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Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Business & Society
Ethics, Sustainability, and Stakeholder Management
TENTH EDITION
ARCHIE B. CARROLL
University of Georgia
JILL A. BROWN
Bentley University
ANN K. BUCHHOLTZ
Rutgers University
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Business & Society: Ethics, © 2018, 2015 Cengage Learning
Sustainability, and Stakeholder
ALL RIGHTS RESERVED. No part of this work covered by the copyright
Management, Tenth Edition
herein may be reproduced or distributed in any form or by any means,
Archie B. Carroll, Jill A. Brown, and except as permitted by U.S. copyright law, without the prior written
Ann K. Buchholtz permission of the copyright owner.
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Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Brief Contents
Preface xvii
About the Authors xxv
Preface xvii
About the Authors xxv
CHAPTER 2
Corporate Social Responsibility, Citizenship, and Sustainability . . . . . . . . . . . . . . . . . 30
2.1 Corporate Social Responsibility as a Concept 31
2.1a Historical Perspectives on CSR 32
2.1b Adaptations of the Economic Model 33
2.1c Evolving Meanings of CSR 35
2.1d A Four-Part Definition of CSR 35
2.1e The Pyramid of Corporate Social Responsibility 39
2.1f CSR in Practice 42
2.2 Traditional Arguments against and for CSR 44
2.2a Arguments against CSR 44
2.2b Arguments in Support of CSR 45
2.2c The Business Case for CSR 46
iv
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents v
CHAPTER 3
The Stakeholder Approach to Business, Society, and Ethics . . . . . . . . . . . . . . . . . . . . . 71
3.1 Origins of the Stakeholder Concept 72
3.1a What Is the Stake in Stakeholder? 72
3.1b What Is a Stakeholder? 72
3.2 Who Are Business’s Stakeholders? 73
3.2a Three Views of the Firm: Production, Managerial, and Stakeholder 74
3.2b Primary and Secondary Stakeholders 75
3.2c Important Stakeholder Attributes: Legitimacy, Power, Urgency 76
3.3 Stakeholder Approaches: Strategic, Multifiduciary, and Synthesis 78
3.4 Three Values of the Stakeholder Model 80
3.4a Descriptive Value 80
3.4b Instrumental Value 80
3.4c Normative Value 80
3.5 Stakeholder Management: Five Key Questions 80
3.5a Who Are the Organization’s Stakeholders? 81
3.5b What Are Our Stakeholders’ Stakes? 85
3.5c What Opportunities and Challenges Do Our Stakeholders Present? 86
3.5d What Responsibilities Does a Firm Have toward Its Stakeholders? 87
3.5e What Strategies or Actions Should Management Take? 88
3.6 Effective Stakeholder Management 91
3.6a Stakeholder Thinking 91
3.6b Developing a Stakeholder Culture 91
3.6c Stakeholder Management Capability 92
3.6d Stakeholder Engagement 93
3.6e The Stakeholder Corporation 95
3.6f Principles of Stakeholder Management 96
3.7 Strategic Steps toward Global Stakeholder Management 96
3.7a Implementation 96
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
vi Contents
Summary 97
Key Terms 97
Discussion Questions 98
Endnotes 98
CHAPTER 5
Strategic Management and Corporate Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
5.1 Strategic Management and Corporate Public Policy 135
5.1a Relationship of Ethics to Strategic Management 136
5.2 Four Key Strategy Levels 137
5.2a Four Strategy Levels Described 137
5.2b Emphasis on Enterprise-Level Strategy 138
5.3 The Strategic Management Process 143
5.3a Strategic Corporate Social Responsibility 144
5.3b Measuring Sustainable Corporate Performance 145
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents vii
CHAPTER 6
Risk, Issue, and Crisis Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
6.1 The Relationships between Risk, Issue, and Crisis Management 156
6.2 Risk Management 156
6.2a Risk Management and Sustainability 157
6.3 Issue Management 158
6.3a A Portfolio Approach 159
6.3b Issue Definition and the Issue Management Process 159
6.3c Issue Development Process 166
6.3d Issue Management in Practice 167
6.4 Crisis Management 168
6.4a The Nature of Crises 169
6.4b Managing Business Crises 172
6.4c Crisis Communications 174
6.4d Successful Crisis Management 176
Summary 177
Key Terms 178
Discussion Questions 178
Endnotes 178
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
viii Contents
CHAPTER 8
Managerial and Organizational Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
8.1 Ethics Issues Arise at Different Levels 225
8.1a Personal Level 225
8.1b Managerial and Organizational Levels 226
8.1c Industry or Profession Level 227
8.1d Societal and Global Levels 227
8.2 Managerial Ethics and Ethical Principles 228
8.2a Principles Approach to Ethics 228
8.2b Ethical Tests Approach to Decision Making 237
8.3 Managing Organizational Ethics 240
8.3a Factors Affecting the Organization’s Moral Climate 241
8.3b Improving the Organization’s Ethical Culture 243
8.4 Best Practices for Improving an Organization’s Ethics 245
8.4a Top Management Leadership (Moral Management) 246
8.4b Effective Communication of Ethical Messages 249
8.4c Ethics and Compliance Programs and Officers 249
8.4d Setting Realistic Objectives 252
8.4e Ethical Decision-Making Processes 252
8.4f Codes of Ethics or Conduct 254
8.4g Disciplining Violators of Ethics Standards 255
8.4h Ethics “Hotlines” and Whistle-Blowing Mechanisms 257
8.4i Business Ethics Training 257
8.4j Ethics Audits and Risk Assessments 260
8.4k Corporate Transparency Policies 260
8.4l Board of Directors Leadership and Oversight 261
8.5 Behavioral Ethics—Toward a Deeper Understanding 262
8.6 Moral Decisions, Managers, and Organizations 264
Summary 265
Key Terms 265
Discussion Questions 266
Endnotes 266
CHAPTER 9
Business Ethics and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
9.1 The New World of Big Data 273
9.1a Social Media 273
9.1b Surveillance 274
9.2 Technology and the Technological Environment 274
9.3 Characteristics of Technology 275
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents ix
CHAPTER 10
Ethical Issues in the Global Arena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
10.1 Business Challenges in a Global Environment 306
10.2 Ethical Issues in the Global Business Environment 308
10.2a Questionable Marketing and Plant Safety Practices 309
10.2b Human Rights, Sweatshops, and Labor Abuses 312
10.2c Corruption, Bribery, and Questionable Payments 318
10.3 Improving Global Business Ethics 325
10.3a Balancing and Reconciling the Ethics Traditions of Home and Host Countries 326
10.3b Strategies for Improving Global Business Ethics 328
10.3c Corporate Action against Corruption 334
Summary 334
Key Terms 335
Discussion Questions 335
Endnotes 336
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
x Contents
CHAPTER 12
Business Influence on Government and Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . 370
12.1 Corporate Political Participation 371
12.2 Business Lobbying 371
12.2a Organizational Levels of Lobbying 373
12.3 Corporate Political Spending 381
12.3a Arguments for Corporate Political Spending 383
12.3b Arguments against Corporate Political Spending 383
12.4 Political Action Committees 383
12.4a The Impact of Super PACs 384
12.4b Agency Issues 384
12.5 Political Accountability and Transparency 385
12.6 Strategies for Corporate Political Activity 387
12.6a Financial Performance Outcomes 388
Summary 388
Key Terms 389
Discussion Questions 389
Endnotes 390
CHAPTER 13
Consumer Stakeholders: Information Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
13.1 The Consumer Movement 396
13.1a Ralph Nader’s Consumerism 397
13.1b Consumerism Today 397
13.1c Product/Service Information Issues 399
13.1d Advertising Issues 400
13.1e Specific Controversial Advertising Issues 403
13.1f Warranties and Guarantees 417
13.1g Packaging and Labeling 418
13.1h Other Product Information Issues 421
13.2 The Federal Trade Commission (FTC) 421
13.2a The FTC in the 21st Century 422
13.2b Consumer Financial Protection Bureau 423
13.3 Self-Regulation in Advertising 424
13.3a The National Advertising Division’s Program 425
13.4 Moral Models and Consumer Stakeholders 425
Summary 426
Key Terms 426
Discussion Questions 427
Endnotes 427
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents xi
CHAPTER 14
Consumer Stakeholders: Product and Service Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
14.1 Two Central Issues: Quality and Safety 433
14.1a The Issue of Quality 433
14.1b The Issue of Safety 436
14.1c Product Liability 441
14.2 Consumer Product Safety Commission 445
14.3 Food and Drug Administration 447
14.4 Business’s Response to Consumer Stakeholders 448
14.5 Customer Service Programs 448
14.6 Total Quality Management Programs 450
14.7 Six Sigma Strategy and Other Processes 451
Summary 452
Key Terms 453
Discussion Questions 453
Endnotes 454
CHAPTER 15
Sustainability and the Natural Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457
15.1 The Sustainability Imperative 458
15.2 The Natural Environment 460
15.3 A Brief Introduction to the Natural Environment 461
15.4 The Impact of Business on the Natural Environment 462
15.4a Climate Change 463
15.4b Energy 463
15.4c Water 464
15.4d Biodiversity and Land Use 465
15.4e Chemicals, Toxics, and Heavy Metals 466
15.4f Air Pollution 467
15.4g Waste Management 467
15.4h Ozone Depletion 469
15.4i Oceans and Fisheries 469
15.4j Deforestation 470
15.5 Responsibility for Environmental and Sustainability Issues 471
15.5a Environmental Ethics 471
15.5b The NIMBY Problem 472
15.6 The Role of Governments in Environmental and Sustainability Issues 473
15.6a Responses of Governments in the United States 473
15.6b International Government Environmental and Sustainability Responses 477
15.7 Other Environmental and Sustainability Stakeholders 478
15.7a Environmental Interest Groups 478
15.7b Other Sustainability Interest Groups 480
15.8 Business Environmentalism and Sustainability 482
15.8a Patagonia 482
15.8b Apple 483
15.8c CVS Health 483
15.8d Tesla 483
15.8e Business and Environmental Partnerships-Activists, NGOs, and Interest Groups 483
15.9 The Future of Business: Greening and/or Growing? 484
Summary 484
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
xii Contents
CHAPTER 16
Business and Community Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
16.1 Community Involvement 492
16.1a Volunteer Programs 494
16.1b Managing Community Involvement 495
16.2 Corporate Philanthropy or Business Giving 496
16.2a A Brief History of Corporate Philanthropy 497
16.2b A Call for Transparency in Corporate Philanthropy 498
16.2c Giving to the “Third Sector”: The Nonprofits 499
16.2d Managing Corporate Philanthropy 503
16.3 Detrimental Impacts on Communities 508
16.3a Offshoring and Reshoring 508
16.3b Business and Plant Closings 510
Summary 514
Key Terms 515
Discussion Questions 515
Endnotes 516
CHAPTER 18
Employee Stakeholders: Privacy, Safety, and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . 551
18.1 Privacy in the Workplace 552
18.1a Collection and Use of Employee Information by Employers 554
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents xiii
CHAPTER 19
Employment Diversity and Discrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580
19.1 Diversity in the Workforce 581
19.2 The Civil Rights Movement 582
19.3 Federal Laws Prohibiting Discrimination 583
19.3a Title VII of the Civil Rights Act of 1964 583
19.3b Age Discrimination in Employment Act of 1967 585
19.3c Equal Pay Act of 1963 585
19.3d Rehabilitation Act of 1973, Section 503 586
19.3e Americans with Disabilities Act 586
19.3f Civil Rights Act of 1991 591
19.3g Equal Employment Opportunity Commission 591
19.4 Expanded Meanings of Employment Discrimination 592
19.4a Disparate Treatment 592
19.4b Disparate Impact 593
19.5 Issues in Employment Discrimination 594
19.5a Inequality Persists Despite Diversity Efforts 594
19.5b Race and Ethnicity 594
19.5c Color 595
19.5d Gender 596
19.5e Other Forms of Employment Discrimination 598
19.6 Affirmative Action in the Workplace 602
19.6a The Future of Diversity Management 604
Summary 604
Key Terms 605
Discussion Questions 605
Endnotes 606
Cases 611
Subject Index 748
Name Index 763
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