Monday, January 20, 2020
Antitrust laws protect competition, which is said to benefit consumers with better products at lower prices. The U.S. Department of Justice (DOJ) and attorney generals from 20 states has filed antitrust lawsuits against Microsoft Corporation (Microsoft), the world's largest supplier of computer software for personal computers (PCs) in the United States. Microsoft is accused of allegedly violating sections 1 and 2 of The Sherman Antitrust Act of 1890. Section 1 of the Sherman Act outlaws Ã¢â¬Å"every contract, combinationÃ¢â¬ ¦, or conspiracy, in restraint of trade." The Supreme Court has since then decided that the Sherman Act prohibits only those contracts or agreements that restrain trade unreasonably. What kinds of agreements are unreasonable is up to the courts. Section 2 of the Sherman Act makes it unlawful for a company to "monopolize, or attempt to monopolize," trade or commerce. As that law has been interpreted, it is not necessarily illegal for a company to have a monopoly or to try to achieve a monopoly position. The law is violated only if the company tries to maintain or acquire a monopoly position through tactics that either unreasonably exclude firms from the market or significantly impair their ability to compete. The DOJ feels that Microsoft has a monopoly in the field of personal computer operating systems (OSs) and that they are engaging in anticompetitive conduct. Microsoft's "Windows" operating systems are used in over 80% of PCs. More than 90% of new PCs are shipped with a version of Windows pre-installed. According to the DOJ," PC manufacturers have no commercially reasonable alternative to Microsoft operating systems for the PCs that they distribute." Other firms do exist in the operating system market for example, IBM, Oracle, Sun Apple, AT&T, Hewlett Packard, Wang, Be, Linux, Dec, Gem, and others. These firms may only have 10-20% of the market share for PC's operating systems but they do have some share of the market. This proves that Microsoft is not the only seller of operating systems as the DOJ claims. The DOJ's complaint states that, "To protect its valuable Windows monopoly against potential competitive threats, and to extend its operating system monopoly into other software markets, Microsoft has engaged in a series of anticompetitive activities. Microsoft's conduct includes agreements tying other Microsoft software products to Microsoft's Windows operating system; exclusionary agreements precluding companies from distributing, promoting, buying, or using products of Microsoft's software competitors or potential competitor; and exclusionary agreements restricting the right of companies to provide services or resources to Microsoft's software competitors or potential competitors.
Saturday, January 11, 2020
The purpose of this chapter is to put the phase and reexamine the fiscal market in Sri Lanka and to discourse the audit market with particular accent on the Big 4 audit houses. The demand and supply of companies and the general audit patterns used by companies are discussed subsequently. The background to the research further explains the ordinances on external audits while foregrounding both professional and legislative guidelines. Some characteristics of the external audit fees are discussed later.Fiscal market in Sri LankaSri Lanka Ã¢â¬Ës fiscal system continues to stay stable and resilient underpinned by strong domestic economic growing in the face of increased hazards from the planetary macro-financial environment. This stableness is instrumental in making a favorable environment for depositors and investors, while promoting fiscal establishments and markets to work efficaciously and expeditiously, advancing investing and economic growing. Financial system stableness requires a stable fiscal and economic environment within an effectual regulative model and a safe and robust payment and colony system. The local fiscal landscape can be divided into the Money Market and the Capital Market severally. The Money Market where short-run interest- bearing assets with adulthoods of less than one twelvemonth, such as exchequer measures, commercial paper, and certifications of sedimentations are traded and ease the liquidness direction in the economic system. The Capital Market on the other manus is the market for trading in assets for adulthoods longer than one twelvemonth, such as exchequer bonds, private debt securities ( bonds and unsecured bonds ) and equities ( portions ) . Its intent is to ease the elevation of long-run financess. The Financial Market can be besides be classified harmonizing to instruments, such as the debt market and the equity market. The debt market is besides known as the Fixed Income Securities Market and its sections are the Government Securities Market ( exchequer measures and bonds ) and the Private Debt Securities Market ( commercial paper, private bonds and unsecured bonds ) . The fiscal system consists of the Central Bank, as the apex fiscal establishment, regulative authorization, fiscal establishment, a payment and colony system and a legal model. The fiscal system carries out the critical fiscal intermediation map of borrowing from excess units and loaning to shortage units. The Central Bank through its behavior of pecuniary policy influences the different sections of the Financial Market in changing grades. The Central Bank Ã¢â¬Ës policy involvement rates have the greatest impact on a section of the Money Market called the inter-bank call money market and a section of the Fixed Income Securities Market, i.e. the Government Securities Market. The Central Bank may besides step in in the inter-bank Foreign Exchange Market, which is closely connected to the Money Market. One of the most of import maps of the fiscal system is to guarantee safety and efficiency in payments and security minutess. Fiscal substructure refers to the different systems that provide for the executing of both large-value and small-value payments. Payment and colony systems enable the transportation of money in the histories of fiscal establishments to settle fiscal duties between persons and establishments. ( Fiscal System Stability Review Ã¢â¬â Central Bank 2011 )Audited account market in Sri LankaThe Institute of Chartered Accountants of Sri Lanka ( CA ) plays a critical function as the state Ã¢â¬Ës exclusive authorization in explicating Accounting and Auditing Standards while adhering to the International Financial Reporting Standards ( IFRS ) . The Sri Lankan audit landscape is chiefly dominated by the Big 3 audit houses which are Pricewaterhouse Coopers, Ernst & A ; Young and KMPG. These audit giants account for the bulk of audit services across the listed companies. In add-on to these major participants BDO Partners, B. R. De Silva & A ; Company, Amerasekera & A ; Company, SMJS Associates, De Zoysa Associates, R N Associates, Nandimuttu & A ; Co, Ranwatta & A ; Co are some of the other auditing houses that compete in the general audit industry of Sri Lanka. These participants largely are involved in scrutinizing companies that are non listed on the Colombo Stock Exchange.The game of Big 4 & A ; Non Big 4 audit housesThe largest web for accounting professional services identifies the Big 4 audit houses as the Ã¢â¬ËFinal four Ã¢â¬Ë which is responsible for a bulk of audits for publically traded companies. This is largely due to the market portion of those four houses where other little houses could non vie with the top terminal work and besides that they are non dependable as hearers to big administrations. However in Sri Lanka it is noted that Deloitte Touche Tohmatsu is non a outstanding participant and merely the other three audit houses are important within the industry. The stableness, credibleness and planetary presence that these companies offer are in fact significant. In a Sri Lankan context these companies have an border and go a formidable rival for about all the listed companies. Firm Gross Employees Fiscal Year Headquarterss Pricewaterhouse Peter coopers $ 29.2bn 169,000 2011 United Kingdom Deloitte Touche Tohmatsu 28.8bn 182,000 2011 United States Ernst & A ; Young 22.9bn 152,000 2011 United Kingdom KMPG 22.7bn 145,000 2011 Nederlands Table: Financials of the Big 4 Audited account Firms Mention: Company Financials ( PWC 2011, E & A ; Y2011, KMPG 2011, Deloitte 2011 )Demand and SupplyIn footings of geographics, the American part histories for a 40 % and worsening portion of planetary combined grosss. From 2010 to 2011 nevertheless, the American part had a strong public presentation growing of 9.9 % . Europe has 44 % of combined house grosss and increased 5.4 % from 2010 to 2011, turning the slowest due to regional uncertainness. Asiatic grosss have more than doubled from $ 7 billion in 2004 to $ 17 billion in 2011, and grew a dramatic 17.4 % from 2010 to 2011. ( The 2011 Big Four Firm Performance Analysis ) Harmonizing to employee statistics, indicated in the Big 4 Performance analysis study for twelvemonth 2011 the four houses jointly employ staff of more than 65,000 across the Earth with 35,000 spouses. It besides indicates that the net employment increased by 36,000 from 2010 to 2011. This gives an indicant of how important these companies are and to what extent they dominate the full audit landscape.Regulations on external auditingAll listed companies should set up formal and crystalline agreements with regard to the concern monitoring patterns, typically overseen by the audit commission, and involves the application of accounting policies, fiscal coverage patterns, supervising guidelines, build relationships with the company hearers. Once this is finalised a listed company should obtain the services of a professional audit house. To this consequence the company must make out to the model on Sri Lankan Auditing criterions. The Companies Act of 2007 besides has a series of ordinances that need to be adhered to when choosing and commissioning the services or an external hearer. This is besides applicable in the event of altering the bing audit house. It is obligatory for listed companies to follow with the Sri Lankan Accounting Standards every bit good as the Listing Rules of the Colombo Stock Exchange when fixing audited fiscal statements which are included in their Annual Report. Consequently, one-year studies normally include audited fiscal statements of the Company, Director Ã¢â¬Ës study and the revelations required by regulation 7.6 of the Listing Rules and must be circulated to stockholders before the termination of five ( 5 ) months from the terminal of the fiscal twelvemonth. This is one of the chief considerations that the listed companies must run into in order to follow with the demands mandated by the Securities and Exchange Commission and the Colombo Stock Exchange.Professional guidelinesThe Sri Lankan Auditing Standards are created on the International Standards on Auditing ( ISA ) published by the International Auditing and Assurance Standards Board ( IAASB ) of the International Federation of Accountants ( IFAC ) , with little alterations to run into local conditions and demands. It sets out the basic rules and related patterns and processs that apply to audits of fiscal statements. Hence this confirms conformity in all stuffs respect to the International Standards on Auditing. Under the Sri Lanka Accounting & A ; Auditing Standards Act No. 15 of 1995, conformity with these Standards is ineluctable when transporting out the audits of entities specified in the said Act. This Act non merely places the duty of following with these Standards on the Auditors entirely, but besides places a corresponding duty on the entity Ã¢â¬Ës direction to take all sensible stairss to guarantee that these Standards are complied with in the behavior of the audits of their histories.Legislative guidelinesWhen analyzing the legislative model for the listed companies, it is the duty of the audit commissions of listed companies to find the audit procedure both internal and external. Audit commission duties in companies are to be enriched harmonizing to the Sri Lanka subdivision of the Association of Chartered Certified Accountants which will make an extra bed of administration and answerability. This will guarantee that naming audit houses to carry on external audits will now rest in the custodies of these audit commissions which will supervise and supply transparence to the audit procedure. Stairss are taken to guarantee that all listed companies provide information publically on hearer independency. This corporate revelation has enabled more transparence into the audit procedure. Therefore hearers are bound to present comprehensive information on their independent study and hazard and internal control reappraisals. In the aftermath of important disagreements in corporate revelations in listed companies it is of import to observe that hearers merely give an sentiment of the true and just position of the fiscal statements taken as a whole, in footings of materiality, which is termed as a sensible confidence and non an absolute confidence, in conformity with the international accounting criterions.Features of external audit servicesAn external audit is a reappraisal of the fiscal statements or studies of an entity, normally a authorities or concern, by person non affiliated with the company or an bureau. External audits play a cardinal function in placing fiscal mistakes of concerns and authoritiess because they are conducted by outside persons and hence supply an impartial judgement. External audits are normally performed at regular intervals by concerns, and are typically required annually by jurisprudence for authoritiess. External audits are performed to confirm that the fiscal statements of an entity are right presented with a true and just position. They do non affect an existent accounting of a concern Ã¢â¬Ë fiscal histories, but instead external audits are an independent rating of fiscal paperss provided to the party, that carries out the audit. For a private-sector concern, an external audit will typically include a reappraisal of the company Ã¢â¬Ës quarterly or monthly fiscal studies every bit good as statements on grosss and expenditures to guarantee they are right presented. For authoritiess, an external audit will include a reappraisal of the budget, the distribution of financess and the disbursals to guarantee the budgeted grosss and disbursals were right compiled and used. An external audit will have a study sketching the hearer Ã¢â¬Ës findings. This will by and large be a sum-up of the overall cogency of the fiscal statements and paperss as presented by the company or authorities which is normally presented as the Statement of Auditors in the Annual Reports. Should the external hearer uncover disagreements between the statements presented by the company and his findings, these will be noted in the study as good. The audit will frequently include fiscal suggestions for the entity as ways to better its overall fiscal standing and accounting patterns. The more of import characteristic of an external audit is the decision of the hearer. A favorable decision is indifferent grounds that the entity is describing fiscal informations right while a negative decision is a ruddy flag for hapless accounting patterns.DrumheadThe stableness of the fiscal market in Sri Lanka is a cardinal driver of economic growing and nutriment. Similarly the capital markets provide a gateway for foreign investing and excite growing flights. The Sri Lankan Auditing Standards board and the Institute of Charted Accountants are the top government organic structures that guarantee good patterns and transparence in the industry. In drumhead it was revealed that in Sri Lanka a bulk of the listed companies prefer to seek the services of three of the Big4 audit houses, viz. , Ernst & A ; Young, KMPG and Pricewaterhouse Coopers. There are some smaller audit houses that are non so important in supplying services to the listed companies. This chapter discusses the ordinances on external audits while emphasizing the importance of both professional and legislative guidelines. Appraisal of the external audit fees, its composing and services offered have been discussed from a Sri Lankan position.
Friday, January 3, 2020
While abortion is legal in the United States, the law is diverse among many Americans who assert a great level of opinion regarding the topic. Issues regarding the legalization and procedures that govern the law makes it controversial in nature. Since the Supreme CourtÃ¢â¬â¢s decision in making abortion legal, there has been a great divide between those who support the advancement of the law, while there is a deep moral reserve for opponents who ethically challenge these regulations. Since the inception of the law, advancements in science, technology and healthcare have been made to support the safety of womenÃ¢â¬â¢s health. However, advocates still argue that the procedures are dangerous physically and emotionally. Lately, political propaganda onÃ¢â¬ ¦show more contentÃ¢â¬ ¦In retrospect, political debate has intensified among interest groups, lawmakers, media and the public regarding the scrutiny of the bill. For those that support the bill, they see advancement in the securi ty and safety of mothers and their unborn children. Those that contest the bill, see it as a violation of constitutional rights for the women and treating physician. NY Times journalist Kevin Sack, the author of In Ultrasound, Abortion Fight has New Front, points out that Ã¢â¬Å"over the last decade, ultrasound has quietly become a new front in the grinding state-by-state battle over abortion Ã¢â¬ . While each State has the authority to impose specific laws regarding public issues, most states have imposed legislative requirements for physicians to acquire Ã¢â¬Å"informed consentÃ¢â¬ before performing medical procedures, such as abortion. In such instances, the physician must receive informed consent from the patient by performing an ultrasound, showing and describing the image of the fetus to the woman. According to Sack Ã¢â¬Å"with backing from anti-abortion groups, which argue that sonograms can help persuade women to preserve pregnancies, 20 states have enacted laws that encourage or require the use of ultrasound Ã¢â¬ . These states have implemented proposed amendments to include in the way abortion is governed. For advocates, the purpose of the 4D ultrasound allows for specialist
Thursday, December 26, 2019
Ever wonder what adoption is like? There are many opinions about how people should view adoption and how they view it themselves. This is an ethical issue because many people view this differently according to their race, religion, family and even society can influence the way you view how adoption is too a person, There are two sides with ethical issues so in this paper, I will show you both sides of adoption. People may think that if someone adopts a child that is black, and both the parents are white, that it will make the child feel out of place or not as close as they could be to their parents if they were the same race. I read an article talking about how a young couple asked Nicole similar questions about the lady being adoptedÃ¢â¬ ¦show more contentÃ¢â¬ ¦The adoptive parents might realize that they arenÃ¢â¬â¢t ready to be parents and that leaves the child once again feeling rejected and unwanted. In a article it explains what they think the adoptive child should know, Ã¢â ¬Å"Children need to know their adoption story. They need to learn that they were not in any way the cause or the reason for their parents relinquishing them. Some questions that teens wonder: Why did they give me away? Was there something wrong with me? Did they give me away because they did drugs or abused me? What does that say about me? Why couldn t they work things out and taken care of me? Even with shows today like Teen Moms and Secret Life of the American Teenager, they are reminded that many young and struggling parents figure out a way to make it work to keep their baby, so why couldn t their parents do the same as they see on TV? This may lead to further issues of feeling rejected and unlovable.Ã¢â¬ (TheÃ¢â¬ ¦ 2). Adoption can also cause a feeling of loss that is unlike other losses like death, divorce, and any others. Dr. David M. Brodzinsky and Dr. Marshall D. Schechter said, Ã¢â¬Å"The loss for the adoptee is unlike other losses we have come to expect in a li fetime, such as death and divorce. Adoption is more pervasive, less socially recognized, and more profound. (BrodzinskyÃ¢â¬ ¦ 3). When some people think about adoption they donÃ¢â¬â¢t see a difference in their child from one they have delivered. To the parents, both of the children are their
Wednesday, December 18, 2019
The land of opportunities is also known as the United States, which is a place of freedom when the Gonzales family leaves their home and everything else, to better their conditions. Fifty-eight percent of immigrants migrate to the United States to provide themselves and their children a better life full of freedom and rights never given to them before. The United States provides people with a job and minimum wages which are a major factor for immigrants. The Gonzales family left behind their home town, culture and their usual everyday routine to be given a second chance in life. Although living in the United States is beneficial, undocumented immigrants live in constant fear of being deported and sent back to where they came from. ToÃ¢â¬ ¦show more contentÃ¢â¬ ¦Although some Americans argue immigrants should not be allowed in the United States I disagree. Immigrants should be permitted in the United States and deserve equality. Reforms of immigration provide immigrants security and job opportunities. For example, the agricultural job opportunity, benefits and security act are intended to provide a process for certain illegal workers to obtain permanent status. Over the years, presidents develop new reforms for immigrants, which are beneficial in several ways. During the year 2004 president George W. Bush started on a hopeful note for U.S immigration advocates announcing his administration support. Part of his new reform includes co mprehensive immigration reform, including a guest worker program. Although many Americans disagree with the new political reforms being introduced, presidential candidates agreed that legalizing undocumented workers in the U.S was necessary. Continuing with George W. bush and his reforms, he allowed an immigrant with job offers to enter The U.S temporarily. As long an immigrant is working and is obeying all laws they are able to apply for residency. Although applying for residency is a long process there are several of beneficial Factors. For example, a green card holder has the ability to leave and enter the united states as they desire. A green card holder can also apply for financial aid to pay for an
Tuesday, December 10, 2019
Question: Discuss about theBusiness Ethics and Management for Ethical Behavior. Answer: Ethical Behaviour and Corporate Social Responsibility can bring significant benefits to a business Ethics can be understood as the moral judgements about right and wrong. Ethics in business can be termed as the moral decisions which help in taking the decisions in the organisation. These decisions are taken under the influence of the culture of the organisation. The decisions taken either by the individuals or groups affect the entire organisation. The ethical behaviour of employees supports the growth and reputation of the company (Joseph, 2013). Unethical business practices are found in many organisations which do not last long and are not beneficial for the long term success of the companies. It hampers the reputation of the business which ultimately affects the overall profitability and market share of the company. As per Asemah, Okpanachi Edegoh (2013), Corporate Social Responsibility is the social obligation of the business which includes taking actions to improve the lives of people and society within the interests of the organisation. Nowadays, CSR is adopted by many companies because it only makes them socially responsible companies but also brings benefits in return in the form of customer loyalty and better reputation in the market. According to Horoszowski (2011), socially responsible businesses use sustainable business models and improve marketing, satisfaction of employees and customers and richer partnerships in the industry. Business ethics can be complicated at times when it becomes tough to decide whether the practice is right or wrong. For e.g. When the company lays off many employees but the salary of the CEO or employees of top management does not accept a cut in their salaries. This might be considered as unethical because the top management is responsible for the duties which benefit the entire organisation and its people. Ethical activities may vary from industry to industry like in a car manufacturing company; the most important concern is safety. Toyota, in 2010 had a huge unethical failure when they ignored safety concerns. The oil corporation companies have to maintain transparency in either transaction sand they are often criticised for corruption. In the opinion of Adda, Azigwe Awuni (2016), these two concepts of corporate social responsibility and business Ethics can bring significant benefits to the businesses. It is further added by Adda, Azigwe Awuni (2016) that Ethics is a good practice and it creates a shared value system which shapes the behaviour of people at work. There are several benefits which provided by business ethics to the business. One of the benefits is customer loyalty. Loyal customers create long term success for the business. If the customers are treated unethically, they will not make repeat purchase with the organisation. A loyal customer will do free marketing for the business through word of mouth which ultimately increases the chances of growth and development of business. If the business treats employees fairly by paying those fair wages and balanced work life, the business will be able to retain talented employees. Figure 1: Code Values for Business ethics Business ethics helps companies in setting up positive environment in the business. Positive relationships among the workers, management and stakeholders build trust and team spirit. It also helps in dealing with the legal problems. The companies should set up an ethical framework which ensures the involvement of key stakeholders in the business decisions and the positive outcomes for the business (Carroll Shabana, 2010). Corporate social responsibility is a concept which is understood as the voluntary social responsibility which is aimed at bringing social change and sustainability in the environment. There are many companies which are involved in the CSR activities. Some of the well-known companies practising CSR includes in Australia include BHP Billiton, Rio Tinto, Westpac Bank corporation, PricewaterhouseCoopers, and many more (Arup, 2011). CSR benefits the organisation as it assists the organisation in avoiding the exploitation of labour and corruption and in setting up good behaviour in the business. It improves the profitability, growth and sustainability of the business and creates appositive impact on the business along with the society. There are theories which help in clearing the concept of social responsibility. The first one is the stakeholders theory which is based on the assumption that the organisations have the obligation towards the society. It says that the organisations have a moral duty to fulfil the interest of the organisation and to maximise the interests of the stakeholders. The organisation should invest in the society so that the benefits can be reaped by the society and by the organisation. Like the organisation could work on improving the environment by adopting environment friendly operations. It is cost effective and also in the interests of the society. The second is iron law of responsibility which says that the organisations which do not understand the power of society will lose its position. The organisations must fulfil their social responsibility so that they can earn goodwill and prosper in the market (Goel Ramanathan, 2014). CSR can be aligned with the corporate strategies with the help of some theories like Agency theory. Agency theory proposes that the trust is build when during a transaction one transactor designates the responsibility to other one. The theory suggests that CSR acts in the best interests of the firm. As per Ertop (2015), Successful corporations need a support of the society. The workforce of these companies should be educated and healthy so that the workforce can be productive. The business has to integrate society to bring more efficiency and innovation. The contribution of the companies in the societys welfare consists of the value creation process which is also known as Triple P bottom line. This includes Profit, people and Planet. Figure 2: Triple P Bottom line As per Harnrungchalotorn Phayonlerd (2017), in todays global and complex business environment, the businesses use lot of strategies to run its business even better and efficiently than before. The companies began to take their social responsibility as the integral part of the business. There has been a significant increase in the companies which are engaging themselves in the corporate social responsibility. This is helping the companies in increasing their brand value, reputation in the industry and society, sales volume and also proving competitive advantage to the companies over others. For e.g. Starbucks, a globally recognised beverage company is engaged in CSR activities. The company runs a campaign called shared planet in which it believes to develop a good workplace, encourages ethical business practices and corporate governance. The company believes in working for their stakeholders like customers, employees and environment. Another example can be taken of Microsoft which is engaged in charities and donations to the ones who need them. The company in its citizenship report stated that it gave more than $900 to non-profit organisations for good cause. The company reduced 30 per cent carbon emissions and made a huge investment in the employee compensation (Chan, 2014) Apple is another example of a company involving in CSR. The company make big charitable contributions. The company is also making efforts to use environment friendly technique and raw material in their final products. Sony is committed to maintain sustainable society for the future generations. It aims at preserving the environment by using the eco technologies. The common practices of CSR include recycling of materials, reduction of emissions, employee treatment, building infrastructure for society like schools, hospitals, etc. (Chan, 2014). Ethical Behaviour and CSR have a huge impact on the organisations. Business ethics benefits the company and spread positive message about the company. It enhances positive business relationships which brings additional customers and support for the organisation. The business should be socially responsible because the employees demand it. As per Horoszowski (2011), 83% of the employees consider leaving their jobs if their companies exploit labour and use child labour. Also, the studies conducted Society for Human Resource Management reveals that CSR practices increases the morale of the employees, builds loyalty and helps in recruiting top employees. It was also revealed that the consumers like to make a purchase from the companies who support a cause. An article by Forbes suggested that more than 80% of the customers think that the business should work on improving society and environment (Horoszowski, 2011). According to Harvard Business review, CSR can be a source of opportunity, i nnovation and competitive advantage for a business. The investors also like to invest in the companies which are socially responsible. It is believed that sooner the companies will shift to social responsibility, more successful they will be in future. The companies become increasingly popular when they use Corporate Social Responsibility (Nasieku,Togun Olubunmi, 2014). It can be concluded that CSR and Business ethics have become an important and indispensible part of the organisations because it provides many benefits to the companies in the long term. The businesses should take it as their responsibility that whatever they take from the society should be repaid back to them. There are many famous companies like Apple, Nestle, Unilever and more which are involved in the CSR activities and are contributing their revenue for the benefits of the society. References Adda, G, Azigwe, J B Awuni, A R 2016, Business Ethics and Corporate Social Responsibility For business Success and Growth, European Journal of Business and Innovation Research, Vol.4, No.6, pp.26-42. Arup, 2011, Top 20 CSR companies in Australia. Retrieved from https://www.arup.com/news/2011_02_february/top_20_csr_companies_in_australia. Asemah, E S, Okpanachi, R A, Edegoh, L O N 2013, Business Advantages of Corporate Social Responsibility Practice: A Critical Review, New Media and Mass Communication, Vol.18. Carroll, A B Shabana, K M 2010, The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice, International Journal of Management Reviews. Chan, L Y 2014, Corporate Social Responsibility of Multinational Corporations, Global Honors Theses. Paper 18. Ertop, D 2015, Business Ethics, Corporate Social Responsibility and importance of implementation of CSR at corporations, International Journal of Contemporary Applied Sciences, Vol. 2, No. 12. Foote, J, Gaffney, N Evans, J R 2010, Corporate social responsibility: Implications for performance excellence, Total Quality Management, Vol. 21, No. 8. Goel, M Ramanathan, P E 2014, Business Ethics and Corporate Social Responsibility Is there a Dividing Line?, Procedia Economics and Finance. Harnrungchalotorn, S Phayonlerd, Y 2017, Starbucks with Corporate Social Responsibility (CSR), Faculty Board of Economic Sciences, Communication and IT. Reviewed from https://www.csringreece.gr/files/research/CSR-1443612056.pdf. Horoszowski, M 2011, 5 Reasons Your Business Should Be Socially Responsible, Moving Worlds. Joseph, L 2013, Importance of Business Ethics and Corporate Social Responsibility, Udemy Blog. Nasieku, T, Togun, O R Olubunmi, E M 2014, Corporate Social Responsibility and Organizational Performance: A Theoretical Review, International Journal of Humanities Social Sciences and Education, Volume 1, Issue 12.
Monday, December 2, 2019
Senco is a company that is based in the United States. Senco deals in the manufacture of laptops. Demand for laptops has increased over the last couple of years. The increase in demand for laptops is in proportion with increase in the level of technology (Hallett Hallett, 2010). Senco Electronics Company has been operating within the United States only since its formation. All production operations, supply and sales are done within the country.Advertising We will write a custom case study sample on Senco Electronics Company specifically for you for only $16.05 $11/page Learn More However, the company now has to produce in large quantities following an increase in demand for laptops. This has led to an increase in the cost of production and distribution. This has subsequently prompted the management to start weighing other options that can be effective in reducing production and transport cost (Coyle, 2009). It is important to note that the main objectiv e of any business organization is to maximize its profits. A business has to incur as minimal costs as possible to achieve this objective, and this is what Senco has been challenged to do. In its bid to reduce costs, Senco Electronics Company is considering starting production firms in China where the laptops will be assembled and then transported to the United States. The distance from China to America is very long; therefore, transport cost is expected to be high. For a company to be successful in todayÃ¢â¬â¢s business environment, it has to be in a position to respond to the situations that come up in the market quickly. Senco Electronics Company has to respond to the increasing demand for laptops quickly to continue with its success. Assembling laptops in China means that there may be inconveniences due to the long distance involved. For instance, it might be a challenge for Senco to ensure constant and timely supply of laptops. Therefore, the company will need to have warehou ses in the US where the final products will be stored to ensure constant supply. The holding cost of stock will end up increasing since the company will have to store more laptops (Coyle, 2009). The other factor that needs to be considered is a means of transport that will minimize costs. Transport by air is faster and more efficient. However, this mode of transport will be costly. Transporting laptops by air will be effective in ensuring that Senco Electronics Company will be in a position to meet the increasing demand for laptops. It is predicted that demand for laptops will grow by about 10% in the next five years.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, transport by air is too expensive, and this will affect SencoÃ¢â¬â¢s profitability in a negative way. On the other hand, transport by ocean could be an alternative. This means of transport is relatively cheap. How ever, sea transport is slow and less efficient, thus Senco may not be able to meet the increasing demand in time (Taylor, 2003). It is important to consider the long-term implications of the decisions made by the company. Senco has to store more laptops in order to increase its supply if it opts for sea as its means of transport from China to the US. Holding cost in the next five years will be too high. Supply might not be efficient if the company does not have a warehouse. This will lead to loss of customers. Holding cost will be less and supply will be highly efficient if Senco opts for air transport (AxsaÃËter, 2006). Decision and criteria used to arrive at the decision Air transport will be worthwhile in the long run, despite the fact that the cost involved will be high. I recommend air transport based on the need to keep efficient and constant supply of laptops, especially in the US market where demand is rising. Air transport would save holding cost as opposed to sea transpo rt and ensure unending supply of laptops. This would ensure that no customers are lost. Senco would end up maintaining profitability in the long run. References AxsaÃËter, S. (2006). Inventory control. New York, NY: Springer. Coyle, J. J. (2009). Supply chain management: A logistics perspective. Mason, OH: South-Western Cengage Learning. Hallett, F., Hallett, G. (2010).Transforming the role of the SENCO: Achieving the national award for SEN coordination. Maidenhead: McGraw Hill/Open University Press. Taylor, D. A. (2003). Supply chains: A managerÃ¢â¬â¢s guide. Harlow: Pearson Professional Education.Advertising We will write a custom case study sample on Senco Electronics Company specifically for you for only $16.05 $11/page Learn More This case study on Senco Electronics Company was written and submitted by user Jovani S. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.