timer Asked: Apr 21st, 2020

Question Description

Read the Union Carbide Corporation and Bhopal case that begins on page 384 of your Business, Government, and Society textbook. In lieu of answering the questions that follow the case, you will respond to the prompt below;

Consider the concerns as described in this case and prepare a memorandum that addresses the concerns described below. Your memo should be completed in narrative form (you may use headings if you choose to do so for organizational purposes, but do not list your responses in bullet form). Maximum page length: 10 pages (double spaced).

Identify all of the potential ethical issues you see (if any). Describe and analyze the implications of each issue, including who or what were affected by the company’s response. In identifying issues and addressing their implications, your discussion should be as comprehensive as possible—you should consider any economic, social, or ecological implications.

Additionally, your analysis should thoroughly identify and discuss at least two potential courses of action that the company could have taken with respect to each issue you have discussed. Clearly demonstrate your reasoning process—identify and explain any ethical principles or arguments you are relying on; do not simply state unsupported conclusions.

If you apply any approaches to ethical reasoning that you learned about in this course, clearly state what they are and how you are applying them to this case. Of the possible solutions you identified, which would you recommend that the company should have adopted as a resolution? Again, fully explain and justify your recommendations. Finally, explain how you would implement each solution you have recommended.

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The thirteenth edition continues a long effort to tell the story of how forces in business, government, and society shape our world. In addition, an emphasis on management issues and processes allows students to apply the principles they learn to real-world situations. 13E As always, a stream of events dictated the need for extensive revision. Accordingly, the authors have updated the chapters to include new ideas, events, personalities, and publications, while continuing the work of building insight into basic underlying principles, institutions, and forces. Business, Government, and Society A Managerial Perspective Text and Cases Steiner Steiner To learn more, visit this book’s Online Learning Center at ISBN 978-0-07-811267-6 MHID 0-07-811267-2 90000 EAN 9 780078 112676 John F. Steiner George A. Steiner MD DALIM #1142568 5/3/11 CYAN MAG YELO BLK Business, Government, and Society Text and Cases An expanded discussion of white collar crime and criminal prosecution of both managers and corporations in Chapter 7, “Business Ethics.” A new section on the neural basis of ethical decisions in Chapter 8, “Making Ethical Decisions in Business.” An expanded discussion of lobbying ethics as well as a revised discussion of corporate money in elections and recent changes in election law in Chapter 9, “Business in Politics.” A new fifth wave, “terrorism and financial crisis,” has been added to the four historical waves of regulatory growth in Chapter 10, “Regulating Business.” A new discussion of globalization, including the rise of the modern trading system and coverage of various trade organizations, such as the IMF and World Bank, in Chapter 12, “Globalization, Trade, and Corruption.” New sections in Chapter 15, “Consumerism,” including Thoreau’s rejection of materialism, arguments defending consumerism, and a description of the consumer protection activities of the Federal Trade Commission. Added emphasis on the nature and significance of diversity management programs in corporations in Chapter 17, “Civil Rights, Women, and Diversity.” New coverage of the story of the Lehman Brothers bankruptcy and of the new governance reforms in the wake of the recent financial crisis in Chapter 18, “Corporate Governance.” A Managerial Perspective Highlights of the Thirteenth Edition include: Thirteenth Edition ste12672_fm_i-xvi.indd Page i 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29:04:11/MHDQ283:Hirt:202 Business, Government, and Society A Managerial Perspective, Text and Cases Thirteenth Edition John F. Steiner Professor of Management, Emeritus California State University, Los Angeles George A. Steiner Harry and Elsa Kunin Professor of Business and Society and Professor of Management, Emeritus, UCLA ste12672_fm_i-xvi.indd Page ii 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29:04:11/MHDQ283:Hirt:202 BUSINESS, GOVERNMENT, AND SOCIETY: A MANAGERIAL PERSPECTIVE, TEXT AND CASES Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2012, 2009, 2006, 2003, 2000, 1997, 1994, 1991, 1988, 1985, 1980 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 0 9 8 7 6 5 4 3 2 1 ISBN 978-0-07-811267-6 MHID 0-07-811267-2 Vice president and editor-in-chief: Brent Gordon Editorial director: Paul Ducham Executive director of development: Ann Torbert Managing development editor: Laura Hurst Spell Editorial coordinator: Jonathan Thornton Vice president and director of marketing: Robin J. Zwettler Marketing director: Amee Mosley Market development specialist: Jaime Halteman Vice president of editing, design, and production: Sesha Bolisetty Lead project manager: Christine A. Vaughan Buyer II: Debra R. Sylvester Design coordinator: Joanne Mennemeier Senior photo research coordinator: Keri Johnson Media project manager: Suresh Babu, Hurix Systems Pvt. Ltd. Cover images: © Ingram Publishing; © Skip Nall/Getty Images; © Royalty-Free/CORBIS; © Hisham F. Ibrahim/Getty Images; © Getty Images/Digital Vision; © U.S. Navy photo by Mass Communication Specialist 1st Class Demetrius Kennon Typeface: 10/12 Palatino Compositor: Aptara®, Inc. Printer: R. R. Donnelley Library of Congress Cataloging-in-Publication Data Steiner, John F. Business, government, and society : a managerial perspective: text and cases / John F. Steiner, George A. Steiner.—13th ed. p. cm. Includes index. ISBN-13: 978-0-07-811267-6 (alk. paper) ISBN-10: 0-07-811267-2 (alk. paper) 1. Industries—Social aspects—United States. 2. Industrial policy—United States. 3. Social responsibility of business—United States. I. Steiner, George Albert, 1912- II. Title. HD60.5.U5S8 2012 658.4—dc22 2011007905 ste12672_fm_i-xvi.indd Page iii 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29:04:11/MHDQ283:Hirt:202 We dedicate this book to the memory of Jean Wood Steiner. ste12672_fm_i-xvi.indd Page iv 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29:04:11/MHDQ283:Hirt:202 Brief Table of Contents Preface PART FIVE Multinational Corporations and Globalization xi PART ONE A Framework for Studying Business, Government, and Society 1 The Study of Business, Government, and Society 1 2 The Dynamic Environment 3 Business Power 22 55 4 Critics of Business 83 PART TWO The Nature and Management of Corporate Responsibility 5 Corporate Social Responsibility 121 PART THREE Managing Ethics 8 Making Ethical Decisions in Business 238 PART FOUR Business and Government 10 Regulating Business iv 12 Globalization, Trade, and Corruption 395 PART SIX Corporations and the Natural Environment 13 Industrial Pollution and Environmental Regulation 436 14 Managing Environmental Quality 476 PART SEVEN Consumerism 15 Consumerism 512 16 The Changing Workplace 549 17 Civil Rights, Women, and Diversity 585 PART NINE Corporate Governance 194 9 Business in Politics 352 PART EIGHT Human Resources 6 Implementing Corporate Social Responsibility 157 7 Business Ethics 11 Multinational Corporations 271 316 18 Corporate Governance 630 ste12672_fm_i-xvi.indd Page v 5/4/11 11:07 AM user-f501 204/MHBR234/ste12672_disk1of1/0078112672/ste12672_pagefiles Table of Contents Preface xi PART ONE A Framework for Studying Business, Government, and Society Chapter 1 The Study of Business, Government, and Society 1 ExxonMobil Corporation 1 What Is the Business–Government–Society Field? 4 Why Is the BGS Field Important to Managers? 7 Four Models of the BGS Relationship 8 The Market Capitalism Model 9 The Dominance Model 12 The Countervailing Forces Model 15 The Stakeholder Model 16 Our Approach to the Subject Matter 20 Comprehensive Scope 20 Interdisciplinary Approach with a Management Focus 20 Use of Theory, Description, and Case Studies 20 Global Perspective 21 Historical Perspective 21 Chapter 2 The Dynamic Environment Royal Dutch Shell PLC 22 Deep Historical Forces at Work The Industrial Revolution Inequality 25 Population Growth 28 Technology 30 Globalization 32 Nation-States 33 25 22 24 Dominant Ideologies 34 Great Leadership 35 Chance 35 Six External Environments of Business 36 The Economic Environment 36 The Technological Environment 38 The Cultural Environment 39 The Government Environment 41 The Legal Environment 42 The Natural Environment 43 The Internal Environment 44 Concluding Observations 45 Case Study: The American Fur Company 47 Chapter 3 Business Power 55 James B. Duke and The American Tobacco Company 55 The Nature of Business Power 58 What Is Power? 58 Levels and Spheres of Corporate Power 59 The Story of the Railroads 61 Two Perspectives on Business Power 64 The Dominance Theory Pluralist Theory 71 65 Concluding Observations 75 Case Study: John D. Rockefeller and the Standard Oil Trust 75 Chapter 4 Critics of Business 83 Mary “Mother” Jones 83 Origins of Critical Attitudes Toward Business 86 The Greeks and Romans 86 The Medieval World 88 The Modern World 88 v ste12672_fm_i-xvi.indd Page vi 5/11/11 3:23 PM user-f494 /208/MHBR238/mcc21034_disk1of1/0071221034/mcc21034_pagefiles vi Table of Contents The American Critique of Business 89 Global Corporate Responsibility The Colonial Era 89 The Young Nation 90 1800–1865 91 Populists and Progressives 93 Socialists 95 The Great Depression and World War II 99 The Collapse of Confidence 100 The New Progressives 102 Global Critics Assessing the Evolving Global CSR System 146 Concluding Observations 146 Case Study: Jack Welch at General Electric 147 103 The Story of Liberalism 104 The Rise of Neoliberalism 105 Agenda of the Global Justice Movement 106 Global Activism 108 Chapter 6 Implementing Corporate Social Responsibility 157 Concluding Observations 110 Case Study: A Campaign against KFC Corporation 112 The Bill & Melinda Gates Foundation 157 Managing the Responsive Corporation 160 Leadership and Business Models 160 A Model of CSR Implementation 162 PART TWO The Nature and Management of Corporate Responsibility Chapter 5 Corporate Social Responsibility 138 Development of Norms and Principles 138 Codes of Conduct 140 Reporting and Verification Standards 142 Certification and Labeling Schemes 142 Management Standards 143 Social Investment and Lending 144 Government Actions 144 Civil Society Vigilance 145 121 Merck & Co., Inc. 121 The Evolving Idea of Corporate Social Responsibility 123 Social Responsibility in Classical Economic Theory 125 The Early Charitable Impulse 125 Social Responsibility in the Late Nineteenth and Early Twentieth Centuries 127 1950 to the Present 129 Basic Elements of Social Responsibility 131 General Principles 133 Are Social and Financial Performance Related? 134 Corporate Social Responsibility in a Global Context 135 The Problem of Cross-Border Corporate Power 136 The Rise of New Global Values 137 CSR Review 163 CSR Strategy 167 Implementation of CSR Strategy 168 Reporting and Verification 171 How Effectively Is CSR Implemented? Corporate Philanthropy 175 Patterns of Corporate Giving 175 Strategic Philanthropy 177 Cause Marketing 179 New Forms of Philanthropy 181 Concluding Observations 183 Case Study: Marc Kasky versus Nike 183 PART THREE Managing Ethics Chapter 7 Business Ethics 194 Bernard Ebbers 194 What Are Business Ethics? 197 Two Theories of Business Ethics 198 174 ste12672_fm_i-xvi.indd Page vii 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29:04:11/MHDQ283:Hirt:202 Table of Contents vii Major Sources of Ethical Values in Business 200 Religion 201 Philosophy 202 Cultural Experience Law 206 204 Factors That Influence Managerial Ethics 212 Leadership 212 Strategies and Policies 214 Corporate Culture 215 Individual Characteristics 218 How Corporations Manage Ethics 220 Ethics and Compliance Programs: An Assessment 227 Concluding Observations 228 Case Study: The Trial of Martha Stewart 229 Chapter 8 Making Ethical Decisions in Business 238 David Geffen 238 Principles of Ethical Conduct 241 The Categorical Imperative 241 The Conventionalist Ethic 242 The Disclosure Rule 243 The Doctrine of the Mean 244 The Ends–Means Ethic 244 The Golden Rule 245 The Intuition Ethic 246 The Might-Equals-Right Ethic 246 The Organization Ethic 247 The Principle of Equal Freedom 248 The Proportionality Ethic 248 The Rights Ethic 249 The Theory of Justice 249 The Utilitarian Ethic 251 Reasoning with Principles 251 Character Development 253 The Neural Basis of Ethical Decisions 253 Probing Ethical Decisions 254 Emotions and Intuition 256 Practical Suggestions for Making Ethical Decisions 257 Concluding Observations 259 Case Studies: Short Incidents for Ethical Reasoning 260 Tangled Webs 264 PART FOUR Business and Government Chapter 9 Business in Politics 271 Paul Magliocchetti and Associates 271 The Open Structure of American Government 275 A History of Political Dominance by Business 277 Laying the Groundwork 277 Ascendance, Corruption, and Reform 278 Business Falls Back under the New Deal 280 Postwar Politics and Winds of Change 281 The Rise of Antagonistic Groups 282 Diffusion of Power in Government 283 The Universe of Organized Business Interests 284 Lobbying 287 Lobbying Methods 288 Power and Limits 290 Regulation of Lobbyists 291 The Corporate Role in Elections 293 Efforts to Limit Corporate Influence 294 The Federal Election Campaign Act 295 Political Action Committees 296 Soft Money and Issue Advertising 298 Reform Legislation in 2002 299 How Business Dollars Enter Elections 301 Concluding Observations 303 Case Study: Citizens United v. Federal Election Commission 304 Chapter 10 Regulating Business 316 The Federal Aviation Administration 316 ste12672_fm_i-xvi.indd Page viii 5/11/11 3:24 PM user-f494 /208/MHBR238/mcc21034_disk1of1/0071221034/mcc21034_pagefiles viii Table of Contents Why Government Regulates Business Flaws in the Market 319 Social and Political Reasons for Regulation Waves of Growth 319 Criticism of the Global Compact 320 320 327 Ascent and Inertia 337 The Regulatory Burden 337 Benefits of Regulations 339 Regulation in Other Nations 340 Concluding Observations 342 Case Study: Good and Evil on the Rails 342 Chapter 11 Multinational Corporations The Coca-Cola Company 352 The Multinational Corporation 395 400 402 The Rise and Fall of Trade 402 A New Postwar Order 404 Success and Evolution 404 The World Trade Organization 406 Regional Trade Agreements 409 Free Trade versus Protectionism PART FIVE Multinational Corporations and Globalization 352 354 A Statistical Perspective 356 How Transnational Is a Corporation? 358 Breaking the Bonds of Country: Weatherford International 359 362 381 Chapter 12 Globalization, Trade, and Corruption 395 Trade Costs and Benefits of Regulation FDI in Developing Economies 379 Concluding Observations 383 Case Study: Union Carbide Corporation and Bhopal 384 McDonald's Corporation Globalization 397 Regulatory Statutes 327 Rulemaking 329 Presidential Oversight 332 Congressional Oversight 334 Challenges in the Courts 335 Foreign Direct Investment The Alien Tort Claims Act 411 Why Free Trade? 411 Why Protectionism? 412 The Politics of Protectionism 413 Free Trade Responses to Protectionism 415 U.S. Deviation from Free Trade Policy 416 Tariff Barriers in Other Countries 416 Corruption 417 A Spectrum of Corruption 418 The Fight Against Corruption 420 The Foreign Corrupt Practices Act 422 Corporate Actions to Fight Corruption 425 Concluding Observations 426 Case Study: David and Goliath at the WTO 427 PART SIX Corporations and the Natural Environment 364 International Codes of Conduct 367 The OECD Guidelines for Multinational Enterprises 369 How the OECD Guidelines Work Vedanta Resources 371 369 375 378 The Drummond Company on Trial Wave 1: The Young Nation 321 Wave 2: Confronting Railroads and Trusts 322 Wave 3: The New Deal 323 Wave 4: Administering the Social Revolution 324 Wave 5: Terrorism and Financial Crisis 325 War Blips 327 How Regulations Are Made The United Nations Global Compact Chapter 13 Industrial Pollution and Environmental Regulation The Majestic Hudson River 436 436 ste12672_fm_i-xvi.indd Page ix 5/11/11 3:24 PM user-f494 /208/MHBR238/mcc21034_disk1of1/0071221034/mcc21034_pagefiles Table of Contents ix Pollution 438 Consumerism Human Health 439 The Biosphere 440 Industrial Activity and Sustainability Ideas Shape Attitudes Toward the Environment 444 New Ideas Challenge the Old 442 In Defense of Consumerism 445 The Consumer’s Protective Shield 447 Principal Areas of Environmental Policy Air 448 Water 458 Land 459 Concluding Observations 463 Case Study: A World Melting Away 464 The Commerce Railyards 476 Regulating Environmental Risk 479 Analyzing Human Health Risks 479 Risk Assessment 480 Risk Management 486 487 491 Command-and-Control Regulation 491 Market Incentive Regulation 492 Voluntary Regulation 498 Managing Environmental Quality Environmental Management Systems A Range of Actions 501 Product Liability 534 Concluding Observations 538 Case Study: Alcohol Advertising 499 500 537 538 PART EIGHT Human Resources Chapter 16 The Changing Workplace Advantages 488 Criticisms 489 Control Options 448 524 525 The Food and Drug Administration (FDA) 526 The Federal Trade Commission (FTC) 527 The Consumer Product Safety Commission (CPSC) 529 The National Highway Traffic Safety Administration (NHTSA) 530 Consumer Protection by Other Agencies 532 Negligence 534 Warranty 535 Strict Liability 536 Costs and Benefits of the Tort System Chapter 14 Managing Environmental Quality 476 Cost–Benefit Analysis 523 Consumerism as a Protective Movement Environmental Regulation in the United States 447 The Environmental Protection Agency 515 Consumerism as an Ideology 515 Consumerism Rises in America 516 Consumerism in Perspective 518 The Global Rise of Consumerism 522 549 Ford Motor Company 549 External Forces Shaping the Workplace 552 Demographic Change 553 Technological Change 555 Structural Change 556 Competitive Pressures 558 Reorganization of Work 560 Concluding Observations 503 Case Study: Harvesting Risk 503 Government Intervention PART SEVEN Consumerism Work and Worker Protection in Japan and Europe 569 Chapter 15 Consumerism Harvey W. Wiley 562 Development of Labor Regulation in the United States 562 Japan 569 Europe 570 512 512 Labor Regulation in Perspective 572 Concluding Observations 572 Case Study: A Tale of Two Raids 575 ste12672_fm_i-xvi.indd Page x 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29:04:11/MHDQ283:Hirt:202 x Table of Contents Chapter 17 Civil Rights, Women, and Diversity 585 PART NINE Corporate Governance The Employment Non-Discrimination Act A Short History of Workplace Civil Rights 587 585 Affirmative Action 598 The Supreme Court Changes Title VII The Affirmative Action Debate 601 602 639 Enron Corp. 640 Other Failures of Governance 644 The Sarbanes-Oxley Act 645 Lehman Brothers 646 The Dodd-Frank Act 650 Boards of Directors 651 Executive Compensation 655 Components of Executive Compensation 655 Problems with CEO Compensation 659 614 Elements of Diversity Programs 599 639 Federal Regulation of Governance Duties of Directors 652 Board Composition 652 Board Dynamics 653 Gender Attitudes at Work 604 Subtle Discrimination 605 Sexual Harassment 607 Occupational Segregation 610 Compensation 612 Diversity 595 597 Executive Order 11246 Women at Work Stockholders 636 Shareholder Resolutions 638 Assessing Shareholder Influence 594 Disparate Treatment and Disparate Impact The Griggs Case 596 630 Mark Hurd 630 What Is Corporate Governance? 633 The Corporate Charter 634 Power in Corporate Governance: Theory and Reality 636 The Colonial Era 588 Civil War and Reconstruction 589 Other Groups Face Employment Discrimination 590 The Civil Rights Cases 591 Plessy v. Ferguson 592 Long Years of Discrimination 593 The Civil Rights Act of 1964 Chapter 18 Corporate Governance 616 Concluding Observations 618 Case Study: Adarand v. Peña 619 Concluding Observations 663 Case Study: High Noon at HewlettPackard 664 ste12672_fm_i-xvi.indd Page xi 5/2/11 9:51 PM user-f497 /Volumes/DATA-DISK/Tempwork/2011/April 2011/29 ...
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