Business Essentials (12th Edition) (What's New in Intro to Business)
Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 2, Problem 2.24C
Summary Introduction

Case summary:

Company DC is taking fair-trade cocoa to the next level. The company returns a share of their profit to the farmers present in their supply chain. The largest shareholder group of Company DC along with fair price receive dividends from the profits obtained through the sale of chocolate.

To explain: If Person X pays attention to fair-trade products in their own purchasing power and if the person will be willing to pay more for producing the ingredients.

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Suppose your city is debating a change in policy from illegal use to legalizing recreational use of marijuana and cannabis products. Your local officials ask you to identify the appropriate aspects required to perform a cost- benefit analysis of this policy change. Using the principles of cost-benefit analysis, your local officials need help in identifying and understanding the benefits to consumers, the benefits to producers, total costs to consumers, total costs to producers, total costs from possible externalities, opportunity costs, incommensurable effects and intangible effects. For simplicity, dynamic time effects, which involve discount rates, are ignored. Following the principles of cost-benefit analysis, are the possible positive health effects (a positive externality) accounted for in cost-benefit analyses? O No. The health effects do not factor into cost-benefit analysis. O Yes. The health effects should be estimated but are a transfer and thus ultimately do not count…
(Guideline: Write about any other three suitable CSR activities which can be conducted by the companies you selected. Also write, what will be the benefit of your proposed CSR to the companies and public)
What is the best way for companies to find a balance between profit and social responsibility?
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