As for the media reports on possible child labor and substandard wages, let’s recall an old newspaper saying: “Never pick fights with anyone who buys ink by the barrel.” That is, as a CEO, I would not pick fights with the media, but to act promptly, discuss the issue with the CEO of Mitsamatsu, and correct the inaccurate news without casting blame.
There is no doubt that whichever the decision I make will ultimately effects the shareholders. However, it would beneficial in all aspects to join Mitsamatsu company if they are truly a legit corporation; it could also have a very negative effect if the accusation are true.
Joint venture with Mitsamatsu with profit shareholders if it is a legit company, but if indeed the accusation is true, it could compromise the U.S.-based corporation for the worse. I would first hold off on any commitments until all the details are on the table and there is clear evidence there are no illegal and/or immoral activities taking place. A meeting with the appropriate officials would definitely be the agenda and once clarifications are made, the appropriate decisions could be acted upon.
Not only the shareholders will be affected with the decision, it will also directly affect the employees of the U.S. corporation. Without clarification with evidence the employees would suffer anxiety and depression, also feel in a state of instability, because their future would depend on the final decision of the joint venture. If joint venture is legit and processed, it could mean more jobs and even expanded opportunities for advancement of position and pay for the current employees. But if joint venture goes through and indeed the accusations are true and the news hits the markets and the stocks, it could lead to a lot of loss in profits, which would in turn mean more cuts, and loss of jobs. In order to keep employees from going into panic mode and spreading rumors and decreasing productivity and increasing errors, I would set up a...
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