Which of the following, if true, tends to compromise the ethical stand

QUESTION

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

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.