Case #1: Answer each question with either TRUE or FALSE.

Carol, of Carols Cupcake Company (CCC), has an opportunity to sign a contract with the Campers of America (COA), one of the largest employers in her town. The organization pays its management and employees very well; all managers earn six figure salaries.

Their income comes from the door-to-door sales of cupcakes by thousands of campers, nationwide, who range in age from 8 years to 12 years old. The plan is for COA to buy the cupcakes from CCC and then sell them to the local Camper Chapters who will sell them door to door to raise money for Chapter activities. COA makes their money on the difference between what they pay bakeries and what they charge the Chapters.

COA executives say the door-to-door cupcake selling teaches the children the value of a good work ethic, how to properly interact with people, how to manage money, and entrepreneurship. However, Carol fears that social media will portray her as part of a large child labor operation whose principal beneficiaries are the well-paid executives of COA. American values and laws forbid child labor and American opinion tends to condemn countries having agrarian economies from engaging in it.

If this happens, Carol fears she could lose a lot of business from her online sales. On the other hand, the COA is a local non-profit, and her profitable contract with them would likely renew year after year.

1. From case #1, one can see that the COA executives are violating the ethical principle of cooperativeness. TRUE OR FALSE?

2. From case #1, one can conclude that the problem of child labor is only a legal issue. TRUE OR FALSE?

3. In case #1, Carols fear reflects those of someone who sees herself as having an ethical dilemma TRUE OR FALSE?

4. From case #1, one can see that carol is not concerned with applying ethical principles that relate to corporate social responsibility. TRUE OR FALSE?