Question
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
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?
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