Expert Answer:Ethical Challenges Product safety and Quality Toyo

  

Solved by verified expert:PLEASE USE THE ATTACHED BOOK.100 pts. Ethical Reflection Essay: Students are required to write a 3-5 page essay .Organize your thoughts carefully since you need to express yourself concisely.Essays should be double-spaced using Times New Roman 12-pt font with one-inch page margins.Ethical Challenges In this essay, pick one of the ethical challenges we have discussed in class (e.g., sexual harassment, customer privacy, etc.)Pick a real-life example from current headlines or from any of the historical examples we have discussed in class.In your essay, you should describe how the organization responded and address the options you believe were available to the organization to prevent the ethical challenge from occurring.Which option would you have recommended? Defend your choice with examples.
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MANAGING BUSINESS ETHICS
Straight Talk about How To Do It Right
Sixth Edition
~
LINDA KLEBE TREVINO
Distinguished Professor of Organizational Behavior and Ethics
Smeal College of Business
The Pennsylvania State University
KATHERINE A. NELSON
Instructor
Fox School of Business
Temple University
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This book was set in 10/12 Times Roman by Thomson Digital and printed and bound by Courier Westford. The cover
was printed by Courier Westford.
1
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Library of Congress Cataloging-in-Publication Data
Trevi~no, Linda Klebe.
Managing business ethics: straight talk about how to do it right/Linda Klebe Trevi~
no, Katherine A. Nelson.—
Sixth edition.
pages cm
Includes bibliographical references and index.
ISBN 978-1-118-58267-1 (pbk.)
1. Business ethics. 2. Business ethics–Case studies. I. Nelson, Katherine A. II. Title.
HF5387.T734 2014
1740 .4–dc23
2013024205
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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BRIEF CONTENTS
SECTION I
CHAPTER 1
INTRODUCTION
INTRODUCING STRAIGHT TALK ABOUT MANAGING
BUSINESS ETHICS: WHERE WE’RE GOING AND WHY
2
SECTION II ETHICS AND THE INDIVIDUAL
CHAPTER 2
CHAPTER 3
CHAPTER 4
DECIDING WHAT’S RIGHT:
A PRESCRIPTIVE APPROACH
38
DECIDING WHAT’S RIGHT:
A PSYCHOLOGICAL APPROACH
70
ADDRESSING INDIVIDUALS’
COMMON ETHICAL PROBLEMS
110
SECTION III MANAGING ETHICS IN THE ORGANIZATION
CHAPTER 5
ETHICS AS ORGANIZATIONAL CULTURE
CHAPTER 6
MANAGING ETHICS AND LEGAL COMPLIANCE
CHAPTER 7
MANAGING FOR ETHICAL CONDUCT
CHAPTER 8
ETHICAL PROBLEMS OF MANAGERS
150
207
251
288
SECTION IV ORGANIZATIONAL ETHICS AND SOCIAL RESPONSIBILITY
CHAPTER 9
CORPORATE SOCIAL RESPONSIBILITY
318
CHAPTER 10 ETHICAL PROBLEMS OF ORGANIZATIONS 351
CHAPTER 11 MANAGING FOR ETHICS AND SOCIAL RESPONSIBILITY
IN A GLOBAL ENVIRONMENT
INDEX
400
447
iii
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CONTENTS
PREFACE
XIII
ACKNOWLEDGMENTS
XVII
SECTION I
INTRODUCTION
CHAPTER 1
1
INTRODUCING STRAIGHT TALK ABOUT MANAGING
BUSINESS ETHICS: WHERE WE’RE GOING AND WHY
Introduction 2
The Financial Disaster of 2008 4
Borrowing Was Cheap 4
Real Estate Became the Investment of Choice 5
Mortgage Originators Peddled “Liar Loans” 5
Banks Securitized the Poison and Spread it Around 6
Those Who Were Supposed to Protect Us Didn’t 7
Moving Beyond Cynicism 9
Can Business Ethics Be Taught? 14
Aren’t Bad Apples the Cause of Ethical Problems in Organizations? 14
Shouldn’t Employees Already Know the Difference between Right and Wrong?
Aren’t Adults’ Ethics Fully Formed and Unchangeable? 16
This Book is about Managing Ethics in Business 19
Ethics and the Law 21
Why Be Ethical? Why Bother? Who Cares? 21
Individuals Care about Ethics: The Motivation To Be Ethical 22
Employees Care about Ethics: Employee Attraction and Commitment 23
Managers Care about Ethics 24
Executive Leaders Care about Ethics 25
Industries Care about Ethics 26
Society Cares about Ethics: Business and Social Responsibility 26
The Importance of Trust 27
The Importance of Values 29
How This Book Is Structured 30
Conclusion 31
Discussion Questions 32
2
15
v
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CONTENTS
Exercise 33
Your Cynicism Quotient
Notes 34
33
SECTION II
ETHICS AND THE INDIVIDUAL
CHAPTER 2
37
DECIDING WHAT’S RIGHT:
A PRESCRIPTIVE APPROACH
38
Ethics and the Individual 38
Ethical Dilemmas 38
Prescriptive Approaches to Ethical Decision Making in Business
Eight Steps to Sound Ethical Decision Making in Business 51
Practical Preventive Medicine 58
Conclusion 61
Discussion Questions 61
Exercise 62
Clarifying Your Values 62
Introducing the Pinto Fires Case 63
Case: Pinto Fires 63
Short Cases 68
Notes 68
CHAPTER 3
DECIDING WHAT’S RIGHT:
A PSYCHOLOGICAL APPROACH
39
70
Ethical Awareness and Ethical Judgment 70
Individual Differences, Ethical Judgment, and Ethical Behavior 74
Ethical Decision-Making Style 75
Cognitive Moral Development 76
Locus of Control 83
Machiavellianism 84
Moral Disengagement 85
Facilitators of and Barriers to Good Ethical Judgment 87
Thinking about Fact Gathering 87
Thinking about Consequences 88
Consequences as Risk 89
Thinking about Integrity 90
Thinking about Your Gut 92
Unconscious Biases 93
Emotions In Ethical Decision Making 94
Toward Ethical Action 96
Revisiting the Pinto Fires Case: Script Processing and Cost-Benefit Analysis
Cost-Benefit Analysis 102
Conclusion 104
100
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CONTENTS
Exercise 104
Understanding Cognitive Moral Development
Discussion Questions 105
Short Case 106
Notes 106
CHAPTER 4
104
ADDRESSING INDIVIDUALS’
COMMON ETHICAL PROBLEMS
110
Identifying Your Values—and Voicing Them 111
People Issues 113
Discrimination 114
Harassment, Sexual and Otherwise 118
Conflicts of Interest 122
What Is It? 122
How We Can Think about This Issue 124
Why Is It an Ethical Problem? 125
Costs 125
Customer Confidence Issues 126
What Is It? 126
How We Can Think about This Issue 130
Why Is It an Ethical Problem? 130
Costs 130
Use of Corporate Resources 131
What Is It? 131
How We Can Think about This Issue 135
Why Is It an Ethical Problem? 136
Costs 136
When all Else Fails: Blowing the Whistle 136
When Do You Blow the Whistle? 139
How to Blow the Whistle 140
Conclusion 144
Discussion Questions 145
Short Cases 145
Notes 147
SECTION III
MANAGING ETHICS IN THE ORGANIZATION
CHAPTER 5
149
ETHICS AS ORGANIZATIONAL CULTURE
Introduction 150
Organizational Ethics as Culture 151
What Is Culture? 151
Strong versus Weak Cultures 151
150
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How Culture Influences Behavior: Socialization and Internalization 152
Ethical Culture: A Multisystem Framework 153
Alignment of Ethical Culture Systems 154
Ethical Leadership 156
Executive Leaders Create Culture 156
Leaders Maintain or Change Organizational Culture 157
Other Formal Cultural Systems 165
Selection Systems 165
Values and Mission Statements 167
Policies and Codes 168
Orientation and Training Programs 170
Performance Management Systems 171
Organizational Authority Structure 174
Decision-Making Processes 177
Informal Cultural Systems 178
Role Models and Heroes 179
Norms: “The Way We Do Things around Here” 180
Rituals 181
Myths and Stories 181
Language 182
Organizational Climates: Fairness, Benevolence,
Self-Interest, Principles 184
Developing and Changing the Ethical Culture 185
How an Ethical Culture Can Become an Unethical Culture 186
Becoming a More Ethical Culture 187
A Cultural Approach to Changing Organizational Ethics 189
Audit of the Ethical Culture 190
A Cultural Systems View 190
A Long-Term View 191
Assumptions about People 191
Diagnosis: the Ethical Culture Audit 191
Ethical Culture Change Intervention 193
The Ethics of Managing Organizational Ethics 195
Conclusion 195
Discussion Questions 195
Case: Culture Change at Texaco 196
Case: An Unethical Culture In Need of Change: Tap Pharmaceuticals 198
Case: “Bad to the Bone” 200
Notes 202
CHAPTER 6
MANAGING ETHICS AND LEGAL COMPLIANCE
Introduction 207
Structuring Ethics Management 208
Making Ethics Comprehensive and Holistic
211
207
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CONTENTS
Managing Ethics: The Corporate Ethics Office 211
Ethics and Compliance Officers 211
The Ethics Infrastructure 213
The Corporate Ethics Committee 214
Communicating Ethics 215
Basic Communications Principles 215
Evaluating the Current State of Ethics Communications 218
Multiple Communication Channels for Formal Ethics Communication 220
Interactive Approaches to Ethics Communication 222
Mission or Values Statements 225
Organizational Policy 226
Codes of Conduct 227
Communicating Senior Management Commitment to Ethics 229
Formal and Informal Systems to Resolve Questions and Report Ethical Concerns
Using the Reward System to Reinforce the Ethics Message 238
Evaluating the Ethics Program 239
Surveys 240
Values or Compliance Approaches 241
Globalizing an Ethics Program 242
Conclusion 245
Discussion Questions 245
Short Case 246
Appendix: How Fines Are Determined under the U.S. Sentencing Guidelines 247
Notes 249
CHAPTER 7
MANAGING FOR ETHICAL CONDUCT
251
Introduction 251
In Business, Ethics is about Behavior 251
Practical Advice for Managers: Ethical Behavior 252
Our Multiple Ethical Selves 252
The Kenneth Lay Example 253
The Dennis Levine Example 255
Practical Advice for Managers: Multiple Ethical Selves 255
Rewards and Discipline 256
People Do What Is Rewarded and Avoid Doing What Is Punished 256
People Will Go the Extra Mile to Achieve Goals Set by Managers 257
How Goals Combined with Rewards Can Encourage Unethical Behavior
Practical Advice for Managers: Goals, Rewards, and Discipline 259
Recognize the Power of Indirect Rewards and Punishments 260
Can Managers Really Reward Ethical Behavior? 262
What About the Role of Discipline? 263
Practical Advice for Managers: Discipline 265
People Follow Group Norms 266
“Everyone’s Doing It” 266
Rationalizing Unethical Behavior 266
258
235
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Pressure to Go Along 267
Practical Advice for Managers: Group Norms 267
People Fulfill Assigned Roles 268
The Zimbardo Prison Experiment 269
Roles at Work 270
Conflicting Roles Can Lead to Unethical Behavior 271
Roles Can Also Support Ethical Behavior 271
Practical Advice for Managers: Roles 272
Obedience to Authority: People Do What They’re Told 272
The Milgram Experiments 273
Obedience to Authority at Work 275
Practical Advice for Managers: Obedience to Authority 275
Responsibility is Diffused in Organizations 275
“Don’t Worry—We’re Taking Care of Everything” 276
Diffusing Responsibility in Groups 276
Diffusing Responsibility by Dividing Responsibility 277
Diffusing Responsibility by Creating Psychological Distance 278
Practical Advice for Managers: Personal Responsibility 279
Conclusion 280
Am I Walking My Ethical Talk? 280
Discussion Questions 281
Case: Sears, Roebuck, and Co.: The Auto Center Scandal 281
Short Case 284
Notes 285
CHAPTER 8
ETHICAL PROBLEMS OF MANAGERS
Introduction 288
Managers and Employee Engagement 288
Managing the “Basics” 291
Hiring and Work Assignments 291
Performance Evaluation 292
Discipline 295
Terminations 297
Why Are These Ethical Problems? 299
Costs 299
Managing a Diverse Workforce 300
Diversity 301
Harassment 302
Family and Personal Issues 304
Why Are These Ethical Problems? 306
Costs 306
The Manager as a Lens 306
The Buck Stops with Managers 307
Managers Are Role Models 309
288
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CONTENTS
Managing Up and Across 310
Honesty Is Rule One 311
Standards Go Both Ways 312
Conclusion 313
Discussion Questions 313
Short Cases 314
Notes 315
SECTION IV
ORGANIZATIONAL ETHICS AND SOCIAL RESPONSIBILITY
CHAPTER 9
CORPORATE SOCIAL RESPONSIBILITY
317
318
Introduction 318
Why Corporate Social Responsibility? 318
Types of Corporate Social Responsibility 325
Economic Responsibilities 325
Legal Responsibilities 326
Ethical Responsibilities 326
Philanthropic Responsibilities 327
Triple Bottom Line and Environmental Sustainability 330
Is Socially Responsible Business Good Business? 334
The Benefit of a Good Reputation 334
Socially Responsible Investors Reward Social Responsibility 335
The Cost of Illegal Conduct 335
The Cost of Government Regulation 337
What the Research Says about Social Responsibility and Firm Performance
Being Socially Responsible Because It’s the Right Thing to Do 342
Conclusion 344
Discussion Questions 344
Case: Merck and River Blindness 345
Short Case 346
Notes 347
CHAPTER 10 ETHICAL PROBLEMS OF ORGANIZATIONS
Introduction 351
Managing Stakeholders 352
Ethics and Consumers 353
Conflicts of Interest 354
Product Safety 362
Advertising 367
Ethics and Employees 372
Employee Safety 372
Employee Downsizings 377
351
339
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CONTENTS
Ethics and Shareholders 380
Ethics and the Community 385
Why Are These Ethical Issues? 388
Costs 388
Conclusion 389
Short Cases 390
Discussion Questions 395
Notes 395
CHAPTER 11 MANAGING FOR ETHICS AND SOCIAL
RESPONSIBILITY IN A GLOBAL ENVIRONMENT
400
Introduction 400
Focus on the Individual Expatriate Manager 401
The Difficulties of Foreign Business Assignments 401
The Need for Structure, Training, and Guidance 401
Foreign Language Proficiency 402
Learning about the Culture 402
Recognizing the Power of Selective Perception 404
Assumption of Behavioral Consistency 405
Assumption of Cultural Homogeneity 405
Assumption of Similarity 406
How Different Are Ethical Standards in Different Cultures—Really? 413
Development of Corporate Guidelines and Policies for Global Business Ethics
The Organization in a Global Business Environment 418
Deciding to Do Business in a Foreign Country 419
Development of a Transcultural Corporate Ethic 426
Conclusion 431
Discussion Questions 431
Short Case 432
Case: Selling Medical Ultrasound Technology in Asia 432
Case: Google Goes to China 436
Notes 441
INDEX
447
414
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PREFACE
WHY DOES THE WORLD
NEED ANOTHER BUSINESS
ETHICS TEXT?
The popular business press is replete with feature stories describing ethical
meltdowns and how those corporate misdeeds have eroded the public trust of
business leaders and their organizations. As most of us learned at our parents’ knees,
trust and reputation are built over many years and take but an instant to be destroyed.
So here we stand at a crossroads. Is it going to be business as usual for business?
Or are businesspeople going to commit to regaining the trust of our peers, our
families, and our fellow citizens?
In response to this crisis of trust, universities across the country are scrambling to
design new courses that incorporate leadership, communication skills, the basics of
human resources management, and ethics. That’s why we wrote this book; we want to
make the study of ethics relevant to real-life work situations. We want to help businesspeople regain the trust that’s been squandered in the last few years. This book is different
from other business ethics texts in several key ways: First, it was written by an unusual
team. Linda Trevi~
no is Distinguished Professor of Organizational Behavior and Ethics in
the Management and Organization Department of the Smeal College of Business at the
Pennsylvania State University. Her prolific research on the management of ethical
conduct in organizations is published in the field’s best journals and is internationally
known and referenced. She has more than 25 years of experience in teaching students and
executives in university and nonuniversity settings, and she also has experience as a
corporate consultant and speaker on ethics and management issues. Kate Nelson is a fulltime faculty member at the Fox School of Business at Temple University in Philadelphia,
where she teaches management, business ethics, and human resources to undergraduates.
Before joining Temple’s faculty, Kate worked for more than 30 years in strategic
organizational communication and human resources at a variety of companies including
Citicorp, Merrill Lynch, and Mercer HR Consulting. She also has worked as a consultant
specializing in ethics and strategic employee communications and has designed ethics
programs for numerous organizations. We think that bringing together this diverse mix of
theory and practice makes the book unique.
Second, the approach of this book is pragmatic, and that approach is a direct response
to complaints and suggestions we have heard from students, employees, and corporate
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PREFACE
executives. “Make it real,” they have said. “Tell us what we need to know to effectively
manage people. Take the mystery out of this subject that seems so murky. Get to the
point.” This book starts with the assumption that ethics in organizations is about human
behavior in those organizations. We believe that behavior results from a number of factors,
many of which can be influenced by managers and the organizations themselves. As a
result, this book is organized into sections about individuals, managing in an organizational context, and organizations in their broader environment, the ethical dilemmas
managers face, and how they might solve them. It also features philosophical and
psychological factors of decision making, ethical culture, how managers can influence
employees’ behavior through ethical leadership, what corporations are doing to encourage ethical behavior and corporate social responsibility, and international business ethics.
Third, we have used a different mix of examples than is found in conventional
business ethics texts. Most texts focus on high-level, corporate dilemmas: “Should
senior executives be paid at a particular level? Should this industry do business in
China? Should American environmental laws apply to American companies operating
overseas?” Although these are interesting issues, the vast majority of students and
employees will never have to face them. Howeve …
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