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Part A

MKD Transportation owns and operates a fleet of container ships and tankers that transport goods around the globe. Company executives have just been contacted by the media with a credible report that one of their ships is leaking an oily substance off the coast of Belize. If true, some of the world's most beautiful coral reefs could be in danger. On the other hand, the captain of the ship in question has not notified the company of any problem, and cleanup could be very costly. Environmental groups and the government of Belize have demanded that the company admit responsibility and immediately begin cleanup.

Managers at MKD claim to exercise ethical behavior toward their employees. Describe three (3) matters this behavior might cover.

What might the general public begin to think about MKD's responsibilities toward the environment? Provide one (1) example.

If MKD adopts an obstructionist stance, how will the company respond to this media report? Provide one (1) supporting fact.

If MKD adopts a defensive stance, how will the company respond to this situation? Provide one (1) supporting fact.

If MKD adopts an accommodative stance, how will the company respond to the media and demands by the government of Belize and environmental groups? Provide one (1) supporting fact.

How might this situation have been different in the event that MKD had initially adopted a proactive stance to social responsibility? Provide one (1) supporting fact.

Part B

Describe one (1) example of a situation in which a company might adopt a pricing objective other than profit maximization. Provide two (2) supporting facts.