Perpetual Batteries recently came under criticism when a newspaper article revealed that the company's production plant had leaked a chemical compound into a sensitive wetland ecosystem. Although use of the chemical was not technically prohibited by law, the local government levied a small fine for cleaning up the spill. Environmental groups, however, argued that continued use of the chemical was damaging to the local wildlife and threatened to organize a boycott against Perpetual Batteries. What should Perpetual Batteries do to ensure that it meets its ethical responsibilities?

Question

Quizplus · Accepted Answer

A firm's ethical responsibilities go beyond its legal responsibilities. In this case, Perpetual Batteries had a legal responsibility to pay the fine, but its ethical responsibilities to its stakeholders required the firm to eliminate use of the controversial chemical entirely. By doing so, the firm was motivated to produce a new line of environmentally-friendly products and turned a threat into an opportunity.

Perpetual Batteries Recently Came Under Criticism When a Newspaper Article