Reference no: EM132889986

To consider the best options available, Larissa flew to upstate New York to meet with government officials and potential new ingredient suppliers to learn about any restrictions and legislation obstacles in advance of potential geographic expansion, and potential product suppliers in the local area.

In a meeting with potential new suppliers the next day in New York, Larissa was offered (and accepted) to attend a professional basketball game in one of the potential supplier's corporate boxes (value of attending 1 event in a corporate box is about $7000 USD).

Meanwhile, Arjun completed more research on competition in both Canada and the United States. He learned that in northeast U.S., that competition is extremely intense. Many manufacturers were very focused on lowering costs, and in many cases, this meant lowering quality levels of product ingredients. Arjun believes that in order to compete in the northeast United States, Cool Spirits would have to lower its cost base. One idea that Arjun thought about is to purchase ingredients from lower cost providers with whom he has had contact in the past. These providers all are USDA Organic certified for the relevant ingredients, but there has been questions about sustainable harvesting practices with these providers.

a. Could the acceptance of attending a sports event in the potential new supplier (valued at $7000 USD) by Larissa be constituted as a conflict of interest?

Explain why / why not.

b. If Arjun decided to pursue a partnership with one of the new organic ingredient suppliers that do not have certified sustainable harvesting practices, provide a point of view on how this would align to the company's social responsibility stance

Explain why / why not