Reference no: EM131657034

Question: You are a director of Sea Gold Canning Company. Sea Gold's business is canning tuna and salmon for sale to consumers. Its annual revenue is $575,000,000, 75 percent from tuna sales. Sea Gold buys tuna from independent fishermen whose fishing methods do not always permit them to determine whether they are catching tuna or dolphins. The result is that many dolphins are killed. The Society to Protect All Sea Mammals (SPASM) has discovered that fishermen selling to Sea Gold have been killing dolphins and has asked Sea Gold to demand that the fishermen not kill dolphins and to refuse to buy tuna from fishermen who kill dolphins. If Sea Gold does not comply with SPASM's request, SPASM will call a press conference to urge consumers to stop buying Sea Gold tuna and salmon. For fishermen to change their fishing methods would result in Sea Gold paying an additional $20,000,000 each year for tuna. If Sea Gold passes the cost on to consumers, the price of tuna will increase to $2.05 per can from the present $1.95 per can. Since Sea Gold tuna now sells for the same price as other tuna brands, Sea Gold expects its sales to fall by 10 percent if it increases the price of its tuna. What would a rights theorist do? What would you do as a SeaGold director?