Managing Business Ethics: Straight Talk About How To Do It Right, 4th Edition

, by Linda K. Trevio (Pennsylvania State University, USA); Katherine A. Nelson (University of Pennsylvania, USA)

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ISBN: 9780471755258 | 0471755257
Cover: Paperback
Copyright: 8/1/2006

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Practical strategies for promoting ethical behavior Offering a highly realistic, down-to-earth look at ethics in the workplace, Linda Treviño and Kate Nelson's Managing Business Ethics will help you identify and solve ethical dilemmas, understand why people behave the way they do, and help you design a culture that will promote ethical behavior in your organization. Throughout, the emphasis is on common, real-life work situations, including hiring, managing, assessing performance, disciplining, firing, and providing incentives for staff, as well as producing quality products and services, and dealing effectively and fairly with customers, vendors, and other stakeholders. Highlights of the Fourth Edition * Updated information relates content to current events such as the U.S. Sentencing Guidelines for Corporations. * Describes the link between ethical culture and employee engagement. * Covers new research, including the role of emotions in ethical decision making. * Presents new profiles of organizations such as McWane, Enron, Citigroup, and Marsh & McLennan. * International references reflect the realities of the increasingly global business environment.

Preface

PART I INTRODUCTION TO BUSINESS ETHICS

Introducing Straight Talk About Managing Business Ethics: Where We're Going and Why

(21)

Introduction

(1)

Taking Away the Mystery

(1)

Moving beyond Cynicism

(4)

Tools to Manage Unethical Behavior

(1)

Focus on the Positive, the Ethical, and the Socially Responsible

(1)

Is Business Ethics Just a Fad?

(2)

Can Business Ethics Be Taught?

(6)

Aren't Bad Apples the Cause of Ethical Problems in Organizations?

(2)

Shouldn't Employees Already Know the Difference between Right and Wrong?

(1)

Aren't Adults' Ethics Fully Formed and Unchangeable?

(3)

This Book Is About Managing Ethics

(2)

Bringing Ethics Down to Size

(1)

Ethics and the Law

(1)

How the Book Is Structured

(1)

Conclusion

(1)

Discussion Questions

(1)

Exercise: Your Cynicism Quotient

(1)

Notes

(2)

Why Be Ethical? (Why Bother? Who Cares?)

(43)

Introduction

(1)

Why Be Ethical? Why Bother? Who Cares?

(1)

The Motivation to Be Ethical

(1)

The Media Focus on Ethics and Corporate Reputation

(2)

Industries Care About Ethics

(1)

Executive Leaders Care About Ethics

(1)

Managers Care About Ethics

(2)

Employees Care About Ethics: Employee Attraction and Commitment

(1)

Individuals Care About Ethics: Reputation Counts

(1)

Does Society Care? Business and Social Responsibility

(6)

Economic Responsibilities

(1)

Legal Responsibilities

(1)

Ethical Responsibilities

(2)

Philanthropic Responsibilities

(2)

Government Regulation of Business

(2)

Is Socially Responsible Business Good Business?

(11)

Socially Responsible Investors

(1)

Avoiding the Costs of Criminal Liability

(4)

The Importance of Trust

(2)

The Best and the Worst In Us

(5)

Conclusion

(1)

Discussion Questions

(1)

Case: Merck and River Blindness

(2)

Appendix: How Fines Are Determined under the U.S. Sentencing Guidelines

(2)

Notes

(5)

PART II ETHICS AND THE INDIVIDUAL

Common Ethical Problems

(29)

Introduction

(1)

Human Resources Issues

(6)

Discrimination

(3)

Harassment, Sexual and Otherwise

(2)

Conflicts of Interest

(4)

What Is It?

(2)

Why Is It an Ethical Problem?

(1)

Costs

(1)

Customer Confidence Issues

(4)

What Is It?

(4)

Why Is It an Ethical Problem?

(1)

Costs

(1)

Use of Corporate Resources

(4)

What Is It?

(3)

Why Is It an Ethical Problem?

(1)

Costs

(1)

When All Else Fails: Blowing the Whistle

(6)

When Do You Blow the Whistle?

(1)

How to Blow the Whistle

(4)

Conclusion

(1)

Discussion Questions

(2)

Notes

(2)

Deciding What's Right: A Prescriptive Approach

(26)

Introduction

(1)

The Layoff

(1)

Prescriptive Approaches to Ethical Decision Making in Business

(7)

Focus on Consequences (Consequentialist Theories)

(2)

Focus on Duties, Obligations, and Principles (Deontological Theories)

(3)

Focus on Integrity (Virtue Ethics)

101

(2)

Eight Steps to Sound Ethical Decision Making in Business

103

(6)

Step One: Gather the Facts

103

(1)

Step Two: Define the Ethical Issues

104

(1)

Step Three: Identify the Affected Parties (the Stakeholders)

105

(1)

Step Four: Identify the Consequences

106

(1)

Step Five: Identify the Obligations

107

(1)

Step Six: Consider Your Character and Integrity

108

(1)

Step Seven: Think Creatively about Potential Actions

108

(1)

Step Eight: Check Your Gut

109

(1)

Practical Preventive Medicine

109

(3)

Doing Your Homework

109

(1)

When You're Asked to Make a Snap Decision

110

(2)

Conclusion

112

(1)

Discussion Questions

112

(2)

Exercise: Clarifying Your Values

114

(1)

Case: Pinto Fires

115

(5)

Notes

120

(1)

Deciding What's Right: A Psychological Approach

121

(31)

Introduction

121

(1)

Moral Awareness and Moral Judgment

121

(3)

Individual Differences, Moral Judgment, and Ethical Behavior

124

(8)

Cognitive Moral Development

125

(6)

Locus of Control

131

(1)

Cognitive Barriers to Good Ethical Judgment

132

(5)

Thinking About Fact Gathering

132

(1)

Thinking About Consequences

133

(2)

Thinking About Integrity

135

(1)

Thinking About Your Gut

136

(1)

Emotions in Ethical Decision Making

137

(1)

Reflections on the Pinto Fires Case

138

(8)

Revisiting the Pinto Fires Case

142

(4)

Conclusion

146

(1)

Discussion Questions

146

(1)

Notes

147

(5)

PART III ETHICS AND THE MANAGER

Ethical Problems of Managers

152

(27)

Introduction

152

(3)

Managers and Employee Engagement

152

(3)

Managing the ``Basics''

155

(8)

Hiring and Work Assignments

155

(2)

Performance Evaluation

157

(2)

Discipline

159

(2)

Terminations

161

(2)

Managing a Diverse Workforce

163

(6)

Diversity

164

(1)

Harassment

165

(2)

Family and Personal Issues

167

(2)

The Manager as a Lens

169

(4)

The Buck Stops with Managers

170

(2)

Managers Are Role Models

172

(1)

Managing Up and Across

173

(2)

Honesty Is Rule One

174

(1)

Standards Go Both Ways

175

(1)

Conclusion

175

(1)

Discussion Questions

176

(1)

Notes

177

(2)

Managing for Ethical Conduct

179

(35)

Introduction

179

(1)

In Business, Ethics Is About Behavior

179

(1)

Practical Advice for Managers about Ethical Behavior

180

(1)

Our Multiple Ethical Selves

180

(4)

The Kenneth Lay Example

181

(2)

The Dennis Levine Example

183

(1)

Practical Advice for Managers About Multiple Ethical Selves

183

(1)

Reward Systems

184

(9)

People Do What's Rewarded and Avoid Doing What's Punished

184

(1)

People Will Go the Extra Mile to Achieve Goals Set by Managers

184

(1)

How Reward Systems Can Encourage Unethical Behavior

185

(1)

Practical Advice for Managers About Reward Systems

186

(1)

Recognize the Power of Indirect Rewards and Punishments

187

(2)

Can You Really Reward Ethical Behavior?

189

(1)

What About Punishment?

190

(2)

Practical Advice for Managers About Punishment

192

(1)

``Everyone's Doing It''

193

(2)

People Follow Group Norms

193

(1)

Rationalizing Unethical Behavior

193

(1)

Pressure to Go Along

194

(1)

Practical Advice for Managers About Group Norms

194

(1)

People Fulfill Assigned Roles

195

(4)

The Zimbardo Prison Experiment

196

(1)

Roles at Work

197

(1)

Conflicting Roles Can Lead to Unethical Behavior

198

(1)

Roles Can Support Ethical Behavior

198

(1)

Practical Advice for Managers About Roles

199

(1)

People Do What They're Told

199

(2)

The Milgram Experiments

200

(1)

Obedience to Authority at Work

200

(1)

Practical Advice for Managers About Obedience to Authority

201

(1)

Responsibility Is Diffused in Organizations

201

(5)

``Don't Worry---We're Taking Care of Everything''

201

(1)

Diffusing Responsibility in Groups

202

(1)

Diffusing Responsibility by Dividing Responsibility

203

(1)

Diffusing Responsibility by Creating Psychological Distance

204

(1)

Practical Advice for Managers About Personal Responsibility

205

(1)

Conclusion

206

(1)

Discussion Questions

206

(1)

Case: Sears, Roebuck and Co.: The Auto Center Scandal

207

(3)

Notes

210

(4)

PART IV ETHICS AND THE ORGANIZATION

Ethical Problems of Organizations

214

(42)

Introduction

214

(1)

Managing Stakeholders

215

(2)

Ethics and Consumers

217

(16)

Conflicts of Interest

218

(6)

Product Safety

224

(4)

Advertising

228

(5)

Ethics and Employees

233

(8)

Employee Safety

234

(4)

Employee Downsizings

238

(3)

Ethics and Shareholders

241

(3)

Ethics and the Community

244

(3)

Why Are These Ethical Issues?

247

(1)

Costs

247

(2)

Conclusion

249

(1)

Discussion Questions

250

(3)

Notes

253

(3)

Ethics as Organizational Culture

256

(58)

Introduction

256

(1)

A ``Cookie Cutter'' Approach Won't Work

256

(3)

Organizations Don't Have Cookie-Cutter Ethical Problems

257

(1)

Cookie-Cutter Programs Are Superficial

257

(1)

``Ethics for a Day'' Breeds Cynicism

257

(1)

Proactively Develop an Ethical Organizational Culture

258

(1)

Organizational Ethics as a Cultural Phenomenon

259

(2)

What Is Culture?

259

(1)

Strong versus Weak Cultures

259

(1)

How Culture Influences Behavior: Socialization and Internalization

260

(1)

Ethical Leadership

261

(10)

Ethical Leaders Create Culture

261

(2)

Leaders Maintain or Change Organizational Culture

263

(8)

Formal Cultural Systems

271

(14)

Selection Systems

271

(1)

Values and Mission Statements, Policies and Codes

272

(4)

Orientation and Training Programs

276

(1)

Performance Management Systems

277

(4)

Organizational Structure

281

(2)

Decision-Making Processes

283

(2)

Informal Cultural Systems

285

(6)

Heroes and Role Models

285

(1)

Norms: ``The Way We Do Things Around Here''

286

(1)

Rituals

287

(1)

Myths and Stories

287

(2)

Language

289

(2)

Developing and Changing the Ethical Culture

291

(4)

How an Ethical Culture Can Become an Unethical Culture

292

(1)

Becoming a More Ethical Culture

293

(2)

A Cultural Approach to Changing Organizational Ethics

295

(5)

A Cultural Systems View

295

(1)

A Long-Term View

296

(1)

Assumptions About People

296

(1)

Diagnosis: The Ethical Culture Audit

296

(2)

Ethical Culture Change Intervention

298

(2)

The Ethics of Managing Organizational Ethics

300

(1)

Conclusion

300

(1)

Discussion Questions

301

(1)

Case: Videotek Corporation

301

(5)

Case: Culture Change at Texaco

306

(2)

Case: An Unethical Culture in Need of Change: TAP Pharmaceuticals

308

(2)

Notes

310

(4)

Managing Ethics and Legal Compliance

314

(42)

Introduction

314

(1)

Structuring Ethics Management

315

(3)

Managing Ethics: The Corporate Ethics Office

315

(1)

Ethics Officers

316

(1)

The Ethics Infrastructure

317

(1)

The Corporate Ethics Committee

318

(1)

Communicating Ethics

318

(26)

Basic Communications Principles

319

(3)

Evaluating the Current State of Ethics Communications

322

(1)

Multiple Communications Channels for Formal Ethics Communication

323

(2)

A Novel Approach to Ethics Communication at USAA

325

(4)

Mission or Values Statements

329

(2)

Policy Manuals

331

(1)

Codes of Conduct

332

(1)

Communicating Senior Management Commitment to Ethics

333

(9)

Formal and Informal Systems to Resolve Questions and Report Ethical Concerns

342

(2)

Using the Reward System to Reinforce the Ethics Message

344

(2)

Evaluating the Ethics Program

346

(1)

Surveys

346

(1)

Values or Compliance Approaches

347

(2)

Globalizing an Ethics Program

349

(1)

Conclusion

350

(1)

Discussion Questions

351

(1)

Notes

352

(4)

PART V ETHICS AND THE WORLD

Managing for Ethical Conduct in a Global Business Environment

356

(42)

Introduction

356

(1)

Focus on the Individual Expatriate Manager

357

(17)

The Difficulties of Foreign Business Assignments

357

(1)

The Need for Structure, Training, and Guidance

357

(1)

Foreign Language Proficiency

358

(1)

Learning About the Culture

359

(1)

Recognizing the Power of Selective Perception

360

(1)

Assumption of Behavioral Consistency

361

(1)

Assumption of Cultural Homogeneity

362

(1)

Assumption of Similarity

362

(1)

Ethics-Related Training and Guidance

363

(5)

How Different Are Ethical Standards in Different Cultures?

368

(2)

Development of Corporate Guidelines and Policies for Global Business Ethics

370

(4)

The Organization in a Global Business Environment

374

(14)

Deciding to Do Business in a Foreign Country

374

(8)

Development of a Transcultural Corporate Ethic

382

(4)

Putting It All Together: Royal Dutch Shell

386

(2)

Conclusion

388

(1)

Discussion Questions

389

(1)

Appendix: Caux Round Table Principles for Business

390

(4)

Notes

394

(4)

Index

398

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Managing Business Ethics: Straight Talk About How To Do It Right, 4th Edition

Summary

Author Biography

Table of Contents

Supplemental Materials