Managing business ethics : straight talk about how to do it right / Linda Klebe Treviño, 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.

Includes index.

CHAPTER 1 INTRODUCING STRAIGHT TALK ABOUT MANAGING BUSINESS ETHICS: WHERE WE’RE GOING AND WHY – Introduction -- The Financial Disaster of 2008 -- Borrowing Was Cheap -- Real Estate Became the Investment of Choice -- Mortgage Originators Peddled “Liar Loans” -- Banks Securitized the Poison and Spread it Around -- Those Who Were Supposed to Protect Us Didn’t -- Moving Beyond Cynicism -- Can Business Ethics Be Taught? -- Aren’t Bad Apples the Cause of Ethical Problems in Organizations? -- Shouldn’t Employees Already Know the Difference between Right and Wrong? -- Aren’t Adults’ Ethics Fully Formed and Unchangeable? -- This Book is about Managing Ethics in Business -- Ethics and the Law -- Why Be Ethical? Why Bother? Who Cares? -- Individuals Care about Ethics: The Motivation To Be Ethical -- Employees Care about Ethics: Employee Attraction and Commitment -- Managers Care about Ethics -- Executive Leaders Care about Ethics -- Industries Care about Ethics -- Society Cares about Ethics: Business and Social Responsibility -- The Importance of Trust -- The Importance of Values -- How This Book Is Structured – Conclusion -- Discussion Questions – Exercise -- Your Cynicism Quotient -- Notes -- SECTION II ETHICS AND THE INDIVIDUAL -- CHAPTER 2 DECIDING WHAT’S RIGHT: A PRESCRIPTIVE APPROACH -- Ethics and the Individual -- Ethical Dilemmas -- Prescriptive Approaches to Ethical Decision Making in Business -- Eight Steps to Sound Ethical Decision Making in Business -- Practical Preventive Medicine -- Conclusion -- Discussion Questions -- Exercise -- Clarifying Your Values -- Introducing the Pinto Fires Case -- Case: Pinto Fires -- Short Cases -- Notes -- CHAPTER 3 DECIDING WHAT’S RIGHT: A PSYCHOLOGICAL APPROACH -- Ethical Awareness and Ethical Judgment -- Individual Differences, Ethical Judgment, and Ethical Behavior -- Ethical Decision-Making Style -- Cognitive Moral Development -- Locus of Control -- Machiavellianism -- Moral Disengagement -- Facilitators of and Barriers to Good Ethical Judgment -- Thinking about Fact Gathering -- Thinking about Consequences -- Consequences as Risk -- Thinking about Integrity -- Thinking about Your Gut -- Unconscious Biases -- Emotions In Ethical Decision Making -- Toward Ethical Action -- Revisiting the Pinto Fires Case: Script Processing and Cost-Benefit Analysis -- Cost-Benefit Analysis -- Conclusion -- Exercise -- Understanding Cognitive Moral Development -- Discussion Questions -- Short Case -- Notes -- CHAPTER 4 ADDRESSING INDIVIDUALS’ COMMON ETHICAL PROBLEMS -- Identifying Your Values—and Voicing Them -- People Issues -- Discrimination -- Harassment, Sexual and Otherwise -- Conflicts of Interest -- What Is It? -- How We Can Think about This Issue -- Why Is It an Ethical Problem? -- Costs -- Customer Confidence Issues -- What Is It? -- How We Can Think about This Issue -- Why Is It an Ethical Problem? -- Costs -- Use of Corporate Resources -- What Is It? -- How We Can Think about This Issue -- Why Is It an Ethical Problem? -- Costs -- When all Else Fails: Blowing the Whistle -- When Do You Blow the Whistle? -- How to Blow the Whistle -- Conclusion -- Discussion Questions -- Short Cases -- Notes -- SECTION III MANAGING ETHICS IN THE ORGANIZATION -- CHAPTER 5 ETHICS AS ORGANIZATIONAL CULTURE -- Introduction -- Organizational Ethics as Culture -- What Is Culture? -- Strong versus Weak Cultures -- How Culture Influences Behavior: Socialization and Internalization -- Ethical Culture: A Multisystem Framework -- Alignment of Ethical Culture Systems -- Ethical Leadership -- Executive Leaders Create Culture -- Leaders Maintain or Change Organizational Culture -- Other Formal Cultural Systems -- Selection Systems -- Values and Mission Statements -- Policies and Codes -- Orientation and Training Programs -- Performance Management Systems -- Organizational Authority Structure -- Decision-Making Processes -- Informal Cultural Systems -- Role Models and Heroes -- Norms: “The Way We Do Things around Here” -- Rituals -- Myths and Stories -- Language -- Organizational Climates: Fairness, Benevolence, Self-Interest, Principles -- Developing and Changing the Ethical Culture -- How an Ethical Culture Can Become an Unethical Culture -- Becoming a More Ethical Culture -- A Cultural Approach to Changing Organizational Ethics -- Audit of the Ethical Culture -- A Cultural Systems View -- A Long-Term View -- Assumptions about People -- Diagnosis: the Ethical Culture Audit -- Ethical Culture Change Intervention -- The Ethics of Managing Organizational Ethics -- Conclusion -- Discussion Questions -- Case: Culture Change at Texaco -- Case: An Unethical Culture In Need of Change: Tap Pharmaceuticals -- Case: “Bad to the Bone” 200 -- Notes -- CHAPTER 6 MANAGING ETHICS AND LEGAL COMPLIANCE -- Introduction -- Structuring Ethics Management -- Making Ethics Comprehensive and Holistic -- Managing Ethics: The Corporate Ethics Office -- Ethics and Compliance Officers -- The Ethics Infrastructure -- The Corporate Ethics Committee -- Communicating Ethics -- Basic Communications Principles -- Evaluating the Current State of Ethics Communications -- Multiple Communication Channels for Formal Ethics Communication -- Interactive Approaches to Ethics Communication -- Mission or Values Statements -- Organizational Policy -- Codes of Conduct -- Communicating Senior Management Commitment to Ethics -- Formal and Informal Systems to Resolve Questions and Report Ethical Concerns -- Using the Reward System to Reinforce the Ethics Message -- Evaluating the Ethics Program -- Surveys -- Values or Compliance Approaches -- Globalizing an Ethics Program -- Conclusion -- Discussion Questions -- Short Case -- Appendix: How Fines Are Determined under the U.S. Sentencing Guidelines – Notes -- CHAPTER 7 MANAGING FOR ETHICAL CONDUCT -- Introduction -- In Business, Ethics is about Behavior -- Practical Advice for Managers: Ethical Behavior -- Our Multiple Ethical Selves -- The Kenneth Lay Example -- The Dennis Levine Example -- Practical Advice for Managers: Multiple Ethical Selves -- Rewards and Discipline -- People Do What Is Rewarded and Avoid Doing What Is Punished -- People Will Go the Extra Mile to Achieve Goals Set by Managers -- How Goals Combined with Rewards Can Encourage Unethical Behavior -- Practical Advice for Managers: Goals, Rewards, and Discipline -- Recognize the Power of Indirect Rewards and Punishments -- Can Managers Really Reward Ethical Behavior? -- What About the Role of Discipline? -- Practical Advice for Managers: Discipline -- People Follow Group Norms -- “Everyone’s Doing It” -- Rationalizing Unethical Behavior -- Pressure to Go Along -- Practical Advice for Managers: Group Norms -- People Fulfill Assigned Roles -- The Zimbardo Prison Experiment -- Roles at Work -- Conflicting Roles Can Lead to Unethical Behavior -- Roles Can Also Support Ethical Behavior -- Practical Advice for Managers: Roles -- Obedience to Authority: People Do What They’re Told -- The Milgram Experiments -- Obedience to Authority at Work -- Practical Advice for Managers: Obedience to Authority -- Responsibility is Diffused in Organizations -- “Don’t Worry—We’re Taking Care of Everything” -- Diffusing Responsibility in Groups -- Diffusing Responsibility by Dividing Responsibility -- Diffusing Responsibility by Creating Psychological Distance -- Practical Advice for Managers: Personal Responsibility -- Conclusion -- Am I Walking My Ethical Talk? -- Discussion Questions -- Case: Sears, Roebuck, and Co.: The Auto Center Scandal -- Short Case -- Notes -- CHAPTER 8 ETHICAL PROBLEMS OF MANAGERS -- Introduction -- Managers and Employee Engagement -- Managing the “Basics” -- Hiring and Work Assignments -- Performance Evaluation -- Discipline -- Terminations -- Why Are These Ethical Problems? -- Costs -- Managing a diverse Workforce -- Diversity -- Harassment -- Family and Personal Issues -- Why Are These Ethical Problems? -- Costs -- The Manager as a Lens -- The Buck Stops with Managers -- Managers Are Role Models -- Managing Up and Across -- Honesty Is Rule One -- Standards Go Both Ways -- Conclusion -- Discussion Questions -- Short Cases -- Notes -- SECTION IV ORGANIZATIONAL ETHICS AND SOCIAL RESPONSIBILITY -- CHAPTER 9 CORPORATE SOCIAL RESPONSIBILITY -- Introduction -- Why Corporate Social Responsibility? -- Types of Corporate Social Responsibility -- Economic Responsibilities -- Legal Responsibilities -- Ethical Responsibilities -- Philanthropic Responsibilities -- Triple Bottom Line and Environmental Sustainability -- Is Socially Responsible Business Good Business? -- The Benefit of a Good Reputation -- Socially Responsible Investors Reward Social Responsibility -- The Cost of Illegal Conduct -- The Cost of Government Regulation -- What the Research Says about Social Responsibility and Firm Performance -- Being Socially Responsible Because It’s the Right Thing to Do -- Conclusion -- Discussion Questions -- Case: Merck and River Blindness -- Short Case -- Notes -- CHAPTER 10 ETHICAL PROBLEMS OF ORGANIZATIONS -- Introduction -- Managing Stakeholders -- Ethics and Consumers -- Conflicts of Interest -- Product Safety -- Advertising -- Ethics and Employees -- Employee Safety -- Employee Downsizings -- Ethics and Shareholders -- Ethics and the Community -- Why Are These Ethical Issues? -- Costs -- Conclusion -- Short Cases -- Discussion Questions -- Notes -- CHAPTER 11 MANAGING FOR ETHICS AND SOCIAL RESPONSIBILITY IN A GLOBAL ENVIRONMENT -- Introduction -- Focus on the Individual Expatriate Manager -- The Difficulties of Foreign Business Assignments -- The Need for Structure, Training, and Guidance -- Foreign Language Proficiency -- Learning about the Culture -- Recognizing the Power of Selective Perception -- Assumption of Behavioral Consistency -- Assumption of Cultural Homogeneity -- Assumption of Similarity -- How Different Are Ethical Standards in Different Cultures—Really? -- Development of Corporate Guidelines and Policies for Global Business Ethics -- The Organization in a Global Business Environment -- Deciding to Do Business in a Foreign Country -- Development of a Transcultural Corporate Ethic -- Conclusion -- Discussion Questions -- Short Case -- Case: Selling Medical Ultrasound Technology in Asia -- Case: Google Goes to China.