Question

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. The top management of Freedom actively engages in positively contributing to the disadvantaged communities in the society. B. 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. C. Freedom considers that the key to success for MNCs lie in their ability to tap resources effectively and at a lower cost. D. 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.

Answer 1

Answer: B. 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.

Explanation: From the above question, freedom has a strong social interest because it is concerned about the welfare of workers.

Sweatshop condition is an unfriendly work environment where general labour laws are been violated.

Under this sweatshop conditions, the workers have a to work long hours with little pay, child labour is encouraged, poor working conditions and so on and these go against the labour law.

Freedom shoes inc will not enter into a contract with any vendor that operates sweatshop conditions.