Which of the following, if true, tends to compromise the ethical standing of the CEO's position?
A) The CEO was born and raised in the community where the new plant will be located.
B) The CEO plans to purchase the solar energy panels for the new plant from an alternative energy business just started up by her grandson.
C) The plant is located near a small lake that is heavily polluted by residue from strip mining.
D) The firm recently instituted a policy of bonuses for environmentally responsible actions, which the managers assigned to the new plant would be certain to get.
E) The CEO expects to sell some of the power generated by the solar panels back to the local energy grid, enhancing corporate profits.
Answer: B
Explanation: B) While the decision to move toward clean energy would benefit the community in which the plant is located, it also may introduce other ethical issues. Therefore, Choice B is the answer, as the CEO's decision to purchase the equipment from her grandson's firm constitutes a conflict of interest. Bids for supplying the solar panels should be part of a transparent decision process, not one based on family ties. Choice A indicates a personal reason for wanting to benefit the community, but does not in itself create an ethical issue. Similarly, Choices D and E are logical consequences of the company's policy, indicating that a socially responsible policy can and ought to be rewarded by bonuses and increased profits. Choice C shows a drawback to coal and thus tends to support the CEO's intention to use an alternative source of energy.
You might also like to view...
The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,500 Conversion costs, 3,000 units, 80% completed 6,000 Materials added during April, 10,000 units 29,000 Conversion costs during April 35,000 Goods finished during April, 11,500 units --- April 30 work in process, 1,500
units, 60% completed --- All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The materials cost per equivalent unit (to the nearest cent) for April is: A) $2.60 B) $2.81 C) $3.02 D) $2.26
The first question to ask yourself when composing a business message is "What channel should I use to send the message?"
Indicate whether the statement is true or false
The First Amendment protects corporate political speech
a. True b. False Indicate whether the statement is true or false
One example of a primary data source is
A. company files. B. observation. C. cost data. D. an intranet. E. the library.