SCENARIO 12-7 Microchip Technology Is at the Heart of Everything

SCENARIO 12-7 Microchip technology is at the heart of everything electronic.The stakes for manufacturers are high and market fluctuation makes for an uncertain future.Jim Forrest is CEO of BigChip Inc., a medium-sized company that manufactures specialty microchips used in a variety of computers to facilitate efficient graphics processing.Jim recognizes the need to diversify his manufacturing operations and is considering starting up a new division, which would design, develop and produce security chips.These would be used in situations ranging from data transmission to securing financial transactions.
Other companies are also considering involvement since the security market is potentially a large one.Jim knows that the rapid advancements in the field of computer hardware and software necessitates an innovative approach to development of any new technology.Jim realizes that responding to market conditions and world economic influence will have to be carefully dealt with.
Another issue for Jim is ethical practices.Ethical practices are a major focus that other companies, suppliers and competitors are emphasizing when they represent themselves to the larger community.Which of the following will not foster high ethical business practices in Jim's organization

A) high moral behaviour by senior management
B) adherence to job tasks and job descriptions
C) visible promotion and recognition of employees who display moral behaviour
D) visible punishment for those who act unethically
E) performance appraisals that evaluate means and results