A - Role And Responsibility To Stakeholders

Question 0

What are the risks of reducing the costs relating to quality control and how the detrimental impact of such reductions in costs could be decreased?

Answer 0

Inspections would be reduced

Costs relating to processing defective goods may outweigh savings

Questionable employment practices may continue compromising company’s ethical stance and standards

Reputation of the company at risk, customers change custom, investors sell shares, media with negative adds

Eliminating duplicate or unnecessary processes

Alternative processes without compromising quality with the use of experts

Critical processes maintained with risks of making errors in assessment evaluated and discussed at senior level to ensure comfort

Question 1

What are some ethical issues that a listed company should consider?

Answer 1

Publicize accountability code (would also determine where/how far accountability lay)
Business assistance/use of influence for affected groups (jobs, lobbying, improve options)
Strong personal / business relationships (competitive advantage, bribery/illegal practice)
Pre-empt media scrutiny by media statements