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Business Ethics and Values Business Ethics and V 0273694782_COVER 10/10/05 11:09 AM Page 1 Second Edition Business Ethics and Values introduces students to the complexities and Individual, Corporate and International Perspectives BUSINESS ETHICS AND VALUES principles of ethical issues by focusing on developing ethical awareness Second Edition and the ability to argue business ethics matters. A proven resource, the second edition of this text continues to present a successful blend of concrete issues and academic theory, suitable for undergraduate and postgraduate students with or without practical experience of the world BUSINESS ETHICS AND VALUES of organisations. It gives as much importance to individual conscience at Individual, Corporate and International Perspectives work as it does to socially responsible behaviour at the corporate level and within the global business world. Colin Fisher Hallmark features: • Broad coverage of the many issues in this subject ensures that Alan Lovell students see the whole picture. • The use of real-world case studies and simulations helps to stimulate debate and appreciate the multi-faceted aspects of ethical arguments. New to this edition: • New material on the ethics of e-communication, sustainability and the ethical impact of globalisation ensures that students are learning from the most up-to-date material available. • Further analysis of Anglo-American approaches to corporate governance and their ethical underpinnings. • Short test and assignment questions at the end of each chapter help students to consolidate their learning. • More simulation exercises and activities give students the opportunity to reflect on their attitudes to this engaging subject. • A well-developed supplements package to support tutors and students includes an instructor’s manual, PowerPoint slides and a companion website at www.pearsoned.co.uk/fisherlovell Cover image: Photographer Angelo Cavalli Colin Fisher is Professor of Managerial Ethics and Values, Nottingham © Getty Images/ Business School, Nottingham Trent University. Photographer’s Choice Fisher Alan Lovell is Professor of Organisational Accountability and Head of the Lovell Department of Accounting, Finance & Economics, Nottingham Business School, Nottingham Trent University. Additional student support at www.pearsoned.co.uk/fisherlovell www.pearson-books.com An imprint of BUEV_A01.QXD 13/9/06 1:48 AM Page i Business Ethics and Values Visit the Business Ethics and Values, second edition Companion Website at www.pearsoned.co.uk/fisherlovell to find valuable student learning material including: • Links to relevant sites on the web • New case material and discussion and commentary on case studies contained within the book • Commentaries on suggested assignment briefs contained within the book • Answers to the quick revision tests • Updates including group work exercises and postings concerning contemporary issues and how the ethical arguments and theories discussed in the book relate to current ‘hot topics’ BUEV_A01.QXD 13/9/06 1:48 AM Page ii We work with leading authors to develop the strongest educational materials in business and management, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk BUEV_A01.QXD 13/9/06 1:48 AM Page iii Business Ethics and Values Individual, Corporate and International Perspectives Second edition Colin Fisher and Alan Lovell Nottingham Business School, Nottingham Trent University BUEV_A01.QXD 13/9/06 1:48 AM Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 2003 Second edition published 2006 © Pearson Education Limited 2003, 2006 The rights of Colin Fisher and Alan Lovell to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN-13: 978 0 273 69478 6 ISBN-10: 0 273 69478 2 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Fisher, C. M. (Colin M.) Business ethics and values : individual, corporate and international perspectives / Colin Fisher and Alan Lovell.–– 2nd ed. p. cm. Includes bibliographical references. ISBN-13: 978-0-273-69428-6 (pbk.) ISBN-10: 0-273-69478-2 (pbk.) 1. Business ethics. 2. Business enterprises––Moral and ethical aspects. I. Lovell, Alan. II. Title. HF5387.F565 2005 174’.4––dc22 2005045399 10 9 8 7 6 5 4 3 10 09 08 07 06 Typeset in 10pt Palatino by 30 Printed and bound by Ashford Colour Press Ltd., Gosport The publisher’s policy is to use paper manufactured from sustainable forests. BUEV_A01.QXD 13/9/06 1:48 AM Page v Brief contents Introduction xvii Acknowledgements xxiii PART A Business ethics matters: what is it and why does it matter? 1 Chapter 1 Perspectives on business ethics and values 3 Chapter 2 Ethical issues in business 38 Chapter 3 Ethical theories and how to use them 99 PART B Individuals’ responses to ethical issues 149 Chapter 4 Personal values in the workplace 151 Chapter 5 Values and heuristics 180 Chapter 6 Individual responses to ethical situations 221 Chapter 7 Whistleblower or witness? 260 PART C Organisational responses to ethical issues 293 Chapter 8 Corporate responsibility, corporate governance and 295 corporate citizenship Chapter 9 Sustainability and the responsible corporation 338 Chapter 10 Ethical conformance: codes, standards, culture, leadership and 377 citizen power PART D The international context 417 Chapter 11 Global and local values – and international business 419 Chapter 12 Globalisation and international business 459 Chapter 13 Moral agency at work and a modest proposal for affecting ethics 501 in business BUEV_A01.QXD 13/9/06 1:48 AM Page vi vi Brief contents References 530 Answers to quick revision tests 557 Country and region index 562 Index 564 BUEV_A01.QXD 13/9/06 1:48 AM Page vii Contents Introduction xvii Acknowledgements xxiii PART A Business ethics matters: what is it and why does it matter? 1 Chapter 1 Perspectives on business ethics and values 3 Learning outcomes 3 Stories and business ethics 3 Case study 1.1: The Hindustan Times, Monday 29 November 2004 6 The business case for business ethics 9 Stakeholder theory 16 Business and organisational ethics 18 Case study 1.2: Biography and philosophy 22 Boundaries of jurisdiction or spheres of justice 28 Defining the boundaries of the economic sphere 30 Reflections 33 Summary 34 Quick revision test 35 Typical assignments and briefs 35 Group activity 36 Useful websites 37 Chapter 2 Ethical issues in business 38 Learning outcomes 38 Introduction 38 Part one: The map of business ethics issues 39 Part two: Encouraging goodness 47 Case study 2.1: The Nationwide Foundation 48 BUEV_A01.QXD 13/9/06 1:48 AM Page viii viii Contents Case study 2.2: British Sugar and Sunday trucking 49 Case study 2.3: AIDS drugs and patent rights in South Africa 51 Case study 2.4: Child labour in developing countries 53 Case study 2.5: David Shayler and whistleblowing on MI5 55 Part three: Creating a level playing field, benign-ness 56 Case study 2.6: Paying for staff’s professional training 58 Case study 2.7: Executive fat cats 60 Case study 2.8: The oil companies and the 2000 fuel crisis 62 Case study 2.9: Providing new drugs on the NHS to people with multiple sclerosis 64 Case study 2.10: Discriminating against employees – the Metropolitan Police Service 65 Case study 2.11: The British railway system: priorities, profits and governance 67 Part four: Preventing indifference to others 70 Case study 2.12: The case of Shell’s missing oil barrels 72 Case study 2.13: BAT, Nottingham University and the honorary professor 75 Case study 2.14: The Jonathan Aitken story 76 Case study 2.15: Economy with the truth when dealing with the tax authorities 77 Case study 2.16: The rise and fall of Parmalat 79 Case study 2.17: Lord Black and Hollinger International 81 Case study 2.18: BAT and allegations of cigarette smuggling 83 Case study 2.19: The retention of dead babies’ organs in hospitals 85 Part five: Discouraging badness 86 Case study 2.20: British Airways and Virgin Atlantic 86 Case study 2.21: The hospital consultants 88 Case study 2.22: Supermarkets’ treatment of their supply chains 89 Case study 2.23: The Super Size Me sales promotion 91 Case study 2.24: Sexual harassment 92 Case study 2.25: The Firestone Tire recall issue 93 Case study 2.26: Huntingdon Life Sciences
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