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Lecture note Business Ethics: How to design and manage ethical organizations: Chapter 2 - Denis Collins

Chapter 2 - A historical perspective on business ethics. The main goals of this chapter are to: Describe salient business ethics issues in precapitalist America, benchmark an organization to the ethics compliance program best practices outlined by the federal sentencing guidelines, conceptualize how to maximize ethical behaviors in organizations based on an optimal ethics systems model. | A HISTORICAL PERSPECTIVE ON BUSINESS ETHICS Chapter Two Copyright © 2012 John Wiley & Sons Visit http://wileymanagementupdates.com/ for the latest in business news stories. Chapter 2 Learning Objectives Describe salient business ethics issues in precapitalist America Understand the ethical foundation of capitalism as argued by Adam Smith in the 1700s Appreciate the delicate balance between economic growth and stakeholder rights, particularly labor issues, throughout U.S. history Benchmark an organization to the Ethics Compliance Program best practices outlined by the Federal Sentencing Guidelines Conceptualize how to maximize ethical behaviors in organizations based on an Optimal Ethics Systems Model Chapter 2: Collins, Business Ethics Economic Growth and Business Ethics in Precapitalist America Christopher Columbus’s Arrival: “Get gold, humanely if possible, but at all hazards-get gold” Chapter 2: Collins, Business Ethics Columbus proposed an alternative trade route based on sailing | A HISTORICAL PERSPECTIVE ON BUSINESS ETHICS Chapter Two Copyright © 2012 John Wiley & Sons Visit http://wileymanagementupdates.com/ for the latest in business news stories. Chapter 2 Learning Objectives Describe salient business ethics issues in precapitalist America Understand the ethical foundation of capitalism as argued by Adam Smith in the 1700s Appreciate the delicate balance between economic growth and stakeholder rights, particularly labor issues, throughout U.S. history Benchmark an organization to the Ethics Compliance Program best practices outlined by the Federal Sentencing Guidelines Conceptualize how to maximize ethical behaviors in organizations based on an Optimal Ethics Systems Model Chapter 2: Collins, Business Ethics Economic Growth and Business Ethics in Precapitalist America Christopher Columbus’s Arrival: “Get gold, humanely if possible, but at all hazards-get gold” Chapter 2: Collins, Business Ethics Columbus proposed an alternative trade route based on sailing west to India rather than east by land or sea Columbus signed a lucrative contract that entitled him to the rank of admiral, governor of any new lands discovered, and 10 percent of the revenues generated by the new lands Economic Growth and Business Ethics in Precapitalist America Roanoke and Jamestown Settlements In the 1580s Walter Raleigh and his business associates were granted a charter to establish a colony in the area of modern-day Virginia and North Carolina to trade, search for minerals, and plunder Spanish merchant ships Chapter 2: Collins, Business Ethics Charters allowed several people to create an organization by pooling their financial resources, which enabled bigger and riskier business projects to be undertaken Colonists began exporting tobacco to England in 1614 Lacking a sufficient number of laborers, the colonists enslaved indigenous men and women to work the tobacco plantations, eventually importing slaves from Africa to meet labor needs Economic Growth and