(Practice questions)

You are the head of the R&D Department of Toxic Chemicals Inc. Your department has just developed a new spray that kills the "killer bees" that are attacking the southwest part of the country and are expected to spead across the country,

The President of the company wants to get the spray to market fast to boost profits. He tells you that the product could be sold in several Central American countries where laws are more relaxed than in the US.

You strongly recommend futher testing before this spray goes to market anywhere. The further testing could uncover side effects the spray might have on other insects, birds, animals, plants and humans, You tell the president that the company could be sued from all sides if the spray had side effects that we didn't test for in our labs.

The President says that we can't wait an additional year for lab tests. We can avoid the law suits by setting up a wholly independent corporation to shield Toxic Chemicals, Inc. from such lawsuits. We can reap the benefits if the spray works and is safe and avoid losses from lawsuits if its a disaster. The following week, the President of Toxic Chemicals creates a new corporation, Friendly Sprays, Inc., sells the spray patent to the new company for $10, and directs that the spraying begin.

1. Who are the stakeholders?

2. What would you do as the head of R&D now that the President has set up the new company and begun spraying?