You are CEO of SUNSUP Corporation, a major innovator and manufacturer of solar panels. As part...

You are CEO of SUNSUP Corporation, a major innovator and manufacturer of solar panels. As part of SUNSUPS’s commitment to social responsibility, you initiated and led, between 2013 and 2018, the financing of startup solar panel companies in 3rd world countries (with loans forgiven if the startup did not succeed).

By the end of 2018, about 2/3s of the startups have failed, but the other 1/3 appear to be commercially viable. Your Chief Financial Officer has advised you that, whatever its successes, this goodwill program has cut your company’s profit margin by about 15%. What are your ethical responsibilities under these circumstances?

Expert Solution

The ethical responsibilities goes not only to preserve the profit margin of the company to become a responsible company towards its investors, owners and employees, but also to be committed to its plan of financing these startups unless we come up with the new plans. So, there is a trade off between preserving profit margin and supporting startups. Hence, in the given scenario, I would come up with following initiatives to execute my ethical responsibilities.

1. To come up with new plan that will ask all the startups to show their work strategy in the next 1 - 2 years and the past performance records with financials. It will make commercially viable company as well as a failed company to be given an opportunity to claim for the support. Besides, it will bring disclosure and information that can make our support to them as ethical. Here, the company that is becoming commercially viable, will be encouraged to show good performance and become strategic partners. It is ethical approach as per deontological approach where the intention of the action is morally high in nature.

2. The company will make the support initiative to be a strategic one and will allocate funds for it, so that it does not affect the profit margin in the future. It will continue to increase and the level of support to the startups. It will strengthen the commitment towards investors as well as towards the startups.

Above initiatives will help implement ethical responsibilities in an organized way to take care of the different stakeholders.

Rahul Sunny answered 10 months ago

Solar Power Ltd., a small Kumasi –based manufacturer and distributor of solar energy panels, was in...

Solar Power Ltd., a small Kumasi –based manufacturer and distributor of solar energy panels, was in its first year of operation. The company was conceived and controlled by two retired executives. Nana Darkwa, an engineer by profession, developed the basic patent for the solar panels. He lacked adequate liquid resources to finance the venture, although he did control a fair amount of wealth. Yaw Manu’s chosen field of endeavor was real estate. He, too, possessed few pied real property including...

Flat Solar Panels: A field of flat solar panels angled to best catch the incident solar...

Flat Solar Panels: A field of flat solar panels angled to best catch the incident solar radiation is expected to yield a power of 2.6 MW and will cost $87 million initially with first-year operating costs of $2 million, growing 250,000 annually. It will produce electricity worth $6.9 million the first year; this revenue stream is expected to increase at a simple interest rate of 12%, every year from there on (that is, 112% of 6.9 Mil in year 2,...

The government decides to subsidize the solar panels industry to encourage the adoption of solar panels...

The government decides to subsidize the solar panels industry to encourage the adoption of solar panels and enhance its competitiveness. They decide to subsidize the producers by $8 for every unit of solar panel they produce. The demand and supply curves are Qd = 103 − 7P, Qs = 3P. As a result of the subsidy, buyers will pay $[Answer] less per unit. At the same time, the sellers will receive $[Answer] more per unit. Given the above information, we...

Mechanized solar panels: A field of mechanized solar panels with motors that allow panel frame motion...

Mechanized solar panels: A field of mechanized solar panels with motors that allow panel frame motion so that the panel themselves will be normal to incident radiation any time of the day. This design is expected to yield a power of 3.1 MW and will cost $101 million initially with first-year operating costs of $2.3 million, growing 300,000 annually. It will produce electricity worth $8.8 million the first year; this revenue stream is expected to increase at a simple interest...

QUESTION 4 (30) 4.1 Lonewolf Ltd is the sole manufacturer and supplier of solar panels in...

QUESTION 4 (30) 4.1 Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that price. Is this correct? Motivate your answer. (7) 4.2 Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run. (16) 4.3...

An Australian Solar Panel manufacturer exports panels to India at a price of 5,000 Indian Rupee...

An Australian Solar Panel manufacturer exports panels to India at a price of 5,000 Indian Rupee (INR). Currently the exchange rate is AUD/INR50.11. The forecast rate of inflation in Australia is 2.8% per year and 3.9% per year in India. Use this data to answer the following questions on exchange rate pass-through. 1. What was the export price for the solar panel at the beginning of the year expressed in Australian dollars? 2. Assuming purchasing power parity holds, what should...

In this scenario, imagine that you are the financial manager of a major corporation. The CEO...

In this scenario, imagine that you are the financial manager of a major corporation. The CEO has asked you to explain the reasons to consider different types of business combinations, and ways to structure them (joint ventures, mergers, strategic alliances, and more). You, as the financial manager, should compose an email with this explanation. Assume the CEO is not a finance expert. In your email to the CEO, address the following points: 1. Explain the reasons to consider different types...

can you post white house solar panels passage? this is for nursing

Space-based solar is gaining interest. Arrays of solar panels are placed in orbit to capture solar...

Space-based solar is gaining interest. Arrays of solar panels are placed in orbit to capture solar energy. The energy is then transmitted wirelessly to earth. The primary advantage being that a space-based photovoltaic array receives the full AM0 solar radiation for potentially 24 hours per day. What wireless power transmission efficiency is necessary to compete with an equivalent PV array in Honolulu on 23 March 2018 from both a power and an energy perspective?

A university spent $1.6 million to install solar panels atop a parking garage. These panels will...

A university spent $1.6 million to install solar panels atop a parking garage. These panels will have a capacity of 800 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 30%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1...

Question