The Best and Ethical Solution for Investing in Hydrofruit Inc.

Problem Statement

Megabank plans to invest in Hydrofruit Inc. to earn a 35 percent return. However, Judson Dillion, the future director of Hydrofruit, has concerns about hiring illegal immigrants in the tomato firm. This issue could potentially ruin the company’s reputation. Therefore, Dillion must decide whether to invest in the proposed $65 million equity investment irrespective of the legalities issue and the evaluation as well as the hiring of illegal employees. Nevertheless, Hydrofruit needs a workforce to harvest tomatoes; thus, it must tread carefully not to violate the immigration laws. In addition, the management must avoid discrimination lawsuits that could emanate from declining employees of a given race in the process of evading illegal immigrants.

Facts

  • Jobs are seasonal because summer yields more crops than winter leading to an increase in prices and an annual workforce fluctuation of 500 to 900 employees;
  • The business is risky because of the possibility of hiring illegal workers;

The location of the tomato firm is close to the Mexican border (the Sonoran Desert) where 40 percent of the total one million immigrants live…

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