Part One Basic Principles
CHAPTER 1 Ethics and Business
Introduction
1.1 Business Ethics and Its Issues
Morality
Ethics
Business Ethics
Globalization, Multinationals, and Business Ethics
Business Ethics and Cultural Differences
ON THE EDGE: Business Ethics in Saudi CultureTechnology and Ethics
1.2 Moral Development and Moral Reasoning
Moral Development
ON THE EDGE: WorldCom's Whistleblower
Moral Reasoning
Analyzing Moral Reasoning
1.3 Arguments for and Against Business Ethics
Three Objections to Bringing Ethics into Business
The Case for Ethics in Business
1.4 Moral Responsibility and Blame
ON THE EDGE: Was National Semiconductor Morally Responsible?
Corporate Responsibility
ON THE EDGE: Gun Manufacturers and Responsibility
Subordinates’ Responsibility
Cases for DiscussionChild Slavery in the Chocolate Industry
Enron's Fall [ABC Video CDROM]
Web Resources
CHAPTER 2 Ethical Principles in Business
Introduction
2.1 Utilitarianism: Weighing Social Costs and Benefits
Traditional Utilitarianism
Measurement Problems
Utilitarian Replies to Measurement Objections
Problems with Rights and Justice
Utilitarian Replies to Objections on Rights and Justice
2.2 Rights and Duties
ON THE EDGE: Working for Eli Lilly & CompanyThe Concept of a Right
Negative and Positive Rights
Contractual Rights and Duties
A Basis for Moral Rights: Kant
The First Formulation of Kant’s Categorical Imperative
The Second Formulation of Kant’s Categorical Imperative
Problems with Kant
The Libertarian Objection: Nozick
ON THE EDGE: Conflict Diamonds2.3 Justice and Fairness
Distributive Justice
Justice as Equality: Egalitarianism
Justice Based on Contribution: Capitalist Justice
Justice Based on Needs and Abilities: Socialism
ON THE EDGE: ExxonMobil, Amerada Hess, and Marathon Oil in Equatorial Guinea
Justice as Freedom: Libertarianism
Justice as Fairness: Rawls
Retributive Justice
Compensatory Justice
2.4 The Ethics of Care
Partiality and Care
Objections to Care
2.5 Integrating Utility, Rights, Justice, and Caring
2.6 An Alternative to Moral Principles: Virtue Ethics
The Nature of Virtue
The Moral Virtues
Virtues, Actions, and Institutions
Virtues and Principles
2.7 Morality in International Contexts
Cases for DiscussionPublius
Unocal in Burma [ABC Video CDROM]
Web Resources
Part Two The Market and Business
CHAPTER 3 The Business System: Government, Markets, and International Trade.
Introduction
Economic Systems
3.1 Free Markets and Rights: John Locke
Criticisms of Lockean Rights
3.2 Free Markets and Utility: Adam Smith
Criticisms of Adam Smith
The Keynesian Criticism
The Utility of Survival of the Fittest: Social Darwinism
3.3 Free Trade and Utility: David Ricardo
Criticisms of Ricardo
3.4 Marx and Justice: Criticizing Markets and Trade
Alienation
ON THE EDGE: Napster’s, Grokster’s, and Streamcast’s RevolutionThe Real Purpose of Government
ON THE EDGE: Brian’s Franchise
3.5 Conclusion: The Mixed Economy
Property Systems and New Technologies
The End of Marxism?
Cases for DiscussionGlaxoSmithKline, Bristol-Myers Squibb, and AIDS in Africa [ABC Video CDROM]
Accolade versus Sega
Web Resources
CHAPTER 4 Ethics in the Marketplace
Introduction
4.1 Perfect Competition
Equilibrium in Perfectly Competitive Markets
Ethics and Perfectly Competitive Markets
4.2 Monopoly Competition
Monopoly Competition: Justice, Utility, and Rights
ON THE EDGE: Drug Company Monopolies and Profits4.3 Oligopolistic Competition
Explicit Agreements
Tacit Agreements
Bribery
4.4 Oligopolies and Public Policy
ON THE EDGE: Fixing the Computer Memory Market
The Antitrust View
ON THE EDGE: Oracle And PeoplesoftThe Regulation View
Cases For Discussion Playing Monopoly: Microsoft [ABC Video CDROM] Archer Daniels Midland and the Friendly CompetitorsWeb Resources
Part Three Business and Its External Exchanges: Ecology and Consumers
CHAPTER 5 Ethics and the Environment
Introduction
5.1 The Dimensions Of Pollution and Resource Depletion
ON THE EDGE: The Aroma of Tacoma
Water Pollution
Depletion of Species and Habitats
Depletion of Fossil Fuels
Depletion of Minerals
ON THE EDGE: The Auto Companies in China
5.2 The Ethics of Pollution Control
Ecological Ethics
Environmental Rights and Absolute Bans
Utilitarianism and Partial Controls
Private Costs and Social Costs
Remedies: The Duties of the Firm
Justice
Costs and Benefits
Social Ecology, Ecofeminism, and the Demands of Caring
5.3 The Ethics of Conserving Depletable Resources
Rights of Future Generations
Justice to Future Generations
ON THE EDGE: Exporting PoisonEconomic Growth?
Cases for DiscussionThe Ok Tedi Copper Mine
Gas or Grouse? [ABC Video CDROM]Web Resources
CHAPTER 6 The Ethics of Consumer Production and Marketing
Introduction
6.1 Markets and Consumer Protection
6.2 The Contract View of Business’ Duties to Consumers
The Duty to Comply
The Duty of Disclosure
The Duty Not to Misrepresent
The Duty Not to Coerce
Problems with the Contractual Theory
ON THE EDGE: The Tobacco Companies and Product Safety
6.3 The Due Care Theory
The Duty to Exercise Due Care
Problems with “Due Care”
6.4 The Social Costs View of the Manufacturer’s Duties
ON THE EDGE: Advertising Death?
Problems with the Social Costs View
6.5 Advertising Ethics
A Definition
Social Effects of Advertising
Advertising and the Creation of Consumer Desires
Advertising and Its Effects on Consumer Beliefs
ON THE EDGE: New Balance and the "Made in USA" label
6.6 Consumer Privacy
Cases for Discussion Becton Dickinson and Needle SticksThe Ford/Firestone Debacle [ABC Video CDROM]
Web Resources
Part Four Business and Its Internal Constituencies: Employee Issues
CHAPTER 7 The Ethics of Job Discrimination
Introduction
7.1 Job Discrimination: Its Nature
Forms of Discrimination: Intentional and Institutional Aspects
ON THE EDGE: Johnson Controls' Fetal Protection Policy
7.2 Discrimination: Its Extent
Average Income Comparisons
Lowest Income Group Comparisons
Desirable Occupation Comparisons
7.3 Discrimination: Utility, Rights, and Justice
Utility
Rights
Justice
Discriminatory Practices
on the edge: Wall Street: It's A Man's WorldSexual Harassment
Beyond Race and Sex: Other Groups
ON THE EDGE: Peter Oiler and Winn Dixie Stores
7.4 Affirmative Action
Affirmative Action as Compensation
Affirmative Action as an Instrument for Achieving Social Goals
Implementing Affirmative Action and Managing Diversity
Comparable Pay for Jobs of Comparable Worth
Conclusions
Cases for Discussion
Should Kroger Pay Now for What Ralphs' Employee Did Then? [ABC Video CDROM]Wal-Mart Women
Web Resources
CHAPTER 8 The Individual in the Organization
Introduction
8.1 The Rational Organization
8.2 The Employee’s Obligations to the Firm
Conflicts of Interest
Employee Theft and Computers
Insider Trading
8.3 The Firm’s Duties to the Employee
Wages
Working Conditions: Health and Safety
Working Conditions: Job Satisfaction
8.4 The Political Organization
8.5 Employee Rights
Freedom of Conscience
The Right to Participate and Participatory Management
The Right to Due Process versus Employment at Will
ON THE EDGE: Employment at Will at Howmet Corporation?
Employee Rights and Plant Closings
ON THE EDGE: Swingline Moves
Unions and the Right to Organize
8.6 Organizational Politics
The Ethics of Political Tactics
8.7 The Caring Organization
Cases for Discussion Gap's Labor Problems [ABC Video CDROM]Who Should Pay?
Web Resources
Manuel Velasquez is the former Director of Santa Clara University’s Markkula Center for Applied Ethics. He is now chair of the Department of Management at the Leavey School of Business at SCU. He is the author of numerous scholarly articles on Business Ethics.
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