Business Ethics Decision Making for
v v v v v
Personal Integrity & Social Responsi
v v v v
bility,
6th Edition by Laura Hartman
v v v v
Complete Chapter Solutions Manual a
v v v v
re included (Ch 1 to 50)
v v v v v
** Immediate Download
v v
** Swift Response
v v
** All Chapters included
v v v
,Chapterv01—EthicsvandvBusiness
IMvChapterv1:vEthicsvandvBusiness
ChaptervObjectives
Aftervreadingvthisvchapter,vyouvwillvbevablevto:
1. Explainvthreevlevelsvatvwhichvethicalvdecisionsvgetvmadevinvbusiness.
2. Explainvthevnaturevofvbusinessvethicsvasvanvacademicvdiscipline.
3. Explainvwhyvethicsvisvimportantvinvthevbusinessvenvironment.
4. Explainvwhyvethicalvresponsibilitiesvgovbeyondvlegalvcompliance.
5. Distinguishvthevethicsvofvpersonalvintegrityvfromvthevethicsvofvsocialvresponsibility.
6. Distinguishvethicalvnormsvandvvaluesvfromvothervbusiness-relatedvnormsvandvvalues.
7. Describevethicalvdecisionvmakingvasvavformvofvpracticalvreasoning.
OpeningvDecisionvPoint—WellsvFargovandvFacebook
ThevWellsvFargovandvFacebookvcasesvcanvbevusedvtovintroducevavrangevofvtopicsvthatvwillvemergevth
roughoutvthisvbook.vThevcasevinvolvesvdecisionvmakingvatvavnumbervofvlevels,vfromvindividualventr
y-levelvemployeesv(likevmanyvofvourvstudents),vtovbranchvmanagers,vtovmid-
levelvmanagement,vseniorvexecutives,vandvthevboardvofvdirectors.vThevcasesvalsovincludevdecisionsvi
ndividualsvdirectlyvinvolvedvinvwrongdoingvasvwellvasvindividualsvwhovblewvthevwhistlevonvwrongd
oing.vAvgoodvdiscussionvcanvbevgeneratedvbyvaskingvstudentsvtovassignvresponsibility,v bothvinvterm
svofvwhovisvatvfaultv(whovisvaccountable?)vandvwhatvcouldvbevonevtovpreventvitvfromvreoccurringv(wh
atvcausedvit?).
WevhavevaddedvavnewvshortvcasevdescriptionvinvolvingvFacebookvtovthisvDecisionvPointvforvseveralv
reasons.vFirst,vFacebookvhelpsvbringvoutvthevbroadervsocialvandvpoliticalvdimensionsvofvethicalvdeci
sionvmakingvmorevdirectly.vStudentsvwillvseevthevdifficultyvinvseparatingvbusinessvdecisionsvfromvbr
oadervsocialvandvethicalvdecisions.vSecond,vthevFacebookvcasevalsovinvolvesvsomevexamplesvofvinsi
dersvwhovcalledvoutvunethicalvactivities.vDespitevthevpressuresvinvallvorganizationsvtovconform,vitvisv
possiblevforvindividualsvtovstandvupvforvtheirvethicalvbeliefs.vFinally,vFacebookvandvsocialvmediavca
nvbevavmorevrelevantvexamplevforvmanyvstudentsvthanvbanking.
Thesevdiscussionsvcanveasilyvleadvintovthevdecision-
makingvmodelvthatvwillvbevintroducedvlatervinvthevchapter.vWhatvfactsvwouldvbevhelpfulvtovmakevthe
sevjudgmentsvofvresponsibility?vWhatvfactsvwouldvchangevyourvdecision?vWhatvfactsvconfirmedvyo
urvinitialvthoughts?vWhovarevthevstakeholdersvinvolved,vrangingvfromventry-
levelvemployees,vtovcustomers,vtovstockholders,vtovcompetitors.vWhatvstake,vexactly,vdovthesevgrou
psvhavevinvthisvcase?vHowvwerevtheyvharmed?vHow,vifvatvall,vwerevtheirvinterestsvrepresentedvinvthev
process?
Thesevarevalsovgoodvcasesvwithvwhichvtovintroducevthevtopicsvofvcorporatevculturevandvleadership.vHowv
werevthevdecisionsvmadevbyvindividualsvinfluencedvbyvthevsurroundingvculture,vandvhowvdid
1-1
,Chapterv01—EthicsvandvBusiness
thatvculturevemergevatvWellsvFargo?vAtvFacebook?vHowvfreevwerevemployeesvatveveryvlevel,vinclud
ingvseniorvexecutives,vtovdivergevfromvthevprevalentvculture?vHowvmightvthatvinstitutionalvculturevb
evchanged?vWhovisvresponsiblevforvinstitutionalvdecisions?vWhichvinstitutionalvpoliciesvandvpractic
esvenabledvthisvscandal?vHowvmightvtheyvbevchangedvtovavoidvavreoccurrence?
Anothervtopicvthatvcanvbevintroducedvinvolvesvprofessionalvresponsibilitiesvofvbankersvandvfinancia
lvprofessionalsvatvWells,vandvITvspecialistsvatvFacebook.vThisvdiscussionvcanvbevhelpfulvinvsettingvth
evstagevforvChapterv5vandvthevgeneralvtopicvofvcorporatevsocialvresponsibility.vAvdiscussionvofvfiduci
aryvdutiesvcanvintroducevseveralvimportantvquestions.vWhatvresponsibilitiesvdovmanagers,vperhapsve
speciallyvseniorvexecutives,vhavevtovstockholders?vHowvmightvthesevresponsibilitiesvconflictvwithvt
heirvresponsibilitiesvasvfinancialvprofessionals?vFacebookvcasevalsovcanvfocusvdiscussionvonvquestio
nsvofvthevsocialvandvpoliticalvresponsibilitiesvofvbothvindividualsvandvcorporations.
Finally,vthisvcasevcanvalsovintroducevthevquestionvofvgovernmentvregulationvwithinvavmarketvecono
my.vWhatvisvthevpropervrolevforvgovernmentvagencies,vbothvinvtermsvoffsettingvstandardsvtovpreventv
misconductvandvinvenforcingvsanctionsvaftervthevfact?vHowvdoesvthisvinfluencevthev“freevmarket”vsy
stem?vInvwhatvsensevarevcorporationsv“citizens”vofvthevcountriesvinvwhichvtheyvoperate,vandvwhatvre
sponsibilitiesvdoesvthatvimply?
I. Introduction:vGettingvComfortablevwithvthevTopic
Itvisvnotvuncommonvforvstudentsvtoventervavbusinessvethicsvclassvwithvsomevdegreevofvdoubt,vconfusi
on,vandvapprehensionvaboutvthevtopic.vThisvopeningvchaptervaimsvtovrelievevthosevconcernsvbyvintro
ducingvbusinessvethicsvasvanvunavoidablevandvnonthreateningvpartvofvbusinessv(andvlife).
Thevtopicvisvintroducedvbyvreviewingvsomevofvthevpastvandvrecentvwell-
knownvscandalsvbutvalsovpointingvoutvsomevwell-
knownvexamplesvofvcommendablevcorporatevethics.vItvcanvbevworthwhilevtovremindvstudentsvofvbes
tvcasevexamplesvasvavmeansvtovremindingvthemvthatvbusinessvethicsvdoesvnotvassumevthatvonlyvthevba
dvcasesvdeservevattention.
Wevalsovremindvstudentsvthatvbusinessvethicsvisvnotvlimitedvtovthevtypevofvmajorvcorporatevdecisions
vwithvdramaticvsocialvconsequences. vAtvsomevpoint veveryvworker,vandvcertainlyv everyonevinvavman
agementvrole,vwillvbevfacedvwithvanvissuevthatvwillvrequirevethicalvdecisionvmaking.vWevhavevalsove
xpandedvthisvsectionvtovincludevavbroadervdiscussionvofvthevrolevethicsvplaysvinvmanyvlifevexperienc
esvoutsidevasvwellvasvinsidevbusiness.
Thisvopeningvsectionvidentifiesvfivevgeneralvgoalsvforvavbusinessvethicsvclass:
1. Developvthevknowledgevbasevandvskillsvneededvtovidentifyvethicalvissues.
2. Understandvhowvandvwhyvpeoplevbehavevunethically.
3. vDecidev howv wev shouldv act,v whatv wev shouldv do,v andv thev typev ofv personv wev shouldv bev asvi
ndividuals.
4. Createvethicalvorganizations.
5. Thinkvthroughvthevsocial,veconomic,vandvpoliticalvpoliciesvthatvwevshouldvsupportvasvcitizens.
1-2
, Chapterv01—EthicsvandvBusiness
II. BusinessvEthicsvasvEthicalvDecisionvmaking
Wevmovedvthisvsectionvupvtovanvearlyvpointvinvthisvchaptervsovthatvstudentsvcanvbevmorevdire
ctlyvandvimmediatelyvintroducedvtovWHATvethicsvinvolvesvandvwhatvitvis.vSomevreviewersv
suggestedvthatvthevpreviousvorganizationvspentvtoovmuchvtimevtalkingvABOUTvethics,vbefor
evactuallyvsayingvwhatvitvis.
a. Sovwhatvisvthevpointvofvavbusinessvethicsvcourse?vOurvgeneralvapproachvthroughoutvthi
svtextvisvtovexplainvethicsvasvavmiddlevgroundvbetweenvthosevwhovunderstandvethicsvinvab
solutistvandvcertainvterms,vandvthosevwhovdenyvanyvreasonablevorvobjectivevbasisvforveth
icalvclaims.vThisvtextvneithervpreachesvdogmaticvethicalvtruthsvnorvabandonsvhopevforvet
hicalvprogressvandvrationality.
b. WevincludevavdiscussionvofvSocratesvandvThrasymachus.vRationalvdecisionvmakingva
ndvpersuasionvversusvimposingvone’svviewvonvothers.vWhilevstudentsvmightvinitiallyvseev
thisvasvanvaside,vthevcrucialvpointvisvworthvemphasizing—
perhapsvmorevsovinvlightvofvrecentvU.S.vpoliticalvdebates.vThisvtextv(likevSocrates)vdoesva
ssumevthatvhumansvcanvbevrationalvenoughvtovsettlevdisagreementsvbyvthinkingvthemvthr
oughvandvfindingvrationalvconclusionsvthatvbindvallvpeople.vInvanyvsocietyvinvwhichvpeop
levdisagreev(andvwherevwouldvthatvnotvbe?),vthevalternativevtovrationalvdiscussion,vpersu
asion,vandvultimatelyvanvagreementvisvpower/forcev(Thrasymachus).
i. Asv thev titlev ofv thisv bookv suggests,v ourv approachv tov businessv ethicsv will
emphasizevethicalvdecisionvmaking.
ii. HistoricalvContext:vOnvonevhand,vethicsvrefersvtovanvacademicvdisciplinevwithva
vcenturies voldvhistoryvandvwevmight vexpectvknowledgevaboutvthisvhistoryvtovbeva
mongvthevprimaryvgoalsvofvavclassvinvethics.
1. Thus,vinvanvethicsvcourse,vstudentsvmightvbevexpectedvtovlearnvaboutvthevg
reatvethicistsvofvhistoryvsuchvasvAristotle,vJohnvStuartvMill,vandvImmanu
elvKant.vAsvhappensvinvmanyvothervcourses,vthisvapproachvtovethicsvwoul
dvfocusvonvthevinformationalvcontentvofvthevclass.
*ChaptervObjectivev2vAddressedvBelow*
iii. EthicalvBehavior/NormativevContent:vYet,vaccordingvtovsomevobservers,vlear
ningvaboutvethicalvtheoriesvandvgainingvknowledgevaboutvthevhistoryvofvethicsvisv
besidevthevpoint.
1. Manyvpeople,vrangingvfromvbusinessesvlookingvtovhirevcollegevgraduates
vtovbusinessvstudentsvandvteachersvthemselves,vexpectvanvethicsvclassvtova
ddressvethicalvbehavior,vnotvjustvinformationvandvknowledgevaboutvethi
cs.
2. Aftervall,vshouldvnotvanvethicsvclassvhelpvpreventvfuturevethicalvscandals?
vEthicsvrefersvnotvonlyvtovanvacademicvdisciplinevbutvtovthatvarenavofvhum
anvlifevstudiedvbyvthisvacademicvdiscipline,vnamely,vhowvhumanvbeings
vproperly vshouldvlivevtheirvlives.
1-3
v v v v v
Personal Integrity & Social Responsi
v v v v
bility,
6th Edition by Laura Hartman
v v v v
Complete Chapter Solutions Manual a
v v v v
re included (Ch 1 to 50)
v v v v v
** Immediate Download
v v
** Swift Response
v v
** All Chapters included
v v v
,Chapterv01—EthicsvandvBusiness
IMvChapterv1:vEthicsvandvBusiness
ChaptervObjectives
Aftervreadingvthisvchapter,vyouvwillvbevablevto:
1. Explainvthreevlevelsvatvwhichvethicalvdecisionsvgetvmadevinvbusiness.
2. Explainvthevnaturevofvbusinessvethicsvasvanvacademicvdiscipline.
3. Explainvwhyvethicsvisvimportantvinvthevbusinessvenvironment.
4. Explainvwhyvethicalvresponsibilitiesvgovbeyondvlegalvcompliance.
5. Distinguishvthevethicsvofvpersonalvintegrityvfromvthevethicsvofvsocialvresponsibility.
6. Distinguishvethicalvnormsvandvvaluesvfromvothervbusiness-relatedvnormsvandvvalues.
7. Describevethicalvdecisionvmakingvasvavformvofvpracticalvreasoning.
OpeningvDecisionvPoint—WellsvFargovandvFacebook
ThevWellsvFargovandvFacebookvcasesvcanvbevusedvtovintroducevavrangevofvtopicsvthatvwillvemergevth
roughoutvthisvbook.vThevcasevinvolvesvdecisionvmakingvatvavnumbervofvlevels,vfromvindividualventr
y-levelvemployeesv(likevmanyvofvourvstudents),vtovbranchvmanagers,vtovmid-
levelvmanagement,vseniorvexecutives,vandvthevboardvofvdirectors.vThevcasesvalsovincludevdecisionsvi
ndividualsvdirectlyvinvolvedvinvwrongdoingvasvwellvasvindividualsvwhovblewvthevwhistlevonvwrongd
oing.vAvgoodvdiscussionvcanvbevgeneratedvbyvaskingvstudentsvtovassignvresponsibility,v bothvinvterm
svofvwhovisvatvfaultv(whovisvaccountable?)vandvwhatvcouldvbevonevtovpreventvitvfromvreoccurringv(wh
atvcausedvit?).
WevhavevaddedvavnewvshortvcasevdescriptionvinvolvingvFacebookvtovthisvDecisionvPointvforvseveralv
reasons.vFirst,vFacebookvhelpsvbringvoutvthevbroadervsocialvandvpoliticalvdimensionsvofvethicalvdeci
sionvmakingvmorevdirectly.vStudentsvwillvseevthevdifficultyvinvseparatingvbusinessvdecisionsvfromvbr
oadervsocialvandvethicalvdecisions.vSecond,vthevFacebookvcasevalsovinvolvesvsomevexamplesvofvinsi
dersvwhovcalledvoutvunethicalvactivities.vDespitevthevpressuresvinvallvorganizationsvtovconform,vitvisv
possiblevforvindividualsvtovstandvupvforvtheirvethicalvbeliefs.vFinally,vFacebookvandvsocialvmediavca
nvbevavmorevrelevantvexamplevforvmanyvstudentsvthanvbanking.
Thesevdiscussionsvcanveasilyvleadvintovthevdecision-
makingvmodelvthatvwillvbevintroducedvlatervinvthevchapter.vWhatvfactsvwouldvbevhelpfulvtovmakevthe
sevjudgmentsvofvresponsibility?vWhatvfactsvwouldvchangevyourvdecision?vWhatvfactsvconfirmedvyo
urvinitialvthoughts?vWhovarevthevstakeholdersvinvolved,vrangingvfromventry-
levelvemployees,vtovcustomers,vtovstockholders,vtovcompetitors.vWhatvstake,vexactly,vdovthesevgrou
psvhavevinvthisvcase?vHowvwerevtheyvharmed?vHow,vifvatvall,vwerevtheirvinterestsvrepresentedvinvthev
process?
Thesevarevalsovgoodvcasesvwithvwhichvtovintroducevthevtopicsvofvcorporatevculturevandvleadership.vHowv
werevthevdecisionsvmadevbyvindividualsvinfluencedvbyvthevsurroundingvculture,vandvhowvdid
1-1
,Chapterv01—EthicsvandvBusiness
thatvculturevemergevatvWellsvFargo?vAtvFacebook?vHowvfreevwerevemployeesvatveveryvlevel,vinclud
ingvseniorvexecutives,vtovdivergevfromvthevprevalentvculture?vHowvmightvthatvinstitutionalvculturevb
evchanged?vWhovisvresponsiblevforvinstitutionalvdecisions?vWhichvinstitutionalvpoliciesvandvpractic
esvenabledvthisvscandal?vHowvmightvtheyvbevchangedvtovavoidvavreoccurrence?
Anothervtopicvthatvcanvbevintroducedvinvolvesvprofessionalvresponsibilitiesvofvbankersvandvfinancia
lvprofessionalsvatvWells,vandvITvspecialistsvatvFacebook.vThisvdiscussionvcanvbevhelpfulvinvsettingvth
evstagevforvChapterv5vandvthevgeneralvtopicvofvcorporatevsocialvresponsibility.vAvdiscussionvofvfiduci
aryvdutiesvcanvintroducevseveralvimportantvquestions.vWhatvresponsibilitiesvdovmanagers,vperhapsve
speciallyvseniorvexecutives,vhavevtovstockholders?vHowvmightvthesevresponsibilitiesvconflictvwithvt
heirvresponsibilitiesvasvfinancialvprofessionals?vFacebookvcasevalsovcanvfocusvdiscussionvonvquestio
nsvofvthevsocialvandvpoliticalvresponsibilitiesvofvbothvindividualsvandvcorporations.
Finally,vthisvcasevcanvalsovintroducevthevquestionvofvgovernmentvregulationvwithinvavmarketvecono
my.vWhatvisvthevpropervrolevforvgovernmentvagencies,vbothvinvtermsvoffsettingvstandardsvtovpreventv
misconductvandvinvenforcingvsanctionsvaftervthevfact?vHowvdoesvthisvinfluencevthev“freevmarket”vsy
stem?vInvwhatvsensevarevcorporationsv“citizens”vofvthevcountriesvinvwhichvtheyvoperate,vandvwhatvre
sponsibilitiesvdoesvthatvimply?
I. Introduction:vGettingvComfortablevwithvthevTopic
Itvisvnotvuncommonvforvstudentsvtoventervavbusinessvethicsvclassvwithvsomevdegreevofvdoubt,vconfusi
on,vandvapprehensionvaboutvthevtopic.vThisvopeningvchaptervaimsvtovrelievevthosevconcernsvbyvintro
ducingvbusinessvethicsvasvanvunavoidablevandvnonthreateningvpartvofvbusinessv(andvlife).
Thevtopicvisvintroducedvbyvreviewingvsomevofvthevpastvandvrecentvwell-
knownvscandalsvbutvalsovpointingvoutvsomevwell-
knownvexamplesvofvcommendablevcorporatevethics.vItvcanvbevworthwhilevtovremindvstudentsvofvbes
tvcasevexamplesvasvavmeansvtovremindingvthemvthatvbusinessvethicsvdoesvnotvassumevthatvonlyvthevba
dvcasesvdeservevattention.
Wevalsovremindvstudentsvthatvbusinessvethicsvisvnotvlimitedvtovthevtypevofvmajorvcorporatevdecisions
vwithvdramaticvsocialvconsequences. vAtvsomevpoint veveryvworker,vandvcertainlyv everyonevinvavman
agementvrole,vwillvbevfacedvwithvanvissuevthatvwillvrequirevethicalvdecisionvmaking.vWevhavevalsove
xpandedvthisvsectionvtovincludevavbroadervdiscussionvofvthevrolevethicsvplaysvinvmanyvlifevexperienc
esvoutsidevasvwellvasvinsidevbusiness.
Thisvopeningvsectionvidentifiesvfivevgeneralvgoalsvforvavbusinessvethicsvclass:
1. Developvthevknowledgevbasevandvskillsvneededvtovidentifyvethicalvissues.
2. Understandvhowvandvwhyvpeoplevbehavevunethically.
3. vDecidev howv wev shouldv act,v whatv wev shouldv do,v andv thev typev ofv personv wev shouldv bev asvi
ndividuals.
4. Createvethicalvorganizations.
5. Thinkvthroughvthevsocial,veconomic,vandvpoliticalvpoliciesvthatvwevshouldvsupportvasvcitizens.
1-2
, Chapterv01—EthicsvandvBusiness
II. BusinessvEthicsvasvEthicalvDecisionvmaking
Wevmovedvthisvsectionvupvtovanvearlyvpointvinvthisvchaptervsovthatvstudentsvcanvbevmorevdire
ctlyvandvimmediatelyvintroducedvtovWHATvethicsvinvolvesvandvwhatvitvis.vSomevreviewersv
suggestedvthatvthevpreviousvorganizationvspentvtoovmuchvtimevtalkingvABOUTvethics,vbefor
evactuallyvsayingvwhatvitvis.
a. Sovwhatvisvthevpointvofvavbusinessvethicsvcourse?vOurvgeneralvapproachvthroughoutvthi
svtextvisvtovexplainvethicsvasvavmiddlevgroundvbetweenvthosevwhovunderstandvethicsvinvab
solutistvandvcertainvterms,vandvthosevwhovdenyvanyvreasonablevorvobjectivevbasisvforveth
icalvclaims.vThisvtextvneithervpreachesvdogmaticvethicalvtruthsvnorvabandonsvhopevforvet
hicalvprogressvandvrationality.
b. WevincludevavdiscussionvofvSocratesvandvThrasymachus.vRationalvdecisionvmakingva
ndvpersuasionvversusvimposingvone’svviewvonvothers.vWhilevstudentsvmightvinitiallyvseev
thisvasvanvaside,vthevcrucialvpointvisvworthvemphasizing—
perhapsvmorevsovinvlightvofvrecentvU.S.vpoliticalvdebates.vThisvtextv(likevSocrates)vdoesva
ssumevthatvhumansvcanvbevrationalvenoughvtovsettlevdisagreementsvbyvthinkingvthemvthr
oughvandvfindingvrationalvconclusionsvthatvbindvallvpeople.vInvanyvsocietyvinvwhichvpeop
levdisagreev(andvwherevwouldvthatvnotvbe?),vthevalternativevtovrationalvdiscussion,vpersu
asion,vandvultimatelyvanvagreementvisvpower/forcev(Thrasymachus).
i. Asv thev titlev ofv thisv bookv suggests,v ourv approachv tov businessv ethicsv will
emphasizevethicalvdecisionvmaking.
ii. HistoricalvContext:vOnvonevhand,vethicsvrefersvtovanvacademicvdisciplinevwithva
vcenturies voldvhistoryvandvwevmight vexpectvknowledgevaboutvthisvhistoryvtovbeva
mongvthevprimaryvgoalsvofvavclassvinvethics.
1. Thus,vinvanvethicsvcourse,vstudentsvmightvbevexpectedvtovlearnvaboutvthevg
reatvethicistsvofvhistoryvsuchvasvAristotle,vJohnvStuartvMill,vandvImmanu
elvKant.vAsvhappensvinvmanyvothervcourses,vthisvapproachvtovethicsvwoul
dvfocusvonvthevinformationalvcontentvofvthevclass.
*ChaptervObjectivev2vAddressedvBelow*
iii. EthicalvBehavior/NormativevContent:vYet,vaccordingvtovsomevobservers,vlear
ningvaboutvethicalvtheoriesvandvgainingvknowledgevaboutvthevhistoryvofvethicsvisv
besidevthevpoint.
1. Manyvpeople,vrangingvfromvbusinessesvlookingvtovhirevcollegevgraduates
vtovbusinessvstudentsvandvteachersvthemselves,vexpectvanvethicsvclassvtova
ddressvethicalvbehavior,vnotvjustvinformationvandvknowledgevaboutvethi
cs.
2. Aftervall,vshouldvnotvanvethicsvclassvhelpvpreventvfuturevethicalvscandals?
vEthicsvrefersvnotvonlyvtovanvacademicvdisciplinevbutvtovthatvarenavofvhum
anvlifevstudiedvbyvthisvacademicvdiscipline,vnamely,vhowvhumanvbeings
vproperly vshouldvlivevtheirvlives.
1-3
