Ethics and Business

Ethics & Business: An Integrated Approach for Business and Personal Success gives students the practical knowledge and skills to identify ethical dilemmas, understand ethical behavior in themselves and others, and advocate for ethical behavior within their organization. The course focuses on three ethical questions: the individual, the organization, and the societal perspective. These questions and views explore different areas of business ethics, such as the use and abuse of power, challenges to honesty and integrity, and participation in ethical interventions such as reporting, repair, forgiveness, and reconciliation.

Most business ethics courses are based on a single point of view. Depending on the viewpoint, this might be based on philosophical theory, organizational behavior, or a legal and regulatory compliance approach. As an author team, we combine and integrate these points of view into a unified whole by incorporating unique content, original videos, and adaptable case studies to assist students in making ethical decisions in their professional and personal lives.

Preface iii

1 Introduction: Why Study Business Ethics? 1

Part I

2 Theories of Morality and Business Ethics 13

3 Living a Great Life: PERMA, Mission Statements, and Ethical Decision Making 27

4 Corporate Organization and the Role of Stakeholders 41

5 Ethics and Compliance in the Corporation 55

6 Culture Matters 73

7 Ethics in a Global Society and Economy 88

Part II

8 Power and Its Uses 104

9 Conflicts of Interest 116

10 Bribery and Corruption 127

11 Integrity and Mercy 140

12 Corporate Social Responsibility and Social Entrepreneurship 152

Part III

13 Ethics and Technology: Issues for the Twenty-First Century 165

14 Ethics and a Market Economy 179

Cases

Case 1 Introduction—The Overwhelmed Ethics Students 192

Case 2 Ethical Theories—Rose Martinez and TriHydraChlorafine 194

Case 3 Living an Ethical Life—Peter Olson 196

Case 4 The Corporation and its Stakeholders— Ecolab and the 2030 Sustainability Goals 197

Case 5 Ethics and Compliance in Corporations— Valeant Pharmaceuticals 203

Case 6 Culture and Ethical Leadership—Mary Barra at General Motors 211

Case 7 Global Ethics—Ethical Challenges for Apple in China 217

Case 8 Power, its Use and Abuse—The Wrong Hallway 223

Case 9 Conflicts of Interest—Challenges Within the World of Investing 224

Case 10 Goldman Sachs and 1MDB: Rogue Employee or Failed Oversight? 227

Case 11 Integrity and Mercy—A Question of Loyalty 232

Case 12 Corporate Social Responsilbity—CSR at Microsoft 234

Case 13 Ethics and Technology—Facebook’s Oversight Board and its Effect in 2021 236

Case 14 Ethics and Capitalism—The Other Side Academy 243

Online Cases

Case 1B The Overwhelmed Ethics Student (B)

Case 8 Power, its Use and Abuse—The Abused Attorney

Case 14 Ethics and Capitalism—The Other Side Academy Part 2

Name Index 250

Company Index 252

Subject Index 254

PAUL C. GODFREY is the William and Roceil Low Professor of Business Strategy at the BYU Marriott School of Business. He has been honored with both the school’s Outstanding Researcher and Outstanding Teacher awards. An active researcher, his work has appeared in a number of premiere scientific publications, including Nature Biotechnology, the Academy of Management Review, and the Strategic Management Journal. Paul's previous textbook, Strategic Management: Concepts and Cases (4th edition) provides students with a well-written, tools-driven approach to these important areas of business.

LAURA E. JACOBUS is a seasoned attorney and business leader. She has held strategic legal and business leadership roles in Silicon Valley global high tech companies including Cisco Systems and Juniper Networks. Her interest in business ethics began while working in Silicon Valley during the dot-com bubble. Laura now teaches in several different business and law programs, including those at Santa Clara University Leavey School of Business, SCU Law School, Widener Delaware Law School, and Baker College. She teaches primarily in the areas of ethics and compliance, risk management, international business and business communications. Laura has co-authored Essential Lawyering Skills: A Companion Guide for Neil W. Hamilton's ROADMAP (2021, American Bar Association). She received a Juris Doctor from SCU School of Law and a Bachelor of Arts in English from SCU. She is an attorney licensed to practice in California.