Please read chapter 6 of the attached book. Louisiana Municipal Police Employees

Please read chapter 6 of the attached book.
Louisiana Municipal Police Employees’ Retirement System v. The Hershey Company
Chancery Court of Delaware, 2012 2012 WL 5359502
The Hershey Company is the largest producer of chocolate in North America, controlling 44.4 percent of the U.S. market in 2015. It sells Whoppers, Milk Duds, Reese’s Peanut Butter Cups, Hershey Kisses, and other chocolate products in some 70 countries around the world. But, as the following complaint makes clear, there’s a dark side to all of this sweetness.
The Louisiana Municipal Police Employees’ Retirement System (LMPERS) has long held shares of stock in The Hershey Company. In the fall of 2012, LMPERS demanded the right to inspect Hershey’s corporate books and the minutes of Board of Directors’ meetings. Its reason: to ascertain whether or not there was a basis for suing the Board for acting ultra vires (beyond its lawful powers) and in violation of its fiduciary duties to shareholders. The Directors refused to honor the demand, calling the plaintiff’s allegations “speculative.” Below are excerpts from the complaint filed by LMPERS asking the court to enforce its demand to inspect records.
Please read the opinion by Chancery Court of Delaware on pages 211 – 213 and answer the questions.
QUESTION 1
How do Hershey’s alleged wrongs harm the plaintiffs in this
case?
QUESTION 2
What evidence do the plaintiffs provide to support their
claim that they have a right to investigate the corporate records?
QUESTION 3
Plaintiffs allege that Hershey directors may have violated
their fiduciary duties. Explain what that means.
QUESTION 4
Hershey lobbied against a bill that would have required
“slave-free” labeling for cocoa products and instead signed the Protocol.
Consider Hershey’s actions from the various ethical perspectives described
in Chapter 1.
QUESTION 5
Hershey claimed it did not knowingly purchase from farms that
exploited child labor. (a) Should that matter in determining if Hershey
acted unethically? (b) How might they have violated the law that makes it
a crime to knowingly – or with reckless disregard for the facts – benefit
from a venture involving forced labor?
QUESTION 6
(a) What similarities do you see between the allegations in
the child labor complaint and this set of facts?
(b)
What obligation should a company have to investigate its suppliers in the
United States?

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