...Policy #2 The history of the American economy has been greatly impacted by the industrial revolution. Life as the people of this time knew it would have a big change ahead of them. The normal life of using your hands to produce products would become more of machines doing the manual work. There was a boom in population and income stemming from the economy becoming more efficient. The Industrial Revolution increased the supply of goods dramatically from the invention of a mass-production technique that was represented by Henry Ford. The majority of the increase of supply was largely seen in mining, steel, oil, transportation networks, communications networks, industrial cities, and financial centers, but also consumer goods. The concept of people not having to use their hands as much anymore was an important advancement. The time being saved was significant not to mention how efficient these steam powered machines were in production. Now the overall work time is being cut dramatically considering they could now have settings for machines to produce the work. At the same time, the workers needed to realize this meant there would be less jobs available for employees. There would be less work to manage, but this led to creating a bigger profit since there was not as much man power needed in the factory. This idea of having the machine do the dirty work sparked the importance of profits for the business leaders, which over time has arguably led to the greedy business leaders we...
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...Corporate social responsibility History: The history of today’s CRS theory has a long and wide spreading background. Despite the concept of CSR being growing, manifested and flourished in recent times, the late 1800s (industrial revolution) is considered to be the beginning of CSR concept and practice, when creating more productive employees were the main concern for promising business. One might argue to differentiate the social and business reason behind. Carnegie, Cadbury and Lever were among the many individuals who utilised company assets to improve the conditions of nineteenth century workers. Throughout the twentieth century, companies such as Norsk Hydro would take responsibility for social conditions in their, often isolated, company towns. According to management historian Daniel A. Wren, there were criticism of the emerging factory system in Great Britain, particularly regarding the employment of women and children, and these same issues occurred in the America as well. Reformers of both countries perceived the factory system to be the source of numerous social problems, including labour unrest, poverty, slums, and children and female labour. Wren depicted the industrial betterment/welfare movement of this early period as an uneven mixture of humanitarianism, philanthropy and business acumen. He points to industrialists such as John H. Patterson of National Cash Register as one executive instrumental in setting the course for the industrial welfare movement...
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...Berkeley Journal of International Law Volume 26 | Issue 2 Article 5 2008 Corporate Governance as Social Responsibility: A Research Agenda Amiram Gill Recommended Citation Amiram Gill, Corporate Governance as Social Responsibility: A Research Agenda, 26 Berkeley J. Int'l Law. 452 (2008). Available at: http://scholarship.law.berkeley.edu/bjil/vol26/iss2/5 This Article is brought to you for free and open access by the Law Journals and Related Materials at Berkeley Law Scholarship Repository. It has been accepted for inclusion in Berkeley Journal of International Law by an authorized administrator of Berkeley Law Scholarship Repository. For more information, please contact jcera@law.berkeley.edu. Gill: Corporate Governance as Social Responsibility: A Research Agenda Corporate Governance as Social Responsibility: A Research Agenda By Amiram Gill* In the post-Enron years, corporate governance has shifted from its traditional focus on agency conflicts to address issues of ethics, accountability, transparency,and disclosure. Moreover, corporate social responsibility (CSR) has increasinglyfocused on corporate governance as a vehicle for incorporating social and environmental concerns into the business decision-making process, benefiting not only financial investors but also employees, consumers, and communities. Currently, corporate governance is being linked more and more with business practices and public policies that are stakeholder-friendly. This ...
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...NON EXECUTIVE DIRECTORS A member of a company's board of directors who is not part of the executive team. A non-executive director (NED) typically does not engage in the day-to-day management of the organization, but is involved in policy making and planning exercises. In addition, non-executive directors' responsibilities include the monitoring of the executive directors, and to act in the interest of any stakeholders. Also called external director, independent director and outside director. ROLE OF NON EXECUTIVE DIRECTORS * Provide objective and independent advice to the Board to enable it to make better decisions in the interest of all shareholders * Bring a genuine independent perspective to enhance decision making * Provide value added input to strategy and strategic development * Act in the best interests of the company as a whole rather than any one particular group of shareholders * Assist in carrying out the duties of the Board, such as: * reviewing, approving and on-going monitoring of the strategic plan * reviewing organizational capability in relation to stated objectives * reviewing financial performance against targets * raising capital * reviewing any major changes in the company, such as financial and organization structure * providing advice on major investments/divestments to be made * monitoring legal, ethical, risk and environmental compliance where appropriate * Act as a catalyst for change...
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...-the relationship of the leader to the board has a tremendous impact on the organization’s ability to fulfill its mission. -they work with to create the most effective, strong, and healthy boards possible to serve the organizations that they lead. -The chapters provide a brief overview of the best practice and its relationship to board development. -Join this journey of exploring the best practices of strong and effective boards. guiding the reader from a solid starting point of development by establishing role, purpose and function of the board to knowing and communicating the organization’s mission, vision and values. -Board members intentionally and routinely engage in mutual accountability, communication, evaluations and board development while taking the necessary time to process decisions eliminating unnecessary surprises. Boards unite and resolve to work together through change and transitions for the good of the Kingdom, the advance of the Gospel, and the prosperity of the organization. -to exhibit generosity as board members and to be outstanding examples of giving regularly and sacrificially to the church, college or organizations they serve in order to establishment a culture of board development that embraces the principle of “passing it on,” by developing new board participants that will lead to a strong and healthy future for the organization. - as a board member or as leader of an organization can take your present board environment and develop it into...
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...Virtual Organization Strategy FIN/370 Virtual Organization Strategy Berry’s Bug Blasters is a privately held business and wants to expand its operations. The business is considering three options for moving forward with the expansion plan. The first option is going public with an IPO, or Initial Public Offering. The second option is to acquire another similar business within the industry, and finally the third option is merging with another organization. All three of these options are viable choices and this paper analyzes each options for its viability and suitability to needs of the business. The paper identifies the strengths and weaknesses of the each approach, and well as the opportunities and threats posed by each option. The analysis begins with the strengths of the IPO, merger, and acquisition. Strengths of an IPO, Merger, or Acquisition Berry’s Bug Blasters could effectively expand its organization very rapidly through an initial public offering (IPO). An IPO would position the organization, after an underwriting process, to go from a privately owned company with modest annual revenues of $3.2 million to a public company that could put Berry’s...
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...Financing a New Business Heather Smith AIU online Abstract Starting a new business takes time, careful planning, and most of all money. You need to make sure you have a solid plan and good marketing strategies. It is important to decide whether you want to go into business by yourself or with other people. You have to make sure you have a backup plan in case the business is not successful and you lose money. Starting a business can be unpredictable and risky if you do not do your research. Financing a New Business It was a difficult decision to make, but borrowing money from the bank is best for my business. It would be best to keep things simple until the product proves to be a consumer interest. Hopefully, the money borrowed is not too much and can be paid back in little time. The pro of my decision is that the money made is self profited .This would allow me to have complete financial control. The cons could be having a business flop and having to incur all the debts alone. Then there will not be enough profit to repay the bank and other resources that were utilized. It is also a downside to having to create a working environment by yourself and to do all the marketing without help. This could have a serious financial impact on the family as well. A second option would be licensing the technology. It has been a very popular and effective method. This could be useful because another more established company could market the product better. They may have more money to...
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...The role of ethics and compliance in Starbucks is set in place to ensure that all of Starbuck’s staff from the baristas working the front counter to the corporate staff are all abiding by federal laws and regulations. Ethics in financial practices are sometimes hard to believe. The agency problem is the result of conflict of interest between stockholders and the managers of a firm (Titman & Keown, p. 15, 2011). “A conflict of interest is a situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties (“Business Ethics”, n.d.). An example of a conflict of interest would be if the CFO attempted to acquire a property or investment from a friend or family member without acting in the best interest of Starbucks and it’s shareholders. Corporate advisors, in this case a CEO or CFO are legally required to make fair and ethical financial decisions. The Sarbanes-Oxley Act or SOX, passed by Congress in 2002 holds corporate advisors that have access to influence company decisions legally accountable for any instances of misconduct (Titman & Keown, p. 11, 2011). The SOX act is in effect in order to protect corporate shareholders against financial misconduct and accounting fraud. According to Starbuck’s Code of Ethics for CEO and Finance Leaders are required to follow the following seven duties: act with honesty and integreity, avoiding actual or apparent conflicts of interest, provide internal...
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...Debt Versus Equity Financing Paper By Lori Houser ACC 400 Dr Debra Grimm Due September 10, 2012 There are several differences and similarities between leasing versus purchasing. What debt financing is, what equity financing is, and what alternative capital structure is more advantageous will be discussed. Leasing and purchasing can have many differences. Each has their places. Leasing offers 100percent financing, protection against obsolescence, less costly, and can avoid being added to debt on the balance sheet. Leasing allows you to have less money to start out with and not having to put out more money then you may have. Purchasing provides tax benefits, perceived financial advantages. Purchasing also requires having more money at the start. When purchasing you will have to have a bigger down payment then you would need to have if you were to lease. Purchasing may require the monthly payments to be bigger. Though both are different, they can in turn be the same as a company may have the option to purchase later instead of continuing to lease the property. Debt financing is borrowing money from an outside source that will be returned plus the interest agreed upon. Two examples of debt financing are gaining a line of credit from a bank. This gives a company the funds to make purchases. Another example is real estate. The company would need to find a lender that specializes in commercial lending. Equity financing is selling shares of stock in that...
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...ACKNOWLEDGEMENTS In acknowledgement to all who have contributed to this work in some form: writing this thesis would have otherwise been like swimming through mud. To my supervisor, Professor Andreas van Wyk, thank you for your leadership, patience, and academic skill in guiding me through the research process. To Adéle Mulder and Charl Marais, thank you for your continuous insight and perspectives, both academic and otherwise. And finally to Hilda and Gerrie Steyn, who have been absolutely crucial throughout all my years of study, thank you for your indispensable support, in all its forms. iv SUMMARY The worldwide increase of corporate failures on the scale of Enron and WorldCom has sparked a renewed international trend of corporate governance review. With the external company auditor blamed at least in part for many corporate failures, corporate governance reform also necessitates a review of the statutory regulation of the company auditor. In particular, the lack of auditor independence when auditing clients has been under the legislator’s spotlight. The problems associated with unregulated or poorly regulated auditors are well...
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...Arthur Gharakhanian Adelphia (A) ACCU-620 Brandman University Week 3, Assignment 1 November 7th, 2012 Adelphia Introduction Founded in 1952 by John Rigas, Adelphia Communications Corporation was a "family" business. John Rigas (father) was the chairman and CEO, Tim Rigas (son) served on the board and was the CFO, and Michael Rigas (son) was EVP and a board member along with James Rigas (son) (USA Today, 2004). Together they owned the majority of Adelphia's stock and occupied the majority of the seats on the board. These two components would be key in the fraud that would ensue. The personal lives of the Rigas’ would be the root cause of their need for cash and the reason behind the fraud they would commit (USA Today, 2004). The Scandal The government described it as ''one of the most extensive financial frauds ever to take place at a public company" (Sorkin, 2004). The Rigas' used company money to construct a private golf course, own several private jets, and purchase multiple several luxury homes. They were able to do this by establishing "complicated cash-management systems to spread money around to various family-owned entities and as a cover for stealing about $100 million for themselves" (AP, 2005). In order to keep investment money flowing in, they would manipulate the books to meet analyst expectations, thus inflating the stock price and at times they would mix Adelphia's funds with their own private funds. Upon realizing the amount of funds...
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...2011 CF forecast for LL requested by bank (Finance) Our 2011 cash flow forecast assumes that the union will accept LL’s revised offer in June and the strike was only for April, 2010 which will not affect fiscal 2011 since the offer would be retroactive to April 30, 2010. Our forecast also assumes that MRL’s cash flows are excluded. Our calculations are in APPENDIX. It shows that cash flow for 2011 is forecasted to be $8,646,000. Furthermore, cash flow is expected to decrease steadily in 2012 and beyond. It is doubtful that LL can remain as a going concern. Our calculations are based on Mark’s assumptions about sales and operating costs reverting back to 2009 levels, as well as our own estimates of non-cash working capital declines and tax rates. Therefore, we cannot assure that our cash flow forecast will be 100% accurate. We should enquire Mark about why he thinks that 2011 sales and operating costs will revert back to 2009 levels, and verify its reliability. If the circumstances change, so will our analysis and conclusion about the Cash flow. Competitor’s offer for LL’s inventory and subsequent liquidation of LL (Finance/Tax) A competitor has offer $28 million for the inventory of LL. We will have to find the current value of LL and compare it with the offer to see if it worth accepting the offer and liquidating. Under the Earnings-Based Approach, we could apply the cash-flow and discounted model by using 20% rate which is the estimated shareholder’s...
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...Corporate Compliance Plan Introduction Having a good corporate compliance plan is essential to all businesses. Without an effective plan a business will have no clear direction. With no direction a business will surely be in legal turmoil. Once in legal turmoil, a business will fail. Business Overview Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company's research and development is done at the corporate headquarters in San Jose. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. Legal Liability of Administration Riordan Manufacturing’s Corporate Compliance plan is for all employees. Compliance with the program starts with the officers and directors of Riordan. All employees of Riordan are expected to follow the set standards. The administration of Riordan is no exception to the set standards. The Corporate Compliance Plan will focus on the liability of the officers and directors of Riordan Manufacturing. Legal Options When legal...
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...The purpose of this paper is to discuss the U.S. financial markets, the role of investment banker and other sources of capital that is available to corporations. The paper will also discuss how a corporation raises short term and long term capital through this the U.S. financial system. When considering finance, it is understood that it can be used in a number of ways, whether it is used by individuals for personal finance, by the government in terms of public finance or for business in regards to corporate financing. The role of the U.S. financial system plays an important part in corporations raising capital in that the financial system provides several avenues for a firm to gather both short term and long term capital. Monetary institutions have a distinct purpose in the U.S. economy because they provide the resource for corporations to access financial support to raise capital for investment prospects. There are different varieties of financial institutions that supply financial assistance in the United States which range from banks that lend money commercially to companies that are responsible for securities, and then there are the companies that are involved in finance. Such institutions support certain markets and fortify the economic health of the U.S. by transitioning funds among providers of capital and those in need of said capital. A corporation can choose to be private or public, private corporations are generally owned by the CEO meaning the CEO owns 100% of the...
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...1 HOTEL OWNER / OPERATOR STRUCTURES: IMPLICATIONS FOR CAPITAL BUDGETING PROCESS Chris GUILDING Service Industry Research Centre, and School of Accounting and Finance Griffith University – Gold Coast Campus Queensland AUSTRALIA C.Guilding@griffith.edu.au Tel: (07) 5552 8790 Fax: (07) 5552 8068 I am grateful for funding support for this study provided by the Australian Cooperative Research Centre for Sustainable Tourism. I would also like to acknowledge the helpful comments and suggestions provided by two anonymous referees. 23 HOTEL OWNER / OPERATOR STRUCTURES: IMPLICATIONS FOR CAPITAL BUDGETING PROCESS ABSTRACT The findings of a field study concerned with appraising capital budgeting process implications arising from different owner / operator structures employed in the hotel industry are reported. Dimensions of conflict that can arise between hotel operators and owners are examined. Consistent with expectations motivated by agency theory, data collected suggest that capital budgeting systems in hotels operating under a divorced owner / operator structure exhibit more formalisation and a greater propensity for investment proposal cash forecast biasing. These findings suggest a degree of dysfunctionalism associated with the divorced / owner operator structure widely adopted in the hotel industry. Key words: Hotel, Capital Budgeting, Ownership structure, Agency theory.4 ...
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