Question

NoraCorp wants to meet a moral minimum of ethical behavior in its operations. It is planning a merger with another company which would cause any or all of the following: I) Stock price will go up, positively impacting shareholders II) The company could build a new central headquarters, which would decrease nearby property values III) The company could fire 200 employees IV) The company could afford a new production facility, which would negatively impact the environment and landowners' property. V) The company could offer higher-quality products to customers for lower cost, positively impacting customers. NoreCorp decides to move forward with the merger. All of the above events occur, but NoraCorp offers severance packages to the employees it fires and plans to compensate landowners for damages caused by the new production facility. Which of the following is true?

Answer 1

The correct answer to this open question is the following.

You forgot to include the options for this question. However, we can answer the following.

The statement that is true is "NoraCorp´has exceeded its moral minimum requirements, meeting a corporate citizenship standard."

As NoreCorp has decided to move forward with the merger, the Board of Directors has considered some actions to comply with moral decisions that could help the people and the situations affected by the merger.  It is good and decent that NoraCorp had offered severance packages to the employees it fired and plans to compensate landowners for damages caused by the new production facility. This shows that the owners of the company have the managerial concern to support people after making a decision as difficult as it was.

Understandably, companies desire to grow and expand. In modern-day business, this implies advantages and disadvantages. In this case, there are many positives of the merger but regarding negatives, the company is assuming a decent role to offer opportunities to people that were affected.