Refer to the Scenario Below to Answer the Following Questions

question 129

Multiple Choice

Refer to the scenario below to answer the following questions.
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?

• A) greatness of harm
• B) consensus of wrong
• C) immediacy of consequences
• D) proximity of victims
• E) concentration of effect

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Definitions:

Individuals

Persons as separate entities for legal or tax purposes, often considered for taxation, rights, and responsibilities.

Worker's Compensation Payments

Payments made to employees who are injured or become ill due to their job, covering medical expenses and lost wages.

Jury Duty Pay

Compensation received for serving as a juror in legal proceedings.

Income

Earnings received from various sources, including employment, investments, and business activities.