Question

While one is diverting the constrained resource/s to those products with the most potential for profit, could issues of social responsibility surface? What would be an example of that?

Answer 1

Yes, issues of social responsibility surface when constrained resources i.e. resources with a limited capacity are diverted to those products that bring in more profits for the firm.

Firms which have the sole objective of profit making by ignoring the products or processes that have issues,tend to divert their constrained resources towards the profit making products resulting in lack of focus on the issues that affect the employees, customers and public as below -

1. Ignoring customer feedback on other products or services that are resulting in dissatisfaction among them.

2. Ignoring employee safety standards and exploitating them to increase the production of the profit making goods.

3. Increase of environmental pollution due to dumping industrial wastes which result due to the production of the goods

4. Lack of resources to work on critical sustainability issues.