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CHAPTER OVERVIEW
Chapter Two explains the fundamentals of business ethics and social responsibility. It also provides a
framework that allows students to engage with ethics and social responsibility material. This framework is
important because it takes away students’ tendency to believe questions of ethics are simply matters of
opinion. Consider asking your students to use the “WPH framework” throughout the course.
LEARNING OBJECTIVES
After reading this chapter, students will be able to answer the following questions:
“Smoke & Mirrors: Tobacco Companies Have Been Steadily Adding More
Nicotine to Cigarettes to Make Them More Addictive, Especially to
Teenagers.”
Apply the WPH framework to the decisions tobacco companies are
making.
Is it “socially responsible” for tobacco companies to add nicotine to
cigarettes?
Should legal rules provide additional protections to vulnerable
consumers, such as teenagers?
What are business Ethics is the study and practice of decisions about what is good or right.
ethics and the social
responsibility of Business ethics is the application of ethics
business? to special problems and opportunities
experienced by businesspeople. An example of a
business ethics question: Is the company in the Case Opener doing
the right thing when it attempts to reduce the costs of advertising by
not listing all possible complications of the medicine for the
consumer? As explained later in this chapter there are several ways of
evaluating an ethical decision, for example, the Golden Rule, the
Public Disclosure test, or the Universalization Test. One reasonable
answer, thus, is can be provided by the Golden Rule. Presumably, if
Dynamic Business Law, 3e 2-1
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Teaching tip: How are the concepts of ethics and social responsibility
different? Do they overlap?
How are business law The legality of the decision is the minimal standard that must be met.
and business ethics
related? United States of America v. Alfred Caronia (briefed below) compares what is
legal with what is ethical. Ethics presumes obedience to law.
How can we use the The WPH framework provides practical steps for responding to an ethical
WPH framework for dilemma.
ethical business
decisions? W: Whom would the decision affect?
o stakeholders: assorted groups of people affected by the firm's
decisions, e.g., owners or shareholders, employees, customers,
management, general community, future generations.
o interests of stakeholders will sometimes be in common and will
sometimes conflict.
The Case Nugget in this section involving Maria Lopez
provides a useful example of how multiple stakeholders
are affected by a business decision. The stakeholders
include in this example include the motor suppliers, the
CEO, management, and depending on the motor supplier
chosen, the workers for the motor suppliers that are not
transacted with.
P: Purpose—What are the ultimate purposes of the decision?
o Which values are being upheld by the decision?
o Values are positive abstractions that capture our sense of what is
good or desirable.
o Four important values often influence business decisions: freedom
(to act without restriction from rules imposed by others), security
(to be safe from those wishing to interfere with your interests),
justice (to receive the products of your labor), and efficiency (to
get the most from a particular output).
H: How do we make ethical decisions?
o We use classical ethical guidelines, such as these:
o The Golden Rule—“Do unto others as you would have done to
you."
o Public Disclosure Test—Suppose your decision would be
published in the newspaper. (Our actions are in the open rather
than hidden.)
o Universalization Test—If I take action X, were others to follow
my example, would the world be a better place?
o The Case Nugget on Tyson Foods’ Bribery Charges
provides a useful example of the way the Universalization
Test can serve as a guide in making ethical decisions. In
this case, Tyson Foods was paying bribes to pass quality
inspections. But, foods that are low in quality have to
potential to cause diseases, like salmonella, in consumers.
Thus, by circumventing safety inspections, Tyson Foods
was endangering the health of their consumers. One
would be hard pressed to argue that the world is a better
place as a result of Tyson Foods’ bribes.
Teaching tip: Choose a current ethical dilemma from the newspaper and ask
students to apply the WPH framework to the dilemma.
Teaching tip: Ask students how specific theories of business ethics are
integrated into the WPH framework.
JUPON
« Quand la Reine du ciel posa le pied sur le sol, c’est sur cette
pierre qu’elle le posa. » Il faut croire qu’elle était fatiguée du voyage,
car elle pesa lourdement.
Comme bien vous le supposez, les Tolédains furent
excessivement flattés de cette bonne visite. Mais dans l’impossibilité
de la lui rendre ils ont tenu à lui prouver leur gratitude, et par de
petits cadeaux entretenir cette amitié distinguée.
Dans une chapelle belle comme un rêve des Mille et une Nuits,
ils parèrent leur Vierge comme jamais sultan amoureux ne para
l’odalisque chérie. Ils lui achetèrent les plus riches écrins, la plus
somptueuse des garde-robes. Certaines de ces jupes sont chargées
de pierreries d’une valeur de plusieurs millions de réaux. A chaque
fête de l’année, on renouvelle sa toilette, on lui change de robe, de
diadème, de boucles d’oreilles, de bagues, de collier.
Le grand luxe des dames espagnoles consistant principalement
en bagues, il est tout naturel que la Dame du Paradis en soit
chargée.
Vous avouerez avec moi que les bons Tolédains ne pouvaient
mieux faire les choses et montrer plus décemment combien ils
étaient sensibles aux excellents procédés de la Mère de Dieu.
En m’extasiant devant cette splendide toilette, l’idée me vint de
demander si le trousseau était complet, si enfin en lui changeant de
robe on lui changeait aussi de chemise.
Le sacristain que j’interrogeai timidement me répliqua, indigné de
mon doute :
« Une chemise ! certainement elle a une chemise, et toute brodée
de fleurs d’argent.
— Ah !
— Oui, monsieur, et je vous prie de croire qu’elle est aussi propre
que le reste. »
Le reste ! quel reste ? Le fonctionnaire avait une mine si
rébarbativement dévote que je n’osai pousser plus loin mes
investigations.
A côté d’une aussi somptueuse Vierge, le pauvre Jésus fait triste
figure, sur sa vieille croix de bois, affublé de son jupon qu’on
change, j’espère, aussi quelquefois.
Que n’est-il venu rendre visite, comme sa mère, à la cathédrale
de Tolède !
Devant cet inconvenant jupon, je me suis remémoré le mot de
Diderot : « L’indécent n’est pas le nu, mais le troussé, » car il me
semble placé là tout exprès pour donner une furieuse envie aux
curieuses petites Espagnoles de le trousser pour voir ce qu’il y a
dessous.
Ce jupon, dont on affuble non seulement Jésus, mais les deux
larrons qui le flanquent, est un obstacle sérieux à l’investigation que
citait Fra Gabriele de Barletta, l’une des lumières de la chaire au
quinzième siècle, et dans les sermons macaroniques duquel la
Fontaine tira, dit-on, sa fable des Animaux malades de la peste.
Prêchant à Naples pendant un carême, il raconta aux dévotes
extasiées que la belle Samaritaine reconnut Jésus-Christ à trois
choses : son vêtement râpé, sa barbe blonde et sa circoncision.
Voilà qui était pousser un peu loin l’examen !
XXIII
LES BONNES LAMES DE TOLÈDE