Question

Bayer AG and Dupont Dow are both international chemical manufacturers. Along with a few other companies, they were indicted as participants in a price fixing scheme that artificially and unfairly drove up the costs of certain chemicals. They would be most likely to use the ______ model to justify their actions.

1) Economic
2) Stakeholder
3) Shareholder
4) Accounting
5) Fiscal

Answer 1

Bayer AG and Dupont Dow would likely use the Shareholder model to justify their participation in a price fixing scheme, as it focuses on maximizing shareholder value, which has historically led to legal repercussions.

Step-by-step explanation:

Bayer AG and Dupont Dow, like the international cartel of vitamin manufacturers prosecuted in the late 1990s, including Hoffman-La Roche, BASF, and Rhone-Poulenc, would most likely use the Shareholder model to justify their actions in a price fixing scheme. The Shareholder model emphasizes the maximization of shareholder value as the primary objective of a company, which can entail engaging in aggressive strategies to maximize profits, even at the expense of legal boundaries and market fairness. Such behavior, as seen in historic cases, usually leads to antitrust prosecutions and significant penalties.