executive manager of a Western multinational corporation, with the objective of
ID: 1120080 • Letter: E
Question
executive manager of a Western multinational corporation, with the objective of raising the value of stocks for investors, moves to one of the African countries to produce a specific fertilizer product. The product is necessary to increase agricultural crops, but at the same time is known to be toxic to the environment and hazardous for human health. However, the value of the stock is dramatically increasing and the output in agriculture has increased drastically from last year. This also means, stockholders are happy with their investment and the farmers are happy for harvesting high yield crops.
Argue why the decision is unstainable considering its long-term effect on the environment, society and the bottom-line itself
Explanation / Answer
The toxic product can be injurious to human health and to environment as when this product is mixed with the soil, it contaminates the earth. Now if this toxic substance penetrates deep down below the ground, it can toxify the ground water leading to water borne diseases as well.
Now, continued use of this product may be fruitful in the short run as it will increase the agricultural crops leading to the increase in the value of stocks but this will have a dramatic implication in the long run.
More and more investment will be done on this product. But as time progresses, the health effects of this product will start becoming visible which will lead to a scientific enquiry and thus the effects of this toxic product will be uncovered. This will lead to government banning the product and thus the whole investments made on this product will be in vain and the stocks will crash dramatically.
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