Social Responsibility and Issue Intensity (Scenario)
Rick is president of a company that manufactures secondary wood products for the construction industry. Recently, there have been many reports of a plywood sub-flooring product that has been failing in a number of commercial locations, resulting in several complaints about ruined floor coverings and, in one instance, the partial collapse of a floor, which injured three people. The manager of research and development has asked marketing to stop selling the product while he runs some tests to determine the source of the problem. However, third-quarter earnings reports are due out in two weeks and public knowledge of problems concerning this lucrative product are likely to delay the financing of the company's expansion plans and cause stock prices to tumble. Rick has a dilemma. Should he continue to sell the product and delay research efforts in order to maintain the expansion plans, but risk causing more damage and injury? Or should he immediately stop sales of the product and run the necessary tests, thereby placing the expansion plans at risk and causing potential losses for the company's shareholders?
-If Rick decides to stop sales and investigate the flooring product because he feels a responsibility toward society as well as shareholders,he would be operating under the ________ view of social responsibility.
A)conservative
B)socioeconomic
C)classical
D)utilitarian

Question

Quizplus · Accepted Answer

The best choice would be for Rick to stop sales of the product and run the necessary tests immediately. This is because the potential harm caused by the product failing outweighs the financial gain from the expansion plans and maintaining stock prices. This decision is based on the socioeconomic view of social responsibility, in which a company has a responsibility to not only maximize profits but also to consider the impact of its actions on society as a whole. Continuing to sell a faulty product would not align with this view of social responsibility.