Managing Business Ethics
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Managing Business Ethics : Straight Talk about How to Do It Right

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Linda Trevino and Kate Nelson bring together a mix of theory and practice in Managing Business Ethics: Straight Talk about How to Do It Right 6th Edition. In this new edition, the dynamic author team of Linda Trevino, prolific researcher and Distinguished Professor, and Kate Nelson, Professor and longtime practitioner of strategic organizational communications and human resources, equip students with the pragmatic knowledge they need to identify and solve ethical dilemmas, understand their own and others ethical behavior, and promote ethical behavior in their organization. Managing Business Ethics is the perfect text to prepare students for a range of roles in the business world managers across business functions, communications professionals, compliance officers, corporate counsels, human resources managers, and senior executives.
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Product details

  • Paperback | 480 pages
  • 166 x 235 x 22mm | 624g
  • New York, United States
  • English
  • 6th Edition
  • 1118582675
  • 9781118582671
  • 1,270,985

Table of contents

PREFACE XIII ACKNOWLEDGMENTS XVII SECTION I INTRODUCTION 1 CHAPTER 1 INTRODUCING STRAIGHT TALK ABOUT MANAGING BUSINESS ETHICS: WHERE WE RE GOING AND WHY 2 Introduction 2 The Financial Disaster of 2008 4 Borrowing Was Cheap 4 Real Estate Became the Investment of Choice 5 Mortgage Originators Peddled Liar Loans 5 Banks Securitized the Poison and Spread it Around 6 Those Who Were Supposed to Protect Us Didn t 7 Moving Beyond Cynicism 9 Can Business Ethics Be Taught? 14 Aren t Bad Apples the Cause of Ethical Problems in Organizations? 14 Shouldn t Employees Already Know the Difference between Right and Wrong? 15 Aren t Adults Ethics Fully Formed and Unchangeable? 16 This Book is about Managing Ethics in Business 19 Ethics and the Law 21 Why Be Ethical? Why Bother? Who Cares? 21 Individuals Care about Ethics: The Motivation To Be Ethical 22 Employees Care about Ethics: Employee Attraction and Commitment 23 Managers Care about Ethics 24 Executive Leaders Care about Ethics 25 Industries Care about Ethics 26 Society Cares about Ethics: Business and Social Responsibility 26 The Importance of Trust 27 The Importance of Values 29 How This Book Is Structured 30 Conclusion 31 Discussion Questions 32 Exercise 33 Your Cynicism Quotient 33 Notes 34 SECTION II ETHICS AND THE INDIVIDUAL 37 CHAPTER 2 DECIDING WHAT S RIGHT: A PRESCRIPTIVE APPROACH 38 Ethics and the Individual 38 Ethical Dilemmas 38 Prescriptive Approaches to Ethical Decision Making in Business 39 Eight Steps to Sound Ethical Decision Making in Business 51 Practical Preventive Medicine 58 Conclusion 61 Discussion Questions 61 Exercise 62 Clarifying Your Values 62 Introducing the Pinto Fires Case 63 Case: Pinto Fires 63 Short Cases 68 Notes 68 CHAPTER 3 DECIDING WHAT S RIGHT: A PSYCHOLOGICAL APPROACH 70 Ethical Awareness and Ethical Judgment 70 Individual Differences, Ethical Judgment, and Ethical Behavior 74 Ethical Decision-Making Style 75 Cognitive Moral Development 76 Locus of Control 83 Machiavellianism 84 Moral Disengagement 85 Facilitators of and Barriers to Good Ethical Judgment 87 Thinking about Fact Gathering 87 Thinking about Consequences 88 Consequences as Risk 89 Thinking about Integrity 90 Thinking about Your Gut 92 Unconscious Biases 93 Emotions In Ethical Decision Making 94 Toward Ethical Action 96 Revisiting the Pinto Fires Case: Script Processing and Cost-Benefit Analysis 100 Cost-Benefit Analysis 102 Conclusion 104 Exercise 104 Understanding Cognitive Moral Development 104 Discussion Questions 105 Short Case 106 Notes 106 CHAPTER 4 ADDRESSING INDIVIDUALS COMMON ETHICAL PROBLEMS 110 Identifying Your Values and Voicing Them 111 People Issues 113 Discrimination 114 Harassment, Sexual and Otherwise 118 Conflicts of Interest 122 What Is It? 122 How We Can Think about This Issue 124 Why Is It an Ethical Problem? 125 Costs 125 Customer Confidence Issues 126 What Is It? 126 How We Can Think about This Issue 130 Why Is It an Ethical Problem? 130 Costs 130 Use of Corporate Resources 131 What Is It? 131 How We Can Think about This Issue 135 Why Is It an Ethical Problem? 136 Costs 136 When all Else Fails: Blowing the Whistle 136 When Do You Blow the Whistle? 139 How to Blow the Whistle 140 Conclusion 144 Discussion Questions 145 Short Cases 145 Notes 147 SECTION III MANAGING ETHICS IN THE ORGANIZATION 149 CHAPTER 5 ETHICS AS ORGANIZATIONAL CULTURE 150 Introduction 150 Organizational Ethics as Culture 151 What Is Culture? 151 Strong versus Weak Cultures 151 How Culture Influences Behavior: Socialization and Internalization 152 Ethical Culture: A Multisystem Framework 153 Alignment of Ethical Culture Systems 154 Ethical Leadership 156 Executive Leaders Create Culture 156 Leaders Maintain or Change Organizational Culture 157 Other Formal Cultural Systems 165 Selection Systems 165 Values and Mission Statements 167 Policies and Codes 168 Orientation and Training Programs 170 Performance Management Systems 171 Organizational Authority Structure 174 Decision-Making Processes 177 Informal Cultural Systems 178 Role Models and Heroes 179 Norms: The Way We Do Things around Here 180 Rituals 181 Myths and Stories 181 Language 182 Organizational Climates: Fairness, Benevolence, Self-Interest, Principles 184 Developing and Changing the Ethical Culture 185 How an Ethical Culture Can Become an Unethical Culture 186 Becoming a More Ethical Culture 187 A Cultural Approach to Changing Organizational Ethics 189 Audit of the Ethical Culture 190 A Cultural Systems View 190 A Long-Term View 191 Assumptions about People 191 Diagnosis: the Ethical Culture Audit 191 Ethical Culture Change Intervention 193 The Ethics of Managing Organizational Ethics 195 Conclusion 195 Discussion Questions 195 Case: Culture Change at Texaco 196 Case: An Unethical Culture In Need of Change: Tap Pharmaceuticals 198 Case: Bad to the Bone 200 Notes 202 CHAPTER 6 MANAGING ETHICS AND LEGAL COMPLIANCE 207 Introduction 207 Structuring Ethics Management 208 Making Ethics Comprehensive and Holistic 211 Managing Ethics: The Corporate Ethics Office 211 Ethics and Compliance Officers 211 The Ethics Infrastructure 213 The Corporate Ethics Committee 214 Communicating Ethics 215 Basic Communications Principles 215 Evaluating the Current State of Ethics Communications 218 Multiple Communication Channels for Formal Ethics Communication 220 Interactive Approaches to Ethics Communication 222 Mission or Values Statements 225 Organizational Policy 226 Codes of Conduct 227 Communicating Senior Management Commitment to Ethics 229 Formal and Informal Systems to Resolve Questions and Report Ethical Concerns 235 Using the Reward System to Reinforce the Ethics Message 238 Evaluating the Ethics Program 239 Surveys 240 Values or Compliance Approaches 241 Globalizing an Ethics Program 242 Conclusion 245 Discussion Questions 245 Short Case 246 Appendix: How Fines Are Determined under the U.S. Sentencing Guidelines 247 Notes 249 CHAPTER 7 MANAGING FOR ETHICAL CONDUCT 251 Introduction 251 In Business, Ethics is about Behavior 251 Practical Advice for Managers: Ethical Behavior 252 Our Multiple Ethical Selves 252 The Kenneth Lay Example 253 The Dennis Levine Example 255 Practical Advice for Managers: Multiple Ethical Selves 255 Rewards and Discipline 256 People Do What Is Rewarded and Avoid Doing What Is Punished 256 People Will Go the Extra Mile to Achieve Goals Set by Managers 257 How Goals Combined with Rewards Can Encourage Unethical Behavior 258 Practical Advice for Managers: Goals, Rewards, and Discipline 259 Recognize the Power of Indirect Rewards and Punishments 260 Can Managers Really Reward Ethical Behavior? 262 What About the Role of Discipline? 263 Practical Advice for Managers: Discipline 265 People Follow Group Norms 266 Everyone s Doing It 266 Rationalizing Unethical Behavior 266 Pressure to Go Along 267 Practical Advice for Managers: Group Norms 267 People Fulfill Assigned Roles 268 The Zimbardo Prison Experiment 269 Roles at Work 270 Conflicting Roles Can Lead to Unethical Behavior 271 Roles Can Also Support Ethical Behavior 271 Practical Advice for Managers: Roles 272 Obedience to Authority: People Do What They re Told 272 The Milgram Experiments 273 Obedience to Authority at Work 275 Practical Advice for Managers: Obedience to Authority 275 Responsibility is Diffused in Organizations 275 Don t Worry We re Taking Care of Everything 276 Diffusing Responsibility in Groups 276 Diffusing Responsibility by Dividing Responsibility 277 Diffusing Responsibility by Creating Psychological Distance 278 Practical Advice for Managers: Personal Responsibility 279 Conclusion 280 Am I Walking My Ethical Talk? 280 Discussion Questions 281 Case: Sears, Roebuck, and Co.: The Auto Center Scandal 281 Short Case 284 Notes 285 CHAPTER 8 ETHICAL PROBLEMS OF MANAGERS 288 Introduction 288 Managers and Employee Engagement 288 Managing the Basics 291 Hiring and Work Assignments 291 Performance Evaluation 292 Discipline 295 Terminations 297 Why Are These Ethical Problems? 299 Costs 299 Managing a DiverseWorkforce 300 Diversity 301 Harassment 302 Family and Personal Issues 304 Why Are These Ethical Problems? 306 Costs 306 The Manager as a Lens 306 The Buck Stops with Managers 307 Managers Are Role Models 309 Managing Up and Across 310 Honesty Is Rule One 311 Standards Go Both Ways 312 Conclusion 313 Discussion Questions 313 Short Cases 314 Notes 315 SECTION IV ORGANIZATIONAL ETHICS AND SOCIAL RESPONSIBILITY 317 CHAPTER 9 CORPORATE SOCIAL RESPONSIBILITY 318 Introduction 318 Why Corporate Social Responsibility? 318 Types of Corporate Social Responsibility 325 Economic Responsibilities 325 Legal Responsibilities 326 Ethical Responsibilities 326 Philanthropic Responsibilities 327 Triple Bottom Line and Environmental Sustainability 330 Is Socially Responsible Business Good Business? 334 The Benefit of a Good Reputation 334 Socially Responsible Investors Reward Social Responsibility 335 The Cost of Illegal Conduct 335 The Cost of Government Regulation 337 What the Research Says about Social Responsibility and Firm Performance 339 Being Socially Responsible Because It s the Right Thing to Do 342 Conclusion 344 Discussion Questions 344 Case: Merck and River Blindness 345 Short Case 346 Notes 347 CHAPTER 10 ETHICAL PROBLEMS OF ORGANIZATIONS 351 Introduction 351 Managing Stakeholders 352 Ethics and Consumers 353 Conflicts of Interest 354 Product Safety 362 Advertising 367 Ethics and Employees 372 Employee Safety 372 Employee Downsizings 377 Ethics and Shareholders 380 Ethics and the Community 385 Why Are These Ethical Issues? 388 Costs 388 Conclusion 389 Short Cases 390 Discussion Questions 395 Notes 395 CHAPTER 11 MANAGING FOR ETHICS AND SOCIAL RESPONSIBILITY IN A GLOBAL ENVIRONMENT 400 Introduction 400 Focus on the Individual Expatriate Manager 401 The Difficulties of Foreign Business Assignments 401 The Need for Structure, Training, and Guidance 401 Foreign Language Proficiency 402 Learning about the Culture 402 Recognizing the Power of Selective Perception 404 Assumption of Behavioral Consistency 405 Assumption of Cultural Homogeneity 405 Assumption of Similarity 406 How Different Are Ethical Standards in Different Cultures Really? 413 Development of Corporate Guidelines and Policies for Global Business Ethics 414 The Organization in a Global Business Environment 418 Deciding to Do Business in a Foreign Country 419 Development of a Transcultural Corporate Ethic 426 Conclusion 431 Discussion Questions 431 Short Case 432 Case: Selling Medical Ultrasound Technology in Asia 432 Case: Google Goes to China 436 Notes 441 INDEX 447
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