Managing Business Ethics Straight Talk about How to Do It Right

Cover
Title Page
Copyright
Contents
Preface
Acknowledgments
Section I: Introduction
	1: Introducing Straight Talk about Managing Business Ethics: Where We’re Going and Why
		Introduction
		The Financial Disaster of 2008
			Borrowing Was Cheap
			Real Estate Became the Investment of Choice
			Mortgage Originators Peddled "Liar Loans"
			Banks Securitized the Poison and Spread It Around
			Those Who Were Supposed to Protect Us Didn’t
		Moving Beyond Cynicism
		Can Business Ethics Be Taught?
			Aren’t Bad Apples the Cause of Ethical Problems in Organizations?
			Shouldn’t Employees Already Know the Difference between Right and Wrong?
			Aren’t Adults’ Ethics Fully Formed and Unchangeable?
		This Book is About Managing Ethics in Business
		Ethics and the Law
		Why Be Ethical? Why Bother? Who Cares?
			Individuals Care about Ethics: The Motivation to Be Ethical
			Employees Care about Ethics: Employee Attraction and Commitment
			Managers Care about Ethics
			Executive Leaders Care about Ethics
			Industries Care about Ethics
			Society Cares about Ethics: Business and Social Responsibility
		The Importance of Trust
		The Importance of Values
		How This Book Is Structured
		Conclusion
		Discussion Questions
		Exercise: Your Cynicism Quotient
		Notes
Section II: Ethics and the Individual
	2: Deciding What’s Right: A Prescriptive Approach
		Ethics and the Individual
			Ethical Dilemmas
			Prescriptive Approaches to Ethical Decision Making in Business
			Eight Steps to Sound Ethical Decision Making in Business
			Practical Preventive Medicine
		Conclusion
		Discussion Questions
		Exercise: Clarifying Your Values
		Introducing the Pinto Fires Case
		Case: Pinto Fires
		Short Cases
		Notes
	3: Deciding What’s Right: A Psychological Approach
		Ethical Awareness and Ethical Judgment
		Individual Differences, Ethical Judgment, and Ethical Behavior
			Cognitive Moral Development
			Locus of Control
			Machiavellianism
			Moral Disengagement
		Facilitators of and Barriers to Good Ethical Judgment
			Thinking about Fact Gathering
			Thinking about Consequences
			Thinking about Integrity
			Thinking about Your Gut
			Unconscious Biases
			Emotions in Ethical Decision Making
		Toward Ethical Action
			Revisiting the Pinto Fires Case: Script Processing and Cost–Benefit Analysis
			Cost–Benefit Analysis
		Conclusion
		Exercise: Understanding Cognitive Moral Development
		Discussion Questions
		Short Case
		Notes
	4: Addressing Individuals’ Common Ethical Problems
		Identifying Your Values—and Voicing Them
		People Issues
			Discrimination
			Harassment, Sexual and Otherwise
		Conflicts of Interest
			What Is It?
			How We Can Think about This Issue
			Why Is It an Ethical Problem?
		Customer Confidence Issues
			What Is It?
			How We Can Think about This Issue
			Why Is It an Ethical Problem?
		Use of Corporate Resources
			What Is It?
			How We Can Think about This Issue
			Why Is It an Ethical Problem?
		When all Else Fails: Blowing the Whistle
			When Do You Blow the Whistle?
			How to Blow the Whistle
		Conclusion
		Discussion Questions
		Short Cases
		Notes
Section III: Managing Ethics in the Organization
	5: Ethics as Organizational Culture
		Introduction
		Organizational Ethics as Culture
			What Is Culture?
			Strong versus Weak Cultures
			How Culture Influences Behavior: Socialization and Internalization
		Ethical Culture: A Multisystem Framework
			Alignment of Ethical Culture Systems
		Ethical Leadership
			Executive Leaders Create Culture
			Leaders Maintain or Change Organizational Culture
		Other Formal Cultural Systems
			Selection Systems
			Values and Mission Statements
			Policies and Codes
			Orientation and Training Programs
			Performance Management Systems
			Organizational Authority Structure to Support Responsibility
			Decision‐Making Processes
		Informal Cultural Systems
			Role Models and Heroes
			Norms
			Rituals
			Myths and Stories
			Language
		Organizational Climates: Fairness, Benevolence, Self‐Interest, Principles
		Developing and Changing the Ethical Culture
			How an Ethical Culture Can Become an Unethical Culture
			Becoming a More Ethical Culture
		A Cultural Approach to Changing Organizational Ethics
			Audit of the Ethical Culture
			Cultural Systems View
			A Long‐Term View
			Assumptions about People
			Diagnosis: The Ethical Culture Audit
			Ethical Culture Change Intervention
		The Ethics of Managing Organizational Ethics
		Conclusion
		Discussion Questions
		Case: Culture Change at GM?
		Case: Culture Change at Texaco
		Case: An Unethical Culture in Need of Change: Tap Pharmaceuticals
		Case: "Bad to the Bone"
		Notes
	6: Managing Ethics and Legal Compliance
		Introduction
		Structuring Ethics Management
			Making Ethics Comprehensive and Holistic
			Managing Ethics: The Corporate Ethics Office
			Ethics and Compliance Officers
			The Ethics Infrastructure
			The Corporate Ethics Committee
		Communicating Ethics
			Basic Communications Principles
			Evaluating the Current State of Ethics Communications
			Multiple Communication Channels for Formal Ethics Communication
			Interactive Approaches to Ethics Communication
			Mission or Values Statements
			Organizational Policy
			Codes of Conduct
			Communicating Senior Management Commitment to Ethics
			Formal and Informal Systems to Resolve Questions and Report Ethical Concerns
		Using the Reward System to Reinforce the Ethics Message
		Evaluating the Ethics Program
			Surveys
		Values or Compliance Approaches
		Globalizing an Ethics Program
		Conclusion
		Discussion Questions
		Short Case
		Appendix: How Fines Are Determined under the U.S. Sentencing Guidelines
		Notes
	7: Managing for Ethical Conduct
		Introduction
		In Business, Ethics is about Behavior
			Practical Advice for Managers: Ethical Behavior
		Our Multiple Ethical Selves
			The Kenneth Lay Example
			The Dennis Levine Example
			Practical Advice for Managers: Multiple Ethical Selves
		Rewards and Discipline
			People Do What Is Rewarded and Avoid Doing What Is Punished
			People Will Go the Extra Mile to Achieve Goals Set by Managers
			How Goals Combined with Rewards Can Encourage Unethical Behavior
			Practical Advice for Managers: Goals, Rewards, and Discipline
			Recognize the Power of Indirect Rewards and Punishments
			Can Managers Really Reward Ethical Behavior?
			What About the Role of Discipline?
			Practical Advice for Managers: Discipline
		People Follow Group Norms
			"Everyone’s Doing It"
			Rationalizing Unethical Behavior
			Pressure to Go Along
			Practical Advice for Managers: Group Norms
		People Fulfill Assigned Roles
			The Zimbardo Prison Experiment
			Roles at Work
			Conflicting Roles Can Lead to Unethical Behavior
			Roles Can Also Support Ethical Behavior
			Practical Advice for Managers: Roles
		To Authority: People Do What They’re Told
			The Milgram Experiments
			Obedience to Authority at Work
			Practical Advice for Managers: Obedience to Authority
		Responsibility is Diffused in Organizations
			"Don’t Worry—We’re Taking Care of Everything"
			Diffusing Responsibility in Groups
			Diffusing Responsibility by Dividing Responsibility
			Diffusing Responsibility by Creating Psychological Distance
			Practical Advice for Managers: Personal Responsibility
		Stressed‐Out Employees are More Unethical
			Practical Advice for Managers: Stress
		Conclusion
			Am I Walking My Ethical Talk?
		Discussion Questions
		Case: Sears, Roebuck, and Co.: The Auto Center Scandal
		Short Case
		Notes
	8: Ethical Problems of Managers
		Introduction
			Managers and Employee Engagement
		Managing the "Basics"
			Hiring and Work Assignments
			Performance Evaluation
			Discipline
			Terminations
			Why Are These Ethical Problems?
			Costs
		Managing a Diverse Workforce
			Diversity
			Harassment
			Family and Personal Issues
			Why Are These Ethical Problems?
			Costs
		The Manager as a Lens
			The Buck Stops with Managers
			Managers Are Role Models
		Managing Up and Across
			Honesty Is Rule One
			Standards Go Both Ways
		Conclusion
		Discussion Questions
		Short Cases
		Notes
Section IV: Organizational Ethics and Social Responsibility
	9: Corporate Social Responsibility
		Introduction
		Why Corporate Social Responsibility?
		Types of Corporate Social Responsibility
			Economic Responsibilities
			Legal Responsibilities
			Ethical Responsibilities
			Philanthropic Responsibilities
		Triple Bottom Line and Environmental Sustainability
		Is Socially Responsible Business Good Business?
			The Benefit of a Good Reputation
			Socially Responsible Investors Reward Social Responsibility
			The Cost of Illegal Conduct
			The Cost of Government Regulation
			What the Research Says about Social Responsibility and Firm Performance
			Being Socially Responsible Because It’s the Right Thing to Do
		Conclusion
		Discussion Questions
		Case: Merck and River Blindness
		Short Case
		Notes
	10: Ethical Problems of Organizations
		Introduction
		Managing Stakeholders
		Key Stakeholder Groups
			Ethics and Consumers
			Ethics and Employees
			Ethics and Shareholders
			Ethics and the Community
		Key Ethical Issues Involving Multiple Stakeholders
			Product Safety
			Pricing Issues for Prescription Medications
			Environmental Catastrophes
			Additional Environmental Bombshells
			Why Are These Ethical Issues?
			Costs
		Classic Ethics Cases
			First: The Less-than-Ideal Examples
			Models to Consider and Admire
		Conclusion
		Short Cases
		Discussion Questions
		Notes
	11: Managing for Ethics and Social Responsibility in a Global Environment
		Introduction
		Focus on the Individual Expatriate Manager
			The Difficulties of Foreign Business Assignments
			The Need for Structure, Training, and Guidance
			Foreign Language Proficiency
			Learning about the Culture
			Recognizing the Power of Selective Perception
			Assumption of Behavioral Consistency
			Assumption of Cultural Homogeneity
			Assumption of Similarity
			How Different Are Ethical Standards in Different Cultures—Really?
			Development of Corporate Guidelines and Policies for Global Business Ethics
		The Organization in a Global Business Environment
			Deciding to Do Business in a Foreign Country
			Development of a Transcultural Corporate Ethic
		Conclusion
		Discussion Questions
		Short Case
		Case: Selling Medical Ultrasound Technology in Asia
		Case: Google Goes to China
		Notes
Index
EULA