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W6

access_timeAugust 27, 2020
perm_identity Posted by Alex Tutor
folder_open Solved Questions

Company A was founded as an online marketplace for fair-trade goods, which are goods for which an above-market price is offered to growers, bypassing the usual supply chain, and allowing subsistence farmers to receive that above-market price for their products and hopefully lift them from poverty.  In addition to the above-market price, these growers were given shares in the company and the power to vote for members of the board.  Thereafter, Company A was offered a substantial investment by an investor (roughly 83 times the value of the average investment by outside investors) in exchange for a guaranteed 10% guaranteed cumulative annual dividend for that investor as opposed to the existing 5% average non-cumulative payout for other investors.  The investor also asked for a guaranteed seat on the board.  Discuss the ethical issues (pro and con) such an offer would give rise to.  Should Company A agree to that offer?

3 paragraph –  no  copy, turnintin

use only 2 references.

 

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