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Scenario 4

question 78

Multiple Choice

Scenario 4.1 Use the following to answer the question.
Hershey Foods was founded in the 19th 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 would 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 4.1. Milton Hershey contributed resources to the community to improve the overall quality of life for consumers, employees, and the community in general. This reflected his ____ responsibility.

Definitions:

Days' Sales Uncollected

A financial ratio that measures how efficiently a company is collecting revenue from its credit sales by calculating the average number of days that sales remain uncollected.

Voucher System

A financial control mechanism in accounting where vouchers are created for each transaction, and supporting documents are required for authorization before payment.

Bank Statement

A summary of financial transactions which have occurred over a given period on a bank account held by a person or business with a financial institution.

Deposits

Funds placed into a bank account or with some other entity for safekeeping, which can include money put in savings or checking accounts.