Henry is proposing to change the manufacturing process at his organization’s cem

Q: Henry is proposing to change the manufacturing process at his organization’s cem

Correct answer - Would it be ethical not to take action? Here the decision-maker is concerned about a trade-off between a harm or cost to the shareholders (by increasing expense) and the benefit caused to other constituents of the business. So, when the shareholders' value is not getting maximized by the decision to be made, the question would be "Would it be ethical not to take action?"

ID: 399962 • Letter: H

Question

Henry is proposing to change the manufacturing process at his organization’s cement production plant in order to reduce carbon emissions. This change will cause additional expenses for the organization but will make the plant more environmentally friendly. Which of the following questions is Henry analyzing?

Would the employee support the action?

Is the proposed action legal?

Would it be ethical to take the action?

Would it be ethical not to take action?

Does the proposed action maximize shareholder value?

Explanation / Answer

Correct answer - Would it be ethical not to take action?

Here the decision-maker is concerned about a trade-off between a harm or cost to the shareholders (by increasing expense) and the benefit caused to other constituents of the business. So, when the shareholders' value is not getting maximized by the decision to be made, the question would be "Would it be ethical not to take action?"

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Henry is proposing to change the manufacturing process at his organization’s cem

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