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Business & Society
Ethics, Sustainability, and Stakeholder Management
TENTH EDITION

ARCHIE B. CARROLL
University of Georgia

JILL A. BROWN
Bentley University

ANN K. BUCHHOLTZ
Rutgers University

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

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 Business & Society: Ethics, © 2018, 2015 Cengage Learning
Sustainability, and Stakeholder
ALL RIGHTS RESERVED. No part of this work covered by the copyright
Management, Tenth Edition
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 Brief Contents

Preface xvii
About the Authors xxv

PART 1 Business, Society, and Stakeholders 1

CHAPTER 1 The Business and Society Relationship 2
CHAPTER 2 Corporate Social Responsibility, Citizenship, and Sustainability 30
CHAPTER 3 The Stakeholder Approach to Business, Society, and Ethics 71

PART 2 Corporate Governance and Strategic Management

Issues 101
CHAPTER 4 Corporate Governance: Foundational Issues 102
CHAPTER 5 Strategic Management and Corporate Public Policy 135
CHAPTER 6 Risk, Issue, and Crisis Management 155

PART 3 Business Ethics and Leadership 183

CHAPTER 7 Business Ethics Essentials 184
CHAPTER 8 Managerial and Organizational Ethics 224
CHAPTER 9 Business Ethics and Technology 272
CHAPTER 10 Ethical Issues in the Global Arena 305

PART 4 External Stakeholder Issues 341

CHAPTER 11 Business, Government, and Regulation 342
CHAPTER 12 Business Influence on Government and Public Policy 370
CHAPTER 13 Consumer Stakeholders: Information Issues 395
CHAPTER 14 Consumer Stakeholders: Product and Service Issues 432
CHAPTER 15 Sustainability and the Natural Environment 457
CHAPTER 16 Business and Community Stakeholders 491

PART 5 Internal Stakeholder Issues 521

CHAPTER 17 Employee Stakeholders and Workplace Issues 522
CHAPTER 18 Employee Stakeholders: Privacy, Safety, and Health 551
CHAPTER 19 Employment Diversity and Discrimination 580
Cases 611
Subject Index 748
Name Index 763
iii
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 Contents

Preface xvii
About the Authors xxv

PART 1 Business, Society, and Stakeholders 1

CHAPTER 1
The Business and Society Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 Business and Society 5
1.1a Business Defined 5
1.1b Society Defined 6
1.2 Society as the Macroenvironment 6
1.3 A Pluralistic Society 7
1.3a Pluralism Has Strengths and Weaknesses 8
1.3b Multiple Publics, Systems, and Stakeholders 8
1.4 A Special-Interest Society 9
1.5 Business Criticism and Corporate Response 10
1.5a Factors in the Social Environment 10
1.5b A General Criticism of Business: Use and Abuse of Power 17
1.5c Balancing Power with Responsibility 20
1.5d Business’s Response: Concern and a Changing Social Contract 20
1.6 Focus of the Book 22
1.6a Managerial Approach 22
1.6b Business Ethics Theme 23
1.6c Sustainability Theme 23
1.6d Stakeholder Management Theme 24
1.7 Structure of the Book 24
Summary 26
Key Terms 26
Discussion Questions 27
Endnotes 27

CHAPTER 2
Corporate Social Responsibility, Citizenship, and Sustainability . . . . . . . . . . . . . . . . . 30
2.1 Corporate Social Responsibility as a Concept 31
2.1a Historical Perspectives on CSR 32
2.1b Adaptations of the Economic Model 33
2.1c Evolving Meanings of CSR 35
2.1d A Four-Part Definition of CSR 35
2.1e The Pyramid of Corporate Social Responsibility 39
2.1f CSR in Practice 42
2.2 Traditional Arguments against and for CSR 44
2.2a Arguments against CSR 44
2.2b Arguments in Support of CSR 45
2.2c The Business Case for CSR 46

iv
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 Contents v

2.3 Ages and Stages of CSR 48

2.4 CSR Greenwashing 49
2.5 Political CSR 50
2.6 Corporate Social Responsiveness 50
2.7 Corporate Social Performance 51
2.7a Carroll’s CSP Model 51
2.8 Corporate Citizenship 53
2.8a Broad and Narrow Views 54
2.8b Stages of Corporate Citizenship 54
2.8c Global Corporate Citizenship 56
2.8d CSR and Corporate Citizenship Awards by Business Media 57
2.9 The Social Performance and Financial Performance Relationship 57
2.9a Three Perspectives on the Social–Financial–Reputation Relationship 58
2.10 Sustainability—Profits, People, Planet 61
2.10a Creating Shared Value and Conscious Capitalism 62
2.11 Socially Responsible, Sustainable, Ethical Investing 63
Summary 64
Key Terms 65
Discussion Questions 66
Endnotes 66

CHAPTER 3
The Stakeholder Approach to Business, Society, and Ethics . . . . . . . . . . . . . . . . . . . . . 71
3.1 Origins of the Stakeholder Concept 72
3.1a What Is the Stake in Stakeholder? 72
3.1b What Is a Stakeholder? 72
3.2 Who Are Business’s Stakeholders? 73
3.2a Three Views of the Firm: Production, Managerial, and Stakeholder 74
3.2b Primary and Secondary Stakeholders 75
3.2c Important Stakeholder Attributes: Legitimacy, Power, Urgency 76
3.3 Stakeholder Approaches: Strategic, Multifiduciary, and Synthesis 78
3.4 Three Values of the Stakeholder Model 80
3.4a Descriptive Value 80
3.4b Instrumental Value 80
3.4c Normative Value 80
3.5 Stakeholder Management: Five Key Questions 80
3.5a Who Are the Organization’s Stakeholders? 81
3.5b What Are Our Stakeholders’ Stakes? 85
3.5c What Opportunities and Challenges Do Our Stakeholders Present? 86
3.5d What Responsibilities Does a Firm Have toward Its Stakeholders? 87
3.5e What Strategies or Actions Should Management Take? 88
3.6 Effective Stakeholder Management 91
3.6a Stakeholder Thinking 91
3.6b Developing a Stakeholder Culture 91
3.6c Stakeholder Management Capability 92
3.6d Stakeholder Engagement 93
3.6e The Stakeholder Corporation 95
3.6f Principles of Stakeholder Management 96
3.7 Strategic Steps toward Global Stakeholder Management 96
3.7a Implementation 96

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vi Contents

Summary 97
Key Terms 97
Discussion Questions 98
Endnotes 98

PART 2 Corporate Governance and Strategic Management

Issues 101
CHAPTER 4
Corporate Governance: Foundational Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
4.1 Legitimacy and Corporate Governance 102
4.1a The Purpose of Corporate Governance 104
4.1b Components of Corporate Governance 104
4.2 Problems in Corporate Governance 106
4.2a The Need for Board Independence 107
4.2b Issues Surrounding Compensation 107
4.2c The Governance Impact of the Market for Corporate Control 111
4.2d Insider Trading 112
4.3 Improving Corporate Governance 114
4.3a Legislative Efforts 114
4.3b Changes in Boards of Directors 115
4.3c Board Diversity 115
4.3d Outside Directors 116
4.3e Use of Board Committees 116
4.3f The Board’s Relationship with the CEO 117
4.3g Board Member Liability 118
4.4 The Role of Shareholders 120
4.4a Shareholder Democracy 120
4.5 The Role of the SEC 121
4.6 Shareholder Activism 122
4.6a The History of Shareholder Activism 122
4.6b Shareholder Resolutions 123
4.6c Shareholder Lawsuits 124
4.7 Investor Relations and Shareholder Engagement 124
4.8 An Alternative Model of Corporate Governance 125
Summary 127
Key Terms 128
Discussion Questions 129
Endnotes 129

CHAPTER 5
Strategic Management and Corporate Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
5.1 Strategic Management and Corporate Public Policy 135
5.1a Relationship of Ethics to Strategic Management 136
5.2 Four Key Strategy Levels 137
5.2a Four Strategy Levels Described 137
5.2b Emphasis on Enterprise-Level Strategy 138
5.3 The Strategic Management Process 143
5.3a Strategic Corporate Social Responsibility 144
5.3b Measuring Sustainable Corporate Performance 145

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 Contents vii

5.4 Public Affairs as a Part of Strategic Management 149

5.5 The Corporate Public Affairs Function Today 149
5.5a PA’s Place at the Table 150
5.5b Future of Corporate PA in the 21st Century 150
Summary 151
Key Terms 151
Discussion Questions 152
Endnotes 152

CHAPTER 6
Risk, Issue, and Crisis Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
6.1 The Relationships between Risk, Issue, and Crisis Management 156
6.2 Risk Management 156
6.2a Risk Management and Sustainability 157
6.3 Issue Management 158
6.3a A Portfolio Approach 159
6.3b Issue Definition and the Issue Management Process 159
6.3c Issue Development Process 166
6.3d Issue Management in Practice 167
6.4 Crisis Management 168
6.4a The Nature of Crises 169
6.4b Managing Business Crises 172
6.4c Crisis Communications 174
6.4d Successful Crisis Management 176
Summary 177
Key Terms 178
Discussion Questions 178
Endnotes 178

PART 3 Business Ethics and Leadership 183

CHAPTER 7
Business Ethics Essentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
7.1 The Public’s Opinion of Business Ethics 187
7.1a Are the Media Reporting Business Ethics More Vigorously? 188
7.1b Is It Society That Is Changing? 189
7.2 Business Ethics: Some Basic Concepts 189
7.2a Descriptive versus Normative Ethics 190
7.2b The Conventional Approach to Business Ethics 191
7.2c Ethics and the Law 194
7.2d Making Ethical Judgments 195
7.3 Ethics, Economics, and Law—A Venn Model 197
7.4 Three Models of Management Ethics 199
7.4a Immoral Management 199
7.4b Moral Management 201
7.4c Amoral Management 204
7.4d Two Hypotheses Regarding the Models of Management Morality 207
7.5 Making Moral Management Actionable 209
7.6 Developing Moral Judgment 209
7.6a Levels of Moral Development 210
7.6b Different Sources of a Person’s Values 213

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viii Contents

7.7 Elements of Moral Judgment 217

7.7a Moral Imagination 217
7.7b Moral Identification and Ordering 217
7.7c Moral Evaluation 217
7.7d Tolerance of Moral Disagreement and Ambiguity 218
7.7e Integration of Managerial and Moral Competence 218
7.7f A Sense of Moral Obligation 218
Summary 219
Key Terms 220
Discussion Questions 220
Endnotes 221

CHAPTER 8
Managerial and Organizational Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
8.1 Ethics Issues Arise at Different Levels 225
8.1a Personal Level 225
8.1b Managerial and Organizational Levels 226
8.1c Industry or Profession Level 227
8.1d Societal and Global Levels 227
8.2 Managerial Ethics and Ethical Principles 228
8.2a Principles Approach to Ethics 228
8.2b Ethical Tests Approach to Decision Making 237
8.3 Managing Organizational Ethics 240
8.3a Factors Affecting the Organization’s Moral Climate 241
8.3b Improving the Organization’s Ethical Culture 243
8.4 Best Practices for Improving an Organization’s Ethics 245
8.4a Top Management Leadership (Moral Management) 246
8.4b Effective Communication of Ethical Messages 249
8.4c Ethics and Compliance Programs and Officers 249
8.4d Setting Realistic Objectives 252
8.4e Ethical Decision-Making Processes 252
8.4f Codes of Ethics or Conduct 254
8.4g Disciplining Violators of Ethics Standards 255
8.4h Ethics “Hotlines” and Whistle-Blowing Mechanisms 257
8.4i Business Ethics Training 257
8.4j Ethics Audits and Risk Assessments 260
8.4k Corporate Transparency Policies 260
8.4l Board of Directors Leadership and Oversight 261
8.5 Behavioral Ethics—Toward a Deeper Understanding 262
8.6 Moral Decisions, Managers, and Organizations 264
Summary 265
Key Terms 265
Discussion Questions 266
Endnotes 266

CHAPTER 9
Business Ethics and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
9.1 The New World of Big Data 273
9.1a Social Media 273
9.1b Surveillance 274
9.2 Technology and the Technological Environment 274
9.3 Characteristics of Technology 275

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 Contents ix

9.3a Benefits, Costs, and Challenges 276

9.4 Technology and Ethics 277
9.5 Information Technology 278
9.5a E-Commerce as a Pervasive Technology 278
9.5b Ongoing Issues in E-Commerce Ethics 279
9.5c Invasion of Consumer Privacy via E-Commerce 279
9.5d The Workplace and Computer Technology 286
9.6 Biotechnology 291
9.6a Bioethics 291
9.6b Genetic Engineering 292
9.6c Genetically Modified Organisms (GMOs) 296
Summary 299
Key Terms 299
Discussion Questions 300
Endnotes 300

CHAPTER 10
Ethical Issues in the Global Arena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
10.1 Business Challenges in a Global Environment 306
10.2 Ethical Issues in the Global Business Environment 308
10.2a Questionable Marketing and Plant Safety Practices 309
10.2b Human Rights, Sweatshops, and Labor Abuses 312
10.2c Corruption, Bribery, and Questionable Payments 318
10.3 Improving Global Business Ethics 325
10.3a Balancing and Reconciling the Ethics Traditions of Home and Host Countries 326
10.3b Strategies for Improving Global Business Ethics 328
10.3c Corporate Action against Corruption 334
Summary 334
Key Terms 335
Discussion Questions 335
Endnotes 336

PART 4 External Stakeholder Issues 341

CHAPTER 11
Business, Government, and Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342
11.1 The Pendulum of Government’s Role in Business 343
11.2 The Roles of Government and Business 345
11.2a A Clash of Ethical Belief Systems 346
11.3 Interaction of Business, Government, and the Public 347
11.3a Government–Business Relationship 347
11.3b Public–Government Relationship 348
11.3c Business–Public Relationship 348
11.4 Government’s Nonregulatory Influence on Business 348
11.4a Industrial Policy 349
11.4b Privatization 351
11.4c Other Nonregulatory Governmental Influences on Business 352
11.5 Government’s Regulatory Influences on Business 354
11.5a Regulation: What Does It Mean? 355
11.5b Reasons for Regulation 355

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x Contents

11.5c Types of Regulation 357

11.5d Issues Related to Regulation 360
11.6 Deregulation 363
11.6a Purpose of Deregulation 363
11.6b The Changing World of Deregulation 363
Summary 365
Key Terms 366
Discussion Questions 366
Endnotes 366

CHAPTER 12
Business Influence on Government and Public Policy . . . . . . . . . . . . . . . . . . . . . . . . . 370
12.1 Corporate Political Participation 371
12.2 Business Lobbying 371
12.2a Organizational Levels of Lobbying 373
12.3 Corporate Political Spending 381
12.3a Arguments for Corporate Political Spending 383
12.3b Arguments against Corporate Political Spending 383
12.4 Political Action Committees 383
12.4a The Impact of Super PACs 384
12.4b Agency Issues 384
12.5 Political Accountability and Transparency 385
12.6 Strategies for Corporate Political Activity 387
12.6a Financial Performance Outcomes 388
Summary 388
Key Terms 389
Discussion Questions 389
Endnotes 390

CHAPTER 13
Consumer Stakeholders: Information Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
13.1 The Consumer Movement 396
13.1a Ralph Nader’s Consumerism 397
13.1b Consumerism Today 397
13.1c Product/Service Information Issues 399
13.1d Advertising Issues 400
13.1e Specific Controversial Advertising Issues 403
13.1f Warranties and Guarantees 417
13.1g Packaging and Labeling 418
13.1h Other Product Information Issues 421
13.2 The Federal Trade Commission (FTC) 421
13.2a The FTC in the 21st Century 422
13.2b Consumer Financial Protection Bureau 423
13.3 Self-Regulation in Advertising 424
13.3a The National Advertising Division’s Program 425
13.4 Moral Models and Consumer Stakeholders 425
Summary 426
Key Terms 426
Discussion Questions 427
Endnotes 427

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 Contents xi

CHAPTER 14
Consumer Stakeholders: Product and Service Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
14.1 Two Central Issues: Quality and Safety 433
14.1a The Issue of Quality 433
14.1b The Issue of Safety 436
14.1c Product Liability 441
14.2 Consumer Product Safety Commission 445
14.3 Food and Drug Administration 447
14.4 Business’s Response to Consumer Stakeholders 448
14.5 Customer Service Programs 448
14.6 Total Quality Management Programs 450
14.7 Six Sigma Strategy and Other Processes 451
Summary 452
Key Terms 453
Discussion Questions 453
Endnotes 454

CHAPTER 15
Sustainability and the Natural Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457
15.1 The Sustainability Imperative 458
15.2 The Natural Environment 460
15.3 A Brief Introduction to the Natural Environment 461
15.4 The Impact of Business on the Natural Environment 462
15.4a Climate Change 463
15.4b Energy 463
15.4c Water 464
15.4d Biodiversity and Land Use 465
15.4e Chemicals, Toxics, and Heavy Metals 466
15.4f Air Pollution 467
15.4g Waste Management 467
15.4h Ozone Depletion 469
15.4i Oceans and Fisheries 469
15.4j Deforestation 470
15.5 Responsibility for Environmental and Sustainability Issues 471
15.5a Environmental Ethics 471
15.5b The NIMBY Problem 472
15.6 The Role of Governments in Environmental and Sustainability Issues 473
15.6a Responses of Governments in the United States 473
15.6b International Government Environmental and Sustainability Responses 477
15.7 Other Environmental and Sustainability Stakeholders 478
15.7a Environmental Interest Groups 478
15.7b Other Sustainability Interest Groups 480
15.8 Business Environmentalism and Sustainability 482
15.8a Patagonia 482
15.8b Apple 483
15.8c CVS Health 483
15.8d Tesla 483
15.8e Business and Environmental Partnerships-Activists, NGOs, and Interest Groups 483
15.9 The Future of Business: Greening and/or Growing? 484
Summary 484

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xii Contents

Key Terms 485

Discussion Questions 485
Endnotes 485

CHAPTER 16
Business and Community Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
16.1 Community Involvement 492
16.1a Volunteer Programs 494
16.1b Managing Community Involvement 495
16.2 Corporate Philanthropy or Business Giving 496
16.2a A Brief History of Corporate Philanthropy 497
16.2b A Call for Transparency in Corporate Philanthropy 498
16.2c Giving to the “Third Sector”: The Nonprofits 499
16.2d Managing Corporate Philanthropy 503
16.3 Detrimental Impacts on Communities 508
16.3a Offshoring and Reshoring 508
16.3b Business and Plant Closings 510
Summary 514
Key Terms 515
Discussion Questions 515
Endnotes 516

PART 5 Internal Stakeholder Issues 521

CHAPTER 17
Employee Stakeholders and Workplace Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
17.1 The New Social Contract 523
17.2 Employee Engagement 525
17.3 The Employee Rights Movement 525
17.3a The Meaning of Employee Rights 526
17.4 The Right Not to Be Fired without Cause 527
17.4a Employment-at-Will Doctrine 528
17.4b Dismissing an Employee with Care 531
17.5 The Right to Due Process and Fair Treatment 532
17.5a Due Process 532
17.5b Alternative Dispute Resolution 533
17.6 Freedom of Speech in the Workplace 536
17.6a Whistle-Blowing 537
17.6b Consequences of Whistle-Blowing 539
17.6c Government’s Protection of Whistle-Blowers 541
17.6d False Claims Act 542
17.6e Management Responsiveness to Potential Whistle-Blowing Situations 544
Summary 545
Key Terms 546
Discussion Questions 546
Endnotes 547

CHAPTER 18
Employee Stakeholders: Privacy, Safety, and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . 551
18.1 Privacy in the Workplace 552
18.1a Collection and Use of Employee Information by Employers 554

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 Contents xiii

18.1b Integrity Testing 557

18.1c Drug Testing 560
18.1d Workplace Monitoring 562
18.1e Policy Guidelines on the Issue of Privacy 565
18.2 Workplace Safety 566
18.2a The Workplace Safety Problem 567
18.2b Workplace Safety Today 568
18.2c Right-to-Know Laws 568
18.2d Workplace Violence 569
18.3 Health in the Workplace 571
18.3a Smoking in the Workplace 572
18.3b The Family-Friendly Workplace 572
Summary 574
Key Terms 575
Discussion Questions 575
Endnotes 575

CHAPTER 19
Employment Diversity and Discrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580
19.1 Diversity in the Workforce 581
19.2 The Civil Rights Movement 582
19.3 Federal Laws Prohibiting Discrimination 583
19.3a Title VII of the Civil Rights Act of 1964 583
19.3b Age Discrimination in Employment Act of 1967 585
19.3c Equal Pay Act of 1963 585
19.3d Rehabilitation Act of 1973, Section 503 586
19.3e Americans with Disabilities Act 586
19.3f Civil Rights Act of 1991 591
19.3g Equal Employment Opportunity Commission 591
19.4 Expanded Meanings of Employment Discrimination 592
19.4a Disparate Treatment 592
19.4b Disparate Impact 593
19.5 Issues in Employment Discrimination 594
19.5a Inequality Persists Despite Diversity Efforts 594
19.5b Race and Ethnicity 594
19.5c Color 595
19.5d Gender 596
19.5e Other Forms of Employment Discrimination 598
19.6 Affirmative Action in the Workplace 602
19.6a The Future of Diversity Management 604
Summary 604
Key Terms 605
Discussion Questions 605
Endnotes 606

Cases 611
Subject Index 748
Name Index 763

ETHICS IN PRACTICE CASES

WORKING FOR MY CUP OR THE HOUSE? 17
IS BUSINESS POWER TOO GREAT? 19
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xiv Contents

THE SOCIALLY RESPONSIBLE SHOE COMPANY 48

BURGERS WITH A SOUL—FRESH, LOCAL, SUSTAINABLE 58
ARE PLANTS AND FLOWERS STAKEHOLDERS? DO THEY HAVE RIGHTS? 79
CHICKENS OR EMPLOYEES? WHICH IS THE MOST IMPORTANT
STAKEHOLDER? 90
SOMETHING’S ROTTEN IN HONDO 94
EXCESSIVE DIRECTOR COMPENSATION AT FACEBOOK? 113
MONITORING THE MONITORS 119
DUPONT AND SUSTAINABILITY REPORTING 148
CRISIS MANAGEMENT: WHEN TO REPENT? WHEN TO DEFEND? 175
WHAT WOULD YOU DO? 193
TO HUNT OR NOT TO HUNT—THAT IS THE QUESTION 196
IS RÉSUMÉ INFLATION AND DECEPTION ACCEPTABLE? 198
ARE PEOPLE MORE ETHICAL WHEN BEING “WATCHED?” 214
MORE SALES, LOWER ETHICS? 244
FIRED FOR CHEATING ON EMPLOYER TESTS 247
THE NEW ETHICS CODE–SIGN OR RESIGN 256
SOMETIMES ETHICS HOTLINES DON’T WORK 258
TWITTER ETHICS IN BUSINESS 275
COPYRIGHT INFRINGEMENT? 285
USING PERSONAL TECHNOLOGY IN THE WORKPLACE 287
WHOLE FOODS: GMO TRANSPARENCY OR CLEVER MARKETING? 298
IS THE FAIR TRADE MOVEMENT SUSTAINABLE? 313
HELPING FACTORIES TO PASS SWEATSHOP AUDITS—USING CHEATING
CONSULTANTS 317
VIOLATIONS OF THE FOREIGN CORRUPT PRACTICES ACT OR NOT? 324
THE MARIJUANA REGULATORY DILEMMA 358
BANNING THE BIG GULP 360
THE NRA AND THE CDC 372
DOUBLE IRISH WITH A DUTCH SANDWICH 381
WHAT DO WE TELL THE CUSTOMER? 401
SHOULD THE WORD FREE BE BANNED IN ADVERTISING? 404
DO THESE “ADVERTISING TRAPS” REPRESENT ETHICAL ADVERTISING? 406
SHOULD FOOD ADVERTISING TO CHILDREN BE BANNED? 409
RETURN FRAUD—A GROWING BUSINESS 419
THE PIRATED POPCORN 435
WAS “PINK SLIME” A VICTIM OF SOCIAL MEDIA FRENZY? 440
WATER SCORING: A WAY TO PUSH FOR BETTER WATER
STEWARDSHIP? 466
A LITTLE GREEN LIE 473
WHO FAILED TO PROTECT THE COMMUNITY IN FLINT, MICHIGAN? 475
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
 Contents xv

SLOW FASHION 480

MATTERS OF GOOD INTENTIONS 497
COMPETITION IN THE NONPROFIT WORKPLACE 507
SHOULD I SAY SOMETHING? 527
THE POCKETED PURSE 529
A WHISTLE-BLOWER’S WINDFALL 536
THE SERIAL WHISTLE-BLOWER: HAVE THE INCENTIVES GONE
TOO FAR? 538
EMPLOYEE HEALTH AND THE USE OF BIG DATA 553
CO-WORKERS VERSUS FRIENDSHIP 559
AMAZON: USING THE DIGITAL BULLETIN BOARD TO SHAME EMPLOYEES
INTO GOOD BEHAVIOR 563
SICK DAY SNOOPS 565
WHEN EXTERNAL STAKEHOLDERS ATTACK 569
WHAT IS REASONABLE ACCOMMODATION FOR PREGNANCY? 589
GENTLEMAN’S CLUB? 599
BIGOTRY IN THE BAKERY? 600
CASES
WALMART: THE MAIN STREET MERCHANT OF DOOM 613
WALMART’S LABOR PRACTICES 623
THE BODY SHOP: POSTER CHILD OF EARLY CSR MOVEMENT 630
CHIPOTLE’S STRUGGLE WITH FOOD SAFETY 642
DIRECT-TO-CONSUMER ADVERTISING FOR PILLS: IS IT ETHICAL? 646
USING EX-CONS TO TEACH BUSINESS ETHICS 648
VOLKSWAGEN’S DIESEL DECEPTION 650
UNLOCKING THE SECRETS OF THE APPLE IPHONE IN THE NAME OF
ANTITERRORISM 659
TO HIRE OR NOT TO HIRE 664
PAYDAY LOANS: A NEEDED PRODUCT OR A SCAM? 664
YOU PUNCH MINE AND I’LL PUNCH YOURS 667
PHANTOM EXPENSES 668
FAMILY BUSINESS 669
THE WAITER RULE: WHAT MAKES FOR A GOOD CEO? 669
NIKE, INC. AND SWEATSHOPS 671
COKE AND PEPSI IN INDIA: ISSUES, ETHICS, AND CRISIS MANAGEMENT 679
CHIQUITA: AN EXCRUCIATING DILEMMA BETWEEN LIFE AND LAW 685
THE BETASERON® DECISION (A) 689
SHOULD DIRECTORS SHINE LIGHT ON DARK MONEY? 691
BIG PHARMA’S MARKETING TACTICS 692
MCDONALD’S—THE COFFEE SPILL HEARD ’ROUND THE WORLD 701
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
xvi Contents

GENERAL ELECTRIC AND THE HUDSON RIVER CLEANUP 705

WHAT HAVE YOU DONE FOR ME LATELY? THE CASE OF AMAZON IN
SOUTH CAROLINA 711
EVERLANE: ETHICAL CHIC AND RADICAL TRANSPARENCY IN GLOBAL SUPPLY
CHAINS 715
NEW BELGIUM BREWING: DEFINING A BUSINESS ON SUSTAINABILITY 718
ALTRUISM VERSUS PROFIT: THE CHALLENGES OF CLEAN WATER IN
INDIA 721
SAFETY? WHAT SAFETY? 724
TARGETING CONSUMERS (AND USING THEIR SECRETS) 725
THE PERILS OF STUDENT LOAN DEBT 727
“DEAD PEASANT” LIFE INSURANCE POLICIES 730
THE CASE OF THE FIRED WAITRESS 732
AFTER-HOURS ACTIVITIES: THE CASE OF PETER OILER 734
LOCATION, LOCATION, LOCATION 736
LOOKS DISCRIMINATION AT A&F 737
TWO VETS, TWO DOGS, AND A DEADLOCK 739
ARE CRIMINAL BACKGROUND CHECKS DISCRIMINATORY? 741
TO TAKE OR NOT TO TAKE 742
TRAGEDY IN BANGLADESH—THE RANA PLAZA FACTORY COLLAPSE 742
WORKPLACE SPYING 746

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
 1 The Business and Society
CHAPTER LEARNING
OUTCOMES
After studying this
chapter, you should be
able to:
1 Define and explain
business and society as
foundational
concepts. Describe
how society is viewed
as the
macroenvironment.
2 Explain the
characteristics of a
pluralistic society.
Describe pluralism
and identify its
attributes, strengths,
and weaknesses.
3 Clarify what is a
special-interest society
and how it evolves.
4 Identify, discuss, and
illustrate the factors
leading up to business
criticism and
corporate response.
What is the general
criticism of business?
How may the balance
of power and
responsibility be
resolved? What is the
changing social
contract?
5 Make clear the major
focuses or themes of
the book: managerial
approach, business
ethics, sustainability,
and stakeholder
management.
2
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Relationship
T
he business and society relationship has generated many economic, social,
ethical, and environmental challenges over the decades. Though the busi-
ness system has served most market-based societies well, criticism of
business and its practices has become commonplace. Aided by the media persis-
tently looking for stories of conflict, this may be a reflection of the natural ten-
dency to highlight the negative and to take for granted the beneficial aspects of
the relationship. This tendency propels a focus on the stresses and strains of
business operating in society. A Bloomberg BusinessWeek article in 2016 says
that it is still “open season on big business.”1
Beginning with the Enron scandal in the early 2000s, a number of major
companies have been in the news because of their ethical violations. In the fall of
2008, a collapsing U.S. stock market and worldwide recession had a deeper and
more far-reaching impact on the world economy and began to raise questions
about the future of the business system as we have known it. In what is now
believed to be the most serious financial collapse since the 1920s, this financial
crisis centered on Wall Street and many of the large firms that historically had
been the backbone of the U.S. financial system.
The causes of the financial collapse and the ensuing economic chaos continue
to be debated. The housing bubble burst and years of lax lending standards put big
investment banks and Wall Street at the center of the collapse.2 Faced with an
unprecedented financial crisis, the federal government got into the bailout
business as Congress approved a $700 billion rescue plan3 for Wall Street
financial firms, such as Merrill Lynch, Bear Stearns, Citigroup, Lehman Brothers,
AIG, and notable industries, like the auto industry.
There was plenty of blame to go around for the financial crisis, and the finger-
pointing continues to this day. Some of those identified as guilty parties included
greedy home buyers who took on more debt than they could handle; mortgage
lenders who ceased using conventional lending standards; credit rating agencies
that did not do their job; commission-hungry brokers; builders who conspired with
crooked appraisers; and the Federal Reserve, which was accused of flooding the
market with easy money.4 Significant criticism was targeted toward Wall Street
and the businesses themselves as being central to the financial collapse. Others
claimed that capitalism itself was behind the mess because the Wall Street firms
were just doing what the capitalist system encourages. The recent movie, The Big
Short, provided a dramatic reminder of how this financial crisis unfolded.
By the fall of 2011, Big Business and the capitalistic system were targeted by a
new protest movement, which called itself “Occupy Wall Street.” The movement
reflected some of the built up discontent with the business system, which had
resulted in high unemployment and financial stress for millions. In spite of
Another random document with
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“Eh!” said the worthy man; “no—eh—no—oh, dinna, dinna ask me;
no, I canna!”
After waiting another quarter of an hour, during which the elder was
in a state of great nervous excitement, the father again came to him,
but the elder beckoned him to come out of the room. When both
were outside, the father said:
“Eh, Mr. Sommerville, the wife, puir bodie, canna bear to let her wee
Tammie be ‘liftit’ without a bit word o’ prayer; an’ she hasna gotten to
the kirk since Tammie turned badly, an’ she’ll be the better, an we’ll a’
be the better, o’ a bit prayer. It’s awfu’ heathen-like to tak’ awa’ the
bit bairn for gude an’ a’ out o’ it’s mother’s house without a word o’
comfort; dinna refuse us—we’re a’ kent [known] folk here.”
Mr. Sommerville, who was twitching his fingers until the father had
finished, said: “Oh! for ony favour dinna ask me,—I positeevely
cannot do’t in company;” then taking the father’s hand he pulled him
near him, and said with great earnestness: “I wad rather gi’e the
coffin for naething. Oh! ask the new schoolmaster.”
This was a young teacher who had lately come to Blinkbonny, and
although he was taken aback, he engaged shortly in prayer. All
present were much pleased, said that he was an uncommonly nice
lad, very obliging, and that anybody could see by his prayer that “the
root o’ the matter was in him.”
It may seem strange to add that Mr. Sommerville was
a first-rate elder; he was charitable, considerate, MODEST
upright, and helpful to many. His advices were short, WORTH.
but very “pat:” to the rash, it was, “Leisure a wee;” to
the foolish, “Mend your ways;” to the intemperate, “Do thyself no
harm;” to his apprentices or workmen when they committed
mistakes, his reproofs were not rebukes, far less reproaches, but,
“It’s a pity,” “Ye’ve gane wrang,” “That’s no’ wiselike;” the most
severe was, “That’s very stupid-like.”
Mr. Tait, the young schoolmaster above referred to, had succeeded
the good old man who had been parish teacher for nearly half a
century. He was selected from a list of applicants owing to the
excellent testimonials he presented, and had been asked to meet
with the examination committee in Mr. Walker’s house before the
appointment was finally made. He had acted for some time as
assistant in a parish school adjoining Middlemoor, and was well
known to Mr. Walker. Report said he was “after” a niece of Mr.
Walker’s.
Mr. Tait on the day of meeting was shown into the parlour beside
Mrs. Walker, the committee being in the study. He told Mrs. Walker
how nervous he was, and he looked it. She told him not to be afraid
—she would help him through. There was a roast of beef at the
kitchen fire, which she made the servant carry through the lobby, and
slowly past the door of the study; when the fragrant steam got
diffused, she opened the study door, and said, “Mr. Tait’s here.”
The other business that had occupied the committee
was very quickly despatched. Mr. Tait was called in, THE CIVIL
and Mr. Walker was telling the committee what he SERVICE
knew of Mr. Tait’s abilities and scholarship, when Mrs. EXAMINATI
Walker, after the servant had again carried the hissing ON.
roast through the lobby, half opened the study door, and gave a nod
to Mr. Walker. This, along with the appeal to the lower nature through
the sense of smell, proved irresistible. The gentleman who had been
deputed to examine the applicant did so with such haste, and put
such childish questions, that everybody saw it was a joke, for he
rattled off questions and answers as quickly as he could. Mr. Tait
never needed to utter a word.
Arithmetic,—said he. Ques. How many are six and four?—Ans. Ten,
to be sure; that will do for that.
History.—Ques. Who gave the king the most practical lessons?—
Ans. George Buchanan; right again.
Geography.—Ques. What is the largest town in the world? Ans. Why,
Biggar of course—London’s a big town, but Biggar’s Biggar.
Mathematics.—Ques. What is a simple equation? Ans. Six and half-
a-dozen.
Latin.—Ques. What is the Latin for Fish? Ans. Aqua vitæ, or
“Glenlivat.” Ques. Translate Ex nihilo nihil fit? Ans. It’s time we had
something.
General Knowledge.—Ques. What’s the best change for a wearied
teacher? Ans. Hill air, for it always makes him hilarious.
Literature.—Ques. What did John Gilpin’s wife say to him, and what
did he reply?
Ans. “The dinner waits, and we are tired;”
Says Gilpin, “So am I.”
The examination was declared satisfactory. Mr. Tait was appointed
schoolmaster of Blinkbonny. The merry company sought the dining-
room, did ample justice to Mrs. Walker’s hospitality, and drank Mr.
Tait’s good health and great success to him after that toast had been
proposed by Mr. Walker, who, in doing so, spoke a good deal of Mr.
Tait’s uncle, David Tait of Blackbrae in this parish, who will reappear
more prominently amongst the future “Bits.”
My brother-in-law, the Rev. John Macnab, had come out with the
Free Church, and was assisting Mr. Barrie at a communion season.
The sermon he preached in the evening was a most carefully
prepared one; his subject was “Heaven;” and as I do not wish to give
an opinion of my relative’s abilities, I may say that three of the elders
said it was “most beautiful,—it was like a series of dissolving views.”
It was a long sermon, and the descriptive part of it took up so much
time that there was no “application” part in it.
Old George Brown was, as he had often been on similar occasions,
my guest for the “preachin’s,” as the services at communion seasons
were called; and in these days they were abundant in number, being
two sermons on Thursday, one on Saturday, and at least one on
Monday, besides from about eleven to four and an evening service
on Sabbath.
When we got home, George astonished Mr. Macnab by the amount
of the day’s services he could repeat; and when he had given his
résumé of the evening sermon, he finished up with:
“It was really a grand sermon as far as it went. I never enjoyed a
description of heaven better. Ye told us a’thing aboot heaven except
hoo to get there; and, Maister Macnab, you’ll excuse me, my young
friend, for sayin’ that that shouldna hae been left out, for ye’ll admit
yersel’ if that’s awantin’ a’s awantin’. Ye’ll mind o’ the king’s son’s
feast? The servants didna only tell that a’thing was ready, but they
compelled them to come in.”
Mr. Macnab said to me that night as we sat together
after every other body had retired: “I’ve been criticized “THERE.”
by learned professors and doctors of divinity, by
ministers of experience and ability, by fellow-students and relatives,
but that good old man has given me more insight into what
preaching should be than all the others put together; and I hope that
as long as I live I will never, never, when delivering God’s message
to my fellow-men, forget to tell them ‘how to get there.’”
George “got there” before another communion season came round,
and with him were buried many sayings that were “like apples of gold
in pictures of silver.” Those I have tried to reproduce will remind
many men who are now far on in the journey of life of the frequent
use of Scripture language and metaphor by the men of two or three
generations ago. A tall man was a “Saul among the people;” news
were carried “from Dan to Beersheba;” a disagreeable man was “a
Mordecai at the gate;” and language which was in any way
approaching profanity,—and the standard was a rigorous one,—was
styled “part in the speech of Ashdod, and part in the Jews’
language.” Single names were also used, and to many they were
most expressive, such as an “Achan,” a “Jezebel,” a “Nathaniel,” a
“Goshen,” an “Ishmael.”
I have heard a keen politician, during the course of the election of a
member of Parliament (in the days of open voting, before the “ballot”
was introduced, when the hourly returns of the voting at the various
polling stations were made, and transmitted by swift riders from one
to another), as the numbers were summed up, ask, in order to know
the state of the poll, “Is the young man Absalom safe?” I have also
heard a very worthy elder say in the presence of a very worthy
minister, “Mary, bring out Jeroboam.” Mary produced the whisky
bottle. My teetotal friends will doubtless think this a most appropriate
name.

Mrs. Barrie had been so pleased with Dan’s attention to Nellie’s

grave, that she laid aside the first suit of clothes Mr. Barrie cast off (I
may as well tell that Bell and she between them had “turned” them),
and she was debating with herself whether to go to his house with
them, or send for him, when she met him at the manse gate. With
considerable difficulty she prevailed on him to come up to the house,
but could not induce him to come on to the front approach, much
less in by the front door.
“I’ll stand here, if you please, mem,” said Dan.
“But I wish to speak with you in the house, Mr. Corbett,
if you please,” said Mrs. Barrie. Dan grinned from ear THE
to ear at “Mr.” Corbett; he did not remember of ever WEIGHT
having been called that before, and he kept repeating, OF
HONOURS.
“Maister,—Maister, if you please—Eh, Dan, ye’ll dae
now,” laughing heartily either to or at himself. Dan seldom laughed—
it was almost a new sensation to him; but the “Maister, if you please,”
tickled him immensely, and by the time Bell had got the kitchen door
open, for she saw him halt before the window, and slap his leg, and
laugh until even the blind eye opened and yielded copious tears (so
she said), he was in a social, happy glow.
“What’s ta’en ye the day, Dan? what grand news hae ye gotten?
have ye seen the Cornel?”
Dan could not reply, but brushed past Bell, and said when he settled
a little:
“It’s naething at a’, Bell—it’s fair silliness o’ me; but Mrs. Barrie met
me at the road end and said,” here he fell a-laughing again,
—“‘Maister Corbett, if you please.’ I’m no’ used wi’ such genty
manners, an’ like mony anither fule I was laughin’ at mysel’.”
Mrs. Barrie came into the kitchen, and he laughed when she again
called him “Mr. Corbett,” and said: “Ca’ me Dan, if you please, mem;
naebody ever ca’d me Maister a’ my days afore, and it sounds very
droll—Maisterin’ me.”
“Well, Daniel, then!” said Mrs. Barrie.
“Dan, if you please, mem—just plain Dan.”
“Well, Dan!”
“Ay, that’s liker the thing,” said he.
And Mrs. Barrie spoke very nicely to him; her silver tones touched
his ear like music, and her words reached his heart as she thanked
him for what he had so beautifully done at wee Nellie’s grave; and
she prevailed on him to come into the dining-room to see a miniature
of her Nellie that a friend had painted from memory, and presented
to her. There were other pictures on the walls, mostly engravings,
which Mrs. Barrie explained so neatly, and with so much animation
and clearness, that Dan forgot himself in listening to her, and when
she had gone round the room he asked:
“What did ye say about this ane, if you please, mem? I think ye
called it the Angel’s Whisper?”
When she re-described it, he asked about another and
another. All the engravings were on suggestive “MINISTER
subjects, and Mrs. Barrie made them doubly ING
interesting by her explanations; and almost ANGELS.”
unconsciously to herself, she kept dropping into his
weary heart simple loving words of truth and peace as poor Dan
turned from one picture to another, and Mrs. Barrie followed up her
description with increasing interest to herself as well as to Dan. She
also gave him the clothes, and very sweetly counselled him to go to
the church, any church he liked, and he would hear some fine
pictures.
“There’s nane in the Blinkbonny kirks that I ever heard o’, unless it
be yon marble image on young Captain McLellan’s headstane at the
side o’ the auld kirk pulpit; an’ I aye said to Guy’s gude-faither, auld
Ritchie, that it was daftlike to hae guns and bayonets an’ swords
stuck up like stooky [stucco] images in a kirk. But I dinna ken what to
do wi’ thae fine claes [clothes]; they’re no’ the least like me.”
Dan, however, accepted them at length with a very proper bow, if
lowness is any criterion, took another look of Nellie’s miniature, and
made several bows to Mrs. Barrie as he left the dining-room.
His description of the pictures gave Bell great delight, and she
dropped in a useful word or hint now and again as he went on. Dan
ended with:
“Bell, yon picture o’ wee Nellie let’s me ken her noo, an’ I will keep
her grave snod; an’ there’s yon ane about the angel’s whisper, an’
anither ane I maun ask ye to let me see again some day. D’ye ken if
Mrs. Barrie wad haud [hold] the kirk in the dinin’-room, an’ gang o’er
yon pictures, she wad beat a’ the ministers ever I heard” (“No very
mony, after a’,” thought Dan to himself, “mair’s the pity”). “What for
do they no’ hae pictures in the kirk, an’ tell ye’ about them, like Mrs.
Barrie? I think they wad soon fill their kirks if they did that.”
Dan tried on the clothes as soon as he got home, and he scarcely
knew himself. His first remark was, “Guy, mind yersel’, or I’ll rin ye
hard for the beadleship!” His next, looking at his hands, “They’s no
like thae claes.” He then took down his fishing-rod, took his towel
with him (it was a ragged old potato bag), bought a bit of soap as he
passed through the village, sought out a quiet pool, and made
himself as clean as soap, water, and a rough towel could make him.
After this was over, “Ah, but I’m the better o’ that; I’ll do’t oftener,”
said he, and put up his fishing-rod. The best of the fish he caught
were put under Knowe Park “bass” as formerly, long after night had
fairly settled down. Dan started next day to clean his house. Some
corners needed it very badly. He did the cleaning very well
considering.
He had a strange dream the night after he had seen the pictures,
and after thinking over it and wondering about it for nearly a week,
he was driven to tell it to Bell for peace’ sake, as follows:
“I thocht I was in heaven, an’ about the first body I met
was wee Nellie. I didna ken her at first, but she kent THE
me, an’ she was that glad to see me; an’ somehow I GATES
wasna the least feared. An’ she asked me if I would AJAR.
come an’ see her mansion, an’ she took me into a
beautiful room, an’—but I couldna lay’d off till ye, so I’ll no try’t—an’ I
asked her wha gied her’t, an’ I never saw onything as bonnie as her
face, or heard onything as sweet as her voice, as she said, ‘Jesus! O
Dan, come away an’ see Him!’ ‘No,’ said I, ‘Nellie; He’s no’ for the
like o’ me.’ If ye had seen her face when she said, ‘But He is, Dan,
He is; He likes you better than a’ the gold in a’ the world.’ Then she
said, ‘I’ll let ye see mamma’s mansion.’ It was as bonnie as Nellie’s,
but it was a’ hung round wi’ pictures, an’ Mrs. Barrie was in them a’,
an’ aye some ither wi’ her—whiles ane, Nellie, or maybe Mr. Barrie,
an’ whiles folk I ken, besides folk I dinna ken; but she was aye in the
middle o’ the picture. An’ there was ane wi’ mysel’ an’ her in’t, an’ it
was something like the ‘Angel’s Whisper,’—but the angels were
awfu’ like her tae.
“An’ Nellie showed me your mansion, Bell, an’ it was braw, an’ fu’ o’
bonnie pictures just like Mrs. Barrie’s; an’ I was in some o’ them tae.
An’ I noticed that ye had on your everyday working claes—your very
commonest, and hardly ever on your Sabbath claes at a’.
“Weel, Nellie said to me, ‘Come an’ see your mansion, Dan.’ I was
kind o’ terrified, but she could mak’ me do anything she likit. Weel,
we went to what she ca’d my mansion, an’ the pictures round it were
fearsome to look at, an’ I was in the middle o’ every ane; an’ there
was ane where there were angels very like Mrs. Barrie, an’ Mr.
Barrie, an’ you, speaking to me, an’ lookin’ at me, an’ pointin’ up,—
an’ I lookit up.
“I was sae much ta’en up wi’ the pictures, I didna notice that Nellie
had gaen out; but when I saw Mrs. Barrie an’ you pointin’ up in the
picture, I lookit up, an’ in a moment Nellie comes in an’ says, ‘Here’s
Jesus;’ an’ all at once the pictures vanished, an’ the walls were as
clean an’ white as the driven snaw, an’ there was only one picture
left, an’ that was Jesus. An’ somehow He didna fear me till He cam’
out o’ the picture an’ showed me His hands, an’ there were marks in
the very middle o’ them, like as if nails had once been driven through
them; an’ he was gaun to lay His hands on me when I wakened;—
and it’s been in my head ever since, but I didna like to tell aboot it.
D’ye think it means that I shouldna wear yon fine claes? or what d’ye
think?”
Need I say that Bell was greatly struck with the dream, and did what
she could to press home the lesson it so clearly taught? But Dan
said, “Oh, but, Bell, mind He didna lay hands on me; but that was
maybe my blame, for I started back. But I’m glad I’ve tell’t you, an’ ye
can tell Mrs. Barrie if you like.”
Bell did so. And although Dan was not much changed
outwardly, he liked to speak to Bell about good things, NEVER
and gave over sundry bad habits, and went to Mr. TOO LATE
Walker’s kirk; although, poor man, he knew so little TO MEND.
about the service, that when Mr. Walker said at the
end of his sermon, “I will conclude by,” Dan set off, supposing that all
would follow very soon, and he was astonished to find that the folk
took so long to come home from the church that day. Generally his
wonder had been, “Are they oot a’ready?” as Sunday forenoon had
been a great day for Watty and his cronies meeting in Dan’s house
and garden for a crack on bull-dogs, game-cocks, and sporting
matters. But they paid this respect to religion, that they did not start
for Dan’s until the church was “in,” and left so as to be home before
the church was out.
Dan gave up keeping game fowls, but stuck to his other favourites,
and became a quieter man; but I will not enter further into his state of
mind than say that, I believe he attended the parish church, and I
was told that some time after the dream, but I cannot say as to the
precise date, he tried to put himself in the way of Mr. Scott of
Babbie’s Mill.
Mr. Scott stared to see Dan, and spoke rudely to him. Dan waited till
he was done, and then said, “Mr. Scott, there’s a slap in your hedge,
an’ the sheep’s among the corn. I’ve driven them out, and stappit
[pushed] in a bush, but if ye’ve ony stabs or palings I’ll mend it for ye
in a crack.”
“I want nane o’ yer mendings.”
“Aweel,” said Dan, “I see ye’re angry; and I can only say, Mr. Scott, if
ye’ll no’ be friends, dinna blame me. I own I spoke sair till ye, but
was you no’ first in the fault? I’m no’ seeking onything frae ye, but as
I’m an auld man I want to die in peace wi’ my neibours, so I ax yer
pardon, and gude day.”
“Die in peace!—ye’ll die in a jail, or no’ unlikely on a gallows!” said
the miller.
“Maybe,” said Dan, “but Mr. Walker was tellin’ us on Sabbath about a
deein’ thief, an’ he was made a’ richt as he was deein’; an’ maybe
Him that helpit him will help me.”
“Dan,” said the miller in astonishment, “are you gaun to the kirk
noo?”
“Ay,” said Dan,—“whiles.”
“Weel, Dan, ye seem to make a better use o’ the kirk than I dae; and
as ye was saying, we’ll let byganes be byganes. And thank ye about
the sheep.”
“Aweel,” replied Dan, “Mr. Walker whiles speaks
THE PIPE about lost sheep, and I thocht as I saw yours amang
OF PEACE. the corn, that the sooner our slaps [gaps] are filled
up the better for ourselves and for the sheep, for
some o’ them seemed swalled [swollen].”
The miller and Dan started with the requisites, mended the slap,
looked at the sheep, smoked a quiet pipe, and parted.
“That cowes [beats] a’,” said the miller.
“The canny way’s the best way, after a’,” said Dan.

Colonel Gordon was spending part of the summer with Mr. Kirkwood,
and they called at Knowe Park. The Colonel’s relationship to Mrs.
Barrie was clearly established; and a piano, and some other marks
of kindness on the Colonel’s part, were sent from Edinburgh shortly
thereafter. But unfortunately Bell was not in when the gentlemen
called, greatly to Mr. Kirkwood’s regret, and their visit had been a
short one.
Colonel Gordon was in indifferent health, and Mr. Kirkwood would
not allow him to exert or excite himself in any way, so that Bell’s
“castle in the air” was as hazy as ever; and as neither Mr. nor Mrs.
Barrie had thought much on the matter, the presents were taken as
tokens of goodwill, and politely acknowledged as such, but they
formed no ground in their minds of any, far less of such great
expectations as they did in Bell’s.
The social element in religion was greatly promoted by the soirees
and meetings of that nature held in connection with the Free Church.
Mr. Barrie used to tell of Mr. Taylor’s usual welcome when he
dropped in of an evening: “Come away, Mr. Barrie, ye’ll spend an
hour wi’ us. There’s a great deal o’ religion in sociality, an’ there’s far
ower little sociality in our religion—for that’s what I think is the
‘communion of saints,’ it’s just sociality—gude neibourship, as far as
our firesides are concerned.”
At one of our soirees—I think it was in 1850—Sir John McLelland
suddenly appeared in the Free Church lobby. Dr. Guthrie was one of
the speakers, and the church was crammed. Some young men acted
as ticket-collectors and stewards at the door, and they had been so
anxious to lose nothing of the speeches, that they did not even look
round in reply to Sir John’s question, “Could you find room for me?”
“Have you a ticket?” was the reply.
“A ticket! What sort of ticket? I’ve no ticket,” said Sir John.
“Weel, there are no bags left, and there’s no room in the church, so
you cannot get in.”
This was said without the speaker’s even turning
LOOK round to see to whom he was speaking. Luckily one
BEFORE of the deacons observed Sir John, who said to him,
YOU LEAP. “Can I not get in? This young man here spoke to me
about some bag and ticket, and said I could not get in.”
“Stupid fellow!—beg pardon!—please come this way,” was the reply.
When the poor steward looked round he was so utterly ashamed of
himself that he stood speechless. He “catch’t it” from the other
stewards, and his evening’s enjoyment was spoiled.
Sir John was shown into the vestry, and when the speaker for the
time had concluded, he came to the platform.
The surprise at his appearance added to the warmness of his
reception. It seemed as if the audience could not cease their
expressions of delight. When silence was restored, Mr. Barrie
announced Dr. Guthrie as the next speaker.
Sir John instantly rose and asked to be allowed to say a few words.
He first told the story of the children and Dr. Guthrie at the post-
office, which made Kennedy the tailor spring first on to the seat, then
stand astride on two seats, and wave his Turkey-red and white
spotted cotton handkerchief so excitedly, and cheer so loudly, that he
had to be taken down almost by force.
After Kennedy was quiet, Sir John said, “I spoke to Mr. Barrie and
several of this audience at the time of the Disruption in a way that I
now regret. My language was unguarded and unwise. I do not state
my present opinions; but I then made publicly some very strong
statements which I now wish as publicly to withdraw. Mr. Barrie, and
hundreds of ministers besides him, acted like truly Christian heroes,
and carried out their conscientious convictions in most difficult and
trying circumstances. I honour them for it. But,” turning to the
audience, “I honour you, and those who form the membership of the
Free Church of Scotland, for the noble, and liberal, and high-toned
manner in which you have recognised this heroism, and carried
forward so triumphantly the cause for which they contended. The
Free Church is in my opinion, in Scotland, the event of the century,
and I can hardly conceive that a more noble testimony to principle
could have been possible in any other country in the world.”
Then turning to Dr. Guthrie, he asked to be excused for almost
interrupting him; and to the audience for trespassing on their
patience when such a speaker as Dr. Guthrie was to follow him.
Dr. Guthrie shook hands long and warmly with Sir John, and they
had plenty of time; and when Dr. Guthrie did speak, it was with a
“forty parson” power. He excelled himself, enchained his audience,
and that soiree is a “red-letter” day in Blinkbonny Free Church
annals.
Bell said it was “awfu’ splendid,”—“just magnificent,”—“it beat
everything,”—“she just couldna say what it wasna,—it was ‘maist
awfu’, awfu’ splendid!”

THE ANGEL’S WHISPER.

By Samuel Lover.
A superstition of great beauty prevails in Ireland, that when a child smiles in its
sleep it is “talking with angels.”

A baby was sleeping, its mother was weeping,

For her husband was far on the wild raging sea,
And the tempest was swelling round the fisherman’s dwelling,
And she cried, “Dermot, darling, oh, come back to me!”

Her beads while she number’d, the baby still slumber’d,

And smiled in her face as she bended her knee;
“Oh! blest be that warning, my child, thy sleep adorning,
For I know that the angels are whispering with thee.

“And while they are keeping bright watch o’er thy sleeping,
Oh! pray to them softly, my baby, with me,
And say thou wouldst rather they’d watch o’er thy father;
For I know that the angels are whispering with thee.”

The dawn of the morning saw Dermot returning,

And the wife wept with joy her babe’s father to see;
And closely caressing her child, with a blessing,
Said, “I knew that the angels were whispering with thee.”
 CHAPTER XI.
CHANGES AT KNOWE PARK.

“But mony are the ups an’ the douns o’ life,

When the dice-box o’ fate turns tapsalteerie.”

Old Song, “Kate Dalrymple.”

T HE Blinkbonny Free Church congregation was now

a strong one,—so strong that a Dorcas Society IS
was added to its other schemes, and proved of GOLDEN.
SILENCE

great service to the members as well as to the poor.

The choice of Mrs. Clark as convener was a happy one. She
became the mainspring of the concern; and faithfully did she inquire
into all needful cases, and considerately did she administer the
funds,—in some instances so quietly, that several compared the help
they received to “Peter’s sheet that was let down from heaven;” and
in not a few cases the assistance was all the more welcome
because, although it was greatly needed, it would only have been
asked as a last resort.
The collectors had some difficulty in getting the Dorcas Society
started. One of them—a Miss Roxburgh—asked a subscription for
this purpose from Mr. Skinner, a well-to-do and successful man.
“A what kind of society do you call it,—a Dorcas Society? What in all
the world’s that?” said he.
“It’s to provide clothing and coals for the poor.”
“Then why do you not call it something else than that foreign name
Dorcas? Is it Latin, or French, or what is it?”
“Oh,” said Miss Roxburgh, “it’s called after Dorcas, the woman that
made garments for the poor. You’ll remember of her,—Tabitha or
Dorcas?”
“Not I. I never even heard of her name before,—Tabby or Dorcas, or
whatever you call her. Where did you fall in with her? I am certain it
was not in the Bible,” said Mr. Skinner firmly.
“Hoots, ye’re forgetting,” said Miss Roxburgh. “It’s in the Acts of the
Apostles. We read that she died, and they sent for Peter; and when
the poor widows showed him the clothes she had made for them, he
prayed, and she was brought to life again.”
“I read the Bible as well as you,” replied Mr. Skinner, “and I never
either heard or read of any such woman. It’s not in the Acts, I’m
certain. However, as the object is a good one, there’s a pound to
you; but for any favour give your society a decent name, for nobody
will understand what Dorcas means. Dorcas! there is not such a
person in all the Bible.”
After the first year the society ceased to be a Free Church scheme
and became a village one; but Mrs. Clark was continued at the head
of it. She made it a matter of conscience,—stuck to the principle of
helping nobody that had others—especially a “man”—that could
work for them. The distribution of coals was to her a matter of first
concern in the early winter; and, like Job, she could say, “The cause
which I knew not I searched out,” until the receivers came to speak
of them as “Mrs. Clark’s coals.” I commend this “bit” to what an old
elder used to call “my female brethren,” and am convinced if they go
and do likewise they will in no wise lose their reward.

“’Twas to share wi’ the needfu’ our blessin’s were gi’en,

And the friend o’ the puir never wanted a frien’.”

Mr. Barrie had some trouble over what was known as the
“Morisonian” controversy. I will not enter on the question itself. It
turned on the decrees of election, predestination, and what are
known as the Calvinistic doctrines.
George Hunter, a weaver, who had imbibed the
“FOOLS Morisonian ideas, had a considerable power of
RUSH IN.” putting the knotty points in a light which made the
Calvinistic theory appear very monstrous, and he
thought he could easily corner Mr. Barrie. George at length got what
he had anxiously longed for, viz. a chance to fire off the cleverly
worded sentences he had elaborated on the subject. Mr. Barrie, in
reply, quietly stated the doctrine as given in the Confession of Faith,
and quoted the Apostle Paul as his authority.
“But that’s where me an’ Paul differs,” said George.
“What!” said Mr. Barrie, “that’s where Paul and you differ? Do you not
consider the Apostle Paul as an absolute and indisputable
authority?”
“Weel,” said George, “hardly; for I believe that Paul was wrang when
he said that.”
“Paul wrong!” said Mr. Barrie. “Your faith in yourself is certainly great,
but you will excuse me for preferring Paul’s authority not only before
yours, but to the exclusion of all others,” and thus closed the
interview.
In the early summer of 1851, Colonel Gordon again came to reside
with Mr. Kirkwood, near Blinkbonny; and although still an invalid, he
was stronger and more cheerful. He had brought with him an
invalid’s chair, on which he could be wheeled about, and Dan was
employed to push it. When Colonel Gordon first saw Dan he took a
long, inquiring look at him, as if the face was not altogether an
unknown one; but he said nothing, as he thought it likely that he
must have seen him when in Blinkbonny last year. Knowe Park
became the Colonel’s favourite destination in his airings. This may
have been at first brought about by a little management on Dan’s
part; but the old soldier soon grew so fond of the children, that every
day when the weather admitted of his getting out, he landed there.
Bell liked the Colonel for his own sake. He was a fine type of the old
Indian military man,—courteous, interesting, and still handsome
despite his advanced years. Generally she had some tasty soup or
other slight refreshment ready for him, which he thoroughly enjoyed;
and he told Mrs. Barrie that her cook did more to make him well than
the doctor.
Mr. Kirkwood often referred to Bell’s potato-soup in terms which the
Colonel thought absurdly high. On one of his visits, little Gordie
asked him if he would like to see the new chickens. The boy’s
beaming face interested him, and he said,
“Certainly; will you take me to see them?”
Gordie, trained as he had been by Bell not to disturb her feathered
friends, said timidly, “I think Bell would let you see them, but she’ll
not let me touch them.”
Bell was only too glad. Dan wheeled the Colonel to
KIND the spot near the outhouses where the “birdies”
ECHOES. were. It was some time before he could so far relax
his old Indian notions about servants as to speak to
Bell; but she was so attentive and so respectful that he gradually got
into familiar conversation with her, and even referred to Mr.
Kirkwood’s constant praise of her potato-soup.
Bell, whilst keeping her proper distance, so thoroughly won his
respect that he thanked her for the kind way in which she had
studied to have something tasty for him, and complimented her on
her cookery.
“I’m glad to do all in my power for Mrs. Barrie’s friend,” said Bell, “for
she’s been a kind mistress to me; an’ although no’ rich in one
respec’, she has the best o’ a’ kind o’ riches, for she has a’ Martha’s
briskness an’ a’ Mary’s meekness. As to the pitattie-soup, it was just
what was gaun that day; but if Maister Kirkwood wad—as he’s sae
fond o’ Scotch dishes—come here till his dinner some day, Mr. and
Mrs. Barrie wad be glad to see him wi’ you, sir,—but dinna say I said
it,—and I wad try to let him taste some o’ the things he spoke o’ the
first day he was here.”
“Mr. Kirkwood would be delighted, I know: he often speaks about
these things,—offener than I care about, for when he begins there’s
no stopping of him,” said the Colonel.
“Well, sir, beggin’ your pardon for bein’ sae presumin’,” said Bell, “if
ye’ll tell me what he likes best, if it’s a plain auld Scotch dish, I’ll try
to mak’ it sae that it’ll at least bring Mr. Kirkwood in mind, as he says,
o’ auld langsyne; for a’ our denners here are auld-fashioned hamely
fare.”
“Really I could not choose for him. What do you think would be
suitable yourself? For I begin to relish the idea of seeing him sit
down to a really Scotch dinner,—he so often speaks of it. It would be
quite a treat to me.”
“Oh,” said Bell thoughtfully, “let me see,—he’s tried our potato-soup,
but there’s ‘cockie-leekie,’ an’ green pea soup, an’ ‘hotch-potch;’ and
for after that a haggis an’ collops, or a singed sheep’s head; an’ after
that pancakes, an’ rhubarb wi’ some o’ Daisy’s cream.”
Here Bell was interrupted and almost startled by Mr. Kirkwood’s
appearance and voice. He had come to call, but seeing the gathering
at the outhouses, he walked very quietly forward and had overheard
Bell’s last sentence.
“Cockie-leekie!” said he; “splendid! Sheep’s head
THE broth!—glorious! I had forgotten it. Haggis and
COMMISS pancakes!—magnificent! Collops, and what more did
ARIAT. you say?” Then turning to Colonel Gordon, “You
laughed at me for praising the potato-soup, and here
you are getting a whole catalogue of dishes. I can only say that
you’re vastly better lately if you are the length of dining on such fare.”
“It was for you, Mr. Kirkwood, that I was catering, not for myself,”
replied the Colonel; “and we must see Mrs. Barrie about the matter
first.”
Mr. Kirkwood found occasion, on their way to the house, twice or
thrice to turn round and speak to Bell (who followed at a respectful
distance) about some old-fashioned dishes, until Colonel Gordon
said:
“Really, Kirkwood, don’t bother my good friend with such questions.
You speak as if your fortune depended on them. Don’t make so
much of your lower nature.”
“It’s not that so much as old associations,” said Mr. Kirkwood; “but if
you had come into a house on a cold day and got the potato-soup
that I”—
“Stop, Kirkwood, please! Do stop,—I’ve heard it fifty times,” replied
the Colonel.
When the gentlemen got into the dining-room, they felt at a loss how
to invite themselves; but Gordie, on whose shoulder Colonel Gordon
steadied himself when entering the house, did it for them by saying:
“Mamma, Mr. Kirkwood’s coming here to dinner some day, and Bell
is going to make pancakes and nice, nice things for us all.”
“We’ll be delighted to see you, gentlemen,” said Mrs. Barrie, with a
very slight bow to each, “any day that will be most convenient.”
Tuesday week was fixed.
Mr. Kirkwood brought with him some champagne of a special
vintage, it being the only stimulant Colonel Gordon was allowed to
take, and sent it quietly by Dan to Bell. She, busy with her own
special work, looked at the bottles, and as she had not had
champagne in hand before, she said to Dan:
“Take that gold off the cork an’ that string, an’ I’ll draw’t, an’ pit it into
a crystal bottle to be ready.”
Alas! the cork flew into Bell’s face, half the wine was spilt, and she
said sharply:
“Let them draw the next that likes, I’ll no’ fash wi’t.” Thereafter Mr.
Kirkwood became his own butler for the day.
He was carried away by the cockie-leekie to which, at his own
request, he was helped three times. Everything else, especially the
pancakes, increased his delight. The others around the table
enjoyed his immense satisfaction as much as they did the dinner,
which, at least in Gordie’s case, is saying a very great deal.
Mr. Kirkwood walked alongside of Colonel Gordon’s
THE chair as they went homewards,—Dan, of course,
CORRIDOR acting as propeller. When they had reached a high
S OF TIME. part of the road, they halted to enjoy the scene and
the cool evening air. Colonel Gordon looked at Dan,
who was wiping his brow, and observing a scar on his temples, he
said:
“I’ve surely seen you long ago; it’s like a dream to me, but was it not
you that brought me a letter from my brother, many, many years
since, when I was sailing for India? You had a patch over your brow,
and you told me you had had your eye hurt.”
Dan started and said: “Please, sir, are you a brother of the Duke o’
Gordon’s,—toots, I beg your pardon,—Kenneth Gordon’s?”
“I am,” said the Colonel. “I see now it was you that brought the letter.
I was sure I knew you. Poor Kenneth, he was a daring fellow. Did
you know him well?”
“I was one o’ his oarsmen,” said Dan, “but I haena seen him since
the day he gied me the letter to gi’e to you—that was the day after
he hid the brandy an’ the tobacco in Mr. Gordon o’ the Granaries’
cellar, thinkin’ he could get it out next nicht; but the gaugers got
scent o’t, and it took us a’ oor time to get off frae Dumbarton. It was
then that I lost my e’e.”
“Brandy!—tobacco!—excisemen after him!” said Colonel Gordon,
evidently under great excitement “Gordon of the Granaries’ cellar!—
are you in earnest? I’m perfectly stunned. On your life, tell me
everything you know about this matter.”
Dan did so, and pulling from the inside of his vest an old pocket-
book, he showed a bit of dingy paper with some hieroglyphics on it
that none but the initiated could decipher.
“Ye understand, sir, the smugglers that I rowed the boat for had lots
o’ hidin’-places for their stuff, an’ this was one o’ the books they
keepit. There, now,—that anchor wi’ the five twists o’ rope round it,
means five kegs o’ brandy; that R K inside o’ the rope, means
Roseneath kirkyard; that’s your brither’s mark, B Y D and a drawing
o’ a ‘boyn’ or tub,—it was something about the Duke o’ Gordon in the
north country.”
“Yes,” said the Colonel quickly, “Bydand is part of the Gordon crest,
and Aboyne their castle;—but go on.”
“Weel, here’s for Gordon o’ the Granaries;—a castle,
“STRANGE that’s Dumbarton;—a granary wi’ a G, that’s
R THAN Gordon’s place; an’ there’s the anchor wi’ five twists,