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Lecture Notes For Business, Government, And Society: A Managerial Perspective, 13th Edition

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    1 Instructor’s Resource Manual to accompany Business, Government, and Society: A Managerial Perspective Thirteenth Edition John F. Steiner Professor of Management, Emeritus California State University, Los Angeles George A. Steiner Harry and Elsa Kunin Professor of Business and Society and Professor of Management, Emeritus University of California, Los Angeles CLASS NOTES

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    2 TABLE OF CONTENTS PREFACE 4 PART 1 TEACHING THE BUSINESS, GOVERNMENT, AND SOCIETY COURSE INTRODUCTION TO THE TENTH EDITION OF BUSINESS, GOVERNMENT, AND SOCIETY: A MANAGERIAL PERSPECTIVE 8 OBJECTIVES OF A BUSINESS, GOVERNMENT, AND SOCIETY COURSE 10 SAMPLE COURSE OUTLINES 11 USING THE CASES 15 ALTERNATIVE USES OF CASE STUDIES BY MAJOR TOPIC 16 TERM PAPER AND PRESENTATION TOPICS 1 8 PART 2 CHAPTER OBJECTIVES, SUMMARIZING OUTLINES, AND CASE NOTES CHAPTER 1 THE STUDY OF BUSINESS, GOVERNMENT, AND SOCIETY 27 CHAPTER 2 THE DYNAMIC ENVIRONMENT 33 CASE NOTE THE AMERICAN FUR COMPANY 37 CHAPTER 3 BUSINESS POWER 44 CASE NOTE JOHN D. ROCKEFELLER AND THE STANDARD OIL TRUST 47 CHAPTER 4 CRITICS OF BUSINESS 53 CASE NOTE A CAMPAIGN AGAINST KFC CORPORATION 58 CHAPTER 5 CORPORATE SOCIAL RESPONSIBILITY 63 CASE NOTE JACK WELCH AT GENERAL ELECTRIC 69 CHAPTER 6 IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY 7 4 CASE NOTE MARC KASKY VERSUS NIKE 7 8 CHAPTER 7 BUSINESS ETHICS 8 3 CASE NOTE THE TRIAL OF MARTHA STEWART 8 7 CHAPTER 8 MAKING ETHICAL DECISIONS IN BUSINESS 9 3 CASE NOTE SHORT INCIDENTS FOR ETHICAL REASONING 9 7 CASE NOTE TANGLED WEBS 10 4 CHAPTER 9 BUSINESS IN POLITICS 10 8 CASE NOTE CITIZENS UNITED V. FEDERAL ELECTION COMMISSION 11 2 CHAPTER 10 REGULATING BUSINESS 11 7 CASE NOTE GOOD AND EVIL ON THE RAILS 12 1 CHAPTER 11 MULTINATIONAL CORPORATIONS 12 4 CASE NOTE UNION CARBIDE CORPORATION AND BHOPAL 12 7

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    3 CHAPTER 12 GLOBALIZATION, TRADE, AND CORRUPTION 13 5 CASE NOTE DAVID AND GOLIATH AT THE WTO 14 0 CHAPTER 13 INDUSTRIAL POLLUTION AND ENVIRONMENTAL REGULATION 14 5 CASE NOTE A WORLD MELTING AWAY 1 49 CHAPTER 14 MANAGING ENVIRONMENTAL QUALITY 15 5 CASE NOTE HARVESTING RISK 16 0 CHAPTER 15 CONSUMERISM 16 3 CASE NOTE ALCOHOL ADVERTISING 1 68 CHAPTER 16 THE CHANGING WORKPLACE 175 CASE NOTE A TALE OF TWO RAIDS 180 CHAPTER 17 CIVIL RIGHTS, WOMEN, AND DIVERSITY IN THE WORKPLACE 18 5 CASE NOTE ADARAND V. PEÑA 19 2 CHAPTER 18 CORPORATE GOVERNANCE 198 CASE NOTE HIGH NOON AT HEWLETT - PACKARD 20 4 PREFACE This Instructor’s Resource Manual is designed for instructors using the thirteenth edition of Business, Government, and Society: A Managerial Perspective . It contains a variety of teaching materials. Instructors with a wide range of teaching philosophies and styles will find information to supplement their knowledge, save their time, and enhance their classroom effectiveness. John F. Steiner

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    4 PART 1 TEACHING THE BUSINESS, GOVERNMENT, AND SOCIETY COURSE AN INTRODUCTION TO THE THIRTEENTH EDITION OF BUSINESS, GOVERNMENT, AND SOCIETY: A MANAGERIAL PERSPECTIVE This edition retains the basic structure of previous editions. Eighteen chapters cover basic topics. Each chapter has three parts. They begin with a brief story to illustrate the central theme. Text follows. At the end a case study raises issues related to the chapter’s subject (except in the introductory Chapter 1). Our approach to the field emphasizes corporate social responsibility, ethics, government regulation, global influences, and historical background. The central focus connecting these themes is a management perspective. The new edition is extensively revised and updated. Five new chapter - beginning stories and five new chapter - ending case studies appear. Many new sections and discussions are added. Here is an overview of both what has changed and what remains the same from the last edition. ❑ Chapter 1 continues to introduce the field using four models of the business - government - society relationship. ❑ Chapter 2, on the business environment, is revised and updated to reflect recent events and the progress of trends. It retains its basic structure as a discussion of deep historical forces and current trends. ❑ Chapter 3, on business power is, except for updated references and statistics, unchanged. ❑ Chapter 4, on critics of business, continues as a capsule survey of business criticism from ancient times to the present. More attention is paid to the Chicago School and the rise of neoliberalism. ❑ Chapter 5, on corporate social responsibility, is unchanged except for a revised discussion of the evolving global CSR system. ❑ Chapter 6, is updated with new stories about CSR implementation. Its outline is unchanged. ❑ Chapter 7, introducing business ethics, has a revised discussion of criminal prosecution of corporations and a revised discussion of traits that influence individual ethical behavior.

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    5 ❑ Chapter 8, on making ethical decisions, begins with a new story about David Geffen. It contains a new section about brain research on ethical decision making. It also includes a new case study on Ashley Madison, a social networking site for married men and women seeking to have affairs. The case raises issues related to secrets, lies, and deceptions. ❑ Chapter 9, on business and politics, begins with a new story about Paul Magliocchetti, a Washington lobbyist. Because of the Supreme Court’s Citizens United v. Federal Election Commission decision the discussion of election law is revised. The case study is now about Citizens United. ❑ Chapter 10, on regulation, begins with a new story about how the Federal Aviation Administration regulates commercial rockets. A new fifth wave of regulation is added to the section on waves of regulatory growth because of the recent surge in national security and financial regulation. A new case study invites discussion of the benefit - cost ratio of the major rule requiring positive train controls that came out of the tragic 2008 Metrolink train collision near Los Angeles. ❑ Chapter 11, on multinational corporations, is little changed, but it includes a new story about how OECD Guidelines for Multinational Enterprises were applied to pressure a mining corporation in India into greater responsibility toward an indigenous people. ❑ Chapter 12, on globalization, trade, and corruption, is extensively revised. Material on globalization is condensed and more space is devoted to discussion of global corruption and enforcement of the Foreign Corrupt Practices Act. A new discussion about the rise of the current global trading system and creation of the World Trade Organization appears. ❑ Chapter 13, on pollution from industrial activity, is revised to update national and global regulatory activity. A new case study examines the polar bear as an endangered species. Global warming threatens its survival and the case invites discussion of what can be done to save it. ❑ Chapter 14, on managing environmental risk, is updated but remains substantially as in the last edition. ❑ Chapter 15, on consumerism, retains its basic discussion of consumerism as both an ideology and a protective movement. It includes a new discussion of Henry David Thoreau, a new section on the defense of materialism, and a new description of the Federal Trade Commission. ❑ Chapter 16, on the changing workplace, is unchanged except for updating events and statistics. A new case study tells the story of two workplace raids to remove unauthorized workers. It raises issues about how federal and state immigration policies affect corporations, employees, and migrants. ❑ Chapter 17, on the civil rights, women, and diversity in the workplace, has an expanded discussion of diversity management efforts in companies.

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    6 ❑ Chapter 18, on corporate governance, is rewritten. A new introductory story tells how the Hewlett - Packard board fired CEO Marc Hurd for integrity lapses. The chapter text now has new discussions of federal regulation of governance, the powers of stockholders, the governance failure at Lehman Brothers, the Dodd - Frank Act of 2010, board of director dynamics, and major problems with executive compensation. OBJECTIVES OF A BUSINESS, GOVERNMENT, AND SOCIETY COURSE Objectives for a course in which Business, Government, and Society: A Managerial Perspective , thirteenth edition, is the primary text could be set forth as the following. ❑ To clarify the evolving meaning and nature of corporate social responsibility. ❑ To understand the ethical duties of business. ❑ To explain the power of corporations and industries, past and present, to shape our world. ❑ To learn how forces in and outside of business firms are changing the management task, altering business operations, and modifying stakeholder expectations. ❑ To explain that many of these environmental forces are global in nature. ❑ To develop an understanding of how influential ideas in the business environment shape the business - government - society relationship. ❑ To appreciate the importance of law and government regulation as forces guiding business behavior. ❑ To study historical patterns in the business - government - society relationship, learning how the past shaped the present, and learning how present trends are shaping the future. ❑ To develop in students an ethical and philosophical basis for making business decisions. ❑ To incorporate the knowledge of many fields through an interdisciplinary approach. ❑ To expose students to analytical methods appropriate for studying major issues in the business - government - society relationship. ❑ To develop a tolerance for ambiguities in discussing issues about which knowledgeable observers differ and to develop an understanding that there are no clear solutions to some problems. ❑ To conduct a stimulating course having long - lasting value to students in their management careers.

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    7 SAMPLE COURSE OUTLINES Here are three alternative outlines for courses offering a broad overview of business - government - society relationships. They are designed for (1) a sixteen - week semester course using lectures and case studies, (2) an eleven - week quarter course with a lecture orientation, and (3) an eleven - week quarter course oriented toward student research and case study presentations. OUTLINE 1 A SIXTEEN WEEK SEMESTER COURSE This course is a broad survey of the business - government - society relationship. Students are assigned chapters in sequence. Case studies are also assigned in order. To liven the class instructors might add student presentations and debates based on term paper and presentation topics listed in the last section of this part of the manual. WEEK TOPICS AND CASE STUDIES CHAPTER 1 Introduction to the Study of Business, Government, and Society 1 2 The Dynamic Business Environment Case: The American Fur Company 2 3 Business Power and Business Critics Cases: John D. Rockefeller and the Standard Oil Trust A Campaign against KFC Corporation 3,4 4 Corporate Social Responsibility Cases: Jack Welch at General Electric Marc Kasky versus Nike 5,6 5 Business Ethics Case: The Trial of Martha Stewart 7 6 Making Ethical Decisions in Business Cases: Short Incidents for Ethical Reasoning Tangled Webs 8 7 Business in Politics Case: Citizens United v. Federal Election Commission 9 8 Midterm Exam 9 Regulating Business Case: Good and Evil on the Rails 10 10 Multinational Corporations, Globalization, and Trade Cases: Union Carbide Corporation and Bhopal 11,12

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    8 David and Goliath at the WTO 11 Environmental Management and Regulation Cases: A World Melting Away Harvesting Risk 13,14 12 Consumerism Case: Alcohol Advertising 15 13 Global Forces Changing the Workplace Case: A Tale of Two Raids 16 14 Civil Rights, Women, and Diversity in the Workplace Case: Adarand v. Peña 17 15 Corporate Governance Case: High Noon at Hewlett - Packard 18 16 Final Exam

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    9 OUTLINE 2 AN ELEVEN WEEK QUARTER COURSE (LECTURE ORIENTATION) This course is a broad survey of business - government - society relationships. Students read chapters in sequence. Case studies are discussed sequentially with the instructor acting as discussion leader. Case discussions are used to vary pedagogy in class. Students may be asked to write term papers on the case studies or on additional topics. WEEK TOPICS AND CASES CHAPTERS 1 Introduction to the Study of Business, Government, and Society and to the Dynamic Business Environment Case: The American Fur Company 1,2 2 Business Power and Business Critics Cases: John D. Rockefeller and the Standard Oil Trust A Campaign against KFC Corporation 3,4 3 Corporate Social Responsibility Cases: Jack Welch at General Electric Marc Kasky versus Nike 5,6 4 Business Ethics Cases: The Trial of Martha Stewart Tangled Webs Short Incidents for Ethical Reasoning 7,8 5 Midterm Exam Business in Politics Case: Citizens United v. Federal Election Commission 9 6 Regulating Business Case: Good and Evil on the Rails 10 7 Multinational Corporations, Globalization, and Trade Cases: Union Carbide Corporation and Bhopal David and Goliath at the WTO 11,12 8 Environmental Management and Regulation Cases: A World Melting Away Harvesting Risk 13,14 9 Consumerism and Global Forces Changing the Workplace Cases: Alcohol Advertising A Tale of Two Raids 15,16 10 Civil Rights, Women, and Diversity/Corporate Governance Cases: Adarand v. Peña 17,18

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    10 High Noon at Hewlett - Packard 11 Final Exam OUTLINE 3 AN ELEVEN WEEK QUARTER COURSE (STUDENT RESEARCH ORIENTATION) This course is also a survey of basic business - government - society relationships, and students read chapters in sequence. However, unlike Outline 2, this outline defers case discussions until the second half of the quarter (except the short ethical incidents for class discussion in the fourth week). This delay gives students time to do research. During the first five weeks the instructor can lecture on core areas of the subject matter, such as stakeholder theory, forces in the business environment, charges of business critics, principles of corporate social responsibility, and ethical principles. Students will pick up useful ideas for case analysis. Cases appropriate to class topics are selected for weeks 6 through 10. The instructor can reduce the number of cases depending on class size, the number of students assigned to each case, and time available. WEEK TOPICS AND CASES CHAPTERS 1 Introduction to the Study of Business, Government, and Society and to the Dynamic Business Environment 1,2 2 Business Power and Business Critics 3,4 3 Corporate Social Responsibility 5,6 4 Business Ethics Case: Short Incidents for Ethical Reasoning 7,8 5 Midterm Exam/Business in Politics 6 The Government - Business Relationship Cases: The American Fur Company John D. Rockefeller and the Standard Oil Trust Good and Evil on the Rails Citizens United v. Federal Election Commission The Trial of Martha Stewart 9,10 7 Multinational Corporations, Globalization, and Trade Cases: Jack Welch at General Electric Marc Kasky versus Nike Union Carbide Corporation and Bhopal David and Goliath at the WTO 11,12 8 Environmental Management and Regulation Cases: A World Melting Away 13,14

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    11 Harvesting Risk 9 Consumerism/The Changing the Workplace Cases: Alcohol Advertising A Campaign against KFC Corporation A Tale of Two Raids 15,16 10 Civil Rights, Women, and Diversity/Corporate Governance Cases: Adarand v. Peña High Noon at Hewlett - Packard 17,18 11 Final Exam USING THE CASES There are seventeen end - of - chapter cases, all about real companies or situations. In addition, there is a set of short incidents raising ethical issues following Chapter 8. These cases and incidents are designed to stimulate class discussion by raising questions and emphasizing multiple or opposing perspectives on issues. There are three basic ways to use them. First, they can be assigned as readings . The case studies are of moderate length and reading them adds additional insight to subjects in the chapters. If cases are used as readings students can be tested on them using questions from the book’s test bank. Second, they can be used for class discussion . This manual has teaching notes for each case to highlight major issues, provide background information, and suggest answers to end - of - case questions. There are many ways to start discussions. ❑ The instructor can lead the discussion. ❑ One student can be to present a viewpoint to the class or act as a discussion leader. ❑ Two students, or two teams, can be assigned to debate pro and con positions on major issues in the case. This is an effective way to encourage lively discussion. All cases are written to generate pro and con debate on main issues.

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    12 ❑ Students can be assigned to play roles. For example, in the case “Marc Kasky versus Nike, Inc.,” students could role - play a company executive, a factory worker, and Marc Kasky. Most cases lend themselves to role playing because they focus on issues where there are broad differences of opinion and values. ❑ The class can be divided into small groups. The instructor can then give each group a question to discuss, asking the group to select a member to present its response. Third, the cases can be assigned for further research. All cases are appropriate for assignment as research projects. They all contain complex issues. Each case is unique, but there are similar basic research tasks. ❑ Students can seek background information on issues raised in the case. ❑ Students can update cases. Most cases focus on current issues. Students should be encouraged to find out what has happened since the case was written. ❑ Students can apply principles and ideas from chapter text to the cases. For example, in writing an analysis of the case “The Jack Welch Era at General Electric,” applying criteria for corporate responsibility set forth in Chapter 5 is appropriate. Application of ideas in the text also encourages students to make a connection between worldly events in the cases and the theoretical material in the chapters. ❑ ALTERNATIVE USES OF CASE STUDIES BY MAJOR TOPIC Each end - of - chapter case raises issues related to the chapter subject. However, most also raise other issues. The table on the next page shows alternative uses for cases by topic. The topics are these. ❑ Advertising/marketing ❑ Capitalism ❑ Civil rights ❑ Consumers ❑ Critics of business ❑ Employees/labor ❑ Ethics ❑ Natural environment ❑ Globalization ❑ Governance ❑ Historical events ❑ Law ❑ Multinational corporations ❑ Politics ❑ Regulation ❑ Social responsibility ❑ Strategy ❑ Technology

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    13 TOPICS CHAPTER CASE STUDY Advertising/marketing Capitalism Civil rights Consumers Critics of business Employees/labor Ethics Environment Globalization Governance Historical Law MNCs Politics Regulation Social responsibility Strategy Technology 2 The American Fur Company ⚫ ⚫ ⚫ ⚫ 3 John D. Rockefeller and the Standard Oil Trust ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 4 A Campaign against KFC Corporation ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 5 Jack Welch at General Electric ⚫ ⚫ ⚫ ⚫ ⚫ 6 Marc Kasky versus Nike ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 7 The Trial of Martha Stewart ⚫ ⚫ 8 Short Incidents for Ethical Reasoning ⚫ 8 Tangled Webs ⚫ ⚫ ⚫ ⚫ ⚫ 9 Citizens United v. Federal Election Commission ⚫ ⚫ ⚫ ⚫ 10 Good and Evil on the Rails ⚫ ⚫ ⚫ ⚫ 11 Union Carbide Corporation and Bhopal ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 12 David and Goliath at the WTO ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 13 A World Melting Away ⚫ ⚫ ⚫ 14 Harvesting Risk ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 15 Alcohol Advertising ⚫ ⚫ ⚫ 16 A Tale of Two Raids ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ 17 Adarand v. Peña ⚫ ⚫ ⚫ ⚫ 18 High Noon at Hewlett - Packard ⚫ ⚫ ⚫ ⚫ ⚫

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    14 TERM PAPER AND PRESENTATION TOPICS In this section we suggest more than 100 topics, including some for each chapter. Most are suitable for students in an introductory course and require research outside the text. Some are more challenging than others, but most are suitable for either term paper topics or in - class presentations and debates by individuals or teams. CHAPTER 1 THE STUDY OF BUSINESS, GOVERNMENT, AND SOCIETY ❑ A Description and Analysis of the Business, Government, and Society Relationships of (Any Large Corporation) ❑ A Comparison of Business - Government - Society Relationships in the United States and Europe ❑ Capitalism: Its Strengths and Weaknesses Assessed ❑ The Stakeholder Idea: Its Strengths and Weaknesses Assessed CHAPTER 2 THE DYNAMIC ENVIRONMENT ❑ The Changing Global Environment of Royal Dutch/Shell. ❑ How the Natural Environment Has Been Changed by Human Activity Since the Industrial Revolution ❑ How Postmaterialist Values Change the Business Environment ❑ How Advertising Reflects Changing Social Values ❑ Ten Events of the Last Decade that Most Changed the Business Environment CHAPTER 3 BUSINESS POWER ❑ How Economic Growth between 1860 and 1929 Changed American Society ❑ A History of the Dow Jones Industrial Average ❑ Economic Concentration in American Industry: Is It Too Great for the Public Interest? ❑ The Life of J. P. Morgan and His Impact on American Industry and Society ❑ The Life of John D. Rockefeller and the Rise of the Oil Industry ❑ Theories of Economic Elites in the United States: An Evaluation

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    15 CHAPTER 4 CRITICS OF BUSINESS ❑ The Life and Times of Huey Long (or Mary Lease) and His (Her) Populist Message ❑ Nestlé’s Marketing of Infant Formula: A Case Study of Criticism and Corporate Response ❑ The Story of the Anti - Apartheid Movement: Its Impact on American Corporations ❑ The Marxist Critique of Capitalism ❑ The Use of Social Responsibility Shareholder Proposals to Challenge Corporate Power ❑ Ralph Nader’s Life and Views about Corporations ❑ The Rise and Importance of Nongovernmental Organizations CHAPTER 5 CORPORATE SOCIAL RESPONSIBILITY ❑ A Description and Analysis of the Social Programs of (Any Large Corporation) ❑ The Contrasting Views of Milton Friedman and Ralph Nader on Corporate Social Responsibility ❑ The Rise of Civil Regulation as a Method for Advancing Global CSR ❑ The Story of the Kimberly Process Certification Scheme ❑ Are Socially Responsible Corporations More Profitable? CHAPTER 6 IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY ❑ How (One Large Corporation) Implements Social Performance ❑ The Tylenol Crisis and the Role of Johnson & Johnson’s Credo ❑ An Assessment of Philanthrocapitalism ❑ An Assessment of the Bill and Melinda Gates Foundation ❑ A Description and Evaluation of the Global Reporting Initiative ❑ Is Cause - Related Marketing an Ethically Compromised Form of Philanthropy?

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