Please help me out to understand/answer the following LAW question.?

This is an economics question, not a law question. The ethics question answers itself: the corporation has a duty to the shareholders (the owners) to make reasonable decisions for the benefit of the company. It generally has little to do with the employees or the local community, unless they are closely tied to the shareholders (e.g., employees are also shareholders and comprise the entire community, such as a mill town).