In this textbook we examine the extent to which moral values play a role as productive forces for companies and the economy as a whole, and explores the effect of ethical and unethical behavior at both levels. We show how ethics improves productivity, and provide specific ethics tools for practical application for both students and managers. Stemming from an overall interdisciplinary approach, this textbook fills a gap in the literature on ethics in business. Following a textbook structure, we first derive knowledge from scientific studies that are relevant for students, and then summarize the results. We explain ethical assessment approaches, and then provide an ethical assessment of economic behavior using case studies. Roleplaying and games are used to explain the behavior of people in relation to ethics. The 2nd edition has been completely revised and expanded to include new findings from the behavioral sciences (psychology, social psychology, sociology and behavioral economics). In particular, the research on emotions, motivation and group behavior have given rise to many new impulses in business ethics. In addition, new case studies and new chapters were included, like Politics and Morality, Theories of Justice, Global Ethics, and Institutions as Solutions to Specific Game Situations (game theory). This book is important for students and researchers as well as policymakers and business executives due to its focus on applications.
Author(s): Christian A. Conrad | Danica Webb [Translator]
Edition: 2
Publisher: Springer
Year: 2022
Language: English
Commentary: TruePDF
Pages: 470
Tags: Business Ethics
Preface to First Edition
Preface to Second Edition
Introduction
Contents
About the Author
1: Basic of Ethics
1.1 Basic Terms
1.2 What Is Business Ethics?
1.3 Objective of Business Ethics
Literature
2: Ethical Valuation Approaches
2.1 Classical Ethics
2.1.1 Ethics of Conviction
2.1.2 Kant’s Rules for Ethical Reasoning
2.1.2.1 The Practical Imperative
2.1.2.2 The Categorical Imperative
2.1.2.3 Publicity Rule
2.1.3 Ethics of Duties (Deontological Ethics)
2.1.4 Ethics of Responsibility or Ultimate End (Teleological Ethics)
2.1.5 The Utilitarianism of Jeremy Bentham
2.1.6 Millian Utilitarianism
2.1.7 Individual Ethics or Discourse Ethics?
2.2 Modern Ethics
2.2.1 Moral Economics: Morality Must Be Worthwhile
2.2.2 Specific Ethical Assessment Principles
2.2.2.1 Human Rights
2.2.2.2 Environmental Protection as Sustainability
2.2.2.3 Animal Protection
2.2.3 Justice as an Assessment and Behavioral Approach
2.3 Conclusion on Ethical Evaluation Procedures
2.4 Application Examples
Literature
3: The Image of Humans
3.1 The Classical View of Man: Homo Economicus
3.2 Falsely Understood Egoism
3.3 Individualism Versus Collectivism: Behavior in Groups
3.4 Fairness as Motivation
3.5 Human Intelligence
3.6 The Cultural Impact
3.7 Economic Behavior Motivation and Emotions
3.8 Final Conclusion and Summary
Literature
4: Ethical Problems of the Economy: Enron, Subprime & Co. – From Crisis to Crisis
4.1 Enron, Worldcom and Co.
4.2 The Subprime Crisis, the Biggest Financial Crisis After 1929
4.3 Some Causes of the Financial Crisis
4.3.1 Technical Mistakes
4.3.2 Exaggerated Belief in Figures
4.3.3 Missing Moral Values
Literature
5: Market and Morality
5.1 Theories of Justice
5.2 Economy and Freedom – A Historical Overview
5.3 A Free Market Without Social Rules?
5.4 The Russian Tto an Unethical Market Economy
5.5 How Does the Market Economy Work?
5.5.1 The Picture of the Perfect Market in the Welfare Economy
5.5.2 Functions of Competition
5.5.3 Moral Goals and Market Economy
5.5.4 Social Market Economy
5.5.5 Morality Within the Economic Division of Labor
5.5.6 The Company in the Market System
5.5.6.1 The Company’s Objective of Maximizing Profits
5.5.6.2 Weaknesses in Controlling
5.5.6.3 Corporate Social Responsibility
5.6 Market Failure
5.6.1 Market Failure Due to External Effects
5.6.2 Market Failure Due to Non-exclusion, Public Goods
5.6.3 Market Failure Due to the Prisoner’s Dilemma
5.6.4 Market Failure Due to Lack of Rationality
5.6.4.1 Meritorious and Demeritorious Goods
5.6.4.2 Risk-Averse or Risk-Taking Behavior
5.6.4.3 Emotions
5.6.5 Market Failures Due to Asymmetrical Information
5.6.6 Market Failure Due to Transaction Costs
5.6.7 Market Failure Due to Corruption
5.6.8 Market Failure Due to Lack of Market Transparency
5.6.9 Market Failure on the Labor Market
5.6.10 Historical Development
Literature
6: Institutional Ethics: The National and International Framework
6.1 Institutions as Solutions to Specific Game Situations
6.1.1 The Ethical Prisoner Dilemma
6.1.2 Games of the Gender Struggle Type
6.1.3 Insurance or Trust Game
6.1.4 Conflicting Strategies, the Chicken Game, Negative Payoffs
6.2 Ethical Institutions and Organizations
6.3 Is the State of Law Sufficient?
6.4 International Business Ethics
6.4.1 Global Ethics
6.4.2 Non-Governmental Organizations or Civil Society Groups
6.4.3 International Quality Seals
6.4.4 Incentives to Overcome the International Prisoner’s Dilemma
6.4.5 International Ethical Codes
6.4.6 Development Policy
Literature
7: Politics and Morality
7.1 The New Political Economy
7.2 The Vote Maximization Model from Downs
7.3 Interest Groups (Lobbying)
7.4 Economic Theory of Bureaucracy
7.5 Voting Procedure
7.5.1 Unanimity Rule
7.5.2 Majority Rules (Absolute or Relative Majority, Plurality Voting)
7.5.3 Borda Rule
7.6 Discourse Ethics as Basis for a Legitimate Decision Making Process
7.7 Political Manipulations
Literature
8: Tools of Ethics for Management
8.1 Institutional Ethics on Company Level
8.1.1 Corporate Principles and Vision
8.1.2 Operative and Strategic Targets
8.1.2.1 Company Targets and Strategies
8.1.2.2 Division Targets and Strategies
8.1.2.3 Department Strategies
8.1.3 Code of Conduct
8.1.4 Ethical Control Systems
8.1.4.1 Compliance Programs
8.1.4.2 Integrity Programs
8.1.5 The Ethical Aspects of the Shareholder Value Concept
8.1.6 Ethical Stakeholder Approach
8.2 Organizational Ethics
8.2.1 Organizational Structure
8.2.1.1 Division of Labor and Specialization
8.2.1.2 Separation of Decisions and Execution in Vertical Organization (Hierarchy)
8.2.1.3 Command and Obedience (Strict Line of Command)
8.2.1.4 The Information Problem
8.2.2 Ombudspersons
8.2.3 Ethics Officers
8.2.4 Ethics Commission
8.2.5 Whistleblowing
8.3 Leadership Ethics
8.3.1 Case Study of Enron
8.3.2 Weaknesses of Corporate Governance
8.3.2.1 From Entrepreneur to Manager
8.3.2.2 The Principal-Agent Problem
8.3.3 Incentives, Risk and Compensation Schemes
8.3.3.1 Experimental Evidence on the Importance of Risk Adequate Compensation
8.3.3.2 Stock Options and Bonuses as Unethical Incentives for Company Management
8.3.3.3 Fair Compensation
8.3.3.4 Lack of Controls on Company Management
8.3.4 Ethical Corporate Culture
8.3.4.1 Case Study: VW Diesel Scandal
8.3.4.2 What Is a Company Culture?
8.3.4.3 How Does the Corporate Culture Influence the Employees?
8.3.4.4 Measurement of Company Culture and Discussions as Leadership Tool
8.3.4.5 Cultural Management, or How I Change Corporate Culture
8.3.4.6 Ethical Corporate Identity
8.3.5 Ethical Leadership
8.3.5.1 The Relationship Between Management and Employees
8.3.5.2 Leadership Styles
8.3.5.3 Leadership Theories
8.3.5.4 Leadership Authority
8.3.6 The Ethical Model of Company Management
8.3.6.1 Virtue or Individual Ethics: What Should Be the Characteristics of an Optimal Management?
8.3.6.2 How Can We Motivate Employees to Adopt Ethical Behavior?
8.3.6.3 The Management Approach of Qualitative Leadership
8.3.7 Ethical Staff Selection
8.3.7.1 The Selection Process
8.3.7.2 Selection of Ethical Employees in Practice
8.3.7.3 Reasons for the Ethics Deficit in the Personnel Selection
8.3.7.4 The Character Traits of the Dark Triad
8.3.8 Ethical Personnel Development
8.3.8.1 The Step Model of the Moral Judgment from Kohlberg
8.3.8.2 The Moral Competence of the Employees in Line with Staffelbach
8.3.8.3 Levels of Ethical Awareness and Wieland Management
8.3.8.4 Ethics Seminars
8.3.8.5 Corporate Volunteering
8.3.8.6 Training-Near-the-Job
Literature
9: Ethics in Business Education
9.1 Cultural Factors in Economics
9.2 Economics as a Natural Science?
9.3 Ethics in Business Administration
9.4 Summary
Literature
Index
