Scenario D

question 39

Multiple Choice

Scenario D. Use the information given below to answer the following three questions:
Two executives, Walker and Kimberley, are discussing possible options to improve profitability for their toy company, Rankin Toys. Shareholders have been unhappy with the recent decline in earnings, and stock prices have fallen sharply. Walker advocates moving toy production offshore to dramatically lower costs. He has obtained some samples made at a foreign location, but he is worried that the toys may not meet U.S. standards for lead content. Kimberley is concerned about their offshore partner's history of using child labor. She is worried about angry parent groups getting involved in these issues.
-In the context of the four levels of corporate social responsibility, the shareholders' concerns would best be described as the _____ of Rankin Toys.

• A) sustainability responsibility
• B) virtual responsibility
• C) philanthropic responsibility
• D) legal responsibility
• E) economic responsibility

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Definitions:

Plaintiff's Failure

Occurs when the party bringing a lawsuit (the plaintiff) fails to prove their case or follow legal procedures, potentially resulting in the dismissal of their case.

Defendant's Negligence

The failure of a defendant to exercise a reasonable degree of care, leading to harm or damage to another party.

Product Liability Actions

Legal proceedings initiated by consumers against manufacturers or sellers for damages caused by defective or unsafe products.

Retailers

Businesses that sell goods or commodities directly to consumers, typically in small quantities.