This action demonstrates a lack of interest to aid the less fortunate in the community, as well as failing to increase their customer base. The less fortunate members of society also have to shop for groceries, and they most certainly have a choice where to make their purchases. While Company Q management is making the decision to throw the food away, this results in revenue loss to the company. Shareholders are not likely to invest in a company which prefers to lose revenue rather than contributing to society,
When revenue is less than expenses, there is a problem. Identifying the overages in expenses is crucial because these costs have a negative impact on the performance indicators profit margin and return on equity. This is what the CFO, Sullivan, was trying to avoid. The purchase of the line leases was a bad business decision that caused a major problem for the company and rather than deal with the consequences of the bad business decisions, Sullivan and others tried to hide the problem. The internal controls monitoring provided by Ms. Cooper and Mr. Morse uncovered the fraudulent transactions meant to hide the losses incurred when the telecommunications business fell off.
The largest problem with currency was that each state printed there own money. Different merchants from each state couldn’t trade with each other, for the money they would be trading would mean nothing in their home state. This also made the national currency almost worthless. The government also had money problems as they were not allowed to tax the people. This brought great debt on the nation’s government.
That is not how his story ended up though. He is currently trying to file a lawsuit against the financial institution that had helped him with his mortgage because of the lack of information provided to him as well as a full understanding. (http://en.allexperts.com/q/Real-Estate-Home-1842/2008/2/Disaster-1.htm).This goes to show that this happens a lot when purchasing a new home. Some loan officers are not really worried about your financial needs and are not accurately doing their jobs by getting the person the type of loan that best suits them. It is wrong and the loan officers should get in trouble in some way because letting people get things that the officer most likely knows that they can’t afford is just setting them up for failure or
4. One of the primary weaknesses of many financial planning models is that they: • rely too much on financial relationships and too little on accounting relationships. • are iterative in nature. • ignore the goals and objectives of senior management. • ignore cash payouts to stockholders.
They have shown this by closing a few stores in a higher-crime-rate area because they were losing money, by only offering a very limited amount of health-conscience and organic products because they are high margin items and by declining to donate to the local food bank because of worries over lost revenues. Company Q is not displaying an obligation to its stakeholders; particularly the customers, community and employees by not maximizing a positive impact through ethical and philanthropic actions. In order for Company Q is improve their reputation they need to take on a socioeconomic approach to social responsibility. This approach focuses not only on profits but on the benefit of the business to society. Company Q can improve their social responsibility in three areas; customer satisfaction, community outreach and employee trust.
The Articles of Confederation – DBQ The Articles of Confederation failed to provide proper leadership and government to the United States economically, politically, and socially. The Confederation’s lack of control over their states led to disarray and confusion among trade and taxes. There was also an issue convincing state officials to participate in the government as well as settling disputes between the states and even other countries. The Articles of Confederation had problems getting a hold on their economic situation. The nation was quite poor from the Revolution and had loans from the French that it was unable to pay back.
Their position was lost revenue due to possible fraud and stealing by their own employees. These situations show a lack of compassion between Company Q and the community. The situations also show a lack of trust Company Q’s management has regarding their employees. It is my opinion that you cannot run a successful business if your management team has a lack of trust amongst the employees or not having the support needed from the community. * Part B Three actions that I would recommend for Company Q could take to improve the attitude toward social responsibility would be: In the higher crime rate areas Company Q could invest in a security process that would keep employees and the consumers safe.
Several weaknesses in the organizational architecture at Société Générale led to the near demise of the bank. First, the level of decision-making power granted to mid- and lower-level employees was improper. Because Kerviel began working at the bank as a clerk and worked his way up through the ranks, he was able to acquire enough knowledge of the bank’s internal controls to make the trades almost without detection. Additionally, the bank managers’ decisions to believe Kerviel’s explanations for the transactions and not to pursue a closer investigation into the matter were made without regard for the bank’s well-being. How individuals were rewarded for their work, apparently encouraged risky behavior.
Jaime Dimon and Bank One A Bank One had suffered from very serious problems. These problems included “a number of mergers had not been fully integrated, and political infighting was rampant throughout the company”, “overhead spending was not under control” – meaning the efficiency ratio was low, the moral among employees was low and there were a division between all of them due to past mergers failed to integrate, weak loan quality, First USA – Bank One’s credit card unit – had lost millions of customers due to increasingly dissatisfaction with poor customer service and relatively high interest rates’ and finally, the IT and accounting systems needs huge short-term investments to make improvements, in order to upgrade service levels, manage customer profitability, and improve management accountability. The cultural gap division between the legacy Banc One and the legacy First Chicago NBD employees, the most lethal problem to Bank One, had hindered its chance to make changes in the past to adapt to the new market situations, since the board and the commercial banking divisions did not work as a whole to obtain common goals, hence losing market shares to the competitors. The second big problem was poor documentation across all retail lines, made it difficult to get an accurate picture of the risk profile of the consumer loan portfolio, hence led to handling out bad loans and credits as a result, and made loss of millions of dollars. First USA was the second-largest credit card issuer, yet it had so many flaws, such as low customer satisfaction, payment-processing problems, a shortening of late-fee grace period for some customers, and a very competitive low-interest/zero percent solicitation.