Question
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
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?
B) Are the presidents motives and actions ethical?
C) Can Jobe shield itself against losses of Windsor Inc.?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started