Ethics, Morality, and Legalities

Assignment Details

Take this time in the first Discussion Board to meet your fellow
classmates, to learn a little bit about them, and for them to learn
about you. Please introduce yourself to your classmates. If you are not
sure how to get started, begin by discussing your background and what
program you are enrolled in at AIU. Feel free to mention your proudest
accomplishments and your current goals (academic or personal). Share
something unique or fun about yourself!

Corporations have a lot of influence over the economy, the community,
and people. The traditional view of corporate responsibility is that a
corporation has no additional social responsibility beyond making a
profit for its shareholders. In more recent years, arguments have arisen
with the belief that corporations have a high degree of social
responsibility to people who are affected by their decisions.

Case Example: You are the CEO for GreenCar, Inc., a
corporation that recently kicked off the sale of its new car that runs
on garbage, the Compostr. After 3 months of sales, the management team
has received some troubling reports of some Compostr cars spontaneously
catching fire. The management team asks the accounting department to run
some numbers to determine how much it would cost to recall all Compostr
cars, to suspend manufacturing, and to conduct more tests to determine
the car’s safety and other possible issues. After running some numbers,
the accounting department states that it would be more cost-effective to
leave the product on the market and propose settlement proceedings with
anyone who is injured and initiates a lawsuit.

If you decide to recall the product, it will result in a delay of
dividends paid to shareholders, a loss in revenue affecting shareholder
profit, and possibly your job as CEO. Choose a position on the argument,
and discuss you answer:

• FOR argument: Would you be for leaving the cars on
  the street because you feel your duty as a corporate manager is to
  maximize shareholder profits? If so, under what corporate social
  responsibility theory would you be operating?
• AGAINST argument: Would you be against leaving
  the cars on the street and recall the product because you feel the
  corporation owes a duty to the public, consumers, and the government in
  terms of social responsibility? If so, under what corporate social
  responsibility theory would you be operating?