Business and Society: Stakeholders, Ethics, Public Policy 17th Edition PDF by Anne T. Lawrence, James Weber, Vanessa D. Hill and David M. Wasieleski


Business and Society: Stakeholders, Ethics, Public Policy, Seventeenth Edition

Business and Society_ Stakeholders, Ethics, Public Policy

Anne T. Lawrence, James Weber, Vanessa D. Hill and David M. Wasieleski





The Corporation and Its Stakeholders 2

Business and Society 4

A Systems Perspective 5

The Stakeholder Theory of the Firm 6

The Stakeholder Concept 8

Different Kinds of Stakeholders 9

Stakeholder Analysis 11

Stakeholder Interests 12

Stakeholder Power 13

Stakeholder Coalitions 15

Stakeholder Mapping 16

The Corporation’s Boundary-Spanning Departments 19

The Dynamic Environment of Business 20

Creating Value in a Dynamic Environment 22

Summary 22

Key Terms 23

Internet Resources 23

Discussion Case: Tipping Point at Union Square Hospitality Group 23



Managing Public Issues and Stakeholder Relationships 26

Public Issues 27

Environmental Analysis 30

Competitive Intelligence 32

Stakeholder Materiality 33

The Issue Management Process 35

Identify Issue 35

Analyze Issue 36

Generate Options 36

Take Action 37

Evaluate Results 37

Organizing for Effective Issue Management 38

Stakeholder Engagement 39

Stages in the Business–Stakeholder Relationship 39

Drivers of Stakeholder Engagement 40

The Role of Social Media in Stakeholder Engagement 42

Stakeholder Dialogue 42

Stakeholder Networks 43

The Benefits of Engagement 43

Summary 44

Key Terms 45

Internet Resources 45

Discussion Case: Robinhood: The Challenges of Keeping Pace with

Innovation 45



Corporate Social Responsibility and Global Citizenship 48

Corporate Power and Responsibility 50

Corporate Social Responsibility and Citizenship 52

The Origins of Corporate Social Responsibility 53

Balancing Social, Economic, and Legal Responsibilities 54

The Corporate Social Responsibility Question 55

Support for Corporate Social Responsibility 56

Concerns about Corporate Social Responsibility 59

Social Entrepreneurs and B Corporations 62

Management Systems for Corporate Social Responsibility and Citizenship 63

Stages of Corporate Citizenship 65

Assessing and Reporting Social Performance 67

Social Audit Standards 68

Social Reporting 68

Summary 70

Key Terms 71

Internet Resources 71

Discussion Case: Corporate Social Responsibility at Gravity Payments 71



Business in a Globalized World 74

The Process of Globalization 75

Major Multinational Enterprises 76

International Financial and Trade Institutions 78

The Benefits and Costs of Globalization 81

Benefits of Globalization 81

Costs of Globalization 82

Doing Business in a Diverse World 84

Comparative Political and Economic Systems 84

Global Inequality and the Bottom of the Pyramid 87

Collaborative Partnerships for Global Problem Solving 89

A Three-Sector World 89

Summary 91

Key Terms 92

Internet Resources 92

Discussion Case: Intel and the Responsible Minerals Initiative 92






Ethics and Ethical Reasoning 96

The Meaning of Ethics 97

What Is Business Ethics? 98

Why Should Business Be Ethical? 99

Why Ethical Problems Occur in Business 103

Personal Gain and Selfish Interest 103

Competitive Pressures on Profits 104

Conflicts of Interest 104

Cross-Cultural Contradictions 104

The Core Elements of Ethical Character 105

Managers’ Values 105

Spirituality in the Workplace 106

Managers’ Moral Development 107

Analyzing Ethical Problems in Business 109

Virtue Ethics: Pursuing a “Good” Life 109

Utility: Comparing Benefits and Costs 110

Rights: Determining and Protecting Entitlements 112

Justice: Is It Fair? 112

Applying Ethical Reasoning to Business Activities 113

The Moral Intensity of an Ethical Issue 113

Summary 114

Key Terms 115

Internet Resources 115

Discussion Case: 3M and N95 Respirators for Americans 115



Organizational Ethics 118

Corporate Ethical Climates 119

Business Ethics Across Organizational Functions 121

Accounting Ethics 121

Financial Ethics 123

Marketing Ethics 123

Information Technology Ethics 124

Supply Chain Ethics 125

Making Ethics Work in Corporations 126

Building Ethical Safeguards into the Company 127

Ethics in a Global Economy 132

Efforts to Curtail Unethical Practices 134

Summary 135

Key Terms 135

Internet Resources 136

Discussion Case: The Vale Mining Company Dam Collapse 136






Business–Government Relations 140

How Business and Government Relate 142

Seeking a Collaborative Partnership 142

Working in Opposition to Government 142

Legitimacy Issues 143

Government’s Public Policy Role 144

Elements of Public Policy 144

Types of Public Policy 147

Government Regulation of Business 149

Market Failure 150

Negative Externalities 150

Natural Monopolies 151

Ethical Arguments 151

Types of Regulation 151

The Effects of Regulation 155

Regulation in a Global Context 158

Summary 159

Key Terms 160

Internet Resources 160

Discussion Case: Government’s Response to the Coronavirus Pandemic in

the United States and the European Union 160



Influencing the Political Environment 163

Participants in the Political Environment 165

Business as a Political Participant 165

Influencing the Business–Government Relationship 166

Corporate Political Strategy 166

Political Action Tactics 167

Promoting an Information Strategy 168

Promoting a Financial-Incentive Strategy 171

Promoting a Constituency-Building Strategy 177

Levels of Political Involvement 180

Managing the Political Environment 181

Business Political Action: A Global Challenge 182

Summary 183

Key Terms 184

Internet Resources 184

Discussion Case: Political Action by the U.S. Steel Industry, 2015–2020 184






Sustainable Development and Global Business 190

Business and Society in the Natural Environment 192

Sustainable Development 193

Sustainable Development Goals 194

Planetary Boundaries 195

The Great Acceleration 196

Socio-Economic Trends 197

Population Growth 197

Urbanization 197

Energy Use 198

GDP Growth 199

Earth System Trends 200

Climate Change 200

Stratospheric Ozone 202

Land and Water Resources 202

Threats to Marine Ecosystems 204

Decline of Biodiversity 205

Response of the International Business Community 206

Circular Economy 207

Summary 209

Key Terms 209

Internet Resources 209

Discussion Case: Clean Cooking 210



Managing for Sustainability 213

Role of Government 215

Major Areas of Environmental Regulation 215

Alternative Policy Approaches 220

Costs and Benefits of Environmental Regulation 223

Managing for Sustainability 225

Leading Change for Sustainability 225

Sustainability Management in Practice 226

Environmental Auditing and Reporting 228

Environmental Partnerships 228

Sustainability Management as a Competitive Advantage 229

Cost Savings 229

Brand Differentiation 230

Technological Innovation 231

Reduction of Regulatory, Liability, and Climate Change Risk 231

Strategic Planning 231

Summary 233

Key Terms 234

Internet Resources 234

Discussion Case: General Motors’ Drive for Carbon Neutrality 234






The Role of Technology 238

Technology Defined 240

Phases of Technology in Society 240

The Role of Technology in Our Daily Lives 241

The Presence of the Internet 241

Unwanted Technology Threats 244

Big Data 244

Public Access to and Use of Technology 245

The Digital Divide in the United States and Worldwide 245

Mobile Telephones 247

Cryptocurrency 247

Social Networking 248

Ethical Challenges Involving Technology 249

The Loss of Privacy 250

Free Speech Issues 251

Government Censorship of Free Speech 252

The Impact of Scientific Breakthroughs 253

Genetically Engineered Foods 253

Sequencing of the Human Genome 254

Biotechnology and Stem Cell Research 255

Medical Breakthroughs 256

Summary 257

Key Terms 257

Internet Resources 258

Discussion Case: China’s Social Credit System 258



Regulating and Managing Technology 260

Government Regulation of Technology 262

The Role of Technology in Business 263

Access to Stakeholders’ Personal Information 264

E-Business 265

Artificial Intelligence in the Workplace and their Challenges 266

The Use of Artificial Intelligence at Work 267

Robotics in the Workplace 268

The Emergence of Drones in Business 269

The Chief Information, Security, Technology Officer 270

Cybercrime: A Threat to Organizations and the Public 271

Exploring Why Hackers Hack 271

Costs of Cybercrime 273

Business Responses to Invasions of Information Security 275

Government Efforts to Combat Cybercrime 276

Summary 277

Key Terms 278

Internet Resources 278

Discussion Case: The Arrival of Autonomous Cars—Bright Future or

Looming Threat? 278






Shareholder Rights and Corporate Governance 282

Shareholders Around the World 284

Who Are Shareholders? 284

Objectives of Stock Ownership 285

Shareholders’ Legal Rights and Safeguards 286

Corporate Governance 287

The Board of Directors 287

Principles of Good Governance 289

Special Issue: Executive Compensation 291

Shareholder Activism 295

The Rise of Institutional Investors 295

Social Investment 296

Shareholder Lawsuits 298

Government Protection of Shareholder Interests 299

Securities and Exchange Commission 299

Information Transparency and Disclosure 299

Insider Trading 299

Shareholders and the Corporation 301

Summary 302

Key Terms 302

Internet Resources 302

Discussion Case: Corporate Governance and Executive Misconduct at

Wynn Resorts 303



Consumer Protection 305

The Rights of Consumers 307

Self-Advocacy for Consumer Interests 308

How Government Protects Consumers 309

Goals of Consumer Laws 309

Major Consumer Protection Agencies 310

Consumer Privacy in the Digital Age 313

Using the Courts and Product Liability Laws 316

Strict Liability 316

Product Liability Reform and Alternative Dispute Resolution 318

Positive Business Responses to Consumerism 319

Managing for Quality 319

Voluntary Industry Codes of Conduct 320

Consumer Affairs Departments 321

Product Recalls 322

Consumerism’s Achievements 322

Summary 323

Key Terms 323

Internet Resources 323

Discussion Case: Volkswagen’s “Clean Diesel” Campaign 324



Employees and the Corporation 326

The Employment Relationship 328

Workplace Rights 329

The Right to Organize and Bargain Collectively 329

The Right to a Safe and Healthy Workplace 332

Job Security and the Right to Due Process 334

Fair Wages and Income Inequality 336

The Right to Privacy in the Workplace 339

Electronic Monitoring 339

Romance in the Workplace 341

Employee Drug Use and Testing 341

Alcohol Abuse at Work 343

Employee Theft and Honesty Testing 343

The Right to Blow the Whistle and Free Speech in the Workplace 344

Summary 346

Key Terms 346

Internet Resources 346

Discussion Case: Do it Without Dues 347



Managing a Diverse Workforce 349

The Changing Face of the Workforce 350

Gender and Race in the Workplace 352

Women and Minorities at Work 352

The Gender and Racial Pay Gap 353

Where Women and Persons of Color Manage 356

Breaking the Glass Ceiling 356

Women and Minority Business Ownership 359

Government’s Role in Securing Equal Employment Opportunity 359

Equal Employment Opportunity 360

Affirmative Action 361

Sexual and Racial Harassment 361

What Business Can Do: Diversity and Inclusion Policies and Practices 364

Balancing Work and Life 367

Child Care and Elder Care 367

Work Flexibility 369

Summary 370

Key Terms 371

Internet Resources 371

Discussion Case: Hello, My Name Is … 371



Business and Its Suppliers 374

Suppliers 376

Social, Ethical, and Environmental Issues in Global Supply Chains 379

Social Issues 379

Ethical Issues 380

Environmental Issues 382

Supply Chain Risk 383

Private Regulation of the Business–Supplier Relationship 384

Supply Chain Auditing 386

Supplier Development and Capability Building 388

Summary 391

Key Terms 392

Internet Resources 392

Discussion Case: IKEA’s Sustainable Cotton Supply Chain 392



The Community and the Corporation 395

The Business–Community Relationship 397

The Business Case for Community Involvement 399

Community Relations 400

Economic Development 401

Housing 401

Aid to Minority, Women, and Disabled Veteran-Owned Enterprises 401

Disaster, Terrorism, and War Relief 402

Corporate Giving 403

Forms of Corporate Giving 406

Priorities in Corporate Giving 409

Corporate Giving in a Strategic Context 409

Measuring the Return on Social Investment 411

Building Collaborative Partnerships 412

Summary 414

Key Terms 414

Internet Resources 414

Discussion Case: Salesforce’s 1+1+1 Integrated Philanthropy Model 415



Managing the Public and the Corporate Reputation 417

The General Public 418

What is Reputation? 419

Why Does Reputation Matter? 420

The Public Relations Department 421

Public Relations in the Internet and Social Media Age 422

Brand Management 424

Crisis Management 425

Engaging Key Stakeholders with Specific Tactics 428

Executive Visibility 430

User-Generated Content 431

Paid Content 432

Event Sponsorship 433

Image Advertisements 434

Summary 435

Key Terms 436

Internet Resources 436

Discussion Case: United Airlines—Navigating a Social Media Storm 436



Failure by Design: Boeing and the 737 Max 440

Profiting from Pain: Business and the U.S. Opioid Epidemic 451

Banning American Parts in Chinese Mobile Phones:

Economic Sanctions, Political Influence, and Trump’s

Trade War 462

BP Blowout: The Aftermath of the Gulf Oil Disaster 470

Wells Fargo’s Unauthorized Customer Accounts 479

The Upper Big Branch Mine Disaster 488

Starbucks at the Airport: Discrimination in Public Spaces 498

Nestlé and Child Labor in the Cocoa Supply Chain 508

The Boycott of Stoli Vodka 519

Glossary 527

Bibliography 538


Name 543

Subject 547

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