Question：Assuming a firm wants to act ethically, it can embody social responsibility in its decision processes.
　　Which two of the following practices could be criticised on ethical grounds?
　　A. Making expensive gifts to customer contracts managers.
　　B. Shifting production to countries with cheap labour in order to cut costs.
　　C. Achieving above minimum standards of product health, safety and labelling.
　　D. Treating staff well.
　　E. Minimising the impact of operations on the natural environment.
　　The correct answers are: Shifting production to countries with cheap labour in order to cut costs; Making expensive gifts to customer contracts managers
　　解析：Exploiting cheap labour and giving expensive gifts could be criticised on ethical grounds. However, shifting production could be defended as economically sound: it is to the benefit of shareholders (who may include pension funds and charities, for example) and it prevents the entrenchment of labour inefficiency. It is also to the benefit of the developing countries concerned, whose cheap labour may be their main source of competitive advantage.
　　Making gifts to secure contracts is rather different. It reduces economic efficiency and may well be illegal under home country legislation. However, there may be occasions when it is difficult to do business without making gifts in this way.