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Asked by Raney Sumpter on Jul 05, 2024

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When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates

A) the need to identify possible ethical issues.
B) that unethical actions can impact stakeholders beyond the corporation.
C) that unethical firms cannot be socially responsible.
D) the lack of information needed to make ethical decisions.
E) the questionable advantage of social responsibility.

Financial Crimes

Illegal acts committed by individuals or organizations to obtain a financial or professional advantage.

Ethical Issues

Questions of morality and values that arise in the context of professional and personal conduct.

Community Charity

A non-profit organization that provides support, resources, and assistance to local community members in need, aiming to improve the quality of life within the community.

  • Understand the influence of moral decision-making and corporate social responsibility on stakeholder interests.
  • Examine the effects of corporate choices on community welfare and the standing of the company.
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Zybrea KnightJul 07, 2024
Final Answer :
B
Explanation :
The example demonstrates that unethical actions can have negative impacts on stakeholders beyond the corporation. In this case, the loss of WorldCom's sponsorship of the golf tournament had a direct impact on the community charity that it supported. This highlights the importance of considering the potential consequences of unethical behavior on all stakeholders in ethical decision making.

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