The Example of Dennis Bakke, CEO of AES, in Which

question 29

True/False

The example of Dennis Bakke, CEO of AES, in which he and his team took responsibility for employees who lied to the EPA about water quality at the plant, suggests that for an ethical organization, it is not necessary to do more than just take strong punitive action against those who act contrary to the company-established expected behavior.

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Definitions:

Long-Term Debt

Debt obligations of a business that are due after more than one year, used to finance operations or major purchases.

Net Profit Margin Percentage

A profitability ratio that measures the percentage of net income generated from total revenue.

Used Equipment

Previously owned machinery or tools that are available for sale and use, often at a lower cost compared to new equipment.

Net Profit Margin Percentage

A financial ratio that indicates how much of each dollar of revenues is translated into profits, calculated by dividing net profit by revenue and multiplying by 100.