chapter two mini simulation BA

Chris appears unconcerned. "It's not fraud. We've got the contract. What's the difference if we record the sales in this quarter or next quarter? " As CEO, what should you do? A) don't record the sale because it isn't a sure thing until the contract is signed B) record the sales in this quarter so the company makes its earnings estimate

A) don't record the sale because it isn't a sure thing until the contract is signed

"We have a problem. The folks in accounting did a random audit on expense accounts, and it turns out that there were some irregularities on Terry Stafford's expense account statement last month. She used a company credit card for several meals with clients during a business trip. That part's okay, but then she also submitted the receipts for reimbursement on her expense report. So, we paid the credit card bill and also reimbursed her for the meals on her expense report. She was double-dipping." As CEO, what should you do? A) dock Terry's pay and put her on notice that her expense account statements will be closely monitored B) fire Terry C) give Terry a warning, but don't fire her

B) fire Terry

Jackson goes on. "The problem is the ad campaign that the geniuses in marketing came up with. Their ads claim that it 'stops bacteria in its tracks' and that's just not true. It's even on the packaging." Tonya speaks up. "Look, that's the mainstay of our promotional campaign, and sales of those blocks have gone through the roof since we started running those ads. That campaign has cost the company thousands of dollars, and if you change the packaging, that'll cost a fortune. I think we're nitpicking here." Jackson responds hotly, "I don't consider false advertising to be nitpicking." As CEO, what should you do? A) do nothing B) order another set of tests from an independent testing lab to determine the validity of the test results before making a decision C) withdraw the ad campaign completely and pull the the product from store shelves so you can change the packaging to eliminate the claim about stopping bacteria

B) order another set of tests from an independent testing lab to determine the validity of the test results before making a decision

"Bad news about our joint venture negotiations with Primo Products in El Salvador," says Elena. "I've just become aware of some media reports about possible child labor in some of their factories. The fall-out from this could be serious. Our reputation could be on the line. We can't be associated with a company that uses child labor." Everyone looks to you for a decision. What should you do? A) pull out of negotiations with Primo immediately. Child labor is wrong, and you have to put principles ahead of profits B) put the venture on hold until you can investigate whether the allegations are true C) full steam ahead! if the news hits the media, you'll do damage control, but this joint venture is critical to the company's profitability.

B) put the venture on hold until you can investigate whether the allegations are true

You know that the Foreign Corrupt Practices Act (FCPA) prohibits U.S. firms from paying bribes to foreign officials. But you also know that you need that shipment or you risk losing your biggest customer if you miss their deadline. What are you going to do? A) tell the plant manager to make the payment and bury the expense in another account B) tell your plant manager that he should not pay the bribe because it is against the law C) tell the plant manager to have a third party who isn't an employee make the payment to the customs official

B) tell your plant manager that he should not pay the bribe because it is against the law

You've decided to order another set of tests to determine whether the antibacterial agent used to treat the building blocks stops bacteria or merely slows its growth. Much to your dismay, the tests confirm that the antibacterial agent does not "stop bacteria in its tracks" as your ad campaign and packaging claim. As CEO, what will you do next? A) withdraw the current ad campaign, but don't withdraw products from the store shelves to change the packaging - just issue a press release B) withdraw the current ad campaign, issue a press release, and withdraw products to change packaging

B) withdraw the current ad campaign, issue a press release, and withdraw products to change packaging

You've decided to launch an investigation into whether the allegations of child labor at Primo's factories are true. Your fact-finding team learns that children as young as 14 are working full time at the factories. However, workers in El Salvador are legally eligible to work full time at age 14, so the company is operating within the laws of that country. How will this information impact your decision on whether to pursue the joint venture? Everyone looks to you for a decision. What should you do? A) you will insist that Primo conforms to U.S. standards for wages, hours worked, and safety requirements for minors under age 18. if the company will not abide by U.S. standards, you will not go ahead with the joint venture B) you will continue with the joint venture only if Primo agrees to develop an after work educational program for these younger workers so that they can continue their education C) the law is the law. if Primo is abiding by the child labor laws of El Salvador, you will go ahead with the joint venture

B) you will continue with the joint venture only if Primo agrees to develop an after work educational program for these younger workers so that they can continue their education

organizational responsibilities for local community

environmental stewardship, payment of required taxes, and honesty

organizational responsibilities for customers

fair prices, product quality and safety, good faith and fair dealing, and honesty

organizational responsibilities for suppliers

fair prices, prompt payment of invoices, good faith and fair dealing, and honesty

organizational responsibilities for employees

fair wages, safe working environment, legally required benefits, and honesty

organizational responsibilities for investors

financial stewardship, honesty, and financial transparency