(2) Discussion Question needed by friday @ 3pm

profileChill Will

 

The  responsibility of the directors of a corporation is to provide a return  to shareholders on their financial investment in the corporation; in  other words, shareholders expect to make money on their investment.  Corporations such as Facebook, Google, and Apple are financed through  the sale of billions and billions of dollars in shares purchased by  investors. Sometimes, however, the duty to maximize profits runs  contrary to legal, but still questionable, business opportunities.

Assume that you’re the director of one of  the corporations listed below and have been presented with the business  opportunity described in the scenario. Would you advise the corporation  to accept the opportunity? Make sure to fully explain your answer,  considering both the financial return expected and any related ethical  concerns.( please pick one),,,

  • ToyCo  has just been informed that its wooden trains produced in China contain  lead paint and can no longer be sold in the United States. However, a  distributor offers to negotiate a deal with a foreign company to sell  the trains in a South American country that has no laws addressing the  presence of lead paint in children’s toys.
  • BabyHealth  is seeing decreasing sales of its powdered infant formula in the United  States due to more and more mothers choosing to breastfeed their  babies. In an effort to offset these losses, BabyHealth chooses to sell  their formula in third-world countries. However, it is widely known that  the water sources in these countries is often contaminated and not  boiled prior to use.
  • After  producing 10 million versions of its new smartphone, PhoneLand  discovers that due to a manufacturing oversight, some of the phones may  catch fire if left in a car on a hot day. While the worst case financial  impact from the phones catching fire is $10 million in damages,  recalling and repairing the phones will bankrupt the company.
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