Scenario D

question 71

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, Kimberley's concerns can be best described as the _____ of Rankin Toys.

• A) environmental responsibility
• B) ethical responsibility
• C) philanthropic responsibility
• D) legal responsibility
• E) economic responsibility

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Definitions:

Japanese Bank

A Japanese Bank is a financial institution based in Japan, engaging in banking activities such as deposits, loans, and currency exchange.

U.S. Bond

A fixed-income security issued by the United States government to support federal spending, characterized by its safety and reliability.

U.S. Net Capital Outflow

Represents the difference between the purchase of foreign assets by U.S. citizens and the purchase of U.S. assets by foreigners in a given period.

International Trade

The exchange of goods and services between countries.