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DISCUSSION POST MUST BE 10+ SENTENCES AND THE PEER REVIEW MUST BE 7+ SENTENCES PLEASE USE YOUR OWN WORDS AND DO NOT COPY FROM OTHER SITES STAY ON TOPIC ,BE POSITIVE , AND DO NOT COMMENT ON GRAMMAR ERRORS. TALK DIRECTLY TO CLASSMATES IN PEER REVIEWS!!!

1) DISCUSSION QUESTION

The responsibility of the directors of a corporation is to provide a return to shareholders on their financial investment in the corporation . . . in other words, shareholders expect to make money on their investment. Corporations such as Facebook, Google, and Apple are financed through the sale of billions and billions of dollars in shares purchased by investors. Sometimes, however, the duty to maximize profits runs contrary to legal, but still questionable, business opportunities.

Assume that you’re the director of one of the corporations listed below and have been presented with the business opportunity described in the scenario. Would you advise the corporation to accept the opportunity? Make sure to fully explain your answer, considering both the financial return expected and any related ethical concerns.

• ToyCo has just been informed that it’s wooden trains produced in China contain lead paint and can no longer be sold in the United States. However, a distributor offers to negotiate a deal with a foreign company to sell the trains in a South American country that has no laws addressing the presence of lead paint in children’s toys.
• BabyHealth is seeing decreasing sales of its powdered infant formula in the United States due to more and more mothers choosing to breastfeed their babies. In an effort to offset these losses, BabyHealth chooses to sell their formula in third world countries. However, it is widely known that the water sources in these countries is often contaminated and not boiled prior to use.
• After producing 10 million versions of its new smartphone, PhoneLand discovers that due to a manufacturing oversight, 5 of the phones may catch fire if left in a car on a hot day. While the worst case financial impact from the phones catching fire is 10 million dollars in damages, recalling and repairing the phones will bankrupt the company.

2) PEER REVIEW #1 (FELICIA)

I choice the Toyco corporation, I would advice the corporation not to take this offer for the most obvious reason it is highly unethical it is putting children in danger no matter what country they sell them in. Limited liability would apply for the shareholders because they didn’t personally sell dangerous toys to children but the corporation would be 100% liable if any child was to get lead poisoning or worse from their product.

3) PEER REVIEW #2 (SHERICE)

Good Evening Professor Fleming and Class,

The scenario I chose is, Baby Health is seeing decreasing sales of it’s powdered infant formula in the United States due to more and more mothers choosing to breastfeed their babies. In an effort to offset these losses, Baby Health chooses to sell their formula in third world countries. However, it is widely known that the water sources in these countries is often contaminated and not boiled prior to use.

First breast-feeding contributes to poverty reduction because it is a natural behavior and a way of feeding infants that is affordable for everyone compared to infant formula feeding. Infant formula is expensive including the cost of utensils and sterilizing them. n As formula-fed babies have been found to become sick more often breast-fed ones, families also have to spend more for health care.

Second, sustainable development is essentially also about ecology. Optimal breast-feeding requires less energy compared to infant formula feeding, which is produced by factories. Unlike infant formula, breast milk feeding needs no water, bottle sterilization equipment, or fuel, and is thus ecofriendly. When a baby reaches 6 months, locally nutritious available and affordable foods should complement breast milk until the baby is 2 years or older. According to Dylan Walters, a health researcher with Canada’s University of Toronto, the cost of not breastfeeding in Southeast Asia nationally for children under the age of 3 was estimated to be US $2.4 billion. Infant formula marketing in Indonesia is considered aggressive inappropriate and some say unethical.

I wouldn’t adivse accepting to the opportunity in all third world countries, but if Southeast Asia is one of them I would definitely jump at the opportunity.