An ethical corporation makes a commitment to manage its roles in society— as a producer, employer, customer, and citizen—in a responsible manner. Implementing policies and practices in these areas is generally considered sound management. Many companies publish their commitment to corporate responsibility in their annual reports. 

INSTRUCTIONS

Use PETsMART’s statement of corporate responsibility in Appendix F for these activities.

1. Explain why it is crucial for a board of directors to be independent from management.

2. Identify any key principles of conduct discussed on pages 836–837 that this statement of responsibility addresses.

3. In what areas does management want its financial statement users to have confidence?