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Business, 12.12.2019 23:31 leannehounschell

Clean earth, inc. is a delaware benefit corporation that produces cleaning products using 100 percent recycled, organic, and sustainably produced materials. several years ago, it became a socially conscious organization and has fulfilled all of the reporting requirements since then. clean earth executives have decided to purchase its paper product supplies (such as napkins and toilet paper) from a new supplier, who plants two trees for every tree it uses. since this supplier charges five times more than clean earth's previous supplier, profits from clean earth's paper products are expected to be cut in half. if a clean earth shareholder challenges the decision as being unfair to shareholders how will a court likely rule?

a. for the shareholder, because the cut in profits will unreasonably reduce shareholders' returns.
b. for the shareholder, because, although social enterprise managers may consider environmental factors when making decisions, they may not place them above shareholders' interests.
c. against the shareholder, because social enterprise managers are required to place the interests of the environment before the interests of stakeholders and shareholders.
d. against the shareholders, if it finds that clean earth has acted in a "responsible and sustainable manner."

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