inancial 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 oneof the corporations listed below and have been presented with thebusiness opportunity described in the scenario. Would you advise thecorporation to accept the opportunity? Make sure to fully explain youranswer, considering both the financial return expected and any relatedethical concerns. ToyCohas just been informed that it’s wooden trains produced in Chinacontain lead paint and can no longer be sold in the United States.However, a distributor offers to negotiate a deal with a foreign companyto sell the trains in a South American country that has no lawsaddressing the presence of lead paint in children’s toys.BabyHealthis seeing decreasing sales of its powdered infant formula in the UnitedStates due to more and more mothers choosing to breastfeed theirbabies. In an effort to offset these losses, BabyHealth chooses to selltheir formula in third world countries. However, it is widely knownthat the water sources in these countries is often contaminated and notboiled prior to use.Afterproducing 10 million versions of its new smartphone, PhoneLanddiscovers that due to a manufacturing oversight, 5 of the phones maycatch fire if left in a car on a hot day. While the worst casefinancial impact from the phones catching fire is 10 million dollars indamages, recalling and repairing the phones will bankrupt the company.
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inancial investment in the corporation . . . in other words
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