An Ethical Dilemma (Scenario)

question 116

Multiple Choice

An Ethical Dilemma (Scenario)
Max Proffit, director of research and development for NexGen Products Company, has learned that a new material has been developed in his department that will help reduce production costs without any accompanying loss in quality. He has discussed the potential savings with his two assistants, Angel Lee and Moe Gaines, as well as the vice-president of product development, Rush Onward. Angel has stated her opposition to the use of the new material because its durability and fire-resistant properties have not been fully tested nor certified by the company's third-party testing laboratory. Moe argues that the initial tests that their R&D department has run indicated minimal problems with both durability and fire resistance. Rush stated that he has been in several meetings lately where the need to increase earnings-per-share has been repeatedly emphasized by the company president. Rush has told Max that a decision has to be made within the week about the use of the new material in NexGen's products.
-Moe Gaines's support in favour of using the new material,despite the fact that it has not yet been certified,may be an indication that he ________.

• A)is operating at the principled stage of moral development
• B)has a weak locus of control
• C)has weak ego strength
• D)is taking an accommodative approach to social responsibility

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Definitions:

Business Revenues

The total income received by a company from its sales of goods or services, before any expenses are subtracted.

Physical Inputs

The tangible resources or materials used in the production of goods and services.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price over a specified period.