Chapter 11, Problem 11.9BYP

(a)

To determine

Ethics Case

The Research and Development (R&D) division of Corporation J developed a disinfectant chemical for killer bees that are attacking the Country M and the southern part of Country U. Since the president’s job is at stake due to decreasing sales and profits for the past couple of years, he is anxious to sell the chemical in the market.

However, the director of the R & D division is not in favor of the president’s decision. He strongly recommends to first test the chemical in the lab to know the side effects on other living beings. On the other hand, the president is not ready to wait any more for the lab test. He convinces the director and establishes a separately owned corporation to protect the corporation and the losses from any law suits if the chemical turned out to be a disaster. Thus, the corporation invests the patent amount of $10 for the chemical in the new corporation.

To state: the stakeholders in the situation.

(b)

To determine

To explain: whether the president’s motives and actions are ethical.

(c)

To determine

To explain: whether the Corporation J could shield itself against the losses of Incorporation W.