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BusinessEthics商業(yè)倫理Chapter1OutlineofBusinessEthics新視界商務(wù)英語系列教材LearningObjectives1.
Analyzeethicaldilemmas.2.Explaintheroleofbusinessesethics.3.Describethebasicnatureofbusinessethics.4.Evaluatethefoundationsofbusinessethics.5.Differentiatebetweenmoralandnon-moralstandardsandnorms.6.Identifytypesofstakeholders.7.Brainstormtherelationshipbetweenbusinessethicsandlaw.8.Discusstherelationshipbetweenbusinessethicsandcorporatesocialresponsibility.目錄01Mini-case02OutlineofBusinessEthics03CaseStudy04ChineseEthicalCultureCONTENTS05Exercises06ReferencesMini-caseIn2015,theformerownerofthePeanutCorporationofAmerica,StewartParnell,wassentencedto28yearsinprisonwhenfoundguiltyofmultiplefelonycountsforconspiringtohidethathiscompany’sproductshadsalmonellacontamination.Overatwo-yearperiod,ninepeoplediedand700customersbecameseriouslyillfromconsumingthecompany’sfood.UnderParnell’sdirection,PeanutCorporationexecutivesfalsifiedlabtestresultsontheirproducts,explicitlystatingthatthefoodwassafetoeat.QuestionAretheactionstakenbytheownerofthePeanutCorporationethical?ReferenceKeytotheQuestionsofMini-caseQuestion:AretheactionstakenbytheownerofthePeanutCorporationethical?No,theactionstakenbytheownerofthePeanutCorporationarenotethical.Thereasonsareasfollows.Inashortsightedefforttosavethecompany,StewartParnellcausedinjuryordeathtohundredsofpeople,violatedcustomers’righttosafety,andbreachedtheirtrustinthecompany.Furthermore,theactionstakenbyexecutivesatthePeanutCorporationwerealsohighlyunethicalduetohisorders.TheseverityandbreadthoftheeffectsofParnell’sdecisionscontributedtohislongprisonsentence.OutlineofBusinessEthics1.DefinitionsofEthicsEthicsaretheinner-guidingmoralprinciples,values,andbeliefsthatcontrolorinfluence
aperson’sbehavior.Peopleuseethicstoanalyzeorinterpretasituationandthendecidewhatisthe“right”orappropriatewaytobehave.Atthesametime,ethicsalsoindicatewhatisinappropriatebehaviorandhowapersonshouldbehavetoavoiddoingharmtoanotherperson.Ethicalprinciplesareguidestomoralbehavior.OutlineofBusinessEthicsExamplesofUnethicalBehaviorsForexample,nostatuteinanystateinAmericamakesitacrimeforsomeonetocutinlineinordertosavethewaitingtimeinvolvedbygoingtotheendoftheline.Butweallviewthosewho“takecutsinline”withdisdain.Wesneeratthosecarsthatsneakalongthesideoftheroadtogetaroundalineoftrafficaswesitandwaitourturn.Weresentthosewhotrompuptothecashregisterinfrontofus,ignoringthefactthatweweretherefirstandthatourtimeisvaluabletoo.Ifyouhaveeverresentedalinecutter,thenyouunderstandethicsandhaveappliedethicalstandardsinlife.Waitingyourturninlineisanexpectationsocietyhas.OutlineofBusinessEthics2.DefinitionsofBusinessEthicsBusinessethicsinvolvesfollowingasetofprincipleswhenconductingbusiness.Businessethicsistheapplicationofgeneralethicalideastobusinessbehavior.Businessethicsisnotaspecialsetofethicalideasdifferentfromethicsingeneralandapplicableonlytobusiness.
Ifdishonestyisconsideredtobeunethicalandimmoral,thenanyoneinbusinesswhoisdishonestwithstakeholders—employees,customers,suppliers,shareholdersorcompetitors—isactingunethicallyandimmorally.Ifprotectingothersfromharmisconsideredtobeethical,thenacompanythatrecallsadangerouslydefectiveproductisactinginanethicalway.OutlineofBusinessEthicsExamplesofUnethicalBusinessBehaviorsTheEthicsandComplianceInitiativehastrackedobservationsofunethicalbehaviorintheworkplacesince2000.Itsreportsshowthatconsistentlyabouthalfofallemployees’surveyedreportobservingunethicalpracticesatwork,yearafteryear.In2017,employeesstatedthatlyingtoemployeesandexternalstakeholderswasthemostcommonunethicalpracticetheyobserved(26%),followedbyabusivebehavior(21%),Internetabuse(16%),andconflictsofinterestandhealthviolations(eachat15%).Thisreportimpliesthatpressureonmanagerstoactunethicallyremainsaseriousproblemforbusinesses.TheInstituteforLeadershipandManagementreportedthat63percentofmanagerssaidtheywereexpectedtobehaveunethicallyatsomepointintheircareers.OutlineofBusinessEthics3.EthicalDilemmasTypesofEthicalDilemmasAccordingtoExchange,themagazineoftheBrighamYoungUniversitySchoolofBusiness,therearetwelvecategoriesofethicaldilemmas.1)
TakingThingsThatDon’tBelongtoYou2)
SayingThingsYouKnowAreNotTrue3)
GivingorAllowingFalseImpressions4)
BuyingInfluenceorEngaginginConflictofInterest5)
HidingorDivulgingInformationOutlineofBusinessEthics6)
TakingUnfairAdvantage7)
CommittingActsofPersonalDecadence8)
PerpetratingInterpersonalAbuse9)
PermittingOrganizationalAbuse10)
ViolatingRules11)
CondoningUnethicalActions12)
BalancingEthicalDilemmasInthesetypesofsituations,therearenorightorwronganswers;rather,therearedilemmastoberesolved.OutlineofBusinessEthicsExampleofEthicalDilemmasSupposeyouseeapersonbeingmuggedinthestreet.Howwillyoubehave?Willyouactinsomewaytohelp,eventhoughyouriskbeinghurt?Willyouwalkaway?Willyoumightadopta“middleway”andnotintervenebutcallthepolice?Doesthewayyouactdependonwhetherthepersonbeingmuggedisafitmale,anelderlyperson,orevenastreetperson?Doesitdependonwhetherthereareotherpeoplearound,soyoucantellyourself,“Ohwell,someoneelsewillhelporcallthepolice.Idon’tneedto”?OutlineofBusinessEthics4.TheRoleofEthicsandSocialResponsibilityinBusinessSocietyisincreasinglydemandingthatbusinesspeoplebehaveethicallyandsociallyresponsiblytowardnotonlytheircustomersbutalsoemployees,investors,governmentregulators,communities,andthenaturalenvironment.Noareaismoredebatedasonlinepiracy.Software,music,andfilmexecutiveswanttodefendtheirintellectualproperty.Ontheotherhand,companiessuchasGoogleareconcernedthatstrictlawswouldstifleinnovationandenablecensorship.Whenactionsareheavilycriticized,abalanceisusuallyrequiredtosupportandprotectvariousstakeholders.OutlineofBusinessEthicsWhileoneviewisthatethicsandsocialresponsibilityareagoodsupplementtobusinessactivities,thereisanalternativeviewpoint.Researchhasshownthatethicalbehaviorcannotonlyenhanceacompany’sreputationbutcanalsodriveprofits.
Thereisgrowingrecognitionthatthelong-termvalueofconductingbusinessinanethicalandsociallyresponsiblemannerthatconsiderstheinterestsofallstakeholderscreatessuperiorfinancialperformance.Topromotesociallyresponsibleandethicalbehaviorwhileachievingorganizationalgoals,businessescanmonitorchangesandtrendsinsociety’svalues.Businessesshoulddeterminewhatsocietywantsandattempttopredictthelong-termeffectsoftheirdecisions.Whileitrequiresanefforttoaddresstheinterestsofallstakeholders,businessescanprioritizeandattempttobalanceconflictingdemands.Thegoalistodevelopasolidreputationoftrustandavoidmisconducttodevelopeffectiveworkplaceethics.OutlineofBusinessEthics5.TheNatureofBusinessEthicsBusinessethicsisthestudyofwhatconstitutesrightandwrong,orgoodandbad,
humanconductinabusinesscontext.Businessethicsisaformofappliedethics.Itnotonlyincludestheanalysisofmoralnormsandmoralvaluesbutalsotriestoapplytheconclusionsofthisanalysistotheinstitutions,organizations,andactivitiesthatwecallbusiness.Businessethicalissuesarecentraltothewaycompaniesandtheirmanagersmakedecisions,andtheyaffectnotonlytheefficiencyandeffectivenessofthewaycompaniesoperatebutalsotheprosperityofanation.Theresultofbusinessethicalbehaviorisageneralincreaseincompanyperformanceandinanation’sstandardofliving,well-being,andwealth.OutlineofBusinessEthics6.FoundationsofBusinessEthics
Moralvirtuesarethefoundationsofbusinessethics.Amoralvirtueisanacquireddispositionthatisvaluedaspartofthecharacterofamorallygoodhumanbeingandthatisexhibitedintheperson’shabitualbehavior.Apersonhasamoralvirtuewhenheisdisposedtobehavehabituallyasamorallygoodpersonwouldbehave,andwiththereasons,feelings,anddesiresthatarecharacteristicofamorallygoodperson.Honesty,forexample,isavirtueofmorallygoodpeople.
Moreover,amoralvirtuemustbeacquiredandisnotjustanaturalcharacteristicsuchasintelligence,beauty,ornaturalstrength.Amoralvirtueispraiseworthy,inpart,becauseitisanachievement—itsdevelopmentrequireseffort.Thefollowingarethekeyvirtuesinbusiness.
No.VirtueStandardDefinition1AbilityBeingdependableandcompetent2CaringWorryingaboutthewell-beingofothersdespitepower3CompassionSympathetic4DeterminationSeeingataskthroughtocompletion5FairnessGivingotherstheirdue;creatingharmony6GenerositySharing;enhancingothers’well-being7GratitudeGivingpropercredit8HonestyTellingthetruth;notlying9IndependenceGettingthingsdonedespitebureaucracy10IntegrityBeingamodeloftrustworthiness11JusticeTreatingothersfairly12LoyaltyWorkingforthewell-beingofanorganization13PrideBeingadmiredbyothers14ResponsibilityDoingwhatittakestodotherightthing15TrustworthinessFulfillingone’sresponsibilitiesOutlineofBusinessEthics7.
MoralandNon-moralStandardsandNormsMoralStandardsandNormsMoralstandardsincludethenormswehaveaboutthekindsofactionswebelievearemorallyrightandwrong,aswellasthekindsofthingswebelievearemorallygoodormorallybad.Moralnormscanusuallybeexpressedasgeneralrulesaboutouractions.Theseareexamplesofgeneralrulesthatexpressmoralnorms:“Alwaystellthetruth,”“It’swrongtokillinnocentpeople,”and“Actionsarerighttotheextentthattheyproducehappiness.”O(jiān)utlineofBusinessEthicsNon-moralStandardsandNormsMoralstandardscanbecontrastedwithnormsorstandardsweholdaboutthingsthatarenotmoral.Examplesofnon-moralstandardsandnormsincludethestandardsofetiquettebywhichwejudgepeople’smannersasgoodorbad,therulesofbehaviorsetbyparents,teachers,orotherauthorities,thenormswecallthelawbywhichwedeterminewhatislegallyrightandwrong,thestandardsoflanguagebywhichwejudgewhatisgrammaticallyrightandwrong,thestandardsofartbywhichwejudgewhetherapaintingorasongisgoodorbad,andthesportsstandardsbywhichwejudgehowwellagameoffootballorbasket-ballisbeingplayed.Infact,wheneverwemakejudgmentsabouttherightorwrongwaytodothings,orjudgmentsaboutwhatthingsaregoodandbad,orbetterandworse,ourjudgmentsarebasedonstandardsornormsofsomekind.OutlineofBusinessEthicsSixCharacteristicsofMoralStandards●Moralstandardscoverseriousmatters.●Moralstandardsarepreferredoverothervalues.●Moralstandardsareindependentofauthority.●Moralstandardsareuniversal.●Moralstandardsareimpartial.●Moralstandardsareassociatedwithspecialemotions(suchasguiltandremorse)andvocabulary(suchasobligation,rights,justice).OutlineofBusinessEthicsTheDifferencebetweenMoralandNon-moralStandardsHowdowedistinguishbetweenmoralandnon-moralstandards?Let’slookatthefollowingtable.No.moralstandardsnon-moralstandards1Donotharmotherpeople.Donoteatwithyourmouthopen.2Donotstealwhatbelongstoothers.Donotchewguminclass.3Donotlietootherpeople.Donotwearsocksthatdonotmatch.OutlineofBusinessEthics8.
StakeholdersDefinitionsofStakeholdersAstakeholderisanyindividualorgroupwhocanaffectorisaffectedbytheactions,decisions,policies,practices,orgoalsoftheorganization.Thepeopleandgroupsaffectedbythewayacompanyanditsmanagersbehavearecalledstakeholders.Stakeholderssupplyacompanywithitsproductiveresources;asresult,theyhaveaclaimonandstakeinthecompany.Sincestakeholderscandirectlybenefitorbeharmedbyitsactions,theethicsofacompanyanditsmangersareimportanttothem.OutlineofBusinessEthicsTypesofCompanyStakeholders1)
Stockholders:
Stockholdershaveaclaimonacompanybecausewhentheybuyitsstockorsharestheybecomeitsowners.2)
Managers:Managersarevitalstakeholdergroupbecausetheyareresponsibleforusingacompany’sfinancialcapitalandhumanresourcestoincreaseitsperformanceandthusitsstockprice.3)
Employees:Acompany’semployeesarethehundredsofthousandsofpeoplewhoworkinitsvariousdepartmentsandfunctions,suchasresearch,sales,andmanufacturing.4)
Suppliers:Suppliersarethecompany’sgoodsandservicessupplierssuchasrawmaterials,components,contractlabor,andclients.OutlineofBusinessEthics5)
Customers:Customersareoftenregardedasthemostcriticalstakeholdergroupsinceifacompanycannotattractthemtobuyitsproducts,itcannotstayinbusiness.6)
Community:Communityreferstophysicallocationliketownsorcitiesinwhichcompaniesarelocated.Acommunityprovidesacompanywiththephysicalandsocialinfrastructurethatallowsittooperate;itsutilitiesandlaborforce;thehomesinwhichitsmanagerandemployeeslive;theschools,colleges,andhospitalsthatservicetheirneeds;andsoon.7)Society:Society,initsbroadestsense,referstohumanbeingsandtothesocialstructurestheycollectivelycreate.Inamorespecificsense,thetermisusedtorefertosegmentsofhumankind,suchasmembersofaparticularcommunity,nation,orinterestgroup.Asasetoforganizationscreatedbyhumans,businessisclearlyapartofsociety.OutlineofBusinessEthics9.
TheRelationshipbetweenBusinessEthicsandLawOncealawispassed,adecisionaboutwhattheappropriatebehavioriswithregardtoapersonorsituationistakenfromthepersonallydeterminedethicalrealmtothesociallydeterminedlegalrealm.Ifyoudonotconformtothelaw,youcanbeprosecuted;andifyouarefoundguiltyofbreakingthelaw,youcanbepunished.Youhavelittlesayinthematter;yourfateisinthehandsofthecourtanditslawyers.Neitherlawsnorethicsarefixedprinciples.Theycanchangeovertime.Ethicalbeliefsalterandchangeastimepasses,andastheydoso,lawschangetoreflectthechangingethicalbeliefsofasociety.Itwasseenasethical,anditwaslegal,forexample,toacquireandpossessslavesinancientRomeandGreeceandintheUnitedStatesuntilthelate19thcentury.OutlineofBusinessEthics9.
TheRelationshipbetweenBusinessEthicsandLawChangesinEthicsandLawsoverTimeWhileethicalbeliefsleadtothedevelopmentoflawsandregulationstopreventcertainbehaviorsorencourageothers,lawsthemselvescananddochangeorevendisappearasethicalbeliefschange.InBritainin1830therewereover350differentcrimesforwhichapersoncouldbeexecuted,includingsheepstealing.Todaytherenone;capitalpunishmentandthedeathpenaltyarenolongerlegalinBritain.Thus,bothethicalandlegalrulesarerelative:Noabsoluteorunvaryingstandardsexisttodeterminehowweshouldbehave,andpeoplearecaughtupinmoraldilemmasallthetime.Becauseofthis,wehavetomakeethicalchoices.OutlineofBusinessEthics10.TheRelationshipbetweenBusinessEthicsandMoralityMoralityisthestandardsthatanindividualoragrouphasaboutwhatisrightandwrong,orgoodandevil.Businessethicsisaparticularkindofethics:Itisthestudyofthemoralstandardsthatshouldguidebusinessactivities,anditaimstodevelopstandardsthatarereasonabletoapplyinbusiness.11.TheRelationshipbetweenBusinessEthicsandCorporateSocialResponsibility(CSR)?
Businessethicsrefertoanindividual’soraworkgroup’sdecisionsthatsocietyevaluatesasrightorwrong.?
Socialresponsibilityisabroaderconceptthatconcernstheimpactoftheentirebusiness’sactivitiesonsociety.OutlineofBusinessEthics11.TheRelationshipbetweenBusinessEthicsandCorporateSocialResponsibility(CSR)Thesocialresponsibilityofbusinessencompassestheeconomic,legal,ethical,anddiscretionaryexpectationsthatsocietyhasoforganizations.Beingethicalisoneoftheobligationscompaniesowetosociety.Inthisrespect,businessethicsisapartofCSR.CSR,then,isthelargermoreinclusivenotion,andbusinessethicsisjustonepartofthislargernotion.Inadditiontoitsethicalobligations,acompany’sCSRincludesthoselegalobligations,economiccontributions,andthose“discretionary”orphilanthropiccontributionssocietyexpectsfromcompanies.OutlineofBusinessEthics12.WhyIsEthicalBehaviortheBestLong-termBusinessStrategyforaCompany?Acceptanceofthisviewdoesnotmeanthatoccasionsneverarisewhendoingwhatisethicalwillprovecostlytoacompany.Suchoccasionsarecommoninthelifeofacompany.Nordoesitmeanthatethicalbehaviorisalwaysrewardedorthatunethicalbehaviorisalwayspunished.Onthecontrary,unethicalbehaviorsometimespaysoff,andthegoodguysometimesloses.Tosaythatethicalbehavioristhebestlong-rangebusinessstrategyjustmeansthat,overthelongrunandforthemostpart,ethicalbehaviorcangiveacompanysignificantcompetitiveadvantagesovercompaniesthatarenotethical.Beingethicalisagoodbusinessstrategy.Abitofreflectiononhowconsumersandemployeesrespondtocompaniesthatbehaveunethicallyshowsthatunethicalbehaviorleadstoalossofcustomerandemployeesupport.OutlineofBusinessEthics13.WhydoCompaniesBehaveSociallyResponsible?Therearethreeadvantageswhencompaniesbehaveinasociallyresponsiblemanner.First,demonstratingitssocialresponsibilityhelpsacompanybuildagoodreputation.Reputationisthetrust,goodwill,andconfidenceothershaveinacompanythatleadsthemtowanttodobusinesswithit.Therewardsforagoodcompanyreputationareincreasedbusinessandimprovedabilitytoobtainresourcesfromstakeholders.Reputationthuscanenhanceprofitabilityandbuildstockholderwealth.Therefore,behavingsociallyresponsiblyistheeconomicallyrightthingtodobecausecompaniesthatdosobenefitfromincreasingbusinessandrisingprofits.OutlineofBusinessEthicsSecond,companiesaswellasthegovernmenthavetobearthecostsofprotectingtheirstakeholders,providinghealthcareandincome,payingtaxes,andsoon.So,ifallcompaniesinasocietyactsocially,thequalityoflifeasawholeincreases.Finally,howcompaniesbehavetowardtheiremployeesdeterminesmanyofasociety’svaluesandnormsandtheethicsofitscitizens.Ithasbeensuggestedthatifallorganizationsadoptedacaringapproachandagreedthattheirresponsibilityistopromotetheinterestsoftheiremployees,aclimateofcaringwouldpervadethewidersociety.Inaword,businessactivityaffectsallaspectsofpeople’slives,sothewaybusinessbehavestowardstakeholdersaffectshowstakeholderswillbehavetowardbusiness.You“reapwhatyousow,”astheadagegoes.CaseStudyBoeingandtheRecruitingoftheGovernmentPurchasingAgent
DarleneDruyunwasalifetimegovernmentemployee,workingherwayupthroughthesystemtoapositionofAirForceacquisitionofficer.ShehadrisentothepositionofprincipaldeputyassistantsecretaryintheU.S.AirForce.Knownasthe“DragonLady,”Ms.DruyunhadextensiveknowledgeaboutDefenseDepartmentpoliciesandproceduresanddefensecontractorsandhadhonedtoughnegotiatingskills.Inthelastquarterof2002,Ms.Druyun,nearingherretirement,wasinterestedinjobopportunitiesafterleavinggovernmentservice.
Ms.Druyun’sdaughter,HeatherMcKee,wasanemployeeattheSt.LouisfacilitiesforBoeing,Inc.,acompanythatdoesasignificantamountofbusiness
CaseStudywiththefederalgovernment.Incourtdocuments,Ms.DruyunindicatedthatMichaelSears,Boeing’schieffinancialofficer(CFO)andthemanconsideredtobeinlinetobethenextBoeingCEO,helpedplaceherdaughterinherjobatBoeing.Ms.McKee’shusbandalsoworkedforBoeingandwashiredalongwithMs.McKeewhenhewasherfiancé.InSeptember2002,Ms.McKeesentane-mailtoMr.Searstolethimknowthathermotherwasplanningtoretire.Ms.McKeementionedtoMr.SearsthathermotherwouldprobablyendupworkingforLockheedfollowingherretirementfromhergovernmentposition,butthatMs.DruyunreallywantedtoworkforBoeing.
Asaresultofthiscontact,Mr.SearsmetwithMs.DruyuninOctober2002,whichwasonemonthbeforeMs.DruyunrecusedCaseStudyherselffromworkingon
anycontractdecisionsinvolvingBoeingasabidder.Attheendofthemeeting,Ms.Druyunhastestified,Mr.Searssaid,“Thismeetingnevertookplace.”Whenhereturnedtotheoffices,however,Mr.Searssentoute-mailsindicatingthatMs.Druyunwasreceptivetoemployment.Inanotesenttothechairman’soffice,Mr.Searswrote,“Hada‘non-meeting’yesterday.Goodreceptiontojob,location,salary.”
InOctober2002,thetworeachedanemploymentarrangement.InJanuary2003,Ms.DruyunwenttoworkforBoeinginitsChicagoofficesasavicepresidentatasalaryof$250,000peryear,plusbenefits.PendingbeforetheAirForceatthetimeoftheemploymentagreementwasabidbyBoeingtosupplytheAirForcewith100Boeing767refuelingtankers.Alsoduringthistime,JohnJudy,aBoeinglawyerwhowasmovingfromBoeingofficesinSt.LouistotheWashington,D.C.,area,purchasedMs.Druyun’shomefromher.CaseStudy
Duringthesummerof2003,BoeingbegananinternalinvestigationofthecircumstancessurroundingMs.Druyun’shiring.Ms.DruyunandMr.Searsexchangedmemosande-mailswithatimelinethattheyhadreconstructedbutonethatdidnotreflectaccuratelywhathadreallyhappenedandwhatwaseasilytraceablethroughmeetingplacesandwitnesses.Basedonitsinternalinvestigationthatrevealed“compellingevidence”thatthetwohadconspiredtoemployMs.Druyunwhileshestillhadcontractingauthorityandtheirsubsequentattemptstocoveruptheirconduct,BoeingdismissedbothMs.DruyunandMr.Sears.Theirdismissalforcausecostthemanyseverancebenefits.
Ms.Druyunwaschargedbythefederalgovernmentwithviolationsofprocurementstatutesandconspiracy.SheenteredaguiltypleatoconspiracyinApril2004andtoldthecourt,“IdeeplyregretmyactionsandIwanttoCaseStudyapologize.”Ms.Druyunwasoriginallyscheduledtobesentencedtosixmonthsinprison,becauseshehadagreedtocooperatewithfederalinvestigators.However,shewasultimatelysentencedtoninemonthsbecausefederalinvestigatorsestablishedthatshehadliedwhenaskedwhethershehadevershowedfavoritismtoBoeinginawardingdefensecontracts.Sheinitiallystatedthatshehadnotshownsuchfavoritism,but,afterfailingaliedetectortest,shedisclosedthatshehadgivenBoeingseveralcontractsandpricingbreaksinexchangeforBoeinghiringherdaughterandson-in-law.ThesupplementalfactualstatementforhersecondpleaagreementalsoindicatesthatMs.Druyunalteredhernotebook,thecollectionofcontemporaneousnotesshehadgiventoprosecutors.Afterfailingtheliedetectortest,sheacknowledgedchangingentriesandaddingmaterials.ShealsoindicatedthatshegaveBoeingpricingbreakswiththehopeofhelpingherdaughterandson-in-lawwiththeircareersatBoeing.ShealsoindicatedthatshehadapprovedasettlementwithBoeingthatwastoohigh.BoeingandtheDepartmentofDefenserenegotiatingthatsettlement.Then–BoeingCEOHarryStonecipherpledgedthatthecompanywouldaddress“anyinadequaciesthatneedtobecorrected.”Ms.Druyun’sdaughternolongerworksforBoeing.Mr.Searsservedafour-monthsentence,andMs.Druyunservedanine-monthsentence.Ms.Druyunhasalsobeenorderedtopayrestitutionandcontributetimetocommunityservice.Ms.DruyunwasreleasedfromprisoninOctober2005.DiscussionQuestions1.What’swrongwithMs.Druyunintermsofbusinessethics?2.What’swrongwithMr.Searsintermsofbusinessethics?3.What’swrongwithHeatherMcKeeintermsofbusinessethics?ReferenceKeytotheQuestionsofCaseStudy1.What’swrongwithMs.Druyunintermsofbusinessethics?Ms.Druyunwasfacingretirementandwaslookingforajobandincome.Sheforgottoconsiderissuessuchasthelong-termimpactofthisbehavioronherprospectsforemploymentaswellasonherfuture.HerconductswerenotjustunethicalasaconflictofinterestbutalsoviolatedtheUSfederallaw.Shemayhavethoughtthatshewassimplyusinghercontacts,buttobeabletousethosecontactsshehadtoeliminateherconflictofinterest.Shefocusedontheshortterm,notthelongterm.Inaword,Ms.DruyunusedherpowerandinfluencetogetthebenefitsfromBoeing.Herbehaviorswereagainstthebusinessethics.ReferenceKeytotheQuestionsofCaseStudy2.What’swrongwithMr.Searsintermsofbusinessethics?Mr.Sears’scompanywasintightcompetitionforamajorcontractandMs.Druyunhadinfluenceandpoweroverthatdecision.Havingherknowthatajobawaitedherwas,hefelt,awayofensuringBoeinggettingthecontract.However,hefailedtoapplythesimplequestionofwhethertheconductwaslegal.HedidnotanalyzetheconflictofinterestanddidnotconsidertheimpacttohisreputationandBoeing’s.Theconductprovedpersonallydestructiveforhim,Ms.Druyun,andothers.Thatnotionofdistrustandcorruptioncreepsintoperceptionsaboutcorporationsandgovernmentwhenthiskindofethicalindiscretionemerges.Therefore,hisconductswereoutofbusinessethics.ReferenceKeytotheQuestionsofCaseStudy3.What’swrongwithHeatherMcKeeintermsofb
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