Scenario 3.3 Use the Following to Answer the Questions

question 46

Multiple Choice

Scenario 3.3
Use the following to answer the questions.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value
system always show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey School, operating today as a cost-free, private home and school dedicated to helping children with social needs and limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds annually by redesigning Hershey's Syrup caps. Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years, Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind other major chocolate producers with regard to certifying its chocolate as child labor-free.
-Refer to Scenario 3.3. Hershey and its employees benefit in many ways from its strong ethics compliance program. Which of the following is not one of the benefits of such a program?

• A) Enforcement and discipline of ethical infractions
• B) Better employee understanding of ethical issues
• C) Free-flowing communication within the firm regarding ethical issues
• D) These programs are expensive to develop and maintain
• E) High level of organizational guidance for employees

---

Definitions:

Variable Resources

Inputs that can be adjusted in the short term to meet changes in the level of production, such as labor or raw materials.

Craft Union

A labor union representing workers who are skilled in a particular craft, dedicated to protecting the workers' interests and negotiating for better terms through collective bargaining.

Labor Supply Curve

This represents the relationship between the amount of labor that workers are willing to offer and the wage rate, typically showing that higher wages incentivize more labor supply.

Inclusive Unionism

The policy, pursued by industrial unions, in which a union attempts to include every worker in a given industry so as to be able to restrict the entire industry’s labor supply and thereby raise wages. Compare with exclusive unionism.