Business and Society Stakeholders, Ethics, Public Policy Sixteenth Edition Anne T Lawrence San José State University James Weber Duquesne University BUSINESS AND SOCIETY: STAKEHOLDERS, ETHICS, PUBLIC POLICY, SIXTEENTH EDITION Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2020 by McGraw-Hill Education All rights reserved Printed in the United States of America Previous editions © 2017, 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 LWI 21 20 19 ISBN 978-1-260-04366-2 (bound edition) MHID 1-260-04366-5 (bound edition) ISBN 978-1-260-14049-1 (loose-leaf edition) MHID 1-260-14049-0 (loose-leaf edition) Portfolio Manager: Laura Hurst Spell Marketing Manager: Lisa Granger Content Project Managers: Jeni McAtee, Katie Reuter Buyer: Susan K Culbertson Design: Jessica Cuevas Content Licensing Specialist: Traci Vaske Cover Image: ©View Apart/Shutterstock Compositor: SPi Global 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: Sixteenth edition | New York, NY : McGraw-Hill Education, [2020] Identifiers: LCCN 2018052591 | ISBN 9781260043662 (alk paper) | ISBN 1260043665 (bound edition) | ISBN 9781260140491 (loose-leaf edition) | ISBN 1260140490 (loose-leaf edition) Subjects: LCSH: Social responsibility of business Classification: LCC HD60 F72 2020 | DDC 658.4/08—dc23 LC record available at https://lccn.loc gov/2018052591 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 mheducation.com/highered About the Authors Anne T Lawrence San José State University Anne T Lawrence is professor of management emerita 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 She served as president of both the North American Case Research Association (NACRA) and of 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 She currently serves as chair of the board of the Case Research Foundation James Weber Duquesne University James Weber is a professor of management and business ethics at Duquesne University, where he also serves as the managing director of the Institute for Ethics in Business 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 personal, managerial, and organizational values and cognitive moral reasoning His work has appeared in Organization Science, Human Relations, Business & Society, Journal of Business Ethics, 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 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 International Association of Business and Society (IABS) iii 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 rapidly changing 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 rise of populist and nationalist political leaders in the United States and parts of Europe and the Middle East have led to renewed debates on the proper role of government in regulating business and protecting stakeholders As environmental, financial, employment, and consumer regulations have been rolled back, particularly in the United States, businesses have had to choose whether to take advantage of loosened rules or to follow a strategy of voluntary corporate responsibility Long-standing trade relationships have been upended by tariffs and other barriers on imports, helping some businesses and hurting others Changing immigration policy has required firms to rethink their policies toward their foreign-born workers, including so-called Dreamers brought to the United States illegally as children In this rapidly changing environment, business firms have been challenged to manage in a way that remains consistent with their values ∙ 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, transportation, and pharmaceuticals, which have the potential to enhance peoples’ health and quality of life Artificial intelligence can be used to drive vehicles, diagnose illnesses, and manage investments 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 the use of the Internet to exploit or defraud others, censor free expression, or invade individuals’ privacy Businesses must learn to harness powerful technologies for good, while acting responsibly and ethically toward 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 rise of the “gig” economy has transformed many workers into self-employed contractors 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, multinational corporations are challenged to address their obligations to workers in far-flung locations with very different cultures and to respond to initiatives, like the Responsible Business Alliance Code of Conduct, which call for voluntary commitment to enlightened labor standards and human rights The #MeToo movement has focused a spotlight on sexual harassment and abusive behavior in the workplace, and led to the fall of well-known executives and media personalities and calls for change in workplace culture ∙ Severe weather events—hurricanes, floods, and wildfires—have urgently focused attention on the human impact on natural systems, prompting both businesses and iv Preface v governments to act An emerging consensus about the causes and risks of climate change is leading many companies to adopt new practices, and once again the nations of the world have experimented with public policies designed to limit the emissions of greenhouse gases, most notably in the Paris Agreement Many businesses have cut air pollution, curbed solid waste, and designed products and buildings to be more energy-efficient, saving money in the process A better understanding of how human 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 its nations are developing at an extraordinary rate Yet, the prosperity that accompanies economic growth is not shared equally Access to health care, adequate nutrition, 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 Big corporate tax cuts in the United States have required companies to decide whether to distribute their windfalls to their executives, shareholders, employees, or customers; to invest in new jobs; or to buy back stock ∙ The opioid epidemic has focused attention on the role of drug companies, distributors, and pharmacies—as well as government regulators—in contributing to the scourge of addiction, disability, and death caused by narcotics The continuing pandemic of AIDS in sub-Saharan Africa and the threat of a swine or avian flu, the Zika virus, or another Ebola outbreak have compelled drug makers to rethink both their pricing policies and their research priorities 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 Technology offers candidates and political parties new ways to reach out and inform potential voters, but it has also created new opportunities for manipulation of the electoral process through deceptive messaging 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 Sixteenth 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 considered vi Preface 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 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 Sixteenth 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 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 their 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 Preface vii Create With McGraw-Hill Create, create.mheducation.com, the instructor can easily rearrange 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The Connect Calendar and Reports tools keep you on track with the work you need to get done and your assignment scores Life gets busy; Connect tools help you keep learning through it all 13 14 Chapter 12 Quiz Chapter 11 Quiz Chapter 13 Evidence of Evolution Chapter 11 DNA Technology Chapter Quiz Chapter DNA Structure and Gene and more Learning for everyone McGraw-Hill works directly with Accessibility Services Departments and faculty to meet the learning needs of all students Please contact your Accessibility Services office and ask them to email accessibility@mheducation.com, or visit www.mheducation.com/about/accessibility.html for more information 552 Subject Index Edelman Trust Barometer Global Report, (fig.) 431n Elder care, 367–368 Electronic Communications Privacy Act, 341 Electronic Frontier Foundation, (www) 258 Electronic Industry Citizenship Coalition (EICC) (See Responsible Business Alliance) Electronic medical records, 257 Electronic monitoring, 340–341 Employee assistance programs (EAPs), 344 Employee privacy, 339–340 Employees: as corporate stakeholders, 343 employment relationship, 329–330 fair wages and income equality, 337–339, (fig.) 338, (fig.) 339 privacy in the workplace, 339–345 whistleblowing and free speech, 345–346 workplace rights, (fig.) 330, 330–336, (fig.) 331 Employment-at-will, 334–335 End Citizens United, 122, (exh.) 122 Enlightened self-interest, 53 Environmental analysis, 28–31, (fig.) 30 Environmental Defense Fund, 212, 212n Environmental intelligence, 29 Environmental justice, 217 Environmental partnerships, 228 Environmental Protection Agency (EPA), 213, 216n, 222, (www) 234 Equal employment opportunity, 360–361 Equal Employment Opportunity Commission (EEOC), 363, 364n, (www) 371 Equator Principles, 206–207, 207n Equifax, 133–135 Ergonomics, 333 Ethical climates, 117–118, (fig.) 117 Ethical egoist, 101 Ethical principles, 95 Ethical problems, analyzing, 106–111 Ethical problems occur in business, why, 101–103, (fig.) 101 Ethical reasoning, 106, (fig.) 107 Ethical relativism, 96 Ethics: and compliance officers, 125–126, (exh.) 126 in accounting, 118, (exh.) 119 in a global economy, 129–132 in finance, 119–120, (exh.) 119 in information technology, 121–122, (exh.) 121 in marketing, 120–121, (exh.) 121 in supply chain, 122, (exh.) 122 meaning of, 95–97 policies or codes, 124–125, (exh.) 125 reporting mechanisms, 126–127 safeguards, (fig.) 123, 123–124 top management commitment and involvement, 124 training programs, 127–128, (exh.) 128, (fig.) 128 why should businesses be, 97–100, (fig.) 97, (fig.) 98 Ethics and Compliance Initiative, (www) 113 Ethics and Compliance Officers Association, 125, (www) 133 Ethics and Policy Integration Centre, (www) 133 Ethics Resource Center, 97n, (fig.) 123n, (www) 133 Ethisphere Institute, 97, (fig.) 98n, (www) 133 European Academy of Business in Society, 37n European Agency for Fundamental Rights, 363n European Commission, 355, 485n, 487n European Consumer Organization, (www) 324 European Corporate Governance Institute, (www) 303 European Labor Force Survey, 355n European Parliament, 480n, 487n European Union, 147–148, 150, 363 Executive compensation, 291–295, (fig.) 292, (fig.) 293 Extended product responsibility, 204, (exh.) 205 EY Center for Board Matters, 289n, 298n F Facebook, 158–160, 239, 250–251 Fair scheduling, (exh.) 329 Fair Wage Network, (www) 347 Families and Work Institute, 367n, 369n, (www) 371 Family-friendly workplace, 369 Family leave, 368 Federal Aviation Administration (FAA), 140 Federal Bureau of Investigation (FBI), 259–260 Federal Communications Commission (FCC), (www) 438 Federal Reserve System, Board of Governors, (www) 157 Federal Trade Commission (FTC), (www) 157, (www) 277, (www) 324, (www) 438 Fiat Chrysler, 21 Financial Reporting Council, 118 Financial Times (London), (www) 23 Fiscal policy, 145 Food and Drug Administration (FDA), 139, 239, 311, 313, 313n Food labeling, 54 Forced Labor in Supply Chains, (www) 393 Foreign direct investment, 74 Foresight Institute, (www) 277 Forsta AP-fonden, 466n Fortune, (www) 23 Forum for Sustainable and Responsible Investment, (www) 303 Foundation Center, (www) 416 Foundation for Public Affairs, (exh.) 180n, 180n, 424n Fracking, 234–235 Freedom House, 82, 82n Free enterprise systems, 83 Free speech issues, 251–252 G Gap, 387n, 390, (fig.) 392n GapJumper, 365 General Data Protection Regulation (GDPR), 159, 263, 267, 316, 316n General Electric (GE), 224, (exh.) 321 General Motors, 490–499 General public (See Public), 420 General systems theory, 5–6 Genetically modified foods (GM foods), 253–255 Genome Projects (U.S Department of Energy), (www) 258 Giving in Numbers, 406n, 407n, (fig.) 410n Giving Institute, (www) 416 Giving USA Foundation, (fig.) 404n, (fig.) 405n, (www) 416 Giving Voice to Values, (exh.) 128 Glass ceiling, 357–358, (fig.) 358 GlaxoSmithKline (GSK), 132 Global action networks (GAN), 87–88 Global Electoral Organization Conference, 181–182 Global Footprint Network, 194n Globalization: benefits and costs of, 78–81, (fig.) 81 collaborative partnerships, 86–88, (fig.) 88 comparative political and economic systems, 82–84, (exh.) 84 global inequality and the bottom of the pyramid, 84–86, (fig.) 85 international financial and trade institutions, 75–78, (exh.) 77, (exh.) 78 major transnational enterprises, 73–75, (fig.) 74 process of the, 72–73 Global Policy Forum, (www) 89 Global Reporting Initiative, (exh.) 66, (www) 68 Global Retail Theft Barometer, 344, 344n Global Sustainable Investment Alliance, 297n Global warming, 196–199, (fig.) 197 Global wealth pyramid, 84–85, (fig.) 85 Globe Scan/SustainAbility, (fig.) 232n Subject Index 553 Google, 166, 181, 480–489 Government regulation: continuous reform, 155–156, (exh.) 155 effects, 154–155, (fig.) 154 global context, 156 of business, 147–149 types of, 149–154, (exh.) 151, (exh.) 152, (fig.) 153 Gravity Payments, 69–70 Greece, 76 GreenBiz, (www) 393 Green Business Network, (www) 234 Greenhouse Gas Protocol, 206 Guardian, The, (www) 234 H Hacker Combat Community, (www) 277 Hackers, 271–272, (fig.) 271 Hackers List, 271–272 H & M, 379, 379n Harris Poll, (fig.) 423n Hedge funds, 296 Heidrick & Stuggles, 288n Hemoba Foundation, 425 Heritage Foundation, 84 Hewlett-Packard (HP), (exh.) 205 Hobby Lobby, 178 Home Depot, 38 Honest Ads Act, 162 Human genome, 255–256 Human Genome Project, 255 Human rights, (See Rights reasoning), 82–83 Human Rights Campaign Foundation, (exh.) 370n, (www) 371 Human Rights Watch, 516n Human trafficking, 380–381, 462–470 Hydraulic fracking (See Fracking) I IBM, 55–56, 231, 414 IdleAir, 215–216, 216n IKEA, 393–395, 395n Image advertisements, 436–437, (fig.) 437 Inclusion, 364 Industrial ecology, 203 Information security, business responses to invasions, 274–275 Information Systems Security Association, (www) 277 In-kind contributions, 407 Insider trading, 300–301 Institute for a Drug-Free Workplace, (www) 347 Institute for Crisis Management, 428n Institute for Global Ethics, (www) 133 Institute for Policy Studies, (fig.) 293n Institute for Supply Management (ISM), 122n, Institute of Business Ethics, (www) 113 Institute of Medicine, (exh.) 318n Institutional investors, 285, (fig.) 285 rise of, 296–297 Insurance Institute for Highway Safety, 143n, 144 Integrated reports, 66 Integrated supplier scorecards, 391 Intel, 90–91, 413, 413n Intellectual property, 263 Interactive social system, Interface, 225, 225n Interfaith Centre on Corporate Responsibility (ICCR), 466n Intergovernmental Panel on Climate Change, 197, (www) 208 International Business Ethics Institute, (www) 113, (www) 133 International Chamber of Commerce, 206 International financial and trade institutions (IFTIs), 75 International Forum on Globalization, (www) 89 International Labor Rights Forum, 510n, 514n International Labour Organization (ILO), 380n International Maritime Organization, 382n International Monetary Fund (IMF), 76, (www) 89 International Society for Stem Cell Research, (www) 258 Internet, 241–243, (fig.) 243 Internet Society, (www) 258 Intrepid Travel, 229 Iran, 156, 252–253 Iron law of responsibility, 50 ISIS in Syria, 113–114 ISS (formerly Institutional Shareholder Services), (www) 303 Issue Management Council, (www) 44 Issue management process, 33–36, (fig.) 34 organizing for effective, 36–37, (exh.) 37 J Jana Partners, 283 Japan, 181 JBS, 117 JetBlue, (exh.) 409 Johnson & Johnson, 55 Justice reasoning, (fig.) 107, 110 K Kaiser Family Foundation, 443n Kalundborg (Denmark), 203–204, 204n Kentucky Fried Chicken (KFC), (exh.) 248 Keurig Green Mountain, 409 Kids Eat Right, 421 Kimberley process, 88 Kobe Steel Limited, 122 Korn Ferry Institute, 290n KPMG, 365, 365n L Labor force participation rate, 353, (fig.) 353 Labor unions, 330–333, (fig.) 331 LafargeHolcim, 113–114 Laws, 96 Leadership in Energy and Environmental design (LEED), (exh.) 230 Lending Club, 298–299 Levi Strauss, 212, 212n LGBT equality, (exh.) 370 License to operate, 400 Life-cycle analysis, 203 Light Bulb Finder, 195 Living wage, 338–339, (fig.) 339 L.L Bean, 422 Lobbying, 166–168, (exh.) 166, (fig.) 167 Local Governments for Sustainability, (www) 208 M Madagascar, 391 Malaysian campaign finances, (exh.) 170 Malcolm Baldridge National Quality Award, 320 Manufacturing Jobs Initiative, 164 Marine ecosystems, 202 Market-based mechanisms, 219–220 Market failure, 147 Marks & Spencer, 204–205, 205n Massey Energy, 500–509, (exh.) 504n Material sustainability issues, 232 Mattel Toy Company, 376–377 McCutcheon v Federal Election Commission, 173–174 McDonald’s, 189, 189n, 433–434 McKeeson, 442–443 McKinsey & Company, 224n, 268, 518n Media, 421 Mercatus Center, (www) 157 Merck, (exh.) 41 Meta Group, (fig.) 270 Microfinance, 86 Microsoft, (exh.) 126n, 205–206, 245 Millennials, 408 Millennium Project, The, (www) 44 Mine Safety and Health Administration, 505–507, 505n, (exh.) 506n Minha Casa, Minha Vida, 147 Minimum wage, 331–332 Mobile telephones (M-commerce), 246–248, (fig.) 247, (exh.) 248 Modern Slavery Act, 149 Monetary policy, 146 554 Subject Index Monsanto, (www) 258 Monster Beverage, 375 Montreal Protocol, 199, 199n Moral development, stages of, 105–106, (fig.) 105 Moral intensity, 111–112 Morgan Stanley Institute for Sustainable Investing, 297n MSCI, 359n Multinational enterprises, 73–75, (fig.) 74 N Nail salon and care, 348–349 National Cannabis Industry Association, 162 National Center for Crisis Management, (www) 438 National Conference of State Legislators, 144n National Drug-Free Workplace Alliance, 344n National Federation of Independent Businesses, (www) 183 National Highway Traffic Safety Administration (NHTSA), 311, 494–495 National Institute of Drug Abuse, 443n National Issues Forum, (www) 44 National Rifle Association, 44–45 National Transportation Safety Board (NTSB), 140 National Whistleblowers Center, (www) 347 National Wildlife Federation, 472n National Workrights Institute, (www) 347 Nations Development Programme, 512n Natural capital, 190 Natural environment, business and society and the, 190, (fig.) 191 Earth’s carrying capacity, 194–196 forces of change, 192–194, (fig.) 193 global issues, 196–203, (fig.) 197 international community response, 203–207, (exh.) 205 sustainable development, 190–191, (exh.) 192 threats to the Earth’s ecosystem, 191–192 Natural monopolies, 148 Negative externalities, 148 Nestlé, 32, 32n, (fig.) 33, 53, 148–149, 381 Netflix, 322 Net neutrality, (exh.) 264, 264 Networking Academy, 410n New American Economy, 360n New York Stock Exchange, (www) 303 New York Times, The, (www) 23, 362–363 Nike Corporation, 42, 42n, 388n, 391n Nongovernmental organizations (NGOs), 87 North Korea, 253 Northrup Grumman, 366, 366n Norway, 220 Novo Nordisk, 435 Novozymes, 228, 228n Nuclear Information and Resource Service, 217n O Obesity, 151, (exh.) 318 Ocean Cleanup, The, 203 Occupational Safety and Health Administration (OSHA), 334, (www) 347 Occupational segregation, 354–355 Office of Foreign Asset Control, 141n Omnichannel, 267 Opensecrets.org, 183, (fig.) 184 Opioid epidemic, U.S., 442–452, (exh.) 446, (exh.) 448 Organization for Economic Cooperation and Development (OECD), 290, 290n Outcome Health, 120 Ozone, 199 P Paid content, 434 Pakistan, 252 P & G, 296, 426, 426n Panek Precision, 268 Paraquat, 102–103 Parental leave, 368 Paris Agreement, 198 Patagonia, 176, 375 Pay gap, 354, (fig.) 355 Peanut Corporation of America, 95 Pepsi, 420 Performance-expectations gap, 26, (fig.) 27 Petroeo Brasileiro, 130 Pew Charitable Trusts, 203n Pew Research Center, 354n, (fig.) 425n Pfizer, 116, 397 Phishing, 244 Points of Light Foundation, (www) 416 Political action committees (PACs), 170–172, (fig.) 171 Political environment: arguments for and against business involvement, (fig.) 163 managing the, 179–180, (exh.) 180 participants in the, 163–164 Political involvement, levels of, 178–179, (fig.) 179 Politico, (www) 183 Politics.co.uk, (www) 183 Predatory pricing, 150 PricewaterhouseCoopers, 118 Privacy Rights Clearinghouse, 341n Private equity firms, 296 Private regulation, 384 Product liability, 316–317, (exh.) 318 Product recall, 322–323 Professional Crisis Management Association, (www) 438 Professional sport franchises, (exh.) 399 Proxy, 287 Proxy access, 289 Public: brand management, 426–427, (exh.) 427 corporate reputation, 421–423, (fig.) 423 crisis management, 427–430, (exh.) 429, (exh.) 430 engaging key stakeholders, 430–437, (fig.) 431, (fig.) 435, (fig.) 437 general, 420–421 relations department, 424–426, (fig.) 425 Public Affairs Council, (www) 44, (www) 183 Public affairs department, 179–180, (exh.) 180 Public Disclosure Commission, (www) 183 Public issue, 26–28 Public policy: elements of, 142–144 role of government, 141–142 types of, 145–147 Public Private Alliance for Responsible Minerals Trade, 90, 91n Public Relations Society of America (PRSA), (www) 438 Public service announcements (PSAs), 436 Publix, 36, 36n, 38 Puma, 227n Purdue Farms, 35 Purdue Pharma, 445–447 Q Qualcomm, 95, 150 Quality management, 320 R Race to the bottom, 80 Racial harassment, 363 Rana Plaza, 380, 510–520 Ransomware attacks, 273 Regeneron, 407, 407n Regulation, 147 Regulations.gov, (www) 157 REI, 422 Renault, 204n Reputation, 56 Reputation Institute, 56, (www) 438 Reregulation, 155–156 Responsible Business Alliance (RBA), 65, 65n, (exh.) 386, 386n, (www) 393 Subject Index 555 Responsible Sourcing Network, (www) 393 Return on social investment, 412, (fig.) 413 Revolving door, 168, (exh.) 169 Right to be forgotten, 262–263, 480–489 Right to privacy, 250 Right to try, (exh.) 109 Rights reasoning, (fig.) 107, 109–110 Robots, 267–269 Robotics Industries Association, (www) 277 Rocky Mountain Institute, (exh.) 230n Rolls-Royce, 130 Root cause analysis, 390 Roundtable on Sustainable Palm Oil, 382n Royal Bank of Scotland, 120 Royal Dutch Shell, 269 Russia, 524 S SAI Global, (www) 133 Salesforce, 200, 416–418, 418n Samsung, 131 Sarbanes-Oxley Act, 99, 99n, (www) 113 Sarbanes Oxley Compliance Professionals Association, (www) 113 Say-on-pay, 294–295 S.C Johnson, 86, 367n SeaWorld Parks, 283 Securities and Exchange Commission (SEC), 298, 299, (www) 303, 346n Sexual and racial harassment, 362–364 Shareholder lawsuits, 298–299 Shareholders: activism, 295–299 and corporate governance, 287–291 and the corporation, 301–302 around the world, 283–284, (fig.) 284 defined, 284–285, (fig.) 285 government protection of, 299–301 legal rights and safeguards, 286–287, (fig.) 286 objectives of stock ownership, 285–286 Sharing economy, (exh.) 337 Silicon Valley Community Foundation, 408n Skilled-based volunteerism, 408 Social assistance policies, 145 Social audit, standards of, 64–65, (exh.) 66 Social capital, 400 Social contract, 335–336 Social entrepreneurs, 59–60 Social entrepreneurship, 59 Social investment, 297–298 Social Media Association, (www) 438 Social media influencers, 424–425 Social Media Today, (www) 258 Social networking, 248–250, (fig.) 249, (www) 258 Social regulations, 151–154, (exh.) 151 Social reporting, corporate, 65–67, (exh.) 67 Social responsibility shareholder resolutions, 298 Social ventures, 59 Society, Society of Corporate Compliance and Ethics, (www) 133 Sodexo, 56–57, 57n Soft money, 173 Software piracy, 263 Sonoco, 31n, 32 Spam (unsolicited commercial e-mail), 243, (fig.) 244 Spirituality in the workplace, 104–105 Stakeholder: analysis, 11–18, (fig.) 12 are managers, (exh.) coalitions, 15–16 concept of, dialogue, 41–43 engagement, 38–40, (fig.) 39 interests, 12–13, (exh.) 16–17 internal and external, 10 mapping, 16–18, (fig.) 18 market and nonmarket, 9–11, (fig.) 11 materiality, 32, (fig.) 33 networks, 41–42 power, 13–15, (exh.) 16–17 salience, 15–16 theory of the firm, 6–8 Stanford University Research on Responsible Supply Chain, (www) 393 Starbucks, 38–39, 48, 228, 328–329 Star Model, 436–437, (fig.) 437 Statistic Brain Research Institute, (www) 258 Statistics Portal, (fig.) 435n Stem cell research, 256 Stock options, 291 Stoli Group, 521–528 Strategic and Competitive Intelligence Professionals, 32n, (www) 44 Strategic philanthropy, 410 Strict liability, 317 Subaru, 229, 229n Superfund, 217 Super PACs, 172 Supplier development, 389 Suppliers, 376–378, (fig.) 378 development and capability building, 389–392, (fig.) 392 global supply chain issues, 378–383, (exh.) 383 private regulation of, 384–387, (fig.) 385, (exh.) 386, (fig.) 387 supply chain auditing, 387–389 Supply chain, 376 Supply chain audit, 387 Supply chain codes of conduct, 385 Supply chain map, 378, (fig.) 378 Supply chain risk, 383 Supply chain transparency, (exh.) 383 Supply Chain World (SCW), (fig.) 387n SustainAbility, (www) 234 Sustainability Consortium, 203n Sustainability, managing for: competitive advantage, 228–233, (exh.) 230, (fig.) 232 costs and benefits of environmental regulation, 222–224, (fig.) 223 ecologically sustainable organization, 225–228 role of government, 213–222, (fig.) 214, (exh.) 218, (fig.) 221 stages of corporate environmental responsibility, 224 Sustainability report, 227 Sustainable cotton supply chain, 393–395 Sustainable development, 190–191, (exh.) 192 Sweatshops, 379 Sweden, 216 Symrise, 391, 391n Syngenta, 201 T Taproot Foundation, (www) 416 Tariff, 77, (exh.) 78 Tax-exempt organizations, 172–173 Taylor Guitars, 189 Technology: chief information, security, technology officer, 269–271, (fig.) 270 defined, 239–240 digital divide in the United States and worldwide, 245–246 ethical challenges, 250–252 government censorship, 252–253 government regulation of, 262–264, (exh.) 264 mobile telephones, 246–248, (fig.) 247, (exh.) 248 phases of, 240–241, (fig.) 240 robots and artificial intelligence, 267–269 role in business, 264–267 role in our daily lives, 241–244, (fig.) 243, (fig.) 244 scientific breakthroughs, impact of, 253–257 social networking, 248–250 Technology cooperation, 205 Tenet Healthcare, 102 Tesla, 140, 278 Textile Excellence, 379n 3M, (exh.) 125 Three Square Market, 265 Tier-1 suppliers, 376 Tier-2 suppliers, 376 556 Subject Index Time Warner, (exh.) 151 Toffler, Alvin, 240n Towers Watson, 352n Toxic Release Inventory, 220n Toyota, 231n Trade associations, 177–178 Trade policy, 145 Transparency International, 129–130, 129n, (www) 133, 167–168, 513n Travelers, 401 Trian Partners, 296 21st Century Fox, 420 Tyson Foods, 35, 226 U Uber, 23–24, 72, 139 Ultimate Software, 351 Undocumented (unauthorized) immigrant workers, 352 UNICEF, (www) 68, 83n Unilever, 391 United Airlines, 439–440 United for a Fair Economy, (fig.) 293n United Kingdom, 405–406 United Kingdom Bribery Act, 131, 131n United Nations and Civil Society, (www) 89 United Nations Conference on Trade and Development, 73n, 74n United Nations Convention to Combat Desertification, 201n United Nations Development Programme, 82n United Nations Environmental Program, 200n, (www) 208 United Nations Framework Convention on Climate Change, (www) 208 United Nations Global Compact, (www) 68 United Nations Global Issues, (www) 44 United Nations International Law, (www) 157 United Nations Population Division, (fig.) 193n U.S Bureau of Labor Statistics, 332n, 333n, 336n, 352n, (fig.) 353n, (fig.) 355n, 355n, (fig.) 357, 367n U.S Census Bureau, 216n, 282n, 360n U.S Chamber of Commerce, 177, 177n U.S Consumer Financial Protection Bureau, (www) 157 U.S Corporate Sentencing Guidelines, 98–99, 99n U.S Department of Interior, 479n U.S Department of Justice, 317n, 442n U.S Department of Labor, Glass Ceiling Commission, 359n U.S Department of State, 465n, 516n U.S False Claims Act, 346 U.S Federal Election Commission (FEC), (www) 183 U.S Federal Trade Commission (FTC) (See Federal Trade Commission) U.S Foreign Corrupt Practices Act (FCPA), 131 U.S Green Building Council, (exh.) 230, 230n U.S House of Representatives Lobbying Disclosure, (www) 183 U.S Office of Government Ethics, (www) 113 U.S Office of Information and Regulatory Affairs, (www) 157 U.S Sentencing Commission, (www) 113 U.S Small Business Administration, 360n, (www) 371 U.S steel industry, 183–186, (fig.) 184 U.S Substance Abuse and Mental Health Services Administration, 344n U.S Surgeon General, (exh.) 318n Universal Declaration of Human Rights, 83n Unocal, 14n Unsolicited commercial e-mail (See Spam) Upper Big Branch Mine, 500–509 UPS, 257 User-generated content, 433 Utilitarian reasoning, (fig.) 107, 108–109 Utility Workers Union of America (UWUA), 332 V Values, manager’s, 103–104 Virtue ethics, 107–108, (fig.) 107, (fig.) 108 Vodafone, 397, 397n Volkswagen, 215, 324–326 Volunteering in the United States, 408n Volunteerism, 407–408, (exh.) 409 Volvo, 278 VTech, 121–122 Vulture funds, (exh.) 77 W Walmart, 375, 400 Warby Parker, 60 Wells Fargo, 116, 345, 408, 453–461 Wendy’s, (exh.) 429 WEN Haircare, 306, 306n Western Climate Initiative, 212, 212n Western Growers Association, 321 Whole Foods Market, 397 Wir Zusammen, 75 Worker Rights Consortium, 518n Work flexibility, 368–370, (exh.) 370 Workforce diversity, 351 Workforce, the changing face of the, 351–353 gender and race at work, 353–354, (fig.) 353 gender and racial pay gap, 354–356, (fig.) 354, (exh.) 356 glass ceiling, breaking the, 356–359, (fig.) 358 women and minority business ownership, 359–360 women and persons of color, 356, (exh.) 357 Working Mother magazine, 369n, (www) 371 Workplace diversity, 364–367 Workplace Fairness, (WWW) 347 World Bank, 75, (www) 89, 400n, 512n World Business Council on Sustainable Development (WBCSD), (www) 208 World Economic Forum, 99, (www) 393 World Future Society, (www) 44 World Resources Institute, (www) 208 World Tourism Organization, 464 World Trade Organization (WTO), 76, (www) 89 Worldwatch Institute, (www) 208 World Wildlife Fund, 201n W.R Grace, 38 Wyeth v Levine, 319 Wynn Resorts, 303–304 .. .Business and Society Stakeholders, Ethics, Public Policy Sixteenth Edition Anne T Lawrence San José State University James Weber Duquesne University BUSINESS AND SOCIETY: STAKEHOLDERS, ETHICS, ... 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, ... 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