Stakeholder Theory Discussion Board
Suppose you are the CEO of a large, U.S.-based corporation that manufactures electronics for the appliance industry. Your corporation is in the midst of joint venture negotiations with Mitsamatsu Ltd. in Asia. Mitsamatsu Ltd. is a very large electronics manufacturer with multiple plants in China, Taiwan, Thailand and Singapore. This joint venture could open up the Asian market for your corporation and would likely prove to be extremely profitable for both venture partners. It may also save or perhaps even expand U.S.-based jobs in your corporation in customer service, sales and marketing and engineering in order to design products that meet new requirements in a foreign market. In short, it looks like a win-win.
However, you have just received some worrying information about this proposed joint venture. Apparently there have been some media reports of possible child labor and payment of substandard wages in some of Mitsamatsu's factories. You are fully aware how critical this joint venture is to your corporation's shareholders and employees. However, you're afraid that, if your company goes ahead with the joint venture, there may be considerable criticism in the media.
As CEO, what should you do? Explain your reasoning. As you ponder your answer, consider the following:
What will be the effect of your decision on your shareholders?
What will be the effect of your decision on your employees here in the United States?
What will be the effect of your decision on the Mitsamatsu workers in Asia? Is there a trade-off between providing employment for citizens in a Third World nation vs. employment conditions that may not meet our U.S.-based standards?