Which of the following, if true, strengthens the ethical standing of t

QUESTION

Which of the following, if true, strengthens the ethical standing of the CEO’s position?

A) Due to new federal “cap and trade” controls, the cost of coal is likely to increase sharply in the next decade, along with that of electricity generated by burning coal.
B) The commitment to “green” and sustainable energy use would lower the company’s emissions locally as well as support the development of an alternative power industry.
C) Regulations require mining firms in the region to restore natural landscaping after operations are completed, including sections stripped before the new standards were adopted.
D) Projections made by the firm’s long-range planning team indicate that the market will support full use of the new location for at least twenty years, enough time to see savings accrue from the solar panels.
E) The most economical source for purchasing the solar panel equipment is owned by the same corporation responsible for strip mining in the new location.

ANSWER

Answer: B
Explanation: B) The issue here is one of corporate social responsibility: how can the company’s actions serve or protect the interests of parties other than those directly involved in its business? Therefore, Choice B is the answer, as the company’s decision to move toward sustainable, renewable energy supports a cleaner local environment as well as national efforts to reduce overall dependency upon fossil fuels. Other choices suggest ways in which the decision will mainly profit the firm: Choice A suggests that the present cheapness of the energy source is likely to change soon, while Choice D shows that the firm would benefit in the long run. But neither choice directly relates to the corporate ethics of the decision—they show only that moral responsibility is not incompatible with corporate profits. Choice E instead weakens the CEO’s corporate ethics by favoring a firm responsible for the area’s pollution. On the other hand, Choice C reduces the company’s accountability to further blighting of the area if coal were chosen as an energy source, but this is not what the CEO wants to do.