A Firm Is Considering Opening a New Plant in an Existing

question 96

Multiple Choice

A firm is considering opening a new plant in an existing building at a business park. It is located in the middle of a coal-producing region, which remains visibly blighted by the effects of strip mining. The plant's heating system is based on coal heat, which is locally produced and relatively cheap, reducing the plant's operating expenses significantly. Company engineers note that the plant's roof is ideal for solar panels, which would reduce the firm's future dependence on coal, nuclear, and other conventional sources of energy. However, the cost of installing the panels is considerable and would mean that the new plant would not return a profit to the company for several years. The CEO feels that the panels should be installed.
Which of the following, if true, tends to compromise the ethical standing of the CEO's position?

• A) The CEO was born and raised in the community where the new plant will be located.
• B) The CEO plans to purchase the solar energy panels for the new plant from an alternative energy business just started up by her grandson.
• C) The plant is located near a small lake that is heavily polluted by residue from strip mining.
• D) The firm recently instituted a policy of bonuses for environmentally responsible actions, which the managers assigned to the new plant would be certain to get.
• E) The CEO expects to sell some of the power generated by the solar panels back to the local energy grid, enhancing corporate profits.

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Definitions:

Broad Array

refers to a wide and varied range of items, options, or choices.

Differentiation Focus Strategy

A business approach aiming to target a specific market niche by offering unique features that stand out from competitors.

Competitive Scope

The breadth and depth of a company's competitive arena, including the number and types of markets it competes in.

Organizational Structure

The way in which a company or organization is arranged, including the hierarchy of roles and the layout of departments.