE 15.2 H. B. Fuller in Honduras
CASE 15.3
Index
Shell Oil in Nigeria
446
441
422
439
vii