. The board of directors receives a proposal from a business partner to jointly
ID: 417784 • Letter: #
Question
. The board of directors receives a proposal from a business partner to jointly set up an assembly plant in a Third World country. This new plant will assemble final products with key components made by the company. Financial terms are attractive and the future marketing outlook is bright. There is just one problem. The Third World country is not a democracy, has a poor human rights record, neglects to protect its own environment, and does not safeguard workers’ rights. An investment placed by the company would boost this country’s economy and thus the political position of its current dictator. Should the company accept the proposal? Explain why.
Explanation / Answer
Manpower forms the base of any organizational setup. Under current circumstance, since human rights are are not protected, a few of the below events may occur more frequently-
1. Workers go on strike to demand their rights from the company, since their nation is not providing them the same.
2. The current dictator may demand compensation from the company at the expense of the disposable manpower and their rights.
3. Chances of an out roar for people's rights and against the dictatorship. Hence the company's operation may come to a stand still.
Hence the company shouldn't accept the proposal, because ther eis more loss than benefit.
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