The Chapters

The new edition brings many changes. Key updates and additions in the chapters include the following:

• Chapter 1, which introduces the subject matter, retains its pragmatic approach to the field based on four models of the business–government–society relationship. The discussion of capitalism is deepened to describe its historical development and the enduring attacks on its flaws.



• Chapter 2, on the business environment, is revised and updated to reflect recent events and the progress of trends.
  


• Chapter 4, on critics of business, extends discussion of business criticism in the United States back to the colonial era, and includes a new section on socialism and a new discussion of the tactics used by business critics.



• Chapter 5, on corporate social responsibility, updates readers on recent developments in codes of conduct and other initiatives to define the social responsibilities of transnational corporations.



• Chapter 6, on implementing social responsibilities, continues to focus on the tools and levers available to managers who want to create responsible corporations.It contains a new discussion of stakeholder engagement and an updated treatment of corporate social reporting.



• Chapter 7, on business ethics, is revised to cover the recent outbreak of corporate fraud and includes new discussion of the individuals, companies, and prosecutions involved.



• Chapter 9, on business in politics, is revised to show how the new campaign reform law passed in 2002 affected corporate electoral activity in the 2004 elections.



• Chapter 10, on regulation, includes a new discussion of regulation in foreign nations.



• Chapter 12, on multinational corporations, has updated commentary on the growing size and power of multinationals and the expansion of global trade.



• Chapter 16, on consumerism, has extended explanation of the historical growth of consumerism and a revised discussion of product liability.



• Chapter 17, on the changing workplace, contains a new section on the difficult task of balancing worker protection with the need to allow flexibility in workforce adjustment.



• Chapter 19, on corporate governance, is revised to discuss reforms related to recent corporate scandals and passage of the Sarbanes-Oxley Act.

The Case Studies

Every chapter, with the exception of Chapter 1, concludes with a case study. The cases illustrate one or more central themes in the chapter. Main issues in the cases have pro and con sides and will generate classroom debate and controversy.

Our philosophy of case writing is based on a few key beliefs. We believe that cases should raise sharp and, if possible, multiple issues. We believe that these issues should be developed, but not in exhausting detail. So our cases are of moderate length. We believe that cases should be written to generate questions rather than answer them. Therefore, we try to open lines of inquiry and we list central questions at the end. And we believe that, except for historical incidents, cases should be current. Therefore, we have updated cases carried over from the last edition.

Five new cases are added to the Eleventh Edition.

• "A Campaign against KFC Corporation." People for the Ethical Treatment of Animals was successful in pressuring some fast-food restaurant and supermarket chains to change the treatment of food animals by their suppliers. But KFC refuses to give in. The case explores the tactics of activist critics and the defensive actions of the target corporation.



• "Mark Kasky versus Nike, Inc." Kasky, a jogger, believed that Nike profited from abused Asian workers who made its shoes and clothing—and then lied about their working conditions. He sued Nike for consumer fraud, leading to novel and surprising court rulings.



• "The Trial of Martha Stewart." Was she guilty of a serious crime or was she a victim of overzealous government attorneys? Her story illustrates how the criminal prosecution of a corporate executive works.



• "Westar Goes to Washington." Westar, an electric utility in Kansas, had no political strategy until a dynamic new leader asked Congress to help him succeed in a diversification strategy. The leader turned out to be a crook and Congress showed itself to be a pragmatic institution.



• "Cendant Shareholders Attack Executive Pay." Henry Silverman created Cendant and made it one of the nation's largest and most profitable corporations. After a disastrous merger his strategic insight put the company back on a growth course. Even so, some of the shareholders think he is paid too much.

Chapter Opening Stories

As in past editions, we begin each chapter with a true story about a company, a biographical figure, or a government action to introduce the forthcoming material. Five new stories are added to this edition.

• "Mary 'Mother' Jones." Mother Jones was a labor leader. Now largely forgotten, she was one of the most famous women in America at the turn of the twentieth century. She understood how to use power and she used it to attack corporations.



• "The Fall of Arthur Andersen." Arthur Andersen was once noted for its high ethics. It fell to practices that would have shocked its founder. Had it retained its integrity it might have blunted some of the biggest accounting fraud scandals.



• "Public Law 108-357." How does a bill become a law? This is the story of a mammoth tax bill that became a business lobbyist’s paradise. It is a story that departs from high school civics texts.



• "Ted Turner Attacks Media Giants." The billionaire takes a maverick position among telecommunications executives on growing concentration in the industry.



• "Harvey W. Wiley." Wiley was the nation's first great consumer crusader. Like Ralph Nader many years later, he worked hard for legislative gains only to be defeated by the deep political power of corporations.

Support Materials for Instructors

An Instructor's Resource CD/ROM includes sample course outlines, chapter objectives, case study teaching notes with answers to the case questions, term paper topics for each text chapter, and a test bank covering chapters and case studies, including multiple-choice, true/false, fill-in, and essay questions.

A set of PowerPoint® slides highlighting chapter topics is available for use in classroom lectures.

A Computerized Test Bank contains all of the questions in the print test bank. It is a powerful system that allows tests to be prepared quickly and easily. Instructors can view questions as they are selected for a test; scramble questions and answers; add, delete, and edit questions; create multiple test versions; and view and save tests.

A book-specific Online Learning Center features resources for both instructors and students. The site offers downloadable supplements for instructors and interactive exercises and self-quizzes designed to enhance student understanding of text material. Go to: www.mhhe.com/steiner11e.