Answer: The case study is about the ethical dilemma that Rajesh faces in deciding whether or not to recommend an investment that could be profitable for the firm but potentially have negative environmental, community, and labor implications.

Stakeholders involved in the case study:

• The large financial firm: This firm is invested in the potential success of the venture and will benefit financially from the investment.
• The large corporation: This corporation is proposing the investment and could benefit financially from the venture if it is successful.
• The board of directors: These individuals will make the ultimate decision as to whether or not to invest in the venture.
• The local community: This community could be affected by the venture in either a positive or negative manner.

Rajesh should consider the following ethical considerations when making his recommendation:

• Environmental impacts vs Economic benefits: He should assess whether the investment will have a negative environmental impact, such as increased air and water pollution, or destruction of natural resources, disruption of local wildlife and ecosystems and other long-term impact like climate change.
• Firm's Reputation vs. Local Community Impact: The success of the investment could enhance the firm's reputation, attracting more clients, investors, and business opportunities. But the project may have a direct impact on the local community, displacement of local workers, decreased access to resources, and disruption of traditional ways of life should be considered.
• Legal and regulatory implications vs success of the project: He should assess whether it would be compliant with applicable laws and regulations, and whether it would have any potential legal or regulatory ramifications. He should also see that the project is successful by upholding accountability and transparency.
• Long term Benefit vs short term benefits: The investment may offer significant short-term financial benefits like immediate profits or increased market share. But the long-term implications may be on the firm's sustainability and the well-being of the employees, customers, and the broader community.

Measures Rajesh should recommend to the board of directors to mitigate the potential negative implications:

1. A) Financial recommendations for firm:

• Compensation to the local community and workers for lost wages, relocation costs, and any other costs associated with the venture.
• Invest in the local community, through job training and placement programs.
• Develop a plan to help local businesses that may be affected by the investment.
• Set up an independent monitoring system to track the progress of the project.
• Develop a transparent reporting system for the local community.

1. B)   Non-financial recommendations for firm: 

• Conduct an environmental impact assessment (EIA) involving the local communities.
• Ensure implementing strict environmental standards, monitoring the impact on the local environment, and investing in renewable energy sources.
• Engage with the local community to ensure that their concerns are heard and addressed.
• Commitment to regular monitoring of the venture's impacts and a process for responding to any negative consequences that may arise.
• Develop an environmental protection plan to minimize the environmental impact of the venture.

By implementing these measures, Rajesh can ensure that the firm's decision to invest in the venture is ethically sound and in line with the firm's values.

Rajesh must consider the potential ethical implications of his decision, including potential financial return and impact on individuals, the environment, local communities, and the public perception of his organization. He should also consider any long-term implications and strategies to mitigate any potential negative impacts.