Corporate Social Responsibility Law Aspect

Definition
How the action and conduct of corporation affect society. Corporate have the duty to improve and protect society through the business.
•Four Different Perspective

Economic Responsibility:
Maximize profits.
Fair pricing and quality products.
Stakeholders in Corporation:
Shareholders.
Employee.
Upper Management.
Customer/Consumer.
Vendors/Supplier.
The key is to be able to balance and decide which stakeholders need to be valued more
Legal Responsibility:
“Obey the Law”
Fair wage (eg. Minimum wage or more)
Cannot discriminate against employee beliefs, race, color, gender, and age.
Ethical Responsibility: (There is no right or wrong, where you draw the line is your responsibility)
Philanthropic
Responsibility
Giving back to the society
•Morals and Laws
oMorals are more ethical, and laws made ot create better environment for everyone. oThere are point where morals and laws cross the line
?Eg. Cannot kill.
•The Benefits Of Having A Social Responsibility
oImprove company image/brand.
oImprove environment.
oImprove tax benefit.
oBetter employee (more loyal, healthy).
oAffiliate with positive corporate partner.
•Negative of Social Responsibility
Cost money (bottom line).
Negative repercussion from social stance in society.
Eg. pro abortion vs. pro life.
•What it Means to be a Good Corporate Citizens
oRecognize your CSR, you have responsibility to society.
oRespond to your CSR, what will you do with your CSR.
Performance in holding up your CSR, benefiting employee, consumer, community
•Bottom Line
Economic Bottom Line
Wealth of the company,( profits, assets)
Social Bottom Line
How are they improving the life of employee, society
Are you improving the quality of life of your community
Environmental Bottom Line
Are you preserving the environment
Triple Bottom Line
Gauge your performance as a corporate citizens
Chapter 2: Introduction to the Legal Environment and the Court System
•Law
Definition: set of rules , relationship with society, relationship with individuals.
•Types of Law
Procedural:
Talks about the rules that enforce your rights.
What the rules are.
The rules to enforce your right
Eg. Stature of Limitation.
Subsistence
Establishes your right
Public
•Eg: U.S. Constitution, Traffic law, Administrative law.
Private
•Between citizens.
•Eg. Contract, Divorce, Court, Partnership, Corporation.
•Sources of Law
U.S. Constitution
Supreme law of the land.
Statutes
Legislative law made by city, state, district
Uniform Law
Applies from state to state. Each state agreed to the law.
Legal age to consume alcohol
Building laws.
Administrative Law
Agency, federal agency
IRS, EPA
Case Law
What the judges already decided.
Old English Law System
US combines the power which king and lord has in the old system to the judge.
Common Law
•Legal remedy: monetary
Equity Law
•Do what is fair and just.
•Eg. Injunction
•Equity Remedy
•Legal Reasoning
oHow can you make a decision
oEg. assault & battery
?Assault: reasonable immediate apprehension
?Battery: actual action , touch
oDeductive Reasoning
?Take major premises, rules
?eg. to be assaulted someone has to aware of the threat.
?Minor premises
?eg. The person is sleeping while being assaulted.
?Conclusion
?There was no assault when a person is sleeping while the act of assault conducted because the person is not aware of the assault. oLinear Reasoning
?Point to point reasoning until all the points could lead to conclusion. oAnalogy.
?IRAC method
?I = Issues.
•Does court has authority
?R = Rules of law
?A = Analysis
•Or application of law to the fact of the case.
?Conclusion.
?
•U.S. Supreme Court ( to get case to supreme court, writ of certiorari) o9th Circuit Appeals
?U.S. District Court (Trial court)
?Administrative Agency
?IRS, EPA.
?Specialty Court
?Bankruptcy
?Admiralty
oNevada Supreme Court
?8th Judicial district court
?Justice Court
?Municipal Court
?Small Claim Court
•Nevada Supreme Court
o8th Judicial
?Criminal/Civil
?Family Court
?Municipal Court
?Misdemeanors in the city.
•Small suits up to $8500
?Justice Court
?Misdemeanors, minor crimes,
?Screen felony and see if it needs to be ruled at criminal/civil court. •Jurisdiction
oIn Latin. Jur: Law, Diction: speech
?The ability to speak the law.
oFederal Courts
?Concurrent jurisdiction, state and federal can hear it.
?Subject-matter jurisdiction
•State has authority unless it is given to the federal court. ?Federal question, whether decisions made in state court may be unconstitutional. Challenge constitution ?Diversity Cases
•Could be removed from state court
•Citizens from different states and at least $75,000
oEg. Californian driver caused injury to Nevadan, which caused $100,000 in medical fees. ?Exclusive jurisdiction, only federal court can hear it.
?Specific type of case
•Eg. Bankruptcy, Admiralty issues, Immigration
oIn persona jurisdiction
?Personal jurisdiction.
?Long arm of the law (long arm jurisdiction)
?Jurisdiction over people other from state’s resident.
?Requires sufficient context
oIn Rem Jurisdiction
?Jurisdiction over property.
?
oNevada Courts
?Subject matter.
?Federal questions.
?State has personal jurisdiction over those who resides in the state
•Pleading -> pre-trial -> trial -> appeal -> enforcement. oPleading
?Starts with complaints, followed up by answer and counter claim, the reply
to counter claim. ?Filing disputes
oPre-trial
?Discovering evidences.
?Done by interrogatory, depositions
?Motions to dismiss case may happen before pre-trial.
oTrial
?Determines the facts
oAppeals
?Briefs
•Essay Discussion
oABC Case (Supremacy)
?US Constitution, supreme law of the land, resolve everything ?Federal statute supreme over state, ONLY if there’s conflict. oLegal Analysis (Deductive Reasoning by Analogy)
?Stare Decisis : Legal Analogy, a doctrine to look at other case decision, and follows it. (court stand by prior decisions) ?Nevada Supreme Court follows stare decisis doctrine, previous decisions made in Nevada court jurisdictions are followed and must be followed. ?Cases decided in outside jurisdictions are still used as guiding point, but not used to make absolute decisions, don’t have to follow it oEve vs. NDC
?Diversity case because
?Citizens from two different states, over $75,000 damages ?Long arm jurisdiction over the company
?Subject-matter jurisdiction for California court.
?Can sue in California or Federal court.
?Personal Jurisdiction over NDC because they’re doing business in California. oMicroWare
?In persona
?Long arm jurisdiction
•MicroWare does business on website which can be accessed from Colorado. •Need sufficient context to exercise jurisdiction over MicroWare.
Chapter 3: Business Ethics Fundamentals.
Income Statement
•First item is always revenue
•Income statement is composed of revenue -expenses = net income •In business the only real income is net income
•Revenue – COGS = Gross profit.
•Earning before interest, tax, eg. is not available for company to utilize
Balance Sheet
•Assets, liability, Total current assets, total current liability. •Crude measure
•Proximate reason of why business go down is because they run out of money. •Quick ratio
oFor business that are inventory heavy, about 0.2 to 0.3.
oFor those without roughly the same as current ratio.
Cash Flow
•Bankruptcy is a failure of strategy.
Chapter 1: Strategy
Definition
•The making of long term plans and goals and the allocation of resources to achieve it. •Types of Strategy
oIndustry: I.O. (Industrial Organization)
?Industry: Group of companies there are in the same business. ?Look at who you are compared to others
?Michael Porter
oResource Based View ( R.V.B)
?Look at the company as a bundle of resources.
?Who are we competing against and what do they have that we don’t have.
SWOT Analysis
•Strength (Internal)
•Weakness (Internal)
•Opportunity (External)
•Threat (External)
•What are our strength and weaknesses and relation to the opportunity and
threat that exist.
Corporate Strategy
•What business should we be in?
Business Level Strategy
•How should we compete in this business?
Functional Strategy
•How does function “x” support business ?
Scenario Planning
•Planning for what if something happened
Cognitive Bias
•Preconceived notion, conceived before the fact of a case.
Sustainable Advantage is a better method for competitive advantage according to the professor, not return on invested capital.
Chapter 2: Stakeholders and Stocks
Mission Statement
Culture
•Unspoken beliefs and assumption on how things are done in a workplace. •There three labels of awareness
oConscious
oSubconscious
?Not aware now, but aware once it’s pointed out
oUnconscious
?Not aware about what happened , and will not unless investigated more. •Culture is subconscious
Goals
•Very much alike goals for individual
oEg. Losing weight, getting good grades, pass class, get a job… •Type of goals
oSpecific goals
oIntermediate-specific goals
•Management by Objectives
oCompanies will set goals, those will trickle down to lower and lower level
of management.
Board of Directors
•Corporation is owned by stockholders.
oStockholders however are not usually effective to go about carrying decision making for the corporation. oTherefore stockholders hire board of directors to run the company. ?Large corporation in USA typically has 12-16 directors.
?Outside vs Inside
•Outside director doesn’t mean that they’re independent •Inside:
oChairman of the board, CEO, president
?Almost always president is a director
?CEO has always been a director.
?Chairman of the board is a director
oMore outside and less inside is better to elect CEO
oCEO, should they be risk averse? Depends on the business. ?But if the ris
Agency Theory
•
September 10th, 2012
University of Phoenix
•Generally undesirable by employers.
•20-30% of revenue spent on marketing.
Group Projects / Learning process
•Lots of learning happens in group.
•Online vs In Class
•Would all online class be good or not?
oTendency to be lazy and cut corners in online classes.
o
As a business
•Profitable, good business.
As a learning source
•Some people satisfied by education
•May not be the way education should be done
•Harder to stay motivated.