Business Strategy $($BSTR$8112)$ Chapter $3$ Page $1$ of $2$ B Genetically modified $($GM$)$ plants are produced by adding a gene from another species. This makes the plants more resistant to weed killers or pests and able to grow with less water or in other difficult conditions. GM crops are substantially more profitable for farmers than normal crops because they produce far larger yields per acre. Many see GM crops as the great hope for ending starvation around the world. However, concerns, especially in Europe, exist about the possible long$-$term negative impact of genetically modifying crops. Further opposition is based on fears that conventional crops growing in fields some distance away from a GM crop can be damaged by the GM crop$$s DNA. B is a privately owned biotechnology company based in Europe. It has developed a process that makes seeds pest$-$resistant without genetically modifying them. The company has only operated at the laboratory scale and has no production facilities capable of producing commercial quantities of the seeds. Due to the nature of the biotechnology industry, B has been very secretive about the research work it is conducting. However, the news of the recent invention has caused a lot of excitement in the scientific community. Within this community, this non$-$GM technology, developed by B$,$ is seen to have the potential to contribute significantly to both the economy and the well$-$being of populations in poorer countries. Recently, however, B has faced increasing protests from environmental lobby groups and elements of the local community near its laboratories. These groups want B to stop developing and testing these non$-$GM seeds. These stakeholder groups claim incorrectly that the seeds are genetically modified. The government of the country in which B is based is currently conducting an inquiry into the safety of GM crops. The inquiry is not likely to reach a conclusion for another $18$ months. The expected conclusion is a ban on the research and development of GM crops. Some other countries have already banned such research, while others have approved such research. Although B does not genetically modify seeds, the Board believes that the company will suffer from the adverse publicity resulting from a ban on research and development into GM crops. The Board of B is considering the following options: Business Strategy $($BSTR$8112)$ Chapter $3$ Page $2$ of $21.$ The company could work to convince the stakeholders that it is not genetically modifying seeds and that it is in everyone's best interests that it be allowed to continue with its research. $2.$ The company could move to a country where there is a more tolerant attitude toward research and development in the area of biotechnology. Required:

$($a$)$ Discuss B$\text{'}$s corporate responsibility towards the government, the environmental lobby groups, and the local community as stakeholders.

$($b$)$ Recommend how B can improve relationships with the government, the lobby groups, and the local community.

$($c$)$ Discuss the corporate social responsibility $($CSR$)$ issues relating to B$$s option to relocate, using the four dimensions of CSR: legal, ethical, economic, and philanthropic.