Business Ethics

Námskeið
- HSP710F Viðskiptasiðfræði
Lýsing:
Traditionally, books on business ethics focus on CSR, companies’ relations with their stakeholders, and corporate citizenship. More recently, green credentials and sustainability have been added to that agenda. Unconventionally, this book argues that business ethics are basic to running business, not a separate subject. They are inherent to the governance and management of every organization, not an optional exercise in corporate citizenship.
Business ethics concern behaviour in business and the behaviour of business. Decisions at every level in a company have ethical implications – strategically in the board room, managerially throughout the organization, and operationally in all of its activities. The use, and sometimes the abuse, of corporate power, the process of corporate governance, raises ethical issues. Business involves risk-taking, whether decisions are at the strategic, managerial, or operational level.
Exposure to ethical risk needs to be part of every organization’s strategy formulation, policy making, and enterprise risk management. Designed to be read by both undergraduates and postgraduates, this book is a primer on ethics in business. It is also relevant to ethics courses that are now part of many legal, accountancy and other professional examinations. The book is not about moral philosophy, nor does it prescribe appropriate standards of behaviour or recommend economic, legal or political solutions.
Annað
- Höfundar: Bob Tricker, Gretchen Tricker
- Útgáfa:1
- Útgáfudagur: 2014-01-03
- Blaðsíður: 464
- Hægt að prenta út 2 bls.
- Hægt að afrita 2 bls.
- Format:ePub
- ISBN 13: 9781135075330
- Print ISBN: 9780415815017
- ISBN 10: 1135075336
Efnisyfirlit
- Cover Page
- Half Title Page
- Title Page
- Copyright Page
- Contents
- List of cases and ethical dilemmas
- List of figures and tables
- Acknowledgements
- Introduction
- Why study business ethics?
- What the book is about
- Who the book is for
- What the book will enable readers to do
- The approach to learning
- Background to the book
- Notes
- Part One Business ethics — principles
- 1 Business ethics affect everyone
- Learning outcomes
- Ethical issues arise throughout the business world
- Defining morality and ethics
- Ethics are imbedded in and reflect cultures
- The relationship between law and ethics
- Philosophical theories provide a context
- Business ethics involve choices
- A stakeholder view of business ethics
- Corporate governance and risk management involve ethics
- Why do people behave the way they do?6
- The importance of trust in business
- Cases
- Case 1.1 The employment of children in developing countries
- Case 1.2 Pharmaceutical companies and generic drugs for poor countries
- Case 1.3 The corporate culture at Goldman Sachs
- Case 1.4 Enron
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 1 Business ethics affect everyone
- 2 The evolution of business ethics
- Learning outcomes
- Business has always needed sound ethics
- Business ethics and ancient traders
- Business ethics in the 19th century
- Scandals and collapses in the 20th century
- The 21st century turned the spotlight onto business ethics
- Ethical failures and the response of business
- Cases
- Case 2.1 Fraud at Gray's Building Society
- Case 2.2 Insider dealing at Drexel Burnham Lambert
- Case 2.3 Ivan Boesky and the case of Guinness
- Case 2.4 Robert Maxwell and his media empire
- Noted
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 3 On corporate social responsibility
- Learning outcomes
- Do companies have social responsibilities?
- Balancing responsibilities between shareholders and stakeholders
- Pros and cons of corporate social responsibility
- The stakeholder perspective
- The ethical perspective
- The societal perspective
- The political perspective
- The enlightened shareholder value (ESV) perspective
- The philanthropic perspective
- Approaches to corporate social responsibility
- The practice of corporate social responsibility
- On sustainable development, the United Nations Global Compact and GRI
- Corporate vision, mission and values
- Cases
- Case 3.1 Mikhail Khodorkovsky and the Yukos case
- Case 3.2 The disaster at BP Deepwater Horizon
- Case 3.3 Royal Bank of Scotland's IT systems breakdown
- Case 3.4 Tokyo Electric Power and the disaster at Fukushima Daiichi
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 4 Business ethics and corporate governance
- Learning outcomes
- What is corporate governance?
- Board structures
- Board functions
- Corporate vision, mission, values, and strategy formulation
- Policy making
- Executive monitoring and supervision
- Accountability, ensuring compliance and transparency
- The regulation of corporate governance
- Some theoretical insights — agency, stewardship and stakeholder ideas
- Stewardship theory
- Agency theory
- Stakeholder ideas
- The roles of the board chairman and chief executive officer
- The role of the auditors, regulators and company secretary
- Changing expectations in the governance of organizations
- Cases
- ase 4.1 Google harvests private data from Street View scan
- Case 4.2 The Tyco case
- Case 4.3 The case of Lord Black
- Case 4.4 Toyota's corporate governance failings
- Toyota and its problems
- Appendix To Chapter 4
- Additional information on corporate regulation
- New York Stock Exchange listing rules
- King 1 Report (1994)
- King 2 Report (2002)
- UK Corporate Governance Code (2010)
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 5 Business ethics and enterprise risk
- Learning outcomes
- A new emphasis on corporate risk
- Levels of risk — strategic, managerial and operational
- The concept of ethical risk
- The significance of strategic ethical risk
- Moral hazards in business ethics
- The concept of enterprise risk management
- Managing risk throughout the organization
- Risk recognition
- Risk assessment
- Risk evaluation
- Determining risk strategy and policies
- Risk monitoring and reporting
- Developments in ERM
- The COSO integrated framework for ERM
- The Organization for Economic Co-operation and Development (OECD)9
- The UK Corporate Governance code (2010)
- The International Corporate Governance Network (ICGN)11
- Case
- Case 5.1 The Northern Rock Bank
- Case 5.2 Network Rail
- Case 5.3 The collapse of HBOS bank
- Case 5.4 The collapse of the Andersen partnership
- Notes
- References and further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 6 Creating a sound ethics culture
- Learning outcomes
- Different approaches to ethics management
- The compliance approach to business ethics
- The risk-reduction approach
- The satisfying-stakeholders approach
- Creating a values-orientated culture
- What makes a business decision ethical?
- Who could be affected by this decision?
- Aspects of business ethics can arise when least expected
- What effects might this decision have on others?
- What might others think about the ethics of this decision?
- What makes people act the way they do?
- Age
- Gender
- Education
- Employment experience
- Personal values and integrity
- Context-related factors
- National cultural characteristics
- Corporate cultural characteristics
- Reward systems
- Authority structure and bureaucracy
- Work roles
- Establishing an ethics culture
- Essentials for a successful ethics policy
- The vital importance of business leadership
- Ethics and stakeholder relations
- Antagonistic or collaborative relations with stakeholders
- Ethical codes for different organizations
- Corporate codes of ethics
- Codes of ethics for professional bodies
- Industry-wide codes of ethics
- Codes of ethics for groups
- Drafting an ethics code
- The management of business ethics
- On whistle-blowing and whistle-blowers
- Cases
- Case 6.1 Conflicts of interest at Her Majesty's Revenue and Customs
- Case 6.2 Board failings at Olympus Japan
- Case 6.3 Should Terry be a whistle-blower?
- Case 6.4 US company considers an acquisition in Brazil
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 7 Uniting business ethics, governance and risk
- Learning outcomes
- The 21st century's emphasis on business ethics, governance and risk
- Uniting business ethics, corporate governance and risk management
- Creating a corporate vision and mission
- Building core corporate values
- Codes of business ethics
- Rolls-Royce Global Code of Business Ethics
- TOTAL South Africa code of ethics
- Wells Fargo code of ethics and business conduct
- Preventing bribery and corruption
- The US Foreign Corrupt Practices Act (1977)14
- The OECD Anti-Bribery Convention (1997)
- Hong Kong Prevention of Bribery Ordinance (1997)17
- The UN Convention against Corruption (2004)18
- China's bribery blacklist (2009)
- UK Bribery Act (2010)19
- Other anti-bribery and corruption initiatives
- Cases
- Case 7.1 Shell Oil, the Nigerian authorities and the Ogoni people
- Case 7.2 Lehman Brothers Inc
- Case 7.3 Questionable behavior at News International
- Case 7.4 Alleged vote-rigging at Pacific Century Cyber Work, Hong Kong
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 8 Business ethics in finance
- Learning outcomes
- What is involved in business finance
- Ethics in financial strategy
- Leverage/gearing strategies
- Anti-predator strategies
- Share price protection strategies
- Tax avoidance strategies
- Ethical relationships with investors in public companies
- Present reality — the separation of ownership from control
- Insider dealing and trading
- Ethical investment and ethical funds
- The UN Principles for Responsible Investment
- Money laundering, combating global crime and terrorism
- Ethical relationships with shareholders in non-listed companies
- Ethical issues in groups of companies
- Ethical issues in government-controlled companies
- Ethics in family firms
- The management of shareholder relations
- Ethical relationships with non-equity sources of finance
- Ethical challenges for independent outside auditors
- Close relationships with clients affecting independence
- Cross-selling consulting services
- The market domination of the ‘big four'
- Auditing failing companies
- Is accountancy a profession or a business?
- Ethical relationships with regulators
- Ethics and credit-rating agencies
- Ethics in financial management
- Ethics in financial operations
- Cases
- Case 8.1 Bankers criticized in Farepak collapse
- Case 8.2 Spoofing at Swift Trade
- Case 8.3 JPMorgan Chase and the Voldemort black hole
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 9 Ethics in business operations
- Learning outcomes
- Ethical issues in procurement
- Suppliers as stakeholders
- Ethical issues with suppliers
- Ethical sourcing, fair trade and sustainable consumption
- Ethical aspects of business operations and information technology
- Ethics in product technology
- Ethics in research and development
- Ethics in manufacturing technology
- Ethics in information technology
- Ethical issues in marketing and market research
- Customers and consumers as stakeholders
- Consumer activism
- From caveat emptor to consumer protection
- Ethical issues in market communications
- Misleading and false descriptions
- Ethical issues in advertising
- Ethical issues in pricing
- Customer boycotts
- Ethical issues in market research
- Individuals‘ right to privacy
- Coping with international sanctions
- Competitors as stakeholders
- Industrial espionage
- Negative advertising
- Anti-competitive behavior
- Ethical challenges of the global market
- On bribery and corruption around the world
- Cases
- Case 9.1 The loss of a Nimrod aircraft-the ethical culture at BAE systems
- Case 9.2 Should Jean-Paul accept his friend's proposal?
- Case 9.3 HP and the Autonomy acquisition
- Case 9.4 Food safety in Taiwan
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 10 Business ethics and employees
- Learning outcomes
- Employees as stakeholders
- Contract and commitment in the employee relationship
- Risks in the employer-employee relationship
- Employers' relations with employees
- Employees' relations with employers
- Employees' duty to employer — legal and moral
- Senior management and directors' remuneration
- Employment and human rights
- The right to work
- National cultures and moral values
- Cases
- Case 10.1 Foxconn and Apple13
- Case 10.2 Drug testing of employees
- Case 10.3 Employee rights to privacy
- Case 10.4 Construction company faces competition and corruption
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 11 Business ethics, society and the state
- Learning outcomes
- What we mean by society
- Societal organizations as stakeholders in business
- Co-operative partnerships between companies and societal stakeholders
- Ethical issues in relations between business and society
- Identifying societal stakeholders and their interests
- Societal stakeholders' tactics — indirect and direct action
- The state as a business stakeholder
- Government representing society's interests
- Government as regulator of business
- Government as facilitator of business
- Government as player on the business stage
- Ethical issues in government — business relations
- Legitimacy, accountability, and influence
- Lobbying and pressure groups to influence government action
- Business staff advising government on policy or regulation
- Financing political parties and candidates to obtain their support
- Privatization and deregulation
- Globalization and business-government relations
- The power of multinational corporations
- The influence of meta-state organizations
- Cases
- Cases 11.1 When Kraft acquires Cadbury promises melt
- Case 11.2 Waste Management — the crown jewel for Andersen
- Case 11.3 Southern Cross Healthcare Group
- Case 11.4 Chiquita goes bananas
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- 12 The future of business ethics
- The essence of business ethics
- Business ethics provide the bedrock on which sound business practices are built
- Business ethics are concerned with relationships with the stakeholders of a business
- Business ethics apply to every organizational level
- Business ethics lie at the heart of corporate governance
- Business ethics usually call for the balancing of risk
- Every organization develops an ethics culture
- Corporate social responsibility has (CSR) become an essential element of business ethics
- Environmental protection and sustainability have become goals in business ethics
- Globalization is amplifying challenges in business ethics
- Why business ethics have become so important
- The power of business oligarchies
- Frontier issues in business ethics
- Gender diversity
- Excessive executive remuneration
- Aggressive tax avoidance
- The role and responsibilities of auditors8
- Penalties for ethical failure
- Stakeholders' short-term or long-term interests
- Rethinking the role of business in society
- Limited liability — a privilege not a right
- Some final thoughts
- Personal values in business ethics
- The need for a new paradigm for the corporation
- Cases
- Case 12.1 Aggressive tax avoidance
- Case 12.2 Barclays Bank and the LIBOR rate-rigging scandal
- Case 12.3 GOME retail challenges in China
- Case 12.4 Quotas for women directors
- Notes
- Further reading
- Useful websites
- Projects and exercises
- Self-test questions
- The essence of business ethics
- Answers to self-examination questions
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
- Chapter 5
- Chapter 6
- Chapter 7
- Chapter 8
- Chapter 9
- Chapter 10
- Chapter 11
- Chapter 12
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