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CONTENTS 1

1 Ethical Problems in Business 1

ACTUAL EXPERIENCES 2

Goldenberg Company 2

Tylenol Tampering 3

Sears' Auto Repair 4

General Motors vs. Volkswagen AG 5

Las Vegas Review-Journal 8

TYPES OF ISSUES 9

Bribery 10

Coercion 12

Deception 12

Theft 13

Unfair Discrimination 13

WHAT'S AHEAD 14

Discussion Questions 15

THE MACRO PERSPECTIVE 18

2 The Importance of Ethics in Business 18

Effect of Unethical Behavior from a Macro Perspective 20

Bribery 20

Coercive Acts 20

Deceptive Information 20

Theft 21

Unfair Discrimination 21

THE MICRO PERSPECTIVE-ETHICS AND TRUST 22

Trust in Supplier Relations 23

Trust in Customer Relations 24

Trust in Employee Relations 24

THE IMPORTANCE OF SOCIETY'S PERCEPTION 25

Johnson Johnson Revisited 25

Intel's Pentium Chip 26

Beech-Nut Nutrition Corporation 30

Manville Corporation 33

SUMMARY 37

DISCUSSION QUESTIONS 38

3 Moral Standards 42

INTEGRATIVE SOCIAL CONTRACTS THEORY 43

Hypernorms 44

Macro Social Contract 45

Micro Social Contracts 45

CONSEQUENTIALIST PRINCIPLES 47

Egoism 47

Utilitarianism 48

Some Difficulties 49

NONCONSEQUENTIALIST PRINCIPLES 51

Rights Principles 51

Justice Principles 52

Distributive Justice 53

Retributive Justice 54

Compensatory Justice 55

SUMMARY 55

DISCUSSION QUESTIONS 56

PERSONAL TRAITS 58

4 The Empirical Evidence 58

Personal VaLues 59

Stage of Moral Development 59

Demographics 61

ORGANIZATIONAL TRAITS 62

Stakeholders 63

Organizational Climate 63

Differential Association 64

Role-set Configuration 65

Ethical Climates 66

Organizational Goals 67

Policy 68

Culture 70

Ethnic Differences 70

Ethnic Similarities 71

DECISION PROCESSES 72

Management Problems 72

WHAT WE HAVE LEARNED 76

Different Solutions 76

Support for Ethics in Business 77

Enhancing Ethical Behavior 78

DISCUSSION QUESTIONS 79

5 Ethics and Decision Making 86

PERSONAL TRAITS 87

Values 87

Types of Values 87

Personal Values Moderators 89

Stage of Moral Development 91

Moral Approbation 92

ORGANIZATIONAL CULTURE 94

Organizational Traits 95

Organizational Climate 95

Organizational Goals 97

Stakeholders 98

Management Problem 100

Decision Processes 100

Decision Alternatives 101

Decision Dimensions 102

Two-Stage Decision Process 104

DISCUSSION 106

DISCUSSION QUESTIONS 107

6 Making Moral Decisions 110

ORGANIZATIONAL CULTURE 110

High-Performing Cultures Promote Ethical Behavior 112

ETHICS TOOLS 115

Decision Support Model 115

Overriding Factors 117

Decision Dimensions 118

CONCLUSION 121

DISCUSSION QUESTIONS 121

7 Ethics in Practice 124

ETHICAL COMPANIES 124

The Boeing Company 124

Hewlett-Packard Company 127

Johnson Johnson 129

The Batting Average 132

THE ETHICS OF ACTIONS 132

Bribery 132

Coercion 135

Deception 137

Theft 140

Unfair Discrimination 142

FINAL COMMENTS 143

DISCUSSION QUESTIONS 144

APPENDIX A UNITED STATES BILL OF RIGHTS 147

APPENDIX B UNITED NATIONS UNIVERSAL DECLARATION OF HUMAN RIGHTS 149

CASES 155

Case One: Aer Lingus Holidays 155

Case Two: American Therapeutics Inc． 158

Case Three: Barings PLC 160

Case Four: Bata Industries Ltd． 163

Case Five: Chrysler-Disconnected Odometers 165

Case Six: ConAgra Inc． 169

Case Seven: First American Bank Of Georgia 171

Case Eight: Friedrich Flick Industrieverwaltung KGaA 173

Case Nine: Ing. C. Olivetti Co. S.p.A. 175

Case Ten: Joe Camel 177

Case Eleven: Kader Industrial (Thailand) Company 179

Case Twelve: Muebles Fino Buenos 181

Case Thirteen: Optifast 183

Case Fourteen: Pepsi-Cola Products Philippines Inc． 185

Case Fifteen: Phar-Mor Inc. 187

Case Sixteen: Pico Korea, Ltd. 190

Case Seventeen: Reindeer and Game Ltd.(Poro ja Riista Oy) 191

Case Eighteen: Tateho Chemical Industries Ltd． 193

Case Nineteen: WFI Corporation 195

Case Twenty：Zurich Insurance Company 197

ACKNOWLEDGMENTS 198

INDEX 199