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 decided to stop sales and investigate the product because you felt you had an obligation to society as well as shareholders, you would be operating under which view of social responsibility?

Question

Quizplus · Accepted Answer

The best choice would be to immediately stop sales of the product and run the necessary tests. As the head of the company, you have a responsibility to society as well as shareholders. Ignoring the problem and focusing only on financial gains is not the right approach towards corporate social responsibility. Therefore, operating under the socioeconomic view of social responsibility would be the best choice in this scenario. It prioritizes the welfare of all stakeholders and encourages businesses to consider their impact on society and the environment while making decisions. Delaying or refusing the product research could lead to further damage and public safety risks, which would not only harm the company's reputation but also hinder its long-term growth.