Social Responsibility and Issue Intensity (Scenario)

question 90

Multiple Choice

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 makes his decision based solely on the desire to maximize profits to satisfy the shareholders,he would be operating under the ________ view of social responsibility.

• A)conservative
• B)socioeconomic
• C)classical
• D)utilitarian

Analyze the role of healthcare, labor, and civil rights debates in post-war American politics.

Identify the significance of the Universal Declaration of Human Rights and American involvement in its creation.

Comprehend the influence of American domestic policies on international relations and vice versa.

Understand changes in trash generation trends in the United States.

---

Definitions:

Fixed Manufacturing Overhead

Manufacturing costs that do not vary with the volume of production, such as building lease payments or salaries of factory supervisors.

Work in Process

Inventory that includes all the materials, labor, and overhead costs for products that are in the production process but not yet complete.

FOH Budget Variance

is the difference between the budgeted factory overhead costs and the actual overhead costs incurred.

FOH Volume Variance

A measure used in accounting to describe the difference between the budgeted and actual volume of production, affecting fixed overhead costs.