Question
Mega Market operates a chain of 50 fast food franchises (known as the Mini Surprise) throughout Washington and Oregon.Each Mini Surprise store is required to
Mega Market operates a chain of 50 fast food franchises (known as the "Mini Surprise") throughout Washington and Oregon.Each Mini Surprise store is required to purchase all food supplies from Mega Market's food processing plant (the "Plant") - located in Walla Walla Washington. In recent months, Mini Surprise franchisees have complained about the high cost of the Plant's food supplies. To address this concern, Mega Market is considering closing the Plant, where average wages are $18.25 per hour, and relocating to a foreign country where average wages for the same work will be $7.75 per hour. After factoring in the higher cost of shipping and the lower wages, Mega has determined that it can provide food supplies to its franchises 20% below what it currently charges. If Mega Market relocates the Plant outside the U.S., approximately 1,800 people will lose their jobs.It's been estimated that it will take over a year for these 1,800 people to find comparable work.
(1) What theory (or theories) of social responsibility should Mega Market's management consider in making a final decision about relocating the Plant to another country? Based on this theory, should Mega Market relocate the Plant?
(2) Assume that you disagree with Mega Market's decision. What theory of social responsibility would best support your conclusion?
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