Business and Its Environment

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ISBN: 9780130815613 | 0130815616
Cover: Hardcover
Copyright: 9/1/1999

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Taking a managerial perspective with respect to the subject matter and the cases provided, this book uses a structured and disciplinary approach to address a class of management issues of growing importance to the performance of companies. This approach brings together the disciplines of economics, political science, law, and ethics to provide a deeper understanding of the issues.

Preface

xix

PART I: STRATEGY AND THE NONMARKET ENVIRONMENT

(118)

The Market and Nonmarket Environments

(27)

Introduction

(1)

The Role of Management

(1)

The Market and Nonmarket Environments

(2)

The Four I's

(1)

The Nonmarket Environment of the Automobile Industry Safety

(4)

Safety

(1)

Air bags

(1)

Fuel economy

(1)

Alternative fuel vehicles

(1)

Emissions

(1)

Activist pressure

(1)

Media coverage

(1)

Liability

(1)

Taxes

(1)

Global warming

(1)

International trade

(1)

Labor relations

(1)

Sexual harassment

(1)

The Nonmarket Environment and Issue Agenda

(6)

Issues

(1)

Interests

(1)

Institutions

(1)

Information

(1)

The nonmarket issue agenda

(2)

Change in the Nonmarket Environment

(2)

Anticipating Nonmarket Issues

(1)

Example: Graduation Cards

(1)

The Nonmarket Issue Life Cycle

(2)

Summary

(1)

Cases

(7)

General Motors Like a Rock? (A)

(3)

An Emerging Issue: MTBE

(2)

The Nonmarket Environment of McDonald's

(2)

Integrated Strategy

(30)

Introduction

(1)

Strategy in the Nonmarket Environment

(4)

The importance of nonmarket strategy

(2)

Timing and the nonmarket issue life cycle

(1)

Integrated strategy

(1)

Microsoft

(8)

Nonmarket Assets and Competencies

(1)

Strategies and borders

(1)

Analysis of Nonmarket Issues

(2)

The level of analysis

(2)

Disciplinary foundations of nonmarket analysis

(1)

A Framework for the Analysis of Nonmarket Issues

(2)

Case: Citibank and Credit Cards for Undergraduates

(3)

Application of the framework

(3)

Citibank I

(1)

Citibank II

(1)

Organization of the Nonmarket Strategy Function

(1)

Summary

(1)

Cases

(8)

Envirotest Systems Corporation (A)

(4)

Personal Watercraft aka Jet Skis

(2)

Buffalo Savings Bank (A)

(2)

The News Media and Nonmarket Issues

(30)

Introduction

(1)

The Role of the News Media in Nonmarket Issues

(2)

Messages and Their Interpretation

(1)

A Theory of the News Media Coverage and Treatment

(4)

Intrinsic audience interest

(1)

Societal significance

(1)

Combining the perspectives

(2)

Extending the Theory

(2)

Newsworthiness

(1)

The audience

(1)

The cost of coverage

(1)

The Nature of the News Media

(4)

The news media as a business

(1)

The profession

(1)

Does the media treat issues selectively?

(1)

Bias and accuracy

(2)

Business Interactions with the News Media

(3)

The need for information

(1)

Media strategies

(1)

Coverage and responses

(1)

Developing relationships with the media

(1)

Media interviews

(1)

Strategies for Addressing Media Issues

(1)

Anticipatable issues

(1)

Unanticipated events

(1)

Recourse in Disputes with the Media

(6)

Private recourse

(1)

Example: The Body Shop

(1)

Recourse to the law: defamation and libel

(1)

Example: Proctor & Gamble and Neighbor to Neighbor

(2)

Other laws

(1)

Summary

(2)

Cases

(5)

The Alar Episode (A)

(1)

Veggie Libel Wars

(2)

Illinois Power Company (A)

(2)

Private Nonmarket Action

(29)

Introduction

(3)

Boycotts

(2)

Activist Strategies

(5)

Example: Pizza Hut and Helath Insurance Reform

(4)

Activist Organizations

(2)

Activist organizations and networks

(1)

Greenpeace

(1)

Interacting with Interest Groups and Activists

100

(4)

Strategy and negotiations

100

(1)

Example: Mitsubishi and the Logging of Tropical Rain Forests

101

(2)

Example: Negotiating with Activists: OnBank

103

(1)

Example: Mitsubishi and RAN

104

(1)

Summary

104

(2)

Cases

106

(13)

Shell, Greenpeace, and Brent Spar

106

(4)

Nike in Southeast Asia

110

(3)

Monsanto and the Synthetic Milk Hormone

113

(2)

Denny's and Customer Service

115

(4)

Part I Integrative Case: Calgene Inc. and Infrastructure Marketing

119

(8)

PART II: NONMARKET STRATEGIES AND GOVERNMENT INSTITUTIONS

127

(128)

Political Theory and Government Institutions

129

(36)

Introduction

129

(1)

Markets

129

(4)

The role and functioning of markets

129

(1)

Consumer surplus and economic rents

130

(3)

The Connection Between the Market and Nonmarket Environments

133

(2)

The demand for nonmarket action

133

(1)

The costs of nonmarket action

134

(1)

The free-rider problem and collective action

134

(1)

Social and Political Dilemmas

135

(2)

The prisoner's dream

135

(1)

Dilemmas, repeated encounters, and cooperation

136

(1)

Majority Rule-Based Institutions

137

(4)

Properties of majority rule

137

(1)

Arrow's impossibility theorem and political institutions

138

(1)

The median voter theorem

139

(1)

Committees in legislatures

140

(1)

Bargaining versus voting

141

(1)

Vote trading and pivotal voters

141

(1)

Institutions

141

(12)

Congress

142

(1)

The organization of Congress

142

(1)

The legislative process

143

(3)

Committees

146

(2)

Committee and individual power

148

(1)

Bargaining in political institutions

148

(1)

Delegation

148

(1)

Legislatures and their constituencies

148

(2)

Committee and personal staffs

150

(1)

State governments

151

(1)

Parties

151

(1)

The presidency and the executive branch

152

(1)

Courts

153

(1)

Politics and the Public Interest

153

(1)

The Politics of the Extension of Daylight Saving Time

154

(5)

The nature of political explanations

154

(1)

The legislative history of the extension

154

(1)

The Politics of daylight saving time

155

(2)

The role of information

157

(1)

An analytical characterization of the politics of daylight saving time

158

(1)

Summary

159

(2)

Cases

161

(4)

Summertime in the European Union

161

(1)

Repeal of the Luxury Tax

162

(1)

An Electoral Dilemma (A)

163

(1)

An Electoral Dilemma (B)

164

(1)

Political Analysis for Business

165

(27)

Introduction

165

(1)

A Framework for the Analysis of Political and Collective Action

166

(8)

Interests and interest groups

166

(1)

The amount of political action

167

(1)

The demand for political action

167

(2)

The costs of political and collective action

169

(1)

The effectiveness of group action

170

(1)

The distributive politics spreadsheet

170

(2)

The nature of political competition

172

(2)

Institutions and institutional officeholders

174

(1)

Moral Determinants of Collective and Political Action

174

(3)

Example: Boeing in a Pickle

174

(3)

Analysis of the Case Example

177

(8)

The nonmarket issue

177

(1)

Distributive consequences

177

(2)

Boeing's nonmarket agenda and objectives

179

(1)

The nature of the politics

179

(2)

Institutions and institutional officeholders

181

(2)

Nonmarket strategy formulation

183

(1)

The outcome

184

(1)

Summary

185

(1)

Appendix

186

(1)

Cases

187

(5)

Tobacco Politics

187

(2)

Scrubbers and Environmental Politics

189

(1)

Pizza Hut and the Legal Drinking Age

190

(2)

Formulating Political Strategies

192

(31)

Introduction

192

(1)

Responsible Political Action

192

(4)

Criticisms of business political activity

193

(3)

Political Strategy Formulation

196

(5)

Managers and political strategies

196

(1)

An approach to strategy formulation

197

(4)

Political Strategies

201

(11)

A representational strategy: Toshiba and trade sanctions

201

(3)

Majority building strategies

204

(2)

Multiple pivots

206

(1)

The nature of the politics and political strategy

206

(1)

Agenda setting

206

(1)

Informational strategies

207

(2)

Public officeholders as targets of political strategies

209

(1)

Example: China and Most Favored Nation Status

210

(1)

Political strategies in client and interest group politics

211

(1)

Summary

212

(2)

Cases

214

(9)

Federal Express (A)

214

(1)

Echelon and the Home Automation Standard (A)

215

(4)

The Section 936 Tax Credit

219

(4)

Implementing Political Strategies

223

(32)

Introduction

223

(1)

Lobbying

223

(6)

The nature of lobbying

224

(1)

Technical and politically relevant information

224

(2)

Access

226

(1)

Timing

227

(1)

Government allies

228

(1)

Controls on lobbying

228

(1)

Grassroots Strategies and the Constituent Connection

229

(2)

Mobilization

229

(1)

Business grassroots campaigns

230

(1)

The effectiveness of grassroots programs

231

(1)

Coalition Building

231

(5)

Example: Pacificare's Political Portfolio

232

(1)

Peak associations

233

(1)

Trade associations

233

(1)

Example: Calgene and Canola

234

(1)

Ad hoc coalitions

234

(1)

Example: Silicon Valley goes to Washington

235

(1)

Coalitions and consensus

236

(1)

Testimony

236

(2)

Example: Pharmaceutical Politics

237

(1)

Electoral Strategies

238

(3)

Election financing laws

238

(2)

The pattern of campaign contributions

240

(1)

Purposes of campaign contributions

240

(1)

Communication and Public Advocacy

241

(1)

Judicial strategies

242

(1)

Advisory panels and committees

243

(1)

Organizing for political effectiveness

244

(1)

Summary

244

(1)

Cases

245

(9)

Drexel Burnham Lambert and Junk Bond Politics

246

(1)

Envirotest Systems Corporation (B)

247

(2)

CAFE Standards

249

(5)

Appendix A: CAFE Formula

254

(1)

Appendix B: CAFE Standards under S. 1224

254

(1)

Part II Integrative Case: Proposition 211: Securities Litigation Referendum (A)

255

(10)

PART III: GOVERNMENT AND MARKETS

265

(142)

Antitrust: Economics, Law, and Politics

265

(42)

Introduction

265

(1)

Antitrust Law and Enforcement

266

(9)

The antitrust statutes

266

(2)

Example: Microsoft and monopoly

268

(2)

Exemptions

270

(1)

Government enforcement of the antitrust laws

270

(3)

Private antitrust actions

273

(1)

Per se violations and the rule of reason

274

(1)

Schools of Antitrust Thought

275

(7)

The structural approach

275

(3)

The Chicago school

278

(2)

The New 10 approach

280

(2)

Examples of the Differences in Antitrust Thought

282

(4)

Vertical arrangements

282

(2)

Predatory pricing and entry deterrence

284

(2)

Collusion and price fixing

286

(1)

Mergers and Merger Guidelines

286

(2)

State Antitrust Enforcement

288

(1)

Compliance

289

(1)

The Politics of Antitrust

289

(2)

Summary

291

(1)

Cases

292

(15)

Apple Computer and Mail-Order Sales

292

(1)

The Staples-Office Depot Merger?

293

(5)

The Microsoft Antitrust Case

298

(9)

Regulation: Law, Economics, and Politics

307

(29)

Introduction

307

(1)

Periods of Regulatory Change

308

(1)

The Constitutional Basis for Regulation

309

(1)

Regulatory Commissions and Agencies

310

(1)

The Nonmarket Environment of Regulatory Agencies

310

(3)

Delegation, Rule Making, Due Process, and Discretion

313

(2)

Example: The FCC and TV, Cable, and VCR Compatibility

315

(1)

Explanations for Regulation

315

(1)

Market Imperfections

316

(6)

Natural monopoly

316

(2)

Externalities

318

(1)

Public goods

318

(1)

Asymetric information

319

(1)

Moral hazard

320

(1)

Transactions costs

321

(1)

Government imperfections

322

(1)

The Political Economy of Regulation

322

(4)

Redistribution and cross-subsidization

324

(1)

Cost-of-service regulation

325

(1)

Deregulation

326

(3)

Telecommunications

326

(2)

Electric power

328

(1)

Auctions

329

(1)

Summary

329

(2)

Cases

331

(5)

Whirlpool and Energy Efficiency Standards (B): Rule Making

331

(2)

Sears and the Local Regulation of Advertising

333

(1)

The FCC and International Telephone Rates

334

(2)

Product Safety: Liability and Regulation

336

(36)

Introduction

336

(1)

The Product Safety Problem and Social Efficiency

337

(2)

Entitlements, Liability, and Social Efficiency

339

(4)

The Coase theorem

339

(1)

Entitlements and their protection

340

(1)

Transactions costs and the limits of the Coase theorem

341

(1)

The assignment of costs and the choice between liability and regulation

342

(1)

Products Liability Law

343

(12)

Products liability cases

343

(2)

The development of products liability law

345

(3)

Allowable defenses under strict liability

348

(1)

Damages

349

(1)

Imperfections in the liability system

350

(2)

Absolute liability

352

(1)

Example: Silicon breast implants

353

(1)

The politics of products liability

354

(1)

Product Safety Regulation

355

(4)

The Consumer Products Safety Commission

355

(3)

The nonmarket environment of the CPSC

358

(1)

Chain Saw Safety

359

(4)

The safety issue

359

(1)

Market imperfections

360

(2)

Channels of distribution and information provision

362

(1)

The Consumer Product Safety Commission's standard-setting efforts

362

(1)

Summary

363

(2)

Cases

365

(7)

Domino's Delivers (A)

365

(1)

California Space Heaters, Inc. (A)

366

(3)

Bic Disposable Butane Lighters

369

(3)

Environmental Protection: Economics, Politics, and Management

372

(35)

Introduction

372

(1)

Socially Efficient Regulation of Pollution Externalities

372

(7)

Tradable permits system

373

(3)

Global warming and emissions trading systems

376

(2)

Uncompensated damages

378

(1)

Implementing socially efficient regulation

378

(1)

The Environmental Protection Agency

379

(4)

Enforcement

381

(1)

Standard setting and engineering controls

381

(1)

Incentive approaches

382

(1)

Superfund

382

(1)

The Politics of Environmental Protection

383

(2)

NIMBY

385

(1)

EPA Strategy and Activism

386

(6)

The 1990 amendments to the Clean Air Act

388

(1)

Acid rain and tradable permits

388

(2)

Environmental politics: Scrubbers and the Clean Air Act Amendments

390

(2)

Management of Environmental Protection Issues

392

(5)

Internal management issues

393

(1)

McDonald's and waste reduction

394

(1)

Kodak and the recycling of single-use cameras

395

(1)

3M and pollution prevention pays

396

(1)

Summary

397

(2)

Cases

399

(8)

Philips and the Low-Mercury Fluorescent Lamp

399

(2)

Procter & Gamble and Disposable Diapers

401

(3)

Westlands Water District

404

(3)

Part III Integrative Case: Whirlpool and Energy Efficiency Standards (A): Regulation and Politics

407

(6)

PART IV: GLOBAL BUSINESS AND THE NONMARKET ENVIRONMENT

413

(143)

The Political Economy of Japan

415

(32)

Introduction

415

(1)

Issues

416

(1)

Interests

417

(1)

Institutions

418

(7)

The Diet (parliament)

418

(1)

Political parties and the electoral system

419

(4)

The bureaucracy

423

(2)

The Judicial System and the Antimonopoly Law

425

(1)

Cultural Foundations

426

(2)

Tying the Components Together: A Framework for Political Exchange

428

(2)

Political exchange

428

(2)

Characteristics of Business

430

(3)

The organization of business

430

(3)

Business-Government Interactions

433

(4)

The organization of business for political action

433

(1)

Political strategies

434

(1)

Relationships with the bureaucracy

435

(1)

Lobbying and points of access

435

(2)

Information

437

(1)

Relationships with Bureaucrats and Politicians

437

(2)

Coalition building

438

(1)

An incident

438

(1)

Corporate Political Styles

439

(1)

Summary

440

(2)

Cases

442

(5)

The Breakup of Nippon Telephone and Telegraph

442

(3)

Toys Us in Japan (A)

445

(2)

The Political Economy of the European Union

447

(38)

Introduction

447

(1)

The Union

447

(2)

The Single European Act

448

(1)

The Maastricht Treaty

449

(1)

Nonmarket Issues

449

(2)

Example: Data privacy

450

(1)

The Institutions of the European Union

451

(13)

The European Commission

451

(2)

The Council of Ministers

453

(1)

The European Parliament

454

(1)

The European Court of Justice

454

(1)

The Economic and Social Committee

455

(1)

The EU legislative process

455

(2)

Economic and monetary union

457

(1)

Competition policy

458

(2)

Privatization and market opening

460

(1)

State aids

461

(1)

The social charter and labor markets

461

(1)

Social democracy and labor

462

(1)

Competition among the states

462

(1)

Fortress Europe?

463

(1)

Interests and Their Organization

464

(1)

Nonmarket Strategies in the European Union

465

(4)

Example: Pronuptia and franchising

469

(1)

Germany

469

(5)

Institutions: The structure of government

470

(1)

The political economy of Germany

471

(2)

Interests and their organizations

473

(1)

Summary

474

(2)

Cases

476

(9)

The European Union Carbon Tax

476

(4)

Benetton, Advertising Protests, and Franchising

480

(1)

Toys Us in Germany

481

(1)

Toys Us in Sweden

482

(3)

China: History, Culture, and Political Economy

485

(28)

Introduction

485

(1)

Historical Background

485

(6)

Pre-republican

485

(2)

The Republican era

487

(1)

The Communist era

488

(3)

Confucianism and Social Explanations

491

(5)

Applications in Society, Politics, and Business

493

(3)

The Nonmarket Environment and the Four I's

496

(4)

State institutions

498

(2)

Provincial and local governments

500

(1)

Business: State-Owned Enterprises, International Trade, and Investment

500

(3)

State-owned enterprises

500

(1)

International trade

501

(1)

Foreign direct investment

502

(1)

Continuing Issues

503

(3)

Human rights and political reform

503

(3)

Summary

506

(1)

Cases

507

(6)

Wugang and the Reform of State-Owned Enterprises

507

(3)

Direct Marketing in China

510

(1)

Fresenius Medical Care in China

511

(2)

The Political Economy of International Trade Policy

513

(43)

Introduction

513

(2)

The Economics of Interntional Trade

515

(3)

Competitive theory

515

(2)

Strategic trade theory

517

(1)

The Political Economy of International Trade Policy

518

(3)

The dual nature of the politics of international trade

518

(1)

Asymmetrics in the politics

519

(2)

International Trade Agreements

521

(6)

The General Agreement on Tariffs and Trade and the World Trade Organization

521

(1)

General Agreement of Trade in Services (GATS)

522

(1)

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

523

(1)

Agriculture

523

(1)

Government procurement

524

(1)

Antidumping

524

(1)

Dispute settlement

524

(2)

The next round?

526

(1)

Other trade agreements

526

(1)

U.S. Trade Policy

527

(1)

The structure of U.S. trade policy

527

(1)

U.S. trade law and its administration

527

(1)

The Political Economy of Protectionism

528

(4)

Formal policies

528

(2)

Channels of protection

530

(1)

Example: Steel imports and the nonmarket campaign

530

(2)

The Political Economy of Market Opening

532

(2)

The North American Free Trade Agreement

532

(1)

Marketing opening and client politics

533

(1)

Market opening under the threat of retaliation

534

(1)

Summary

534

(2)

Appendix: U.S. Trade Law

536

(2)

Cases

538

(18)

The WTO and the Environment

538

(2)

Cemex and Antidumping

540

(6)

The Kodak-Fujifilm Trade Dispute

546

(10)

Part IV Integrative Case Toys Us and Globalization

556

(3)

PART V: ETHICS AND RESPONSIBILITY

559

(185)

Corporate Social Responsibility

561

(30)

Introduction

561

(2)

Example: Tuna and dolphins

562

(1)

The Role of Business in Society

563

(3)

The efficiency perspective

563

(1)

Concerns about the efficiency perspective

564

(1)

Market capitalism and managerial capitalism

565

(1)

The social responsibility perspective

565

(1)

Conceptions of the Social Responsibility of Business

566

(6)

The law

566

(1)

Corporate social responsibility as profit maximization

566

(3)

The Business Roundtable statement on social responsibility

569

(1)

An example of the difference between Friedman and the Business Roundtable

570

(1)

The stakeholder concept

571

(1)

Strategic Uses of Corporate Social Responsibility

572

(1)

Examples of Corporate Social Responsibility

573

(3)

Unocal Corporation and the dirty car bounty

573

(1)

ARCO and gasoline price restraints

574

(1)

Malden Mills Industries

574

(1)

Aetna and housing rehabilitation

575

(1)

South Shore Bank and community development

576

(1)

Social Responsibility: Motives and Causality

576

(3)

Corporate Governance

579

(4)

Constituent representation?

579

(1)

Social accountability

580

(1)

The duties of boards of directors

580

(2)

The market for control

582

(1)

Summary

583

(2)

Cases

585

(6)

Advanced Technology Laboratories, Inc.

585

(2)

Headquarters Relocation: Kimberly-Clark and the State of Wisconsin

587

(3)

Western National Bank

590

(1)

Ethical Systems: Utilitarianism and Management

591

(31)

Introduction

591

(1)

What Ethics Is and Is Not

592

(1)

Business Ethics

593

(1)

Ethics and Private Interests

594

(1)

Issue: integrity tests

594

(1)

Ethics, Politics, and Change

595

(1)

Casuistry

596

(1)

Example: Saving the Division

596

(1)

The Methodology of Ethical Analysis

597

(2)

The Relationship among Moral Philosophy, Ethics, and Political Philosophy

599

(1)

Utilitarianism: A Consequentalist System

600

(2)

Utilitarianism and self-interest

601

(1)

Utilitarianism, distribution, and altruism

601

(1)

Summary

602

(1)

Applied Utilitarianism---Cost-Benefit Analysis

602

(1)

Utilitarian duty and the calabresi and melamed principles

603

(1)

Act and Rule Utilitarianism

603

(3)

Simultaneous choice by several individuals

605

(1)

Utilitarianism and Rights

606

(1)

Criticisms of Utilitarianism

606

(2)

Utilitarianism in Application

608

(1)

Categories of situations

609

(1)

Methodology

609

(1)

Difficulties in the Implementation of Utilitarian Analysis

609

(5)

Identifying social costs and benefits

609

(1)

The measurement problem

610

(1)

The information problem

610

(1)

Example: Corporate social responsibility

611

(1)

Example: Integrity tests

612

(1)

Example: Insurance screening for pre-existing conditions

612

(1)

Example: Redlining

613

(1)

Summary

614

(1)

Cases

615

(7)

Living Benefits

615

(1)

Sex Differentiated Retirement Benefits

616

(2)

Pricing the Norplant® System

618

(4)

Ethical Systems: Rights and Justice

622

(35)

Introduction

622

(1)

Classification of Ethical Systems

622

(1)

Classes of Rights

623

(1)

Kantian Maxims or Moral Rules

624

(6)

The relationship between maxims and rights

626

(1)

Intrinsic and instrumental rights

627

(2)

Criticisms of Kantian rights

629

(1)

Applied Rights Analysis

630

(2)

Claimed and granted rights

630

(1)

A method for rights analysis

631

(1)

Conflict among Rights

632

(3)

Rights and interests

632

(1)

Prioritization

632

(1)

Example: Integrity tests

633

(2)

Neoclassical Liberalism

635

(1)

Categories of Justice Theories

636

(2)

Distributive justive

636

(1)

Compensatory justice

637

(1)

Injustice

638

(1)

Rawls's Theory of Justice

638

(8)

The framework for justice as fairness

638

(2)

The principles of justice

640

(1)

The role of incentives

641

(2)

Duty in Rawls's theory

643

(1)

Criticisms of Rawls's theory

643

(1)

The application of the principles of justice

644

(2)

Higher Order Standards for Evaluating Ethical Systems

646

(1)

Summary

647

(2)

Cases

649

(8)

Delta Instruments, Inc.

649

(1)

Genetic Testing in the Workplace

650

(2)

Governmental Justice and Pollution Credits Trading Systems

652

(5)

Implementing Ethics Systems

657

(29)

Introduction

657

(2)

Example: Levi Strauss & Co. and global sourcing

657

(2)

Moral Determinants of Nonmarket Action

659

(2)

Example: Buffalo Savings Bank (A) revisited

660

(1)

Tensions in the Implementation of Ethical Principles

661

(4)

Individual actions and responsibility for their consequences

661

(1)

Paternalism

662

(1)

Political action and restraint

663

(2)

Corporate Social Responsibility Revisited

665

(1)

Corporate Social Responsibility and Ethics in Practice

666

(12)

British Petroleum and global warming

666

(1)

Statements of commitment and expectations

667

(1)

Example: Johnson and Johnson's Our Credo

668

(1)

Core principles and their evolution

668

(1)

Levi Strauss & Co. business partner terms of engagement

669

(2)

Process

671

(1)

Maintaining a culture

671

(1)

The Body Shop and the social audit

672

(1)

Codes of conduct

673

(1)

Competitive and proprietary information

673

(1)

Principles and reasoning

674

(1)

Ethics programs

675

(1)

Compliance

676

(1)

Examples of implemented policies

677

(1)

Sources of Unethical Behavior

678

(2)

Summary

680

(1)

Cases

681

(5)

Circle K Corporation and Employee Health Care Costs (A)

681

(1)

Honda and Excess Demand

682

(2)

Levi Strauss & Co. Terms of Engagement Audits

684

(2)

Ethical Issues in the Employment Relationship

686

(30)

Introduction

686

(1)

Employment Rights

686

(3)

The evolution of employment rights

686

(1)

Employee rights in continuing jobs

687

(1)

Employee rights when jobs are being eliminated

688

(1)

Equal Employment Opportunity

689

(3)

The burden of proof

691

(1)

Affirmative Action

692

(3)

Preference and reverse discrimination

693

(2)

Americans with Disabilities Act

695

(1)

Sexual Harassment

696

(1)

Diversity

697

(1)

Women in Management

698

(1)

Company Programs

699

(1)

Organized Labor

700

(2)

Privacy and Drug Testing

702

(2)

Whistle-Blowing

704

(2)

Summary

706

(2)

Appendix: The Principal Equal Opportunity Laws

708

(2)

Cases

710

(6)

American Airlines and Weight Standards

710

(1)

Beards

711

(1)

Advanced Technology, Inc (ATI)

712

(4)

Ethical Issues in International Business

716

(28)

Introduction

716

(1)

International Law and Institutions

717

(1)

Cultural Relativism

718

(3)

Human Rights and Justice

721

(2)

Slave labor in Saipan?

722

(1)

Operating in Developing Countries

723

(3)

Sweatshops

724

(1)

International codes

725

(1)

Questionable Foreign Payments

726

(9)

Questionable payments and ethical principles

727

(1)

The Lockheed case

728

(1)

A utilitarian analysis of bribery

729

(1)

The Foreign Corrupt Practices Act

730

(1)

Company codes

731

(1)

Cummins practice

732

(2)

The OECD convention on combating bribery

734

(1)

Summary

735

(1)

Cases

736

(8)

Complications in Marnera

736

(2)

Marketing Infant Formula in Developing Countries

738

(1)

Levi Strauss & Co. in China

739

(3)

University Games, Inc.

742

(2)

Part V Integrative Case: Levi Strauss & Co. Global Sourcing Guidelines

744

(7)

References

751

(14)

Index

765

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Business and Its Environment

Summary

Table of Contents

Supplemental Materials