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

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Definitions:

Performance

The act of carrying out or accomplishing an action, task, or function, often measured against predetermined standards.

Self-Esteem

A person's overall sense of their value or worth.

Self-Efficacy

An individual’s belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Flexibly Receptive

Openness to change and new ideas, while being able to adapt and respond positively to different circumstances and challenges.