Scenario

You work for Hanson Enterprises, a U.S. based company, which has decided to partner with a company in another country for both economic and philanthropic reasons. Hanson Enterprises will be able to produce their products at a lower cost and can pass those savings onto their consumers all over the world. They have also included a provision in the contract with the partnering company that employees will receive a minimum wage based on U. S. state residency. The company will also provide day care, health insurance, and retirement benefits to the employees. Further, Hanson Enterprises advertised that it will be designating funds to improve the social conditions in the community where this facility is located. You are part of a team that has been sent over to the new facility to ensure all is in accord with the contract, but what you find are employees not receiving the benefits nor the minimum wages promised; in fact, employees are having to work seven days a week with no breaks in their shifts and there are a number of safety issues in plain sight; no funds have been used to improve the community; intellectual property rights are being infringed upon; and bribes are taking place among management and other businesses in the local area.

1. Explain if it is possible to sue for breach of contract, or if there are any contract remedies available.
2. What are the consequences if the corporate social responsibility (CSR) is not addressed?
3. What do you think is the best legal and ethical course of action for Hanson Enterprises to take, and why is it in the best interest of the company?