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).Which view of social responsibility suggests that your decision should be based first on what will enable your wood products company long-term survival and, only secondly, profit maximisation?
A)neoclassical
B)classical
C)socioeconomic
D)conservative
E)contemporary

Question

Quizplus · Accepted Answer

The socioeconomic view of social responsibility suggests that companies should consider not only their own profitability but also the impact of their decisions on society and the environment. In this scenario, immediately stopping sales and running tests on the product would be the socially responsible action, even if it may have negative short-term effects on the company's expansion plans and stock price. Prioritizing long-term survival and profitability over social responsibility would align more with the neoclassical or classical views. The conservative and contemporary views also prioritize social responsibility, but may suggest different approaches to the situation.