Business Ethics - A Stakeholder and Issues - Joseph W. Weiss

Chapter One
Business Ethics, The

Changing Environment,
And Stakeholder
Management
Copyright © 2003 by South-
Western, a division of Thomson
Learning 1
Chapter Topics
1. Business ethics and the changing
environment
2. What is business ethics? Why does it
matter?
3. Levels of business ethics
4. Five myths about business ethics
5. Why use ethical reasoning in business?
6. Can business ethics be taught and trained?
7. Plan of the book
Copyright © 2003 by South-Western, a division of Thomson

Learning 2
Business Ethics and the
Changing Environment
 Businesses & governments operate in changing
technological, legal, economic, social & political
environments with competing stakeholders & power
claims.
 Stakeholders are individuals, companies, groups &
nations that cause and respond to external issues,
opportunities, and threats.
 The rate of change and uncertainty in which stake-
holders & society must make & manage business &
moral decisions have accelerated due to the impact of:
 Internet and information technologies
 Globalization
 Deregulation
 Mergers
 Wars
Learning 3
Environmental Forces and
Stakeholders
 Local, national, and international
environments are increasingly moving
toward and into a global system of
dynamically interrelated interactions among
local, national, and regional politics,
economies, regulations, technologies,
demographics, and international law. Each
forces has impact on your organizations
 Economic environment (more global context of
trade, market and resource flow)
 Technological environment (e- communication,
social online network all cause change of jobs,
companies and industries)
Learning 4
 Political
 Governmental and regulatory (regulatory laws and
procedure to protect consumer and restrict unfair
corporate practices)
 Legal (how much power should the government
have to administer laws to protect citizens and
ensure that business transactions are fair?)
 Demographic and social environment (continue to
change as national boundaries experience the
effects of globalization and the workforce become
more diverse)

Learning 5
Stakeholder Management
Approach
 The stakeholder management approach is a way of
understanding the effects of environmental forces and
groups on specific issues that affect real-time
stakeholders and their welfare.
 This approach attempts to enable individuals and
groups to articulate collaborative win-win strategies:
based on:
 Identifying and prioritizing issues, threats, or opportunities
 Mapping who the stakeholders are
 Identifying their stakes, interests, and power sources
 Showing who the members of coalitions are or may become
 Showing what each stakeholder’s ethics are and should be
 Developing collaborative strategies and dialogue from a higher
ground perspective to move plans and interactions to the
desired closure for all parties

Learning 6
What is Business Ethics?
Why Does It Matter?
 Ethical solutions to business and organizational problems
may have more than one right alternative and sometimes,
no right solution may seem available.
 We can learn from case studies, role playing, and
discussions about how our actions affect others in different
situations.
 Laura Nash has defined business ethics as “the study of how
personal moral norms apply to the activities and goals of
commercial enterprise,” as dealing with three basic areas of
managerial decision making:
 Choices about what the laws should be and whether to
follow them
 Choices about economic and social issues outside the
domain of law
 Choices about the priority of self-interest over the
company’s interests

Learning 7
What Are Unethical
Business Practices?
 Surveys have identified the following recurring
themes to prominent everyday ethical issues
facing businesses and their stakeholders:
 Managers lying to employees
 Office nepotism and favoritism
 Taking credit for other’s work
 Receiving/offering kickbacks
 Stealing from the company
 Firing an employee for whistle-blowing
 Filling expense accounts
 Divulging confidential information or trade secrets
 Terminating employment without sufficient notice
 Using company property/materials for personal use
Learning 8
What Are Unethical
Business Practices?
 The most unethical behavior, per one
survey, happens in the following areas:
 Government
 Sales
 Law
 Media
 Finance
 Medicine
 Banking
 Manufacturing

Learning 9
Why Does Ethics Matter In
Business?
 “Doing the right thing” matters to employers,
employees, stakeholders, and the public.
 For companies, it means saving billions of dollars
each year in lawsuits, settlements, and theft
 Tobacco industry
 Dow Corning
 Costs to businesses include:
 Deterioration of relationships
 Damage to reputation
 Declining employee productivity,creativity, and
loyalty
 Ineffective information flow throughout the
organization
 Absenteeism
Learning 10
Levels of Business Ethics
 Because ethical problems are not only an
individual or personal matter, it is helpful
to see the different levels at which issues
originate and how they move to other
levels.
 Five levels are:
 Individual
 Organizational
 Association
 Societal
 International

Learning 11
Asking Key Questions
 The following questions can be asked when a
problematic decision or action is experienced or
perceived before it becomes an ethical dilemma:
 What are my core values and beliefs?
 What are the core values and beliefs of my
organization?
 Whose values, beliefs, and interests may be at risk
in this decision? Why?
 Who will be harmed or helped by my decision or by
the decision of my organization?
 How will my own and my organization’s core values
and beliefs be affected or changed by this decision?
 How will I and my organization be affected by the
decision?
Learning 12
Five Myths About Business
Ethics
 A myth is “a belief given uncritical
acceptance by the members of a group,
especially in support of existing or
traditional practices and institutions.”
 Myth 1: Ethics is a personal, individual
affair, not a public or debatable matter
(individual and organization not operate in
vacuum. Individual ethical decisions more
influenced by discussion, conversation,
organizations act in social responsible
ways often pay panalties for unethical
behaviour)
Learning 13
 Myth 2: Business and ethics do not mix
 Myth 3: Ethics in business is relative
 Myth 4: Good business means good ethics
 Myth 5: Information and computing are
amoral

Learning 14
Why Use Ethical
Reasoning In Business?
 Ethical reasoning is required in business for
at least three reasons:
 Many times laws are insufficient and do not cover
all aspects or gray areas of a problem
 Free-market and regulated-market mechanisms do
not effectively inform owners and managers about
how to respond to complex issues and crises that
have far-reaching ethical consequences
 Complex moral problems require an intuitive or
learned understanding and concern for fairness,
justice, and due process to people, groups, and
communities

Learning 15
Can Business Ethics Be
Taught And Trained?
 Ethic courses should not:
 Advocate a set of rules from a single
perspective
 Not offer only one best solution to
specific ethical problems
 Not promise superior or absolute ways
of thinking and behaving in situations

Learning 16
Taught And Trained?
 Ethic courses and training can do the
following:
 Provide people with rationales, ideas, and vocabulary
 Help people make sense of their environments
 Provide intellectual weapons
 Enable employees to act as alarm systems for company
practices
 Enhance conscientiousness and sensitivity
 Enhance moral reflectiveness and strengthen moral
courage
 Increase people's ability to become morally autonomous
ethical dissenters
 Improve the firm’s moral climate
Learning 17
Taught And Trained?
 Other scholars argue that ethical
training can add value to the moral
environment of a firm and to
relationships in the workplace by:
 Finding a match between employer’s
and employee’s values
 Managing the push-back point
 Handling an unethical directive
 Coping with a performance system that
encourages unethical means
Learning 18
Stages Of Moral
Development
 Kohlberg’s 3 levels of moral development:
Level 1: Preconventional level (self-
orientation)
 Stage 1: Punishment
 Stage 2: Reward seeking
 Level 2: Conventional level (others
orientation)
 Stage 3: Good person
 Stage 4: Law and order
 Level 3: Postconventional level (universal,
humankind orientation)
 Stage 5: Social contact
 Stage 6: Universal ethical principles
Learning 19
Chapter Two
Stakeholder And Issues

Management
Approaches
Learning 20
Chapter Topics
1. Why use a stakeholder management
approach for business ethics?
2. Stakeholder management approach
defined
3. How to execute a stakeholder analysis
4. Stakeholder approach and ethical
reasoning
5. Moral responsibilities of functional area
professionals
6. Three issues management approaches
7. Two crisis management approaches
Learning 21
Why Use A Stakeholder
Management Approach For
Business Ethics?
 The stakeholder approach is a response to the growth
and complexity of understanding and study of the
modern corporation and its influence on the
environment.
 The ethical dimension of this approach is based on the
view that:
 Profit maximization is constrained by justice
 Regard for individual rights should be extended to all
constituencies that have a stake in the affairs of a business
 Organizations are not simply or only economic in nature but can
and do act in socially responsible ways, not only because it is
the right thing to do, but also to ensure their legitimacy

Learning 22
Approach Defined
 The stakeholder approach provides a
framework that enables users to map and
ideally, manage the corporation’s
relationships, both present and potential, with
groups to reach win-win collaborative
outcomes.
 It does not have to result from a crisis or
controversial situation.
 It can be used as a planning method to
anticipate and facilitate business decisions,
events, and policy outcomes.
 Business units, teams, and groups can use this
approach.
Learning 23
Approach Defined
 Stakeholder: any individual or group who can
affect or is affected by the actions, decisions,
policies, practices, or goals of the organization.
 Primary stakeholders of a firm: owners,
customers, employees, and suppliers.
 Secondary stakeholders: all other interested
groups such as the media, consumers,
lobbyists, courts, governments, competitors,
the public, and society.
 Stakes: any interest, share, or claim that a
group or individual has in the outcome of a
corporation’s policies, procedures, or action
toward others.
Learning 24
How To Execute A
Stakeholder Analysis
 The stakeholder approach is a pragmatic way of
identifying and understanding multiple, often
competing, political, social, legal, economic, and moral
claims of many constituencies.
 The stakeholder analysis is a series of steps aimed at
the following tasks:
 Mapping stakeholder relationships
 Mapping stakeholder coalitions
 Assessing the nature of each stakeholder’s interest
 Assessing the nature of each stakeholder’s power
 Constructing a matrix of stakeholder moral
responsibilities
 Developing specific strategies and tactics
 Monitoring shifting coalitions
Learning 25
Mapping stakeholder relationship
 Identify major stakeholders

 Mapping stakeholder coalitions
 Mapping the group who have common stakes
 For example- interest group, lobbyists and competitor
 Mapping coalition can help you anticipating and designe
strategic responses towards these groups before or after they
form
 Assessing the nature of each stakeholder’s interest
 Assess the nature of each stakeholder's power with respect to situation
an interest of stakeholders

Learning 26
Types of stakeholders
 Stakeholder’s potential for threat to
organization and cooperation with
organization
 Supporter stakeholders (employees,
management, lawyers), non-supporter
(disrupt or prevent outsource strategy,
consumer, community), mixed blessing
and marginal
Learning 27
 Assessing the nature of each stakeholder’s power
 Constructing a matrix of stakeholder moral
responsibilities
 Developing specific strategies and tactics
 Monitoring shifting coalitions

Learning 28
Stakeholder Approach And
Ethical Reasoning
 The stakeholder analysis is an analytical method
where no prescribed ethical principles or
responsibility rules are built-in.
 Ethical reasoning in the stakeholder analysis
means asking:
 What is equitable, just, fair, and good for those
who affect and are affected by business decisions?
 Who are the weaker stakeholders in terms of
power and influence?
 Who can, who will, and who should help weaker
stakeholders make their voices heard and
encourage their participation in the decision
process and outcomes?
Learning 29
Moral Responsibilities Of
Functional Area Professionals
 One goal of a stakeholder analysis is to
encourage and prepare organizational
managers to articulate their own moral
responsibility, as well as the responsibilities of
the company and their profession, toward their
different constituencies.
 Stakeholder analysis focuses the enterprise’s
attention and moral decision-making process
on external events.
 This approach applies internally, especially to
individual managers in and across traditional
function areas.

Learning 30
Moral Responsibilities Of
Functional Area Professionals
 Traditional functional and expert areas
include:
 Marketing
 Research and development (R& D)
 Manufacturing
 Public relations
 Human resource management (HRM)

Learning 31
Issue Management
 An issue is a problem, contention, or
argument that concerns both an
organization and one or more of its
stakeholders and/or stockholders. Also,
“Think of an issue as a gap between
your actions and stakeholder
expectations. Second, think of issue
management as the process used to
close that gap.”
-Western, a vision of Thomson Learning 32
 A primary method is using an accommodating policy. Providing
public education, community dialogue, and changing
expectations through communication are some accommodating
strategies used in issues management. Solving complicated
issues may sometimes require radical actions, like replacing
members from the board of directors and the senior
management team
 the issue of obesity has become prominent in the United States.
Once considered a personal lifestyle problem, obesity is now
seen as a public health disease, This issue involves insurance
companies, the corporations who employ individuals facing this
problem, employment attorneys, families of those individuals
affected, and taxpayers, to name a few.
Learning 33
Three Issues Management
Approaches
 First Approach: 6-Step Issue
Management Process
 Most straightforward
 More appropriate for companies or groups
trying to understand, manage, and control
their internal environments
 Involves the following steps:
 Environmental scanning and issues identification
 Issues analysis
 Issues ranking and prioritizing
 Issues resolution strategizing
 Issues response and implementation
 Issues evaluation and monitoring
Learning 34
Approaches
 Second Approach: 7-Phase Issue
Development Process
 Issues are believed to follow a developmental
life cycle
 Life-cycle stages suggested for tracking an
issue:
 A felt need arises (from emerging events, advocacy
groups, books, movies).
 Media coverage is developed(television segments, and
breaking news on the Internet and blogging sources). public
awareness, TV, and radio coverage

Learning 35
 Interest group development gains momentum
 Policies are adopted by leading political jurisdictions (cities,
states, counties) adopt policies
 The federal government gives attention to the issue
 Issues and policies evolve into legislation and regulation
 Issues and policies enter litigation
 Businesses gain awareness but take no

action (in 2nd, 3 and 4)
 Businesses lobby if issues evolve into
proposed legislation that could affect

them
Learning 36
Approaches
 Third Approach: 4-Stage Issue Life
Cycle
 Thomas Marx observed that issues
evolve from social expectations to
social control through the following
steps:
 Social expectations Social Discussion and Debate, Interest
Group Attention
 Political issues Media Attention, Legislation Initiated, Hearings
Held

Learning 37
 Legislation Law Passed, Legal
Involvement, Regulations Enacted
 Social control Compliance Issues,
Legal Conflict,Court Rulings

Learning 38
Crisis Management
 “Crisis management” methods evolved
from the study of how corporations and
leaders responded (and should have
responded) to crises.
 crises continue to occur in a number of
areas: product/service crises; consumer
products, financial system, and
government/private contractor projects.
 success
Copyright story
© 2003 by South-Western, a division of Thomson
Learning 39
Two Crisis Management
Approaches
 First Approach: Precrisis Through
Resolution
 According to this model, a crisis consists of
four stages:
 Prodromal (precrisis)
 Warning stage
 Acute
 Damage has been done
 Chronic= recovery, self-analysis, self-doubt, and
healing.
 Clean-up phase
 Resolved-
Copyright © 2003 by South-Western, a division
to speed up this phase of
andThomson
resolve a crisis once and for all?
Learning 40
Approaches
 Second Approach: Reaction Through
Accommodation
 Five phases of corporate social response to crises
related to unsafe products, or product crisis
management include:
 Reaction Management lacks complete information and time to analyze the event thoroughly
 A crisis has occurred
 Defense- The firm’s image is at stake
 The company is overwhelmed by public attention
 Insight whether their company is at fault in the safety issues of the product in question .
 Most painful time
 Accommodation to remove the product from the market or refutes the charges against product
safety
 Addressing public pressure and anxiety
Copyright © 2003
 byAgency
South-Western,
developa division of Thomson program
an education for the public
Learning 41
 Company attempts to understand the causes
Approaches
 Suggestions that corporations can follow to
respond more effectively to crises include:
 Face the problem
 Take your lumps
 Recognize that there is no such thing as a
secret or private crisis
 Stage war games
 Use the firm’s philosophy, motto, or mission
statement
 Use the firm’s closeness to customers and end
users for early feedback
Learning 42
Approaches
 Issues and crisis management
methods and preventive techniques
are effective in corporations only if:
 Top management is supportive and
participates
 Involvement is cross-departmental
 The issues management unit fits with
the firm’s culture
 Output, instead of process, is the focus
Learning 43
Chapter Three
Ethical Principles, Quick

Tests, And Decision-
Making Guidelines
Learning 44
Chapter Topics
1. Decision criteria for ethical reasoning
2. Ethical relativism: A self-interest approach
3. Utilitarianism: A consequentialist (results-based)
approach
4. Universalism: A deontological (duty-based)
approach
5. Rights: An entitlement-based approach
6. Justice: Procedures, compensation, retribution
7. Immoral, amoral, and moral management
8. Four social responsibility roles
9. Individual ethical decision-making styles
10. Quick ethical tests
11. Concluding comments
Learning 45
Decision Criteria for Ethical
Reasoning
 A first step in addressing ethical dilemmas is to
identify the problem and related issues.
 Laura Nash developed twelve questions to ask
yourself during the decision-making period to help
clarify ethical problems.
 These twelve questions can help individuals:
 Openly discuss the responsibilities necessary to solve ethical
problems
 Facilitate group discussions
 Build cohesiveness and consensus
 Serve as an information source
 Uncover ethical inconsistencies
 Help a CEO see how managers think
 Increase the nature and range of choices
Learning 46
Reasoning
 The following three criteria can be used in
ethical reasoning:
 Moral reasoning must be logical
 Factual evidence cited to support a person’s
judgment should be accurate, relevant, and
complete
 Ethical standards used should be consistent
 A simple but powerful question can be used
throughout your decision-making process in
solving ethical dilemmas:
 What is my motivation for choosing a course
ofbyaction?
Copyright © 2003 South-Western, a division of Thomson
Learning 47
Reasoning
 A major aim of ethical reasoning is to gain a
clearer and sharper logical focus on problems to
facilitate acting in morally responsible ways.
 Two conditions that eliminate a person’s moral
responsibility for causing harm are:
 Ignorance
 Inability
 Mitigating circumstances that excuse or lessen a
person’s moral responsibility include:
 A low level of or lack of seriousness to cause harm
 Uncertainty about knowledge of wrongdoing
 The degree to which a harmful injury was caused
or averted
Learning 48
Ethical Relativism:
A Self-Interest Approach
 Ethical relativism holds that no universal
standards or rules can be used to guide or
evaluate the morality of an act.
 This view argues that people set their
own moral standards for judging their
actions.
 This is also referred to as naïve
relativism.
 The logic of ethical relativism extends to
culture.
Learning 49
Ethical Relativism:
A Self-Interest Approach
 Benefits include:
 Ability to recognize the distinction
between individual and social values,
customs, and moral standards
 Problems include:
 Imply an underlying laziness
 Contradicts everyday experience
 Relativists can become absolutists
 Relativism and stakeholder analysis.

Learning 50
Utilitarianism: A
Consequentialist (Results-
Based) Approach
 The basic view holds that an action is
judged as right, good, or wrong on the
basis of its consequences.
 The moral authority that drives
utilitarianism is the calculated
consequences or results of an action,
regardless of other principles that
determine the means or motivations
for taking the action.
 Utilitarianism includes other tenets.
Learning 51
Utilitarianism: A
Consequentialist (Results-
Based) Approach
 Problems with utilitarianism include:
 No agreement exists about the definition
of the “good” to be maximized
 No agreement exists about who decides
 How are the costs and benefits of
nonmonetary stakes measured?
 Does not consider the individual
 Principles of rights and justice are ignored
 Utilitarianism and stakeholder
analysis.
Learning 52
Universalism: A Deontological
(Duty-Based) Approach
 This view is also referred to as
deontological ethics or
nonconsequentialist ethics and holds that
the means justify the ends of an action,
not the consequences.
 Kant’s principle of the categorical
imperative places the moral authority for
taking action on an individual’s duty
toward other individuals and humanity.
 The categorical imperative consists of
two
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Learning 53
Universalism: A Deontological
(Duty-Based) Approach
 The major weaknesses of universalism
and Kant’s categorical imperative
include:
 Principles are imprecise and lack
practical utility
 Hard to resolve conflicts of interest
 Does not allow for prioritizing one’s
duties
 Universalism and stakeholder analysis.
Learning 54
Rights: An Entitlement-
Based Approach
 Moral rights are based on legal rights and
the principle of duty.
 Rights can override utilitarian principles.
 The limitations of rights include:
 Can be used to disguise and manipulate
selfish, unjust political interests and claims
 Protection of rights can be at the expense of
others
 Limits of rights come into question
 Rights and stakeholder analysis.
Learning 55
Justice: Procedures,
Compensation, Retribution
 The principle of justice deals with
fairness and equality.
 Two recognized principles of fairness that
represent the principle of justice include:
 Equal rights compatible with similar liberties
for others
 Social and economic inequality arrangement
 Four types of justice include:
 Compensatory
 Retributive
 Distributive
 Procedural
Learning 56
Justice: Procedures,
Compensation, Retribution
 Problems using the principle of justice
include:
 Who decides who is right and who is wrong?
 Who has moral authority to punish?
 Can opportunities and burdens be fairly
distributed?
 Justice, rights, and power are really
intertwined.
 Two steps in transforming justice:
 Be aware of your rights and power
 Establish legitimate power for obtaining rights
 Justice and stakeholder analysis.
Learning 57
Immoral, Amoral, Or Moral
Management
 Immoral management means intentionally
going against ethical principles of justice and
of fair and equitable treatment of other
stakeholders.
 Amoral management happens when others
are treated negligently without concern for
the consequences of actions or policies.
 Moral management places value on
equitable, fair, and just concern of others
involved.

Learning 58
Four Social
Responsibility Roles
 Figure 3.3 illustrates four ethical
interpretations of the social roles and
modes of decision-making.
 The four social responsibility modes
reflect business roles toward
stockholders and stakeholders.
 Two social responsibility orientations
of businesses and managers toward
society include:
 Stockholder model
 Stakeholder model
Learning 59
Individual Ethical
Decision-Making Styles
 Stanley Krolick developed a survey
that interprets individual primary and
secondary ethical decision-making
styles, that include:
 Individualism
 Altruism
 Pragmatism
 Idealism

Learning 60
Quick Ethical Tests
 The Center for Business Ethics at
Bentley College suggests six questions
to be asked before making a decision.
 Classical ethical tests:
 The Golden Rule
 The Intuition Ethic
 The Means-End Ethic
 Test of Common Sense
 Test of One’s Best Self
 Test of Ventilation
 Test of Purified Idea
Learning 61
Chapter Four
The Corporation and

Internal Stakeholders
Value-Based Moral Dimensions of
Leadership. Strategy, Structure,
Culture, And Self-Regulation
Learning 62
Chapter Topics
1. Stakeholder management and value-
based organizational systems
2. A 10-step assessment of value-based
organizational systems and
stakeholders
3. Leadership and strategy
4. Culture, structure, and systems
5. Corporate self-regulation: Challenges
and issues
Learning 63
Stakeholder Management and
Value-Based Organizational
Systems
 An organization’s enacted purpose, values,
and mission are central to its internal
alignment and external market effectiveness.
 The stakeholders management approach
argues that organizations succeed in market
and nonmarket environments through open
dialogue and a duty to assist stakeholders.
 The digital information technology revolution
has increased pressure on industries and
corporations to question to what extent
ethical and stakeholder value-based
management principles and practices still
work.
Learning 64
Systems
 The visionary built-to-last companies are
premier institutions, widely admired by their
peers, and having a long track record of
making a significant impact on the world
around them.
 Not all organizations have the characteristics
of built-to-last companies, nor would all
companies agree with or support some of the
ideologies, products, and strategies of
visionary firms.
 Phillip Morris
 The concept of creative destruction.
Learning 65
Systems
 Internal organizations are composed of
systems and stakeholders, regardless of
the nature of external environments.
 An interesting concept, and counterpart
to the creative destruction argument is
creative reconstruction.
 Dot-com survivors
 The internal dimensions of an
organization are illustrated in the
diagnostic contingency model in Figure
4.1.
Learning 66
Systems
 The purpose and core ideology of
organizations are modeled by its leaders and
embedded in its enterprise strategy.
 The culture of a company is at the center
spoke of the wheel of transformation.
 The vision and strategy, people, systems,
structure, technology, and nature of work
comprise the internal operations of the
organization.
 Stakeholder management theory, states that
an organization should treat its internal &
external stakeholders ethically to be
effective with its marketplace communities.
Learning 67
Systems
 From a stakeholder management
perspective, it is the role of an
organization’s leaders, with the
support of each professional, to
ensure that the integration and
market effectiveness of a company
is based on the types of relationship
and values that embody trust,
collaboration, and a “win-win” goal
for
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2003 by and stockholders.
South-Western, a division of Thomson
Learning 68
A 10-Step, Value-Based
Assessment
 A stakeholder management approach that is
value-based is argued to be more effective in
implementing organizational change
programs that include ethics and compliance
training.
 There are many stakeholder management
audits and assessment frameworks.
 Companies can use management, human
resources, and ethics consultants to design
and deliver these types of assessments.

Learning 69
A 10-Step, Value-Based
Assessment
 The 10-step assessment is as follows:
 Determine the problem or opportunity and gain top
leader support
 Review and develop the vision, mission, values, and
ethics code
 Use a value-based stakeholder readiness checklist
 Develop performance and responsibility measures and
get feedback
 Identify stakeholder level of responsiveness and
responsibility in the corporate strategy
 Determine the organization's systems alignment
 Conduct baseline and gap analysis between current and
desired future states
 Create benchmarks
 Develop summary report with recommendations
Review
Copyright© 2003 results a division of Thomson
by South-Western,
Learning 70
Leadership And Strategy
 Leadership is a shared process,
although the values and
behaviors of company founders
and CEOs often frame and set the
cultural tone for the
organizations.
 A starting point for identifying a
leader’s values is the vision and
mission statement of a company.
Learning 71
 From a stakeholder management, value-based
assessment, a CEO and other organizational
leaders would demonstrate the following skills:
 Define and lead the social and ethical, as well as
the competitive, mission of organizations
 Build and sustain relationships with stakeholders
 Talk with stakeholders, showing interest and
concern for other’s need beyond the economic and
utilitarian dimensions
 Demonstrate collaborations and trust in shared
decision making and strategy sessions
 Show awareness and concerns for employees and
other stakeholders in the policies and practices of
the company
Learning 72
 An emerging body of literature and
practice describes leadership from a
deeper spiritual and value-based
perspective.
 Theological and philosophical
literature has helped redefine
leadership to include new concepts
and vocabulary that capture the
human and spiritual domains from
which business leaders already
work.
Learning 73
 Leadership styles:
 Manipulator
 Bureaucratic
 Professional
 Transforming
 Seven symptoms of the failure of ethical
leadership:
 Ethical blindness
 Ethical muteness
 Ethical incoherence
 Ethical paralysis
 Ethical hypocrisy
 Ethical schizophrenia
Ethical
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Learning 74
 Strategy influences the goals and
objectives of the company and its
stakeholders.
 Sets the overall direction of business
activities
 Reflects and models activities that
management values and prioritizes
 Sets the tone and tenor of business
activities and transactions inside the
organization
Learning 75
 Corporations formulate at least four levels of
strategies:
 Enterprise
 Corporate
 Business
 Functional
 The strategy management process involves:
 Formulating goals
 Formulating strategies
 Implementing strategies
 Controlling strategies
 Evaluating strategies
 Analyzing the environment
Learning 76
Culture, Structure, and
Systems
 A corporation’s culture is the shared values
and meanings its members hold in common,
which are articulated and practiced by an
organization’s leaders.
 Organizational cultures are:
 Visible and invisible
 Formal and informal
 Organizational cultures can be studied by:
 Observation
 Listening to and interacting with people
 Other ways
Learning 77
Culture, Structure, and
Systems
 Signs of cultures in trouble or weak cultures include:
 An inward focus
 A short-term focus
 Morale and motivational problems
 Emotional outbursts
 Fragmentation and inconsistency
 Clashes among subcultures
 Ingrown subcultures
 Dominance of subculture values
 No clear values or beliefs
 Many beliefs
 Different beliefs
 Destructive or disruptive cultural heroes
Disorganized
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by South-Western, daily routines
division of Thomson
Learning 78
Corporate Self-Regulation:
Challenges And Issues
 Establishing codes of ethical and legal
conduct, implementing stakeholder
management assessments, and enacting
ethics programs can help a company
financially and morally.
 Ethics codes
 Value statements that define an organization
 Ombudspersons and peer review programs
 To manage the legal and moral aspects of
potentially problematic activities
 Ethics programs
Another
Copyright© 2003 method
by South-Western, for ofhandling
a division Thomson moral questions
Learning 79
Chapter Five
The Corporation
And
External Stakeholders
Learning 80
Chapter Topics
1. Managing corporate responsibility in the
marketplace: crises and opportunities
2. Managing corporate responsibility with
external stakeholders
3. Corporate responsibility and consumer
stakeholders
4. Corporate responsibility in advertising,
product safety, and liability
5. Corporate responsibility and the
environment
Learning 81
Managing Corporate Responsibility
in the Marketplace: Crises and
Opportunities
 Managing legal and moral responsibility in the
marketplace can be a significant part of a corporation’s
activities.
 Figure 5.1 in the text
 Classic corporate crises
 Corporate social responsibility refers to a business’s
attention to and promotion of the welfare and goodwill
of stakeholders.
 Evidence supports that corporations that are socially
responsible have a competitive advantage in the
following areas:
 Reputation
 Successful social investment portfolios
 Ability to attract quality employees
Learning 82
Managing Corporate
Responsibility with External
Stakeholders
 The stakeholder management
approach views the corporation as a
legal entity and a collective of
individuals and groups.
 Social contract: a set of rules and
assumptions about behavior patterns
among various elements of society.
 The social contract between a
corporation and its stakeholders is
often based on implicit as well as
explicit agreements.
Learning 83
Managing Corporate
Stakeholders
 The covenantal ethic concept is related to
the social contract view and is also central to
a stakeholder management approach.
 The covenantal ethic focuses on the
importance of relationships, social as well as
economic, among businesses, customers, and
stakeholders.
 At a more general view, it is argued that a
corporation’s obligations include, in addition
to making a profit, acting justly, causing no
unavoidable, unjustifiable harm, and
preventing harm where possible.
Learning 84
Managing Corporate
Stakeholders
 Five broad guidelines suggested by Keith
Davis that business professionals should
follow to be socially responsible include:
 Businesses have a social role of trustee for
society’s resources
 Business shall operate as a two-way open system
with open receipt of inputs from society and open
disclosure of its operations to the public
 Social costs/benefits shall be considered before
proceeding
 The consumer shall pay for the costs of
consumption
 Businesses have responsibilities where social needs
exist
Learning 85
Managing Corporate
Stakeholders
 Issues management should be a
continuous strategic process that
involves all business and functional units.
Methods used in this process include:
 Environmental scanning
 Brainstorming
 Probability and impact matrix
 Three organizational levels at which
companies use issues management:
 Corporate level
 Functional level
 Process-oriented
Learning 86
Corporate Responsibility
Toward Consumer
Stakeholders
 Consumers may be the most important
stakeholders of corporations.
 Corporations have certain
responsibilities and duties toward
their customers and consumers in
society:
 Duty to inform
 Duty not to misrepresent
 Duty not to force or take undue advantage
 Duty to take due care to prevent any
unforeseeable injuries
Learning 87
Toward Consumer
Stakeholders
 Related rights consumers have in
their social contact with
corporations include:
 Right to safety
 Right to free and rational choice
 Right to know
 Right to be heard
 Right to be compensated
Learning 88
Toward Consumer
Stakeholders
 The free-market theory holds that the
primary aim of business is to make a
profit.
 There are several arguments regarding
the free-market theory.
 The mixed market economy perspective
include a balance between the private
property systems and the government
laws, policies, and regulations that
protect consumers and citizens.
Learning 89
Corporate Responsibility in
Advertising, Product Safety,
and Liability
 The purposes of advertising include:
 Inform customers about products and services
 Persuade customers to make purchases
 The American Association of Advertising (AAA)
has a code of ethics that help organizations
monitor their own ads.
 The Federal Trade Commission (FTC) and the
Department of Labor (DOL are federal agencies
appointed and funded to monitor and eliminate
false and misleading advertising when corporate
self-regulation is not used or fails to control
harm done to consumers.
Learning 90
and Liability
 Advertising on the Internet
presents new opportunities and
problems for consumers.
 At issue ethically is the unlimited
availability of and exposure to
explicit and other questionable
content on ads and Websites.
 FTC provides regulatory guidelines for
on-line advertising
Learning 91
and Liability
 Moral responsibility for consumers in
advertising can be viewed along a
continuum.
 Paternalism
 Illusion of free choice
 Enforcement of advertising
 Bans on ads

Learning 92
and Liability
 Arguments for advertising:
 Introduces people to and influences them
to buy goods and services
 Enables companies to be competitive
 Helps nations maintain a prosperous
economy
 Helps a nation’s balance of trade and debt
payments
 Enriches consumers’ lives
 Consumers are not ignorant and do know
the
Copyright © 2003 difference
by South-Western, a division of Thomson
Learning 93
and Liability
 Arguments against advertising:
 Cross the thin line between deception and
puffery
 Tells half-truths
 Conceals facts
 Intentionally deceive with a profit goal in
mind
 Fast food industry advertising
 Tobacco and alcohol advertising
 Ethics and advertising
 ©Advertising
Copyright 2003 by South-Western, aand
division free speech
of Thomson
Learning 94
and Liability
 Managing product safety should be
priority number one for corporations.
 The National Commission on Product
Safety (NCPS) notes that product risks
should be reasonable.
 Three steps firms can use to assess
product safety from an ethical
perspective include:
 How much safety is technically attainable?
 What is the acceptable risk level?
 Does the product meet standards?
Learning 95
and Liability
 Product liability doctrines:
 Privity
 Negligence
 Strict liability
 Absolute liability
 Two broad purposes of product liability lawsuits:
 Provide a level of compensation for injured parties
 Act to deter negligent marketing
 33 states have laws in the making to limit
liability and damages awards.
 E-commerce and product liability
Learning 96
and the Environment
 The most significant environmental problems
include:
 Toxic air pollution
 Water pollution and the threat of scarcity
 Hazardous waste and land pollution
 Causes of environmental pollution include:
 Consumer affluence
 Materialistic cultural values
 Urbanization
 Population explosion
 New and uncontrolled technologies
 Industrial activities
Learning 97
and the Environment
 A number of governmental regulatory
agencies have been created to develop
and enforce policies and laws to
protect the general and workplace
environments:
 OSHA
 CPSC
 EPA
 CEQ
Learning 98
and the Environment
 An innovative trend in new ecology ethical thinking is
linking the concepts of:
 Green marketing
 Environmental justice
 Industrial ecology
 The ethical principles of rights and duties regarding
the treatment of the environment and multiple
stakeholders are:
 Rights of future generations
 Right to a livable environment
 New assumptions and practices driving corporate
changes toward the environment include:
 International community
 Green marketing
 Environmentally friendly strategies
Learning 99
Chapter Six
Employee Stakeholders
And
The Corporation
Learning 100
Chapter Topics
1. Employee stakeholders: The workforce in
the 21st century
2. The changing social contract between
corporations and employees
3. Employee and employer rights and
responsibilities
4. Discrimination, equal employment
opportunity, and affirmative action
5. Sexual harassment in the workplace
6. Whistle-blowing versus organizational
loyalty
Learning 101
Employee Stakeholders:
The Workforce In The 21st Century
 Within the context of the “digital economy” the following
changes with employees and stakeholders occur:
 A shift to knowledge work
 The concept of a job for life is dying
 Compensation, income, and the social distribution of
benefits are shifting
 Quality of work life is not inherent in the uses of technology
 Five predicted trends in the work-life of employees
include:
 Demographics will drive a growing focus on family,
personal, and spiritual matters
 Employees will demand schedules that work for them
 Internet-age values will take deeper root
 A back-to-basics trend
 It will get harder to tell work and home lifestyles apart
Learning 102
 Several demographic trends that were
predicted have been and are being realized:
 The workforce is aging
 Managerial leadership positions are more
difficult to fill
 Women entrants are increasing
 Workforce cultures are mixing
 The education gap continues
 The level of education lags
 The number of employees with disabilities is
expanding
 Gay couples are denied health care insurance in
most companies
Learning 103
 The trends in the workforce necessitate
accommodation from managers and
employees. Moral and legal conflict will
likely increase if action is not taken with
regard to:
 Age discrimination
 Sexual harassment
 Health care provisions
 Educational challenges
 Paradigm shift toward a new work life
model
Learning 104
 The following values  “Workforce 2000”
were identified as related values
motivators for considered most
professionals: important include:
 Recognition
 Competitive pay
 Respect and dignity
 Benefits and
 Personal choice
opportunities
 Involvement at work
 A fair deal
 Pride in work
 Being valued  Quality of lifestyle
 Decent relationships  Financial security
 Self-development
 Health and wellness
Learning 105
 Generational analysis looks at
differences among world views,
attitudes, and values of generations
of Americans:
 GI generation
 Silent generation
 Baby boomers
 Generation X
 Generation Y
Learning 106
The Changing Social Contract
Between Corporations and
Employees
 The social contract that has
historically defined the
employee/employer relationship is
known as the employment-at-will
(EAW) doctrine.
 The EAW remains the cornerstone
of U.S. labor law.
 At issue is the continuing debate
over the nature of property and
property rights.
Learning 107
Employee And Employer Rights
And Responsibilities
 The ideal relationship between employer and
employees is one based on mutual respect
and trust.
 A right can be understood as a “moral claim.”
 The moral foundation for employee rights is
based on the fact that employees are
persons.
 The evolving social contract between
employers and employees still recognizes
employers’ power over physical and material
property, but the contractual relationship
aims in principle at balance, mutual respect,
integrity, and fairness.
Learning 108
 Employers are obliged to:
 Pay employees fair wages for work performed
 To provide safe working conditions
 Employees are responsible for:
 Fulfilling their contractual obligations to the
corporation
 For following the goals, procedural rules, and work
plans
 For performing productively
 Timeliness
 Avoiding absenteeism
 Acting legally and morally
 Respecting the intellectual and property rights of the
employer
Learning 109
 Major types of employee rights in
the workplace include:
 Right not to be terminated without just
cause
 Right to due process
 Right to privacy
 Right to workplace health and safety
 Right to organize and strike
 Rights regarding plant closings
Learning 110
 Employees’ right to privacy remains
one of the most debated and
controversial rights. Areas centered
around issues of privacy include:
 Technology use
 Polygraph and psychological testing
 Workplace surveillance
 Internet use
 Drug testing
 Genetic discrimination
Learning 111
Discrimination, Equal
Employment Opportunity, And
Affirmative Action
 Recently, discrimination has surfaced in a
number of categories including:
 Racial profiling
 Income disparities
 Ratio of female compensation compared to male
 Examples of discriminatory practices have
been found in:
 Recruitment
 Screening
 Promotion
 Termination
 Conditions of employment
 Discharge
Learning 112
Affirmative Action
 Title VII of the Civil Rights Act of 1964 makes
discrimination on the basis of gender, race, color,
religion, or national origin in any term, condition,
or privilege of employment illegal.
 The Civil Rights Act of 1992 extended punitive
damages to victims of employment
discrimination.
 The Age Discrimination in Employment Act
prohibits employers from discriminating against
individuals based on their age.
 The Equal Pay Act of 1963 prohibits
discriminatory payment of wages and overtime
based on gender.
Learning 113
Affirmative Action
 Affirmative action programs are a
proactive attempt to recruit applicants
from minority groups to create
opportunities for those who would be
excluded from the job market.
 Affirmative action as a doctrine is
derived from several ethical principles
that serve as bases for laws:
 Principle of justice
 Utilitarian principle
 Rights principle
Learning 114
Affirmative Action
 Reverse discrimination is alleged to occur when an
equally qualified woman or minority member is given
hiring preference over white males.
 Notable court cases that illustrate how affirmative
action and discrimination issues have been addressed
include:
 The Bakke case
 The Weber case
 The Stotts case
 The Adarand Constructors v. Pena case
 The Hopwood v. Texas case
 The Grutter v. University of Michigan Law School case

Learning 115
Sexual Harassment In The
Workplace
 Sexual harassment remains among the
most prominent civil right issues in the
workplace.
 Forms of sexual harassment include:
 Unwelcome sexual advances
 Coercion
 Favoritism
 Indirect harassment
 Physical conduct
 Visual harassment
Learning 116
Whistle-Blowing Versus
Organizational Loyalty
 DeGeorge has identified five conditions
when whistle-blowing is morally justified.
 Five instances when whistle-blowing is
not justified have been suggested.
 There have been twelve guidelines that
offer factors which should be considered
before deciding to “blow the whistle” on
an employer.
 Four managerial steps to prevent
external whistle-blowing have been
suggested.
Learning 117
Chapter Seven
The Global Environment,

Stakeholder Management,
And Multinational
Corporations
Learning 118
Chapter Topics
1. The connected global economy and
globalization
2. Capitalism: One system with different
faces
3. Multinational enterprises as
stakeholders
4. MNE guidelines for managing morality
5. Stakeholder management: Ethical
decision-making methods
Learning 119
The Connected Global
Economy And Globalization
 The global economy consists of a dynamic
set of relationships among companies,
financial markets, culture, political
ideologies, government policies, laws,
technologies, and numerous stakeholder
interests.
 Globalization involves the integration of
technology, markets, politics, cultures, labor,
production, and commerce.
 The most recent threat to economic stability
and growth is global terrorism.
Learning 120
 Some of the forces that have
accelerated globalization include:
 The end of communism
 Information technologies
 Entrepreneurships and entrepreneurs
 Free-trade and trading agreements
 The IMF and World Bank
 Growth of transnational firms
 A shift to service economies
 Global political forces
Learning 121
 Some of the major competitive success
factors driving firms in the global
economy include:
 The best talent is recruited
 High-quality, innovative products
 Just-in-time manufacturing
 Web-based technologies
 New product patents and innovation
 Mergers, acquisition, and strategic
alliances
Learning 122
 Survey results showed that the
most admired companies:
 Set more challenging goals
 Link executive compensation more
closely to the completion of goals
 More oriented toward long-term
performance
 Broader return-based methods of
measurement
 Senior leaders are more involved
 Charts the progress of its people
Learning 123
 The “dark side” of globalization
includes:
 Crime and corruption
 Drug consumption
 Massive layoffs
 Decreases in wages
 Erosion of individual nations’
sovereignty
 Westernization
Learning 124
Capitalism: One System With
Many Faces
 Capitalism can be defined as an
economic system whose major portion
of production and distribution is in
private hands, operating under what is
termed a profit or market system.
 Components and features of
capitalism include:
 Companies
 Profit motive
 Competition
Learning 125
Many Faces
 The “four faces of capitalism” include:
 Consumer capitalism
 Frontier capitalism
 Producer capitalism
 Family capitalism
 Metacapitalism is a concept that applies to the
massive business and economic transformation
resulting from the exponential growth of several
factors:
 Business-to-consumer
 E-business
 Use of the Internet
 Globalization of the world economy
 Reliance on technology
 Restructuring of companies
Learning 126
Many Faces
 American capitalism and management
involves and includes:
 Cultural context
 Sociopolitical and government context
 U.S. capitalism
 U.S. management practices
 Competitive practices have changed and
been accelerated by the following:
 Information technologies
 Communities of creation
 Alliances
Learning 127
Multinational Enterprises As
Stakeholders
 Multinational enterprises (MNEs)
are corporations that “own or
control production or service
facilities outside the country in
which they are based.”
 Common characteristics of MNEs
include:
 Operating in at least two countries
 Earning an estimated 25 to 45 percent
of revenue from foreign markets
Learning 128
Stakeholders
 Critics have raised international
concern over the ethical conduct of
MNEs in host countries:
 Not being forthright
 Not fulfilling their part of the implicit
social contract
 Not paying taxes
 Harm to physical environment

Learning 129
Stakeholders
 The companies benefit their host
countries by:
 Hire local labor
 Create new jobs
 Co-venture with local entrepreneurs and
companies
 Attract local capital to projects
 Technology transfer
 Provide business skills and learning
 Increase industrial output
 Intensify competition
 Help decrease debt and improve standard of
living
Learning 130
Stakeholders
 Six criticisms of the presence and practices
of MNEs in host and other foreign locations
include:
 Dominate and protect their core technology
 Destabilize national sovereignty
 Create a “brain drain”
 Create an imbalance of capital outflows over
inflows
 Disturb local government economic planning
 Destroy, pollute, and endanger host-country
and LDC environments
Learning 131
MNE Guidelines For
Managing Morality
 The following categories have
summaries of guidelines for MNEs:
 Employment practices and policies
 Consumer protection
 Environmental protection
 Political payments and involvement
 Basic human rights and fundamental
freedoms

Learning 132
Stakeholder Management:
Ethical International Decision-
Making Methods
 DeGeorge offers five broad
“lessons” about business ethics:
 Business ethics is here to stay
 Ethical people are necessary but not
sufficient
 Ethical structures count
 Ethical problems are industry wide
 Industry and company legal and
ethical self-regulation is necessary
Learning 133
Making Methods
 Numerous international groups that
work with and monitor MNEs
regarding human rights include:
 Amnesty International
 OECD
 International Labor Organization
 NGOs
 Transparency International
 Apparel Industry Partnership
 The Round Table
Learning 134
Making Methods
 George Enderle identified four distinctive
international ethical decision making styles
that companies often use when making
decisions abroad:
 Foreign country style
 Empire style
 Interconnection style
 Global style
 Hypernorms are principles so fundamental that
they serve to evaluate lower-order norms,
reaching to the root of what is ethical for
humanity.
Learning 135
Chapter Eight
Business Ethics
In The
Twenty-First Century
Learning 136
Chapter Topics
1. A perspective on business and
ethics since September 11, 2001
2. Emerging macro-ethical issues in
the twenty-first century
3. The technology revolution
4. The changing workforce
5. Stakeholder management and
ethics
Learning 137
A Perspective On Business And
Ethics Since September 11, 2001
 The September 11, 2001 attacks on the World Trade
Center and the Pentagon in New York and
Washington, D.C., represent a turning point for the
United States, the global community, and
globalization.
 As this crisis transforms into a new type of war,
several different issues have emerged. These issues
that have ethical, economic, legal, social, and political
consequences that are all global in scope include:
 The vulnerability of nation-states, including all
industrialized countries
 Security as a national and global priority
 Information monitoring, profiling, and privacy on an
unprecedented scale
 Religious, ideological, and racial stereotyping
Whether
Copyright© 2003 or not athis
by South-Western, is of
division and will be a “just war”
Thomson
Learning 138
 Coalition-building activity has ensued
since the attacks.
 Whatever pattern emerges from the
continually shifting coalitions, the
initial U.S. led alliance is
unprecedented and could lead to a
new chapter on globalization in terms
of trade, economic assistance, military
cooperation, and peace agreements.
Learning 139
 The scope and scale of the issue of
national and individual security are
another result of the September attack.
 Bioterrorism
 Cyberterrorism
 While measures have and continue to be
taken to provide security from physical,
bio-, and cyberterrorism, there are no
guaranteed results.
 Visionics manufactures a face-recognition
technology called FaceIt.
 Alternative to racial and ethnic profiling
Learning 140
 Related to racial profiling is the
issue of lack of tolerance for
ethnic, religious, and ideological
diversity.
 There are many questions, which
have come forth, in defending
this as a “just war.”

Learning 141
Emerging Macro-Ethical
Issues In The 21st Century
 Significant issues that involve business and
ethics in the foreseeable future include:
 First and Third World divides
 There is corruption in all countries
 MNEs could play a developmental role
 Many countries are shut out of economic and
technological benefits of the 21st century
 The human genome project, cloning, and the issue
“What is the human self?”
 Commercial and medical uses of DNA
 Genetic engineering and human cloning
 Stem cell debate
 Sanctity of life versus quality of life
Learning 142
Emerging Macro-Ethical
Issues In The 21st Century
 Significant issues that involve business and
ethics in the foreseeable future include:
 The environment as free-market commodity or
sustainable stakeholder
 The environment is being respected as a valued
and sustainable resource
 The future of globalization
 Positive developments that could emerge include:
 New alliances
 Trading partners
 Openness to religious diversity
 Integration of political adversaries
Learning 143
The Technology Revolution
And Ethics
 The technology revolution led by the Internet and
digital and wireless technologies has created
change in almost every dimension of society
including:
 Communication
 Science
 Medicine
 Politics
 Commerce
 Law
 Education
 Productivity
 Work
 Professions
Learning 144
And Ethics
 New technologies present ethical
problems and issues as well as
opportunities.
 Some issues include:
 Privacy
 Individual rights
 Personal safety
 Censorship versus free speech

Learning 145
And Ethics
 Stephen Keating suggested five
ways to solve privacy issues on the
Internet:
 Research on privacy issues is needed
 Review of government laws is required
 Clear disclosure will help
 Common sense can be used
 Fair information practices should be
created
Learning 146
The Changing Workforce
 The changing nature of the workforce and
related issues affects employers, employees,
and stakeholders.
 The American workforce continues to
experience a paradigm shift between the so-
called old and new economies.
 Areas of interest, concern, and change
include:
 The aging workforce
 Women in the workforce
 Ethnic and cultural diversity in the workforce
 Workers with disabilities
 The education gap in the workforce
Learning 147
And Ethical Navigation
 The legitimacy of U.S. business
institutions is founded on the notion that
the free-market system operates to
provide value to society and to serve the
public good.
 Issues that businesses should prioritize in
the 21st century include:
 Economic obligations
 Political obligations
 Moral obligations
 Ethical principles and practices in
business start with the top leaders.
Learning 148
 The concept of global ethics is even more
complex because people and institutions
reflecting different individual, corporate, and
societal ethical standards interact.
 Using universal ethical principles is necessary
but not always sufficient for resolving local
conflicts of interest where two or three right
ways seem to conflict.
 Resolving ethical dilemmas both locally and
internationally involves creative and critical
thinking, collaboration, and sound ethical
judgment.
Learning 149
 Key stakeholder management principles to navigate
ethics while responding to profit imperatives include:
 Choices
 The uses and limits of responsible corporate power
 Responsibility in flexible business relationships
 Negotiate and be familiar with cultural norms
 Know when not to negotiate
 Know the seven approaches for dealing with cross
cultural conflicts
 Listen to and communicate the best interest of all parties
 Separate the people from the problem
 Focus on interests, not positions
 Generate a variety of possibilities
 Insist that the result be based upon some objective
standard
Learning 150

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Chapter One

Business Ethics, The

Copyright © 2003 by South-Western, a division of Thomson

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Stakeholder And Issues

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 Identify major stakeholders

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 Businesses gain awareness but take no

proposed legislation that could affect

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Ethical Principles, Quick

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The Corporation and

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The Global Environment,

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