The modern consumer movement is generally considered to have begun in 1965 with the publication of Ralph Nader’s Unsafe at Any Speed that criticized the auto industry as a whole, and General Motors Corporation (GM) in particular, for putting profit and style ahead of lives and safety. GM’s Corvair was the main target of Nader’s criticism. His consumer protection organization, popularly known as Nader’s Raiders, fought success- fully for legislation requiring automobile makers to equip cars with safety belts, padded

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Chapter 1: The Importance of Business Ethics 11

dashboards, stronger door latches, head restraints, shatterproof windshields, and collaps- ible steering columns. Consumer activists also helped secure passage of consumer protec- tion laws such as the Wholesome Meat Act of 1967, the Radiation Control for Health and Safety Act of 1968, the Clean Water Act of 1972, and the Toxic Substance Act of 1976. 22

After Kennedy came President Lyndon B. Johnson and the “Great Society,” a series of programs that extended national capitalism and told the business community the U.S. gov- ernment’s responsibility was to provide all citizens with some degree of economic stability, equality, and social justice. Activities that could destabilize the economy or discriminate against any class of citizens began to be viewed as unethical and unlawful.

The 1970s: Business Ethics as an Emerging Field Business ethics began to develop as a field of study in the 1970s. Theologians and philoso- phers laid the groundwork by suggesting certain moral principles could be applied to busi- ness activities. Using this foundation, business professors began to teach and write about corporate social responsibility , an organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact. Philosophers increased their involvement, applying ethical theory and philosophical analysis to structure the discipline of business ethics. Companies became more concerned with their public image, and as social demands grew, many businesses realized they needed to address ethical issues more directly. The Nixon administration’s Watergate scandal focused public interest on the importance of ethics in government. Conferences were held to discuss the social responsibilities and ethical issues of business. Centers dealing with issues of business ethics were established. Interdisciplin- ary meetings brought together business professors, theologians, philosophers, and business- people. President Jimmy Carter attempted to focus on personal and administrative efforts to uphold ethical principles in government. The Foreign Corrupt Practices Act was passed during his administration, making it illegal for U.S. businesses to bribe government officials of other countries. Today this law is the highest priority of the U.S. Department of Justice.