Quiz 2: Business Ethics and Corporate Social Responsibility
The senate released a report about wrongdoing at J Bank, in which bank executives lied to the traders, investors and public with the knowledge of the top management and changed risk limit to catalyze more trading and finally violated the higher limit. Internal investigation failed to report this wrongdoing. In this case, bank executives involved in lying and following the orders of the top management even though they were crossing the risk limit. They continued with the happening even when it was making the situation worse which later reported by the senate. Traders and executive must follow the personal and professional ethics, there is a responsibility of the organization towards the society, and executives must understand it and react accordingly. Traders should themselves evaluate the accounts and information regarding company and should avoid the allurements of getting more wealth by investing fewer amounts.
Ethically, I would pay for her chicken soup. I totally agree with the law that food stamps cannot be used to pay for prepared items as people on limited budgets should not be buying expensive prepared food. But in this situation, the woman is sick and need help. It would not be unethical if I pay for her. She is also willing to pay $6 for my grocery item. One must help others in need. She wants to have chicken soup as she is not well. There are certain circumstances where ethics are more important than a law to be followed. By not accepting the food stamps, the employee of grocery shop is following the statutes or law. Therefore, no such law has been broken by any citizen. To help other is a very common life principle that one must follow.
Shareholder model: It requires business verdict that maximizes owners' return on investment. MF was a strong believer in Shareholder model. He did argue that a corporate leader's sole obligation was to make money for the company's owner. Hence, the option (shareholder; did) is correct. In MF view, if shareholder and stakeholder interests conflict, the company should act in the best interests of the shareholders. Finally, only shareholders have put their own money on the line. MF strongly argued that corporation's responsibility is to make money for the owners of companies. Hence, the option B (shareholder; did not) is incorrect. Stakeholder model requires business head to consider workers, customers, and other communities when making decision. So MF did not believe in stakeholder model. Hence, the option C (stakeholder; did) and option D (stakeholder; did not) are incorrect.