Source Perrier S.A., the supplier of Perrier bottled water, exercised ________ when it recalled 160 million bottles of water in 120 countries after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and the profit from $40 million in lost sales. Even though the chemical level was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."
A) moral idealism
B) utilitarianism
C) cause marketing
D) profit responsibility
E) stakeholder responsibility

Question

Quizplus · Accepted Answer

Stakeholder responsibility is the idea that a company has a responsibility to all of its stakeholders, including its customers, employees, suppliers, and the community. In this case, Perrier S.A. recalled its bottled water after traces of a toxic chemical were found in 13 bottles, even though the chemical level was not harmful to humans. The company's president believed that it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product." This decision was made in order to protect the company's stakeholders, including its customers, employees, and suppliers.