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Social Responsibility and Issue Intensity (Scenario)

question 33

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?
-To help resolve this dilemma,Rick asked three other top managers for advice.All three agreed that it would be clearly wrong to continue selling the product without first correcting the problem.This involves which determinant of issue intensity?

Definitions:

Partnership

A voluntary association between two or more people who co-own a business for profit.

Terminated

Ended or concluded in a legal, employment, or contractual context.

Dissolution

The process of legally terminating the existence of an entity, such as a corporation or partnership.

Winding Up

The process of dissolving a company, involving settling debts, liquidating assets, and distributing the remaining funds to shareholders, if any.