www.freebookslides.com www.freebookslides.com Business and Society Stakeholders, Ethics, Public Policy Fifteenth Edition Anne T Lawrence San José State University James Weber Duquesne University www.freebookslides.com BUSINESS AND SOCIETY: STAKEHOLDERS, ETHICS, PUBLIC POLICY, FIFTEENTH EDITION Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2017 by McGraw-Hill Education All rights reserved Printed in the United States of America Previous editions © 2014 and 2011 No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper DOW/DOW1 ISBN 978-1-259-31541-1 MHID 1-259-31541-X Senior Vice President, Products & Markets: Kurt L Strand Vice President, General Manager, Products & Markets: Marty Lange Vice President, Content Design & Delivery: Kimberly Meriwether David Managing Director: Susan Gouijnstook Brand Manager: Laura Hurst Spell Editorial Director: Michael Ablassmeir Product Developer: Laura Hurst Spell Marketing Manager: Casey Keske Digital Product Analyst: Sankha Basu Director, Content Design & Delivery: Terri Schiesl Executive Program Manager: Faye M Herrig Content Project Managers: Mary Jane Lampe Buyer: Susan K Culbertson Cover Designer: Studio Montage Content Licensing Specialist: Deanna Dausener Cover credit: Alija/Getty Images Compositor: SPi Global Printer: R R Donnelley All credits appearing on page or at the end of the book are considered to be an extension of the copyright page Library of Congress Cataloging-in-Publication Data Names: Lawrence, Anne T., author | Weber, James (Business ethics professor), author Title: Business and society : stakeholders, ethics, public policy / Anne T Lawrence, San Jose State University, James Weber, Duquesne University Description: Fifteenth edition | New York, NY : McGraw-Hill Education, [2017] Identifiers: LCCN 2015044071 | ISBN 9781259315411 (alk paper) Subjects: LCSH: Social responsibility of business Classification: LCC HD60 F72 2017 | DDC 658.4/08 dc23 LC record available at http://lccn.loc.gov/2015044071 The Internet addresses listed in the text were accurate at the time of publication The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites All brand or product names are trademarks or registered trademarks of their respective companies CPT five-digit codes, nomenclature, and other data are © 2015 American Medical Association All rights reserved No fee schedules, basic unit, relative values, or related listings are included in the CPT The AMA assumes no liability for the data contained herein CPT codes are based on CPT 2015 All references to ICD-10-CM codes, guidelines, or related data are based on the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) 2015 All references to CMS HCPCS codes, guidelines, or related data are based on the Centers for Medicare and Medicaid Services (CMS), Healthcare Common Procedure Coding System (HCPCS) Level II 2015 All names, situations, and anecdotes are fictitious They not represent any person, event, or medical record mheducation.com/highered www.freebookslides.com About the Authors Anne T Lawrence San José State University Anne T Lawrence is a professor of management at San José State University She holds a Ph.D from the University of California, Berkeley, and completed two years of postdoctoral study at Stanford University Her articles, cases, and reviews have appeared in many journals, including the Academy of Management Review, Administrative Science Quarterly, Case Research Journal, Journal of Management Education, California Management Review, Business and Society Review, Research in Corporate Social Performance and Policy, and Journal of Corporate Citizenship Her cases in business and society have been reprinted in many textbooks and anthologies She has served as guest editor of the Case Research Journal for two special issues on business ethics and human rights, and social and environmental entrepreneurship She served as president of both the North American Case Research Association (NACRA) and the Western Casewriters Association and is a Fellow of NACRA, from which she received a Distinguished Contributor Award in 2014 She received the Emerson Center Award for Outstanding Case in Business Ethics (2004) and the Curtis E Tate Award for Outstanding Case of the Year (1998, 2009, and 2015) At San José State University, she was named Outstanding Professor of the Year in 2005 In 2015, she received a Master Teacher in Ethics Award from The Wheatley Institution at Brigham Young University James Weber Duquesne University James Weber is a professor of management and business ethics at Duquesne University He also serves as the executive director of the Institute for Ethics in Business and coordinates the Masters of Science in Leadership and Business Ethics program at Duquesne He holds a Ph.D from the University of Pittsburgh and has taught at the University of San Francisco, University of Pittsburgh, and Marquette University His areas of interest and research include managerial and organizational values, cognitive moral reasoning, business ethics, ethics training and education, eastern religions’ ethics, and corporate social audit and performance His work has appeared in Organization Science, Human Relations, Business & Society, Journal of Business Ethics, Academy of Management Perspectives, and Business Ethics Quarterly He received the SIM Sumner Marcus Award for lifetime contribution to the Social Issues in Management division of the Academy of Management in 2013 and the Best Reviewer Award from Business & Society in 2015 He was recognized by the Social Issues in Management division with the Best Paper Award in 1989 and 1994 and received the Best Article Award from the International Association for Business and Society (IABS) in 1998 He has served as division and program chair of the Social Issues in Management division of the Academy of Management He has also served as president and program chair of the IABS iii www.freebookslides.com Preface In a world economy that is becoming increasingly integrated and interdependent, the relationship between business and society is becoming ever more complex The globalization of business, the emergence of civil society organizations in many nations, and new government regulations and international agreements have significantly altered the job of managers and the nature of strategic decision making within the firm At no time has business faced greater public scrutiny or more urgent demands to act in an ethical and socially responsible manner than at the present Consider the following: ∙ The global financial crisis—highlighted by the failure of major business firms and unprecedented intervention in the economy by many governments—and its continuing aftermath as societies have struggled to recover have focused a fresh spotlight on issues of corporate responsibility and ethics Around the world, people and governments are demanding that executives a better job of serving shareholders and the public Once again, policymakers are actively debating the proper scope of government oversight in such wide-ranging arenas as health care, financial services, and manufacturing Management educators are placing renewed emphasis on issues of business leadership and accountability ∙ A host of new technologies have become part of the everyday lives of billions of the world’s people Advances in the basic sciences are stimulating extraordinary changes in agriculture, telecommunications, and pharmaceuticals, which have the potential to enhance peoples’ health and quality of life Technology has changed how we interact with others, bringing people closer together through social networking, instant messaging, and photo and video sharing These innovations hold great promise But they also raise serious ethical issues, such as those associated with genetically modified foods, stem cell research, or use of the Internet to exploit or defraud others, censor free expression, or invade individuals’ privacy Businesses must learn to harness new technologies, while avoiding public controversy and remaining sensitive to the concerns of their many stakeholders ∙ Businesses in the United States and other nations are transforming the employment relationship, abandoning practices that once provided job security and guaranteed pensions in favor of highly flexible but less secure forms of employment The Great Recession caused job losses across broad sectors of the economy in the United States and many other nations Many jobs, including those in the service sector, are being outsourced to the emerging economies of China, India, and other nations As jobs shift abroad, transnational corporations are challenged to address their obligations to workers in far-flung locations with very different cultures and to respond to initiatives, like the Bangladesh Accord on Fire and Building Safety, which call for voluntary commitment to enlightened labor standards and human rights ∙ Ecological and environmental problems have forced businesses and governments to take action An emerging consensus about the risks of climate change, for example, is leading many companies to adopt new practices, and the nations of the world have recently adopted a groundbreaking agreement designed to limit the emissions of greenhouse gases Many businesses have cut air pollution, curbed solid waste, and designed products and buildings to be more energy-efficient A better understanding of how human iv www.freebookslides.com Preface v activities affect natural resources is producing a growing understanding that economic growth must be achieved in balance with environmental protection if development is to be sustainable ∙ Many regions of the world and their nations are developing at an extraordinary rate Yet, the prosperity that accompanies economic growth is not shared equally Access to health care and education remain unevenly distributed among and within the world’s nations, and inequalities of wealth and income have become greater than they have been in many years These trends have challenged businesses to consider the impact of their compensation, recruitment, and professional development practices on the persistent— and in some cases, growing—gap between the haves and the have-nots ∙ The tragic epidemic of Ebola in West Africa, as well as the continuing pandemic of AIDS in sub-Saharan Africa and the threat of a swine or avian flu outbreak have compelled drug makers to rethink their pricing policies and raised troubling questions about the commitment of world trade organizations to patent protection Many businesses must consider the delicate balance between their intellectual property rights and the urgent demands of public health, particularly in the developing world ∙ In many nations, legislators have questioned business’s influence on politics Business has a legitimate role to play in the public policy process, but it has on occasion shaded over into undue influence and even corruption In the United States, recent court decisions have changed the rules of the game governing how corporations and individuals can contribute to and influence political parties and public officials Technology offers candidates and political parties new ways to reach out and inform potential voters Businesses the world over are challenged to determine their legitimate scope of influence and how to voice their interests most effectively in the public policy process The new Fifteenth Edition of Business and Society addresses this complex agenda of issues and their impact on business and its stakeholders It is designed to be the required textbook in an undergraduate or graduate course in Business and Society; Business, Government, and Society; Social Issues in Management; or the Environment of Business It may also be used, in whole or in part, in courses in Business Ethics and Public Affairs Management This new edition of the text is also appropriate for an undergraduate sociology course that focuses on the role of business in society or on contemporary issues in business The core argument of Business and Society is that corporations serve a broad public purpose: to create value for society All companies must make a profit for their owners Indeed, if they did not, they would not long survive However, corporations create many other kinds of value as well They are responsible for professional development for their employees, innovative new products for their customers, and generosity to their communities They must partner with a wide range of individuals and groups in society to advance collaborative goals In our view, corporations have multiple obligations, and all stakeholders’ interests must be taken into account A Tradition of Excellence Since the 1960s, when Professors Keith Davis and Robert Blomstrom wrote the first edition of this book, Business and Society has maintained a position of leadership by discussing central issues of corporate social performance in a form that students and faculty have found engaging and stimulating The leadership of the two founding authors, and later of www.freebookslides.com vi Preface Professors William C Frederick and James E Post, helped Business and Society to achieve a consistently high standard of quality and market acceptance Thanks to these authors’ remarkable eye for the emerging issues that shape the organizational, social, and public policy environments in which students will soon live and work, the book has added value to the business education of many thousands of students Business and Society has continued through several successive author teams to be the market leader in its field The current authors bring a broad background of business and society research, teaching, consulting, and case development to the ongoing evolution of the text The new Fifteenth Edition of Business and Society builds on its legacy of market leadership by reexamining such central issues as the role of business in society, the nature of corporate responsibility and global citizenship, business ethics practices, and the complex roles of government and business in a global community For Instructors For instructors, this textbook offers a complete set of supplements Continually evolving, McGraw-Hill Connect® has been redesigned to provide the only true adaptive learning experience delivered within a simple and easy-to-navigate environment, placing students at the very center ∙ Performance Analytics—Now available for both instructors and students, easy-todecipher data illuminates course performance Students always know how they are doing in class, while instructors can view student and section performance at-a-glance ∙ Personalized Learning—Squeezing the most out of study time, the adaptive engine within Connect creates a highly personalized learning path for each student by identifying areas of weakness and providing learning resources to assist in the moment of need This seamless integration of reading, practice, and assessment ensures that the focus is on the most important content for that individual Instructor Library The Connect Management Instructor Library is a repository for additional resources to improve student engagement in and out of class The instructor can select and use any asset that enhances his or her lecture The Connect Instructor Library includes an extensive instructor’s resource manual—fully revised for this edition—with lecture outlines, discussion case questions and answers, tips from experienced instructors, and extensive case teaching notes A computerized test bank and power point slides for every chapter are also provided Manager’s Hot Seat Now instructors can put students in the hot seat with access to an interactive program Students watch real managers apply their years of experience when confronting unscripted issues As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager At the end of the scenario, students watch a postinterview with the manager and view how their responses matched up to the manager’s decisions The Manager’s Hot Seat videos are now available as assignments in Connect www.freebookslides.com Preface vii Create With McGraw-Hill Create, www.mcgrawhillcreate.com, the instructor can easily rearrange chapters, combine material from other content sources, and quickly upload selfdeveloped content such as a course syllabus or teaching notes Content may be drawn from any of the thousands of leading McGraw-Hill textbooks and arranged to fit a particular class or teaching approach Create even allows an instructor to personalize the book’s appearance by selecting the cover and adding the instructor’s name, school, and course information and to select a print or eBook format For Students Business and Society has long been popular with students because of its lively writing, up-to-date examples, and clear explanations of theory This textbook has benefited greatly from feedback over the years from thousands of students who have used the material in the authors’ own classrooms Its strengths are in many ways a testimony to the students who have used earlier generations of Business and Society The new Fifteenth Edition of the text is designed to be as student-friendly as always Each chapter opens with a list of key learning objectives to help focus student reading and study Numerous figures, exhibits, and real-world business examples (set as blocks of colored type) illustrate and elaborate the main points A glossary at the end of the book provides definitions for bold-faced and other important terms Internet references and a full section-by-section bibliography guide students who wish to further research on topics of their choice, and subject and name indexes help students locate items in the book LearnSmart® The Fifteenth Edition of Business and Society is available with LearnSmart, the most widely used adaptive learning resource, which is proven to improve grades (To find out more about LearnSmart, go to McGraw-Hill Connect® connect.mheducation.com.) By helping students focus on the most important information they need to learn, LearnSmart personalizes the learning experience so they can study as efficiently as possible SmartBook® An extension of LearnSmart, SmartBook is an adaptive eBook that helps students focus their study time more effectively As students read, SmartBook assesses comprehension and dynamically highlights where they need to study more New for the Fifteenth Edition Over the years, the issues addressed by Business and Society have changed as the environment of business itself has been transformed This Fifteenth Edition is no exception, as readers will discover Some issues have become less compelling and others have taken their place on the business agenda, while others endure through the years The Fifteenth Edition has been thoroughly revised and updated to reflect the latest theoretical work in the field and the latest statistical data, as well as recent events Among the new additions are: ∙ An all-new chapter for this edition on business and its suppliers, incorporating the latest thinking about social, ethical, and environmental responsibility in global supply chains www.freebookslides.com viii Preface ∙ New discussion of theoretical advances in stakeholder theory, corporate citizenship, public affairs management, public and private regulation, corporate governance, social and environmental auditing, social investing, reputation management, business partnerships, and corporate philanthropy ∙ Treatment of practical issues, such as social networking, digital medical records, bottom of the pyramid, gender diversity, political advertising and campaign contributions, as well as the latest developments in the regulatory environment in which businesses operate, including the Dodd-Frank Act and the Affordable Care Act ∙ New discussion cases and full-length cases on such timely topics as worker safety in the garment industry in Bangladesh; the ignition switch recalls by General Motors; Google and the “right to be forgotten”; Uber’s responsibilities toward its drivers, customers, and communities; the decision to raise wages at Gravity Payments; the regulation of e-cigarettes; security breaches that compromised customers’ information at Target and other companies; the hacking of Sony Pictures’ servers; the environmental impact of hydraulic fracturing; shareholder proxy access at Whole Foods; the sale of chemically tainted flooring by Lumber Liquidators; substandard wages and working conditions at nail salons; and JPMorgan Chase’s reputational challenges Finally, this is a book with a vision It is not simply a compendium of information and ideas The new edition of Business and Society articulates the view that in a global community, where traditional buffers no longer protect business from external change, managers can create strategies that integrate stakeholder interests, respect personal values, support community development, and are implemented fairly Most important, businesses can achieve these goals while also being economically successful Indeed, this may be the only way to achieve economic success over the long term Anne T Lawrence James Weber www.freebookslides.com Acknowledgments We are grateful for the assistance of many colleagues at universities in the United States and abroad who over the years have helped shape this book with their excellent suggestions and ideas We also note the feedback from students in our classes and at other colleges and universities that has helped make this book as user-friendly as possible We especially wish to thank three esteemed colleagues who made special contributions to this edition Cynthia E Clark, founder and director of the Harold S Geneen Institute of Corporate Governance and director of the Alliance for Ethics and Social Responsibility at Bentley University, generously shared with us her expertise on corporate reputation, governance, and media relations She provided new material for and helped reorganize Chapter 19, which has greatly benefited from her insights She also advised us on the revisions of Chapter and contributed the case, “Google and the Right to Be Forgotten.” Anke Arnaud of Embry-Riddle Aeronautical University provided research support for the two environmental chapters (Chapters and 10), drawing on her extensive knowledge of the sustainability literature An expert in pedagogy, she also prepared the PowerPoint slides that accompany the text Harry J Van Buren III of the University of New Mexico shared his expertise on technology and society and provided in-depth suggestions on how best to reorganize the two technology chapters (Chapters 11 and 12), which have been extensively revised for this edition For all of these contributions, we are most grateful We also wish to express our appreciation for the colleagues who provided detailed reviews for this edition These reviewers were Heather Elms of the Kogod School of Business at American University; Joseph A Petrick of Wright State University; Kathleen Rehbein of Marquette University; Judith Schrempf-Stirling of the Robins School of Business at the University of Richmond; and Caterina Tantalo of San Francisco State University In addition, we are grateful to the many colleagues who over the years have generously shared with us their insights into the theory and pedagogy of business and society In particular, we would like to thank Shawn Berman of University of New Mexico; Jennifer J Griffin of George Washington University; Ronald M Roman, Asbjorn Osland, and MarcCharles Ingerson of San José State University; Bernie Hayen of Kansas State University; Cynthia M Orms of Georgia College & State University; Alexia Priest of Post University; Sandra Waddock of Boston College; Mary C Gentile of Giving Voice to Values; Margaret J Naumes of the University of New Hampshire (retired); Michael E Johnson-Cramer and Jamie Hendry of Bucknell University; John Mahon and Stephanie Welcomer of the University of Maine; Bradley Agle of Brigham Young University; Ann Svendsen of Simon Fraser University (retired); Robert Boutilier of Robert Boutilier & Associates; Kathryn S Rogers of Pitzer College (retired); Anne Forrestel of the University of Oregon; Kelly Strong of Colorado State University; Daniel Gilbert of Gettysburg College; William Sodeman of Hawaii Pacific University; Gina Vega of Merrimack College; Craig Dunn and Brian Burton of Western Washington University; Lori V Ryan of San Diego State University; Bryan W Husted of York University; Sharon Livesey of Fordham University; Barry Mitnick of the University of Pittsburgh; Virginia Gerde, Matthew Drake, and David Wasieleski of Duquesne University; Robbin Derry of the University of Lethbridge; Linda Ginzel of the University of Chicago; Jerry Calton of the University of Hawaii–Hilo; Anthony J Daboub of the University of Texas at Brownsville; Linda Klebe Treviño of Pennsylvania State University; Mary ix www.freebookslides.com 560 Subject Index Council on Foreign Relations, (www) 42 Crisis management, 425–428, (exh.) 426, (exh.) 428 Crowd-sourced audit, 386 Cruise Line Industry Association, 472, 476 CSR News, (www) 67 CSRwire, (www) 67, 431–432 CSX, 193–194 Cybercrime, 265–269, (fig.) 267, 272–273 Cybersecurity Association, (www) 274 Cyberspace, 234 D Dark money, 168 Dark site, 427 Debt relief, 75 Deceptive advertising, 308–309 Defense Industry Initiative on Business Ethics and Conduct, (www) 130 Democratic Republic of the Congo (DRC), 88–90 DePuy Orthopaedics, 101 Deregulation, 151 Diageo, 159 Digital Divide Network, (www) 252 Digital divide, the, 239–240 Digital Millennium Copyright Act, 263, 453, 453n Dish Network, 339 Distracted driving, 138–140 District 89, 400 Diversity (See Workplace diversity) 348, (exh.) 353 Diversity council, 363 Diversity, Inc., (www) 368 Dodd-Frank Act, 144, (exh.) 145 Drug testing, 339, (fig.) 340 DuPont, (exh.) 37 E E-business, 247, (fig.) 247 E-cigarettes, 154–156 E coli, 26 Ecological challenges (See Natural environment) Ecological footprint, 189 Ecologically Sustainable Organization (ESO), 219 E-commerce Times, (www) 252 Economic leverage, 170 Economic Policy Institute, 335n Economic regulations, 170 Economist Intelligence Unit, 220n Economist, The, (www) 22 Economy Watch, (www) 154 Ecosystem, 185 ECPAI International, 483n, 484 Elder care, 364 Electronic Frontier Foundation, (www) 252 Electronic Industry Citizenship Coalition (EICC), (exh.) 384 Electronic medical records, (exh.) 265 Electronic monitoring, 337 Electronic Privacy Information Center, 314n Employee assistance programs (EAPs), 340 Employees: as corporate stakeholders, 343 employment relationship, 327 privacy in the workplace, 336–341 rights and duties, (fig.) 327, 327–334 wages and income equality, 335–336, (fig.) 335 whistleblowing and free speech, 341–343 Employment-at-will, 332 Energy Management Inc., Environmental analysis, 27–29, (fig.) 28 Environmental auditing and reporting, 221–222 Environmental Defense Fund, 206, 206n Environmental intelligence, 27 Environmental justice, 212 Environmental partnerships, 222 Environmental Protection Agency (EPA), 207, 211n, 216n, (www) 227, 494 Environmental standards, 212–213, (fig.) 215 Equal employment opportunity, 357–361, (fig.) 358 Equal Employment Opportunity Commission (EEOC), 358, 361n, (www) 368 Equator Principles, 201, 201n Ergonomics, 330 Ethical character, core elements of, 102–106 Ethical climates, 115–116, (fig.) 115 Ethical egoist, 99 Ethical principles, 93 Ethical problems, analyzing, 106–110 Ethical problems occur in business, why, 99–102, (fig.) 99 Ethical relativism, 94 Ethical Trading Initiative, (www) 344 Ethics: awards and certifications, 126, (fig.) 126 in accounting, 116, (exh.) 117 in finance, 116–117, (exh.) 117 in a global economy, 127–130, (exh.) 129 in information technology, 120, (exh.) 119 in marketing, 118–120, (exh.) 119 meaning of, 93–99, (fig.) 95, (fig.) 95, (exh.) 99 officers, (fig.) 121, 122–123, (exh.) 124 policies or codes, (fig.) 121, 122, (exh.) 123 reporting mechanisms, (fig.) 121, 123–125 safeguards, (fig.) 121, 121–125 training programs, (fig.) 121, 125 why should businesses be, 95, (fig.) 95, Ethics and Compliance Officers Association, (www) 130 Ethics and Policy Integration Centre, (www) 130 Ethics.data.gov, (www) 178 Ethics Resource Center, (fig.) 95n, (www) 111, (fig.) 121n, (www) 130 Ethisphere Institute, 95, (fig.) 96n, (fig.) 126, (www) 130 European Academy of Business in Society, 36n www.freebookslides.com Subject Index 561 European Agency for Fundamental Rights, 360n European Commission, 145, 456n, 458n European Consumer Organization, (www) 322 European Corporate Governance Institute, 286n, (www) 299 European Parliament, 451n, 458n European Union, 152, 206, 360, 455–456 Executive compensation, 287–291, (fig.) 288, (fig.) 289 Export-Import Bank, 136 Extended product responsibility, 198–199 F Facebook, 120, 326 Fair Factories Clearinghouse (FFC), 386–387 Fair Food International, 390n Fair Labor Association, 378n, 386–387, 393 Families and Work Institute, 364n, 366n, (www) 368 Family Dollar, Family-friendly corporation, 366 Family leave, 365 Federal Communications Commission (FCC), 257 (www) 435, 528, 528n Federal Elections Commission, 170, (www) 178 Federal Reserve System, Board of Governors, (www) 154 Federal Trade Commission, 53, 118, (www) 154, 314n, (www) 322, (www) 435, 528 Ferro Magnetics, 330 Fidelity Investments, 414–416 Financial Times (London), (www) 22 Fiscal policy, 140–141 Fiscal Policy Institute, 357n Food and Drug Administration (FDA), 135, 155–156, 311, 443 Food Chain Workers’ Alliance, 370n Ford, 433 Foreign direct investment, 73 Foresight Institute, (www) 274 Fortune, (www) 22 Forum for Sustainable and Responsible Investment, (www) 299 FosterHyland, (exh.) 428n Foundation Center, (www) 414 Foundation for Public Affairs, (exh.) 175n, 175n, 422n Foxconn, 392–393 Fracking, 228–229 Free enterprise systems, 81–82 Free speech issues, 251 G Ganges River, 195 Gap, 372, 385, 385n, 388 General Electric (GE), 212, 218, (exh.) 319 General Motors, 164–165, 372, 461–470 General public (See Public), 419 General systems theory, 4–5 Genetically modified foods (GM foods), 242–244, (fig.) 244 Genome Projects (U.S Department of Energy), (www) 252 Gerber Products, 118 Giving Institute, (www) 414 Giving USA Foundation, (fig.) 403n, (www) 414 Glass ceiling, 355 Glass walls, 356 Global action networks (GAN), 85 Global cruise industry, 472 environmental impacts, 473–475, (exh.) 474 regulation of, 475–479, (exh.) 478 Global Electoral Organization Conference, 176–177 Global Footprint Network, 190n Global Issues, (www) 42 Globalization: benefits and costs of, 76–79, (fig.) 79 collaborative partnerships, 85–87, (fig.) 86 comparative political and economic systems, 80–82, (exh.) 82 global inequality and the bottom of the pyramid, 83–85, (fig.) 83 international institutions, 73–76, (exh.) 74, (exh.) 75 major transnational corporations, 72–73, (fig.) 73 Global Policy Forum, (www) 88 Global Reporting Initiative, (fig.) 64, (www) 67 Global Retail Theft Barometer, 341, 341n Global Sustainable Investment Alliance, 293n Global warming, 142, 191–192, (fig.) 192 Goldman Sachs, (exh.) 404, 404n Google, 171, 176, 258, 451–460 Government Made Easy, (www) 154 Government regulation: of business, 142–143 continuous reform, 151–152 effects, 147–152, (fig.) 149, (fig.) 150 ethical arguments, 143 global context, 152–153 types of, 143–147, (exh.) 145, (exh.) 147, (fig.) 148 Governor’s Highway Safety Association, 140n Gravity Payments, 67–69 Green Business Network, (www) 227 Green Mountain Coffee Roasters, 407, 431 Grey hatters, 269 Guardian Sustainable Business Supply Chain, The, (www) 391 Guardian, The, (www) 227 H Hackers, 265–266, (fig.) 267 Hackers List, 267–268 Hacktivists, 266 H & M, 376 Harris Poll, (fig.) 421n Hedge funds, 292 Heritage Foundation, 82 Hershey, 423 Hill Country Memorial, 319 Hobby Lobby, 173 www.freebookslides.com 562 Subject Index Holland America Line (HAL), 471–479 Home Depot, 253 Honesty tests, 341 HP, (exh.) 199 Human genome, 244–245 Human rights (See Rights reasoning) Human Rights Campaign Foundation, (exh.) 367n Human Rights Watch, 446n Human trafficking, 377–378 Hydraulic fracking (See Fracking) I IBM, 224–225, 235–236, 412 Ignition switch recalls, 461–470 iFoodDecisionSciences, 26 Image advertisements, 433–434, (fig.) 434 Inclusion, 361 India, 263n Industrial ecology, 198 Information phase of technology, 234 Information Systems Security Association, (www) 274 Information technology: business access to and use of, 263–265, (exh.) 265 business responses to invasions, 269–272, (fig.) 272 challenges for governments and businesses, 258 cybercrime, 265–269, (fig.) 267 government efforts against cybercrime, 272–273 government interventions, 259–263, (exh.) 260, (exh.) 261, (fig.) 262 ING, 395 In-kind contributions, 405 Insider trading, 296–298 Institute for a Drug-Free Workplace, (www) 344 Institute for Crisis Management, 425n, (www) 435 Institute for Global Ethics, (www) 130 Institute for Supply Management (ISM), 120n, (www) 391 Institute of Business Ethics, (www) 111 Institute of Medicine, (exh.) 316n Institutional investors, 281–282, 292–293 Insurance Institute for Highway Safety, 138n Integrated supplier scorecards, 389 Intel, 88–90, 405, 405n, 410–411, 411n Intellectual property, 262 Interactive social system, Interface, 62, 219, 219n Interfaith Center on Corporate Responsibility (ICCR), 484n Intergovernmental Panel on Climate Change, (www) 202 International Business Ethics Institute, (www) 111, (www) 130 International Crisis Management Association, (www) 435 International financial and trade institutions (IFTIs), 73 International Forum on Globalization, (www) 88 International Labor Rights Forum, 440n, 444n International Labour Organization (ILO), 377n International Maritime Organization, 379n International Monetary Fund (IMF), 74, (www) 87 International Service for the Acquisition of Agri-biotech Applications (ISAAA), 243n, (fig.) 244n International Society for Stem Cell Research, (www) 252 Internet, 236–238, (fig.) 237 Internet censorship, 259–261, (exh.) 260 Internet Society, (www) 252 Intrepid Travel, 224, 224n Iran, 153, 260 Iron law of responsibility, 48 ISS (formerly Institutional Shareholder Services), (www) 299 Issue Management Council, (www) 42 Issue management process, 31–35, (fig.) 32 organizing for effective, 35–36, (exh.) 37 J Japan, 333 Japan Airlines, 253 Japanese Rice Retailers Association, 496–497 Johnson & Johnson, 54, 320–343 Josephson Institute, (www) 111 JPMorgan Chase, 118, 436–437, 437n Justice reasoning, (fig.) 106, 109 K Kalundborg (Denmark), 198 Kerr-McGee, 214 Kids Eat Right, 419 Korn Ferry Institute, 286n KPMG, (fig.) 65, 65, 65n, 362 L Labor unions, 328–329, (fig.) 328 Laws, 94 Levi Strauss, 206 LGBT equality, (exh.) 367 LIBOR (London interbank offered rate), 118 License to operate, 398 Life-cycle analysis, 198 Living wage, 336 L.L Bean, 420 Lobbying, 161–163, (fig.) 162 Local Governments for Sustainability, (www) 202 Local sourcing, 379 Locust Street Group, 172 Lumber Liquidators, 322–324, 324n M Madagascar, 390 Malcolm Baldridge National Quality Award, 319 Malden Mills, 56 Marine ecosystems, 197 Market-based mechanisms, 213–214, (fig.) 215 Market failure, 142 www.freebookslides.com Subject Index 563 Marketplace Ministries, 103 Marks & Spencer, 199–200, 200n Marriott, 348, 484 Masdar City, (exh.) 186 Massey Energy, 513–522 Material sustainability issues, 226 Mattel Toy Company, 373–374 McCutcheon vs Federal Election Commission, 168–169 McDonald’s, 32–35, (exh.) 124, 431 McKinsey & Company, 220n, 269–270, 270n, 448n McKinsey Global, 218n, 505n M-commerce, 240, (exh.) 241 Media training, 429 Medtronics, 124, 124n Mercatus Center, (www) 154 Meta Group, (fig.) 272, 272n Microfinance, 84 Microsoft, 145 Military dictatorships, 81 Millennials, 406 Millennium Project, The, (www) 42 Mine Safety and Health Administration, 517–518, (exh.) 520n, 520 Minha Casa, Minha Vida, 141 Minnesota Forward, 167 Mobile telephones (See Cellphones) Monetary policy, 144 Monsanto, 243 Moody’s Corporation, 500–512 Moral development, stages of, 104–106, (fig.) 104 Mylan, 120 N Nail salon and care, 344–346 NASCAR, 433 National Cancer Institute, 324n National Center for Policy Analysis, (www) 154, (www) 178 National Federation of Independent Businesses, (www) 178 National Highway Traffic Safety Administration (NHTSA), 138, 143, 465–470 National Issues Forum, (www) 42 National Public Radio, 506n, 507n National Retail Federation, 341n National Whistleblowers Center, (www) 344 National Workrights Institute, (www) 344 Natural capital, 184 Natural environment, business and society and the, 184–185, (fig.) 184 Earth’s carrying capacity, 189–191 forces of change, 186–189, (fig.) 187, (fig.) 188 global issues, 191–198, (exh.) 192 international community response, 198–201, (exh.) 199 sustainable development, 185, (exh.) 186 threats to the Earth’s ecosystem, 185–186 Natural monopolies, 143 Negative externalities, 142–143 Nepal, 401 Nestlé, 52, 52n, 378 Networking Academy, 408n Neuromarketing, 303 Newmont Mining, 71 New York Stock Exchange, (www) 299 New York Times, The, (www) 22 NextGen Climate Action, 167 Nike Corporation, 40–41, 386n, 389n Nongovernmental organizations (NGOs), 85 North Korea, 260, 274–276 Novartis, 363 Novozymes, 221–222, 222n Nuclear Information and Resource Service, 212n O Occupational Safety and Health Administration (OSHA), 330, (www) 344 Occupational segregation, 351–352 Opensecrets.org, (www) 178 Open Security Foundation, (www) 274 Outbrain, 432 Ownership theory of the firm, Ozone, 194 P PacificCorp, 40 PageRank, 453n Paid content, 431 Pakistan, 259 P & G, 423–424, 424n Panek Precision, 249 Parental leave, 365 Patagonia, 372 Pay gap, 351, (fig.) 352 PayPal, 270–271 Pepsi-Cola, 194 Performance-expectations gap, 25, (fig.) 26 Pew Charitable Trusts, 197n Pew Initiative on Food and Biotechnology, 493n, 494n Pew Research Center, 351n, 370n Pfizer, 405n Phishing, 238 Pink slime, 418 Pittsburgh Penguins, 170 Plant-made medicines, 491–492 Points of Light Foundation, (www) 414 Political action committees (PACs), 165–170, (fig.) 166, (exh.) 169 Political environment: arguments for and against business involvement, (fig.) 159 participants in the, 158–160 PoliticsOnline, (www) 178 PPG Industries, 100 Predatory pricing, 144 PricewaterhouseCoopers, 103 PRISM, (exh.) 261 Privacy in the workplace: alcohol abuse, 340 drug use and testing, 339–340, (fig.) 340 electronic monitoring, 337–338 privacy rights, 336 romance, 338 theft and honesty testing, 341 Privacy, loss of, 250, 252–255 Privacy Rights Clearinghouse, 314n, 338n Private equity firms, 292 Private regulation, 381 Product liability, 315–318, (exh.) 316 Product recall, 320–321 www.freebookslides.com 564 Subject Index Professional Crisis Management Association, (www) 435 Professional sport franchises, (exh.) 397 Protect Intellectual Property Act, 178 Proxy, 282–283 Proxy access, 285 Public: brand management, 424–425, (exh.) 425 corporate reputation, 419–422, (fig.) 421 crisis management, 425–428, (exh.) 426, (exh.) 428 engaging key stakeholders, 428–434, (fig.) 428, (fig.) 434 general, 419 relations department, 422–424 Public Affairs Council, (www) 178 Public affairs department, 174–175, (exh.) 175 Public Disclosure Commission, (www) 178 Public issue, 25–27 issue ripeness, (exh.) 27 Public policy: elements of, 138–140 role of government, 137–138 types of, 140–142 Public Relations Society of America (PRSA), (www) 435 Public service announcements (PSAs), 433 Publix, 35, 35n Puma, 221n Q Quality management, 318–319 R Race to the bottom, 78 Racial harassment, 361 Rana Plaza, 377, 440–450 Raytheon, 125 RB, 46, 46n Red Bull, 194 Red Robin, 39 Regulation, 142 Regulations.gov, (www) 154 Regulatory impact analysis, 216 REI, 420 Religious freedom law, 158 Reputation, 55 Reputation Institute, 420n, 421n, (www) 435 Reregulation, 151–152 Resource Conservation and Recovery Act, 211 Responsible Sourcing Network, (www) 391 Restaurant Opportunities Centers United, 370n Return on social investment, 410, (fig.) 411 Review of Marine Transport, 379n Revolving door, 163, (exh.) 164 Right to be forgotten, 262, 451–460 Right to try, (exh.) 108 Rights reasoning, (fig.) 106, 108–109 Robotics at work, 248–249 Robotics Industries Association, (www) 274 Rocky Mountain Institute, (exh.) 223n Root cause analysis, 389 Roundtable on Sustainable Palm Oil, 379n S Safe and healthy workplace, 329–331, (exh.) 331 SAI Global, (www) 130 Salesforce.com, 395 Sanofi Espoir Foundation, 403n Sarbanes-Oxley Act, (exh.) 97, 97–98, (www) 111 Say-on-pay, 291 Schneider Electric, 200 S.C Johnson, 84, 364n Securities and Exchange Commission (SEC), 116, 295, (www) 299, 342n Semantic phase of technology, 234 Sex trafficking, 483–484 Sexual harassment, 360–361 Shareholder lawsuits, 295–296 Shareholders: activism, 291–295 and corporate governance, 283–287 and the corporation, 298 defined, 279–282, (fig.) 280, (fig.) 281 government protection of, 295–298 legal rights and safeguards, 282–283, (fig.) 283 objectives of ownership, 282 ShaveLogic, 30, 30n Shell Oil, 171 Shire, 308 Silicon Valley Community Foundation, 406n Sketchy Pixel, (exh.) 443n, (exh.) 444n Social assistance policies, 141–142 Social audit, 63–64, (exh.) 64 Social capital, 398 Social contract, 332 Social investment, 293 Social Media Today, (www) 252 Social networking, 241–242 Social regulations, 146–147, (exh.) 147 Social reporting, 64–66, (fig.) 65 Social responsibility shareholder resolutions, 293–294 Society of Corporate Compliance and Ethics, (www) 130 Sodexo, 55, 55n Soft money, 167 Software piracy, 262–263, (fig.) 262 Sonoco, 30–31, 31n Sony Pictures, 274–276 Spam (unsolicited commercial e-mail), 238 Spanish Data Protection Agency, 456–458 Spirituality in the workplace, 103–104 Stakeholder: analysis, 10–17 coalitions, 14–15 concept of, 7–8 dialogue, 40–42 engagement, 36–39, (fig.) 38 interests, 12, (exh.) 16–17 internal and external, 9–10 are managers, (exh.) market and nonmarket, 8–10, (fig.) materiality, 30–31, (fig.) 31 power, 12–14, (exh.) 16–17 www.freebookslides.com Subject Index 565 salience and mapping, 15–17, (fig.) 15 theory of the firm, 5–7 StandWithUs, 176 Stanford University Value Chain Innovation Initiative, (www) 391 Starboard Value, 12, 292 Starbucks, 37n, 46, 46n, 222, 326, 388n Star Model, (fig.) 434 Statistic Brain Research Institute, (www) 252 Stemcell research, 245–246, (fig.) 246 Stock options, 288 Stop Online Piracy Act, 178–179 Strategic and Competitive Intelligence Professionals, (www) 42 Strategic philanthropy, 408 Strategic radar screens, (fig.) 29, 29–30 Strict liability, 315–316 Subaru, 223, 223n Subprime mortgage meltdown, 500–512 Superfund, 212 Super PACs, 166–167 SuperValu, 39 Suppliers, 373–375, (fig.) 375 development and capability building, 387–390, (fig.) 390 global supply chain issues, 376–381, (fig.) 380, (fig.) 381 private regulation of, 381–384, (fig.) 383, (exh.) 384, (fig.) 385 supply chain auditing, 384–387 Supply chain, 373 Supply chain audit, 385 Supply chain codes of conduct, 382 Supply chain map, 375, (fig.) 375 Supply chain transparency, (exh.) 381 Supply Chain World (SCW), (fig.) 380n, 384n, (fig.) 385n, (www) 391 SustainAbility, (www) 227 Sustainability Consortium, 198n Sustainability, managing for: competitive advantage, 222–226, (exh.) 223, (fig.) 226 costs and benefits if environmental regulation, 216–217, (fig.) 217 ecologically sustainable organization, 219–222 role of government, 207–216, (fig.) 208, (exh.) 210, (fig.) 215 stages of corporate environmental responsibility, 218 Sustainability report, 221 Sustainable development, 185, (exh.) 186 Sweatshops, 376 Sweden, 211 Symantec, (fig.) 31 Symrise, 390 Syngenta, 195–196 T Takata, 114, 303 Target, 167, 253, 326 Teach.org, 433 Teamsters, 329 Technology: business role in, 246–249, (fig.) 247 defined, 233–234 digital divide, the, 239–242, (exh.) 241 ethical challenges, 250–251 fueling technological growth, 235–236 phases of, 234–235, (fig.) 235 role in society, 236–238, (fig.) 237 scientific breakthroughs, impact of, 242–246, (fig.) 244, (fig.) 246 Technology cooperation, 200 Technorati, 526n Tier-1 suppliers, 373 Tier-2 suppliers, 373 Tissue engineering, 245 Top Dog Daycare, 247–248, 248n Tourism and the commercial sexual exploitation of children, 482 Towers Watson, 333n, 349n Toxic Substances Control Act, 211 Toyota, 225n Trade associations, 172–173 TransCanada, 14 Transnational corporations, 72, (fig.) 73 Transparency International, 127, 127n, 128, (www) 130, 443n Triple bottom line, 221 Turkey, (exh.) 260 Twitter, 253 U Uber, 22, 135, (exh.) 334, 429 Undocumented (unauthorized) immigrant workers, 349, 368–370 Unilever, 390 United Kingdom, 404 United Kingdom Bribery Act, 129, 129n United Kingdom Equality and Human Rights Commission, 352n United Mine Workers, 519n United Nations and Civil Society, (www) 88 United Nations Development Programme, 80n, 442n United Nations Environmental Program, (www) 202 United Nations Framework Convention on Climate Change, (www) 202 United Nations Global Compact, (www) 67 United Nations Global Issues, (www) 42 United Nations International Law, (www) 154 United Nations Office on Drugs and Crime, 378n United States Steel Corporation, (exh.) 123 Unsolicited commercial e-mail (See Spam) Upper Big Branch Mine, 513–522 UPS, 220 U.S Bureau of Labor Statistics, 329n, 330n, 346n, 349n, 352n, 364n U.S Census Bureau, 216n, 282n, 357n U.S Chamber of Commerce, 172, 172n U.S Corporate Sentencing Guidelines, 96–97 U.S Department of Agriculture, 494 U.S Department of Justice, 315n, 343n www.freebookslides.com 566 Subject Index U.S Department of Labor, 406n U.S Department of State, 446n, 483n User-generated content, 430 U.S Federal Election Commission (See Federal Election Commission) U.S Federal Trade Commission (See Federal Trade Commission) U.S Foreign Corrupt Practices Act (FCPA), 128–129 U.S Green Building Council, (exh.) 223, 223n U.S House of Representatives Lobbying Disclosure, (www) 178 U.S Office of Government Ethics, (www) 111 U.S Office of Information and Regulatory Affairs, (www) 154 U.S Sentencing Commission, (www) 111 U.S Small Business Administration, 357n, (www) 368 U.S Substance Abuse and Mental Health Services Administration, 340n U.S Surgeon General, (exh.) 316n Utilitarian reasoning, (fig.) 106, 107–108 V Values, manager’s, 102–103 Ventria Bioscience, 489–499 Verizon, 264 Virtue ethics, 106–107, (fig.) 106, (fig.) 107 Volunteerism, 406, (exh.) 407 W Wall Street Journal, The, (www) 22 Walmart, 3–4, 128, 358, 379n, 398, 398n WaMu, 507 Wells Fargo, 118 Wendy’s, (exh.) 426 Western Growers Association, 320 Whistle-blowing, 342 White hatters, 269 Whole Foods Market, 299–301, 395 Worker Rights Consortium, 376n, 448n Workforce, the changing face of the, 348–580 gender and race at work, 350–351, (fig.) 351 gender and racial pay gap, 351–353, (fig.) 352 glass ceiling, breaking the, 354–356, (fig.) 356 women and minority business ownership, 357 women and persons of color, 353–354, (exh.) 353, (fig.) 354 Working Mother magazine, (www) 368 Workplace diversity, 348, 361–364 Workplace violence, (exh.) 331 World Bank, 73, (www) 87, 398n, 442n World Business Council for Sustainable Development (WBCSD), 200, (www) 202 World Economic Forum, (www) 391 World Future Society, (www) 42 World Health Organization, 155 World News, Public Issues, (www) 42 World Resources Institute, (www) 202 World Summit on Sustainable Development, 183 World Trade Organization (WTO), 75, (exh.) 78, (www) 87 Worldwatch Institute, (www) 202 Wyeth vs Levine, 317 Y Yahoo!, 418 Yelp, 13, 418 www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com ... Cataloging-in-Publication Data Names: Lawrence, Anne T., author | Weber, James (Business ethics professor), author Title: Business and society : stakeholders, ethics, public policy / Anne T Lawrence, ...www.freebookslides.com Business and Society Stakeholders, Ethics, Public Policy Fifteenth Edition Anne T Lawrence San José State University James Weber Duquesne University www.freebookslides.com BUSINESS AND SOCIETY: ... the Corporation 394 Business in a Globalized World 70 19 The Public and Corporate Reputation 417 PART TWO CASES IN BUSINESS AND SOCIETY? ?? 439 Business and Ethics 91 Ethics and Ethical Reasoning