Subject category:
Ethics and Social Responsibility
Published by:
NACRA - North American Case Research Association
Length: 23 pages
Share a link:
https://casecent.re/p/143528
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Abstract
On June 29, 2007, eBay launched the online classifieds site www.Kijiji.com in the United States. eBay designed Kijiji to compete with www.craigslist.org, the most widely used online classifieds site in the United States. Interestingly enough, at the time of the Kijiji launch, eBay was a minority owner of craigslist with a 28.4 percent stake. eBay's decision to compete with craigslist triggered certain defensive measures previously taken by craigslist, and eBay sued to reverse those measures. In this case, students are placed in the role of the owners of craigslist, Inc and are asked to make the decision to either defend the suit or settleout of court. The decision is significant in that this lawsuit sets a standard for socially responsible companies and the duty of corporate directors to pursue shareholder wealth maximization, even at the expense of compromising a socially responsible mission.
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Abstract
On June 29, 2007, eBay launched the online classifieds site www.Kijiji.com in the United States. eBay designed Kijiji to compete with www.craigslist.org, the most widely used online classifieds site in the United States. Interestingly enough, at the time of the Kijiji launch, eBay was a minority owner of craigslist with a 28.4 percent stake. eBay's decision to compete with craigslist triggered certain defensive measures previously taken by craigslist, and eBay sued to reverse those measures. In this case, students are placed in the role of the owners of craigslist, Inc and are asked to make the decision to either defend the suit or settleout of court. The decision is significant in that this lawsuit sets a standard for socially responsible companies and the duty of corporate directors to pursue shareholder wealth maximization, even at the expense of compromising a socially responsible mission.