Question
Please let me know if I answered these questions correctly and explain why Im correct. And if Im wrong please tell me how to improve
Please let me know if I answered these questions correctly and explain why Im correct. And if Im wrong please tell me how to improve my answers. Thank you
The R&D division of Jobe Corp. has just developed a chemical for sterilizing the vicious Brazilian killer bees which are invading Mexico and the southern United States. The president of Jobe is anxious to get the chemical on the market because Jobe profits need a boostand his job is in jeopardy because of decreasing sales and profits. Jobe has an opportunity to sell this chemical in Central American countries, where the laws are much more relaxed than in the United States. The director of Jobes R&D division strongly recommends further research in the laboratory to test the side effects of this chemical on other insects, birds, animals, plants, and even humans. He cautions the president, We could be sued from all sides if the chemical has tragic side effects that we didnt even test for in the lab. The president answers, We cant wait an additional year for your lab tests. We can avoid losses from such lawsuits by establishing a separate wholly owned corporation to shield Jobe Corp. from such lawsuits. We cant lose any more than our investment in the new corporation, and well invest just the patent covering this chemical. Well reap the benefits if the chemical works and is safe, and avoid the losses from lawsuits if its a disaster. The following week, Jobe creates a new wholly owned corporation called Windsor Inc., sells the chemical patent to it for $10, and watches the spraying begin.
A) Who are the stakeholders in this situation?
The stakeholders in this situation are the employees of Jobe corporation who are advising against the decision, the stockholders, and the people in the countries where they are going to be spraying the chemicals.
B) Are the presidents motives and actions ethical?
The president's moves are not ethical. It is not ethical to make decisions to use products that have not been tested for safely and to shield company assets from liability as a result of his decision.
C) Can Jobe shield itself against losses of Windsor Inc.?
I don't believe that Jobe can be protected by the Windsor Inc because they originally paid for the patent for the chemical and sold it for $10 to a company they are attached to. It seems to me that the paper trail alone would show deviant unethical behavior. But is that enough to be legally held accountable for?
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