Corporate Social Responsiblity and Wal-Mart

Corporate Social Responsibility and Wal-Mart Corporations deal with a wide variety of social issues and problems; some directly related to their operations, some are not. Corporate Social Responsibility (CSR) can be defined as â€Å"the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations† (Ghillyer 78). If this is the case, establishing appropriate and practical ethical guidelines in the workplace seems to be a reasonable request as a basis for corporate operations. Wal-Mart should be an example in determining what constitutes the values associated with its fundamental purpose of Corporate Social Responsibility. The four components of CSR are financial, legal, ethical, and philanthropic (Barnett). These areas of CSR ought to exist within every company’s infrastructure; however, the organization’s primary focus is usually on performance and profit not on social conscientiousness. Financial being the first component of CSR is often the major factor in a company’s consideration of ethical standards. The main goal of any business is to keep its costs low and to earn a profit. Financial responsibilities in regards to CSR means that society expects that a corporation will produce needed goods and services that are desired by customers and sell those goods and services at a reasonable price while still earning a profit. The organization strives to be efficient and profitable along with keeping the best interest of the shareholders in mind (Barnett). Financially, the Wal-Mart Corporation is a multi-billion dollar industry with close to two million employees worldwide. On the positive side, Wal-Mart’s motto is â€Å"Always low prices. Always! They uphold this motto by providing low prices to consumers with a high return on investment to satisfy stockholders. On the negative side, with jobs currently being scarce, Wal-Mart seems to manage keeping costs low by demanding high productivity from their associates (employees) with seemingly low compensation. In addition, most associates cannot afford to be covered by health insurance. The consequence of this treatment of personnel is a high employee turnover rate, which seems to question management’s view that the organization is a family (â€Å"The NEW Age of Walmart†). The second component of CSR, which is representative of the legal standards and obligations, refers to the expectation that a corporation will follow the rules set down by society. This means the organization is to comply with government laws used to protect employees’, stakeholders, customers, suppliers, the community, and other competition in the marketplace. An individual business could have thousands of legal responsibilities governing almost every aspect of their operations, including consumer and product laws, environmental laws, and employment laws (Barnett). The legal challenges that face Wal-Mart are numerous. Before Wal-Mart decides to build a new store, it researches and visits specific site locations in conjunction with considering the neighborhood. It does so discretely as not attract attention attempting to protect against opposition to the development of a new store. Defenders of Wal-Mart propose the overall advantages to the community, which includes economic benefits and consumer choice. Opponents to a new Wal-Mart have concerns over traffic congestion, public safety, and competition to small business. Often there can be protests from labor unions, environmental groups, and other wary citizens (â€Å"The NEW Age of Walmart†). Ethics is the third component of Corporate Social Responsibility. The ethical responsibilities concern societal expectations that go beyond the law, such as the expectation that organizations will conduct their affairs in a fair and just way. This means that organization are expected to do more than just comply with the law, they are to do what is considered right by society’s standards. Organizations should make proactive efforts to anticipate and meet the norms of society even if the law does not formally enact those norms. Ethics are a necessary and critical ingredient in any business that wants to be successful (Barnett). Wal-Mart seems to address the fact that there should be a code of ethics. The application of corporate ethical behavior needs to be dealt with on a personal and professional level. The key for Wal-Mart is to help their associates indentify if their actions are right or wrong. They rely on a system of training and business practices started by its founder, Sam Walton (â€Å"The NEW Age of Walmart†). Lastly, one of the most overlooked areas of CSR is the fourth component of philanthropic and discretionary responsibilities. In other words, this means society expects that corporations be good citizens that they will show concern for humanity. It may involve such things as performing charitable actions, supporting programs that benefit a community or nation, and donating expertise time and/or services to worthy causes (Barnett). In this area, the future of Wal-Mart looks promising if it is willing to recognize their duty to society. With its tremendous size, the organization is faced with being an example to other corporations. It is trying to make efforts such as supporting the environment, but they have just begun to scrap the surface. It will require balance between profit and social responsibility (â€Å"The NEW Age of Walmart†). Works Cited Barnett, Tim. â€Å"Corporate Social Responsibility. † 2010. Reference for Business: Encyclopedia of Business, 2nd ed. Web. 27 Dec. 2010. . Ghillyer, Andrew W. Business Ethics: A Real World Approach, 2nd ed. New York: McGraw- Hill, 2010. Print. â€Å"The NEW Age Of Walmart. † CNBC Originals. 23 Sept. 2009. Video. 27 Dec. 2010. .

American Chemical Corporation Analysis Essay

Executive Summary American Chemical Corporation’s Collinsville plant in Alabama is being sought by Dixon a speciality chemicals company. This plant mainly specialises in Sodium Chlorate production and fits well with Dixon’s strategy of supplying chemicals to paper and pulp industry. It would also complement Dixon’s existing product line. The plant costs $12million in investment and requires up to$ 2.25 million for upgrading to new technology. An in-depth investigation and analysis is conducted for both the company and the industry to accurately determine the worth of investment in the Collinsville plant. Net present values are calculated for all possible scenarios. After a thorough analysis of the data, suitable recommendations are provided. Introduction Dixon, an American specialty chemical producer, wants to buy Collinsville plant from American Chemical Corporation, another typical chemical company  in 1979. Dixon wants to diversify its product line by acquiring the aforesaid plant, which produces sodiumchlorate to supply to paper producers in South-eastern part of the US. This plant initially cost USD 12 million and additional USD 2.25 million needed to buy laminate technology to increase efficiency and profitability of the plant in order. About The Collinsville Plant American Chemical Corporation’s plant in Collinsville had the capacity to produce 40000 tons of sodium chlorate per year. Sodium chlorate is produced via the electrolytic decomposition of salt, water and energy. The important factors for us to consider regarding sodium chlorate is where the demand for this chemical comes from. 85% of demand for the product is derived from the paper and pulp industry, where it is used in the production of the bleach that is used to whiten the paper. The remaining 15% comes from its use as a soil sterilant, in uranium mining and in the production of other chemicals. Sodium Chlorate Market in USA Bargaining Power of Customers * Customers include Paper & Pulp Producing Companies like Georgia Pacific and Universal * Because of high competition among the sodium chlorate producers, the bargaining power is being increased. * The demand is also increasing at the rate of 8 to 10% per year with extra usage in the plant effluent problems of paper corporations.| Competition within Industry * Highly Competitive Market * Market Leaders like Hooker, Pennwalt, American & Kerr-McGee have more than 55% of the US Market * Huge number of small medium enterprises with active shares in the sodium chlorate market in US * Paper Companies like Universal also have their own NaClO3 plants actively participating in the competition. * Companies like Brunswick and Southern are specialised only in NaClO3 production| Threat of New Entrants * Union Chemicals and Lousiana Paper Company have already announced their entry into the competition with 40000 and 35000 tons plants respectively| Threat of Substitutes * Graphite Rods used in the production of NaClO3 are being replaced with Metal or Laminate rods. * This would eliminate graphite costs and also reduce power costs by approx. 30%| Issues surrounding Collinsville opportunity 1. Impact on revenues: Reduction in margins due to overcapacity: Although sodium chlorate prices were expected to increase, the overcapacity would cause number of tons to reduce (competition) and therefore, hit the margins. 2. Impact on costs: Increase of electricity from $0.019 in 1977 per kWh to $0.025 per kWh in 1979. Besides, due to upward revaluation of assets, depreciation was expected to increase. 3. Impact from adoption of technology: Depreciation would increase and Dixon was required to pay all costs related to the installation of laminated electrodes. 4. Impact of Financing of acquisition: Temporarily increase Debt to capital ratio to 47%. Target debt to capital ratio: 35% Valuation The Next important step is the valuation of sodium chlorate plant i.e. Collinsville Plant for Dixon Company. The given values and assumptions are summarised in the following tables: Using NPV Rule for the project – Without Laminated Electrodes [Details of the expected values is given in Exhibit 1 As the table is clearly indicating the net present value is a negative value if the Collinsville Plant is valued assuming that the graphite rods are not substituted with the laminate ones. This project may not be profitable considering this negative value. Using NPV Rule for the project – With Laminated Electrodes [Details of the expected values is given in Exhibit 2] For calculating the NPV of project in case of Laminated Electrodes, the power costs are reduced by 20%. The Graphite costs are taken as zero since there is no utilisation of graphite in the newer technology. Also the capital expenditures for first year are taken as 2.5 million $(the cost of project). Now, the NaClO3 plant in Collinsville is valued using discounted cash flow assuming the plant would operate using new replaced laminate electrodes when they become available. In this project, it is founded out that the Net present value is positive suggesting the project is profitable if $2.25mn of laminate electrodes is included in the overall $12mn deal. Calculations of Beta The systematic risk of the project could be the risk of the production of sodium chlorate in the industry. Therefore, we calculate beta of the project based on the beta of the sodium chlorate industry. The beta of Brunswick and Southern will be used to calculate the Beta un-leverd for the firm because the two firms purely produce sodium chlorate. Their Beta will be first unlevered. Then weighted average of those un-levered Betas will be used to calculate the levered beta of the firm. Debt/Equity ratio For calculating levered Beta we take Dixons target capital structure (D/E ratio of 35%). Financing by the debt package will temporarily increase Dixon’s D/E ratio to .47. But we take .35 as the D/E ratio for calculation as the company will ensure that it maintains its target D/E ratio in the long run. Monte Carlo Analysis Monte Carlo analysis is used to gauge the sensitivity of free cash flows on the Net present value of the project. This is used to simulate various sources of uncertainty inherent in the cash flows. Monte Carlo Analysis is performed on both the relevant scenarios in the case and the variations are plotted in a graph. For the Unlaminated factory After installing lamination Recommendations Basing on our detailed calculations following recommendations are made to Dixon Corporation * The net present value (NPV) of Collinsville plant (without the lamination technology) comes out as -0.89 million. Since the NPV value is negative it is advisable not invest in this project and company should pursue other alternatives. * If the new Lamination technology is installed in the Collinsville plant then the Net present value comes out as $10.919 million. This is attributed mainly to the huge savings in power and graphite costs. Even though it requires a $2.5 million extra investment, the benefits far outweigh the costs. Because of a high NPV value it is advisable to invest in the Collinsville plant and install the lamination technology. This investment will not only create synergies because of the similarity in the business but also add value to shareholders wealth. * If terminal values are taken as zero (assuming no residual value)then the NPV of Collinsville plant comes out as -$2.928 million. And after installation of lamination the NPV becomes as 3.6 million $. Because of the high NPV value in the later scenario it is advisable to implement advanced Lamination technology while investing in Collinsville plant.

Letter to Congress Essay

My name is †¦ and I am writing as your constituent in the 53rd Congressional district of California. I am writing to ask you to cosponsor Rep. John Conyers’ Expanded and Improved Medicare for All Act (H.R. 676). United States House of Representatives Bill Number 676 is the proposed U.S. legislation to establish single-payer health care, improved Medicare for All, in the United States. It will establish lifelong, comprehensive coverage for health care. A single-payer system would take the charge of insurance premiums off of employers and put it on the people as a nation, where it belongs. I can’t think of a more pro-business step that Congress could take at this time. It’s also the right thing to do, the humane thing to do. Obamacare doesn’t address the lack of sustainability of our healthcare system. It won’t keep insurance prices down, more than 30 million people will remain uninsured, and insurance companies will manipulate their way out of a ny imposed regulations. We will no longer be paying for a system that wastes $400 billion in excessive administrative costs, more of our health care dollars will be spent on health care, and more of the doctors and nurses time will be spent on caring for people. The result will be more time spent on prevention and wellness and the U.S. dramatically raising its life expectancy. As a Registered Nurse who has been employed at various managed care payers, I know firsthand the corruption and abuse that is typical of health insurance companies. It is political corruption that has allowed this situation to continue. Right now Congress and the President are fighting over how much to slash Medicare and Medi-Cal/Medicaid benefits. The American people don’t want to see this happen. National, single-payer healthcare (H.R. 676) is pro-business, and pro-people. Please co-sponsor today. Thank you for your time and attention.

Case Study for Human Resource Management Class Essay

Case Study for Human Resource Management Class - Essay Example Ron was also able to proceed with job analysis through the critical-incident technique. They were able to organize a meeting with the supervisors and they were able to come up with a conclusion. The only remaining aspect that they will need to look into is the type of validation strategy they needed to use. They had contradicting views on this matter. Ron believed that it criterion-related validity was appropriate while Bob chose content validity over the other. When Bob finished the evaluation of the agency's current staffing practices, the results tabulated in Exhibit 2.14 clearly depicts the presence of adverse impact. Using the 80 percent rule and by taking two sample groups which has the highest and lowest positions namely Blacks and Women, it shows that there is only 58.04% or less than four fifths of the selection come from the group with lowest rate. Even if there is no adverse impact evident on the selection process, it is still essential to evaluate other components for adverse impact. Aside from the standard 80 percent rule used to determine adverse selection, there are other issues that should be looked into the hiring process including the examination, interview and training of employees.

Poverty in Africa Essay Example | Topics and Well Written Essays - 1500 words

Poverty in Africa - Essay Example This has led not only to the formation but also to strengthening of G8 from time to time. The fabric of G8 is engulfing in its fold ever more areas of security, trade, development and other human concerns including environment and sustainable growth and advancement perspectives. The 'collapse' of the Brettonwoods system in 1971, formation of Organization of Arab Petroleum Exporting Countries in 1967, Yom Kippur War of 1973 the 1973 Oil Crisis, economic recession and stagflation in 1970s are the major factors leading to emergence of G8 (Tinbergen, 1977. See also http://en.wikipedia.org/wiki/1973_oil_crisis ). Their concern for poverty also has apparent reasons. Among developing and underdeveloped nations, Africa alone has about 170 million people living in subhuman circumstances with almost nothing but garbage to eat daily. This is, indeed, a vast potential of human resource going waste while living under severe conditions. Future of the world, to a great extent, lies in proper prospective development of these widespread pockets of poverty and squalor. G8, as such, has evolved from a 'Library Group' to G8 today. Since 1975, the heads of state or government of the major industrial democracies have been meeting annually to deal with the major economic and political issues facing their domestic societies and the international community as a whole. The six countries at the first summit, held at Rambouillet, France, in November 1975, were France, the United States, Britain, Germany, Japan and Italy (sometimes referred to as the G6). They were joined by Canada at the San Juan Summit of 1976 in Puerto Rico, and by the European Community at the London Summit of 1977. From then on, membership in the Group of Seven, or G7, was fixed, although 15 developing countries' leaders met with the G7 leaders on the eve of the 1989 Paris Summit, and the USSR and then Russia participated G8: Poverty in Africa in a post-summit dialogue with the G7 since 1991. Starting with the 1994 Naples Summit, the G7 met with Russia at each summit (referred to as the P8 or Political Eight). The Denver Summit of the Eight was a milestone, marking full Russian participation in all but financial and certain economic discussions; and the 1998 Birmingham Summit saw full Russian participation, giving birth to the Group of Eight, or G8 (although the G7 continued to function along side the formal summits). At the Kananaskis Summit in Canada in 2002, it was announced that Russia would host the G8 Summit in 2006, thus completing its process of becoming a full member (http://www.g7.utoronto.ca/what_is_g8.html see also http://www.g8online.org/ , http://www.g8.utoronto.ca/ ). G8 and Millennium Summit Goals G8, at the latest Gleneagles Summit, has covered several areas of contemporary challenges to international community. One of the major concerns has been the question of poverty in

RU486 Essay Example | Topics and Well Written Essays - 750 words

RU486 - Essay Example The mechanism of action of RU486 is that it sensitizes the myometrium to prostaglandin-induced contractions and then softens and later dilates the cervix; the Gemeprost would then stimulate the uterus to contract and expel the fetus (Medic8 â€Å"Health Guide†). The drug is to be taken with precaution among asthmatics and among those with blood disorders or those taking anticoagulant medications (Medic8 â€Å"Health Guide†). This drug cannot be taken by smokers aged 35 years and above. Moreover, Aspirin and NSAIDS should be avoided while taking RU486 as it can increase bleeding (Medic8 â€Å"Health Guide†). It is contraindicated in uncontrolled severe asthma, suspected ectopic pregnancy, chronic adrenal failure, and porphyria (Medic8 â€Å"Health Guide†). Its side effects include nausea and vomiting, abdominal cramps, and possibly severe vaginal bleeding (Medic8 â€Å"Health Guide†). In case the abortion is not successful, it is advised that other means of abortion be applied in order to complete the abortive process (Medic8 â€Å"Health Guide†). Some of the issues with this drug are related to the fact that no actual testing has been performed on the drug before it has been released into the market. Apparently, the only testing which has been conducted on the product before 1988 was a test to determine dosage. Such tests did not resolve or address the drug safety in actual usage (MacDonald â€Å"RU486). Large scale testing of the drug has been conducted in France and in England and the reports reveal alarming results for women. Severe and violent side-effects on women have been seen after administration of this drug. These side-effects included nausea, headache, diarrhea, vomiting, and bleeding and the bleeding has been known to last up to 35 or 40 days with an average duration of 8 to 10 days; some women actually required blood transfusions after profuse bleeding following administration of this drug (MacDonald â€Å"RU 486†). Those who oppose the use of

POEM COMMENTARY Essay Example | Topics and Well Written Essays - 500 words

POEM COMMENTARY - Essay Example When health fails, it is again the involvement of the people around one that concerns one the most: "Everyone is after me to take it easy./ They all make doctors' appointments for me, eyeing me in that quizzical way." The attitude of people around a seriously ill person begins to change, the "quizzical" looks are part of an effort to deal with the nearby prospect of mortality. When confronted by evidence of an illness, one goes into denial: "Everyone is spotting oddnesses/ in my innards, suddenly shocked/ by radio-awful diagrams.I do not agree". Neruda correctly diagnoses the human weakness of not wanting to face facts, and most importantly, not wanting to face the transient nature of existence and the cold touch of death. The same weakness of not knowing and acknowledging the truth about human existence, plagues people when things are not going so well professionally: " Everyone is picking at my poetry/ with their relentless knives and forks,/ trying, no doubt, to find a fly./ I am afraid." This confession of fear is uncharacteristic of people in general but the poet Neruda takes the first step towards confronting his fears: accepting that he is afraid.