International Joint Venture Stakeholders
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 temporary department to address the employees needs and to answer all their questions. Also a department relaying up to date information to employees and shareholders would keep everyone at easy and abreast with all the new developments so they do not waste time looking for untrue information elsewhere. The decision could also affect employees in Asia. Joint venture could also mean more jobs in Asia and maybe even higher pay for them and more positions available.
If joint venture does not go through and accusation are true, it may mean a lot of employees in that company may end up losing their jobs as well. Even though they may have not been being paid enough; they were still making money to make ends meet and that cut could be detrimental to the employees there as well as their families. They may even get reimbursed for loss or unfair pay in the past if appropriate legal actions can be taken, but some employees live day to day for just even food in outside countries and the delay of income may also affect them negatively.
If the joint venture is made there may be opportunities for employees from the US working in ASIA but under unstandardized conditions, which may not be at the best interest of the employees. True, sending employees to Asia will open up more job positions, but it will be very risky if there are no standards set there. A good corporation at the end of the day wants what is best for their shareholders and employees.