This paper presents an analysis of bluffing in labor negotiations from legal, economic, and ethical perspectives. It is argued that many forms of bluffing in labor negotiations are legal and economically advantageous, but that they typically constitute lying. Nevertheless it is argued that it is generally morally acceptable to bluff given a typical labor-management relationship where one's negotiating partner is familiar with and most likely employing bluffing tactics him/herself. We also consider whether it is an indictment of our present negotiating (...) practices and our economic system as a whole that, given the harsh realities of the marketplace, bluffing is usually morally acceptable. (shrink)

This paper examines several issues regarding deception in advertising. Some generally accepted definitions are considered and found to be inadequate. An alternative definition is proposed for legal/regulatory purposes and is related to a suggested definition of the term deception as it is used in everyday language. Based upon these definitions, suggestions are offered for detecting and regulating deception in advertising. This paper additionally considers the grounds for the generally held but largely unquestioned assumption that deceptive advertising is unethical. It is (...) argued that deceptive advertising can be shown to be morally objectionable, on the weak assumption that it is prima facie wrong to harm others. Finally, the implications of this analysis with respect to current regulation of deceptive advertising by the FTC are considered. (shrink)

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders’ interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

Disputes regarding the ethics of work by children have intensified in recent years, with little resolution. The impasses stem from failure to recognize the diverse forms of child work and a lack of empirical research regarding its causes and consequences. We report on data gathered in Brazil’s export-oriented shoe industry, which is notorious for the employment of children. Central findings are: 1) the causes of child work have less to do with backwardness and more to do with how shoe workers (...) are integrated into the global order; 2) local employers and children regard this work as benign, but the U.S. government sees it as hazardous to children and unfair to U.S. producers; 3) efforts to remove children from the shoe industry have been frustrated by local resistance and raise ethical questions; and 4) in certain circumstances, efforts to eliminate hazards from the workplace are morally superior to campaigns to remove childworkers from employment. (shrink)

Increasing university students’ engagement with ethics is becoming a prominent call to action for higher education institutions, particularly professional schools like business and engineering. This paper provides an examination of student attitudes regarding ethics and their perceptions of ethics coverage in the curriculum at one institution. A particular focus is the comparison between results in the business college, which has incorporated ethics in the curriculum and has been involved in ethics education for a longer period, with the engineering college, which (...) is in the nascent stages of developing ethics education in its courses. Results show that student attitudes and perceptions are related to the curriculum. In addition, results indicate that it might be useful for engineering faculty to use business faculty as resources in the development of their ethics curricula. (shrink)

Disputes regarding the ethics of work by children have intensified in recent years, with little resolution. The impasses stem from failure to recognize the diverse forms of child work and a lack of empirical research regarding its causes and consequences. We report on data gathered in Brazil’s export-oriented shoe industry, which is notorious for the employment of children. Central findings are: 1) the causes of child work have less to do with backwardness and more to do with how shoe workers (...) are integrated into the global order; 2) local employers and children regard this work as benign, but the U.S. government sees it as hazardous to children and unfair to U.S. producers; 3) efforts to remove children from the shoe industry have been frustrated by local resistance and raise ethical questions; and 4) in certain circumstances, efforts to eliminate hazards from the workplace are morally superior to campaigns to remove childworkers from employment. (shrink)

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders' interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

In recent years, the biopharmaceutical industry has seen an increase in the development of so-called orphan drugs for the treatment of rare and neglected diseases. This increase has been spurred on by legislation in the United States, Europe, and elsewhere designed to promote orphan drug development. In this article, we examine the drivers of corporate social responsibility (CSR) activities in orphan drug markets and the extent to which biopharmaceutical firms engage in these activities with a strategic orientation. The unique context (...) of orphan drugs constitutes a research opportunity to test the applicability of existing theoretical perspectives on CSR and strategic CSR. Using Schwartz and Carroll’s (Bus Ethics Q, 13(4):503–530, 2003) three-domain approach to CSR and the literature on strategic CSR as a theoretical background, we employ a combination of semi-structured interviews and a quantitative website content analysis to study practices of biopharmaceutical firms in the United States and European Union. Our findings show that both US- and EU-based companies engaged in orphan drugs development perceive their involvement as a responsible business activity beyond the economic dimension of CSR. However, for the majority of these companies their CSR activities do not qualify as strategic according to the criteria established in the literature. We also find significant differences between larger and smaller firms in their use of CSR. Based on these findings, we make several suggestions regarding orphan drug legislation and other measures that might help firms exploit strategic CSR benefits. (shrink)

Originated in the West, stakeholder theory is normatively anchored in Western value systems. Differences in value orientations and ethical systems in this global age call for culturally pertinent stakeholder theory. In this article, we argue that Confucianism forms an additional normative basis for stakeholder theory, appropriate for a Confucian context. We demonstrate it through application of Confucianism in major stakeholder relationships. The Confucian stakeholder theory provides a meaningful addition to the corpus of stakeholder literature.

The business landscape today is characterized by looming global challenges like natural disasters, war, and industrial accidents throughout the world. However, there is limited research on describing how businesses operate and cope in extreme environments and whether principles of ethical decision-making can be used as guidelines in such situations. To address this gap we describe and analyze organizational and business responses to three different extreme environments, namely the fall 2012 Gaza conflict, Hurricane Katrina in New Orleans, and the so-called triple (...) disasters in Japan on March 11, 2011. We discuss moral issues surrounding helping one another with specific reference to criteria called the Kew Garden Principles and strategic corporate social responsibility. We conclude the paper with managerial and leadership implications for ethical decision-making in extreme situations. (shrink)

This case deals with the corporate response to a crisis and the successful evacuation of approximately 900 hotel guests, staff, and family members of staff whowere stranded in the Fairmont New Orleans hotel by Hurricane Katrina. This rescue effort, spearheaded by managers at the sister Fairmont hotel in Dallas, Texas, was completed shortly after 12 a.m. on Friday, September 2, 2005, when the last bus with evacuees pulled into the Dallas Fairmont after making a round trip of more than 1000 (...) miles — and about 64 hours after planning began. This case is particularly significant for lessons that may be derived about crisis management and leadership, and it also raises several interesting ethical issues. The case, which relies on field research plus secondary sources, is appropriate for business ethics and business strategy courses. (shrink)

Today’s business students are tomorrow’s business leaders. To ensure they have skills in creating profitable, pro-social, ethical organizations, we need to consider alternative methods of teaching CSR. In this proposed symposium, we will present different approaches to international CSR/Service-Learning.

This issue of Business & Society contains the transcripts of 12 oral history interviews with founders of and early contributors to the business and society/social issues in management field. The publication of these interviews is the culmination of a very long-term project, with the first interview having been conducted in 1993 with Lee Preston and the most recent interview having been conducted in 2011 with Jim Post. This project has been very much of a team effort with Sandra Waddock, John (...) Steiner, Mary Mallott, Ariane Berthoin Antal, and, of course, our interviewees all playing important roles. (shrink)