Ethics, Responsibility, and sustainability
Summary of the book Business Ethics: Decision Making for Personal integrity & social responsibility by
Hartman, DesJardin & MacDonald
Goal book: provide a comprehensive yet accessible introduction to the ethical issues arising in business
The text in red is coming from the slides from professor Desmet.
Table of contents
1 Ethics and Business ..................................................................................................... 6
2 Ethical Decision Making: Personal and Professional Contexts ...................................... 6
3 Philosophical Ethics and Business ................................................................................ 9
4 The Corporate Culture – Impact and Implications ...................................................... 13
5 Corporate Social Responsibility ................................................................................. 21
6 Ethical Decision Making: Employer Responsibilities and Employee Rights ................. 31
7 Ethical Decision Making: Technology and Privacy in the Workplace .......................... 33
8 Ethics and Marketing ................................................................................................ 41
9 Business and Environmental Sustainability ................................................................ 53
10 Ethical Decision Making: Corporate Governance, Accounting and Finance ............. 53
1
,1 Ethics and Business ..................................................................................................... 6
1.1 Introduction: Making the case for business ethics............................................................ 6
1.2 Business Ethics as Ethical Decision Making....................................................................... 6
1.3 Business Ethics as Personal Integrity and Social Responsibility......................................... 7
1.3.1 Morality and social ethics .............................................................................................................. 7
1.3.2 Normative ethics ........................................................................................................................... 7
1.3.3 Values ............................................................................................................................................ 8
1.4 Ethics and the Law ........................................................................................................... 8
1.5 Ethics as Practical Reason ................................................................................................ 8
2 Ethical Decision Making: Personal and Professional Contexts ...................................... 9
2.1 A Decision-Making process for ethics ............................................................................... 9
2.1.1 Step 1. Determine the facts of the situations................................................................................ 9
2.1.2 Step 2. Recognize a decisions or issue as an ethical decision or issue .......................................... 9
2.1.3 Step 3. Identify the ethical issue involved ................................................................................... 10
2.1.4 Step 4. Consider the available alternatives ................................................................................. 10
2.1.5 Step 5. Compare and weigh the alternatives .............................................................................. 11
2.1.6 Step 6. Make a decision ............................................................................................................... 11
2.1.7 Step 7. Monitor and learn from the outcomes............................................................................ 11
2.2 Overview of the ethical decision-making process ............................................................11
2.3 When ethical decision making goes wrong: why do “good” people engage in “bad” acts?
11
2.4 Ethical decision making in managerial roles ....................................................................12
3 Philosophical Ethics and Business .............................................................................. 13
3.1 Introduction: ethical framework – consequences, principles, character ..........................13
3.2 Utilitarianism: making decision based on ethical consequences ......................................14
3.2.1 Utilitarianism and business ......................................................................................................... 14
3.2.2 Challenges to Utilitarian Ethics .................................................................................................... 15
3.3 An ethics of principles and rights ....................................................................................15
3.3.1 Human rights and duties ............................................................................................................. 16
3.3.2 Human rights and social justice ................................................................................................... 17
3.3.3 Human rights and legal rights ...................................................................................................... 17
3.3.4 Challenge to an ethics of rights and duties ................................................................................. 17
3.4 Virtue ethics: making decisions based on integrity and character ...................................18
3.5 A decision-making model for business ethics revisited ....................................................20
4 The Corporate Culture – Impact and Implications ...................................................... 21
4.1 What is corporate culture? .............................................................................................21
4.2 Culture and ethics ...........................................................................................................22
2
, 4.3 Compliance and values-based cultures ...........................................................................22
4.4 Ethical leadership and corporate culture.........................................................................23
4.5 Effective leadership and ethical, effective leadership......................................................24
4.6 Building a values-based corporate culture ......................................................................24
4.6.1 Mission statements, credos, codes of conduct, and statements of values ................................. 24
4.6.2 Developing the mission and code................................................................................................ 25
4.6.3 Culture integration: ethics hotlines, ombudspersons and reporting .......................................... 25
4.6.4 Assessing and monitoring the corporate culture: audits............................................................. 26
4.7 Mandating and enforcing culture: the federal sentencing guidelines for organizations ...27
4.7.1 Sources of culture ........................................................................................................................ 27
4.7.2 Actions of guidelines ................................................................................................................... 27
5 Corporate Social Responsibility (CSR) ........................................................................ 29
5.1 Ethics and social responsibility........................................................................................29
5.2 Economic model of CSR ..................................................................................................30
5.3 Stakeholder model of CSR...............................................................................................30
5.4 Integrative model of CSR ................................................................................................31
5.4.1 The implications of sustainability in the integrative model of CSR ............................................. 31
5.5 Exploring enlightened self-interest: does “good ethics” mean “good business”?.............32
6 Ethical Decision Making: Employer Responsibilities and Employee Rights ................. 33
6.1 Ethical issues in the workplace: the current environment ...............................................33
6.2 Defining the parameters of the employment relationship...............................................33
6.2.1 Due process and just cause ......................................................................................................... 33
6.2.2 Downsizing .................................................................................................................................. 34
6.2.3 Health and safety......................................................................................................................... 35
6.2.4 Health and safety as “acceptable risk” ........................................................................................ 35
6.2.5 Health and safety as market controlled ...................................................................................... 35
6.2.6 Health and safety as government-regulated ethics .................................................................... 36
6.3 Global applications: the global workforce and global challenges.....................................36
6.3.1 The case of child labor ................................................................................................................. 37
6.4 Rights and responsibilities in conflict: discrimination, diversity, and affirmative action ..37
6.4.1 Discrimination ............................................................................................................................. 37
6.4.2 Diversity ....................................................................................................................................... 38
6.4.3 Affirmative action ........................................................................................................................ 38
7 Ethical Decision Making: Technology and Privacy in the Workplace .......................... 40
7.1 Introduction ...................................................................................................................40
7.2 The right to privacy .........................................................................................................40
7.2.1 Defining privacy ........................................................................................................................... 40
3
, 7.2.2 Ethical sources of a right to privacy ............................................................................................. 40
7.2.3 Legal sources of a right to privacy ............................................................................................... 41
7.2.4 Global applications ...................................................................................................................... 41
7.3 Linking the value of privacy to the ethical implications of technology .............................42
7.3.1 Information and privacy .............................................................................................................. 43
7.4 Managing employees through monitoring ......................................................................43
7.4.1 Monitoring employees through drug testing .............................................................................. 44
7.5 Other forms of monitoring..............................................................................................44
7.5.1 Business reasons to limit monitoring .......................................................................................... 44
7.5.2 Balancing interests ...................................................................................................................... 44
7.6 Regulation of off-work act ..............................................................................................45
7.7 Privacy rights since September 11, 2001 .........................................................................45
8 Ethics and Marketing ................................................................................................ 47
8.1 Marketing: an ethical framework....................................................................................47
8.1.1 Freedom ...................................................................................................................................... 48
8.1.2 Informed ...................................................................................................................................... 48
8.1.3 Other values ................................................................................................................................ 48
8.2 Responsibility for products: safety and liability...............................................................48
8.2.1 Contractual standards for product safety ................................................................................... 49
8.2.2 Tort standards for product safety ............................................................................................... 49
8.2.3 Strict product liability .................................................................................................................. 50
8.2.4 Ethical debates on product liability ............................................................................................. 50
8.3 Responsibility for products: advertising and sales ...........................................................50
8.4 Ethical issues in advertising ............................................................................................50
8.5 Marketing ethics and consumer autonomy .....................................................................51
8.6 Marketing to vulnerable populations ..............................................................................51
8.7 Supply chain responsibility .............................................................................................52
9 Business and Environmental Sustainability ................................................................ 53
9.1 Introduction ...................................................................................................................53
9.2 Business ethics and environmental values ......................................................................53
9.3 Business’s environmental responsibility: the market approach .......................................54
9.4 Business’s environmental responsibility: the regulatory approach ..................................55
9.5 Business’s environmental responsibilities: the sustainability approach...........................55
9.6 The ‘business case’ for a sustainable economy................................................................57
9.7 Principles for a sustainable business ...............................................................................57
9.8 Sustainable marketing ....................................................................................................58
9.8.1 Product ........................................................................................................................................ 58
4
Summary of the book Business Ethics: Decision Making for Personal integrity & social responsibility by
Hartman, DesJardin & MacDonald
Goal book: provide a comprehensive yet accessible introduction to the ethical issues arising in business
The text in red is coming from the slides from professor Desmet.
Table of contents
1 Ethics and Business ..................................................................................................... 6
2 Ethical Decision Making: Personal and Professional Contexts ...................................... 6
3 Philosophical Ethics and Business ................................................................................ 9
4 The Corporate Culture – Impact and Implications ...................................................... 13
5 Corporate Social Responsibility ................................................................................. 21
6 Ethical Decision Making: Employer Responsibilities and Employee Rights ................. 31
7 Ethical Decision Making: Technology and Privacy in the Workplace .......................... 33
8 Ethics and Marketing ................................................................................................ 41
9 Business and Environmental Sustainability ................................................................ 53
10 Ethical Decision Making: Corporate Governance, Accounting and Finance ............. 53
1
,1 Ethics and Business ..................................................................................................... 6
1.1 Introduction: Making the case for business ethics............................................................ 6
1.2 Business Ethics as Ethical Decision Making....................................................................... 6
1.3 Business Ethics as Personal Integrity and Social Responsibility......................................... 7
1.3.1 Morality and social ethics .............................................................................................................. 7
1.3.2 Normative ethics ........................................................................................................................... 7
1.3.3 Values ............................................................................................................................................ 8
1.4 Ethics and the Law ........................................................................................................... 8
1.5 Ethics as Practical Reason ................................................................................................ 8
2 Ethical Decision Making: Personal and Professional Contexts ...................................... 9
2.1 A Decision-Making process for ethics ............................................................................... 9
2.1.1 Step 1. Determine the facts of the situations................................................................................ 9
2.1.2 Step 2. Recognize a decisions or issue as an ethical decision or issue .......................................... 9
2.1.3 Step 3. Identify the ethical issue involved ................................................................................... 10
2.1.4 Step 4. Consider the available alternatives ................................................................................. 10
2.1.5 Step 5. Compare and weigh the alternatives .............................................................................. 11
2.1.6 Step 6. Make a decision ............................................................................................................... 11
2.1.7 Step 7. Monitor and learn from the outcomes............................................................................ 11
2.2 Overview of the ethical decision-making process ............................................................11
2.3 When ethical decision making goes wrong: why do “good” people engage in “bad” acts?
11
2.4 Ethical decision making in managerial roles ....................................................................12
3 Philosophical Ethics and Business .............................................................................. 13
3.1 Introduction: ethical framework – consequences, principles, character ..........................13
3.2 Utilitarianism: making decision based on ethical consequences ......................................14
3.2.1 Utilitarianism and business ......................................................................................................... 14
3.2.2 Challenges to Utilitarian Ethics .................................................................................................... 15
3.3 An ethics of principles and rights ....................................................................................15
3.3.1 Human rights and duties ............................................................................................................. 16
3.3.2 Human rights and social justice ................................................................................................... 17
3.3.3 Human rights and legal rights ...................................................................................................... 17
3.3.4 Challenge to an ethics of rights and duties ................................................................................. 17
3.4 Virtue ethics: making decisions based on integrity and character ...................................18
3.5 A decision-making model for business ethics revisited ....................................................20
4 The Corporate Culture – Impact and Implications ...................................................... 21
4.1 What is corporate culture? .............................................................................................21
4.2 Culture and ethics ...........................................................................................................22
2
, 4.3 Compliance and values-based cultures ...........................................................................22
4.4 Ethical leadership and corporate culture.........................................................................23
4.5 Effective leadership and ethical, effective leadership......................................................24
4.6 Building a values-based corporate culture ......................................................................24
4.6.1 Mission statements, credos, codes of conduct, and statements of values ................................. 24
4.6.2 Developing the mission and code................................................................................................ 25
4.6.3 Culture integration: ethics hotlines, ombudspersons and reporting .......................................... 25
4.6.4 Assessing and monitoring the corporate culture: audits............................................................. 26
4.7 Mandating and enforcing culture: the federal sentencing guidelines for organizations ...27
4.7.1 Sources of culture ........................................................................................................................ 27
4.7.2 Actions of guidelines ................................................................................................................... 27
5 Corporate Social Responsibility (CSR) ........................................................................ 29
5.1 Ethics and social responsibility........................................................................................29
5.2 Economic model of CSR ..................................................................................................30
5.3 Stakeholder model of CSR...............................................................................................30
5.4 Integrative model of CSR ................................................................................................31
5.4.1 The implications of sustainability in the integrative model of CSR ............................................. 31
5.5 Exploring enlightened self-interest: does “good ethics” mean “good business”?.............32
6 Ethical Decision Making: Employer Responsibilities and Employee Rights ................. 33
6.1 Ethical issues in the workplace: the current environment ...............................................33
6.2 Defining the parameters of the employment relationship...............................................33
6.2.1 Due process and just cause ......................................................................................................... 33
6.2.2 Downsizing .................................................................................................................................. 34
6.2.3 Health and safety......................................................................................................................... 35
6.2.4 Health and safety as “acceptable risk” ........................................................................................ 35
6.2.5 Health and safety as market controlled ...................................................................................... 35
6.2.6 Health and safety as government-regulated ethics .................................................................... 36
6.3 Global applications: the global workforce and global challenges.....................................36
6.3.1 The case of child labor ................................................................................................................. 37
6.4 Rights and responsibilities in conflict: discrimination, diversity, and affirmative action ..37
6.4.1 Discrimination ............................................................................................................................. 37
6.4.2 Diversity ....................................................................................................................................... 38
6.4.3 Affirmative action ........................................................................................................................ 38
7 Ethical Decision Making: Technology and Privacy in the Workplace .......................... 40
7.1 Introduction ...................................................................................................................40
7.2 The right to privacy .........................................................................................................40
7.2.1 Defining privacy ........................................................................................................................... 40
3
, 7.2.2 Ethical sources of a right to privacy ............................................................................................. 40
7.2.3 Legal sources of a right to privacy ............................................................................................... 41
7.2.4 Global applications ...................................................................................................................... 41
7.3 Linking the value of privacy to the ethical implications of technology .............................42
7.3.1 Information and privacy .............................................................................................................. 43
7.4 Managing employees through monitoring ......................................................................43
7.4.1 Monitoring employees through drug testing .............................................................................. 44
7.5 Other forms of monitoring..............................................................................................44
7.5.1 Business reasons to limit monitoring .......................................................................................... 44
7.5.2 Balancing interests ...................................................................................................................... 44
7.6 Regulation of off-work act ..............................................................................................45
7.7 Privacy rights since September 11, 2001 .........................................................................45
8 Ethics and Marketing ................................................................................................ 47
8.1 Marketing: an ethical framework....................................................................................47
8.1.1 Freedom ...................................................................................................................................... 48
8.1.2 Informed ...................................................................................................................................... 48
8.1.3 Other values ................................................................................................................................ 48
8.2 Responsibility for products: safety and liability...............................................................48
8.2.1 Contractual standards for product safety ................................................................................... 49
8.2.2 Tort standards for product safety ............................................................................................... 49
8.2.3 Strict product liability .................................................................................................................. 50
8.2.4 Ethical debates on product liability ............................................................................................. 50
8.3 Responsibility for products: advertising and sales ...........................................................50
8.4 Ethical issues in advertising ............................................................................................50
8.5 Marketing ethics and consumer autonomy .....................................................................51
8.6 Marketing to vulnerable populations ..............................................................................51
8.7 Supply chain responsibility .............................................................................................52
9 Business and Environmental Sustainability ................................................................ 53
9.1 Introduction ...................................................................................................................53
9.2 Business ethics and environmental values ......................................................................53
9.3 Business’s environmental responsibility: the market approach .......................................54
9.4 Business’s environmental responsibility: the regulatory approach ..................................55
9.5 Business’s environmental responsibilities: the sustainability approach...........................55
9.6 The ‘business case’ for a sustainable economy................................................................57
9.7 Principles for a sustainable business ...............................................................................57
9.8 Sustainable marketing ....................................................................................................58
9.8.1 Product ........................................................................................................................................ 58
4
