business

ethics

Managing Corporate
Citizenship and Sustainability
in the Age of Globalization

Fourth edition

ANDREW CRANE

DIRK MATTEN

OXFORD
UNIVERSITY PRESS
 DETAILED CONTENTS

List of figures xii

List of boxes xiv
How to use this book xvi
Guide to the book xx
How to use the Online Resource Centre xxii
Acknowledgements xxiv

PART A

Understanding Business Ethics

1 Introducing Business Ethics

What is business ethics? 4

Why is business ethics important? 9
Business ethics in different organizational contexts 15
Globalization: a key context for business ethics? 18
Sustainability: a key goal for business ethics? 31
Summary 36

Framing Business Ethics

CORPORATE RESPONSIBILITY, STAKEHOLDERS, AND CITIZENSHIP
Towards a framework for business ethics 45
What is a Corporation? 45
Corporate social responsibility 48
Stakeholder theory of the firm 58
Corporate citizenship—the firm as a political actor 67
Summary 78
viii DETAILED CONTENTS

NORMATIVE ETHICAL THEORIES

Introduction 86
The role of ethical theory 87
Normative ethical theories: International origins and differences 88
Normative ethical theories and religion 91
Western modernist ethical theories 92
Alternative perspectives on ethical theory 114
Summary: towards a pragmatic use of ethical theory 123

DESCRIPTIVE ETHICAL THEORIES

Introduction 135
What is an ethical decision? 136
Models of ethical decision-making 137
Individual influences on ethical decision-making 142
Situational influences on decision-making 156
Summary 174

TOOLS AND TECHNIQUES OF BUSINESS ETHICS MANAGEMENT

Introduction 183
What is business ethics management? 183
Setting Standards of ethical behaviour: designing
and implementing codes of ethics 190
Managing stakeholder relations 199
Assessing ethical Performance 206
Organizing for business ethics management 214
Summary 219
 DETAILED CONTENTS ix

Contextualizing Business Ethics

The Corporate Citizen and its Stakeholders

Introduction: reassessing the importance of

shareholders as stakeholders 230
Shareholders as stakeholders: understanding
corporate governance 231
Ethical issues in corporate governance 239
Shareholders and globalization 252
Shareholders as Citizens of the Corporation 260
Shareholding for sustainability 267
Summary 275

Introduction 286
Employees as stakeholders 287
Ethical issues in the firm-employee relation 288
Employing people worldwide: the ethical challenges of globalization 317
The corporate Citizen and employee relations 324
Towards sustainable employment 327
Summary 330

Introduction 339
Consumers as stakeholders 340
Ethical issues, marketing, and the consumer 343
Globalization and consumers: the ethical challenges of
the global marketplace 362
Consumers and corporate citizenship: consumer sovereignty
and the politics of purchasing 365
Sustainable consumption 369
Summary 378
x DETAILED CONTENTS

9 Suppliers, Competitors, and Business Ethics 387

Introduction 388
Suppliers and competitors as stakeholders 389
Ethical issues and suppliers 393
Ethical issues and competitors 402
Globalization, suppliers, and competitors: the ethical
challenges of global business networks 407
The corporate Citizen in business-to-business relationships:
ethical sourcing and fair trade 414
Sustainability and business relationships: towards
industrial ecosystems? 427
Summary 431

Introduction 440
Civil society organizations as stakeholders 442
Ethical issues and CSOs 446
Globalization and civil society organizations 461
Corporate citizenship and civil society: charity,
collaboration, enterprise, or regulation? 465
Civil society, business, and sustainability 478
Summary 481

Introduction 490
Government as a stakeholder 490
Ethical issues in the relationship between business and government 497
Globalization and business-government relations 513
Corporate citizenship and regulation: business as key player
in the regulatory game 517
Governments, business, and sustainability 525
Summary 529
 DETAILED CONTENTS xi

12 Conclusions and Future Perspectives 537

Introduction 538
The nature and scope of business ethics 538
Globalization as a context for business ethics 538
Sustainability as a goal for business ethics 540
Corporate citizenship and business ethics 541
The contribution of normative ethical theories to business ethics 542
Influences on ethical decision-making 543
The role of management tools in business ethics 543
The role of different stakeholder constituencies in business ethics 544
Trade-offs and conflicts between different stakeholder groups 546
Summary 546

References 549
Subject index 579
Name index 592
Countries and regions index 599
Companies, organizations, and brands index 601