Preface ix Acknowledgments xi 1 Ethics in the World of Business 1 CASE 1.1 Johnson & Johnson: The Tylenol Crisis INTRODUCTION 3 CASE 1.2 Four Business Decisions 3 BUSINESS DECISION MAKING 4 CASE 1.3 The Ethics of Hardball 12 ETHICS, ECONOMICS, AND LAW 13 ETHICS AND MANAGEMENT 18 MORALITY, ETHICS, AND ETHICAL THEORY 22 CASE 1.4 A Sticky Situation 23 CASE 1.5 Argus Incorporated: A Leasing Triangle 25 2 Utilitarianism 29 CASE 2.1 Lockheed in Japan 29 INTRODUCTION 30 TWO TYPES OF ETHICAL THEORIES 31 CLASSICAL UTILITARIANISM 34 THE FORMS OF UTILITARIANISM 36 COST-BENEFIT ANALYSIS 39 CASE 2.2 Exporting Pollution 44 CASE 2.3 Beech-Nut's Bogus Apple Juice 45 3 Kantian Ethics, Rights, and Virtue 49 CASE 3.1 Big Brother at Procter & Gamble 49 INTRODUCTION 51 iii
iv Contents KANT'S ETH ICAL TH EORY 51 THE CONCEPT OF A RIGHT 57 VIRTUE ETHICS 61 CASE 3.2 Clean Hands in a Dirty Business 66 CASE 3.3 An Auditor's Dilemma 68 4 Justice and the Market System 71 CASE 4.1 Green Giant Runs for the Border 71 INTRODUCTION 73 ARISTOTLE'S ANALYSIS OF JUSTICE 74 UTILITY AND JUSTICE 77 THE EGALITARIAN THEORY OF JOHN RAWLS 79 UTILITY AND THE MARKET SYSTEM 84 THE LIBERTARIAN JUSTIFICATION OF THE MARKET 89 CASE 4.2 Executive Compensation 93 CASE 4.3 Merck and AIDS in South Africa 95 5 Whistle-Blowing 101 CASE 5.1 Two Whistle-Blowers 101 INTRODUCTION 103 WHAT IS WHISTLE-BLOWING? 104 THE JUSTIFICATION OF WHISTLE-BLOWING 106 THE CONDITIONS FOR JUSTIFIED WHISTLE-BLOWING 111 IS THERE A RIGHT TO BLOW THE WHISTLE? 114 DEVELOPING A COMPANY WHISTLE-BLOWING POLICY 118 CASE 5.2 A Whistle-Blower Accepts a "Deal" 120 CASE 5.3 Better Late than Never? 121 6 Trade Secrets and Conflict of Interest 125 CASE 6.1 The Aggressive Ad Agency 125 INTRODUCTION 127 THE DEFINITION OF A TRADE SECRET 127 THE ARGUMENTS FOR TRADE SECRET PROTECTION 128 COMPETITOR INTELLIGENCE GATHERING 136 CONFLICT OF INTEREST 138
v MANAGING CONFLICT OF INTEREST 147 CASE 6.2 The Conflict of an Insurance Broker 150 CASE 6.3 Procter & Gamble Goes Dumpster Diving 151 7 Privacy 155 CASE 7.1 Psychological Testing at Dayton Hudson 155 INTRODUCTION 156 CHALLENGES TO PRIVACY 157 THE CONCEPT OF PRIVACY 161 THE VALUE OF PRIVACY 164 THE PRIVACY OF EMPLOYEE RECORDS 168 PRIVACY ON THE INTERNET 173 CASE 7.2 Three Challenges to Employee Privacy 179 CASE 7.3 Ford Meter Box 180 CASE 7.4 Lotus MarketPlace: Households 181 8 Discrimination and Affirmative Action 187 CASE 8.1 Discrimination at Texaco 187 INTRODUCTION 189 WHAT IS DISCRIMINATION? 190 ETHICAL ARGUMENTS AGAINST DISCRIMINATION 196 AVOIDING DISCRIMINATION 198 AFFIRMATIVE ACTION 203 Conclusion 213 CASE 8.2 The Alaskan Salmon Cannery 213 CASE 8.3 The Walkout at Wilton's 215 9 Women and Family Issues 219 CASE 9.1 Jacksonville Shipyards 219 INTRODUCTION 221 SEXUAL HARASSMENT 222 CASE 9.2 Sexual Harassment or Business as Usual? 228 COMPARABLE WORTH 229 CASE 9.3 The Mommy Track 239 FAMILY AND WORK 240 CASE 9.4 Is Family-Friendly Always Fair? 245
vi Contents 1 0 Unjust Dismissal 249 CASE 10.1 The Firing of Robert Greeley 249 INTRODUCTION 250 PROPERTY RIGHTS AND EMPLOYMENT AT WILL 251 PROPERTY RIGHTS AND DEMOCRACY 254 THE FREEDOM OF CONTRACT ARGUMENT 257 PROTECTING AGAINST UNJUST DISMISSAL 265 CASE 10.2 Waiving the Right to Sue 268 CASE 10.3 A "State-of-the-Art" Termination 269 11 Marketing, Advertising, and Product Safety 273 CASE 11.1 Dow Corning's Breast Implants 273 INTRODUCTION 275 ETHICAL ISSUES IN MARKETING 275 ADVERTISING 282 PRODUCT LIABILITY 293 CASE 11.2 Volvo's "Bear Foot" Misstep 303 CASE 11.3 The Target Marketing of Cigarettes 304 12 Occupational Health and Safety 311 CASE 12.1 The Regu lation of Benzene 311 INTRODUCTION 312 THE SCOPE OF THE PROBLEM 313 THE RIGHT TO A SAFE AND HEALTHY WORKPLACE 315 CASE 12.2 Whirlpool Corporation 321 THE RIGHT TO KNOW ABOUT AND REFUSE HAZARDOUS WORK 322 CASE 12.3 Johnson Controls, Inc. 329 THE PROBLEM OF REPRODUCTIVE HAZARDS 330 13 Ethics in Finance 339 CASE 13.1 Pacific Lumber Company 339 INTRODUCTION 340 FINANCIAL SERVICES 340 FINANCIAL MARKETS 345 INSIDER TRADING 350
vii HOSTILE TAKEOVERS 354 CASE 13.2 E. F. Hutton 362 CASE 13.3 Salomon Brothers 365 14 Ethics and Corporations 369 CASE 14.1 The Nun and the CEO 369 INTRODUCTION 371 CORPORATE SOCIAL RESPONSIBILITY 372 CORPORATE GOVERNANCE 381 CASE 14.2 Bath Iron Works 392 CORPORATE ETHICS PROGRAMS 394 CASE 14.3 Sears Auto Centers 402 CASE 14.4 Campbell Soup Company 404 15 International Business Ethics 411 CASE 15.1 Nike in Southeast Asia 411 INTRODUCTION 412 WHAT TO DO IN ROME 413 WAGES AND WORKING CONDITIONS 422 FOREIGN BRIBERY 427 CULTURAL DIFFERENCES 431 CASE 15.2 H. B. Fuller in Honduras 439 CASE 15.3 Shell Oil in Nigeria 441 Index 446