Global Business 3rd Edition by Mike Peng

Exercise 16

ON ETHICS: In a landmark case in 1919, Dodge v. Ford, the Michigan State Supreme Court determined whether or not Henry Ford could withhold dividends from the Dodge brothers (and other shareholders of the Ford Motor Company) to engage in what today would be called CSR activities. With a resounding "No," the court opined that "A business organization is organized and carried on primarily for the profits of the stockholders." If the court in your country were to decide on this case this year (or in 2019), what do you think would be the likely outcome?