CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 16 Topic 2 Discussion

CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 16 Topic 2 Discussion

BA4 Exam Topic 2 Question 16 Discussion:
Question #: 16
Topic #: 2

Decklt is a skateboard manufacturer that is ethically run and has a good reputation.

However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.

What should Decklt do?


A.

Immediately cut all ties with the company and look for a different supplier.


B.

Stick with the supplier as they won't be able to find cheaper prices elsewhere.


C.

Stick with the supplier but let the relevant regulatory bodies know that Decklt had nothing to do with their illicit activity.


D.

Immediately cut all ties with the supplier and discontinue all products that are made using their materials.


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