Comprehension

Recently a private food testing agency reported the presence of a harmful chemical in Crunchy Chips, a product of a fast moving consumer goods giant. The report sparked a nationwide Outcry. 

Question: 1

Rajan Shekhawat, the CEO of the company, feared this incident might affect the company’s image among consumers. Rajan had the following options: 1. Apologizing publicly for this inconvenience and immediately withdrawing the products from all stores.
2. Communicate ‘the correct findings’ to the public.
3. Hire a reputed independent testing agency to verify the claims of the report.
4. Establish internal mechanisms to prevent repetition of such incidences in future.
5. Give higher incentives to distributors and retailers for selling the company brands.
Which of the following would be the MOST APPROPRIATE ORDER of options for Rajan, starting from the immediate?

Show Hint

In crisis management, the correct sequence is: \textbf{Verify facts → Communicate transparently → Prevent recurrence}. Avoid premature admissions or irrelevant actions that don’t address the root cause.
Updated On: Aug 25, 2025
  • 3, 1, 5
  • 3, 2, 4
  • 1, 3, 5
  • 1, 2, 5
  • 5, 3, 2
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The Correct Option is B

Solution and Explanation

Step 1: Identify the immediate crisis response.
The report has made claims that may damage the company’s image. The first logical step is to verify the truth of the claims through an independent and reputed testing agency (Option 3). Acting without verification may cause unnecessary panic or mistrust.
Step 2: Communicate verified findings.
Once the results from the testing agency are obtained, the next step is to communicate the correct findings clearly and transparently to the public (Option 2). This ensures consumer trust is maintained.
Step 3: Ensure long-term prevention.
After addressing the immediate crisis, the company must focus on preventing recurrence of such incidents by establishing internal mechanisms (Option 4). This step strengthens systems, improves monitoring, and reassures the public that the issue will not happen again.
Step 4: Rule out irrelevant or less effective actions.
- (1) Public apology and immediate withdrawal might be premature without verification; it risks admitting fault unnecessarily.
- (5) Higher incentives to distributors is irrelevant to the issue of consumer trust and safety.
Step 5: Conclude.
Thus, the best order of action is: \[ 3 \;\; \Rightarrow \;\; 2 \;\; \Rightarrow \;\; 4 \] \[ \boxed{\text{Correct Answer: (B) 3, 2, 4}} \]
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Question: 2

Mukesh Routray, a shopkeeper in a remote village, read in the newspaper (his only source) about harmful chemicals in Crunchy Chips. He had stocked a large quantity for the festive season and realized people in his village are unaware of the controversy. He has the following options: 1. Sell the entire stock at a discount before the news spreads.
2. Destroy the entire stock and advise customers not to buy this product from other shops as well.
3. Donate the entire stock of Crunchy Chips to a local orphanage.
4. Inform customers about the controversy but understate its seriousness.
5. Ignore the news and sell the stock at the forthcoming festive season as planned.
6. Explore the veracity of the report and then take a decision.
If arranged from ethical to unethical, which of the following is DEFINITELY the WRONG order?

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For “definitely wrong order” questions, look for a pair whose ethical ranking is \textbf{unambiguous} (here, \(4 \prec 1\)). Any sequence that inverts such a pair must be wrong.
Updated On: Aug 25, 2025
  • 6, 5, 1
  • 6, 1, 4
  • 4, 5, 1
  • 2, 4, 3
  • 2, 4, 1
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The Correct Option is B

Solution and Explanation

Step 1: Establish undisputed relative ethics.
- 6 (verify first) is the {most} ethical starting point.
- Between 1 (dump stock quickly at a discount) and 4 (inform but understate), 1 is {clearly more unethical} than 4: selling questionable goods stealthily is worse than at least informing (even if downplaying). Hence, from ethical $\Rightarrow$ unethical, we must have \(\;4 \prec 1\;\) (i.e., 4 should come before 1).
Step 2: Test the sequences.
- (B) lists \(6, 1, 4\). After the ethical act (6), it places the {more unethical} option (1) {before} the {less unethical} option (4), which reverses the required order. Therefore (B) is definitely wrong.
- The other options do not violate any {certain} pairwise ordering that we can assert beyond doubt (e.g., debates can exist about whether 2 vs. 4 vs. 3 is worse), so they are not “definitely” wrong.
\[ \boxed{\text{Correct Answer: (B) }6,1,4} \]
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Question: 3

An independent and trustworthy confidante of Rajan Shekhawat, the CEO of the company, informed him that one of their main competitors had bribed the food testing agency to manipulate the report. Which of the following actions will BEST help Crunchy Chips to bounce back?

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In corporate ethics and decision-making scenarios, prioritize actions that \textbf{restore consumer trust quickly with transparent evidence}, rather than getting caught in defensive claims or legal battles.
Updated On: Aug 25, 2025
  • Proclaim over the media that their product is completely safe.
  • Secretly hire a food testing agency to ascertain the quality of the competitor’s product.
  • Hire another food testing agency to test and communicate the outcome to the consumers.
  • File a defamation case against the competitor for their alleged involvement in the conspiracy.
  • File a defamation case against the food testing agency.
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The Correct Option is C

Solution and Explanation

Step 1 (Identify the problem).
- The company’s reputation is damaged due to a manipulated report by a bribed food testing agency.
- Consumers now doubt the safety of Crunchy Chips.
Step 2 (Evaluate the options).
(A) Simply proclaiming safety in the media is weak—statements without evidence will not restore consumer trust.
(B) Investigating the competitor’s product is irrelevant to restoring faith in their own brand.
(C) Independent verification from a reputed food testing agency, and sharing results with consumers, directly addresses safety concerns with credible evidence. This is proactive, transparent, and consumer-focused.
(D) Filing a defamation case may drag on legally; it doesn’t quickly rebuild consumer trust.
(E) Filing a case against the food testing agency again shifts focus to legal battles, not immediate reputation repair.
Step 3 (Conclude).
The best way to regain credibility is option (C): conduct a new independent test and openly communicate the findings to consumers.
\[ \boxed{\text{Correct Answer: (C)}} \]
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