Business partner to jointly set up assembly plant

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Reference no: EM132087893

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.

Reference no: EM132087893

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