Stakeholders Theory Case Study Example | Topics and Well Written Essays - 750 words

Stakeholders Theory - Case Study Example Basis of determining business relationships: As per the shareholder's theory, corporate relationships are determined by legal or implied contracts. Thus, it recognizes accountability towards those parties with whom an explicit legal agreement has been entered into. This vastly limits the scope of accountibility.On the other hand the stakeholders' school of thought Escalation in value of shareholding: the shareholders theory endorses the objective of generating higher returns to the investment of the shareholders. Whereas the stakeholders' take is that, the corporation should strive to yield higher social returns to all the parties involved with it. Objective of wealth creation: escalation in the value of shareholding will result in greater wealth creation; therefore, it is consistent with the traditional corporate objective of profit maximization. The proponents of the shareholders theory maintain this. However, the other view is that, when the interest of the stakeholders is taken into consideration then there shall be fairer distribution in addition to wealth creation, which will promote the general welfare of society. The Tinged Shareholders theory contains a reconciliation of the main ideas of the two schools of thought. It makes allowance for moral and social obligations and at the same time retains the director's fiduciary duties and holds them responsible to the shareholders. The conflicting grounds of the normative and instrumental approaches are blurred in this theory. The traditional profit-maximizing objective of the shareholders theory is maintained, while incorporating the corporate social responsibilities as well, therefore it is consistent with moral duty. c) I find the stakeholders theory rather convincing. The recognition of commercial pursuits and social obligations appeal to me. The stakeholder's theory can justifiably claim to be superior because it upholds the interests of the owners without neglecting social welfare. If a company is profitable but its employees are a harassed lot, or its suppliers are bleeding dry because of the constant pressure of cutting costs, it defeats the purpose of corporate social responsibility. Singular motive of wealth creation can be ruthless if fair distribution and social welfare are neglected. A company owes responsibility towards it's employee's for improving their quality of life as much as it owes to it's customers for rendering quality at reasonable prices. .Wal-Mart is a case in point. This example demonstrates that commercial quests should not be divorced from social responsibilities.Wal Mart is the largest retailer in the world with a 20% market share in America and a formidable presence in retail in most parts of the world. It has gone overboard in its attempts to cut costs and increase profit margins. Recently exposed practices include locking overnight workers in its stores, allowing Wal-Mart maintaince contractors to use illegal immigrants as janitors. It is also known

Inseparability of Markets and Regulations Essay Example | Topics and Well Written Essays - 250 words

Inseparability of Markets and Regulations - Essay Example As such, it protects healthcare consumers by ensuring that the services provided to them are satisfactory and efficiently meet their tastes and preferences. Through licensing, the board controls competition and deviant practices within the medical field. It also safeguards consumers’ interests by guaranteeing that medical costs are within the conventional standards and affordable level (Lee, 2009). GCMB has a board of directors that comprises of 15 voting members and an ex-officio chosen by the governor. Its current chair is Richard Weil. Among the 15 voting members, 11 are physicians with Doctor of Medicine grades, 2 are dynamically practicing physicians with Doctor of Physiotherapy degrees, and 2 members are consumer members, who main role is to represent the interests of healthcare consumers (GCMD, 2014). GCMB represents the cultural diversity prevalent in Georgia. The board members are drawn from different regions within the state and represent the various social, economic, and political interests of a diverse population. The board is a fair representation of the community it is serving since it has incorporated the interests of different groups into its mission, goal, and objectives. However, the board still faces a challenge in regulating medical practitioners due to increased misconducts in the medical sector and the diversity of the field of medicine. New trends in medicine have too posted a challenge for GCMB (Lee, 2009). For instance, lethal injection practices and physicians participation in executions have proven to be hard to control. The incentives offered to the board are not enough to finance its activities and the cost of providing the licensing services has upsurge posing a challenge to the relevance of

Multifibre Agreement Case Study Example | Topics and Well Written Essays - 2250 words

Multifibre Agreement - Case Study Example 1966: June The United Kingdom implements a global quota scheme in violation of the LTA. (The LTA provides only for product-specific restraints.) 1967: April Agreement is reached to extend the LTA for three years. 1969-71 The United States negotiates VERs with Asian suppliers on wool and man-made fibres. 1970: October Agreement is reached to extend the LTA for three years. (It was later extended an additional three months to fill the gap until the MFA came into effect.) 1973: December It is agreed that the MFA will begin on January 1, 1974, and last for four years. 1977: July-December The European Economic Community and the United States negotiate bilateral agreements with developing countries prior to agreeing to extension of the MFA. 1977: December The MFA is extended for four years. 1981: December The MFA is renewed for five years. The United States, under pressure from increased imports resulting from dollar appreciation, negotiates tough quotas. 1986: July The MFA is extended for five years, to conclude with Uruguay Round. 1991: July The MFA is extended pending the outcome of the Uruguay Round negotiations. 1993: December The Uruguay Round (UR) draft final act provides for a 10-year phase-out of all MFA and other quotas on textiles in ATC. MFA extended until UR comes into force. 1995: January 1 1st ATC tranche liberalised by importing countries - 16% of 1990 import volume. 1998: January 1 2nd ATC tranche liberalized by importing countries - 17% of 1990 import volume. 2002: January 1 3rd ATC tranche liberalised by importing countries - 18% of 1990 import volume. 2005: January 1 4th ATC tranche liberalised by importing countries - 49% of... The nineteenth century saw the beginning of the formation of unions, for the purpose of protecting the rights of the citizens. From then on, as each country gained freedom from colonial rule, it started to go in for organized employment and trade activities. There are unions and associations for employment, for domestic trade activities and international trade activities. To protect the rights of its people, some countries have agreed and signed pacts on the quantity of each commodity that can be imported or exported into a country. Before we embark on a detailed analysis of the Multifibre agreement and its impact on international trade, let us have a look into the actions and agreements that were made before the Multifibre agreement came into force. Source: Based on D. Spinanger, "Faking Liberalization and Finagling Protectionism: The ATC at Its Best", Background Paper for the WTO 2000 Negotiations: Mediterranean Interests and Perspectives, Cairo. The textile and clothing industry is one which has constantly increasing trade flows all over the world. Globalization and liberalization had exposed the European Union industry to increased competition from a large number of low-labor cost countries (especially from Asia).This sector constitutes one of the most important sources of income and employment for various countries in Asia, esp.

Finance Paper Essay Example | Topics and Well Written Essays - 1250 words

Finance Paper - Essay Example The Mission statement of the firm â€Å"is to build the premier specialty retailer of jewelry by  offering consumers high quality products at compelling values through an empowering shopping experience.† Values The Company emphasizes in great customer satisfaction and delivering that satisfaction through high-quality products. The key element for the company is to make the customer feel special and give them a shopping experience that will leave them in awe. From a business perspective, the company has developed â€Å"Code of Ethics† which list out some key values that the company strongly believes in. For instance, each individual should be treated with fairness, compassion and respect. The company also believes in strong foundation of complete, efficient, and accurate recording methods to the government. Strategy The marketing strategy for the company is effective and is consisted of penetrating the online market and attracting its customer. The company is expected to earn around 75 cents(earnings per share), which is 34% from the previous annual year. The organization’s strategy is to penetrate the market segment by selling their products at a lower price than the traditional jewelry stores. The company possesses two key competitive advantages. One competitive advantage is to cut the cost of buying diamonds only if there is a guarantee that the customer will purchase them. In essence, the customer cannot breach the contract, which enables it to be cost-effective and makes them unique compared to traditional jewelry stores. Blue Nile Company utilizes pull marketing strategy as it uses clever pricing strategy to accomplish its goals. The company believes in being just 10% better, a no nominal feat in these harsh economic times. Moreover, the company emphasizes in brand recognition and enhancing consumer traffic through their online website. The focal point remains through the search engines such as Google, YAHOO and Bing.com. The company offers incentives through internet by persuading customers to subscribe to their newsletter, which gives them special insights about promotions, sales, and coupons. The company invests little in brick-and-mortar advertisements and billboards. Without a doubt, the management team is vital towards the success of the organization. Diane Irvine, the CEO and the President has created a culture that thrives on â€Å"thinking outside the box.† It is astonishing to see how a company is flourishing in this business without owning diamond mines, a feat that may seem impossible. Ms. Irvine along with Susan Bell and Marianne Marck acknowledged that certain months are extremely busy for the stores. Thus, the decided to have a strategy in which they launched new, creative desings for the jwererly around that time period. In essence, the management team was ready to face the challenges of the customers head-on. Moreover, Irvine and her team excelled in customer service by returning custome rs demands and shipping their packages in timely manner. Furthermore, the management administration staff placed high priority in consultation and pursued the engagement rign business to the fullest, which made them highly profitable. FINANCIAL STATEMENTS BALANCE SHEET Period Ending Jan 2, 2011 Jan 3, 2010 Jan 4, 2009 Assets Current Assets Cash And Cash Equivalents 113,261  Ã‚   78,149  Ã‚   54,451  Ã‚   Short Term Investments -    15,000  Ã‚   -    Net Receivables 2,328