Use the Information Given Below to Answer the Following Three

question 74

Essay

Use the information given below to answer the following three questions:
Ahmed and Natalie are the marketing managers of a clothing brand, Ink Corp. They have manufacturing units in India and China. Investors are dissatisfied with the current profits and are pressuring the marketing team to increase profits. Natalie suggests increasing the working hours of the laborers by an hour. Doing so would increase the weekly outputs with minimal increase in the input cost. Ahmed believes that the increase in work hours should reflect as an increase in wage to the laborers. Natalie states that the employee compensation laws are not as stringent as those in the United States and this could be beneficial to them.
1. Describe the shareholder's concerns.
2. In the context of the four levels of corporate social responsibility, explain how Natalie believes they can benefit by increasing the work hours without an increase in pay.
3. In the context of the four levels of corporate social responsibility, contrast Ahmed's concerns with Natalie's.

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Definitions:

Sales Revenue

The total amount of money earned from goods and services sold before any expenses are subtracted.

Goodwill

An intangible asset that arises when a company acquires another business for a price higher than the fair value of its net identifiable assets and liabilities.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its original cost without adjusting for market changes.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.