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Test bank for Understanding Business Ethics 3rd Edition by Peter A. Stanwick

Test bank for Understanding Business Ethics 3rd Edition by Peter A. Stanwick

Filled with real-world case studies and examples of ethical dilemmas, Understanding Business Ethics prepares you to make ethical decisions in today’s complex, global environment. Bestselling authors explain the fundamental importance of ethical leadership, decision making, and strategic planning while examining emerging trends in business ethics such as the developing world, human rights, environmental sustainability, and technology. In addition to presenting information related to the Association to Advance Collegiate Schools of Business (AACSB), the text’s 26 real-world cases profile a variety of industries, countries, and ethical issues in a way that is relevant and meaningful to your lives. Using an applied approach, this text helps you understand why and how business ethics really do matter! NEW TO THIS EDITION: New coverage of current and relevant topics such as corporate social responsibility, information technology, social media, big data, NGOs as stakeholders, and challenges to establishing an ethical organisation New chapter-opening vignettes and real-life ethical dilemmas highlight contemporary examples such as “The Interview” movie and North Korea, Samsung and Child Labour, and the Hillsborough football disaster New cases covering recent ethical situations such as Disney’s corporate social responsibility reputation and the General Motor’s ignition recall issue show you how to practically apply the concepts being learned to their everyday life An extensive instructor’s manual covering all of the case studies and exercises in the book as well as links to additional material.         The free, open-access Student Study site at study.sagepub.com/stanwick3e features web quizzes, web resources, video resources, and more. There is also a dedicated Instructor site providing additional teaching resources.

Additional ISBNs

1506303234, 1506303226, 9781506303239, 9781506303222, 1506303250, 9781506303253

Table of Contents
Preface to the Third Edition
Acknowledgments
Chapers and Corresponding Cases Matrix
Part I • From Ethical Foundation to Addressing Stakeholder Needs
1. The Foundation of Ethical Thought
Panera Cares Community Cafes: A Loaf in Every Arm
Introduction
The Role of Morals
Is Greed Good?
Why Is Studying Ethics Important?
The Foundation of Ethical Theory
Types of Ethical Examinations
An Example of Ethical Examinations Using Enron Executives
Teleological Frameworks
Ethical Egoism
Utilitarianism
Sidgwick’s Dualism
An Example of Teleological Frameworks Using Panera Cares
Deontological Frameworks
Existentialism
Contractarianism
Kant’s Ethics
Using WorldCom as an Example of Deontological Frameworks
Seven Guiding Principles to Support Ethical Actions
The Seven Deadly Sins
Lust
Gluttony
Greed
Sloth
Wrath
Envy
Pride
The Trolley Problem
Global Business Standards Codex
Fiduciary Principle
Property Principle
Reliability Principle
Transparency Principle
Dignity Principle
Fairness Principle
Citizenship Principle
Responsiveness Principle
Questions for Thought
Real-Life Ethical Dilemma Exercise: Sir Nicholas Winton: A True Humanitarian
2. The Evolving Complexities of Business Ethics
Bono: I Still Haven’t Found the Tax Rate That I’m Looking For
The Global Complexity of Business Ethics
History of Business Ethics
Who Are the Dead Peasants?
The Role of Integrity
Specific Behaviors of High Integrity
An Example of High Integrity
Is Everyone Unethical?
Implicit Prejudice
In-Group Favoritism
Claiming Credit for Others’ Actions
Conflicts of Interest
Five Barriers to an Ethical Organization
The Cheating Culture
I’ll Take Cheating for
But, I Did Graduate… Or Did I?
Cheating and the Job Market
Grade Inflation and the Institutional Pressure to Cheat
The Role of Technology and Cheating
Generational Differences Pertaining to Ethics
The Role of Trust in Ethical Conduct
Questions for Thought
Real-Life Ethical Dilemma Exercise: Can He Still Cheer for NYU?
3. Stakeholders and Corporate Social Responsibility
When Is Fair Trade Not Fair?
What Is a Stakeholder?
Management’s Response to Stakeholders
Moral Management and Stakeholders
Which Stakeholders Are More “Important”?
The Ability to Build Trust With the Stakeholders
The Role of Stakeholder Communications
Triple Bottom Line Reporting
The Benefit Corporation
Suppliers as Stakeholders
China
Brazil
India
Indonesia
Mexico
Peru
The Philippines
South Africa
Sri Lanka
Customers as Stakeholders
The Manufacturing Process
Sales and Quotes
Distribution
Customer Service
Government as a Stakeholder
NGOs as Stakeholders
Local Community and Society as Stakeholders
The Role of Corporate Social Responsibility
The Competitive Advantage of Corporate Social Responsibility
Components of CSR
A Global Approach to CSR
Global Economic Responsibility
Global Legal Responsibility
Global Ethical Responsibility
Global Philanthropic Responsibility
Models of CSR
Business Case Model
Social Values-Led Model
Syncretic Stewardship Model
Employee Engagement and CSR
Transactional Approach
Relational Approach
Developmental Approach
How Firms Implement CSR
Project-Oriented CSR
Quality-Oriented CSR
Strategic CSR
Transformational CSR
Alternative Firm Configurations to Address Stakeholder Issues
Skeptical Firm
Pragmatic Firm
Engaged Firm
Idealistic Firm
The Role of Corporate Reputation
The Role of Corporate Philanthropy
The Competitive Value of Corporate Philanthropy
Strategic Configurations of Corporate Philanthropy
Four Types of Corporate Philanthropy
Questions for Thought
Real-Life Ethical Dilemma Exercise: The Partial Sinking of the Costa Concordia: Is “Women and Children First” an Antiquated Notion?
Part II • Internal Focus on Ethical Issues
4. Ethics and Financial Reporting
HSBC: Products for Tax Evasion and Money Laundering, but No Free Toaster
Ethics and Financial Reporting
The Role of Creative Accounting
The History of Ponzi Schemes
The Role of Insider Trading as an Ethical Issue
Traditional Theory
Temporary Insiders
Tippers and Tippees
Ethical Philosophies and Accounting Issues
The Role of Financial Reporting
The Objectives of Financial Reporting
Where Were the Auditors?
Auditor–Firm Conflicts of Interest
Shareholder–Management Conflicts of Interest
Self-Interest–Professional Standards Conflicts of Interest
Responsibilities of Management
The Use of Heuristics in Auditing
Responsibilities of Auditors
Responsibilities of Audit Committees
AICPA Code of Professional Conduct
Components of the Sarbanes-Oxley Act
Public Company Accounting Oversight Board
Section 404–Internal Controls
A Comprehensive Model of Top Management Fraud
Societal-Level Issues
Industry-Based Issues
Firm-Level Antecedents
Individual-Level Moderators
Accounting Shenanigans or Tricks of the Trade
Revenue Recognition
Onetime Charges
Raiding the Reserves/Cookie Jar Accounting
Lease Accounting
Off–Balance Sheet Items
Earnings Management
Questions for Thought
Real-Life Ethical Dilemma Exercise: Tales From Lehman’s Crypt
5. Ethical Leadership and Corporate Governance
“Nut Rage” on the Tarmac at JFK: It’s a Good Thing She Didn’t Ask to See the Wine List
Ethical Leadership
Characteristics of an Ethical Leader
Transformational Leadership
Transactional Leadership
A Reconciliation of Ethical Values of Both Leadership Styles
A Manager’s Ability to Develop Trust, Commitment, and Effort
The Responsibility of Managers
The Transformation From Moral Person to Ethical Leader
Traits
Behaviors
Decision Making
Moral Manager
Unethical Leader
Ethical Leader
Hypocritical Leader
Inconsistent Leader
Ethics and Corporate Governance
Board of Directors
Board Members
Shareholders
The Role of the Board of Directors
Passive Board
Certifying Board
Engaged Board
Intervening Board
Operating Board
A Contingent Perspective on Corporate Governance
Auditing Role
Supervising Role
Coaching Role
Steering Role
Ethics and the Structure of the Board of Directors
The Benefits of a Strong Board of Directors
CEO Compensation and Ethical Reputation
Ethical Viewpoints Explaining CEO Compensation
Corporate Governance and Stakeholders
Questions for Thought
Real-Life Ethical Dilemma Exercise: A True Global Ethical Leader: Tim Berners-Lee
6. Strategic Planning, Corporate Culture, and Corporate Compliance
When Ethics Drive a Change in Strategy
Ethics and Strategic Planning
The Ethical Cycle
Moral Problem Statement
Problem Analysis
Options for Action
Ethical Judgment
Reflection
Using Strategic Ethical Decisions to Build Character
Who Am I?
Who Are We?
Who Is the Company?
Is There a Link Between Strategic Planning and an Ethical Culture?
How to Address Strategic Ethical Decision Making From a Global Perspective
How to Address Ethical Crisis and Disaster Recovery
Corporate Culture
How Managers Can Change a Corporate Culture
How to Change Ethical Values
Evaluation of Corporate Culture
Using Organizational Integrity to Link Corporate Culture to Corporate Compliance
Ethics and Corporate Compliance
The U.S. Federal Sentencing Guidelines for Organizations
The Challenge of Compliance
Corporate Compliance Systems and Global Corruption
The Cost of Corruption
The U.S. Foreign Corrupt Practices Act
Questions for Thought
Real-Life Ethical Dilemma Exercise: IOC Investigates Selling Olympic Tickets
7. Decision Making and Human Resource Issues
The Triangle Shirtwaist Factory Fire: How Tragedy Can Create Change
Ethical Decision Making: Kohlberg’s Six Stages of Moral Development
Stage 1: Obedience and Punishment Orientation
Stage 2: Instrumental Purpose and Exchange
Stage 3: Interpersonal Accord, Conformity, Mutual Expectations
Stage 4: Social Accord and System Maintenance
Stage 5: Social Contract and Individual Rights
Stage 6: Universal Ethical Principles
The Role of Emotion in Moral Decision Making
Rationalizing Unethical Behaviors
Transparency
Effect
Fairness
Interactionist Model of Ethical Decision Making in Organizations
Ethical Decision Making and Moral Intensity
Magnitude of Consequences
Social Consensus
Probability of Effect
Temporal Immediacy
Proximity
Concentration of Effect
The Role of Power and Influence in Ethical Decisions
Managing Power
Influence
A Machiavellian Approach to Decision Making
How to Control Power and Influence
Human Resource Issues
The Role of Workplace Diversity
Ethical Climate and Organizational Misbehavior
Production Deviance
Political Deviance
Property Deviance
Personal Aggression
Employee Theft
Sexual Harassment and Sexual Discrimination
Quid Pro Quo
Hostile Work Environment
A Silicon Valley Example of Sexual Discrimination
Office Bullying
Employee Monitoring
Undercover
Viewing Social Media
E-Mails and Instant Messaging
Tapping Landline Phones
Monitoring Personal Web Postings
The Ethical Issues Related to Extreme Jobs
Questions for Thought
Real-Life Ethical Dilemma Exercise: When the Stork Delivers a Pink Slip
Part III • External Focus on Ethical Issues
8. Ethics and the Environment
The Intersection of Billboards and Environmental Sustainability: A Peruvian Example
The Tragedy of the Commons
Natural Environment as a Stakeholder
Natural Environment as a Competitive Advantage
Strategy 1: Eco-Efficiency
Strategy 2: Beyond Compliance Leadership
Strategy 3: Eco-Branding
Strategy 4: Environmental Cost Leadership
Voluntary Environmental Compliance
What Does It Mean to Be Green?
How to Adopt Sustainable Strategies Using Firm Transformation
Employees as Environmental Stakeholders
NGOs as Environmental Stakeholders
Greenpeace
Sierra Club
Environmental Defense Fund
Friends of the Earth
Communicating the Firm’s Environmental Commitment to Its Stakeholders
United States Government Regulations
Environmental Accounting Issues
Environmental Justice
Environmental Sustainability
Ethics and Climate Change
What Is the Greenhouse Effect?
Kyoto Treaty
Climate Change as a Strategic Option
The Effects of Climate Change on the Firm
A Firm’s Carbon Footprint
Questions for Thought
Real-Life Ethical Dilemma Exercise: The Bhopal Disaster
9. Ethics and Information Technology
The Interview: Two Big Thumbs Down From North Korea
Why Are Information Technology Ethical Issues Important?
Management Issues and Policy Areas for Information Technology
Management Issues
Policy Areas That Can Address Information Technology Management Issues
The Next Step: Critical Analysis
Stakeholder Analysis
Utilitarian Goal-Based Analysis
Rights-Based Analysis
Duty-Based Analysis
Privacy of Employees
E-mail
Misconceptions Pertaining to E-mail Privacy
Utilitarian Goal-Based Analysis Pertaining to the Use of E-Mail
Types of Computer Monitoring
Telephone Monitoring
Privacy of Customers
The Ethical Issues Related to Big Data
Loss of Anonymity
Self-Protection
Data Patterns Versus Reality
Discrimination-Based Customer Segmentation
The Challenge of Technology
Fake Payment
Intellectual Property
The Role of Government Regulations
The Volunteer Censoring of Internet Search Information
Technology-Based Fraud
Internet Attacks
The USA PATRIOT Act
Questions for Thought
Real-Life Ethical Dilemma Exercise: The Dark Side of Technology
10. Marketing and Advertising
There Is Now an App for Chauvinism
Alternative Views of the Foundation of Marketing and Advertising
Lust
Gluttony
Greed
Sloth
Wrath
Envy
Pride
Green Marketing
Win-Win Purchases
Feel-Good Purchases
Why Bother? Purchases
Why Not? Purchases
Enviro-Preneurial Marketing Strategies
Ethical Issues and Social Media
Unreported Endorsements
Improper Anonymity
Compromising Consumer Privacy
Overly Enthusiastic Employees
Ethical Consumer Behavior
Relationship Marketing and Privacy
The Role of Consumer Boycotts
The Desire to Make a Difference
The Scope of Self-Enhancement
Counterarguments That Inhibit Boycotting
Cost to the Boycotter of Constrained Consumption
The Ethical Challenges of Product Recalls
The Reasons for Recalls
The Steps of a Recall
Financial Costs of a Recall
The Ethics of Fair Pricing
Ethics of Purchasing and Sales
Interorganizational Power
Interorganizational Relationships
Interpersonal Relational Issues
False and Misleading Advertising
Going Out of Business Sale
Manipulation of Product Size or Weight
Use of Fillers
Use of Vague or Undefinable Terms
Misleading Pictures or Illustrations
Bait and Switch
The Eventual Truth in Advertising
Advertising to Children
Sugary Cereals
Children’s Educational Television Rules
Fast-Food Strategies
The Sydney Principles
The Magic of Disney
Questions for Thought
Real-Life Ethical Dilemma Exercise: Calculating the Financial Cost of a Life
11. Ethical Issues in the Developing World
Samsung Electronics and the Cycle of Child Labor
The Bottom of the Pyramid
New Generation Business Strategies for the Bottom of the Pyramid
Social Entrepreneurship
Ten Characteristics of Successful Social Entrepreneurs
Typology of Social Entrepreneurs
Building Social Businesses
Microfinance
Fair Trade
Core Principles of Fair Trade
Ethical Issues Related to Fair Trade
Human Rights
Poverty and Hunger
A Global Challenge
What Causes Hunger?
Food Versus Fuel
Food and Jobs
How Domestic Hunger and Poverty Can Be Used in the Decision-Making Process of Managers
The United Nations Millennium Development Goals
Progress Toward Reaching the Millennium Development Goals by 2015
Private Sector Investment and MDGs
Questions for Thought
Real-Life Ethical Dilemma Exercise: The True Cost of Cotton
Part IV • Developing and Evaluating a Strong Ethical Focus
12. Establishing a Code of Ethics and Ethical Guidelines
How We’re Fixing Up Tyco
Role of a Code of Ethics
Code of Ethics and Stakeholders
Benefits of a Code of Ethics
Content of a Code of Ethics
A Living Code of Ethics
Authentic Leadership
Organizational Components
Organizational Culture
The Role of Total Responsibility Management and a Code of Ethics
Inspiration Process
Integration: Changes in Strategies and Management Practices
Innovation: Focusing on Assessment, Improvement, and Learning Systems
Steps for an Effective Code of Ethics
Value of a Code of Ethics
How to Make a Code of Ethics More Effective
Examples of Codes of Ethics
Role of Government Regulations
Global Code of Ethics
Caux Round Table Principles
Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises
United Nations Global Impact
Questions for Thought
Real-Life Ethical Dilemma Exercise: A Preventable Disaster
13. Evaluating Corporate Ethics
The Hillsborough Disaster: The Tragic Story of 96 Lost Lives
Why Firms Need Ethics Training Programs
The Size of the Firm
Where in the World Does Fraud Occur?
Every Industry Is Represented
The Types of Fraud
Who Commits the Fraud?
How Are They Caught?
Establishing an Ethics Training Program
Establishing a Global Ethics Training Program
Ensure Morally Sensitive Cultural Education
Provide Education on International Human Rights, Not Only on Foreign Law Compliance
Try to Get Beyond “Rule Formalism”
Present a Rational Dialogue for Important International Issues When There Is Dissent
Consider Global Cultural Dimensions and Ethics Training Programs
Benefits of an Ethics Training Program
Enforcement and the Ethics Training Program
Sending the Right Message to the Employees
Corporate Ethics Officers
Ethical Auditing
Components of the Ethical Audit
Whistle-Blowing
Hotlines
How to Set Up the Hotline
How to Get the Word Out to Employees About the Hotline
How to Handle Tips Resulting From the Hotline
Government Regulations and Whistle-Blowing
Evaluation of Ethics and Stakeholders
Questions for Thought
Real-Life Ethical Dilemma Exercise: How About Some Free Popcorn?
Part V • Cases
Case 1: Bernard Madoff: How “One Big Lie” Can Destroy Thousands of Lives
Case 2: Siemens: How the Greased Wheels Slid off the Ethical Track
Case 3: TOMS Shoes: Helping Soles All Over the World
Case 4: Disney Citizenship: Lending a Mouse Ear to Hear How to Help Society
Case 5: World Food Programme: A Quarter a Day Keeps the Hunger Away
Case 6: Rupert Murdoch and News Corporation: All the News That’s Fit to Hack
Case 7: Enron: Were They the Crookedest Guys in the Room?
Case 8: Google: Don’t Be Evil Unless. . .
Case 9: HealthSouth: The Rise and Fall of the Scrushy Empire
Case 10: De Beers and the Conflict Diamonds: A Monopoly Doesn’t Last Forever
Case 11: Interface: More Than Just a Carpet Company
Case 12: Facebook and Privacy: Big Brother “Likes” Us
Case 13: Outsourcing at Mattel: Elmo Sad… Elmo Covered in Lead Paint
Case 14: GM and the Ignition Switch: It Is Deja Vu All Over Again
Case 15: McWane: A Dangerous Business
Case 16: Merck’s Vioxx: How Would You Interpret the Data?
Case 17: The Music Industry: Ethical Issues in a Digital Age
Case 18: Apple Outsourcing in China: iSweatshop?
Case 19: Patagonia: Don’t Buy Our Stuff
Case 20: Tokyo Electric Power and the Fukushima Daiichi Nuclear Power Disaster: A Tsunami of Problems
Case 21: Tyco: I’m Sure That It’s a Really Nice Shower Curtain
Case 22: Olympus: A Corporate Governance Picture That Was Out of Focus
Case 23: Wal-Mart: But We Do Give Them a 10% Employee Discount
Case 24: WorldCom: Can You Hear the Lawsuits Now?
Case 25: BP and the Deepwater Horizon Disaster: “I Would Like My Life Back”
Case 26: Greyston Bakery: The Zen of Philanthropy
End Notes
Index
About the Authors
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Test bank for Understanding Business Ethics 3rd Edition by Peter A. Stanwick