During a monthly Lunch and Learn Seminar at TLG offices, all TLG business consultants are discussing various client cases. During the Discussion of GC’s new business, the group discusses the following question:
Whether GC should resell EPI cleaning products from its public place of business and over the internet, or whether the risk of potential product liability outweighs any potential profit from reselling the EPI products, and why.
Hypothetical Scenario: You are the CEO of Luck, Inc., a mid-size US home goods manufacturing corporation that earned profits of $8 million in 2017, an increase of 20% over 2016 profits. $4 million of the increased profits will be invested in the company to cover increased operating costs for Luck in 2018. You must decide what to do with the remaining $4 million and make a recommendation to the Board of Directors. You have 2 choices, and must choose one option below; the $4 million dollars cannot be divided between both options.
- use the increased profits to develop a new and comprehensive corporate social responsibility (CSR) program, or
- invest the increased profits in new research and development for the company
A. Which option would you recommend to the Board and why? Explain, justify your answer comprehensively.
B. Discuss the legal implications, if any, of establishing a “green” CSR program. Explain, justify your answer comprehensively.
Sample Solution
