Page 165 - BA1 Integrated Workbook STUDENT 2018

Answers to supplementary objective test questions

CHAPTER 3 – ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

3.1 A, C

The market seems to value low prices given the dominance of the supermarkets
thanks to their economies of scale. The additional costs of sourcing more
ethical materials may push POP’s prices up, reducing their ability to compete.

On the other hand, adopting a more positive approach to corporate social
responsibility may provide POP with a way of differentiating its products, which
could help form the basis of a competitive advantage with socially conscious
customers.

3.2 B

Reaction is the lowest of Carroll’s philosophies. It involves denying that there is
a problem and that the organisation has no responsibility to act.

3.3 C

The company is willing to spend money now and go beyond the law, but only
because it believes it will provide long-term financial benefit. This would
therefore be an example of long term shareholder interest.

3.4 A, B, E

By producing a report that she knows to be false, J would be breaching
integrity. The fact that she is doing this because of self-interest is suggesting a
breach of objectivity. Doing so will also be a breach of professional behaviour
as it could bring the profession into disrepute.

There is no evidence that J is breaching confidentiality, or that she lacks the
skills (professional competence) to do the job properly.

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