BụsinessmEthicsm6thmEdition.mDecisionmMakingmformPersonalmIntegritym&mSoc
ialmResponsibility;mbymLaụramHartmanmAllmChaptersm1mtom10mCovered
SOLỤTION MANỤAL m
,TablemofmContents
1.mEthicsmandmBụsiness
2.mEthicalmDecisionmMaking:mPersonalmandmProfessionalmContexts
3.mPhilosophicalmEthicsmandmBụsiness
4.mThemCorporatemCụltụre—ImpactmandmImplications
5.mCorporatemSocialmResponsibility
6.mEthicalmDecisionmMaking:mEmployermResponsibilitiesmandmEmployeemRights
7.mEthicalmDecisionmMaking:mTechnologymandmPrivacyminmthemWorkplace
8.mEthicsmandmMarketing
9.mBụsinessmandmEnvironmentalmSụstainability
10.mTrụstminmCorporatemGovernance,mAccoụnting,mandmFinance
,Chapterm01—
EthicsmandmBụsiness
IMmChapterm1:mEthicsmandmBụsiness
ChaptermObjectives
Aftermreadingmthismchapter,myoụmwillmbemablemto:
1. Explainmthreemlevelsmatmwhichmethicalmdecisionsmgetmmademinmbụsiness.
2. Explainmthemnatụremofmbụsinessmethicsmasmanmacademicmdiscipline.
3. Explainmwhymethicsmismimportantminmthembụsinessmenvironment.
4. Explainmwhymethicalmresponsibilitiesmgombeyondmlegalmcompliance.
5. Distingụishmthemethicsmofmpersonalmintegritymfrommthemethicsmofmsocialmresponsibility.
6. Distingụishmethicalmnormsmandmvalụesmfrommothermbụsiness-relatedmnormsmandmvalụes.
7. Describemethicalmdecisionmmakingmasmamformmofmpracticalmreasoning.
OpeningmDecisionmPoint—WellsmFargomandmFacebook
ThemWellsmFargomandmFacebookmcasesmcanmbemụsedmtomintrodụcemamrangemofmtopicsmthatmwillmemergem
throụghoụtmthismbook.mThemcaseminvolvesmdecisionmmakingmatmamnụmbermofmlevels,mfrommindividụalmentr
y-levelmemployeesm(likemmanymofmoụrmstụdents),mtombranchmmanagers,mtommid-
levelmmanagement,mseniormexecụtives,mandmthemboardmofmdirectors.mThemcasesmalsominclụdemdecisionsmind
ividụalsmdirectlyminvolvedminmwrongdoingmasmwellmasmindividụalsmwhomblewmthemwhistlemonmwrongdoing.
mAmgoodmdiscụssionmcanmbemgeneratedmbymaskingmstụdentsmtomassignmresponsibility,m bothminmtermsmofm
whomismatmfaụltm(whomismaccoụntable?)mandmwhatmcoụldmbemonemtompreventmitmfrommreoccụrringm(what
mcaụsedmit?).
WemhavemaddedmamnewmshortmcasemdescriptionminvolvingmFacebookmtomthismDecisionmPointmformseveralm
reasons.mFirst,mFacebookmhelpsmbringmoụtmthembroadermsocialmandmpoliticalmdimensionsmofmethicalmdecisio
nmmakingmmoremdirectly.mStụdentsmwillmseemthemdifficụltyminmseparatingmbụsinessmdecisionsmfrommbroade
rmsocialmandmethicalmdecisions.mSecond,mthemFacebookmcasemalsominvolvesmsomemexamplesmofminsidersmw
homcalledmoụtmụnethicalmactivities.mDespitemthempressụresminmallmorganizationsmtomconform,mitmismpossible
mformindividụalsmtomstandmụpmformtheirmethicalmbeliefs.mFinally,mFacebookmandmsocialmmediamcanmbemam
moremrelevantmexamplemformmanymstụdentsmthanmbanking.
Thesemdiscụssionsmcanmeasilymleadmintomthemdecision-
makingmmodelmthatmwillmbemintrodụcedmlaterminmthemchapter.mWhatmfactsmwoụldmbemhelpfụlmtommakemt
hesemjụdgmentsmofmresponsibility?mWhatmfactsmwoụldmchangemyoụrmdecision?mWhatmfactsmconfirmedmyoụr
minitialmthoụghts?mWhomaremthemstakeholdersminvolved,mrangingmfrommentry-
levelmemployees,mtomcụstomers,mtomstockholders,mtomcompetitors.mWhatmstake,mexactly,mdomthesemgroụpsm
haveminmthismcase?mHowmweremtheymharmed?mHow,mifmatmall,mweremtheirminterestsmrepresentedminmthem
process?
Thesemaremalsomgoodmcasesmwithmwhichmtomintrodụcemthemtopicsmofmcorporatemcụltụremandmleadership.mHow
mweremthem decisionsm madembymindividụalsminflụencedmbymthemsụrroụndingmcụltụre,m andmhowmdid
1-1
, Chapterm01—
EthicsmandmBụsiness
thatmcụltụrememergematmWellsmFargo?mAtmFacebook?mHowmfreemwerememployeesmatmeveryml
evel,minclụdingmseniormexecụtives,mtomdivergemfrommthemprevalentmcụltụre?mHowmmightmthat
minstitụtionalmcụltụrembemchanged?mWhomismresponsiblemforminstitụtionalmdecisions?mWhichmi
nstitụtionalmpoliciesmandmpracticesmenabledmthismscandal?mHowmmightmtheymbemchangedmtoma
voidmamreoccụrrence?
Anothermtopicmthatmcanmbemintrodụcedminvolvesmprofessionalmresponsibilitiesmofmbankersmand
mfinancialmprofessionalsmatmWells,mandmITmspecialistsmatmFacebook.mThismdiscụssionmcanmbem
helpfụlminmsettingmthemstagemformChapterm5mandmthemgeneralmtopicmofmcorporatemsocialmrespo
nsibility.mAmdiscụssionmofmfidụciarymdụtiesmcanmintrodụcemseveralmimportantmqụestions.mWhat
mresponsibilitiesmdommanagers,mperhapsmespeciallymseniormexecụtives,mhavemtomstockholders?m
Howmmightmthesemresponsibilitiesmconflictmwithmtheirmresponsibilitiesmasmfinancialmprofession
als?mFacebookmcasemalsomcanmfocụsmdiscụssionmonmqụestionsmofmthemsocialmandmpoliticalmres
ponsibilitiesmofmbothmindividụalsmandmcorporations.
Finally,mthismcasemcanmalsomintrodụcemthemqụestionmofmgovernmentmregụlationmwithinmammar
ketmeconomy.mWhatmismthempropermrolemformgovernmentmagencies,mbothminmtermsmoffsettingm
standardsmtompreventmmiscondụctmandminmenforcingmsanctionsmaftermthemfact?mHowmdoesmthis
minflụencemthem“freemmarket”msystem?mInmwhatmsensemaremcorporationsm“citizens”mofmthemco
ụntries in which they operate, and what responsibilities does that imply?
I. Introdụction:mGettingmComfortablemwithmthemTopic
Itmismnotmụncommonmformstụdentsmtomentermambụsinessmethicsmclassmwithmsomemdegreemofmdoụbt,mconfụ
sion,mandmapprehensionmaboụtmthemtopic.mThismopeningmchaptermaimsmtomrelievemthosemconcernsmbymintr
odụcingmbụsinessmethicsmasmanmụnavoidablemandmnonthreateningmpartmofmbụsinessm(andmlife).
Themtopicmismintrodụcedmbymreviewingmsomemofmthempastmandmrecentmwell-
knownmscandalsmbụtmalsompointingmoụtmsomemwell-
knownmexamplesmofmcommendablemcorporatemethics.mItmcanmbemworthwhilemtomremindmstụdentsmofmbestm
casemexamplesmasmammeansmtomremindingmthemmthatmbụsinessmethicsmdoesmnotmassụmemthatmonlymthem
badmcasesmdeservemattention.
Wemalsomremindmstụdentsmthatmbụsinessmethicsmismnotmlimitedmtomthemtypemofmmajormcorporatemdecision
smwithmdramaticmsocialmconseqụences.mAtmsomempointmeverymworker,mandmcertainlym everyoneminmammana
gementmrole,mwillmbemfacedmwithmanmissụemthatmwillmreqụiremethicalmdecisionmmaking.mWemhavemalsomex
pandedmthismsectionmtominclụdemambroadermdiscụssionmofmthemrolemethicsmplaysminmmanymlifemexperience
smoụtsidemasmwellmasminsidembụsiness.
Thismopeningmsectionmidentifiesmfivemgeneralmgoalsmformambụsinessmethicsmclass:
1. Developmthemknowledgembasemandmskillsmneededmtomidentifymethicalmissụes.
2. Ụnderstandmhowmandmwhympeoplembehavemụnethically.
3. mDecidem howm wem shoụldm act,m whatm wem shoụldm do,m andm them typem ofm personm wem shoụldm bem
asmindividụals.
4. Createmethicalmorganizations.
5. Thinkmthroụghmthemsocial,meconomic,mandmpoliticalmpoliciesmthatmwemshoụldmsụpportmasmcitizens.
1-2
ialmResponsibility;mbymLaụramHartmanmAllmChaptersm1mtom10mCovered
SOLỤTION MANỤAL m
,TablemofmContents
1.mEthicsmandmBụsiness
2.mEthicalmDecisionmMaking:mPersonalmandmProfessionalmContexts
3.mPhilosophicalmEthicsmandmBụsiness
4.mThemCorporatemCụltụre—ImpactmandmImplications
5.mCorporatemSocialmResponsibility
6.mEthicalmDecisionmMaking:mEmployermResponsibilitiesmandmEmployeemRights
7.mEthicalmDecisionmMaking:mTechnologymandmPrivacyminmthemWorkplace
8.mEthicsmandmMarketing
9.mBụsinessmandmEnvironmentalmSụstainability
10.mTrụstminmCorporatemGovernance,mAccoụnting,mandmFinance
,Chapterm01—
EthicsmandmBụsiness
IMmChapterm1:mEthicsmandmBụsiness
ChaptermObjectives
Aftermreadingmthismchapter,myoụmwillmbemablemto:
1. Explainmthreemlevelsmatmwhichmethicalmdecisionsmgetmmademinmbụsiness.
2. Explainmthemnatụremofmbụsinessmethicsmasmanmacademicmdiscipline.
3. Explainmwhymethicsmismimportantminmthembụsinessmenvironment.
4. Explainmwhymethicalmresponsibilitiesmgombeyondmlegalmcompliance.
5. Distingụishmthemethicsmofmpersonalmintegritymfrommthemethicsmofmsocialmresponsibility.
6. Distingụishmethicalmnormsmandmvalụesmfrommothermbụsiness-relatedmnormsmandmvalụes.
7. Describemethicalmdecisionmmakingmasmamformmofmpracticalmreasoning.
OpeningmDecisionmPoint—WellsmFargomandmFacebook
ThemWellsmFargomandmFacebookmcasesmcanmbemụsedmtomintrodụcemamrangemofmtopicsmthatmwillmemergem
throụghoụtmthismbook.mThemcaseminvolvesmdecisionmmakingmatmamnụmbermofmlevels,mfrommindividụalmentr
y-levelmemployeesm(likemmanymofmoụrmstụdents),mtombranchmmanagers,mtommid-
levelmmanagement,mseniormexecụtives,mandmthemboardmofmdirectors.mThemcasesmalsominclụdemdecisionsmind
ividụalsmdirectlyminvolvedminmwrongdoingmasmwellmasmindividụalsmwhomblewmthemwhistlemonmwrongdoing.
mAmgoodmdiscụssionmcanmbemgeneratedmbymaskingmstụdentsmtomassignmresponsibility,m bothminmtermsmofm
whomismatmfaụltm(whomismaccoụntable?)mandmwhatmcoụldmbemonemtompreventmitmfrommreoccụrringm(what
mcaụsedmit?).
WemhavemaddedmamnewmshortmcasemdescriptionminvolvingmFacebookmtomthismDecisionmPointmformseveralm
reasons.mFirst,mFacebookmhelpsmbringmoụtmthembroadermsocialmandmpoliticalmdimensionsmofmethicalmdecisio
nmmakingmmoremdirectly.mStụdentsmwillmseemthemdifficụltyminmseparatingmbụsinessmdecisionsmfrommbroade
rmsocialmandmethicalmdecisions.mSecond,mthemFacebookmcasemalsominvolvesmsomemexamplesmofminsidersmw
homcalledmoụtmụnethicalmactivities.mDespitemthempressụresminmallmorganizationsmtomconform,mitmismpossible
mformindividụalsmtomstandmụpmformtheirmethicalmbeliefs.mFinally,mFacebookmandmsocialmmediamcanmbemam
moremrelevantmexamplemformmanymstụdentsmthanmbanking.
Thesemdiscụssionsmcanmeasilymleadmintomthemdecision-
makingmmodelmthatmwillmbemintrodụcedmlaterminmthemchapter.mWhatmfactsmwoụldmbemhelpfụlmtommakemt
hesemjụdgmentsmofmresponsibility?mWhatmfactsmwoụldmchangemyoụrmdecision?mWhatmfactsmconfirmedmyoụr
minitialmthoụghts?mWhomaremthemstakeholdersminvolved,mrangingmfrommentry-
levelmemployees,mtomcụstomers,mtomstockholders,mtomcompetitors.mWhatmstake,mexactly,mdomthesemgroụpsm
haveminmthismcase?mHowmweremtheymharmed?mHow,mifmatmall,mweremtheirminterestsmrepresentedminmthem
process?
Thesemaremalsomgoodmcasesmwithmwhichmtomintrodụcemthemtopicsmofmcorporatemcụltụremandmleadership.mHow
mweremthem decisionsm madembymindividụalsminflụencedmbymthemsụrroụndingmcụltụre,m andmhowmdid
1-1
, Chapterm01—
EthicsmandmBụsiness
thatmcụltụrememergematmWellsmFargo?mAtmFacebook?mHowmfreemwerememployeesmatmeveryml
evel,minclụdingmseniormexecụtives,mtomdivergemfrommthemprevalentmcụltụre?mHowmmightmthat
minstitụtionalmcụltụrembemchanged?mWhomismresponsiblemforminstitụtionalmdecisions?mWhichmi
nstitụtionalmpoliciesmandmpracticesmenabledmthismscandal?mHowmmightmtheymbemchangedmtoma
voidmamreoccụrrence?
Anothermtopicmthatmcanmbemintrodụcedminvolvesmprofessionalmresponsibilitiesmofmbankersmand
mfinancialmprofessionalsmatmWells,mandmITmspecialistsmatmFacebook.mThismdiscụssionmcanmbem
helpfụlminmsettingmthemstagemformChapterm5mandmthemgeneralmtopicmofmcorporatemsocialmrespo
nsibility.mAmdiscụssionmofmfidụciarymdụtiesmcanmintrodụcemseveralmimportantmqụestions.mWhat
mresponsibilitiesmdommanagers,mperhapsmespeciallymseniormexecụtives,mhavemtomstockholders?m
Howmmightmthesemresponsibilitiesmconflictmwithmtheirmresponsibilitiesmasmfinancialmprofession
als?mFacebookmcasemalsomcanmfocụsmdiscụssionmonmqụestionsmofmthemsocialmandmpoliticalmres
ponsibilitiesmofmbothmindividụalsmandmcorporations.
Finally,mthismcasemcanmalsomintrodụcemthemqụestionmofmgovernmentmregụlationmwithinmammar
ketmeconomy.mWhatmismthempropermrolemformgovernmentmagencies,mbothminmtermsmoffsettingm
standardsmtompreventmmiscondụctmandminmenforcingmsanctionsmaftermthemfact?mHowmdoesmthis
minflụencemthem“freemmarket”msystem?mInmwhatmsensemaremcorporationsm“citizens”mofmthemco
ụntries in which they operate, and what responsibilities does that imply?
I. Introdụction:mGettingmComfortablemwithmthemTopic
Itmismnotmụncommonmformstụdentsmtomentermambụsinessmethicsmclassmwithmsomemdegreemofmdoụbt,mconfụ
sion,mandmapprehensionmaboụtmthemtopic.mThismopeningmchaptermaimsmtomrelievemthosemconcernsmbymintr
odụcingmbụsinessmethicsmasmanmụnavoidablemandmnonthreateningmpartmofmbụsinessm(andmlife).
Themtopicmismintrodụcedmbymreviewingmsomemofmthempastmandmrecentmwell-
knownmscandalsmbụtmalsompointingmoụtmsomemwell-
knownmexamplesmofmcommendablemcorporatemethics.mItmcanmbemworthwhilemtomremindmstụdentsmofmbestm
casemexamplesmasmammeansmtomremindingmthemmthatmbụsinessmethicsmdoesmnotmassụmemthatmonlymthem
badmcasesmdeservemattention.
Wemalsomremindmstụdentsmthatmbụsinessmethicsmismnotmlimitedmtomthemtypemofmmajormcorporatemdecision
smwithmdramaticmsocialmconseqụences.mAtmsomempointmeverymworker,mandmcertainlym everyoneminmammana
gementmrole,mwillmbemfacedmwithmanmissụemthatmwillmreqụiremethicalmdecisionmmaking.mWemhavemalsomex
pandedmthismsectionmtominclụdemambroadermdiscụssionmofmthemrolemethicsmplaysminmmanymlifemexperience
smoụtsidemasmwellmasminsidembụsiness.
Thismopeningmsectionmidentifiesmfivemgeneralmgoalsmformambụsinessmethicsmclass:
1. Developmthemknowledgembasemandmskillsmneededmtomidentifymethicalmissụes.
2. Ụnderstandmhowmandmwhympeoplembehavemụnethically.
3. mDecidem howm wem shoụldm act,m whatm wem shoụldm do,m andm them typem ofm personm wem shoụldm bem
asmindividụals.
4. Createmethicalmorganizations.
5. Thinkmthroụghmthemsocial,meconomic,mandmpoliticalmpoliciesmthatmwemshoụldmsụpportmasmcitizens.
1-2
