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Business Ethics
Best Practices for Designing and Managing Ethical Organizations

Fourth Edition
December 2025 | 520 pages | SAGE Publications, Inc
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Business Ethics: Best Practices for Designing and Managing Ethical Organizations, Fourth Edition focuses on how to create organizations of high integrity and superior performance. Authors Denis Collins and Eric D. Yordy explain how to reinforce ethical behavior and reduce ethical risks using a unique Ethical Systems Model that outlines how to hire and train ethical employees, make ethical decisions, and create a trusting, productive work environment. Taking a practical approach, this text is packed with tips, strategies, and real-world case studies that profile a wide variety of businesses, industries, and issues.

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Preface
 
Acknowledgments
 
About the Authors
 
Part I: An Introduction to Business Ethics
 
Chapter 1: Business Ethics – The Costs and Benefits
Introduction

 
Ethical Issues at Work

 
Costs Associated With Unethical Behaviors

 
Competitive Advantages of Ethical Organizations

 
Why do Good People Behave Unethically?

 
Building an Ethical Culture and the Ethical Systems Model

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 2: Ethical Decision-Making
Introduction

 
Cognitive and Moral Development

 
The Six Ethical Theories

 
The Six Ethical Theories

 
Ethical Behavior Model

 
Systematic Rational Ethical Decision-Making Process (H)

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 3: Organizational Governance and Stakeholder Relationships
Introduction

 
Traditional Shareholder-Oriented Governance Systems

 
Shareholder “Best Interests”

 
Innovative Stakeholder-Oriented Governance Systems

 
Organizational Governance: Best Practices and Common Issues

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Part II: Reinforcing Ethics by Preparing Personnel
 
Chapter 4: Hiring Ethical People
Introduction

 
Importance of an Ethics Screen

 
Step 1: Ethics Screen Notice

 
Step 2: Legal Ground Rules

 
Step 3: Behavioral Information

 
Step 4: Personality Traits and Related Characteristics

 
Step 5: Interview Questions

 
Step 6: Post-Interview Tests

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 5: Codes of Ethics and Codes of Conduct
Introduction

 
Purpose and Importance of Codes

 
Differences Between a Code of Ethics and a Code of Conduct

 
Creating and Implementing a Code of Ethics

 
Annual Code of Ethics Assessment

 
Codes of Conduct

 
External Incentives to Implementing Codes

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 6: Ethics Training
Introduction

 
Building Awareness, Trust, and a High-Integrity Work Culture

 
Ethical Culture Workshops

 
Code-of-Conduct Workshops

 
Ethics Workshops

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 7: Respecting Employee Diversity
Introduction

 
An Overview of Diversity

 
Diversity: Compliance With the Law

 
Diversity: Beyond Compliance

 
Diversity Training

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Part III: Managing Internal Operations
 
Chapter 8: Managers as Ethical Leaders
Introduction

 
Managerial Power

 
Leadership Styles and Ethics

 
Ethical Leadership

 
Using Goals to Foster Ethical Behaviors

 
Appraising Employee and Organization Ethical Performance

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 9: Ethically Engaging and Empowering Employees
Introduction

 
Ethically Engaging Employees

 
Ethically Empowering Employees

 
Empowering Through Teams

 
Empowering Through Group-Based Financial Incentives

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 10: Ethics Reporting Systems
Introduction

 
Employee Silence on Ethical Misconduct

 
Effective Internal Ethics Reporting System

 
Ethics Point Person

 
Formal Reporting: Ethics Assist Lines

 
Going Outside the Company: Whistleblowing

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Part IV: Being An Ethical Citizen in A Global Economy
Chapter 11: Global Sustainability

 
Introduction

 
Economic Growth and the World’s Changing Climate

 
Compliance with National and International Laws and Policies

 
Competitive Advantages of Green Businesses

 
Business Sector Responses

 
Managing the Environmental Change Process

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Chapter 12: Global Corporate Citizenship
Introduction

 
Cultural Orientations

 
High Risk Ethics Issues in Global Business

 
The Strategic Advantage of Acting Ethically in Global Business

 
Summary

 
Key Terms

 
Chapter Questions

 
 
Part V: Cases
 
Case Study 1 Opioid Responsibility: Big Pharma, Doctors, Consultants, and Patients
 
Case Study 2 Bayer and Monsanto: Acquiring A Global Giant With a Giant Image Problem
 
Case Study 3 The Ethical Use of AI in Business: Opportunities and Risks
 
Case Study 4 The Happiness Minimum Wage: The Story of Dan Price and Gravity Payments
 
Case Study 5 Volkswagen’s Diesel Scandal: Failure of the Code of Conduct
 
Case Study 6 Meta’s Conflict: Attracting Teen Users without Damaging Mental Health
 
Case Study 7 Deutsche Bank’s Path Back to Profitability: From Corruption to Compliance
 
Case Study 8 Starbucks: A Socially Responsible Firm and a Diversity Crisis
 
Case Study 9 Boeing 737 Max and the Challenger: The Tale of Flying Objects Falling From the Sky
 
Case Study 10 The Wells Fargo Scandal: A Tale of a Toxic Corporate Culture
 
Case Study 11 Uber’s #MeToo Reckoning: Sexual Harassment and Gender Discrimination
 
Case Study 12 The Paris Climate Change Agreement: Walmart and Amazon as Sustainability Leaders
 
Case Study 13 Corporate Citizen or Public Parasite? Amazon’s Complicated Relationship With the Tax Man
 
Appendix: Ethical Considerations
 
Glossary
 
Endnotes
 
Index
Key features
NEW TO THIS EDITION:
  • The new edition is available in Sage Vantage, an intuitive learning platform that integrates quality Sage textbook content with assignable multimedia activities and auto-graded assessments to drive student engagement and ensure accountability. Unparalleled in its ease of use and built for dynamic teaching and learning, Vantage offers customizable LMS integration and best-in-class support.
    • NEW! An AI Literacy module prepares students to engage confidently with today’s AI tools through an interactive, outcomes-focused experience—with minimal instructor lift and no course redesign required. Available exclusively in Sage Vantage and written by professors who teach and publish about AI, the AI Information Literacy, Academic Integrity, and Responsible AI Use module integrates video, data driven examples, applied activities, Knowledge Checks, and built-in assessments that help instructors track student understanding. Focused on strengthening critical thinking, the module teaches students how to evaluate AI outputs for accuracy and bias while developing responsible prompting strategies that support academic success without compromising students’ intellectual growth.
  • 2 new case studies: Case Study 3 The Ethical Use of AI in Business: Opportunities and Risks, and Case Study 6 Meta’s Conflict: Attracting Teen Users without Damaging Mental Health.
  • Updated What Would You Do? opening features give students more opportunities to consider dilemmas based on the real-life experiences of students.
  • Updated data and best practices incorporate the most current available research findings.
KEY FEATURES:
  • A practical and proactive approach to the material introduces students to concepts, cases, and applications that are relevant to their current and future professional lives.
  • Assignable self-assessments (available with Sage Vantage) help students evaluate the ethics of an organization or group that they are a part of.
  • An Ethical Systems Model (formerly called the Optimal Ethics System Model) provides students with a framework for creating and evaluating ethical organizations. Ethical Systems Model surveys summarize the best practices discussed in chapters and allow students to assess, benchmark, and continuously improve their own organization.
  • Up for Debate boxes offer current controversial business ethics topics that can be used for class discussion.
  • Ethics in Action boxes highlight a company implementing ethical practices discussed in the chapter.
  • Ethical Applications sections offer advice on how to implement a best practice discussed in the chapter.
  • In-depth case studies cover a wide range of topics and companies, including major public scandals at Boeing, Volkswagen, and Wells Fargo; the history of scandals and culture change efforts at Deutsche Bank; and Monsanto’s reputation related to genetically modified organisms.

Sample Materials & Chapters

Chs 1-2

Vantage Reference: 
Business Ethics - Vantage Learning Platform