What Would You Do?
Imagine that you are the head of a company that manufactures secondary wood products for the construction industry.Recently, there have been many reports of a plywood subflooring product that has been failing in a number of commercial locations resulting in several complaints about ruined floor coverings and, in one instance, partial collapse of a third floor, which injured three people.Your head of research and development has asked you to stop selling the product and wants to run tests on the product to determine the problem.However, third-quarter earnings reports are due out in two weeks and public knowledge of problems with a lucrative product may delay the financing of the company's expansion plans and also lower stock price.Your dilemma: Do you delay or refuse the product research, thereby enhancing the expansion plans but risking other damage and public safety, or do you immediately stop sales of the product and run the necessary tests, thereby risking the expansion plans?
-Refer to What Would You Do? (Scenario).If you (as head of the company)made your decision based on what was best for the shareholders, you would be operating with the ________ view of social responsibility.
A)neoclassical
B)classical
C)conservative
D)socioeconomic
E)contemporary

Question

Quizplus · Accepted Answer

The classical view of social responsibility suggests that the primary responsibility of a business is to maximize profits for its shareholders. In this scenario, making a decision based on what is best for the shareholders, even at the potential expense of public safety or product integrity, aligns with the classical view.