Why Jim Won't Give KiraFlour the TFC Loan

613 Words2 Pages

A business, as John Mackey argued, has an obligation to serve the community, therefore, if an investment has more harms than benefits, it should not be made. The traces of E-coli found in KiraFlour’s products could be a form of corruption that the TCA, whose certification isn’t needed, uses to receive bribes. However, if E-coli is in their products, then the result would be detrimental to society, KiraFlour and AgreFund. Although not found in the due diligence process, the TFC found that KiraFlour was selling unlicensed products. While, corruption could again be behind this attack on KiraFlour, the consequences would be destructive if the report were true. Therefore, there is no way the loan can be given. By denying the loan, Jim is protecting the Tanzanians and AgreFund, and announcing that corruption has no place in business. Jim’s responsibility in Tanzania is to invest for financial, social and environmental value for each client. By giving KiraFlour the loan, Jim would be creating financial value for the company’s stakeholders, while creating social and environmental problems...

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