Case 1: XYZ, Corporation is a Delaware corporation. One of its shareholders, Mr. Busybody, a U.S. citizen, while on vacation in Bangladesh, decided to check on his investment with XYZ and visit one of the many manufacturing facilities that XYZ has in Bangladesh. Mr. Busybody was shocked to discover when he entered one of the facilities that it was full of children between the ages of 6 and 8 years old. These children were sewing the garments that XYZ manufactures. It is not illegal to employ children to work in factories in Bangladesh.

 The children are from an orphanage and the orphanage is paid by XYZ Corporation for each child at the rate of $0.25 per hour per child. XYZ imports the garments and sells them at Walmart. XYZ issues dividends to its shareholders on a quarterly basis. XYZ has declared a dividend each quarter for the last five years.   

The value of Mr. Busybody’s stock in XYZ has continued to increase despite the downturn in the economy. Should Mr. Busybody keep his stock in XYZ? Should he keep the stock and use his influence as a stockholder to get XYZ to hire adults at its facilities in Bangladesh? What should XYZ do? What should Walmart do?

Answer rating: 100% (QA)

Should Mr Busybody keep his stock in XYZ From a financial standpoint yes Mr Busybody should stay inv... View the full answer