Question
Tommy company 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
Tommy company 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, Tommy Company was offered asubstantial 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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