Module 1: LEGAL BUSINESS MANAGEMENT (LBM)

LBM Case Study #Ralph’s Hardware updated its accounting system and agreed to purchase a
computer system from Bits and Bytes (BB) manufacturer. During contract negotiations, BB’s
sales representative promised that the system was “A-1” and “perfect.” However, the written
contract disclaimed all warranties, express and implied, which the parties later signed. After
installation, the computer produced only random numbers and letters rather than the desired
accounting information. Is BB liable for breaching an express warranty? Why? LBM
Ans: Yes, because it is still under at grace period of warranty. Also, service providers normally
covers aafter sales assistance as part of the contract.

Caase Study #2 Kate owned a small grocery store. One day John went to the store and purchased
a can of chip dip that was, unknown to Kate or John, adulterated. John became seriously ill after
eating the dip and sued Kate for damages because she breached an implied warranty of
merchantability. Is Kate liable? Why?

Ans: If the dip was made by kate then she is liable for that absolutely. But if kate purchased the
merchant with a legit manufacturer, and she was able to prove that there is no mishandling the
dip then she can retriate the case to the manufacturer because she is only a merchant.

LBM Case Study # 3Sarah purchased several elegant picture frames to hang in her dorm room.
She also purchased a package of self-sticking hangers. Late one evening, while Sarah was
studying business law in the library, the hangers came loose, and her frames came crashing to the
floor. After Sarah returned to her room and discovered the rubble, she examined the box in
which the hangers were packaged and found the following language: “There are no warranties
except for the description on this package, and specifically there is NO IMPLIED WARRANTY
OF MERCHANTABILITY.” Assuming the hangers are not acceptable, average, ordinary
quality, would the hanger company be liable for breaching an implied warranty of
merchantability? Why?
Ans: Yes, as long as the product is sealed the manufacturre has still liable to the product defect.
 LBM Case Study #Calera, Inc. discovers a way to capture carbon dioxide emissions at a
California power plant and use them to make cement. This is a win for the power company,
which needs to reduce its carbon dioxide emissions, and a win for Calera. Calera decides to
patent this invention. What kind of patent would this be? A machine? A composition of matter?
Manufacture?
Ans. Composition of matter, because she was able to create and capture co2 emisions for
another substance which is cement.

LBM Case Study #5 Based in Hong Kong, Wu Dang hacks into the Hewlett-Packard database
and “steals” plans and specifications for HP’s latest products. The HP server is located in the
United States. He sells this information to a Chinese company in Shanghai. Has he violated the
US Economic Espionage Act? 2. What are the advantages of keeping a formula as a trade secret
rather than getting patent protection?
Ans: Trade secrets, if they can be kept, have indefinite duration and thus greater potential value
than patents. Trade secrets can be any formula, pattern, device, process, or compilation of
information to be used in a business. Customer information, pricing data, marketing methods,
sources of supply, and technical know-how could all be trade secrets. State law has protected
trade secrets, and federal law has provided criminal sanctions for theft of trade secrets. With the
importance of digitized information, methods of theft now include computer hacking; theft of
corporate secrets is a burgeoning global business that often involves cyberattacks.

LBM Case Study #Keith Bradsher writes a series of articles on China for the New York Times
and is paid for doing so. Suppose he wants to leave the employ of the Times and be a freelance
writer. Can he compile his best articles into a book, Changing Times in China, and publish it
without the New York Times’s permission? Does it matter that he uses the word Times in his
proposed title?
Ans: yes, as long as e was able to patent his intellectual property then he can claim that. In not,
the company has the rightfull ownership of the article.

LBM Case Study #How will Google protect its trademark, assuming that people begin using
“google” as a verb substitute for “Internet search,” just like people began using the word
“cellophane” for all brands of plastic wrap?
Ans: Google cant loose their trademark protection for its name even though some people use
“google” in a generic sense as a verb for the act of searching the internet.
Google could still be trademarked because consumers don’t use the word as a generic term for
search engines,
But the use of google as a verb doesn’t automatically constitute generic use, even if a majority of
the public uses the word in a generic sense for internet searches, the appeals court said. No
competing search engine calls itself a “google” and consumers don’t lump all search engines
together as “googles,” the appeals court said.

LBM Case Study #Greenberg worked for Buckingham Wax as its chief chemist, developing
chemical formulas for products by testing other companies’ formulas and modifying them. Brite
Products bought Buckingham’s goods and resold them under its name. Greenberg went to work
for Brite, where he helped Brite make chemicals substantially similar to the ones it had been
buying from Buckingham. Greenberg had never made any written or oral commitment to
Buckingham restricting his use of the chemical formulas he developed. May Buckingham stop
Greenberg from working for Brite? May it stop him from working on formulas learned while
working at Buckingham? Why?
Ans: Yes, because by the nature of the agreement they Greenberg had never made any written or
oral commitment to Buckingham restricting his use of the chemical formulas he developed.

LBM Case Study #A local hotel operated under a franchise agreement with a major hotel chain.
Several customers charged the banquet director of the local hotel with misconduct and
harassment. They sued the hotel chain (the franchisor) for acts committed by the local hotel (the
franchisee), claiming that the franchisee was the agent of the franchisor. Is an agency created
under these circumstances? Why?

Ans: An agent owes his principal the highest duty of loyalty, that of a fiduciary. The agent must
avoid self-dealing, preserve confidential information, perform with skill and care, conduct his
personal life so as not to bring disrepute on the business for which he acts as agent, keep and
render accounts, and give appropriate information to the principal.

Although the principal is not the agent’s fiduciary, the principal does have certain obligations
toward the agent—for example, to refrain from interfering with the agent’s work and to
indemnify. The employer’s common-law tort liability toward his employees has been replaced by
the workers’ compensation system, under which the employee gives up the right to sue for
damages in return for prompt payment of medical and job-loss expenses. Injuries must have
been work related and the injured person must have been an employee. Courts today allow
awards for psychological trauma in the absence of physical injury.
 LBM Case Study #Upon graduation from college, Edison was hired by a major chemical
company. Edison discovered a synthetic oil that could be manufactured at a very low cost when
employed. What rights, if any, does Edison’s employer have to the discovery? Why?
Ans: The employer has the right to the discovery specially if it happens during his working hour.
Since resources at time is used officially.

LBM Case Study A guest arrived early one morning at the Hotel Ohio. Clemens, a person in the
hotel office who appeared to be in charge, walked behind the counter, registered the guest, gave
him a key, and took him to his room. The guest also checked valuables (a diamond pin and
money) with Clemens, who signed a receipt for the hotel. Clemens was a roomer at the hotel, not
an employee, and had no authority to act on behalf of the hotel. When Clemens absconded with
the valuables, the guest sued the hotel. Is the hotel liable?

Ans: yes, because the valuable is declared since the hotel also accepts valuable deposits such as
important documents, bank notes and valued jewelries. In relation to this, the guest has a full
right to sue the hotel in case of loss. Plus the fact the most hotel provide extra charges for that
service.

Why? LBM Case Study #12 A machine shop employed Hector. One day he made a delivery for
his employer and proceeded back to the shop. When he was four miles from the shop, and on the
road where it was located, he turned left onto another road to visit a friend. The friend lived five
miles off the turnoff. On the way to the friend’s house, Hector caused an accident. The injured
person sued Hector’s employer. Is the employer liable? Discuss.
Ans: no, because it is out of the travel order. Besides the employer can even sue Hector in return
as negligence to work. Because he was only assigned on a certain task and route. But he disobey
the said working schedule and visit a friend that is out of his duties and responsibilities.

LBM Case Study #13 Raul, a business student, decided to lease and operate an ice cream stand
during his summer vacation. Because he could not afford rent payments, his lessor agreed to take
30 percent of the profits as rent and provide the stand and the parcel of real estate on which it
stood. Are the two partners? Discuss your answer.

Ans: yes, because business partners is not limited to an equal amount of shares in terms of
capital. The space is considered as asset that can be share by the owner instead of shelling out
an amount. With this, raul can consider the lessor as a partner. But limited dividend since theres
only few percentage that corresponds the rental/space.

LBM Case Study #14

Diane and Rachel operate a restaurant at the county fair every year to raise money for the local 4-
H Club. They decide together what to serve, what hours to operate, and generally how to run the
business. Do they have a partnership? Discuss your answer.
Ans; no, because the business was done to raise funds for their organization. And it is non profit
organization. Accumulated sales and profit will be forward to 4-h club.

LBM Case Study #15

Grosberg and Goldman operated the Chatham Fox Hills Shopping Center as partners. They
agreed that Goldman would deposit the tenants’ rental checks in an account in Grosberg’s name
at First Bank. Without Grosberg’s knowledge or permission, Goldman opened an account in both
their names at Second Bank, into which Goldman deposited checks payable to the firm or the
partners. He endorsed each check by signing the name of the partnership or the partners.
Subsequently, Goldman embezzled over $100,000 of the funds. Second Bank did not know
Grosberg and Goldman were partners. Grosberg then sued Second Bank for converting the funds
by accepting checks on which Grosberg’s or the partnership’s endorsement was forged. Is
Second Bank liable? Discuss.
Ans: there are possible two answers by nature
1. If the by laws submitted to bank that goldman has the authority to clear cheques. Then
the bank is not liable to that
2. But if the ature of the account is withdrawal of money must be signed by Grossberg AND
Goldman. Then the bank is liable.
LBM Case Study #16 Two young business school graduates, Laverne and Shirley, form a
consulting firm. In deciding between the partnership and corporation form of organization, they
are especially concerned about personal liability for giving bad advice to their clients; that is, if
they are sued, they want to prevent plaintiffs from taking their assets to satisfy judgments against
the firm. Which form of organization would you recommend? Why?

Ans: Corporation. Because owning or being part of the corporation has limited responsibility
compared to partnership.

LBM Case Study #17 A minority shareholder brought suit against the Chicago Cubs, a
Delaware Corporation, and their directors because they failed to install lights in Wrigley Field.
The shareholder specifically alleged that the majority owner, Philip Wrigley, failed to exercise
good faith. He believed that baseball was a daytime sport and felt that night games would cause
the surrounding neighborhood to deteriorate. The shareholder accused Wrigley and the other
directors of not acting in the best financial interests of the corporation. What counterarguments
should the directors assert? Who will win? Why?

Ans:
Improper usage of resources: because purchasing unnecessary equipment’s might result
to poor management.

LBM Case Study #18 Eric was hired as a management consultant by a major corporation to
conduct a study, which took him three months to complete. While working on the study, Eric
learned that someone working in research and development had recently made an important
discovery. Before the discovery was announced publicly, Eric purchased stock in the company.
Did he violate federal securities law? Why?
Ans: Yes, particularly if you discovered something that is really feasible prior to launch then
purchased a stock. Eric violates the federal security law.

LBM Case Study # A bus driver from Massachusetts was injured when his seat collapsed while
driving his bus through Maine. He brought suit in Massachusetts against the Ohio Corporation
that manufactured the seat. The Ohio Corporation did not have an office in Massachusetts but
occasionally sent a sales representative there and delivered parts to the state. Assuming that
process was served on the company at its Ohio office, would a Massachusetts court have
jurisdiction over the Ohio Corporation? Why?
Ans: Yes, since they also allowed the company from Massachusetts to engaged in selling this
product. Therefore regardless if they have office or not in Ohio, they are still liable.

LBM Case Study # A toothpaste manufacturer advertises that special tests demonstrate that its
toothpaste results in fewer cavities than a “regular toothpaste.” The “regular” toothpaste was not
marketed but was merely the advertiser’s brand stripped of its fluoride. However, various studies
have demonstrated that fluoride in toothpaste will reduce the number of cavities a user will get.
Is this advertisement deceptive under a specific section of an Act

Ans: No, because the brand was stripped and didn’t show publicly.

Module 2: ETHICAL BUSINESS MANAGEMENT (EBM)

EBM Activity #1 Think of a person who did something morally wrong, at least to your way of
thinking. What was it? Explain to a friend of yours—or a classmate—why you think it was
wrong. Does your friend agree? Why or why not? What is the basic principle that forms the basis
for your judgment that it was wrong?
Ans: A teacher having an affair to a student but a legal age. Still are the normall situation for
college professors and students. If both of them are not connected to the same school it doesent
matter. Because both of them are on their legal age. But the thing is that. It is unethical to an
academe practinioner to have an affair to his/her student.

EBM Activity #2 Think of a person who did something morally right, at least to your way of
thinking. (This is not a matter of finding something they did well, like efficiently changing a tire,
but something good.) What was it? Explain to a friend of yours—or a classmate—why you think
it was right. Does your friend agree? Why or why not? What is the basic principle that forms the
basis for your judgment that it was right?
Ans: In relation to my answer with EBM Activity 1, another concered co worker reports the said
scenario of a teacher having an affair to its student. It might sound backstabbing to the two co-
worket. But the reality is that, the concerned teacher does his duty to report malicious act as
he/she also protects the welfare of the student.
EBM Activity #3 Think of an action by a business organization (sole proprietor, partnership, or
corporation) that was legal but still strikes you as wrong. What was it? Why do you think it was
wrong?
Ans: Contractual employment. The law says if a person with good track record working to a
company, the said company should regularized them. In our country most companies are ending
the contract after 6 mos withot giving such reason for non-renewal. To this, it is right because
the company has no liability to regular the employee. But ethically the employee did a good job
on the company.

EBM Activity #4 Think of an act by an individual or a corporation that is ethical but not legal.
Compare your answer with those of your classmates: were you more likely to find an example
from individual action or corporate action? Do you have any thoughts as to why?
Ans: Working in government office specially with DEPED, most teachers are applaud by
extending their working hours for the students. But no extended compensation which is not legal.

EBM Activity #5 XYZ Motor Corporation begins to get customer complaints about two models
of its automobiles. Customers have had near-death experiences from sudden acceleration; they
would be driving along a highway at average speed when suddenly the car would begin to
accelerate, and efforts to stop the acceleration by braking fail to work. Drivers could turn off the
ignition and come to a safe stop, but XYZ does not instruct buyers of its cars to do so, nor is this
a common reaction among drivers who experience sudden acceleration. Internal investigations of
half a dozen accidents in US locations conclude that the accidents are not being caused by
drivers who mistake the gas pedal for the brake pedal. There appears to be a possible flaw in
both models, perhaps in a semiconductor chip, that makes sudden acceleration happen.
Interference by floor mats and poorly designed gas pedals do not seem to be the problem. It is
voluntary to report these incidents to the National Highway Traffic and Safety Administration
(NHTSA). However, the company decides that it will wait a while and see if there are more
complaints. Recalling the two models so that local dealers and their mechanics could examine
them is also an option, but it would be highly costly. Company executives are aware that
quarterly and annual profit-and-loss statements, on which their bonuses depend, could be
decisively worse with a recall. They decide that it makes more sense to wait until there are more
accidents and more data on a cost-benefit basis. After a hundred or more accidents and nearly
fifteen fatalities, the company institutes a selective recall, still not notifying NHTSA, which has
its experts and the authority to order XYZ to do a total recall of all affected models. Experts have
advised XYZ that standard failure-analysis methodology requires that the company obtain
absolutely every XYZ vehicle that has experienced sudden acceleration, using microscopic
analysis of all critical components of the electronic system. The company does not wish to take
that advice, as it would be—as one top executive put it—“too time-consuming and expensive.

1. Can XYZ’s approach to this problem be justified under utilitarian theory? If so, how? If
not, why not?
Ans: Yes because utilitarianism is generally held to be the view that the morally right
action is the action that produces the most good. There are many ways to spell out this
general claim. One thing to note is that the theory is a form of consequentialism: the
right action is understood entirely in terms of consequences produced. What
distinguishes utilitarianism from egoism has to do with the scope of the relevant
consequences. On the utilitarian view one ought to maximize the overall good — that is,
consider the good of others as well as one's own good.

2. What would Kant advise XYZ to do? Explain.

Ans: XYZ motors can make a statistical report on the basis of the complains. If it reach a
high level of the same situation graphically. Then they are liable for that.

3. What would the “virtuous” approach be for XYZ in this situation?

Ans: yes, because Virtue theory emphasizes the value of virtuous qualities rather than
formal rules or valuable results. Aristotle is often recognized as the first philosopher to
advocate the ethical value of certain qualities, or virtues, in a person’s character.
Aristotle saw the goal of human existence as the active, rational search for excellence,
and excellence requires the personal virtues of honesty, truthfulness, courage,
temperance, generosity, and high-mindedness. This pursuit is also termed “knowledge of
the good” in Greek philosophy. Aristotle believed that all activity was aimed at some
goal or perceived good and that there must be some ranking that we do among those
goals or goods.
EBM Activity #6 Consider XYZ Motor Corporation in activity #5, "Josephson’s Core Values
Analysis and Decision Process," and use the core values, decision-making model. When they
first notice that two of their models are causing sudden acceleration incidents that put their
customers at risk, what are XYZ's options? Who are the stakeholders? What options most clearly
meet the criteria for each of the core values?
Ans: It is said that Michael Josephson, a noted American ethicist, believes that a current set of
core values has been identified and can be meaningfully applied to various personal and
corporate decisions. In line with this, honesty is also included on this core values. If the fault
came from XYZ motors then it shuld be liable and initiate on their own.

Activity #7 Why might someone believe the business world needs exterior ethical monitoring
and correction?
Ans: Its good to have 2 sides of the coin, meaning one view alone is hard to distinguish if you
practice ethical standards. Just like in financial audit, external auditor takes aq good view. In
external ethical monitoring, they can check also if it is still ethical. Because a culture might set
to an organization even it is no longer ethical.

EBM Activity #8 What is the argument that the business world can regulate itself, and why is
that an ethics?
Ans: in the business world we cater different products and services. With these it may also vary
different ethics. Example, killing is a crime. But in the case of someone who suffers illness in the
hospital (sever coma). An option of “euthanasia” or mercy killing is legal, provided that it has a
consent of the immediate family. Thus, it can regulate.

84 EBM Activity #9 In your own words, why is business ethics unavoidable?

Ans: at the end of the day, ethics is natural form, even at home we practice ethics, on public
areas and others. Meaning joining a company you represent the name of the company as you
speak and move inside.

EBM Activity #10 What are two reasons business ethics decisions tend to affect lives outside
work?
EBM Activity #11 What are two ways business ethics decisions may affect lives outside work?
Ans: As you work in corporate, you become ethically educated. Hence, you became righteous
also that is why when you go outside you see practices that is normal before but it became
ethical already.

87 EBM Activity #12 Your mother is ill with diabetes, and you cannot afford her medicine. One
day, in the pharmacy, you notice the previous customer forgot that same prescription on the
counter when she left. Why might the premise that the ends justify the means lead you to steal
the pills? Why might the premise that the means justify the ends lead you to return the pills?

Ans: It is teting, but aside from ethical standards I believe in karma. Besides we are not sure if
the exact dosage is the same so it might be dangerous for my mom to take the meds left by a
previous customer.

88 EBM Activity #13 Think back to your first job, whatever it was. Did you feel like the
organization used you, or did you feel like they were doing you a favor, giving you the job? How
does the experience relate to the imperative to treat others as an end and not a means?
Ans: Yes, I feel like they used us and my batchmates. I was hired full time back then
(SINGAPORE) but since we are fresh graduates we are tagged as interns firt 6 mos. But the
work itself is an independednt employee already. We received half salary of a full time employee
but the task and hours of working is the same. But at the end of the day I also learn a lot.

89 EBM Activity #14 Could a consequentialist recommend that a toy company lie about the age
level a toy is designed for? What would be an example?
Ans: Playdough it says it can be used by 3 years old and up. But 3 yrs old kid might swallow
accidentally the toy or worst get poisoned.

EBM Activity #15 If you were starting a small business, would you prefer that your partner is a
utilitarian, an altruist, or an egoist? Why?
Ans: I prefer utilitarian, because he is more practical in all aspects, I mean as a partner you
should look for someone who is the same level of zest u have.
EBM Activity #16 What responsibilities to others may a job seeker consider when looking for a
job? What is career sequencing? What are some reasons a person may choose to sequence, and
why a person may choose not to be a sequencer?
EBM Activity #17 When managers fire employees, what duties do they hold to the organization,
and what are the duties to the dismissed worker? What steps can organizations take to protect
their workers from the effects of discharge if firing becomes necessary?
Ans: one of the duties of the managers is to appraise its subordinates. With collective data
showing his/her performance managers can decide if the employee should be retained or no
longer needed t the company. Negligence to duty, absenteeism and tardiness are avenues to lead
dismissal. But the organization can protect their employees if they have a tenure of work.

EBM Activity #18 What is an example of compliance and compliance failure in a fish-selling
business that openly values honesty
Ans: compliance- a sealed scaling tool from LGU, health certificate and updated skills
Non-compliance- unregistered weighing scale, and without any health certificate.

EBM Activity #19 What might a dress code tell you about an organization’s larger culture? Why
might a business install a grooming code? Why might a utilitarian vision of the workplace and its
values lead to an only partially enforced grooming code?

Ans: Dress code also corresponds the nature of the work, if you work in the academe, banking
and other front of the house organization. You should wear appropriate dress code. Also the
dress code mostly are parallel with the safety standards of the working environment. Example
for construction companies, requiring safe booths and hats are part of their dress code but it
also protects them from unwanted situations.

EBM Activity #20 Picture a business you may want to initiate one day. What questions could
you ask that might help you get a sense of the kind of culture and values you would erect inside
the enterprise
Ans: School: I want a conducive environment not only with students but for workers and
teachers. A place that everyone can study and work comfortable.
Module 3: CORPORATE SOCIAL RESPONSIBILITY (CSR)

CSR Assignment #1 For corporate advocates of the specific CSR theory, what are the
corporation's responsibilities, and how are conflicts between those responsibilities managed?
Create a hypothetical situation in which philanthropy would not be required of a corporation by
CSR theory. What does sustainability mean within each of the three columns of the theory of the
triple bottom line? How does the fair trade movement fit together with the triple-bottom-line
theory of corporate responsibility? Who are the stakeholders in stakeholder ethics? What does it
mean for a corporate director to “balance stakeholder interests”? What essential elements do
CSR, the triple bottom line, and stakeholder theory have in common

Corporate responsibility (CR), also known as corporate social responsibility (CSR) or business
sustainability, is about the ethics which drive an organisation’s activities and how it operates so
that it’s viable over the long term. These two factors are intrinsically linked because a business
that damages the systems on which it depends will ultimately be unsustainable.

CR starts with recognising that organisations’ activities impact on society, the environment and
the economy, as well as on their own workforce. Value creation is not just a matter of finances.
Indeed, the traditional shareholder value approach to business, and the short-termism that often
goes with this, are central reasons for the global economic crisis and numerous environmental
and other ethical corporate disasters - we look briefly at social value creation below. An
organisation committed to maximises the positive impacts of its operations for all its
stakeholders.

CR matters because wider societal issues matter to people. In ‘doing the right thing’ by their
stakeholders and sharing the same values, organisations will themselves see benefits from brand
enhancement and reputation, to building employee engagement. It therefore makes good
business sense to operate sustainably.

126 CSR Assignment #2 In your own words, what are a few reasons a corporation may feel
directly required to respond to broad social obligations? What is an example of an externality?
How could the existence of that externality be transformed into an argument in favor of
corporate social responsibility? List three ways a corporate bottom line may be improved by
serving public welfare.

Ans: The term corporate social responsibility (CSR) refers to practices and policies undertaken
by corporations that are intended to have a positive influence on the world. The key idea behind
CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits.
Examples of common CSR objectives include minimizing environmental externalities ,
promoting volunteerism among company employees, and donating to charity.

CSR Assignment #3 What is the connection between corporate social responsibility and the
threat to freedom posed by socialism? How does socialism limit freedom? What is an example of
a company doing good by doing well—that is, making profits—and for that reason improving
the general welfare? How can the example be converted into an argument against the theory of
the corporation as having social responsibilities

Ans: A business can’t have moral responsibilities any more than a wrench can. Only humans
have moral responsibilities because only we have consciousness and intentions: we’re the only
things in the world that can control our actions, that can distinguish between what we want to do
and what’s right to do. Therefore, only we can have responsibilities in the ethical sense. What,
then, is a business? Nothing more than a tool, something we make to further our ends. It may
work well or poorly, but no matter what, it doesn’t do what  it wishes, so we can’t blame or
credit the business, only those individuals who use it for one purpose or another.

In Woburn, Massachusetts, according to this argument, it makes no sense to say that W. R.

Grace has some kind of corporate responsibility to keep the environment clean. A company
doesn’t have any responsibilities. It’s like a wrench, a thing out in the world that people use, and
that’s all. Would you accuse a wrench of being irresponsible if someone uses it to loosen the
bolts on some truckers’ tires and so causes an accident and disastrous spill of toxins? You’d
probably accuse the person who used the wrench of acting irresponsibly, but blaming the
wrench for something would be madness.

CSR Assignment #4 What is the difference between protecting the natural world because we
humans, and animals are valuable? What kind of experiences with nature may result in the
sensation that, as an interdependent whole, the natural world holds value? If the decision is made
to protect nature, some individuals or groups might be asked to pay the cost?
Ans: Using animals in research and to test the safety of products has been a topic of heated
debate for decades. irst, animals' rights are violated when they are used in research. Next, the
pain and suffering that experimental animals are subject to is not worth any possible benefits to
humans. Finally, the testing of products on animals is completely unnecessary because viable
alternatives are available. Many cosmetic companies, for example, have sought better ways to
test their products without the use of animal subjects. These practice should stop.

CSR Assignment #5 What is the practical problem with the execution of a cost-benefit analysis
strategy for responding to environmental problems? What is the difference between a corporation
guided by profit and a sense of social responsibility? Why might a stakeholder theory of
corporate decision-making be good for the environment?
Ans: Imagine a choice between energy project options which involve investing in a coal-fi red
power plant or a renewable energy investment, such as in wind turbines. In choosing between
these options (or deciding not to invest in either), one analytical tool that decision-makers and
practitioners might use is cost-benefi t analysis . This requires understanding what these options
provide in terms of benefits (defi ned as increases in human well-being) and costs (defined as
reductions in human well-being). Although it sounds simple enough, some way must be found to
aggregate environmental and social benefi ts and costs across different people (within a given
geographical boundary) and fi nding some means of monetising these, accounting for different
points in time when the impacts occur. For one of these projects to qualify on cost-benefi t
grounds, its social benefi ts must exceed its social costs
130 CSR Assignment #6 Conduct and defend a case study on CSR

Ans: Case study of starbucks Commitment to the Environment

The first way Starbucks has shown corporate social responsibility is through their commitment
to the environment. In order to improve the environment, with a little push from the NGO,
Starbucks first main goal was to provide more Fair Trade Coffee. What this means is that
Starbucks will aim to only buy 100 percent responsibly grown and traded coffee. Not only does
responsibly grown coffee help the environment, it benefits the farmers as well. Responsibly
grown coffee means preserving energy and water at the farms. In turn, this costs more for the
company overall, but the environmental improvements are worth it. Starbucks and the
environment benefits from this decision because it helps continue to portray a clean image.

Another way to improve the environment directly through their stores is by “going green”. Their
first attempt to produce a green store was in Manhattan. Starbucks made that decision to
renovate a 15 year old store. This renovation included replacing old equipment with more
energy efficient ones. To educate the community, they placed plaques throughout the store
explaining their new green elements and how they work. This new Manhattan store now
conserves energy, water, materials, and uses recycled/recyclable products. Twelve stores total
plan to be renovated and Starbucks has promised to make each new store LEED, meaning a
Leader in Energy and Environmental Design. LEED improves performance regarding energy
savings, water efficiency, and emission reduction. Many people don’t look into environmentally
friendly appliances because the upfront cost is always more. According to Starbucks, going
green over time outweighs the upfront cost by a long shot. Hopefully, these new design elements
will help the environment and get Starbucks ahead of their market.