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In July 2018, the Papa John's Pizza Chain Decided to Distance

Question 55

Multiple Choice

In July 2018, the Papa John's pizza chain decided to distance itself from John Schnatter, its founder and pitchman, after it was reported that he had used a racial slur in a comment about black people. Mr. Schnatter apologized and resigned as chairman. The company said Mr. Schnatter's image, a fixture on its marketing materials, would be removed as the "first of several key steps to rebuild trust from the inside-out." Papa John's suddenly faced the tricky task of disentangling itself from its founder and convincing its customers and investors to move on, and also began considering whether or not to rebrand itself. Papa John's strategy needs to be ethical because


A) of the dangers that Papa John's top management will become embarrassed if the company does not take action.
B) it is good business and in the best interest of shareholders.
C) everyone in the media is an ethics watchdog and somebody is sure to blow the whistle on the company's unethical behavior.
D) of the inevitable risks of being boycotted by customers of major corporate affiliates including Major League Baseball and the National Football League if an unethical strategy is used.
E) unethical strategies boost long-termism in corporate culture.

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