corporate responsibility: the american...

Cambridge University Press978-1-107-02094-8 - Corporate Responsibility: The American ExperienceArchie B. Carroll, Kenneth J. Lipartito, James E. Post, Patricia H. Werhane and Kenneth E. Goodpaster IndexMore information

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Index

3M, 283, 367, 393Pollution Prevention Pays (3P) program, Plate 72,

283, 398

9to5: National Association of Working Women, 347

Abbott Laboratories, 318abolition movement, Plate 4, 32, 60

human rights argument, 39Abrams, Frank, 197, 219Abt Associates Inc., 284Abzug, Bella, 239academic advisors, 10academic foundations of corporate responsibility,

256–259academic study of corporate responsibility, 288–291,

369–370Academy of Management, 289, 291

Social Issues in Management (SIM) Division, 260,289, 370

accountability in organizations, 10accountability of corporations, 22–23, 117–120accounting profession, 104

origins, 111accounting regulations, 94Ackerman, Robert W., 288–289activism, 231

in the 1960s, 231new calls for business responsibility, 234–246religion and social activism, 94–95social movements in the 1960s, 233–234See also Black Power movement; civil rights;

consumerism; environmental movement;feminism; unions; women’s movement.

Acumen Fund, 394Adams, John, 37Addams, Jane, 113–114, 142Adelphia Cable, 378adidas-Salomon, 362advertising, 132, 202, 207

consumer concerns in the 1990s, 351consumer rights protection, 207–208corporate advertising, 274–275development in the 1920s, 136IBM (1980), Plate 92IBM recruiting advertisement (1969), Plate 65institutional, 180, 206

national advertising, 177Oldsmobile advertisement (1952), Plate 59

Aetna Insurance, 116, 284, 314affirmative action, 237, 251, 313, 348, 349, 357Affluent Society (Galbraith), The , 207Afghanistan invasion (2001), 378African Americansblack capitalism, 291–293conditions in the 1920s, 137equality in the workplace, 220–223fight for desegregation, 235–236flood victims, Louisville, Kentucky (1937), Plate 49impact of WW I, 129impact of WWII, 185–187impacts of the New Deal, 178Ku Klux Klan activity in the 1920s, 131middle-class aspirations, 205Montgomery bus boycott, 235northward migration, 186–187, 222–223population, 341racial tensions in the 1990s, 346rights of, 406union barriers, 186–187

“age of accountability”, 23“Age of Reformation”dominance of large corporations, 265

agency problem, 213, 385agency theory, 40Agent Orange, 232, 246Agricultural Adjustment Act (1933), 162Agricultural Adjustment Agency, 161agricultureNew Deal policies, 162production in the US, 397–398

AIG (American International Group, Inc.), 319, 379air conditioning, 181air travel, 148Alabamainvestment in, 224

Alar (ripening chemical), 350Alcoa, 182, 184, 265, 335, 361alcoholsocial consequences of, 93–94

Aldrich Commission, 102Alexander, Magnus, 128Alger, Horatio, 71, 87, 101alienation of labor, 33, 52–54

513

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Allaire, Paul, 349Allende, Salvador

CIA involvement in overthrow and murder, 271Allied Chemical, 130Allied Corporation, 312Allis Chalmers Manufacturing Co., 365Allstate Corporation, 345al-Qaeda, 378alternative communities (pre-Civil War), 59–60Altria, 15Amalgamated Copper Company, 103Amana Community, 19, 60, 79American Anti-Slavery Society, 48American Association of Advertising Agencies, 207American Association of Collegiate Schools of

Business (AACSB), 290American Cyanamid, 364, 367American Democracy, Plate 58American Enterprise Association (later Institute), 225American Enterprise Institute, 330American exceptionalism, 141American Express, 314American Federation of Labor, 76, 99American idealism (pre-Civil War), 59–60American Institute of Certified Public Accountants

(AICPA), 383American institutions

global reach of influence, 5American National Bank, 295American Petroleum Institute, 275American Plan, 140–141American pragmatism, 158American Railway Association’s Bureau

of Explosives, 108American Railway Union, 77American society

changes in the 1990s, 340–343American Stock Exchange, 385American-style capitalism, 340

achievements in the 1920s, 151spread of, 342

American Tobacco Company, 71, 95Americanization programs for workers, 144Americans with Disabilities Act (ADA, 1990), 347Anaconda Corporation, 106anarchism, 74, 76, 88anarchist unions, 77Anderson, Ray C., Plate 117, 355, 400Andrews, Kenneth R., 10animal rights movement, 233, 280annual reports,

as part of public service view of firms in the1910s and 1920s, 138

anti-Semitism, 156, 174antidiscrimination law, 341, 346antitrust, 122, 149, 191, 199

agreement on rules, 115and the New Deal, 159–165antitrust laws, 78, 151, 160, 161, 202, 415cases in the 1950s, 227–228division of the Justice Department, 227

extension of laws under Woodrow Wilson,119–120

in the Progressive Era, 94–95Antonik, Andrew, 97apartheid system in South Africa, 281–282, 318, 372withdrawal of American companies, 281–282

AppalachiaTVA developments, 165

Appalachian farmers, 161Apparel Industry Partnership, Plate 99Apple, Inc., 342, 411Apple Macintoshfirst computer (1984), Plate 91

Appleby, Joyce, 31arbitrageurs, 333–334architectureinfluence of the business community, 16

Arco, 313, 345Aristotle, 417Arizona Chemical, 391Armco Steel, 308Armour and Swift, 115Arthur Andersen, 378, 382–383Arthur Young and Co., 314artificial legal personcorporation as, 11

Arts & Business Council of Chicago, 15Arts and Crafts movement, 16assembly-line operationsFord Motor Company, 144–145International Harvester, Plate 53

Association of National Advertisers, 207Association to Advance Collegiate Schools of

Business (AACSB), 320AT&T, 115, 137, 138, 142, 149, 163, 181, 227, 374, 404Atari, 330Atlantic Richfield Company, 278, 357action on civil rights, 251

audit committee, 357–358, 385auditing of financial institutions, 104automobile industry, 181activism of Ralph Nader, 240–241CAFE standards, 276Ford’s assembly-line system, 111fuel efficiency standards, 276government bailouts, 379organization of labor unions (1930s), 9resistance to higher safety standards, 275–277

Avery, Sewell, 191Avon, 362, 363

B-Corporations (Benefit Corporations), 393–394,422

Babbitt, George, 149baby boomersaging population (1990s), 340–341

Baer, George, 69–70, 73, 74, 78Baker, George, 104Bali bombings (post-9/11), 378BangladeshGrameen Bank, 392–393

514 INDEX






bank bailouts, 319–320bank deposit insurance, 157bank failures, 157, 166, 167, 171

Continental Illinois bailout (1984), 319–320“too big to fail” argument, 320

Bank of America, 83, 284, 312, 379banking

central banking system, 120development of the federal banking system,

44–45banking industry

complaints about, 233banking system, 33

debate over centralization, 68–69impacts of corporate growth, 68–69Progressive Era reforms, 103–104

Baptist ministeron manager’s reponsibilities, 112–113

Barnard, Chester, 180, 211Battlecreek community, Michigan, 80Bauer, Raymond A., 288–289Baumhart, Raymond C., 257Bear Stearns, 379Beech-Nut, 350Beecher, Henry Ward, 70, 111Beeks, Gertrude, 82Believable Corporation (D’Aprix), The, 280Bell, Daniel, 204, 268Bell Laboratories, 181, 227Bellamy, Edward, 84, 85Ben & Jerry’s, 297, 332, 373

values of the business, 294–295Bennett, Harry, 436Bennett, John, 215Benton, William, 189benzene exposure in chemical plants, 143Berkshire Hathaway Inc., 358, 372Berle, Adolf, 195, 199, 209, 211, 212, 223

on power and responsibility, 117–118on the public-minded corporation, 200reworking corporate governance, 168–171

Berlin Wall, 338Berman, Jeffrey, 292–293Bernanke, Ben, 384Best Buy, 408“best places to work” listings, 323Bethlehem Steel, 141, 156Better Business Bureau, 207Beveridge Report, 190BF Goodrich, 182Bhopal disaster, 316, 340Biddle, Nicholas, 45Bill of Rights, 31, 32, 35, 36, 37, 47bin Laden, Osama, 378Birdseye, Clarence, 135, 151bishops

ethical challenge to business, 324–326black capitalism, 291–293black males

Constitutional rights granted, 49Black Panthers, 236

Black Power Dolls (Shindana Toys), Plate 84Black Power movement, 236, 292black rage, 232Blankfein, Lloyd, 387Bledsoe, Matthew, 49blind trusts, 166–167Blomstrom, Robert, 284Blough, Roger, 222Blumberg, Phillip, 266board committees, 357–358boards of directorsaudit committee, 385diversity of representation, 24GM in the 1990s, 358influence on corporate responsibility policy, 10international outside directors, 357responsibilities, 385social issues committee, 278

Boesky, Ivan, 332, 350, 371Boise Cascade, 292Bolshevism, 178Bono, 323Bonus Army marchers, 152–155Borg Warner, Inc., 280Boston Associates, 41Boston Tea Party, 32, 36–37Boulware, Lemuel, 217Boulwareism, 217, 220Bowen, Howard, 214, 219, 256, 333business ethics, 212–214monitoring business ethics, 216professional values within corporations,

212–213social and professional values, 212–214

Bowerman, Bill, 293Bowie, Norman, 290Box Tops for Education, Plate 101BPDeepwater Horizon explosion (April 2010),

Plate 111Deepwater Horizon oil spill (2010), 18, 397,

400–401, 403Bradshaw, T. F., 251brand image, 22Brandeis, Louis, 120, 133, 146, 147, 168, 197influence on Berle, 117on professionalism in business, 110–111,

389on the financial system, 103on the life insurance industry, 103on transparency, 23on women workers, 99version of capitalism, 135

branding of consumer goods, 116Braungart, Michael, 399Brazil, 9, 338, 418–419Brennan, John, 411Brent Spar, 363–364bribery and corruption, 401in the 1990s, 364–365

bribery of foreign officials, 280–281

INDEX 515






BRIC countries (Brazil, Russia, India, China), 338,418–419

Bristol-Myers, 318Bristol-Myers Squibb, 364Bristol-Myers Squibb Foundation, 345British East India Company, 34, 35

Boston Tea Party, 36–37broadcast licensing, 163Brookings, Robert, 127Brookings Institution, 127Brotherhood of Sleeping Car Porters, 186Brown, Lewis, 225Brown-Johnston Company, 190Brown University, 110, 126Brown v. Board of Education, 235, 237Brundtland Declaration (1987), 397, 398Bryan, William Jennings, 88Buchholz, Rogene, 321Buckley, William F., 225Buffett, Warren, 293, 358, 372Buick, 137Bureau of Labor standards, 245Burford, Anne Gorsuch, 315Burke, James E., 317, 372Burnett, Winston A., 292Burns, Ursula, Plate 80Burroughs, 367bus boycotts, 231Bush, George H.W., 324, 327, 353

Points of Light Initiative, 324Bush, George W., 354, 379business

as a force for good, 22benefits of government regulation, 115–116dividend from industrial peace, 204–205response to the New Deal, 178–182role in national defense, 187self-regulation by business, 148–150social interest as self-interest, 114–117social transformation in the 1970s, 268–269support from the Reagan administration,

303–304Business Advisory Council, 182Business and Society (journal), 291Business and Society (McGuire), 257Business and Society (Steiner), 260business case for social responsibility, 146, 216–217,

262, 368–369business conservatism in the 1920s, 131Business Council, 274, 296Business Enterprise Trust, 353, 371–372business environment

monitoring by companies, 271–273business ethics, 7, 10, 18–20, 212–214, 369

academic study of, 288–291and compliance-based programs, 384–385,

386–387and corporate responsibility (1980s), 321–323challenge from Catholic bishops, 324–326codes of ethics, 384corporate culture at Enron, 382–383

corporate scandals of the early 2000s, 378Ethics Officers Association, 371global codes of conduct, 365Society for Business Ethics (SBE), 290teaching in business schools, 132–135

Business for Social Responsibility, 371business giving, 246–248philanthropy in the 1990s, 344–346

business–government relationship, 184national defense, 187partnership, 182See also government–business relationship.

business ideologyrange of views in late 1980s, 332–333

business leaderspolitical activities in the 1910s, 101push for federal government regulation,

100–101business legitimacychallenge from social movements, 233–234damage in the 1970s, 269–271impact of the Nixon era, 270–271managing challenges to legitimacy, 25public debate, 16–17, 25public opinion in the 1930s, 180–181view in the 1990s, 340

business liberalism, 140, 188critics from the left, 225critics from the right, 223–225

business model for city government, 101–102business organizations, 127–128business professionalismrise of, 109–111

business reformersreligious motivations, 115

business regulationPopulist Party platform, 78

business responsibilitydemands of social movements, 234–246modernization to counter radicalism, 215–216

Business Roundtable, 274, 296, 306–307, 311, 321,322, 334–336

Business Roundtable Institute for Corporate Ethics(BRICE), 386

business schools, 110, 111teaching about corporate responsibility, 288–291teaching business ethics, 132–135teaching social responsibility, 259–260

Businessweek magazine, 66Butler, Smedley, 153

Cadillac, 137Caesar’s Column (Donnelly), 88CAFE (Corporate Average Fuel Economy) standards,

276Calhoun, John, 49Californiafishing stocks depletion, 109high-tech entrepreneurial subculture, 296–297Santa Barbara oil spill (1969), 244Silicon Valley, 293

516 INDEX






California Agricultural Labor Relations Act (1975),236

Caltex, 367Calvert Funds, 394Calvinist Protestantism, 57–59cancer

caused by industrial processes, 97canned goods, 182cap-and-trade methods, 399capital

corporation’s ability to raise, 42–44role in free markets, 54

capital–labor discord, 140capital–labor interdependence, 142capital markets

reform under the New Deal, 165–168strategic value of companies, 331

capitalism, Plate 50and property ownership, 50–52and the Protestant work ethic, 57–59benefits and costs associated with, 1crisis of confidence in the 1970s, 297–299criticisms of, 8defense against radicalism, 215–216foundations of, 31–61idealogical debates in the 1930s, 157–158Marx’s view of weaknesses, 53–54organizing to defend, 127–128power of corporations, 1

capitalism in crisisimpacts of the Great Depression, 155–156New Deal, 156–157

Carbon Disclosure Project, 399carbon offsets, 399Carnegie, Andrew, 19, 66, 68, 70, 73, 110, 114, 121

caricature, Plate 22extent of wealth, 68furnaces at Braddock, Pennsylvania, Plate 20on inheritance of wealth, 56philanthropy, 85–88, 127Pittsburgh steel works, Plate 19power of giant enterprises, 71rise to industrial power, 85–88steady employment strategy, 121steel making, 85–88technological innovation, 111wealth as a sacred trust, 85–88

Carnegie Corporation of New York, 127Carnegie Foundation, 87, 127Carnegie Library, Allegheny, Pennsylvania, Plate 23Carnegie Steel, 71Carol, Estelle, 239Carroll, Archie, 7, 290Carson, Rachel, 243, Plate 69cartels, 79, 115Carter, Jimmy, 270, 274, 285–286, 299, 304, 314Carter–Reagan presidential debate, 307Caterpillar Tractor, 365Catholic Church, 57

bishops’ ethical challenge to business, 324–326doctrine on workers’ rights and conditions, 112

social reform, 176views of Father Charles Coughlin, 156

Catholicsand the Ku Klux Klan, 131business people, 59workers, 87

Cato Institute, 330Caux Round Table Principles, 366–367, 413CBS, 372cell phones, 342–343center firmsdominance of, 265rewriting the social charter (1970s), 273–277

Center for Ethical Business Cultures (CEBC), xvii,xix, xxi

Centesimus Annus (Papal encyclical, 1991), 339central banking system, 120Ceres Principles, 366–367, 400Chamber of Commerce, 128, 134, 135, 148, 150, 155,

179, 180, 184, 189, 190, 204, 210, 309Chamberlain, David, 326Chamberlain, Neil, 254–255Champion International, 314Chappell, Kate, 373Chappell, Tom, 373charitable donations by corporations, 83Chase, Stuart, 161Chase Manhattan Bank, 234, 281–282, 298Chavez, Cesar, 236chemical industry, 243public distrust following accidents in 1984, 317resistance to cleanup legislation, 285–288

Chemical Manufacturers Association, 287, 317Chester, Colby, 181Chevrolet, 137Chevron Corporation, 357Chief Compliance Officer (CCO), 383Chief Executive Officer (CEO), 383influence on corporate responsibility policy, 10

Chief Financial Officer (CFO), 382, 383child labor, 48, 175complexities of reform, 99–100

child labor laws, 48, 53Chile, 418China, 9, 338, 418–419move towards market economics, 338

Chiquita Bananas, 365Chouinard, Yvon, Plate 115Christian ethicsSocial Gospel, 112–113

Christian Science Monitor, 200Christian values in business, 214–215Christianity, 59argument defending slavery, 48–49

Chrysler, 181, 275, 284bailout conditions in 2009, 276

Church of England, 57CIAinvolvement in Chile 1973, 271

cigarette advertisements, 207Citibank, 324, 367, Plate 89

INDEX 517






citiesovercrowded urban populations, 93–94social action to improve conditions, 109

Citigroup, 360–361, 379Citizens United v. Federal Election Commission, 2, 12,

43, 404city government

business model, 101–102City Venture Corporation, 312civic life

role of the corporation, 15–16civil rights, 232, 234, 250, 271

after WWII, 185–187and social regulation, 237–238black capitalism, 291–293disabled citizens, 347farm workers, 236in the 1990s, 346–350outside the workplace, 346

Civil Rights Act, 415Civil Rights Act (1964), 232, 234, 237, 251Civil Rights Act (1991), 341, 346, 348civil rights movement, 49, 185, 223, 230, 231,

235–238, 346, 415corporate responses, 250–251

Civil War, 44, 48, 49, 60, 68, 92Emancipation Proclamation (1862), 49

Civilian Conservation Corps, 157Clairol, 314Clark, J. M., 13, 25Clark, John Bates, 121Clark, John Maurice, 216–217Clark, William, 50class resentment in Germany (1930s), 154Clean Air Act (1963), 276Clean Air Act (1970), 244–245Clean Air Fuel Efficiency, 276Clean Water Act (1960), 243climate change, 356Clinton, William Jefferson, 341–342, 354, 362coal mining

company towns, 52conditions in the nineteenth century, 69–70fight for workers’ rights, 69–70mine safety, 100

Coca-Cola Company, 15, 22, 323, 345, 374, 393Code of Hammurabi, 34codes of conduct, 25Coffee, John, 383Cohen, Ben, 373Cold War, 184, 187, 201, 205, 206, 224, 227

end of, 338position of business, 210–211

colonizationBritish East India Company, 34, 35

Colorado Fuel and Iron Company, 122–123Columbia community, Maryland, 19Committee for Economic Development (CED, 1942),

189, 205, 225, 370conception of social responsibility, 259on Keynesian policies, 189

vision of corporate responsibility, 296common goodconcept of, 4rights and responsibilities, 4–5

commons concept, 4Commonwealth Edison, 122communes, 79–80communication technologiesimpacts of innovations, 411–412revolution in the 1990s, 342–343

communism, 123, 124, 215, 227, 304and consumerism, 252collapse of the Soviet Union, 338fear of, 139, 231, 269in America, 159in Russia, 154Marxist vision, 53radical organizations (1970s), 269use of modernization to counter, 215–216

communist countries, 197communist economies, 206communist union leaders, 204communitarianism, 79Community Chest, 150, Plate 62community relationsin the 1990s, 344–346initiatives, 248–250management of, 10

community responsibility, 91–92company store, 52company town, 50, 51–52Lowell, Massachusetts, 41, 81, Plate 2Pullman, Illinois, 80–81, 85, Plate 24

competitionantitrust actions (T. Roosevelt), 94–95changes post-WWII, 202–203concerns about large-scale businesses, 66idealism in the 1920s, 148oligopoly, 68

competitivenesschallenges in the 1980s, 328–329new thinking in the 1980s, 330–331

compliance programs, 383–384and business ethics, 384–385, 386–387

Comprehensive Employment and Training Act(CETA), 314

Comprehensive Environmental Resource Clean-upLaw and Administration (CERCLA, 1980), 285

computer industry, 296–297Concert for Bangladesh, 323Conference Board, The 128, 327–328, 345, 396, 410Congregational Church, 57, 113Congress of Industrial Organizations (CIO),

173, 175Connolly Hot Oil Act (1935), 163conservation, 6, 10, 105, 106, 162–163, 259, 284, 305,

315–316, 366, 397–398, 400conservatism, 33, 57, 87, 88, 95, 99, 116, 218, 220and fear of communism, 139and sunbelt, 224, 225and the New Deal, 177–178

518 INDEX






backlash against reform (1920s), 131business case for social responsibility, 216business organizations, 134, 172, 179Catholic Church on business ethics, 324–326critics of business liberalism, 223–225evolution of the New Deal, 156–157Herbert Hoover, 147social change during Nixon’s presidency, 233–234widening of stock ownership, 132

conservative think tanks, 330Constitution (US), 31, 35, 36, 44, 47Constitutional rights, 37–38, 61constructive social engagement by business, 416consulting and advisory firms, 10consumer activism

Ralph Nader, 240–242, 275, 350consumer advocacy in the 1980s, 323consumer affairs departments, 254consumer affairs management, 10consumer boom in the 1950s, 183consumer buying decisions

influence of corporate social responsibility, 351–353consumer complaints

dealing with, 254consumer credit

cheap credit in the 1920s, 154consumer-focused corporations, 205–207consumer goods, 109, 131–132, 183

automobiles, 144–145consumer movement, 240–242, 250, 271

corporate responses, 252–254information for consumers, 253issues in the 1990s, 350–351

consumer opinion study (Walker Group 1994),350–351

Consumer Product Safety Act (1972), 242Consumer Product Safety Commission (CPSC,

1972), 234, 242, 262, 276, 350consumer protection

in the 1930s, 161–162consumer-related corporate initiatives, 351–353Consumer Reports, 161consumer rights, 234, 240consumer rights protection

advertising, 207–208consumerism, 195

and social regulation, 242boom in the 1920s, 130, 132, 135–137growth of, 205–207hierarchy of needs, 208–209in the 1950s, 198marketing concept, 208social ethic of producers, 212–214

consumerscreation of, 39

Consumers’ Research, 161Consumers Union, 161consumption

economic importance of, 188Continental Army, 45–46Continental Baking, 181

Continental Group, 314Continental Illinois National Bank and Trust

Company bailout (1984), 319–320Control Data, Plate 86Control Data Corporation, 246, 248–249, 297, 312Cooke, Morris, 140Coolidge, Calvin, 131, 147Cooper, Cynthia, 386Copeland, Melvin, 134, 208Cordiner, Ralph, 196Cornell University, 321Corning, 182Corning Glass Works, 15corporate accountabilitypromotion in the Progressive Era, 117–120

Corporate Average Fuel Economy (CAFE), 276corporate behaviordefinition of, 209–210government monitoring and regulation, 94guidelines, 402–403standards of behavior, 402–406

Corporate Citizen, 344corporate citizenship, 7, 257, 369, 403–406global, 281, 360, 364

corporate economyrestructuring under the New Deal, 157–158

corporate federal income taxesand business legitimacy, 408

corporate givingcase for, 217–218local community engagement, 218support for education, 218–219tax deductible, 218

corporate governance, 10ethics versus compliance, 386–387reform, 331responsibilities of boards of directors, 385reworking under the New Deal, 168–171shareholder concerns in the 1990s, 356–359

corporate growthimpacts on the banking system, 68–69

corporate irresponsibilitydamage to the corporate image, 280–281reports in the 1970s, 246

corporate legitimacyaffirmation in the 1950s, 195–229corporate federal income taxes, 408executive compensation, 407–408legitimacy gap, 18, 407–408managing the gap, 406–409

corporate managersfiduciary duty to shareholders, 118

corporate personhoodSupreme Court rulings, 42–44

corporate philanthropy, 246–248case for corporate giving, 217–218community relations initiatives, 248–250Enron’s use of, 383global philanthropy, 361–362in the 1990s, 344–346organization of, 126–127

INDEX 519






corporate philanthropy (cont.)professional approach, 247–248strategic approach, 303strategic philanthropy, 326–328, 344–346

corporate planningsocio-political forecasting, 271–273

corporate political donationsNixon’s CREEP fund, 270–271

corporate powerand social responsibility (nineteenth century),

69–70coal industry, 69–70curbing abuses (Progressive Era), 117–120decline of the corporation problem, 199–203

corporate raiders, 86, 331–332corporate responsibility

academic foundations, 256–259and religious values, 214–215area of academic study, 9–10as a challenge to business, 9as a concept, 7–9as part of normal business practice, 337broadening of scope (1920s), 124business case for, 116changes during the 1980s, 336conflicting views in the 1980s, 320–321dealing with faults in capitalism, 8debate in the 1960s and 1970s, 260–262economic crisis in the 1970s and 1980s, 266–268economic dimension, 8emerging vision in the 1980s, 318–319enduring patterns, 414–417environmental dimension, 7“establishment” view, 265evolution of ideas about, 3extent of responsibilities, 402–403field of practice, 9–10“for what” question, 24, 402global issues in the 1990s, 359–365globalization issues, 339history of, 2–3how to meet responsibilities, 24human rights protection, 395–397ideological debate, 7–9in terms of business ethics (1980s), 321–323institutionalization, 337, 343–344interaction of key events, 3landmark cases in the 1980s, 316–319legacy of the 1920s, 150–151legacy of the 1960s and 1970s, 262–263legacy of the 2000s, 412management approaches (1970s), 264–440meanings of, 6–11multinational enterprises, 337possible future scenarios, 421–424power and responsibility, 403practitioners, 259professional values, 212–213prospects for the future, 417–453responses to broader social issues (1960s), 250–255rising expectations in the 1960s and 1970s, 262–263

social dimension, 7stakeholder dimension, 8strategic approach, 303teaching, 259–260thinking in the 1960s, 256through professional management, 210–211to stakeholders, 9“to whom” question, 23, 394voluntariness dimension, 8worker benefits, 219–220

corporate responsibility initiativesworkplace diversity in the 1990s, 348–350

corporate scandalsearly 2000s, 378

corporate social innovationReagan Era, 311–315

corporate social performance measurement, 7corporate social responsibility (CSR), 7and business strategy, 10as an innovation, 108changes in the 1980s, 304–307changes under President Reagan, 304–307exemplar firms, 373–374internal and external inducements, 416stages of thinking on, 285

corporation problembalancing power and responsibility, 195decline after WWII, 199–203govenment intervention, 209–210

corporationsability to raise capital, 42–44accounting practices (1910s), 104benefits and costs associated with, 1concerns about large-scale firms, 66–69crisis of confidence in (1970s), 297–299criticisms in the 1970s, 265–266debate over exent of responsibility, 1–3defining features, 11–12economic and non-economic responsibilities, 8–9engagement in public debate, 16–17evolution into private entities, 63–65evolution of, 33, 42–44global reach of influence, 5implications of increasing size, 62incorporation requirements, 42–44influence on progress, 6lack of financial oversight (1910s), 104legal status, 2, 42–44need for social legitimacy, 1–3new corporate order post-WWII, 187origins of, 31–61power of, 1, 5power over individuals, 63–65reasons for “doing good”, 3–6rights and responsibilities, 5, 23–24rise at end of the nineteenth century, 62–89rise of large-scale firms, 65–66role in civic life, 15–16role in economic life, 11–12role in political life, 12–15role in social/cultural life, 15–16

520 INDEX






setting for growth of, 63–65spending on political campaigns, 2view of Peter Drucker, 211–212

corporatism, 74corrupt business practices

damage to the corporate image, 280–281corruption and bribery, 280–281, 401

in the 1990s, 364–365cost accounting, 111cost-of-living adjustments, 203cotton gin, 41Coughlin, Father Charles, 156, 171Council of Economic Advisors, 190, 321, 330Council of Foundations, 358Council on Economic Priorities, 322, 364, 372Council on Environmental Quality, 244Council on Financial Aid to Education, 219“counter-cultural” enterprise, 295countervailing powers, 2, 17, 202, 207, 412, 418cowboy capitalism, 423Coxey, Jacob, 88craft unions, 77Creating Competitive Advantage (Porter), 331creationism, 55creative capitalism concept, 401–402, 422Croly, Herbert, 91–92crop dusting with DDT (1950s), Plate 68Crosby, Philip, 331cultural wage, 137culture

hypernorms, 402cultures of business leadership, 296–297Cummins Engine Co., 15, 246, 247, 312, 313, 357,

372, 373action on social issues, 250–251

Cuyahoga River fire, Cleveland, Ohio (1952),Plate 67

Czolgosz, Leon, 88

Dagenhart, Roland, 100Dahlsrud, Alexander, 7–8D’Aprix, Roger, 280Dart & Kraft, 313Dart Corporation, 333–334Darwin, Charles, 33, 54–55Data General, 331Datsun, Plate 75David, Donald, 210–211Davis, Angela, 239Davis, Keith, 256, 261, 284Davis, Milton, 295Davos World Economic Forum (2008), 401Dayton, Kenneth, 247–248, 311Dayton Corporation, Plate 62Dayton Hudson Corporation, 246, 247–248, 311,

313, 345, 373, Plate 95–96Dart takeover battle, 333–334

DDT, 243, Plate 68de Beauvoir, Simone, 239De Leon, Daniel, 77de Tocqueville, Alexis, 4, 6, 61, 199, 227

on American culture and democracy, 46–47view of negroes, 47

debentures, 117Debs, Eugene V., 52, 77, 90Declaration of Independence, 32, 37–38Declaration of Sentiments, 48Deepwater Horizon. See BPDefense Department, 184, 187, 201Defense Industry Initiative on Business Ethics and

Conduct, 322defense industry practicesreform in the 1980s, 322

deficit spending, 183deflation, 72, 78, 161DeGeorge, Richard, 290Delano (California) grape strike (1965), 236Delaware incorporation laws, 44Dell, 391Deloitte, 391Deming, W. Edwards, 331democratic capitalism, 5Democratic Party, 88, 178, 189labor support for, 174–175

Denhart, Gun, 353Dennison, Henry, 140, 182Dennison Manufacturing, 182Denny, Charles, 34Department of Commerce, 182depression (economic), 121following the Panic of 1893, 88Great Depression of the 1930s, 104, 151,

152–191impact of World War II, 183–185impacts of the Great Depression on Europe, 154of 1893, 85of 1894, 121, 125of 1907, 125

deregulation of business (Reagan era), 315–316,323

desegregationof workplace, 235–236schools, 235, 237

Detroitinvestment from the automobile industry, 218

developing countriesinfant formula marketing, 318

developing economiesand corporate responsibility, 418–419

Dewey, John, 140Dichter, Ernest, 208–209Dickson, W. B., 142Digital Equipment Corporation, 296, 331disability benefits, 142disabled citizenscivil rights, 347

division of labor, 31, 185, 248divorcewomen’s rights, 48

Doan, Leland, 224doctrine of strict liability, 351Dodd, E. Merrick, 170–171

INDEX 521






Dodd-Frank Wall Street Reform and ConsumerProtection Act (2010), 379, 384, 386–387, 415,421, 423

Dodge v. Ford Motor Co., 145doing good while doing well, 297Dolan, Paul, 356“dollar-a-year men”, 129, 187Donaldson, Thomas, 290, 402–403Donham, Wallace, 133, 179, 210Donnelly, Ignatius, 88Dot-com boom and bust, 342Dot-com explosion, 343Douglas, Michael, Plate 94Douglas, Paul, 207, 220Dow Chemical Company, 28, 224, 232, 246, 255,

265, 357, 391poor reception in Ireland, 360

Dow Corning, 371Dow Jones Industrial Index, 265Dreiser, Theodore, 70Drucker, Peter, 21, 195, 211–212, 224, 264drug companies, 115drug regulation

Progressive Era, 96Dry Dock Savings, 83Duehring, Marylee, Plate 61Duke, James Buchanan, 71Dunfee, Thomas, 402–403DuPont, 111, 122, 132, 178, 227, 265, 286, 287, 335,

345, 357, 361, 374advertising and sponsorship, 206–207artificial fibers, 182early anti-union position, 203improving environmental responsibility, 355–357origins in Delaware, 130

DuPont Magazine cover (June 1940), Plate 51dust storms in the 1930s, 152Dutch East India Company, 34Dynegy, 378

e-commerce, 338, 342expansion of, 412

e-mail technologies, 342–343Earth Day, 233, 243, 353, Plate 51East India Company. See British East India Company;

Dutch East India CompanyEastern Europe, 338Eastern Gas and Fuel Associates, Inc., 284Eastman, George, 81–82Eastman Kodak, 81, 189, 345Ebbers, Bernard, Plate 105Eccles, Marriner, 183ecomagination (General Electric), 398economic crises

in the 1970s and 1980s, 266–268economic dimension of corporate responsibility, 8economic growth

post-WWII, 195–198requirements for, 38through industrialization, 36, 38

economic problems in the 1970s, 265

economic value chain, 8economic wealththrough industrialization, 52

economics of responsibility (Clark), 13, 15ecosystem, 354, 355, 356, 377, 397, 398, 400, 409,

418, 422EcoTrust, 295Eddie Bauer, 362Edison, Thomas, 4, 20, Plate 11EDS International, 361–362educationsupport from business, 218–219

education reform (1980s)support from business, 326–328

Eells, Richard, 217efficiencyand organization (early twentieth century), 125–126and social benefit, 144–146government–business cooperation (1920s),

146–150Henry Ford, 144–145improvements in the 1920s, 144

eight-hour work day, 76, 99, 101, 122introduction of, 144

Eighteenth Amendment to the Constitution, 129Eisenhower, Dwight D., 155, 221, 226, 237, 269Electric Bond and Share, 164electric cars, Plate 74electric companiesprotests about prices, 233

electric power industryrestructuring under the New Deal, 163–165

Eli Lilly, 203Elizabeth I, Queen of England, 34Elkins Act (1903), 94Ely, Richard, 81emancipation of women, 48Emancipation Proclamation (1862), 49employee benefits, 26, 84, 116, 122, 138, 143, 146,

167, 172, 185–187, 196, 209, 329, 348, 409as corporate social responsibility, 219–220employee pension plans, 13, 142, 144, 201, 203,

211, 219–220, 411employee representationin Rockefeller companies, 142

Employee Retirement Income Security Act (ERISA,1974), 220

employee stock-ownership plans, 121–122, 142, 144employee volunteer programs, 314, 327, 346, 361–362employer-based health insurance, 220employmentnew employment social contract, 409–411

Endicott Johnson, 81Enron, Plate 103abdication of professional responsibility, 388corporate culture, 382–383financial scandal, 14, 376, 378, 381–384lack of oversight, 383pension fund losses, 382“rank or yank” culture, 383Sherron Watkins, Plate 104

522 INDEX






use of Special Purpose Entities (SPEs), 382victims of the financial scandal, 382whistleblower, 386

Enterprise Zone Program, 310entrepreneurs, 66, 126, 373

entrepreneurship, 134, 135, 188, 209, 293, 330New Age values, 293–296

See also social entrepreneurshipenvironmental agenda, 412environmental dimension of corporate

responsibility, 7environmental disasters (1980s), 338–340environmental externalities

socially responsible business practices, 282–283environmental health and safety management, 10environmental impacts

of business and industry, 105–107response of businesses, 107–109triple-bottom-line measurement, 390–392

environmental movement, 150, 233, 242–245, 250,271, 397–401

corporate resistance in the 1960s, 254–255legal issues, 244–245limited responsibility thesis, 255

environmental protection, 234developments in the 1990s, 353–354increasing public support for, 243–244

Environmental Protection Agency (EPA, 1970), 233,234, 244–245, 262, 274, 276, 282, 286, 287, 315,355, 390, 415

environmental responsibility, 23at DuPont, 355–356at Fetzer Vineyards, 356initiatives, 337–338

environmental sustainability, 397–401cap-and-trade methods, 399carbon offsets, 399standards, 400–401zero emissions and waste, 399–400

Epstein, Edwin, 12equal employment opportunities, 220–223Equal Employment Opportunity Act (1972), 238Equal Employment Opportunity Commission

(EEOC), 234, 237, 238, 262Equal Pay Act (1963), 251Equitable Insurance Company. See The Equitable Life

Assurance Society of the United StatesErie Canal, 51ethical drug companies, 115ethical issues

defense industry, 322ethics

and corporate responsibility, 18–20, 321–323, 378See also business ethics; professional ethics.

Ethics and Compliance Officer Association(ECOA), 371

Ethics Officers Association, 371evolution

theory of, 54–55evolutionary biology, 54executive compensation, 357

and business legitimacy, 407–408and shareholder returns, 407CEO retirement payouts, 407debate, 54post-WWII, 200

Executive Order 11246, 237Exelon, 399exemplar firmscorporate responsibility initiatives, 373–374mainstream adopters, 373–374social entrepreneurship firms, 373social intrapreneurship firms, 373

Export Council, 274externalitiesof business, 216of corporate activities, 11of industrialization, 105–107response of businesses, 107–109

Exxon, 357, 374Exxon Mobil, 391Exxon Valdez oil spill (1989)Prince William Sound, 340, 357, 363, 366, 400

F. W. Woolworth, Plate 64Facebook, 9, 411Fair Employment Practices Commission, 187Fair Labor Association, 362Fair Labor Standards Act (1938), 175Fairless, Benjamin, 215faith-based organizations, 372–373Fall, Albert, 131false capital, 75Family and Medical Leave Act, 348Fannie Mae, 379Farm Aid concerts, 323farm foreclosures in the 1930s, 152farm mortgage recalls, 166farm workers’ rights, 236farmersdrop in prices in the 1930s, 162New Deal agricultural policies, 162

fascism, 186, 215, 227and American businessmen, 159

Fascist party in Italy, 154Fastow, Andy, 382, 383FBI (Federal Bureau of Investigation), 386, Plate 105federal and states’ rights struggle, 33, 44–45, 49federal banking systemdevelopment of, 44–45

Federal Communications Commission, 163Federal Communications Commission v. AT&T Inc., 404Federal Corrupt Practices Act (FCPA, 1977), 271Federal Deposit Insurance Corporation (FDIC), 167,

319–320Federal government, 33regulation of business, 100–101

Federal Organizational Sentencing Guidelines(FOSG), 379, 383

Federal Reserve, 167, 319, 384Federal Reserve Bank, 267Federal Reserve Board, 183

INDEX 523






Federal Reserve System, 33, 45, 68, 104, 120establishment of, 45

Federal Sentencing Guidelines, 322, 386Federal Trade Commission, 119–120, 161, 207,

241, 350Federated Department Stores, 150Fel-Pro, Inc., 349–350Feminine Mystique (Friedan), The, 239, Plate 78feminism, 48

in the 1920s, 131in the 1960s, 238–240See also women.

Ferris, Richard J., 321Fetzer Vineyards, 356fiduciary duty

of corporate managers, 118of professionals, 388

Fifteenth Amendment to the Constitution, 49,54, 61

Filene, Edward, 114, 135, 136, 140, 146, 149, 150,Plate 39

Filene, Lincoln, 150Filer Commission, 310, 314Filer, John H., 314finance capitalism in the 1980s, 332Finance Reform Bill (2010), 384financial capitalism, 334financial crisis of 2008, 2, 24, 54, 319, 376, 379, 422,

Plate 107regulatory changes following, 383–384

financial industryProgressive Era reforms, 103–104regulatory changes after the 2008 financial crisis,

383–384financial institutions

lack of oversight and auditing (1910s), 104financial system, 33

debate over centralization, 68–69power of new financial instruments, 117

Financial Times, 387financial transparency

creation of the SEC, 167–168firm-centered approach to social responsibility,

211–212First Amendment to the Constitution, 404First Bank of the United States, 45First Continental Congress, 36First National Bank of Boston v. Bellotti, 43Fisher body plant factory strike (1937), Plate 48fishing industry

problem of stock depletion, 109Fitzgerald, F. Scott, 126five forces model (Porter), 331Five Percent Clubs, 247, 311Fletcher, James, 295Florida

NASA investment in, 224Follett, Mary Parker, 140, 141Food and Drug Act (1906), 95Food and Drug Administration (FDA), 95–96, 115,

240

food and drug regulationProgressive Era, 95–96

food stamps, 232Ford Foundation, 219, 314Ford, Gerald, 269, 270, 274Ford, Henry, 64, 111, 144–145, 159, 218, 255, Plate 37Dodge v. Ford Motor Co., 145five-dollar day, 145justification for social philanthropy, 145response to strikes, 174Sociological Department, 145

Ford, Henry, II, 224Ford Motor Company, 142, 144–145, 149, 181, 184,

226, 253, 364, 367assembly-line operations, 144–145mass production, 144–145Model T, 111, 144–145resistance to higher safety standards, 275–276

Ford Pinto case, 275–276, Plate 77Foreign Corrupt Practices Act (1977), 281, 364Foreign Trade Zones, 310Fortune 500 companies, 197, 346, 366, 410Fortune Magazine, 200Fourteenth Amendment to the Constitution, 42–43,

49, 50, 54, 61France, 197, 198Francis, Clarence, 196Frank, Colonel Robert, 138Franklin, Benjamin, 37Fraser, Douglas, 372Freddie Mac, 379Frederick, William C., 257, 285, 289, 291, 334free enterprise, 31, 33, 34, 35, 36, 38, 39–40, 415Marx’s criticisms, 52–54view of Weber, 58–59

free-enterprise market economy, 414free market, 32, 36, 147Smith’s view on wealth creation, 39–40

free trade, 38freedombalanced with responsibility, 119–120

Freedom of Information Act, 404freedom rides, 231, 236Freeman, R. Edward, 333, 334Frick, Henry Clay, 73, 87Friedan, Betty, 239, Plate 78Friedman, Milton, 87, 225, 369, 404, Plate 81shareholder value creation, 332social responsibility of business, 8–9, 261, 321

Friedman, Thomas, 338–339, 380Full Employment Act (1946), 201, 205Full Employment Bill (1946), 190Fuller, Buckminster, 16Future Shock (Toffler), 268

G.I. Bill (1944), 187Galbraith, John Kenneth, 2, 195, 202–203, 207, 209,

211, 265–266“New Industrial State”, 265, 294

Galleon Group insider trading, 379Galveston

524 INDEX






business model for city government, 101–102impact of the 1901 hurricane, 101–102

Gap, 362, 396, Plate 98Garfield, Sydney, 185Gary, Elbert, 138gas shortages (1973), Plate 73Gates, Bill, 19, 68, 293, 342, 422, Plate 93, Plate 118

creative capitalism, 401Gates, Melinda, Plate 118Gay, Edwin, 135GE Capital, 274, 408Gehry, Frank, 16gender discrimination, 240, 251, 348

See also sex discrimination.General Electric (GE), 4, 20, 116, 128, 135, 137–138,

139, 149, 160, 163–164, 181, 182, 196, 206, 217,221, 227, 265, 269, 273, 305, 321, 322, 335, 371,374, 403–404, 408, 411, Plate 47

adaptation and engagement (1970s), 273–274Business Environment Studies unit, 271–273ecomagination, 398General Electric Citizenship Report, 403promotional photograph (1950s), Plate 60

General Electric Foundation, 289General Foods, 189, 196General Mills, 181General Mills Foundation, Plate 83General Motors (GM), 126, 137, 149, 181, 182, 184,

189, 204, 211, 228, 241, 265, 273, 282, 284, 335,358, 367, 374, 391

adverse company news, 246bailout conditions in 2009, 276dealings with Ralph Nader, 240–241, 242Lordstown workplace protests, 270resistance to higher safety standards, 275–277strike (1936-7), 173–174

George, Henry, 84, 101Georgia

investment in, 224Georgia-Pacific, 265Germany, 9, 197

hyperinflation in the 1930s, 154reunification, 338right-wing movement in the 1930s, 154under Adolf Hitler, 159

Gerstaker, Carl, 255Gerstner, Louis, 314Giannini, A. P., Bank of Italy, 83Gifford, Kathie Lee, 362Gifford, Walter, 138, 139Gilbert, Cass, 16Gilbreth, Frank, 140Gilbreth, Lillian, 140Gilded Age, 79Gillette, King Camp, 84–85Gladden, Washington, 112Gladwell, Malcolm, 441glass ceiling for working women, 185, 348Glass-Steagall Act (1933), 167, 197global capitalism

support from President Clinton, 342

global climate change, 283global codes of conduct, 365global corporate citizenship, 281, 360, 364global corporate responsibilityissues in the 1990s, 359–365rise of global standards, 365–368

global debateeconomic and non-economic responsibilities of

corporations, 8–9Global Economic Ethic, 403Global Economic Forum, 402global economy, 22, 28, 38, 266, 273, 330, 336, 338,

387, 390, 418–419global philanthropy, 361–362global reach of American influence, 5, 341–342,

342–343Global Reporting Initiative (GRI), 366, 367, 391–392Global Sourcing Guidelines, 363global standards of corporate responsibility, 365–368Global Sullivan Principles, 367, 366See also Sullivan Principles.

global threats, 380global volunteerism, 361–362global warming, 354globalization, 323complex dilemmas, 380corporate responsibility issues, 337, 339during the 1990s, 338–340expectations of corporate behavior, 338–340prospects for corporate responsibility, 418rights issues, 47spread of American-style capitalism, 341–342

globalization eras (Friedman), 338–339gold standard, 78Goldman Sachs, 387Goldston, Eli, 284–285Goldwater, Barry, 225Gompers, Samuel, 129good company, Plate 106good corporation concept, 13, 15, 26, 334–336Good Housekeeping, 109Goodpaster, Kenneth, 290Google, 9, 411, Plate 114“Gospel of Wealth” (Carnegie), 86–88Gould, Jay, 70governmentincreasing economic role of, 200–202

government bailouts of organizations (2008onwards), 379

government–business relationshipunder Herbert Hoover, 150See also business–government relationship.

government interventionconsequences of the Great Depression, 152

government regulation, 3, 100–101benefits for business interests, 115–116benefits for society, 116

government sectorgrowth of, 200–202

Graham, Katherine, 372Grameen Bank, 392–393

INDEX 525






Grameen Industries, 392Grapes of Wrath (Steinbeck), The, 153Great Britain, 197Great Depression of the 1930s, 151, 152–191

capitalism in crisis, 155–156evolution of the New Deal, 156–157soup kitchen, Plate 44unemployment, 152–155

Great Migration, 129Great Recession (early twenty-first century), 2, 15Great Society, 2, 232“Greed is good.”

Gordon Gekko, 332society of the 1980s, 336view of capitalism, 59

“Greed is healthy.”Ivan Boesky, 332

Green, Hardy, 51–52green agenda, 412Greenfield, Jerry, 373Greenpeace, 363, 399Greer, Germaine, 239group insurance, 142Grove, Andrew, 293Grzywinski, Ronald, 295, Plate 85Gulf Oil, 280Gulf War I, 341gun control, 342Gupta, Rajat, 388

H. J. Heinz, 361Haas Family (Levi Strauss & Co.), 372Habitat for Humanity Women Build event (2011),

Plate 102Halberstam, David, 265Halliburton, 401Hamilton, Alexander, 91Hamilton, Alice, 142–143Hamilton, Andrew, 45Hammer v. Dagenhart, 100Hands Across America fundraising event, 323, 324Hanna Andersson, 353Hansen, Alvin, 183Harding, Warren G., 131Harper, John, 335Harriman, Averill, 226Harriman, E. H., 66, 226Harris, Jarad, 407Harrison, George, 323Harvard Business School, 10, 20, 110, 133, 134, 135,

169, 179, 208, 210, 288, 331, 389Hawken, Paul, 355, 397, 399Hayek, Friedrich, 225Heald, Morrell, 258health and safety regulation, 122health benefits, 142health care benefits, 411health care bill (Obama), 379health care insurance, 411health care reform, 342health maintenance organizations (HMOs), 185

Heidrick & Struggles, 357Heinz, Henry J., 81–82Henderson, Charles, 112–113Hepburn Act (1906), 94Heritage Foundation, 330Hewlett, William, 4Hewlett-Packard, 4, 269, 296, 298Heyrick, Elizabeth, Plate 6hierarchy of needs (Maslow), 208–209high-tech entrepreneurial subculture (1970s),

296–297Highland Park plant (Ford), 111, 144Hill, Mary Dayton, 139Hillman, Sidney, 136, 186Hispanic Americans, 346, 348farm workers’ rights, 236population, 340

Hitler, Adolf, 159HIV/AIDS, 24, 365, 380, 401Hoffman, Michael, 290Hoffman, Paul, 189, 191holding companies, 164–165Holiday, Harry, 311Holliday, Chad, 355–356Hollywood, 177, 181Homestead Act (1862), 50–51, 105Homestead Riot (drawing), Plate 6Homestead Steel plant, 97Homestead Strike (1892), 73, 87, 121Honeywell, 313, 371, Plate 87Hooker Chemical, 246, 286Hoover, Herbert, 131, 132, 137actions against the Bonus Army marchers, 152–155and standardization, 147–148business–government cooperation, 146–150

Hoovervilles, 152–155Houghton, Mary, 295, Plate 85Howe, Elias, 41Hubbard, Elbert, 16, 80Hughes, Charles Evans, 103Hull, Henry, 114Hull House, Chicago, 113–114, 139, 142, Plate 28Human Drift (Gillette), The, 84human relationsapproach to labor management, 139–140

human resource managementroles related to corporate responsibility, 10

Human Resources Network, 312human rights, 23–24, 32, 33, 36, 395–397as negative rights, 55–57basis for American capitalism, 35–38evolution of, 32ideas of John Locke, 35–36in the history of corporate responsibility, 60–61outsourcing of labor, 395–397protection of workers’ rights, 395–397

Hunt-Wesson Foods, 253Husk Power Systems, 392, 394Hussein, Saddam, 378Hutchinson, Peter C., 313hyperinflation in Germany (1930s), 154

526 INDEX






hypernorms, 402Hyundai, 400

IBM, 20–21, 181, 203, 227, 246, 296, 331, 361, 367,374, 391

advertisement (1980), Plate 92Fund for Community Service, 249recruiting advertisement (1969), Plate 65

Ickes, Harold, 157, 183idealism in pre-Civil War America, 59–60illegal immigration problem, 378Immelt, Jeffrey, 20Immigrant Savings Bank, 83immigration, 72–73

growing urban populations, 93–94population increase in the 1990s, 340–341

In Search of Excellence (Peters and Waterman), 330–331income disparity, 8incorporation requirements, 42–44Independent Directors Executive Compensation

Project, 407–408India, 9, 34, 35, 338, 418–419Indian Citizenship Act (1924), 51individual freedom

rights and responsibilities, 4–5individual rights, 45–47, 415individualism, 32, 45–47

celebration of, 4Herbert Hoover’s view, 147–148

Industrial Commission, 94, 123industrial democracy, 124–125industrial peace

dividend for business, 204–205Industrial Relations Research Association (IRRA), 236Industrial Revolution, 2, 34, 38

impact on the textile industry, 40–42industrial unions, 77

activities in the 1930s, 172–175industrialization, 31, 32, 38–39

and economic growth, 36, 38and economic wealth, 52environmental externalities, 105–107

Industry and Humanity (King), 142infant formula marketing

international code, 318inflation

impacts in the 1970s, 266–267influenza epidemic (during WWI), 123information overload, 411information technology

implications for corporate responsibility, 419–420Ingersoll, Robert, 280innovation

and “doing good”, 4and New Age values, 293–296source of competitive advantage, 202

inside contracting system, 77insider information, 168insider trading, 118, 167, 388

Galleon Group, 379on Wall Street, 332, 350

Institute for Government Research, 127institutional advertising, 180, 206institutionalization of corporate responsibility,

313, 337–338domestic corporate responsibility, 343–344

insurance industry, 79expansion to the working class, 116–117group plans for large employers, 116reform in the Progressive Era, 102–103

Integrated Social Contract theory, 402–403integrity-based programs, 384Intel, 293, 296interested versus disinterested approaches to

responsibility, 416Interface, Inc., 355, 400, Plate 117Interfaith Center on Corporate Responsibility

(ICCR), 281, 372–373intergenerational equity, 8Interior Department, 109International Association for Business and Society

(IABS), 370international businesscampaign for responsible capitalism, 318

International Chemical Workers Union, 173international corporate behaviorbribery and corruption, 280–281

International Harvester, 82, 122, 142, 182, 221, 367,Plate 38, Plate 53, Plate 66

International Ladies Garment Workers, 186International Organization for Standardization

(ISO), 376, 400environmental impact standards, 400social responsibility standards, 400, 403

International Paper Co., 357International Workers of the World (IWW),

77, 123Internet, 28, 338, 387, 388, 413, 419commercialization in the 1990s, 342communication technologies, 342–343, 411–412high-tech revolution, 417information technology, 419–420opportunities and challenges, 411–412

Interstate Commerce Commission, 78, 94, 108, 115intrapreneurs, 373investment banking, 332 See also bankinginvestment trusts, 166–167investorsstock ownership in the 1920s, 132

Iran hostage crisis, 304Iraq, 376, 378Iron and Steel Institute, 274Iron Law of Responsibility, 283–284Isdell, E. Neville, 22ISO 14001, 364, 400ISO 26000, 400, 403, 413issue advocacy advertising by corporations,

274–275Issues Management Association, 321ItalyFascist party, 154

ITT, 271

INDEX 527






Jackson, Andrew, 45Jackson, Jesse, 292, Plate 89Jackson, Michael, 323Jacoby, Neil, 289Japan, 9, 197

trade relations in the 1970s, 280Jefferson, Thomas, 35, 37–38, 45, 49, 50, 52Jensen, Michael, 331–332Jewish business people, 59Jewish leaders

social activism, 113–114Jewish workers, 87Jews

and the Ku Klux Klan, 131Jim Crow laws, 235Jobs, Steve, 342John Birch Society, 225John Paul II, Pope

encyclical Centesimus Annus (1991), 339Johns Manville, 225, 246Johnson, George, 81–82, 140Johnson, Harold, 259Johnson, Lyndon B., 225, 232, 237Johnson, S. C., 82Johnson, Tom, 101Johnson & Johnson, 265, 345, 372, 387–388, 407

handling of the Tylenol case, 317Johnston, Eric, 190, 191joint-stock company, 32, 33, 34–35, 40, 42Jones, Reginald H., 273–274, 305–306, 321, 335Jones, Samuel “Golden Rule”, 101Jorling, Thomas, 287JPMorgan Chase & Co., 379Jungle (Sinclair), The, 96junk bond trading, 332

Kaiser, Henry J., 184–185, Plate 55Kaiser Aluminum, 184Kaiser Permanente, 185Kanter, Rosabeth Moss, 20, 21, 411Karnani, Aneel, 8–9Kearns, David T., 327Keating, Charles H., 320, 343Keating-Owing Child Labor Act (1916), 100Kefauver, Estes, 207Kelley, Florence, 98–99, 100, 112, Plate 29Kellogg, John Harvey, 80Kellogg’s Cornflakes, 80Kennedy, John F., 224, 231–232, 237, 240, 253Kennedy, Joseph P., 168Kennedy, Robert F., 232Keynes, John Maynard, 154, 158Keynesian economics, 188–191, 201, 205

macroeconomics, 183–185Khrushchev, Nikita, 206Khurana, Rakesh, 389King, Martin Luther, Jr., 235, 292

assassination in 1968, 232, 236“I Have a Dream” speech, 236

King, Rodney, 346King, William Lyon Mackenzie, 142

Kitchen Debate, 206, Plate 61Knight, Phil, 293Knights of Labor, 74, 76, 77knowledgeand progress, 5

Kodak, 116, 141, 143, 144, 203Kraft Foods, 371Kramer, Mark, 8Ku Klux Klan in the 1920s, 131Kyoto Protocol, 354

L. L. Bean, 362La Follette, Robert, 175laboractivism in the 1930s, 172–176barometer of social responsibility, 121–123organization in the 1930s, 172–175power of, 203–204productive value of, 35, 36, 38–39, 52social reform challenges, 121–123support for the Democratic Party, 174–175

labor abusesglobal issues, 362–363

labor alienation, 33labor–capital interdependence, 142labor conflictindustrial democracy, 124–125Ludlow Massacre, 122–123revolution in early twentieth century, 123unrest in the 1920s, 124See also strikes.

Labor Day Parade, Plate 14labor managementhumanistic relations approach, 139–140

labor parties, 76labor relationsAmerican Plan, 140–141

labor revolutionearly twentieth century, 123

labor theory of value, 61, 75–76labor turnovercost to companies, 140, 143

labor unions. See unionslaissez-faire approach to business, 182laissez-faire economics, 90, 115, 124, 190Lamarck, Jean-Baptiste, 55Lamont, Thomas, 132Lanier, 331Larkin Company of Buffalo, 16, 80Latino farm workers’ rights, 236Lavelle, Rita, 315Lawrence, Massachusetts, 123Lawson, Thomas, 79, 103layoffs of American workers, 155, 397lead-based paint, 142lead in gasoline, 143leadershipand corporate responsibility, 20–22professional responsibilities, 388–389reputation and transparency, 387–388

leadership cultures, 296–297

528 INDEX






Leadership in Energy and Environmental Design(LEED) standards, 400

Lear, Norman, 371Leeds, Morris, 182Leeds and Northrup, 182left-wing concerns about business power, 225legal status of corporations, 2, 11

future debates and developments, 420–422Legge, Alexander, 182legislative democracy, 35, 36legitimacy. See business legitimacy; corporate

legitimacy; social legitimacyLehman, Elliot, 350Lehman Brothers, 319, 379Lenin, Vladimir, 137Leo XIII, Pope, 176

encyclical on workers’ rights and conditions, 112encyclical Rerum Novarum (1891), 112, 339

Levi Strauss & Co., 313, 362, 363, 371, 372, 402,Plate 97

Levitt, Theodore, 208, 223, 252, 256Levitt, William J., 19Levittown, 19, 206Lewis, Meriwether, 50Lewis, Sinclair, 126, 149Lewis and Clark Expedition, 50liberal economic agenda, 189liberalism

in the sixties, 232post-WWII, 200–202, 209–210

libertarianism, 56Liberty League, 178Liberty Ships, 184life insurance industry reform, 102–103life insurance societies, 142lifespan of corporations, 11, 34limited liability, 11, 34, 68limited responsibility thesis, 255Limits of Corporate Responsibilty (Chamberlain), The,

255Lincoln, Abraham, 48, 49, 50, 75Lincoln Savings and Loan scandal, 320, 343Lindbergh, Charles, 159Ling, Joseph, 283Linowitz, Sol, 372Lipartito, Kenneth J., i, xi, xvii, xxiLippmann, Walter, 196liquidation

economic policy in hard times, 153–154Liveris, Andrew N., 28Livingston, Robert R., 37Liz Claiborne, 362Lloyd, Henry Demarest, 71, 79local community engagement, 218Lochner v. New York, 99Locke, John, 4, 39, 51, Plate 7

basic human rights, 35–36, 55, 380right to own property, 50social contract, 406value of labor, 52

Lockheed, 246, 280

Lockheed Hudson Bomber Aircraft (1941), Plate 52London bombings (post-9/11), 378London Stock Exchange, 104Long, Huey, 156, 158, 171Looking Backward (Bellamy), 84Lordstown, Ohioworkplace protests, 270

Los Angeles race riots, 236Louisiana Purchase, 50Love Canal toxic waste pollution, 18, 246, 287Lowell, Francis Cabot, 41Lowell, Massachusetts (company town), 41, 81, Plate 2Lucent Technologies, 372Ludlow Massacre, 122–123, 124, 126, 142, 406Ludlow strike (drawing), Plate 34

MacArthur, Douglas, 155Madoff, Bernard, 379Madrid bombings (post-9/11), 378mainstream adoptersexemplar firms, 373–374

male slavesConstitutional rights granted, 49right to vote granted, 49

Malone, Michael, 298managementcorporate responsibility decision-making, 10hierarchies, 111managers as trustees, 196market-driven, 208–209of corporate responsibility (1970s), 264–440of social issues, 277–280professionalism, 388–389rise of professionalism, 109–111separation from ownership, 40, 213, 385

management committee for social issues, 278management educationinclusion of corporate responsibility, 10

management theoryhuman relations approach, 139–140scientific management, 140, 144

Mandela, Nelson, 318Manhattan Bridge, Plate 10manufacturingdecline in America (1930s), 153decline in America (1970s and 1980s), 266–268,

298decline in America (twenty-first century), 14growth in America (1880 to 1920), 63–65

market capitalismbusiness critiques, 84–85

market competitionantitrust issues, 94–95

market mentality in the 1980sconflict with social mentality, 320–321

marketing, 207cause-related marketing, 303concept of, 208, 253hierarchy of needs (Maslow), 208–209view of Theodore Levitt, 208views of Ernest Dichter, 208–209

INDEX 529






marketing organizations, 207markets

need for government regulation, 90–91Marshall Plan, 189, 197Marx, Karl, 33, 38, 42, 59, 123, 200, 406, Plate 16

alienation of labor, 52–54view of capitalism, 53–54

Marxism, 58Marxist view of capitalism, 8Maslow, Abraham, 209mass consumption

automobiles, 144–145mass media

conservative approach in the 1930s, 177mass production, 32

Ford Motor Company, 144–145Massey Energy

Upper Big Branch Mine explosion (2010), Plate 112Mattel, 365MBA Oath, 389McAdam, Terry, 279–280McCardell, Archie, 249–250McDonald, Bob, 19–20McDonald’s, 345McDonough, William, 399McGuire, Joseph W., 257McKennell, Henry, 407McKersie, Robert, 236McKinley, William, 88, 94McKinsey & Company, 279McNamara, Robert, 226Means, Gardiner, 169meat processing plants, 106meatpacking industry, 71, 115–116, 240media

promoting middle-class values, 177Medicaid, 232medical plans, 142Medicare, 232Medtronic, 365mega-corporation, 266, 332Mellon, Andrew, 153, 154Merck, 265, 345, 361

partnership with INBio (Costa Rica), 364mergers and acquisitions, 95, 313, 323

early twentieth century mergers, 125in the 1890s and early 1900s, 149

meritocracy, 55, 57Merrill Lynch, 379methyl isocyanide, 316Metropolitan Life Insurance Company, 116Mexico, 340micro-lending, 376Microsoft, 293, 296, 342, 373, 411, Plate 93Mid-Course Correction (Anderson), 355middle class

effects of the Great Depression, 172effects of the New Deal, 176–178lifestyle, 136rise of, 176–178values, 177

migrant workers, 233military–industrial complex, 201, 226, 269, 417Milken, Michael, 332mill workers, Massachusetts, Plate 3Miller, J. Irwin, 250–251, 372, Plate 82Milliken, Roger, 225Mills, C. Wright, 225–226minimum wage law, 175miningcompany towns, 52

Minnesota Principles, 366mission statements, 365Missouri-Pacific Railroad, 70Mobil Oil, 273, 367issue advocacy advertising, 274–275

Model T Ford, 111, 144–145Modern Millwheel (Duehring), The, Plate 61modernizationas business responsibility, 215–216

monetary system, 11, 44–45, 78, 183, 190, 267, 307single currency, 44–45role of capital in free markets, 53–54

See also gold standardmonopolies, 34, 37, 39, 68, 94–95, 137, 147,

164, 406, Plates 12, 13Monsanto, 357, 364Montgomery bus boycott, 235Montgomery Ward, 116, 191Montreal Protocol, 283moral and spiritual progress, 5moral aspect of corporate responsibility, 214–215moral hazard in banking, 319Morgan, J. P., 104, 121, 167Morris, William, 80Morrow, J. J., 220, 221Mott, Lucretia, 48movie studiosantitrust cases, 227

Muir, John, 106muckraking 71, 72, 79, 168multi-constituency model, 264, 331multinational enterprises (MNEs), 218corporate responsibility issues, 337emergence of, 198legitimacy of, 339–340power and responsibility, 403

Murphy, Thomas, 335Murray, Phillip, 175–176Muskie, Edmund, 318Mussolini, Benito, 154, 159mutual aid plans, 142mutual funds, 199mutualized life insurance companies, 102–103

Nader, Ralph, 240–242, 275, 350, Plate 76“Project GM”, 242Unsafe at Any Speed, 240–241

napalm, 232, 246NASA, 224NASDAQ, 384, 385National Alliance of Business, 308, 314

530 INDEX






National Association of Manufacturers, 116, 127, 141,148, 155, 172, 179, 181, 189, 205, 219, 221

National Biscuit, 122National Bureau of Standards, 130National Child Labor Committee, Plate 30National Civic Federation, 127National Commission on Excellence in Education,

327National Consumers League, 98, 175, 240National Council of Churches, 212, 215, 281national defense

enduring role of business in, 187National Environmental Policy Act (1969), 244National Environmental Policy Act (1970), 234National Farm Workers Association, 236National Highway Traffic Safety Administration

(NHTSA), 276National Industrial Conference, 125National Industrial Conference Board, 128National Industrial Recovery Act (1933), 160National Institute of Biodiversity (INBio), Costa

Rica, 364National Labor Relations Board, 175, 219National Organization for Women (NOW), 233, 239national parks, 106, 157National Partnership for Women and Families

(NPWF), 348National Recovery Act cartoon, Plate 45National Recovery Administration, 159–161, 188National Science Foundation, 201National Securities Exchange Commission, Plate 46National Urban League, 222Native Americans, 47

Indian Citizenship Act (1924), 51property rights, 50, 51rights, 49, 50

natural disastersearthquake in Haiti (2010), 21Galveston hurricane of 1901, 102Hurricane Katrina, New Orleans US (2005), 21response of businesses, 21tsunami and earthquakes in Japan (2011), 21tsunami in Indonesia (2004), 21

natural resourcesdepletion of, 213exploitation of, 105–107management, 106–107

Nazism, 215, 227NCR (National Cash Register), 82, 331, 371Nelson, Donald, 187neo-Darwinism, 56Nestle

boycott, 318, 340infant formula controversy, 246infant formula marketing in developing

countries, 318Nestle American Home Products, 318New Age values

and innovation, 293–296socially innovative enterprise, 297

New Deal, 2, 406

agricultural policies, 162and African Americans, 178and Keynesian macroeconomics, 183–185and the aged and unemployed, 171–172and the “forgotten men”, 171–172and the working class, 171–176antitrust, 159–165business response to, 178–182electric power industry restructuring, 163–165evolution of, 156–157ideologies, 159limitations, 182oil industry overproduction, 162–163political support for, 177–178price-setting approach, 159–161raising the voice of the consumer, 161–162reform of capital markets, 165–168restructuring the corporate economy, 157–158reworking of corporate governance, 168–171rise of the middle class, 176–178telephone and telegraph interventions, 163

New Employment Social Contract, 409–411New England Association of Farmers, Mechanics and

Other Workingmen, 48New Freedom (Woodrow Wilson 1912 presidential

campaign platform), 119–120New Harmony, 19New Jersey Bell, 180New Nationalism, 91–92, 95, 119New OrleansSlaughterhouse Cases (1873), 106

New Republic magazine, The, 91New Social Contract, 13, 25–26, 297, 328, 376,

380, 397environmentally responsible business practices,

282–283evolution of, 380–381measuring social performance of corporations,

284–285New York City Partnership, 309New York Stock Exchange, 103, 104, 384, 385Richard Whitney scandal, 167

New York Times, 286, 408NGOs (nongovernmental organizations), 127, 281,

283, 366, 406, 409, 412, 415, 418, 419Nietzsche, Friedrich W., 6Nigeria, 395Nike, 293, 362, 363, 371, 396–397, Plate 98Nineteenth Amendment to the Constitution, 131Nisbet, Robert, 5–6Nixon, Richard M., 233, 244, 274black capitalism, 292influence on perceptions of business legitimacy,

270–271investigations into administration’s activities,

270–271Kitchen Debate with Khrushchev, 206social change during presidency, 233–234, 269televised presidential debate, 231wage and price controls, 267Watergate affair, 27, 270, 445

INDEX 531






no-par-value stock, 117non-profit organizations, 8, 370–373

See also NGOs (nongovernmental organizations).non-voting shares, 117, 169non-unionized

firms, 83–84, 222workers, 140–141, 150

Norris, Frank, 79Norris, William C., 248–249, 312, Plate 86North American Free Trade Agreement (NAFTA,

1994), 342, 354Northern Securities Company, 94, 95Northrop Grumman, 365Northwestern National Bank, 312Northwestern University Business School, 135Norton, Inc., 284Novak, Michael, 326Nowlan, Steven E., 312Noyes, John Humphrey, 59–60, 79–80Noyes, Pierpont, 79–80nuclear power plant

location of, 9

Obama, Barack, 379occupational disease

reforms in the 1920s, 142–143occupational exposure to toxic chemicals,

142–143occupational safety

improvements in the 1920s, 142–143Occupational Safety and Health Act (OSHA, 1970),

235, 245–246Occupational Safety and Health Administration

(OSHA, 1971), 233, 234, 245–246, 276Occupy Wall Street movement, 2oil industry, 67–68, 71

deregulation in the Reagan Era, 315–316New Deal interventions, 162–163

oil production quotas (1930s), 163oil refineries, 106oil spills

Gulf of Mexico, 2010 (Deepwater Horizon), 397,400–401, 403

Santa Barbara (1969) (Union Oil), 244Olds, Irving, 219Oldsmobile advertisement (1952), Plate 59oligarchy, 88oligopolies, 68, 149, 200, 227Oneida Community, 19, 59–60, 79–80OPEC

oil crises of 1973 and 1979, 266, 269oil pricing practices in the 1970s, 275

Operation Bootstrap (1968–1983), Plate 84Operation PUSH (People United to Serve

Humanity), 292operations research, 211Oracle, 296organization

and efficiency (early twentieth century), 125–126of business philanthropy, 126–127to defend capitalism, 127–128

Organisation for Economic Co-operation andDevelopment (OECD), 281, 365, 418

Origin of Species (Darwin), 54Otis Elevator, 367outsourcing of jobs, 377outsourcing of labor, 395–397ownershipseparation from management, 40, 169–170, 357

ozone depletion, 283

packagingenvironmentally friendly, 351

Packard Commission, 322Packard, David, 4, 269Packard, Vance, 207Paine, Lynn Sharp, 384Pakistanbombings in, 378child labor in, 363Reebok operating in, 363

Palazzo, Guido, 404–406Palmisano, Sam, 20–21Panic of 1893, 88Papal encyclicalsCentesimus Annus (John Paul II, 1991), 339Rerum Novarum (Leo XIII, 1891), 112, 339

Parks, Rosa, 235Parsons, Talcott, 333Partnering Against Corruption Initiative

(PACI), 402part-time jobs (1930s), 156Patagonia (company), 297, 362, 373, Plate 115patent medicines, 96, 115patents system, 149paternalism, 74, 81–82, 99, 110, 149, 173patriotism, 269, 341, 417and anti-German sentiment, 128

Patterson, John, 82, 151Patterson silk weavers strike (1913), 123Patton, George, 155PCBsdumping in the Hudson River (1960s), 9

peace and prosperitypost-WWII, 187

Peace Corps, 232Peat Marwick Mitchell and Co., 314Pecora, Ferdinand, 167Pei, I. M., 16Pelosi, Nancy, 12Penn Square Bank of Oklahoma, 319Pennsylvania Railroad, 108, 85Pension Benefit Guarantee Corporation, 411pension funds, 199pension plans, 142company control of, 144termination of, 411

People for the Ethical Treatment of Animals(PETA), 280

“people, the planet and profits”, 391Perkins, Charles, 84Perkins, Frances, 175, 245, Plate 47

532 INDEX






Perkins, George W., 121–122Persian Gulf War, 341personal computers

spread of, 342personal privacy issues, 9personnel departments, 111

appearance of, 140pesticides, 243Peters, Tom, 330–331Petit, Thomas, 257–258petroleum, 21, 63, 67, 175, 197, 274–275Pfizer, 265, 371, 407pharmaceutical companies, 24, 115philanthropy

Andrew Carnegie, 85–88view of Adam Smith, 40See also corporate philanthropy.

Philip Morris, 15phossy jaw, 97, 100Pierce-Arrow, Plate 41Pinchot, Gifford, 106Pingee, Hazen, 101Pitney Bowes, 199, 220, 314Pius XI, Pope, 176planning. See corporate planning; strategic planningpluralism, 217, 229

changing face of competition, 202–203in the 1950s, 195post-WWII liberalism, 200–202

Points of Light Foundation, 341, 345Points of Light Initiative, 309, 324Polaroid, 246political activities of business leaders (1910s), 101political activities of corporations, 404–406political campaigns

spending by corporations, 2political cartoons, Plate 12, Plate 27political economy in America, 66political forecasting

role in corporate planning, 271–273political influence

concerns about large-scale businesses, 12–15, 67economic power of large corporations, 11reach of large corporations, 5

political posters, Plate 56–57, Plate 58politicians

condemnation of corporate behavior, 12–15politics

and religion, 33“polluter pays” principle, 288pollution, 213, 401

cleanup legislation, 285–288environmental movement, 242–245impacts of industrialization, 105–107response of businesses, 107–109Superfund legislation, 285–288

Pollution Prevention Pays (3P) program (3M), 283,398, Plate 72

Ponzi, Charles, 103Ponzi schemes, 103, 166, 423

Bernard Madoff, 379

populationglobal growth, 401

population of Americaaging population (1990s), 340–341increase in the 1990s, 340–341

Populist Party, 78Populists, 88, 90Porter, Michael E., 8, 331positivism, 58Post, James, 290Post Office, 130post-war liberalismpluralism, 200–202

post-WWIIeconomic growth, 195–198new corporate order, 187new expectations of business, 195–198peace and prosperity, 187

post-WWII baby boomers, 340–341Poverty and Progress (George), 84, 101Powderly, Terence, 76powerand responsibility, 403and standards of behavior, 25distribution in the post-WWI economy, 203of labor, 203–204of large corporations, 11–12, 265–266

power–responsibility–rights equation, 417prescription drug industry, 207Presidential assassinationJohn F. Kennedy, 232McKinley (1901), 89

Presidential elections1896, 891940, 178Barack Obama, 379George W. Bush, 354Lyndon B. Johnson, 225Richard M. Nixon, 233Ronald Reagan, 285Theodore Roosevelt, 90William Jefferson Clinton, 341Woodrow Wilson’s 1912 New Freedom platform,

119–120Presidential Task Force on Private Sector Initiatives,

308, 309, 310–311President’s Volunteer Action Awards Program, 309price-setting approach in the New Deal, 159–161PricewaterhouseCoopers, 369principal–agent problem, 40, 169–170, 357privacy rights of corporations, 404private enterprise, 61, 65, 79, 109, 168, 189, 298, 338,

Plate 58Private Industry Councils (PICs), 314–315private insurance firms, 220private property, 31, 50–51, 58, 65, 74, 91,

105, 107, 132, 151, 183, 200, 209, 222,223, 224

private–public research center, 219private sector initiativesdisenchantment with, 315

INDEX 533






private sector initiatives (cont.)George H. W. Bush administration, 324Points of Light Initiative, 309, 324Reagan administration, 307–310, 310–311, 324

private sector voluntarismbusiness response to Reagan, 310–311Reagan’s call for, 307–310

probability-diffusion matrix, 272Procter & Gamble, 19–20, 122, 141, 146, 203, 358,

388, 401, 412Procter & Gamble Health Sciences Institute, 401Procter, William, 145–146producerism, 74–76, 77, 78, 87product liability

legal issues, 351product safety

consumer concerns in the 1990s, 351importance to consumers, 350

productivity, 41American agriculture after WW II, 162American economy during WW II, 183–185American factories, 64American manufacturing, 63and economic growth, 38and globalization, 341–342and large corporations, 62and professionalism, 124and strategic philanthropy, 344and technology, 41, 179, 202and the value of labor, 53benefits of, 204during the Clinton presidency, 341–342gains of industrial peace, 204–205in a slave economy, 39labor-dependent, 398post-WWII, 187right to payment for labor, 35rights to rewards, 176through people, 330view of Carnegie, 86wage increases related to, 204

professional ethics, 18–20professional organizations, 370–373professionalism

adoption of professional values in the 1920s, 132and social responsibility, 210–211criticism of managers, 13–14in business, 109–111in management, 179professional values and social values, 212–214professional values within corporations, 212–213responsibilities, 388–389virtues of, 132–135

profit-sharing plans, 144progress

and knowledge, 5role of the corporation, 6spiritual and moral, 5Western idea of, 5–6

Progressive Era, 12, 58, 90–123, 139antitrust issues, 94–95

business model for city government, 101–102business response to environmental impacts,

107–109child labor reform, 99–100complexities of social reform, 98–100curbing corporate power, 117–120environmental impacts of business, 105–107federal government regulation of business,

100–101financial industry reforms, 103–104food and drug regulation, 95–96government intervention in markets, 90–91insurance industry reform, 102–103labor as barometer of social responsibility, 121–123labor revolution, 123political activities of business leaders, 101Progressive agenda, 92–94promoting corporate accountability, 117–120protecting the public interest, 95–98public-spirited behavior, 109religion and corporate responsibility, 111–114rise of professionalism in business, 109–111social interest as self-interest, 114–117social sensibility, 109social welfare issues, 92–94sweatshop labor reform, 98–99taming the free market, 91–92worker safety and compensation, 96–98

Promise of American Life (Croly), The, 91property ownershipand capitalism, 50–52rights and abuses (nineteenth century), 50–52

property rights, 47and the value of labor, 52as basic rights, 36as God-given, 69Homestead Act (1862), 50–51Native Americans, 50, 51women’s rights of ownership, 48

prostitution, 93–94Protestant ministersSocial Gospel, 112

Protestant Puritanism. See PuritanismProtestant Reformation, 57Protestant work ethic, 33, 54, 57–59Protestants, 93Prudential, 116, 313public affairsinvolvement of business people, 101–102management by corporations, 277–280

Public Affairs Council (PAC, 1954), 268, 371Public Citizen organization, 242public debatecorporate engagement in, 16–17

public education, 100public healthoccupational exposure to toxic chemicals, 142–143responses to industrial pollution, 107–109

public interestprotecting, 95–98

public issue life cycle, 277

534 INDEX






public–private collaboration, 307–310, 310–311public relations, 138–139, 206public sector, 90, 182, 188, 191, 207, 309, 409, 415,

421, 423public service as good business, 81–83public service view of corporations, 137–138,

138–139public-spirited behavior, 109public square, 61, 264

and democratic capitalism, 5control by corporations, 115corporate engagement in debate, 16–17corporation in civic life, 15–16corporation in economic life, 11–12corporation in political life, 12–15corporation in social/cultural life, 15–16expansion of discussion in the 1980s, 329–330making the case for benefits from business, 3role in corporate responsibility, 415to global public sphere, 415–416, 418

Public Utilities Holding Company Act (1935),165, 169

Public Works Administration, 157public works under Franklin Roosevelt, 156–157Pujo, Arsene, 104Pullman, George M., 19, 80–81, 82, 85, Plate 25Pullman, Illinois (company town), 51–52, 80–81, 84,

85, Plate 24Pullman Company, 51–52Pullman strike, 52, 84, 85, Plate 26PUR water purifying powder (P&G), 401Puritanism, 33, 57–59, 224

Quincy, Josiah, Plate 5

racial discrimination, 210, 220, 293, Plate 64racial equality

in the workplace, 220–223tokenism, 222

racial tensions in the 1990s, 346racism, 211

and African-Americans, 186and Social Darwinism, 73fight for desegregation, 235–236in Germany (1930s), 154

radical environmental groups, 353radicalism

use of modernization to counter, 215–216radio

national advertising, 177views in the 1930s, 156

radium exposure in watch workers, 143railroad rebate system, 94railroads, 181

benefits of regulation, 115cartels, 71–72government regulation, 94injury lawsuits against, 114land acquisition tactics, 79management systems, 111switch to electricity, 107–108

unions, 77Rajaratnam, Raj, 379, 388Ramge, Patty, Plate 77Rand, Ayn, 178, 225“rank or yank” culture at Enron, 383Raskob, John J., 132, 178Raspberry, William, 308rational capitalism (Weber), 58–59Rauschenbusch, Walter, 113Rayburn, Sam, 165, 169Raytheon, 371RCA, 149, 182, 227Reagan, Ronald, 285, 303, 314, 318, 321, 327, 350, 353Reagan Erabusiness deregulation policy, 315–316business disenchantment with voluntarism, 315corporate social innovation, 311–315Council of Economic Advisors, 330defense spending, 322evolving corporate philosophy, 304–307private sector initiatives, 324“Reagan Revolution”, 304resurgence of voluntarism (mid-1980s), 323–324return to federal regulation, 319–320

Reconstruction era, 50Reconstruction Finance Corporation (RFC), 153, 154recycling, Plate 116Reebok, 362–363reformconservative backlash in the 1920s, 131impacts of World War I, 131

refrigerated products, 182regulation of corporationsregulatory agencies, 167, 267, 276, 288, 309changes after corporate scandals, 379future debates and developments, 420–422

Reich, Robert, 372reindustrialization of America (1980s), 328–329,

Plate 90religionand corporate responsibility, 111–114and politics, 33and social activism, 113–114faith-based business ethics organizations, 372–373Social Gospel, 112–113

religious organizationsviews on workers’ rights and conditions, 112–113

religious pietyas business reformer motivation, 115

religious valuesand business responsibility, 214–215

Republican Party, 85, 88, 91, 131, 147, 156, 178reputational damage, 280, 337, 387–388Rerum Novarum (Papal encyclical, 1891), 112, 339research and development (R&D)during the Great Depression, 182support from business, 218–219within corporations, 218

Research in Corporate Social Performance andPolicy, 291

research studies of corporate responsibility, 369–370

INDEX 535






responsibilities and rights, 4–5responsibility

balancing freedom with, 119–120responsible competitiveness, 17retirement benefits, 142retirement plans, 122Reuther, Walter, 175–176, 186, 204Reverend Jesse Jackson, 292, Plate 89Revolutionary War, 35, 36RICE principles (Respect, Integrity, Community,

Excellence), 382right to vote

granted to male slaves, 49right-wing critics of business liberalism, 223–225rights

and responsibilities, 4–5evolution in the nineteenth century, 47–52in the history of corporate responsibility, 60–61

river blindness treatment (Merck), 364Roaring Twenties

affluence and excess, 131backlash against reforms, 131consumerism boom, 132financial boom and collapse, 165–167investment scandals, 165–167widening access to stock ownership, 132

robber barons, 423Roche, James, 241Rockefeller, David, 226, 234, 282, 298–299Rockefeller, John D., 66, 101, 126, 142

impact of the Ludow Massacre, 123oil market manipulation, 79origins of the Standard Oil Company, 67–68power of giant enterprises, 71railroad cartels, 71–72view on wealth, 70

Rockefeller, John D., III, 447Rockefeller, John D., Jr., 124–125, 126–127, 143,

Plate 35Rockefeller Foundation, 126–127Rockwell, Norman, 185Roddick, Anita, 373Rohm & Haas, 286Roland, Robert, 287Roosevelt, Eleanor, 178Roosevelt, Franklin D., 152, 155, 406

brains trust of advisors, 169, 183evolution of the New Deal, 156–157first 100 days in office, 156–157See also New Deal.

Roosevelt, Theodore, 90, 95, 119, 120, 242, 406antitrust actions, 94–95becomes President, 89food and drug regulation, 95–96Interior Department, 109natural resources management, 106–107New Nationalism, 91–92Progressive agenda, 94progressivism, 91–92worker safety and compensation, 96–98

Roper, Daniel, 182

Rosenfeld, Henry, 116Rosie the Riveter, 185, Plate 54Rostow, Eugene, 223Rouse, James, 19, 372Rouse Company, 372Rowley, Coleen, 386Roycroft community, 80Ruckelshaus, William, 244Rural Electrification Agency, 164Russell Sage Foundation, 127Russia, 338, 418–419

(See also Soviet Union)five-year plans, 154, 182

Russian Revolution, 123Ryan, Father John, 112

S. C. Johnson Company, 16, 365SA 8000 standard, 362, 368Sage, Russell, 127Samuelson, Paul, 261Samuelson, Robert, 13, 336Santa Clara County v. Pacific Railroad Co., 43Santiso, Javier, 418–419Sarbanes-Oxley Act (2002), 379, 383, 385, 421, 423Saro-Wiwa, Ken, 395Savings and Loan scandal, 320, 343Savings and Loans, 104savings banks, 83Schacht, Herman, 372Schechter Brothers, 161Scherer, Andreas, 404–406Schlink, Frederick, 161Schmertz, Herb, 275Schmidt, Eric, 411, 412Schopenhauer, Arthur, 6Schumpeter, Joseph, 160Schwab, Charles, 141, 143scientific management, 111, 140, 144, 211Scott, Tom, 85Seaman’s Savings, 83Sears Roebuck and Co., 187, 189, 191, 206, 363, 374,

Plate 36Sears catalogue, 110Second Bank of the United States, 45Securities and Exchange Commission (SEC), 104,

167–168, 197, 199, 270, 379, 382, 383, 385segregation, 50, 178self-interest, 45–47and free enterprise, 39–40

self-regulation by business (1920s), 148–150Seligman, Daniel, 321Selznick, Philip, 343Senate Committee on Banking and Currency, 167Seneca Falls Convention (1848), 48September 11th attacks, 376, 386consequences for the US, 377–378

service ethic in business, 137–138service to the customercorporate focus in the 1920s, 135–137

Seventh Day Adventists, 80Seventh Generation, 297

536 INDEX






sewing machineinvention of, 41

sex discriminationcorporate responses in the 1960s, 251–252See also gender discrimination.

sexual harassment at work, 348Shaklee Corporation, 326Shapiro, Irving, 286, 287, 335shareholder activism

concerns in the 1990s, 356–359shareholder model, 303shareholder protests, Plate 87shareholder proxy campaigns, 281shareholder returns

and executive compensation, 407shareholders

as stakeholders, 10corporate accountability to, 169–170fiduciary duty of corporate managers, 118view of Peter Drucker, 212

sharesissuing and trading, 68

Sheldon, Charles, 113Shell Oil, 391, 395, 407

Brent Spar, 363–364Sherman, Roger, 37Sherman Antitrust Act (1890), 78, 79, 94–95shipbuilding, Plate 55shipyards

wartime productivity, 184Shirtwaist Strike (1909), Plate 31ShoreBank, 295–296, Plate 85Sierra Club, 106, 244silent majority, 233Silent Spring (Carson), 243, Plate 69Simon, Herbert, 18Sinclair, Upton, 96, 240sit-down strikes (1930s), 173–174sit-ins, 231, 235sixties

academic foundations of corporate responsibility,256–259

activism, 231, 233–234civil rights movement, 230, 235–238consumer movement, 240–242corporate responses to rising expectations,

246–255development of social consciousness, 230–231early optimism, 231–232environmental movement, 242–245Kennedy years, 231–232liberalism, 232new calls for social responsibility, 234–246thinking on corporate social responsiblity, 256tumultuous change, 231–234Vietnam War, 232–233women’s movement, 238–240worker safety and health, 245–246

skyscrapers, 16, 63Slaughterhouse Cases (1873), 106slavery, 32, 44, 75

Adam Smith’s criticism of, 39and the Constitution, 38anti-slavery movements, 48defense based on Christianity, 48–49economic argument for, 49Emancipation Proclamation (1862), 49ending of, 49view of de Tocqueville, 47violation of human rights (Locke), 35

Sloan, Alfred, 126, 137, 169, 182, 211, 219Smale, John, 358Smartest Guys in the Room (film), The, 383smartphones, 342–343, 411SMEs (small and medium-sized enterprises), 422Smiles, Samuel, 71Smith, Adam, 4, 31, 66, 200, 214, 385, 406, 410, 424,

Plate 1criticism of slavery, 39free market, 32, 39–40moral structure of the marketplace, 120requirements for economic growth, 32, 38–39self-interest and free enterprise, 39–40value of labor, 52–53view of benevolence, 40

Smith, Craig, 344–345Smith, John F., Jr., 358Smith, Roger, 282Smith, Timothy, 281–282, Plate 89Social Accountability International, 362social accounting, 216–217social activismand religion, 113–114

social changeinfluence on corporate planning, 271–273transformation in the 1970s, 268–269

social charterrewriting in the 1970s, 273–277

social consciousnessdevelopment in the 1960s, 230–231

social contract, 18, 406, 414between unions and large corporations, 270consequences of the Great Depression, 152expectations of the corporation, 25–26ideas of John Locke, 36impact of globalization, 409impacts of technological innovation, 411–412legacy of the 2000s, 412new employment social contract, 409–411relation to corporate responsibility, 25–26

social/cultural lifeinfluence of business, 16

Social Darwinism, 33, 54–57, 74, 83, 85, 86, 87, 90, 92and social responsibility, 70–74

social dimension of corporate responsibility, 7social dumping, 365social entrepreneurship, 368, 373, 376, 392–393, 412,

413, 422social entrepreneurship firms, 373social environment, 21, 26, 189, 235, 259, 271, 340social experimentation, 74Social Gospel, 112–113

INDEX 537






social impacts of businesstriple-bottom-line measurement, 390–392

social inequality, 8social insurance, 142social interest of business as self-interest, 114–117social intrapreneurship firms, 373social issues

corporate responses in the 1960s, 250–255management by corporations, 277–280

social issues department, 278social legitimacy

corporations’ need for, 1–3social mentality in the 1980s

conflict with market mentality, 320–321social movements

challenge to business legitimacy, 233–234civil rights movement, 235–238consumer movement, 240–242environmentalism, 242–245new calls for business responsibility, 234–246women’s movement, 238–240worker safety and health, 245–246

social performance of corporationscommunity relations in the 1990s, 344–346measuring, 284–285, 344philanthropy in the 1990s, 344–346

social purpose and profit, 83social reform

complexities in the early 20th century, 98–100social regulation

and civil rights, 237–238social regulations, 231social responsibility

adverse reports in the 1970s, 246and market-driven management, 208–209and workers’ conditions, 121–123business responses to rising expectations, 246business-led, 210–211corporate actions on civil rights, 250–251discrimination against women in the workplace,

251–252firm-centered approach, 211–212influence on consumer buying decisions, 351–353measuring and monitoring, 216–217progress in the 1990s, 374teaching in business schools, 259–260, 288–291thinking in the 1960s, 256

social responsibility officer, 277Social Security, 158, 159, 182, 342Social Security Act (1935), 171social security network, 219–220social values

and professional values, 212–214social welfare

Progressive agenda, 92–94role of corporations, 219–220

socialism, 74, 76, 90, 141, 189, 204in America, 159

Socialist Party, 77socialist unions, 77socially conscious capitalism, 293–296

socially innovative enterprise, 297Socially Responsible Investments (SRIs), 24, 376,

394, 412Society for Business Ethics (SBE), 290, 370socio-political forecastingrole in corporate planning, 271–273

solar energy, 399, Plate 114Sombart, Werner, 141Sony, 371South Africaapartheid system, 281–282, 318, 372withdrawal of American companies, 281–282, 318

South Korea, 9, 446Southern Pacific Railroad, 116Southern stateseconomic development, 47, 49, 51, 150, 162, 178,

224segregationist policies, 50

Southwest Airlines, 391Soviet Union, 53collapse of, 338

Special Purpose Entities (SPEs)use by Enron, 382

Spencer, Herbert, 33, 54, 55–57, 406, Plate 15spiritual and moral progress, 5Springsteen, Bruce, 323stagflation (stagnant growth and high inflation),

267, 270stakeholder dimension of corporate responsibility, 8stakeholder engagementShell Brent Spar protest, 364

stakeholder groups in the 1990s, 344stakeholder interestscorporate practices in the 1980s, 316–319

stakeholder management, 22stakeholder model, 303stakeholder theory, 7, 258, 369, 390stakeholder view, 8management challenges, 333–334

stakeholders, 264accountability to, 415–416approach of Peter Drucker, 212corporations’ responsibility to, 9interactions with managers, 10multiple stakeholders in modern firms, 137–139shareholders as, 10

Standard Oil Company, 67–68, 71, 95, 123, 139, 142,168, 182, 196, 278

standards for corporate activities, 413standards of livingimprovements in the 1920s, 141

Stanford University, 218, 298Stanton, Elizabeth Cady, 48Stanton, Frank, 372Starbucks, 297, 373, 391state and federal rights struggle, 33, 44–45, 49steel industry, 71, 73steel makingCarnegie, 85–88

Steelcase, 391Stegner, Wallace, 243

538 INDEX






Steinem, Gloria, 239Steiner, George, 260, 289Stempl, Robert, 358Stimson, Henry, 187stock exchange regulation, 103stock exchanges, 68stock market crash of 1929, 104, 153, 166, 167stock market regulation, 104stock ownership

widening access in the 1920s, 132strategic approach to corporate responsibility, 303strategic management

theory and practice, 369strategic philanthropy, 248, 326–328, 344–346strategic value of companies, 331strikes

farm workers, 236Homestead Strike, 73, 87, 121, Plate 21labor revolution in early twentieth century,

90–123Ludlow Massacre, 122–123participation of women, 173–174post-WWI period, 130Pullman strike, 52, 84, 85, Plate 26response of Henry Ford, 174sit-down strikes (1930s), 173–174

Strong, Josiah, 112structural-functional view, 333Studebaker, 189student activism, 231, 232, 233Students for a Democratic Society, 269subcultures of business leaders, 296–297subprime mortgage market collapse (2008), 379, 384,

386–387substantive due process, 106suffragette movement, 238Sullivan, Leon, 367, Plate 88Sullivan, Louis, 16Sullivan Principles, 281, 282, 367

See also Global Sullivan PrinciplesSumner, William Graham, 70Superfund, 315

debate and legislation, 285–288, 355super-industrial society, 268supermarkets, 182Supreme Court, 175

antitrust ruling (1904), 95Brown v. Board of Education, 235, 237Citizens United v. Federal Election Commission, 2Federal Communications Commission v. AT&T Inc.,

404First National Bank of Boston v. Bellotti, 43Hammer v. Dagenhart, 100labor reform in the 1930s, 175Lochner v. New York, 99on child labor (early twentieth century), 99–100on desegregation on buses (1956), 235on government regulation of free speech, 404on school desegregation (1954), 235on women’s working hours (1908), 99ruling on bakers’ working hours, 99

ruling on the National Recovery Administration(1935), 160

rulings on corporate personhood, 42–44Santa Clara County v. Pacific Railroad Co., 43Slaughterhouse Cases (1873), 106Trustees of Dartmouth College case, 43Warren Court (1960s), 232women Justices, 239

survival of the fittest, 55sustainability, 7, 23, 377concept (1990s), 337–338theory and research, 369

SustainAbility, 373sustainability movementissues for corporations, 354–356

Sustainability Reporting Guidelines, 367sustainable development, 283sweatshop labor, 49, 396–397, Plate 33, Plate 98action against, 362–363complexities of confronting, 98–99global issues, 362–363

Sweden, 9Swift & Company, 71Swift, Gustavus, 71Swope, Gerard, 139, 160, 182, Plate 47syndicalism, 74systems analysis, 211

Taft, William Howard, 95, 128Taft-Hartly Act (1947), 203takeover bids, 333–334Taliban, 378Tarbell, Ida, 71–72, 79Target school fundraising initiative, Plate 100task force for social responsibility issues, 277Task Force on Corporate Social Reporting, 284tax deductible corporate giving, 218taxationrates paid by corporations, 408

Taylor, Frederick Winslow, 58, 111, 140, 144, 406Taylor, Myron, 156Taylor Society, 140Tea Act (1773), 36Tea Party movement, 37Teachers Insurance and Annuity Corporation

(TIAA-CREF), 127teaching corporate responsibility, 259–260, 288–291Teagle, Walter, 182technological innovation, 111opportunities and challenges, 411–412

technological progresslate nineteenth to early twentieth century, 63–65

technologyentrepreneurial subculture in the 1970s, 296–297revolution in the 1990s, 342–343

telecommunications system, 130telephone and telegraphNew Deal interventions, 163

telephone industry, 115television, 182, 231coverage of the Vietnam War, 232

INDEX 539






television (cont.)GE promotional photograph (1950s), Plate 60Nixon and Kennedy presidential debate, 231

Tennessee Valley Authority (TVA), 161, 165Tepper-Marlin, Alice, 455terrorism

consequences of, 377–378Texas

NASA investment in, 224oil production quotas (1930s), 163

Texas Instruments, 371Texas Railroad Commission, 163textile industry

brown lung disease crisis (1970s), 246factory workers’ rights and conditions, 41–42impact of the Industrial Revolution, 40–42

textile millsLowell, Massachusetts, 41

The Body Shop, 297, 332, 373The Equitable Life Assurance Society of the United

States (also, The Equitable, and since 2004, AXAEquitable Life Insurance Company)

corporate social responsibility programs, 278group insurance plans for employees, 116organizational culture and social

responsibility, 313“the long run” (lag between liquidation and

rebound), 154theories of corporate responsibility, 369–370theory of evolution, 54–55Third World, 198

modernization to counter radicalism, 215–216Thirteenth Amendment to the Constitution,

49, 54, 61Thompson, Wayne, 248Thornwell, James, 49Ties that Bind (Donaldson and Dunfee, 1999), 402Timberland, 373Tipping Point (Gladwell), The, 234tobacco industry, 71

scandals, 246Toffler, Alvin, 268tokenism, 222, 251Tom’s of Maine, 297, 373“too big to fail” organizations, 379Total Quality Management (TQM), 331Townley, Preston, 327Townsend, Francis, 171Townsend Club, 171toxic waste cleanup legislation, 285–288Toynbee, Arnold J., 6trade associations, 128, 149trade barriers

reduction under President Clinton, 342transcontinental railroad, 51Transocean, Ltd., 400transparency

and reputation, 387–388creation of the SEC, 167–168impacts of technological innovation, 411–412in business, 22–23

public information, 138–139Transportation Security Administration (TSA), 378Travelers insurance company, 116Treaty of Detroit, 204, 219Triangle Shirtwaist Factory fire (1911), 9, 98, 238triple-bottom-line measurement, 390–392, 422triple-bottom-line thinking, 24, 412Troubled Asset Relief Program (TARP), 379Truman, Harry, 185–186, 220Trustees of Dartmouth College, 43trusts, 79truth-in-lending legislation, 207tuberculosis, 97Tuskegee Airmen, 186Tutu, Desmond, 318TVA (Tennessee Valley Authority), 161, 165Twentieth Century Fund, 146Twitter, 9Tyco, 378Tyco Electronics, 391–392Tylenol contamination casemanagement by Johnson & Johnson, 317

UCLA, 289underdeveloped nationsmodernization to counter radicalism, 215–216See also Third World.

unemployment, Plate 108and labor activism, 172and technology, 179and the New Deal, 157, 162impact of outsourcing, 377impact of the financial crisis of 2008, 377, 379, 409in the 1980s, 13in the 2000s, 377, 379, 381, 409in the Great Depression (1930s), 152–155increase in the 1970s and 1980s, 267OECD advice on, 418Panic of 1893, 88periodic, 86, 121rates for men and women (1980s and 1990s), 347

unemployment insurance, 122UNICEF, 323Unilever, 295, 390–391, 393union-busting activities, 140–141Union Carbide, 286, 367Bhopal disaster, 316, 340West Virginia chemical explosion, 316

Union OilSanta Barbara oil spill (1969), 244

Union Pacific-Southern Pacific railroad, 95unions, 90, 116, 121, 139activities in the 1930s, 172–175American Federation of Labor, 76anarchist unions, 77automobile industry, 9barriers to African-Americans, 186–187craft unions, 77Ford’s response to strikes, 174impact of company benefit schemes, 143, 144impact of the American Plan, 140–141

540 INDEX






industrial, 77International Workers of the World (IWW), 77Knights of Labor, 76, 77labor activisim in the 1930s, 172–176labor power in the 1950s, 204limits of labor power, 203–204Lordstown workplace protests, 270sit-down strikes (1930s), 173–174socialist unions, 77suppression under welfare capitalism, 83–84union-busting activities, 140–141

Uniroyal, 350United Airlines, 321, 411United Arab Emirates, 9United Auto Workers, 173, 174, 175, 186, 204,

218, 372United Brands, 280United Corporations of America, Plate 119United Farm Workers, 236United Nations Convention Against Corruption, 365United Nations Declaration on Human Rights, 402United Nations Environment Program (UNEP), 367United Nations Global Compact, 366, 367, 395, 402,

403, 406United Nations Millennium Development Goals, 376United States Agency for International Development

(USAID), 396United States Minerals Management Service, 400United Steel Workers, 173United Technologies, 345University of St. Thomas, xiii, xvi, xvii, xxUnsafe at Any Speed (Nader), 240–241unsafe practices

ending of, 9Untermyer, Samuel, 104urban planning, 81, 93UPS, 374US mail, 148US Steel, 66, 121, 122, 138, 142, 143, 149, 156, 215,

222, 273, 374resistance to change in the 1970s, 274

utility holding companies, 164–165utopian business enterprises, 79–80utopian communities, 19, 59–60

Amana Community, 19, 60, 79New Harmony, 19Oneida Community, 19, 59–60, 79–80Pullman experiment, 80–81

Vail, Theodore, 138Valdez Principles, 366“Valley of the Drums”, 288value creation

role of corporations, 8value statements, 365values

hypernorms, 402professional and social, 212–214profiling, 272religious, 214–215

Van Kleek, Mary, 140

Vanderbilt, Cornelius, 68, 79Vanguard Group, 411Veblen, Thorstein, 119Verity, C. William, Jr., 308, 310–311Vermont National Bank, 353vertical integration strategy, 67Vietnam War, 232–233, 269economic consequences, 265opposition to, 231, 232, 269, 372television coverage, 232

virtuous golden mean between extremes, 416–417Vis, Jan Kees, 390–391, 393Vital Speeches, 268Volcker, Paul, 267voluntariness dimension of corporate

responsibility, 8voluntarism, 209, 222business response to Reagan, 310–311disenchantment with, 315George H. W. Bush presidency, 324Hoover’s appeal in the 1930s, 154Kennedy’s call for, 232limitations of, 315Points of Light Foundation, 341Reagan’s call for, 307–310resurgence in the mid-1980s, 323–324

voluntary global reporting initiatives forbusiness, 377

volunteerism, 415, Plate 102employee programs, 346global, 361–362

Votaw, Dow, 7Voting Rights Act (1965), 236

Wachovia Bank, 379, 319Waddock, Sandra, 404, 405–406wage and price controls (1971 to 1974), 267wage slave concept, 75Wagner Act (1935), 174–175Wagner, Robert, 174–175Waite, Morrison, 43Walker, Francis Amasa, 87Walker, Frank, 352Walker Group1994 consumer opinion study, 350–351consumer buying decisions, 352

Walker Information, 358Wall Street, 14insider trading, 332, 350power of, 329public perception of, 104, 179reform under the New Deal, 165–168role of insider information (1920s), 168stock ownership in the 1920s, 132target of the Populists, 78See also Dodd-Frank Wall Street Reform and

Consumer Protection Act (2010).Wall Street (film), 332, Plate 94Wall Street Crash (1929). See stock market crash of

1929Wall Street Journal, 411

INDEX 541






Walmart, 53, 362, 363, 371, 374, 388, 396Walt Disney, 371Waltham, Massachusetts, 41Walton, Clarence, 258Wang Computers, 297Wang Labs, 331war and reform, 128–131War Between the States. See Civil warWar Department, 184War on Poverty, 232War Production Board, 187Warren Court, 232Warren, Earl, 232wars

Gulf War I, 341in Afghanistan, 376in Iraq, 376, 378See also Vietnam War; World War I; World War II.

Washington, DCmarch on (1963), 236

Washington, George, 45–46Washington Mutual Bank, 319Washington Post, 286, 308, 336, 372, 378waste = food philosophy, 399–400Watergate affair, 27, 270, 445Waterman, Robert, 330–331Watkins, Sherron, 386, Plate 104Watson, Thomas, Jr., 20Watt, James, 315Watts Riots, 232, 251We Are the World fundraising event (1985), 323wealth

as a sacred trust (Carnegie), 85–88Wealth of Nations (Adam Smith), 38Weber, Maximillian (Max), 6, 33, 54, 57–59, 61, 406Weidenbaum, Murray, 321, 330Weiss, E. B., 252–253Welch, Jack, 322Welch, Robert, 225Weldon, William, 407Welfare and Pension Disclosure Act (1958), 220welfare capitalism, 81–83

as self-interest, 143–144business case for, 146debate over, 146limits of, 83–84return to (post-WWI), 139–146revisited in the 1920s, 141–143, 143–144suppression of unions, 83–84

welfare departments within firms, 142welfare state, 77, 211

in Great Britain, 190welfare work, 81–83Wells Fargo Co., 371Werhane, Patricia, 290West Virginia, 316

Upper Big Branch Mine explosion (2010), Plate 112Westinghouse, 116, 149, 181, 206, Plate 42Wharton, Joseph, 14, 110, 134, 215Wharton School, 10, 14, 110, 134Wheeler, Walter, 199

Whirlpool, 253, 345whistleblower complaint procedures, 385whistleblowers, 386Whitney, Eli, 41Whitney, George, 167Whitney, Richard, 167Whittier, John Greenleaf, Plate 4Whyte, William, 227Wilderness Act (1964), 244Willkie, Wendell, 178Willmar 8 picket line (1979), Plate 79Wilson, Charles, 228Wilson, Ian, 272–273, 274, 294Wilson, Woodrow, 95, 119–120, 122, 123, 125, 128wind farms, Plate 113Wizard of Oz (movie), The, 177Wollstonecraft, Mary, Plate 8womenconfronting sweatshop labor, 98–99participation in strikes, 173–174right to vote, 48, 131role of, 75See also feminism.

women in the workplace9to5: National Association ofWorkingWomen, 347“best places” to work, 323changes in the 1960s, 239–240developments in the 1990s, 347–348early twenty-first century, 410glass ceiling, 185, 348rise in the 1970s, 305, 348wartime innovations, 185work–life balance, 348

Women’s Liberation Union, 239women’s movement, 233, 238–240employment status of women, 239–240

women’s rights, 48, 50, 234, 250, 271, 406corporate responses in the 1960s, 251–252developments in the 1990s, 347–348

women’s rights movements (nineteenth century), 48Wonder Bread, 181Wood, Robert, 191Woolworth Building, New York City, Plate 9work ethic, 57–59, 61work-related deaths and injuriescompensation for, 98

work-sharing plans (1930s), 155–156worker benefitscorporate responsibility for, 219–220employee insurance plans, 116–117

worker compensation, 96–98, 115, 122worker safety and health, 96–98activism, 245–246improvements in the 1920s, 142–143

workers’ conditionsas measure of social responsibility, 121–123

workers’ rightscoal mining industry, 69–70protection of, 395–397Social Gospel, 112–113view of the Catholic Church, 112

542 INDEX






working classimpacts of the New Deal, 171–176

workplacenew employment social contract, 409–411

workplace diversityinitiatives in the 1990s, 348–350

World Bank, 419World Economic Forum (Davos, 2008), 401World Health Organization (WHO), 318World is Flat (Thomas Friedman),

The, 338–339World Resources Institute (WRI), 354World Trade Center attacks (2001). See September

11th attacksWorld War I, 123, 153

Great Migration, 129impacts on reform, 128–131War Industries Board, 129, 182war service bonuses, 153

World War II, 158, 406corporate support for the war effort, 187government investment in US states, 224impact on business, 187impact on the American economy, 183–185outcomes for African-Americans, 185–187Rosie the Riveter, 185, Plate 54women in the workplace, 185

World Wide Web, 342World Wildlife Fund, 243, 394WorldCom, 14, 378, 386, Plate 105World’s Fairs, 181–182Chicago, 1933, 181New York, 1939, 182

Worldwide Fund for Women’s Health, 363Wright, Frank Lloyd, 16

Xerox, 4, 246, 280, 314, 331, 349Social Service Leave Program, 249–250

Xerox Corporation, Plate 80

Yama Farms meetings, 128Yankelovich, Daniel, 328“Years of Hope and Idealism,” 232“yellow dog” contracts, 84YMCA, 81, 82Young, Owen D., 20, 135, 137–138, 139, 169, 201,

Plate 40Yunus, Muhammad, 392YWCA, 309

Zadek, Simon, 17, 354zero emissions goal, 399–400zero waste philosophy, 399–400Zuckerberg, Mark, 19

INDEX 543




corporate responsibility: the american...

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