- 10 Marks
CSEG – May 2019 – L2 – Q4b – Business ethics
Assess the significance of Wakanda Ltd’s CSR stance in addressing the impact of a product contamination crisis.
Question
Wakanda Ltd is a listed multinational company which manufactures and sells fruit juice. Last year, Wakanda Ltd received criticism in the national press in Ghana and in other countries as a lot of customers were hospitalized after purchasing some of its fruit juice which was contaminated. This resulted in low patronage of its products and a huge fine by the Government.
The Board of the company believes in improving relationships with groups such as suppliers, customers, and employees in order to regain its reputation. It has come out with the following corporate social responsibility (CSR) initiatives in order to correct the shortfall in sales:
- Paying all bills of hospitalized customers and reducing prices of the products for customers.
- Sourcing high-quality raw materials from suppliers and providing suppliers with capital to produce more.
- Using efficient processes and motivating staff to give their best.
- Maintaining the highest standard of hygiene and complying with the standards issued by the Ghana Standards Board.
Required:
Assess the significance of the CSR stance taken by the Board.
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