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Corporate Social Responsibility Issues
Corporate responsibility in matters of social significance has taken a very public position over the past few years, due in large part to the major scandals and corruption related to Enron and other corporations. Two issues regarding corporate social responsibility will be highlighted in this paper, including corporate responsibility and e-commerce, and corporate responsibility vis-a-vis Internet Communications.
Corporate Responsibility Regarding Internet Communication
Is it ethical for an American corporation with a global reach to participate in censorship? That is the question that dogged the search and media giant Google recently. An article in the Journal of Internet Law (Cannici, 2009) points out that, as background to this problem, there has been, starting in 2006, controversy when U.S. technology firms acquiesce to the demands of foreign dictatorships. In fact there was outrage on an international level when Yahoo, an important and influential media company in the U.S.,…… [Read More]
A human rights organization would vehemently disagree with the self-interested shareholder supporters of sweatshops and state that merely because workers are desperate and are willing to accept lower wages is no reason for Nike to take advantage of such desperation. Nike keeps wages low, rather than driving them up in the context of the local economy. For only a few pennies more, Nike could pay the workers a much fairer wage, and if American consumers were only willing to pay a bit more, the overall economic health of the developing world might be improved. Also, by using the developed world as a source of cheap labor, no local industry and entrepreneurship is stimulated -- local industries cannot compete against Nike, and Nike essentially uses the developing nation as a colonial outpost, rather than makes a contribution to the nation's economic progress by building its infrastructure like a local company might…… [Read More]
Corporate Responsibility and Marketing Strategies- Apple
One of the more popular marketing strategies today that is still relatively new is the enhancing of societal influence for good. Corporations essentially address societal and environmental challenges in order to increase their performance. This strategy has a lot of names but is more commonly known as Corporate Responsibility (CR) or Corporate Social Responsibility (CSR) (David & Sanchez-Hernandez, 2010).
y taking responsibility for its actions, a company is showing their goodwill towards a community and the people that live in it. Hopefully CSR provides an inspirational effect and boosts a positive effect around them. It is also a type of check for a company, a sort of self-regulation by which corporations make sure that they are in fact in compliance with the law, both moral and actual law (Michael, 2013). Apple Corporation is one of the largest and fastest growing businesses that have come…… [Read More]
hypothetical firm -- Pharmacare -- and address the issues of corporate responsibility and ethics.
Background Information on Case
New Jersey-based company, Pharmacare (We CARE about YOUR health®) counts among the leading pharmaceutical firms across the globe. It is reputed for being an ethical, well-managed and caring corporation that manufactures superior-quality products aimed at saving the lives of millions and enhancing the QOL (quality of life) of millions of other people. Its offering constitutes discounted and free medicines to people with low income. Furthermore, the company has a charity sponsoring scholarships and health education programs. Pharmacare's Chief Executive is a Phrma (Pharmaceutical Research and Manufacturers of America) board member (Background Information). A short while ago, the organization commenced a novel program "We CARE about YOUR world®" in which it vows to adopt green practices such as recycling and packaging changes to demonstrate its responsibility to safeguard the environment. This step has…… [Read More]
social corporate responsibility?
The source of conflict
CS with profitability
Opposing Friedman: The view of others
In the article "the social responsibility of business is to increase its profits" by Milton Friedman, he takes the position that various corporations can never be socially responsible. He believes that it's only the people in the company who have responsibilities. Friedman (1970) suggests that the concept of social responsibility should be taken by corporate executives of various businesses but not by businesses themselves. This is because it is the corporate executive's responsibility to conduct business and steer the business to profitability. The corporate executive's ethical values and those of the corporation owners should interact in a way that creates value in the corporation. They could be divergent but should be geared towards the profitability of the corporation. This paper is a critique of the article. The paper is based on a divergent view…… [Read More]
Stakeholder Approach to Corporate Responsibility
This essay examines the question of whether adopting a stakeholder approach is a sufficient means of assuring that corporations meet their moral responsibilities due society. The essay includes a survey of the literature on the subject.
Any discussion of the effectiveness of stakeholder theory must address who and what are considered stakeholders. R. Edward Freeman (1984) defines stakeholders as "any group or individual who can affect or is affected by the achievement of the organization's objectives." Clarkson (1994) provides a narrower definition, based on the stakeholder's status as voluntary or involuntary risk-bearer: "Voluntary stakeholders bear some form of risk as a result of having invested some form of capital, human or financial, something of value, in a firm. Involuntary stakeholders are placed at risk as a result of a form's activities. But without the element of risk there is no stake." Clearly this position has…… [Read More]
By "lifting all boats" and extending the concept of being "our brother's keeper" we begin, as a society, to address basic human rights worldwide.
Question #2: hat role should governments play in regulating commerce to ensure that the rights of people and the environment are sustained? Economist Daniel Litvin has written an article in the journal Foreign Policy ("Raising Human Rights Standards in the Private Sector") worthy of close attention. In the piece he claims the UN's Compact - and the UN's "Human Rights Norms for Businesses" - fail to set "reasonable and well-defined limits" or a "code of conduct" on corporations' responsibilities in the global workplace.
And so, what does he believe governments should do - what role should they play? In the first place, Litvin believes that "many human rights controversies" that involve companies involved in globalization can be attributed to "the lack of a clear dividing line…… [Read More]
At some institutions, loans of this type were actually called "liar loans" by brokers, a reference to the obvious fudging of information they represented (Markels 2007).
A substantial portion (if not a large majority) of new home purchases during that time period involved a fraudulent practice of dishonestly inflating the income and financial health of prospective purchasers. In many instances, the real estate brokers and mortgage brokers precipitated this type of falsification of credit worthiness to facilitate high-commission-generating transactions. They stood to profit without any corresponding risk by virtue of the fact that any risk of default on the initial mortgage obligation would be shifted to other lenders and to investors in stocks connected to the value of mortgage securities on Wall Street (Lowenstein 2007). Even worse, during the process of loan negotiation, many homeowners were encouraged to inflate the appraised value of the property for the purposes of maximizing…… [Read More]
Corporate citizenship and public relations: The importance and interactivity of social responsibility issues on corporate websites," is a study of the importance corporations give to social issues through an examination of various corporate websites. Because the Internet has become the public relations tool of choice for many corporations, the authors' study focused on the ability to present their interest in social responsibility through their websites as well as the ability of visitors to interact. The inclusion of the Global eporting Initiative as the basis of their study both helps to support their conclusions but also provides support against them. It is created by the top scientists in the world but they also happen to openly advocate for environmental concerns instead of corporate ones. But the inclusion of some of the top corporations on the Spanish Stock Market helps to support the legitimacy of the study.
Unit 3 Journal
My personal…… [Read More]
PharmaCARE -- Case Review
There are numerous stakeholders and stakeholder groups that are presented in this case. The stakeholders can be thought of in two different primary groups to make the first set of distinctions, internal and external groups.
The management team
CompCARE and PharmaCARE Investors
Colberian Citizens and orkers
The Drugs Patients
Employees, Management, and Investors at ellco
Society in General
PharmaCARE's Unethical Treatment of the Colberia's
PharmaCARE's received support from the Colberia's in many forms, yet they compensated the Coberia's with nearly nothing and even worse caused ecological damage to their communities. The first way in which the Colberia's supported the PharmaCARE Corporation is through their sharing of intellectual property that had been passed down their ancestral linages for an untold number of years. The "healers" had accumulated generations of ancient tidbits that were undoubtedly accumulated through trial and error…… [Read More]
Corporate Social esponsibility and Environmental Ethics
Abstract/Introduction -- No one can argue that the international business community is becoming more and more complex as a result of globalism. In turn, this complexity is driven by an increasing understanding of sustainability, going "green," and bringing ethical and moral philosophy into the business community. British Telecom, for instance, noted in 2007 that it had reduced its carbon footprint by 60% since 1996, setting itself a target of 80% reductions by 2016 (Hawser, 2007). Francois Barrault, CEO, BT Global Services, said that by supporting sustainability his company hoped not only to reduce its carbon footprint but also to attract younger people who prefer to work for environmentally and socially responsible companies. He didn't always think that way, though. Barrault said that when he first met former U.S. vice president and environmental activist Al Gore, who showed him pictures of icecaps melting, he thought…… [Read More]
Additionally, it has been observed that whenever companies implement strategies of CS, they do this not out of individual choice and desire, but as a result of imposed legislations. "All of these decisions are made under the mandatory legal rules embodied in employment and labor law, workplace safety law, environmental law, consumer protection law, and pension law. Such rules, because they often apply to all businesses, are not susceptible to easy evasion through choice of form. As a result, those charged with governing a corporation find their decision tree considerably trimmed and their discretion decidedly diminished by mandatory legal rules enacted in the name of protecting stakeholders" (Winkler, 2005). In other words, the modern day evolutions of corporate social responsibility "caution against a rush to declare the ultimate triumph of shareholder primacy" (Winkler, 2005).
As a direct result of this changing legislation, more companies have commenced corporate social responsibility programs.…… [Read More]
"hen Congress returned in 1934 to complete the federal disclosure tapestry, it created express private causes of action for misleading reports filed with the Securities and Exchange Commission (SEC) as part of the newly enacted continuous disclosure requirements, (3) provided private recoveries for market manipulation, (4) and authorized suits on behalf of reporting companies for short-swing profits garnered by certain insiders (Cox, Thomas, and Kiku, 2003)."
The creation of the SEC as a government body for oversight arose out a recognition by the courts that private action was not enough to protect investors and consumers from the materially misleading representations of corporate America (Cox, Thomas, and Kiku, 2003). Since its creation, however, the numerous laws and regulations that have come to frame the world of corporate governance have exceeded the limits of manageable governance. By the time the SEC has identified a problem, pursued investigation of the corporate representations of…… [Read More]
Both proposals were consequently amended and eventually accepted by the SEC.
The audit committee makes sure that the books aren't being cooked and that shareholders are properly informed of the financial status of the firm. Characteristically, the audit committee advocates the CPA firm that will audit the company's books, appraises the activities of the company's independent accountants and internal auditors, and reviews the company's internal control systems and its accounting and financial reporting requirements and practices. The compensation committee usually does the following: (1) recommends the selection of the CEO, (2) reviews and approves the appointment of officers who report directly to the CEO, (3) reviews and approves the compensation of the CEO and the managers reporting to the CEO, and (4) administers the stock compensation and other incentive plans. The suggested committee establishes experience for potential directors (Lunnie, 2007; pg. 90). It also puts collectively a list of candidates…… [Read More]
Corporate Social and Environmental eporting
Companies have presented investigations about their motivation towards voluntarily social and environmental as insolvent. This paper argues in agreement with Adam's view that the goal of CS reporting is to promote credibility and corporate image of stakeholders operating in a particular industry. Whereas companies must focus their efforts on enhancing their profitability, they should also ensure that the welfare of other stakeholders is protected.
Previous literature offers a revelation on various competing theories based on why companies make voluntarily report and engagements in corporate social responsibility. The major perspectives considered are within the scope of application include accountability and image promotion. Many studies hold consequential evidence towards accountability to shareholders making it difficult for organizations to distinguish relevance from accountability based on continued practice. The absence of actual legitimacy crises makes it hard to identify voluntarily reporting as a proactive measure in preventing future crises…… [Read More]
Global corporations are often difficult to control because they operate in various countries throughout the world. As such actions that may be illegal in some countries are perfectly legal in others. Furthermore law enforcement officials and governments do not have the power to enforce laws that are outside of their jurisdictions. These issues call into question the effectiveness mechanisms that exist to control global corporate conduct. The purpose of this discussion is to Assess the effectiveness of various mechanisms that exist to control global corporate conduct and recommend a mechanism that I believe is the most effective.
Survey of Mechanisms and their Advantages/Disadvantages
Private regulations employ civil regulations to compel transnational corporations to operate according to a certain set of standards. According to the "defining feature of civil regulation is that its legitimacy, governance and implementation is not rooted in public authority. Operating beside or around…… [Read More]
But the shareholders themselves need to be more aware and more involved in their company's business in order for any meaningful change to sustain itself:
Shareholders, the intended beneficiaries of the corporate vehicle, are the ultimate capitalists: avaricious accumulators with little fiscal risk and no legal responsibility for the way in which they pursue their imperative to accumulate. Shareholders, not corporations, show indifference to the needs and values of society. It is their behaviour that is most appropriately characterized as amoral indifference to the plight of others and their environment. Shareholders, not corporations, behave in a pathological manner. And shareholders should be the targets for the cure that we need for our ills. (Glasbeek 2005: 24)
There is also the problem of victimisation of other cultures in a global market. As Strike, Gao and Bansal (2006) point out in their article, 'Being Good While Being Bad: Social esponsibility and the…… [Read More]
WorldCom (CEO Bernard Ebbers) supported by years of profitability arising from the deregulation of phone companies was a fast moving stock that was highly toted by stock specialists as a must buy, even while it was seriously hemorrhaging from bad and fraudulent business deals and its own shoddy accounting, cover ups and bad investment deals.
WorldCom quickly supplanted at&T as the favorite of many investors, based heavily on Grubman's recommendations. The investment world quickly sang WorldCom's praises as a result. A technology magazine, Network World, named it one of the ten most powerful companies, behind only Cisco and Microsoft. After listing its virtues, the magazine went on to conclude that, "MCI WorldCom will probably be a keeper on this list." 18 as for its investment virtues, Grubman claimed that it was a traditional "widows and orphans" stock, to be held for the long-term. Based partially upon his recommendations, Fortune listed…… [Read More]
Corporate Social esponsibilities
Comparison of CS Practices
In the 21st century, attaining some degree of social responsibility is recognized as a business quality that most corporations use in their daily operations to keep being in business Enquist, Edvardsson, & Petros, 2008.
The inclusion of social responsibility into a corporation helps to form a connection between the corporation's objectives with the idea of sustainable developments Samuel & Walter, 2009.
Corporate social responsibility helps corporations to show their ethical concern for sustainable development and that for their stakeholders. In this paper, a comparison of corporate social responsibility of three companies is given.
CS practices of IKEA, Hennes & Mauritz (H&M) and Starbucks compared
H&M philosophy in conducting business as the third largest retailer of clothing in the world is to offer the best price for fashion and quality outfits. The issue of the quality by H&M does not only involve the final…… [Read More]
This has lead to a greater corporate awareness of their impact in the multitude of regions they work and sell in. It has lead the concept of Corporate Social esponsibility to become a highlighted feature in the nature of global business today.
There are numerous examples of successful implementations of Corporate Social esponsibility in today's marketplace. Take one for example, the Caremark Corporation which is typically known to Americans as the owners of the CVS chain pharmacy and drug stores. This corporation has expanded rapidly over the past few years and has now become a global powerhouse. Yet, within its store locations, even in nations many corporations might exploit, they sill over excellent employee health packages that are equitable with the ones they offer their American employees in the United States. This seemingly small token shows corporate responsibility for their employees. However, not all seemingly wholesome American companies end up…… [Read More]
These claims are virtually all based on the concept that corporations - particularly multinationals -- should be held accountable for their actions within their sphere of operations. "Corporations, for their part, have responded in numerous ways, from denying any duties in the area of human rights to accepting voluntary codes that could constrain their behavior" (atner, 2001, p. 436). In fact, this very point is echoed throughout the literature; for example, "At the turn of the 20th century, corporations tended to disregard the public interest willy-nilly. And even as recently as one-half century ago, corporations had so much power over the marketplace and so little responsibility to society" (Sriramesh & Vercic, 2003, p. 450). Despite these trends, things are changing, though, as atner points out: "The last decade has witnessed a striking new phenomenon in strategies to protect human rights: a shift by global actors concerned about human rights from…… [Read More]
4. If Enron shareholders had been fully aware of the LJM partnership agreement, do you believe they would have been willing to continue investing in Enron?
LJM was created by Fastow allegedly to buy poorly performing Enron assets, but in reality to hide debt and inflate profits of Enron in order to leverage its stock price. It is almost certain that Enron shareholders would have ceased to continue investing in Enron had they been aware of the full significance of LJM.
LJM, in its essence, entailed that Enron was far below that which it's displayed to the public and that likely its debts were more massive and its profits far less than those claimed. Investors, obviously, would not want to invest in a poorly performing company.
Even if Enron's profits were higher and debts lower than those that the company tried to conceal, the very fact that Enron was not…… [Read More]
Corporate ocial Responsibility: Bowen and Carroll
Howard R. Bowen was the founder of the concept of corporate social responsibility. In his book "ocial Responsibility of the Businessman," Bowen argued that business was a major force that touched the lives of numerous individuals. ince business was inextricably and continuously involved in processes of judgment and decision-making, many of their proposals and assertions touched the lives of vast numbers of citizens. These included not only employees of the firm but also their families, acquaintances, and so forth. The larger the firm, therefore, the more corporate responsibility, accordingly the industry had in regards to the decisions that it formulated. As Bowen asked: "What responsibilities to society may businessmen reasonably be expected to assume?" (p. xi). And he responded:
"It refers to the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable…… [Read More]
Corporate Social esponsibility
Today's society is very much a corporate society where power is centered at many of corporate centers. Corporations are seen more than just tools and methods of living, but rather this way of life dictates the lives of millions as this system provides jobs and employment as an outlet of societal contribution. As a result of the deep and profound impact on society, many wonder what is the long-term effects of a corporate society and what benefits, if any, are available?
This line of questioning eventually leads to the idea of corporate social responsibility and the ethical and moral approach of the corporation within the human culture. The purpose of this essay is to describe the idea of corporate responsibility and examine it through the use of corporate philanthropy as a useful and practical method of success and benefit. The profitability, both long-term and short-term, will be…… [Read More]
Summary of the purpose of Corporate Sustainability Reporting
Reporting corporate sustainability is one of the best ways to ensure that a company is not only doing well financially in the present but also in securing a better and more certain future. The reporting of corporate suitability ensures that the current needs of the organization are effectively met without comprising future needs of the organization. Reporting on corporate sustainability also ensure that organization are able to keep up with all changes in the industry, with ensuring that new innovations have been developed, maintained and employed in the daily operations of the organization. Corporate sustainability is developed on a grid developed to ensure that the future is secure, and that the organization will survive for a long time.
Corporate sustainability also encompasses the assessment of current and future risks that the organization is likely to endure. As such, a majority…… [Read More]
Corporate Social Action of McDonald's and the Problem of Obesity
Corporate Social Responsibility
This paper proposes a corporate social action to McDonald's to address the issue of obesity among general consumers which is caused by high-calorie and spicy fast foods. The paper starts by highlight some research studies which explain how fast foods cause obesity among children and adults, and proceeds by discussing why McDonald's should take an initiative to remove this criticism by the local and international community. The paper also highlights the strategies to implement this action plan, the intended outcomes and affected stakeholders, the constituent parts of the plan, and unintended consequences or weaknesses of this initiative by the company.
The Social Problem:
Obesity is one of the major issues in health care. It gives rise to various heart diseases, diabetes, and other health related consequences (orld Heart Federation). A number of research studies have been conducted…… [Read More]
PENALTIES - CIVIL & CIMINAL
There are statutes that impose penalties both civil and criminal for government contractors who commit fraud, waste or abuse. Some of those statutes are as follows:
False Claims Act;
False Statements Act;
Bribery and Gratuities statutes;
Mail and Wire Fraud statutes; and the Public Integrity Act and recent legislative initiatives to strengthen criminal penalties for violations of conflict of interest laws. (Peckar & Abramson, 2007)
The government has the right to audit the records of the contractor for up to three years following a contract for the government being completed. Companies with contracts exceeding $5 million are required to: (1) post a fraud hotline poster; (2) establish a written code of ethics; (3) establish an employee ethics and compliance training program; and (4) establish an internal control system. (New ule for Government Contractors, nd)
SUMMAY & CONCLUSION
The Corporate Compliance Plan…… [Read More]
" (p. 4) This is to make the argument that it should be seen as a practical reality of this new business atmosphere that responsibility to the social realities and standards of an operational setting will be directly predictive of long-term survival, stability, functionality and survival.
That stated, it should also be seen as incumbent upon the global alliances created by the process of free trade to impose standards of corporate social responsibility vis a vis labor standards, wage equality and environmental protections. By taking this step, the world community can help to ease the financial burden placed upon those companies which aspire to engage in the global economy without eschewing positive corporate values.
Kahler, M & Lake, DA 2001, 'Globalization and governance,' IGCC. ead online Aug. 9, 2010 < http://igcc.ucsd.edu/research/intl_political_economy/gandg.html>.
Lockwood, N 2004, 'Corporate Social esponsibility,' Society for Human
Smith, H 2004, 'Who calls the shots…… [Read More]
In these cases, others working in those fields are the only ones who have the ability to conduct quality check to verify instances of possible fraud. Qualified doctors can analyze the work of other doctors to attest their medical malpractice. An honest lawyer who deals with related issues can understand how a fellow lawyer could have used deceitful methods to cheat a client off his money. Proficient lecturers can set good examples for students to bring out the incompetency of others. In the managerial level, well qualified professionals are the only ones who are smart enough to figure out the plots hatched by higher executives in order to use the shareholder money for personal needs. Scams in the political sector can only be challenged by opposing political parties or powerful entities like the court. The media is highly potent in this regard as they present malpractices in front…… [Read More]
Corporate Social esponsibility
I attaching assignment paper write essay CS.
Given the heightened level of international operations and globalization, pressure is mounting for corporations to behave ethically. Corporations are forced to developing standards, policies and behaviors as a demonstration of their sensitivity to concerns of stakeholder. The policies behaviors and standards are what a European commission called corporate social responsibilities. The Commission defined corporate social responsibility (CS) as "a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis" Commission, 2001.
Complementing this definition, McWilliams and Siegel. (2001)
, said CS include all actions that are intended to forge, beyond the firm's interest, a social good, and is a requirement in law.
Composition Corporate Social esponsibility
Corporate social responsibility entails coming up with solutions specific to a society. The corporation is however, not forcefully charged with an…… [Read More]
It should not be treated as a separate exercise undertaken to meet regulatory requirements." (ICA, 29) Here is expressed a philosophical impetus that drives the focus of this research, that such compliance which will generally concern matters such as corporate accounting, the practice of internal oversight and the practice of financial transaction must be considered inextricable from other aspects of practical, procedural and legal operation in terms of its relevance and necessity.
The practice of corporate governance may perhaps best be understand from the perspective that deregulation has largely defined the processes and direction of the global economy across the two decades following the Cold ar and its inevitable opening of economic channels. This is because in practice, corporate governance is a concept which has suffered much neglect. To the point, the statistics availed by organizations such as the orld Bank and the International Monetary Fund illustrate that…… [Read More]
This strategy was successful for some time but when WorldCom tried to acquire MCI (a company with two times more revenues than WorldCom), the binge of acquisitions was ended due to objections from antitrust and other stakeholders.
WorldCom's strategy was to display revenues and profits in extremely positive basket; for which the company had to make false misstatements in their accounting records. I think, it was the social and ethical responsibility of WorldCom to avoid misinterpretations in their financial statements and to show clear picture of the company to its stakeholders.
This strategy resulted in expansion of WorldCom through acquisitions and the expansion became so huge that the management of WorldCom was unable to handle the business. The debt of the company touched $41billion with $11billion of accounting frauds and misinterpretations. These all were the fruits of strategies implemented by Ebber just to display a very sound and positive picture…… [Read More]
With this position, she gained a wide variety of skills in many different areas of P such as corporate reputation, product marketing and placement, crisis communications, employee communications and social marketing. She says that some people get frustrated at the beginning of a communication position because of all the administrative and coordination work.
With the changes that are rapidly occurring across the world, crisis communication is an area that is growing in importance. All organizations are vulnerable to crises, from an oil spill or 9-11, to Enron and Worldcom, the Asian Tsunami Disaster, Hurricane Katrina and Virginia Tech killings. Organizations have to be prepared for the very worst and have an emergency plan in action for handling all areas of communication.
In a "crisis document audit," they look for a failure to address the many communications issues related to crisis/disaster response. Organizations do not understand that, without adequate communications: Operational…… [Read More]
Corporate Mergers and the Public Good
The United States of America, during the last years of the Nineteenth Century, witnessed a rash of corporate mergers. The Industrial Revolution had taken firm hold, and the nation was changing rapidly. Millions of Americans who had once been independent farmers or tradesmen now found themselves in the position of what some termed "wage slaves." At the mercy of their corporate employers, they worked long hours at low pay, and often under appalling conditions. The reasons for the merger mania of this period are many and complex, as are its effects upon the population as a whole. In breaking down the traditional vocational environment, the gigantic new conglomerates also transformed the entire social landscape. ork was no longer a family business shared by all generations. Communities no longer clung together for mutual protection and aid. Suddenly, the citizen of this new world was out…… [Read More]
As some queries about corporate governance were there ever since 1932 - the period of erle and Means, the expression of the concept of Corporate Governance was not found in English vocabulary until 25 years ago. However, in the previous two decades, matters relating to corporate governance have gained importance in academic literature as well as in public policy deliberations. Corporate governance came to be acknowledged as being synonymous with takeovers, financial restructuring, and activities of institutional investor's during this part of the era. Corporate Governance is now at a turning point. Several budding and up-coming economies that are on the path of development have identified by now that excellent corporate governance is vital for sustainable economic development. Furthermore, a lot are on the lookout for a novel or appropriate standard for making it relevant for their particular internal situation. (erle and Means, 1932)
The last ten years…… [Read More]
A corporation is a form of business structure. The corporation is given the same basic rights and duties as an individual. This shields members from the corporation from some liability for the corporation's actions, but also prevents them from utilizing corporate assets in the same way that one would use personal assets. There are some differences between publicly held and privately held corporations; however the basic structure of a corporation remains the same regardless of how the corporation is held. There are three main groups in the corporate structure. The first group consists of the directors of the corporation. The second group consists of the officers of the corporation. The third group consists of the shareholders of the corporation. Individuals may belong simultaneously to more than one of these groups, but each group has different responsibilities.
The first group consists of the directors of the corporation. When forming…… [Read More]
There have been controversies on the subject of the governance and accountability of big corporations, but it is only recently that these issues have gained prominence. The compensation for the top management is one of the major issues of corporate governance today. The primary reason for offering stocks to executives was for raising the share prices and thereby increasing its value for both investors as well as shareholders. Though this proved to be a major success, there were a few executives who would not disclose their stock options or would not make full use of the stock options offered to them. This caused inefficiency in the financial market. Stakeholders have the freedom to check their shares and to question the management if there were any discrepancies. Despite these constant checks with financial analysts, the board of directors, the panel of regulators, auditors and managers, there has been instances…… [Read More]
Corporate governance, a concept which has succeeded in attracting a lot of public interest due to its perceived importance for the corporations' and society' economic health in general has been accorded several definitions. Shleifer and Vishny (737) defined corporate governance as a concept that deals with the manner in which suppliers of various financial services to corporations somehow assure themselves of getting some good return on their investment. OECD (1999) on the other hand defines corporate governance as a system by which various corporations are effectively directed as well as controlled. The structure of corporate governance specifies the form of distribution of rights as well as responsibilities among various different participants in a given corporation. The participants include the board of directors, managers, stakeholders as well as the shareholders. The corporate governance structure lays down the rules as well as procedures to be used for making various decisions on the…… [Read More]
Corporate governance of finances in major corporations has been a major controversy during the recent recession. The scandal at Satyam is indicative of problems across the board, from CEOS, to executive boards, to independent auditors and even accounting firms such as Price Waterhouse. In this essay, the author will consider the unique problems presented in a globalised market where faith in the market is essential for international trade to function.
When the CEO assumes the entire responsibility in a corporate governance fiasco absolving everyone else (family members, board of directors, independent directors and other top management people), how should the regulatory authorities and the government proceed against the CEO who has confessed and other people who were absolved by him. Critically evaluate especially from the point-of-view of absolving all the others including the top management, board of directors and the family members, from any of the accumulated corporate wrongdoings.
What…… [Read More]
Larson, a. (2004, August). Piercing the corporate veil. http://www.expertlaw.com/library/business/corporate_veil.html#2
Piercining the corporate veil. Wikipedia. http://en.wikipedia.org/wiki/Piercing_the_corporate_veil… [Read More]
This was further detrimental to the morale of existing workers, as they began to resent the striking section of the workforce for their situation. The managing team then determined that a management of change assessment was necessary.
The first step in this assessment was an assessment of the existing situations. Workers were beginning to suffer from extreme fatigue, resulting in outbursts of anger and potential fights. This created physical hazards in the underground workplace. Worker resentment and anxiety were also rising as a result. Because these elements were detrimental for concentration and awareness, the physical hazard of spending long hours in the underground environment also rose exponentially for each worker.
It was also determined that input from workers themselves and their division supervisors was needed. For this purpose, several meetings were held between employees and their supervisors, and then with supervisors and management. These helped determined the precise areas of…… [Read More]
They are held responsible by the CEO.
The shareholders of the corporate are the legal owners of the corporation. In most cases, they do not actively control the corporation, but rather are responsible for appointing the board to oversee the corporation on their behalf. The shareholders as owners have some entitlement to profits from the company, but the terms of that profit distribution are generally decided by management when it announces its dividends. The shareholders do have a small handful of legal responsibilities. They elect the board. They also vote to approve the auditors. Occasionally, such as when Arthur Andersen collapsed, shareholders may be compelled to vote outside of normal shareholder meetings. The shareholders also have certain rights of ownership such as the rights to the proceeds from the dissolution of a company, should there be any.
The above definitions apply primarily to public corporations. These roles may differ in…… [Read More]
The links to the campaigns would be promoted through various internet websites and sources.
5. The message
As it has been mentioned throughout the previous sections, the company's message would be centered onto two distinct directions -- the product and the organizational commitment to the satisfaction of the needs and wants of the various stakeholder categories. These stakeholders refer primarily to the company staff members, the customers, the customers, the business partners, the general public, the governmental agencies, the not for profit institutions and so on. With these specifications in mind, the public relations team at the organization has constructed the following message to be delivered to the stakeholders:
Our organization has been present within the market for more than a decade now and it has used this period to continually evolve and perfect its approach of the public. We focus on the full satisfaction of our customers' needs and…… [Read More]
When a merger the size of the AOL ime Warner merger takes place and then disintegrates, it is time to look for what went wrong. Both companies were regarded as important in their fields; both had been successful, one for many years (ime Warner), the other for only a short while (AOL), but that success was extreme.
What did go wrong? he simple answer is that is was probably a classic clash of old paradigm vs. new paradigm.
In fact, the simple answer is the whole answer, and it appears in graphic detail on the 91st page of Alec Klein's book, Stealing ime: Steve Case, Jerry Levin, and the Collapse of AOL ime Warner. On that page, Klein describes the scrambling of the lawyers for both firms -- AOL and ime Warner -- when operation Alpha ango is revealed to them. (Both Case and Levin chose to keep…… [Read More]
These plans must also be communicated in as simple a way as possible. People are more likely to remember the steps they need to take when these are presented in a clear, easy to remember style. A summary of the contingency handbook should therefore be displayed prominently around the workplace at all times. In this way, a combination of written and oral communication during pre-crisis training underscores oral communication during the crisis itself.
During the recovery period after the crisis, communication helps to mitigate future crisis events. Once again, trust is the key to success for such communication. This trust is most effectively established prior to a crisis situation. If the crisis was handled effectively and calmly via communication, post-crisis communication and trust should not present any problems.
Post-crisis communication should then entail an examination and assessment of the crisis that occurred. This assessment is measured against the existing contingency…… [Read More]
Furthermore, weather and navigational equipment should be state of the art and also checked regularly for possible malfunctions. These risks are unknown, but can become known on a daily basis by means of monitoring and careful investigation and planning.
Risks that are not known are the most challenging of a company's risk management program. Such risks might occur by means of unforeseen accidents or oversight as a result of noncompliance with existing risk regulations. In addition to unforeseen natural occurrences such as earthquakes, for example, the human factor also plays a significant role in unknown risk factors.
The employer of a company may for example be unaware of an employee's increasing mental instability. The looming breakdown may be the result of a number of personal factors that the employers has not been informed about. Such instability may also be difficult to monitor, particularly in a company with a large number…… [Read More]
Another important issue to consider in the contraction of debt is represented by the impact of this debt on the company stakeholders -- employees, business partners, the public, and most importantly, the share holders. The primary scope of the economic agent is that of creating value for its stakeholders, but excessive debt could jeopardize this desire, especially since debt is money that has to be repaid and it as such reduces the future levels of profitability.
At the level of value creation, a crucial aspect to be analyzed is represented by the source of the debt to be contracted. On the one hand, there is the contraction of debt through loans, which are characterized by the fact that control and ownership of the company remains intact, but payments have to be regularly made; the payments are nevertheless tax deductible.
On the other hand, there is the contraction of…… [Read More]
Responsibilities of Corporations
Most people would agree that the purpose of business is to make a profit, but at what cost in human lives and suffering?
On December 3, 1984, a cloud of highly toxic gas rose above the city of hopal, India. When it settled, it instantly killed approximately 3,000 people, and left up to 600,000 people dying slowly or suffering various kinds of medical problems (Economist, par. 2). Union Carbide's pesticide plant was the culprit, yet the company denies any wrongdoing as well as any responsibility in the incident. According to the company's official statement, the explosion was the result of sabotage (Union Carbide, par. 4).
Even if we accept Union Carbide's claim that sabotage was the cause of the catastrophe, does this clear the company of any guilt in the matter? If sabotage really is to blame, doesn't it only shift the company culpability from one area…… [Read More]
In summary, we recommend that the IESBA reconsiders the proposals in the Exposure Draft and provides more guidance on safeguards applicable to sole practitioners and small accounting firms to ensure that the benefits of the changes outweigh the costs to SMEs. Under a principle-based approach, there should be safeguards and practical relief for all practitioners rather than rules-based outright prohibitions. The rewrite of this Independence component of the Code is substantially rules-based rather than principles-based. In this regard, we also encourage the IESBA to prioritize the redrafting of the entire Code using a similar drafting convention to that used by the International Auditing and Assurance Standards Board in its Clarity project" (IESBA Exposure Draft of Sections 290 and 291 of the Code of Ethics on Independence - Proposed Additional equirements in relation to Internal Audit Services, elative Size of Fees and Contingent Fees 2007).
There will also be an all-time…… [Read More]
For Nike, the better use of the $60M would be to first focus on how to create a more effective supply chain, sourcing, and partnership ecosystem that is in compliance to their CS objectives and goals. The lives of thousands in the company's supply chain need to take precedence over the spending on a single spokesperson.
Second, the value of a reputation for being transparent and trustworthy is far more valuable than any celebrity can provide. A case in point is Gatorade.
Having spent millions on a Tiger Woods endorsement, the company had to retract not only the endorsement but also the product based on his persona. If these funds had been used for funding programs for children in the poverty pockets of the U.S. And globally to get internet access and received better sports equipment, CS objectives would be attained at long-term change to lives who need the greatest…… [Read More]
Corporate Governance and Ethical esponsibility
Dr. Doight recently hired President "Universal Human Care Hospital," oversees departments 5,000 employees 20,000 patients medical facility. He provided a broad set duties oversight numerous departments, including business development, customer services, human resources, legal, patient advocacy, a .
Corporate Governance and Ethical esponsibility
Duty of loyalty owed to internal and external stakeholders
According to Heath (2006)
, duty of loyalty entails good faith and honesty in best interests of a corporation's stake holders. The duty of loyalty involve the no-profit rule and no conflict rule Heath, 2006.
The duty of loyalty thus implies that, a person in-charge of overseeing the operations in an organization should not let his/her personal interest dictate performance of duty. It also governs actions which must be guided by honesty and good faith. A corporation's stake holders can be classified into two; internal and external Weaver, 2006()
Duty of Loyalty to…… [Read More]
" Thus this principle is founded on an individual's ability to predict a given action's consequences. On predicting such consequences, an individual is supposed to choose the course of action which would in the end benefit the greatest number of people. In such a case, the choice selected would be considered ethically correct. For instance, if one innocent person has to be killed so as to save the entire human race, then it would be ethically right to kill such a person from a utilitarian point-of-view. An application of this principle in our scenario seems somewhat straightforward. To determine the right course of action in this case, the question to be asked is; of all the alternative courses of action at Dr. Doight's disposal, which course of action would benefit the greatest number of people? In my opinion, seeking to ensure that the situation is brought under control no matter…… [Read More]
However, those who have serious ethical and moral integrity will generally do what it takes to get a problem corrected, even if they have to lose out personally or professionally to protect the health and welfare of other people under their care. It does not appear that Dr. Doight did any of that. He determined that following procedure was enough to fulfill his duties, whether or not that procedure resulted in any resolution for the patients.
It would appear that Dr. Doight followed the deontological argument that one only has to follow the rules to be ethical. For many people, that is an acceptable choice. For others, the rules would not be important and would not have anything to do with whether something was considered to be ethical. With Dr. Doight, it is not just the possibility that he feels he has done what is ethical, but also possible that…… [Read More]
Corporate Strategies: Why are they so Important?
What is your biggest Professional Accomplishment?
Organizational Design and Culture
The 80s and Deregulation
The Election of Barack Obama
US rise as a world super power
Dominoes use the strategy by depending on the population and household. They believe that the population and household income are what needs to help when it comes to figuring out if people are willing to pay the pizza price and how much is the request for pizza. They think that this method is important because the population is what helps figuring out the demand for pizza as a consequence of the law of the demand, the bigger population the greater the demand. The household income will help likewise for the reason that the more disposable income the more individuals will purchase a common good. However, Pizza is…… [Read More]
Integrating the value of the code of ethics to the entire company can indeed help to prevent some unethical behaviors and that safeguards the company's corporate reputation (Vitell, 2006). Having the code of ethics in place, no matter how much employees are actually acting upon it, helps the company's external perceptions. The company can highlight this when trying to get a foot ahead of competition, and although small, it can give the needed advantage. When customers or other companies are deciding to do business with a new company, they will want to work with a company that has the perception of good ethics, and having a code of ethics in place gives that perception they are looking for.
Overall having an official code of ethics for a company is an immensely important business practice, regardless if employees are using it as they should. It is so important that you will…… [Read More]
Corporate Social Responsibility
Companies use Corporate Social Responsibility to assess their effect on the social and environmental wellbeing and take responsibility. CSR is primarily a mechanism for self-regulation. Firms track and make sure that they comply with the law, actively, including standards of ethics, international and national norms. Occasionally, the efforts by such companies may go beyond the regulatory requirements or the groups for the protection of the environment (Belfiore, 2016).
Apple Inc. has emerged as a leading global manufacturer, marketer and designer of media accessories, communications devices, portable audio players and computers. It was established in 1977 in the state of California. It is now ranked as the largest company dealing with IT; based on revenue and the total number of assets under its ownership and control. It is also ranked second in the mobile manufacturing niche. The CSR activities at Apple are spearheaded by its Vice President in…… [Read More]
Corporate social responsibility is a reflection of societal ethical norms. There is some disagreement in our society what the norms for corporations should be. A corporation is comprised of people, but the norms for corporations seem to be different from the norms for the people that comprise the corporation. This paper will explore these ideas to determine what corporate social responsibility is, and should be.
A corporation is a legal entity, but without the people that run it, a corporation is nothing. Thus, a corporation being a legal entity rather than a living entity -- the apparent exception to this reality in the United States notwithstanding -- a corporation cannot make decisions. It has no ability to conceive of anything, to have ethics, or indeed even to behave. In that sense, the idea of corporate social responsibility is an absurdity. A corporation has no greater capacity to make an ethical…… [Read More]
Actions that warrant for boundary should be on a written document and be available to employees at all time. This system should also take care of verbal and nonverbal agreement of contract expenditure, and no cost approval beyond the budget unless being approved by senior management and financing unit
These boundaries must be revised on an annual basis and edited if necessary. When employees understand the core beliefs and boundary system, then they do not just worry about delivering the bottom line results. Instead, they will strive to deliver corporate objectives without crossing boundaries.
Diagnostic control system should also be employed into the company whereby, new processes and performance measurements must be developed for the following:
Unit occupancy rate: this strives to achieve economy of scale.
Internal auditing: There should be a team of internal auditor reporting to the accounting VP. This team must constantly review the transactions and ensuring…… [Read More]
Employees as Benefactors of Corporate Philanthropy
Corporate Social esponsibility
The Case for Employees as Benefactors of Corporate Philanthropy
The Case for Employees as Benefactors of Corporate Philanthropy
A United Auto Workers unionization vote recently made the news, in part because the vote was taking place in the Southeastern United States where conservative state legislators have historically treated organized labor with hostility, but what seemed to be most newsworthy about this event was that the corporation, Volkswagen, decided to take a neutral position (Paresh, 2014). The vote took place last week and workers at the Chattanooga, Tennessee plant decided to reject union membership by a narrow margin. The national news media also took note when several conservative Tennessee politicians remained true to their anti-union ideology by threatening to end subsidies for Volkswagen and to push production of a new vehicle to Mexico. Experts in labor law believed these threats were coercive…… [Read More]
Africa in general, and igeria specifically, are both going through turmoil and change on a daily basis. Companies and firms and even government entities are being forced to make changes in the way the govern and are governed. Current literature is ripe with examples such as the review that determined that "though high dispersed, both within and between firms, corporate in the selected countries are relatively not independent" (Kyerboah-Coleman, 2007, p. 350). Failures abound in many industries and corporate governance affects almost every area of business. There have even been "major failures in corporate governance at banks" (ew African, 2010, p. 63). Along with corporate governance, other factors are present such as the lack of technology. Once recent study determined that "except for the introduction of online registration by the Corporate Affairs Commission (CAC) in igeria, no serious integrative reform has been undertaken" (Bolodeoku, 2007, p. 107). Of course problems…… [Read More]