Arco, Inc. is a small company that installs and repairs home and commercial heating and air-conditioning units. It has 75 employees and recently started selling its stock to extended family, its employees, and friends. The company has never issued dividends to the stockholders. From its outset Arco has prided itself on being an ethical company, and it has a code of ethics that states “we are committed to setting an example in our use of renewable energy.” Arco has been very successful and is considering installing solar panels on its home office building at a substantial cost. The directors are concerned that the stockholders would rather receive a dividend than have company earnings spent on solar panels. The CEO has explained to the directors that Arco’s accountant has informed him that over a period of five years the cost of the installation will be recouped in Arco’s reduction of energy cost. He is convinced the company should start selling solar panels, and this new line of business would be helped by showing its customers how the solar panels work at Arco. At a stockholders’ meeting, you have been asked to comment on the project from business and ethical perspectives. Should the stockholders receive a dividend distribution before the panels are installed? It is ethical to use corporate earnings for environmental purposes before issuing dividends?