The Strength of the Beliefs Underlying the Moral Case for an Ethical

question 51

Multiple Choice

The strength of the beliefs underlying the moral case for an ethical strategy relates to all EXCEPT which of the following?

• A) It begins with managers who themselves have strong character (for example,who are honest,have integrity,and truly care about how they conduct a company's business).
• B) It starts with managers who walk the talk in displaying the company's stated values.
• C) It involves managers with high ethical principles and standards who are advocates of a corporate code of ethics and strong ethics compliance and are genuinely committed.
• D) It starts with managers who understand there is a big difference between adopting values statements superficially and truly accepting a company's actual strategy and business conduct.
• E) It starts with mangers that involve themselves in creating strategies based on risks and loss of reputation that implementing an unethical strategy can cost.

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Definitions:

Cost of Capital

The rate of return that a company must pay to its creditors and shareholders for using their capital.

Income Return

A measure of the income generated by an investment, usually expressed as a percentage of the investment's cost.

Capital Structure Weight

The proportion of debt and equity that composes a company's financing of its operations and growth, often affecting its risk and return.

Tax Rate

The extent to which the government extracts a percentage of income as taxes from businesses or people.