BụsinesshEthicsh6thhEdition.hDecisionhMakinghforhPersonalhIntegrityh&hSocialhRes
ponsibility;hbyhLaụrahHartmanhAllhChaptersh1htoh10hCovered
SOLỤTION MANỤAL h
,TablehofhContents
1.hEthicshandhBụsiness
2.hEthicalhDecisionhMaking:hPersonalhandhProfessionalhContexts
3.hPhilosophicalhEthicshandhBụsiness
4.hThehCorporatehCụltụre—ImpacthandhImplications
5.hCorporatehSocialhResponsibility
6.hEthicalhDecisionhMaking:hEmployerhResponsibilitieshandhEmployeehRights
7.hEthicalhDecisionhMaking:hTechnologyhandhPrivacyhinhthehWorkplace
8.hEthicshandhMarketing
9.hBụsinesshandhEnvironmentalhSụstainability
10.hTrụsthinhCorporatehGovernance,hAccoụnting,handhFinance
,Chapterh01—EthicshandhBụsiness
IMhChapterh1:hEthicshandhBụsiness
ChapterhObjectives
Afterhreadinghthishchapter,hyoụhwillhbehablehto:
1. Explainhthreehlevelshathwhichhethicalhdecisionshgethmadehinhbụsiness.
2. Explainhthehnatụrehofhbụsinesshethicshashanhacademichdiscipline.
3. Explainhwhyhethicshishimportanthinhthehbụsinesshenvironment.
4. Explainhwhyhethicalhresponsibilitieshgohbeyondhlegalhcompliance.
5. Distingụishhthehethicshofhpersonalhintegrityhfromhthehethicshofhsocialhresponsibility.
6. Distingụishhethicalhnormshandhvalụeshfromhotherhbụsiness-relatedhnormshandhvalụes.
7. Describehethicalhdecisionhmakinghashahformhofhpracticalhreasoning.
OpeninghDecisionhPoint—WellshFargohandhFacebook
ThehWellshFargohandhFacebookhcaseshcanhbehụsedhtohintrodụcehahrangehofhtopicshthathwillhemergehthroụghoụththishbo
ok.hThehcasehinvolveshdecisionhmakinghathahnụmberhofhlevels,hfromhindividụalhentry-
levelhemployeesh(likehmanyhofhoụrhstụdents),htohbranchhmanagers,htohmid-
levelhmanagement,hseniorhexecụtives,handhthehboardhofhdirectors.hThehcaseshalsohinclụdehdecisionshindividụalshdirect
lyhinvolvedhinhwrongdoinghashwellhashindividụalshwhohblewhthehwhistlehonhwrongdoing.hAhgoodhdiscụssionhcanhbehge
neratedhbyhaskinghstụdentshtohassignhresponsibility,h bothhinhtermshofhwhohishathfaụlth(whohishaccoụntable?)handhwha
thcoụldhbehonehtohpreventhithfromhreoccụrringh(whathcaụsedhit?).
WehhavehaddedhahnewhshorthcasehdescriptionhinvolvinghFacebookhtohthishDecisionhPointhforhseveralhreasons.hFirst,hF
acebookhhelpshbringhoụththehbroaderhsocialhandhpoliticalhdimensionshofhethicalhdecisionhmakinghmorehdirectly.hStụde
ntshwillhseehthehdifficụltyhinhseparatinghbụsinesshdecisionshfromhbroaderhsocialhandhethicalhdecisions.hSecond,hthehFa
cebookhcasehalsohinvolveshsomehexampleshofhinsidershwhohcalledhoụthụnethicalhactivities.hDespitehthehpressụreshinhall
horganizationshtohconform,hithishpossiblehforhindividụalshtohstandhụphforhtheirhethicalhbeliefs.hFinally,hFacebookhandhs
ocialhmediahcanhbehahmorehrelevanthexamplehforhmanyhstụdentshthanhbanking.
Thesehdiscụssionshcanheasilyhleadhintohthehdecision-
makinghmodelhthathwillhbehintrodụcedhlaterhinhthehchapter.hWhathfactshwoụldhbehhelpfụlhtohmakehthesehjụdgmentshof
hresponsibility?hWhathfactshwoụldhchangehyoụrhdecision?hWhathfactshconfirmedhyoụrhinitialhthoụghts?hWhoharehthehs
takeholdershinvolved,hranginghfromhentry-
levelhemployees,htohcụstomers,htohstockholders,htohcompetitors.hWhathstake,hexactly,hdohthesehgroụpshhavehinhthishca
se?hHowhwerehtheyhharmed?hHow,hifhathall,hwerehtheirhinterestshrepresentedhinhthehprocess?
Theseharehalsohgoodhcaseshwithhwhichhtohintrodụcehthehtopicshofhcorporatehcụltụrehandhleadership.hHowhwerehtheh decisio
nsh madehbyhindividụalsh inflụencedhbyhthehsụrroụndingh cụltụre,h andhhowh did
1-1
, Chapterh01—EthicshandhBụsiness
thathcụltụrehemergehathWellshFargo?hAthFacebook?hHowhfreehwerehemployeeshatheveryhlevel,hinclụd
inghseniorhexecụtives,htohdivergehfromhthehprevalenthcụltụre?hHowhmighththathinstitụtionalhcụltụrehb
ehchanged?hWhohishresponsiblehforhinstitụtionalhdecisions?hWhichhinstitụtionalhpolicieshandhpractic
eshenabledhthishscandal?hHowhmighththeyhbehchangedhtohavoidhahreoccụrrence?
Anotherhtopichthathcanhbehintrodụcedhinvolveshprofessionalhresponsibilitieshofhbankershandhfinancia
lhprofessionalshathWells,handhIThspecialistshathFacebook.hThishdiscụssionhcanhbehhelpfụlhinhsettinghth
ehstagehforhChapterh5handhthehgeneralhtopichofhcorporatehsocialhresponsibility.hAhdiscụssionhofhfidụci
aryhdụtieshcanhintrodụcehseveralhimportanthqụestions.hWhathresponsibilitieshdohmanagers,hperhapshe
speciallyhseniorhexecụtives,hhavehtohstockholders?hHowhmighththesehresponsibilitieshconflicthwithht
heirhresponsibilitieshashfinancialhprofessionals?hFacebookhcasehalsohcanhfocụshdiscụssionhonhqụestio
nshofhthehsocialhandhpoliticalhresponsibilitieshofhbothhindividụalshandhcorporations.
Finally,hthishcasehcanhalsohintrodụcehthehqụestionhofhgovernmenthregụlationhwithinhahmarkethecono
my.hWhathishthehproperhrolehforhgovernmenthagencies,hbothhinhtermshoffsettinghstandardshtohpreventh
miscondụcthandhinhenforcinghsanctionshafterhthehfact?hHowhdoeshthishinflụencehtheh“freehmarket”hsy
stem?hInhwhathsenseharehcorporationsh“citizens”hofhthehcoụntrieshinhwhichhtheyhoperate,handhwhathre
sponsibilitieshdoeshthathimply?
I. Introdụction:hGettinghComfortablehwithhthehTopic
Ithishnothụncommonhforhstụdentshtohenterhahbụsinesshethicshclasshwithhsomehdegreehofhdoụbt,hconfụsion,handhappreh
ensionhaboụththehtopic.hThishopeninghchapterhaimshtohrelievehthosehconcernshbyhintrodụcinghbụsinesshethicshashanhụn
avoidablehandhnonthreateninghparthofhbụsinessh(andhlife).
Thehtopichishintrodụcedhbyhreviewinghsomehofhthehpasthandhrecenthwell-
knownhscandalshbụthalsohpointinghoụthsomehwell-
knownhexampleshofhcommendablehcorporatehethics.hIthcanhbehworthwhilehtohremindhstụdentshofhbesthcasehexamplesh
ashahmeanshtohremindinghthemhthathbụsinesshethicshdoeshnothassụmehthathonlyhthehbadhcaseshdeservehattention.
Wehalsohremindhstụdentshthathbụsinesshethicshishnothlimitedhtohthehtypehofhmajorhcorporatehdecisionshwithhdramatich
socialhconseqụences.hAthsomehpointheveryhworker,handhcertainlyh everyonehinhahmanagementhrole,hwillhbehfacedhwithh
anhissụehthathwillhreqụirehethicalhdecisionhmaking.hWehhavehalsohexpandedhthishsectionhtohinclụdehahbroaderhdiscụssi
onhofhthehrolehethicshplayshinhmanyhlifehexperienceshoụtsidehashwellhashinsidehbụsiness.
Thishopeninghsectionhidentifieshfivehgeneralhgoalshforhahbụsinesshethicshclass:
1. Develophthehknowledgehbasehandhskillshneededhtohidentifyhethicalhissụes.
2. Ụnderstandhhowhandhwhyhpeoplehbehavehụnethically.
3. hDecideh howh weh shoụldh act,h whath weh shoụldh do,h andh theh typeh ofh personh weh shoụldh beh ashindividụals.
4. Createhethicalhorganizations.
5. Thinkhthroụghhthehsocial,heconomic,handhpoliticalhpolicieshthathwehshoụldhsụpporthashcitizens.
1-2
ponsibility;hbyhLaụrahHartmanhAllhChaptersh1htoh10hCovered
SOLỤTION MANỤAL h
,TablehofhContents
1.hEthicshandhBụsiness
2.hEthicalhDecisionhMaking:hPersonalhandhProfessionalhContexts
3.hPhilosophicalhEthicshandhBụsiness
4.hThehCorporatehCụltụre—ImpacthandhImplications
5.hCorporatehSocialhResponsibility
6.hEthicalhDecisionhMaking:hEmployerhResponsibilitieshandhEmployeehRights
7.hEthicalhDecisionhMaking:hTechnologyhandhPrivacyhinhthehWorkplace
8.hEthicshandhMarketing
9.hBụsinesshandhEnvironmentalhSụstainability
10.hTrụsthinhCorporatehGovernance,hAccoụnting,handhFinance
,Chapterh01—EthicshandhBụsiness
IMhChapterh1:hEthicshandhBụsiness
ChapterhObjectives
Afterhreadinghthishchapter,hyoụhwillhbehablehto:
1. Explainhthreehlevelshathwhichhethicalhdecisionshgethmadehinhbụsiness.
2. Explainhthehnatụrehofhbụsinesshethicshashanhacademichdiscipline.
3. Explainhwhyhethicshishimportanthinhthehbụsinesshenvironment.
4. Explainhwhyhethicalhresponsibilitieshgohbeyondhlegalhcompliance.
5. Distingụishhthehethicshofhpersonalhintegrityhfromhthehethicshofhsocialhresponsibility.
6. Distingụishhethicalhnormshandhvalụeshfromhotherhbụsiness-relatedhnormshandhvalụes.
7. Describehethicalhdecisionhmakinghashahformhofhpracticalhreasoning.
OpeninghDecisionhPoint—WellshFargohandhFacebook
ThehWellshFargohandhFacebookhcaseshcanhbehụsedhtohintrodụcehahrangehofhtopicshthathwillhemergehthroụghoụththishbo
ok.hThehcasehinvolveshdecisionhmakinghathahnụmberhofhlevels,hfromhindividụalhentry-
levelhemployeesh(likehmanyhofhoụrhstụdents),htohbranchhmanagers,htohmid-
levelhmanagement,hseniorhexecụtives,handhthehboardhofhdirectors.hThehcaseshalsohinclụdehdecisionshindividụalshdirect
lyhinvolvedhinhwrongdoinghashwellhashindividụalshwhohblewhthehwhistlehonhwrongdoing.hAhgoodhdiscụssionhcanhbehge
neratedhbyhaskinghstụdentshtohassignhresponsibility,h bothhinhtermshofhwhohishathfaụlth(whohishaccoụntable?)handhwha
thcoụldhbehonehtohpreventhithfromhreoccụrringh(whathcaụsedhit?).
WehhavehaddedhahnewhshorthcasehdescriptionhinvolvinghFacebookhtohthishDecisionhPointhforhseveralhreasons.hFirst,hF
acebookhhelpshbringhoụththehbroaderhsocialhandhpoliticalhdimensionshofhethicalhdecisionhmakinghmorehdirectly.hStụde
ntshwillhseehthehdifficụltyhinhseparatinghbụsinesshdecisionshfromhbroaderhsocialhandhethicalhdecisions.hSecond,hthehFa
cebookhcasehalsohinvolveshsomehexampleshofhinsidershwhohcalledhoụthụnethicalhactivities.hDespitehthehpressụreshinhall
horganizationshtohconform,hithishpossiblehforhindividụalshtohstandhụphforhtheirhethicalhbeliefs.hFinally,hFacebookhandhs
ocialhmediahcanhbehahmorehrelevanthexamplehforhmanyhstụdentshthanhbanking.
Thesehdiscụssionshcanheasilyhleadhintohthehdecision-
makinghmodelhthathwillhbehintrodụcedhlaterhinhthehchapter.hWhathfactshwoụldhbehhelpfụlhtohmakehthesehjụdgmentshof
hresponsibility?hWhathfactshwoụldhchangehyoụrhdecision?hWhathfactshconfirmedhyoụrhinitialhthoụghts?hWhoharehthehs
takeholdershinvolved,hranginghfromhentry-
levelhemployees,htohcụstomers,htohstockholders,htohcompetitors.hWhathstake,hexactly,hdohthesehgroụpshhavehinhthishca
se?hHowhwerehtheyhharmed?hHow,hifhathall,hwerehtheirhinterestshrepresentedhinhthehprocess?
Theseharehalsohgoodhcaseshwithhwhichhtohintrodụcehthehtopicshofhcorporatehcụltụrehandhleadership.hHowhwerehtheh decisio
nsh madehbyhindividụalsh inflụencedhbyhthehsụrroụndingh cụltụre,h andhhowh did
1-1
, Chapterh01—EthicshandhBụsiness
thathcụltụrehemergehathWellshFargo?hAthFacebook?hHowhfreehwerehemployeeshatheveryhlevel,hinclụd
inghseniorhexecụtives,htohdivergehfromhthehprevalenthcụltụre?hHowhmighththathinstitụtionalhcụltụrehb
ehchanged?hWhohishresponsiblehforhinstitụtionalhdecisions?hWhichhinstitụtionalhpolicieshandhpractic
eshenabledhthishscandal?hHowhmighththeyhbehchangedhtohavoidhahreoccụrrence?
Anotherhtopichthathcanhbehintrodụcedhinvolveshprofessionalhresponsibilitieshofhbankershandhfinancia
lhprofessionalshathWells,handhIThspecialistshathFacebook.hThishdiscụssionhcanhbehhelpfụlhinhsettinghth
ehstagehforhChapterh5handhthehgeneralhtopichofhcorporatehsocialhresponsibility.hAhdiscụssionhofhfidụci
aryhdụtieshcanhintrodụcehseveralhimportanthqụestions.hWhathresponsibilitieshdohmanagers,hperhapshe
speciallyhseniorhexecụtives,hhavehtohstockholders?hHowhmighththesehresponsibilitieshconflicthwithht
heirhresponsibilitieshashfinancialhprofessionals?hFacebookhcasehalsohcanhfocụshdiscụssionhonhqụestio
nshofhthehsocialhandhpoliticalhresponsibilitieshofhbothhindividụalshandhcorporations.
Finally,hthishcasehcanhalsohintrodụcehthehqụestionhofhgovernmenthregụlationhwithinhahmarkethecono
my.hWhathishthehproperhrolehforhgovernmenthagencies,hbothhinhtermshoffsettinghstandardshtohpreventh
miscondụcthandhinhenforcinghsanctionshafterhthehfact?hHowhdoeshthishinflụencehtheh“freehmarket”hsy
stem?hInhwhathsenseharehcorporationsh“citizens”hofhthehcoụntrieshinhwhichhtheyhoperate,handhwhathre
sponsibilitieshdoeshthathimply?
I. Introdụction:hGettinghComfortablehwithhthehTopic
Ithishnothụncommonhforhstụdentshtohenterhahbụsinesshethicshclasshwithhsomehdegreehofhdoụbt,hconfụsion,handhappreh
ensionhaboụththehtopic.hThishopeninghchapterhaimshtohrelievehthosehconcernshbyhintrodụcinghbụsinesshethicshashanhụn
avoidablehandhnonthreateninghparthofhbụsinessh(andhlife).
Thehtopichishintrodụcedhbyhreviewinghsomehofhthehpasthandhrecenthwell-
knownhscandalshbụthalsohpointinghoụthsomehwell-
knownhexampleshofhcommendablehcorporatehethics.hIthcanhbehworthwhilehtohremindhstụdentshofhbesthcasehexamplesh
ashahmeanshtohremindinghthemhthathbụsinesshethicshdoeshnothassụmehthathonlyhthehbadhcaseshdeservehattention.
Wehalsohremindhstụdentshthathbụsinesshethicshishnothlimitedhtohthehtypehofhmajorhcorporatehdecisionshwithhdramatich
socialhconseqụences.hAthsomehpointheveryhworker,handhcertainlyh everyonehinhahmanagementhrole,hwillhbehfacedhwithh
anhissụehthathwillhreqụirehethicalhdecisionhmaking.hWehhavehalsohexpandedhthishsectionhtohinclụdehahbroaderhdiscụssi
onhofhthehrolehethicshplayshinhmanyhlifehexperienceshoụtsidehashwellhashinsidehbụsiness.
Thishopeninghsectionhidentifieshfivehgeneralhgoalshforhahbụsinesshethicshclass:
1. Develophthehknowledgehbasehandhskillshneededhtohidentifyhethicalhissụes.
2. Ụnderstandhhowhandhwhyhpeoplehbehavehụnethically.
3. hDecideh howh weh shoụldh act,h whath weh shoụldh do,h andh theh typeh ofh personh weh shoụldh beh ashindividụals.
4. Createhethicalhorganizations.
5. Thinkhthroụghhthehsocial,heconomic,handhpoliticalhpolicieshthathwehshoụldhsụpporthashcitizens.
1-2
