You are the CEO for Baby Soft, a publicly owned fortune 500 company that sells e

Question

You are the CEO for Baby Soft, a publicly owned fortune 500 company that sells everything from soaps and shampoos, to medications and over the counter pain relievers. In a rash of criminally insane activity, an individual went into various stories in a major American city, filled up Baby Soft pain reliever capsules with cyanide, and put them back on the shelves poisoning 7 people to death. After its preliminary investigation, Baby Soft learned quickly that this was an isolated activity of one person in the city, and not anyone affiliated with company. In short, legally, the company is clear of any criminal behavior. As the CEO of the company, how should you respond to this situation? Write your response in the form of a letter to your shareholders. (Below are three possible options, although you are free to create your own.) In your response, you must give reasoning for your decision as it pertains to one of the following theories of corporate social responsibility: classical (Friedman), neo-classical (Bowie's Moral Minimum), or stakeholder (E. Robert Freeman). Be sure to indicate to your shareholders which management style you are employing and use the terms "shareholders," "stakeholders" or "moral minimum" in your letter. Although you don’t need a counter argument with this activity, be sure you offer critical insight.

(a) Do nothing. Because the company has not done anything wrong, is operating within the law, the company can do nothing more than let the proper legal authorities investigate, and prosecute the person. (Least Costly and what the shareholders most want)
(b) Recall regionally, but not national, quietly dealing with the situation and avoiding national media attention (more costly than A, but less than C)
(c) Issue a national recall of the product, instituting packaging changes that would prevent the action from happening again. (Most Costly)

Explanation / Answer

I HAVE OPTED FOR OPTION B-Recall regionally, but not national, quietly dealing with the situation and avoiding national media attention

MR ABC

123 STREET, XYZ

SOMEWHERE ,USA

DATE- 7/23/2018

MR Y

FFWA STREET, TYE

SOMEWHERE USA

SUBJECT: REGIONAL RECALL OF BABY SOFT PRODUCTS(YOU CAN ADD IT IF YOU WISH)

DEAR VALUED SHAREHOLDER,

WE HAVE JUST RECENTLY COMPLETED AN INTERNAL INVESTIGATION REGARDING THE RECENT DEATHS OF 7 CUSTOMERS WHO BOUGHT OUR PAIN RELEIVERS MEDICINE , WE HAVE FOUND OUT THAT THE PERSON USED CYNAIDE AND HE WAS NOT WORKING FOR ANY ORGANIZATION

THOUGH WE ARE NOT HELD RESPONSIBLE FOR THE ACTIONS WE HAVE RECALLLED ALL THE PAIN RELIEVERS IN THE (CITY OF YOUR CHOCE ) FROM ALL THE STORES IN THAT LOCAL REGION IN ORDER TO REGAIN THE CUSTOMERS TRUST

THOUGH IT WILL BE A LITTLE EXPENSIVE FORUS BUT WE WOULD BE ABLE TO DEAL WITH THE SITUATION SILENTLY BEFORE IT BECOMES A NATIONAL MATTER AND GRABS THE MEDIA'S ATTENTION HENCE CAUSING THE COMPANY MORE LOSS AND BAD IMAGE INFRONT OF THE PUBLIC

WE HOPE THAT THROUGH THIS ACTION WE WILL BE ABLE TO GAIN THE CUSTOMER TRUST BACK AND THEIR CONFIDENCE IN OUR BRAND AND WE CAN PROVIDE THEM WITH OUR WONDERFUL PRODUCTS AND HOPEFULLY INCREAS ETHE NUMBER OF PRODUCT USERS FOR THE COMPANY AS WE CAN TURN THIS SITUATION TO WORK BETTER FOR US SINCE CUSTOMER SATISFACTION IS OUR NUMBER ONE CONCERN  

SINCERELY

ABC

CEO BABY SOFT

*NOTE PLEASE DO RATE THE ANSWER*

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