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Question: Read Case Study: Case 15-1: Rocky Plains Brewing Ltd - Does Rocky Plains have a corporate social responsibility ethical responsibility of managing relationships with a supplier when the buying company represents a significant portion of their annual revenues and profits?

27 Oct 2022,8:05 AM

 

Case Study: Case 15-1: Rocky Plains Brewing Ltd

Answer the questions based on the case.
1. Does Rocky Plains have a corporate social responsibility ethical responsibility of managing relationships with a supplier when the buying company represents a significant portion of their annual revenues and profits? Elaborate!

2. Does Gilpin have an ethical responsibility to manage its customer concentration risk? Elaborate!

Expert answer

 

Yes, Rocky Plains Brewing Ltd has a corporate social responsibility ethical responsibility of managing relationships with a supplier when the buying company represents a significant portion of their annual revenues and profits. While it may be difficult to maintain good relationships with all suppliers, it is important to keep in mind that the supplier's success is essential to Rocky Plains' own success. If Rocky Plains were to terminate its relationship with the supplier without cause, it could have a devastating effect on the supplier's business. Additionally, if Rocky Plains were to mistreat the supplier or otherwise act unfairly, it would likely damage Rocky Plains' own reputation in the marketplace. Ultimately, maintaining good relations with suppliers is not only the right thing to do from an ethical perspective, but it is also critical to Rocky Plains' own long-term success.

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