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.
- 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.
- Baby Health 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 its formula in third-world countries. However, it is widely known that the water sources in these countries are 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.
Week 8 Discussion
I have selected the second scenario which is based on the Baby Health, in order to get the information so that this can help me to understand and learn about the decreasing sales system of the powdered Infant formulas found in the United States. Records have noted that Baby Health has been producing infant formulas, a to the system, mothers in the United States wanted to breastfeed their babies, other than making them consume powdered milk. Therefore, based on the topic, the effort is based on the offset losses, that BabyHealth chose to sell the infant formula in the third-world countries, in order to make it a wide source to use water-based infant powder milk in the countries using contaminated feed for the babies.
Alternatively, mothers in the United States prefer breastfeeding, as it is demanded like a plunge into the United States, which is actually not good for the company. Therefore, examining the topic has helped me to learn about the situation based on the company that actually wants to see the infant formula milk. Even babies from third world nations are consuming baby infant powder which is mixed with water before they drink it. Therefore, as the baby drink is mixed with contaminated water, it causes serious diseases them like jaundice, and cholera and can even cause death.
This case is predicted under the ethical obligation, as it is defined under the set of “ought to”, standards that actually lay off with the different moral cause to draw an action based on the wrong right sense of direction. Therefore, in this case, BabyHealth sees a decrement based on the sales that are of powdered infant formula in the United States, which is due to the mother who chooses to breastfeed their babies. Therefore, in an effort, they actually lost, and hence, they moved on to choose I sell infant formula to the third world countries. However, it is actually based on the wide note which is known under the water sources in several countries that get contaminated and are not boiled prior to their use.
I would like to mention that this has a tendency to focus on the decline of the opportunities to sell the product based in third-world countries. Despite the high returns, these are derived from the market within the sense of the opportunities that are created to develop the nation where water is clean and it is mainly used for breastfeeding purposes that pose danger to all the babies. Therefore, the far-reaching based on the stiff decisions in order to maintain the reputation to learn globally to save lives rather than saving lives based on unscrupulous profits.
Therefore, the main aspect of the ethical decision plays a role that is based on the decision to learn about the facts based on the normal saving lives than making profits. Therefore, this is based on the sensitivity of the toddlers and the infants to note the dietary management, based on the aspect to learn about the death cause within a particular time. Alternatively, this venture is later initiated for the third world nations, which mainly prevail on the babies, so that they can learn the depth of the babies. Thus, proper training and the health teaching system are required to be given to the manufacturer of the infants’ formulas to develop their dietary management that is offered by the company, so the mothers can use safe clean water while making an application of the powder-based infant baby formula. Thus, I would want to suggest the company that is required to accept the opportunities keep in mind the education based on the customer that brings behavioral change based on the customer use of bottled water, or boiled water in order feed the babies. However, the company mainly bears the extra cost based on the cost of advertisement that can educate the customers, to bring profits. In the long run, I would like to mention that in the case of the third-world countries that is a major source of demand for the company. Thus, this is not for education based on the customers and to learn about the death because of the baby food, as they are not a loss of the customer within the market based on the legal issue. Therefore, spending an advertisement in the short-run, they are educating the customer which is crucially important based on the means of less profit or there is no profit in the initial phase.