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TESTBANK FOR Solution Manual for
Understanding Business Ethics 3rd Edition Peter A. Stanwick,
Sarah D. Stanwick
Chapter 1-13
Chapter 1
The Foundation of Ethical Thought
The purpose of this chapter is to give the students a broad
overview of the theoretical foundation that supports ethical
decision-making. It is from this theoretical grounding that the
students can understand how their decisions related to ethical
issues can impact not only themselves but others as well. In
addition, this chapter introduces the structure of the textbook
which allows the instructor to also explain his or her structure
for the class.
Key Learning Points
There are a number of key learning points which can be
accomplished when this chapter is presented to your students.
These learning points include:
1. Thechapter introduces the student to the concepts of ethics
and business ethics.
,2. Ethics is a complex concept to describe. Different
philosophies have used different theories in order to help
explain and guide ethical behavior.
3. Although some of the theories presented in this chapter were
developed over two thousand years ago, they are appropriate
and applicable to today‟s business environment. 4. This
chapter demonstrates that the eight underlying principles
presented in the Global Business Standards Codex are
interrelated with each other as well as with the major
philosophical theories related to ethics.
5. “Panera Cares Community cafes: A Loaf in Every Arm”
demonstrates how one company can address the needs of
many stakeholders.
6. Sir Nicholas Winton: A True Humanitarian demonstrates
that one person can have an impact on many others by doing
“the right thing” even at great personal risk.
Panera Cares Community Cafes: A Loaf in Every Arm
The opening vignette highlights how one company, Panera
Bread, has developed an outreach program of providing food
for which the customers will pay only what they can. If the
customer does not have any money, they can donate 1 hour of
volunteer work in exchange for the meal. An interesting fact is
that 60 percent of the customers pay the retail value, 20
percent pay below the retail value, and 20 percent pay above
the retail value of the meal.
,1. Ask
the class how many of them have volunteered for a
nonprofit organization.
Follow up with those who respond positively by asking them
why they volunteered. An additional follow-up question would
be to ask if those same students would consider volunteering in
the future.
2. Howdoes Panera Bread satisfy the demands of the
stockholders by potentially “giving away” food and profits?
It could be argued that Panera Bread has an enlightened
stakeholder perspective to address the needs of its customers.
Not only does this program support those in need in the local
communities but it sends a message to all of Panera‟s
stakeholders that it is interested in serving their needs.
Furthermore, the long-term financial benefit of this program
could be that as those customers increase their standard of
living, they can afford to pay the full price of the meal and will
have become brand loyal to Panera Bread due to this program.
3. Would this type of program work for other restaurants?
It is expected that this could create a lively discussion in the
class. For those who agree that it could be transferred to other
restaurants, the argument could be that the underlying
philosophy of the program is to support those people in the
local community who have food security issues. Therefore, it
, should be applicable in any type of food service. For those who
say no, it could be argued that Panera Bread probably has
higher profit margins on its food than other type of quick
service restaurants. Therefore, other fast-food restaurants such
as McDonalds and Burger King do not have the flexibility to
offer their food at “below cost”.
Definition of Ethics and Business Ethics
To introduce the concepts of Ethics and Business Ethics to the
students in the classroom, a good starting discussion point
would be to ask the students what kind of ethical dilemmas
they have faced in the past. A follow-up discussion point would
be to ask them what type of ethical dilemmas they think they
will face in their jobs after they have graduated.
The Role of Morals
It is important for students to understand the three
components of morals: individual principles, individual
character, and the consequences of the actions. Due to the
multifaceted nature of morals, the students need to realize that
they may have ethical principles but if their character ignores or
down plays the significance of the consequences, “ethical”
people can do “unethical” actions. Therefore, the Greed is
Good example from the movie Wall Street is a good visual
example to highlight this potential conflict. Gordon Gekko
believes that he has moral principles, but based on his
TESTBANK FOR Solution Manual for
Understanding Business Ethics 3rd Edition Peter A. Stanwick,
Sarah D. Stanwick
Chapter 1-13
Chapter 1
The Foundation of Ethical Thought
The purpose of this chapter is to give the students a broad
overview of the theoretical foundation that supports ethical
decision-making. It is from this theoretical grounding that the
students can understand how their decisions related to ethical
issues can impact not only themselves but others as well. In
addition, this chapter introduces the structure of the textbook
which allows the instructor to also explain his or her structure
for the class.
Key Learning Points
There are a number of key learning points which can be
accomplished when this chapter is presented to your students.
These learning points include:
1. Thechapter introduces the student to the concepts of ethics
and business ethics.
,2. Ethics is a complex concept to describe. Different
philosophies have used different theories in order to help
explain and guide ethical behavior.
3. Although some of the theories presented in this chapter were
developed over two thousand years ago, they are appropriate
and applicable to today‟s business environment. 4. This
chapter demonstrates that the eight underlying principles
presented in the Global Business Standards Codex are
interrelated with each other as well as with the major
philosophical theories related to ethics.
5. “Panera Cares Community cafes: A Loaf in Every Arm”
demonstrates how one company can address the needs of
many stakeholders.
6. Sir Nicholas Winton: A True Humanitarian demonstrates
that one person can have an impact on many others by doing
“the right thing” even at great personal risk.
Panera Cares Community Cafes: A Loaf in Every Arm
The opening vignette highlights how one company, Panera
Bread, has developed an outreach program of providing food
for which the customers will pay only what they can. If the
customer does not have any money, they can donate 1 hour of
volunteer work in exchange for the meal. An interesting fact is
that 60 percent of the customers pay the retail value, 20
percent pay below the retail value, and 20 percent pay above
the retail value of the meal.
,1. Ask
the class how many of them have volunteered for a
nonprofit organization.
Follow up with those who respond positively by asking them
why they volunteered. An additional follow-up question would
be to ask if those same students would consider volunteering in
the future.
2. Howdoes Panera Bread satisfy the demands of the
stockholders by potentially “giving away” food and profits?
It could be argued that Panera Bread has an enlightened
stakeholder perspective to address the needs of its customers.
Not only does this program support those in need in the local
communities but it sends a message to all of Panera‟s
stakeholders that it is interested in serving their needs.
Furthermore, the long-term financial benefit of this program
could be that as those customers increase their standard of
living, they can afford to pay the full price of the meal and will
have become brand loyal to Panera Bread due to this program.
3. Would this type of program work for other restaurants?
It is expected that this could create a lively discussion in the
class. For those who agree that it could be transferred to other
restaurants, the argument could be that the underlying
philosophy of the program is to support those people in the
local community who have food security issues. Therefore, it
, should be applicable in any type of food service. For those who
say no, it could be argued that Panera Bread probably has
higher profit margins on its food than other type of quick
service restaurants. Therefore, other fast-food restaurants such
as McDonalds and Burger King do not have the flexibility to
offer their food at “below cost”.
Definition of Ethics and Business Ethics
To introduce the concepts of Ethics and Business Ethics to the
students in the classroom, a good starting discussion point
would be to ask the students what kind of ethical dilemmas
they have faced in the past. A follow-up discussion point would
be to ask them what type of ethical dilemmas they think they
will face in their jobs after they have graduated.
The Role of Morals
It is important for students to understand the three
components of morals: individual principles, individual
character, and the consequences of the actions. Due to the
multifaceted nature of morals, the students need to realize that
they may have ethical principles but if their character ignores or
down plays the significance of the consequences, “ethical”
people can do “unethical” actions. Therefore, the Greed is
Good example from the movie Wall Street is a good visual
example to highlight this potential conflict. Gordon Gekko
believes that he has moral principles, but based on his
