Shareholder conflict: the story so far – and its relevance to evaluation
Two themes wrapped up together here.
Firstly, you will be sure to have noticed references to a ‘Shareholder Spring’ in which normally quiet and docile shareholders have been increasingly resistant to executives’ claims for ever higher rewards. There’s a link to a very handy summary below.
Secondly, this serves as a reminder of one of the several ways in which you can boost the evaluative component of your answers.
Shareholders join the Pressure Groups as Banks Feel the Heat from Stakeholders
Some evidence here of increasing shareholder activism which illustrates the pressure now being placed on the Boards of some quoted firms.
The revolt by Barclays shareholders (almost one third of them voted against the proposed remuneration packages for senior management) didn’t stop the deals being approved. However, this is a good example of shareholders expressing their anger at the activities of firms whose pay packages for top directors seem to fit uncomfortably in this period of prolonged austerity.
read more...»A detailed look inside Apple’s Foxconn factory
A fascinating and detailed look here at working conditions at Apple’s main supplier in China. This 15 minute video raises a lot of issues which students can develop; particularly useful for any discussion around CSR, but also excellent for operations and HRM. In the video, ABC News Nightline goes behind the scenes of the FoxConn factory - the operation which makes iPads and iPhones.
read more...»Apple under fire for e-book deals
A great example here of the role of competition legislation and regulation here - which involves everyone’s favourite A2 case study - Apple…
read more...»CSR & Ethics: Damaging Allegations for Adidas and the London Olympics 2012
On the face of it, the findings of the Independent newspaper’s investigations into the sourcing of the official London Olympics GB team kit are very damaging for both LOCOG and the supplier - Adidas. You can read the full report here.
read more...»CSR - Ethics and Pay Day Loans
A downside of the prolonged economic downturn in the UK in recent years has been the rise of the pay day loan companies, particularly in locations that suffer from relatively low incomes and higher unemployment. In most countries, pay day lending is banned, but not in the UK where financial services of this kind are largely deregulated. This video examines the issue and asks some important questions about whether the activities of pay day loan companies are ethical - even if they are legal.
read more...»Revision Presentation - Business Ethics
This revision presentation introduces the concept of business ethics. The distinction between ethical and legal behaviour is examined as are the potential benefits and drawbacks of ethical behaviour. Some topical examples of business ethics in action are also provided.
read more...»Revision Presentation - Social Environment & Business
Changes in the social environment can have a dramatic effect on business. This revision presentation examines the impact of significant business influences from the social environment (e.g. changes in population size & structure, lifestyles, labour market).
read more...»Revision Presentation - Corporate Social Responsibility
CSR is an increasingly important topic for business students. This revision presentation explains the basic theory behind CSR and outlines the main arguments for and against implementing CSR. Various case studies are also provided together with links to further research.
read more...»Do Apple Customers Turn a Blind-eye to CSR in their Pursuit of Innovation?
Apple’s customer base is incredibly loyal, as demonstrated by the long queues outside Apple stores and other retail distributors for the launch of the new iPad. Are Apple’s consumers willing to overlook the many concerns that observers have about Apple’s track record of manufacturing in emerging markets? This short video addresses that question.
read more...»CSR - Tesco leads firms having second thoughts about unpaid work experience scheme
Big retailers like Tesco, Argos and Arcadia group have abandoned the government’s “sector-based work academy scheme”. The scheme, which lets those on unemployment benefit work for a period without losing payments, is a cornerstone of the government’s strategy to address long-term unemployment amongst the young.
Why the withdrawal? Mainly as a result of bad publicity, fuelled by social media, claiming that the scheme is nothing more than “slave labour”. An interesting example of how big brands are increasingly sensitive to their corporate social responsibility reputation.
read more...»Schultz on Leadership, Love and the Competitive Advantage of Culture
We know that the BUSS4 is a big fan of the Apple and Steve Jobs - and with good reason. As our BUSS4 Topic Tracker indicates, a previous essay question (Jan 2010) used the example of Steve Jobs to ask students to evaluate how easy it is for a Chief Executive to change a struggling business into a more successful one.
Steve Jobs shares much in common with another well-known entrepreneur and CEO - Howard Schultz (Starbucks). Both men founded, left and then returned to lead a turnaround of their respective businesses. Both have taken on the challenge of taking a business idea through rapid growth and then also manage a global brand in a much more uncertain external environment.
Might Howard Schultz feature in a future AQA BUSS4 essay choice? Its certainly possible and this article from Ernst & Young ought to be essential reading for any A2 business student who wants to build their understanding of Schultz and his leadership style and business strategy for Starbucks.
read more...»Still more praise for the “John Lewis model”
You’re probably aware that the John Lewis department stores and Waitrose supermarket chain are doing very well at the moment, with sales figures rising strongly whilst retailers elsewhere are struggling. Several commentators have been keen to go beyond the marketing factors behind their success, instead paying closer attention to the firm’s unusual model of ownership and control.
read more...»It takes 20 years to build a reputation and five minutes to ruin it
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Warren Buffett
When delivery firms are busy and drivers have a tight schedule to meet, there is a danger that corners are cut. A FedEx driver’s unorthodox actions, may cost him his job and damaged the firm’s reputation for reliability, after a disgruntled customer uploaded footage of the delivery of a computer monitor.
Now FedEx is under pressure from the customer and the media who will be watching how it limits the damage to its reputation.
The clip although it may emphasize the importance of training, and corporate culture, the actions of individuals who work for a firm have a bearing on its reputation, sales, profits and market share. A firm is only as good as the people it employs, discuss.
Great product, bad management?
At first glance, Olympus is a market leader in the endoscope market, miniature cameras used in micro surgery and engineering inspections.
Online marketing at children
The British Heart Foundation have been campaigning recently about the actions of junk food companies marketing at children online.
read more...»Fair Trade
Actress Emma Watson launches organic clothing line in support of the People Tree Foundation, with all profits resulting from sales going to the People Tree Foundation. Nice starter to the topic of fair trade (and also nice to talk about something other than coffee or chocolate)
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Ethics - Coca Cola ‘Happiness is Home’ Project
This Christmas, where will happiness strike next? Is this Coca Cola’s attempt to further enhance their reputation, or merely a clever marketing tool to increase their Christmas sales. Let your students decide….
read more...»Is this CSR Champion Acting Like Scrooge?
Unilever has a terrific reputation for its CSR activities. So some students might be a little surprised that it has hit the headlines for perhaps the wrong reasons?
read more...»CGI modelling gauze and effect
Photographs of flawless models with tiny waists, perfect bums and endless legs, may hold the attention of consumers, but is it ethical to use computer generated images to promote a firm’s clothing ranges?
International operations decisions - Adidas trainers for $1?
This makes an ideal example for students considering the challenges of international location in operations management for which they must consider global
markets, cost reduction and avoidance of trade barriers. Here is my plan for the case study and questions which could be set on it:
Could Adidas make a profit from selling branded trainers for $1? Certainly not in any of their developed markets – but since 2008 they have been working on a market development (Ansoff!) strategy which would give them access to the vast market in rural India with a social enterprise venture at a price that local people can afford. The goal of the project, the firm says, is not to maximise profits but to “tackle social issues” by creating jobs.
read more...»Stakeholders argue over executive pay
It seems that this debate isn’t going to go away, which will surprise few of you. At a time when the economy is struggling, unemployment is rising and living standards are stagnant, why is one group in society getting so much wealthier? One pressure group, calling itself the ‘High Pay Commission’ (they are obviously trying to draw parallels with the government’s own Low Pay Commission) is in the news for publishing a report describing high executive pay as ‘corrosive’.
read more...»Olympus Epic Fail
The scale of the failings in corporate governance at Olympus is breathtaking. The company has misled, shareholders, banks, auditors, stock markets, Japan’s government, and staff about the true state of its finances over a 20 year period. It is Corporate Social Irresponsibility on the grandest of scales.
read more...»Corporate Irresponsibility at Olympus
Recent problems at Japan’s Olympus Corporation highlight the importance of corporate culture, ethics, Corporate Social Responsibility and management responsibility to shareholders and other stakeholders.
Can you copyright a dance move?
Is it really possibly to copyright dance moves? Well avant garde Belgian choreographer De Keermaeker believes Beyonce has ... and I have just used a couple of articles from The Guardian to create a great copyright, patent, trademark (revision) lesson today.
read more...»Making Profit from Waste
This is a truly remarkable 10 minute video which is perfect for showing to business students as a way of illustrating how entrepreneurial flair (and a large dose of technological innovation) can result in a profitable product which is genuinely good for society. A big hat tip to Geoff for recommending it.
read more...»Lesson Video - An Introduction to Stakeholders
A useful four minute video here from the Bitesize website which provides an accessible introduction to business stakeholders…
read more...»Disposing of e-Waste
This is a great BBC News Clip on what happens to our electronic waste when we no longer need it. WASTE MANAGEMENT appears in many syllabuses nowadays and waste disposal is becoming a more regulated and expensive aspect of a business’s operations. This video clip shows what happens when the costs rise and businesses try to find cheaper ways to dispose of that waste. Here is another BBC clip from Panorama
read more...»CSR - 40 Years of Upsetting Big Business
Greenpeace has just released this promotional video which reflects on their 40 years of campaigning against the activities of big businesses who damage the environment. We’ve seen many examples of these campaigns over the years, but how do CEOs respond when they find out that they have been targeted by Greenpeace? The 1 minute video speculates on their reactions.
Caution: the video contains strong language: you will need to judge whether it is suitable for your students…
read more...»Student challenge - who should sponsor the Race for Life?
Here’s a good case study which can be used to set students a research and discussion challenge. Tesco’s 10-year sponsorship of the superb Race For Life series is coming to an end and an agency has been appointed to identify and recruit the next headline sponsor. Who should they approach and why?
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