ServProf Inc is a financial consulting firm that is currently recruiting new employees. One of the policies of the company states that an employee should agree to work in the company for a minimum of one year, and this requires every employee to sign a contract with the company. Employees who accept the job offer agree to this policy, and it does not affect them. However, it is against the law for companies to follow such a policy. In this scenario, ServProf has engaged in _____ behavior.
A) illegal and unethical
B) illegal yet ethical
C) legal yet unethical
D) legal and ethical
Question 2
A supervisor at a manufacturing plant is told to dump chemicals used in the refining process into a local river rather than disposing them properly according to safety regulations. The chief executive officer of the company insists that the chemicals are not harmful to the environment. The supervisor knows that dumping is illegal and that he will lose his job if he reports the issue to authorities at the Environmental Protection Agency. In the context of causes of unethical corporate behavior, this scenario illustrates the supervisor's:
A) obsession with personal advancement.
B) expectation of not getting caught.
C) uncertainty about whether an act is wrong.
D) unwillingness to take a stand for what is right.
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Financial Management: Core Concepts