Massive Dynamics is a mining company. The company has come across investment opportunities in a corrupt country. It is planning to invest in that country using its excess cash. Historically, investment opportunities in that country have not been very profitable. However, the management of the company can gain a lot of private benefit from the contract. The management has paid bribes to senior government officials in that country to win a $1 billion contract. Massive Dynamics has been previously involved in these types of activities. The company is under investigation in its home country for violating principles of business ethics relating to its operations. Shareholders of this company are not happy with the management. In your opinion what changes can managers of Massive Dynamics make to gain shareholders' trust? Explain clearly.

Massive Dynamics is a mining company. The company has come across investment opportunities in a corrupt country. It is planning to invest in that country using its excess cash. Historically, investment opportunities in that country have not been very profitable. However, the management of the company can gain a lot of private benefit from the contract. The management has paid bribes to senior government officials in that country to win a $1 billion contract. Massive Dynamics has been previously involved in these types of activities. The company is under investigation in its home country for violating principles of business ethics relating to its operations. Shareholders of this company are not happy with the management. In your opinion what changes can managers of Massive Dynamics make to gain shareholders' trust? Explain clearly.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Massive Dynamics is a mining company. The company has come across investment opportunities
in a corrupt country. It is planning to invest in that country using its excess cash. Historically,
investment opportunities in that country have not been very profitable. However, the
management of the company can gain a lot of private benefit from the contract. The management
has paid bribes to senior government officials in that country to win a $1 billion contract. Massive
Dynamics has been previously involved in these types of activities. The company is under
investigation in its home country for violating principles of business ethics relating to its
operations. Shareholders of this company are not happy with the management. In your opinion
what changes can managers of Massive Dynamics make to gain shareholders' trust? Explain
clearly.

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