Freedom Shoes Inc., a sports shoe company, is considering entering into a contract with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be the most attractive in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. Which of the following, if true, implies that Freedom has a strong social interest?
Freedom Shoes Inc., a sports shoe company, is considering entering into a contract with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be the most attractive in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. Which of the following, if true, implies that Freedom has a strong social interest?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Freedom Shoes Inc., a sports shoe company, is considering entering into a contract with an overseas vendor to expand its production capacity.
The company investigated several suppliers and found one vendor to be the most attractive in terms of cost and manufacturing efficiency.
However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions.
Which of the following, if true, implies that Freedom has a strong social interest?
A) Despite the overseas vendor's effectiveness, Freedom decides not to enter into a contract with it because according to Freedom, tolerating sweatshop conditions is unethical.
B) According to Freedom, a firm that fails to institute a green purchasing policy in sourcing its inputs is more likely than not to fail in the long run.
C) The top management of Freedom actively engages in positively contributing to the disadvantaged communities in the society.
D) Freedom considers that the key to success for MNCs lie in their ability to tap resources effectively and at a lower cost.
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