PART 2: ETHICAL ISSUES AND
THE INSTITUTIONALIZATION
OF BUSINESS ETHICS 57
Chapter 3: Emerging Business Ethics Issues 58
Chapter Objectives, 59 | Chapter Outline, 59
An Ethical Dilemma 59
Recognizing an Ethical Issue 62
Honesty, 63tFairness, 64tIntegrity, 65
Ethical Issues and Dilemmas in Business 65
Misuse of Company Resources, 66t Abusive
or Intimidating Behavior, 67tLying, 69t
Conflicts of Interest, 70tBribery, 70tCorporate
Intelligence, 71tDiscrimination, 72, tSexual
Harassment, 74 tEnvironmental Issues, 75t
Fraud, 78tConsumer Fraud, 81 tFinancial
Misconduct, 81tInsider Trading, 83 tIntellectual
Property Rights, 83 t Privacy Issues, 84
The Challenge of Determining an Ethical Issue
in Business 85
Summary 86
Important Terms For Review, 87 | Resolving
Ethical Business Challenges, 88 | Check Your
EQ, 89
Chapter 4: The Institutionalization
of Business Ethics 90
Chapter Objectives, 91 | Chapter Outline, 91
An Ethical Dilemma 91
Managing Ethical Risk Through Mandated
and Voluntary Programs 94
Mandated Requirements for Legal Compliance 95
Laws Regulating Competition, 97tLaws
Protecting Consumers, 100 tLaws Promoting
Equity and Safety, 101tLaws Protecting the
Environment, 103
Gatekeepers and Stakeholders 106
Accountants, 107tR isk Assessment, 107
The Sarbanes–Oxley (Sox) Act 108
Public Company Accounting Oversight
Board, 109tAuditor and Analyst
Independence, 109tWhistle-Blower
Protection, 110tCost of Compliance, 110
Dodd–Frank Wall Street Reform and Consumer Protection Act 110
New Financial Agencies, 111tConsumer Financial
Protection Bureau, 111tWhistle-blower Bounty
Program, 112
Laws That Encourage Ethical Conduct 112
Federal Sentencing Guidelines for
Organizations 114
Highly Appropriate Core Practices 116
Voluntary Responsibilities, 117t Cause-Related
Marketing, 118tStrategic Philanthropy, 118
The Importance of Institutionalization in
Business Ethics 119
Summary 120
Important Terms For Review, 121 | Resolving
Ethical Business Challenges, 122 | Check Your
EQ, 124
PART 3: THE DECISION-
MAKING PROCESS 125
Chapter 5: Ethical Decision Making
and Ethical Leadership 126
Chapter Objectives, 127 | Chapter Outline, 127
An Ethical Dilemma 127
A Framework for Ethical Decision Making
in Business
128
Ethical Issue Intensity, 129tIndividual
Factors, 130tOrganizational Factors, 132 t
Opportunity, 134tBusiness Ethics Evaluations
and Intentions, 136
Using the Ethical Decision-Making Framework
to Improve Ethical Decisions 137
The Role of Leadership in a Corporate
Culture 138
Leadership Styles Influence Ethical Decisions 139
Habits of Strong Ethical Leaders 141
Ethical Leaders Have Strong Personal
Character, 142tEthical Leaders Have a
Passion to Do Right, 142tEthical Leaders
Are Proactive, 142 t Ethical Leaders Consider
Stakeholders’ Interests, 143tEthical Leaders
Are Role Models for the Organization’s
vi Contents
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