Corporate Governance Benchmarking
Businesses in today’s society must be aggressive and competitive to meet the demands of consumers. The corporate culture must be one of shared beliefs with expectations and values that influence and guide the thinking of individuals in a positive and ethical manner. As each organization’s success depends on profitability and productivity, the magnitude of success or failure can be controlled by a few bad apples within the organization. Organizations capable of misleading, cheating and fraud have been highly frowned upon through the collapse or disarray of many organizations. Team A will provide a brief synopsis of specific organizations experiencing unethical challenges and how these organizations experience total collapse and devastation or how these organizations have come to rise above these unethical challenges by changing the corporate culture. By identifying the key course concepts, comparing and contrasting the practices of the various organizations will also provide insight of how each organization was able to react to these challenges.
Individual Company Synopses
The pharmacists Henri Nestle found Nestle in 1866 and currently is the biggest international company serving food and beverages (MAREKTLINE, 2010). Nestle employs more than 280,000 individuals working from various countries. Nestle provides products such as beverages, nutrition, ice cream, milk products, prepared dishes, and cooking assisting tools. In addition, Nestle also provides products for animals, and pharmaceutical products (MARKETLINE, 2010). Nestlé’s 2008 yearly revenue was over $100,000 million. Even though Nestle is the largest international company selling food and beverages, Nestle is a company who faced challenges of unethical practices leading them to the examination of compliance controls. According to MARKETLINE (2010) stated, “For instance, the group has faced warnings over the past several years as it sourced cocoa from farms in the Ivory Coast, which employed child labor” (p. 25). Nestle was criticized for purchasing cocoa from Ivory Cost, which the cocoa may have been produced by minor slaves. The minors who produced cocoa were bought from their desperate parents and transported to the Ivory Coast. The minors were obligated to work approximately more than 90 hours a week with no pay, limited food, and frequent physical abuse.
The United States of America and some other countries should not employ minors because it is illegal and unethical. McBride Financial Services (MFSI), like Nestle is considering performing unethical activities. The CEO Hugh McBride is advising the staff members to disguise the biographies of his choice of directors for Beltway’s approval (University of Phoenix, 2010). Corporate governance needs to identify MFSI staffs role of ethics in compliance with organizational objectives and regulations. MFSI could face serious criticism especially if a staff member acts on the whistle blowing law. Whistle blowing permits staff members and others to communicate their concerns to the audit committee with the understanding that steps will be taken to address their concerns while providing protection from revenge (Chew & Gillian, 2005). Nestle faced severe criticism based on allegations of unethical practices related to child labor laws, but responded to these issues by denying the unethical practice. Nestle continues to be the largest food and beverage company and began to source cocoa through Fair Trade Certification with some countries.
Hewlett-Packard (HP) is a technological global leader providing services to a variety of businesses and customers. The company operates out of many countries including the United States. A set of Stanford University students founded Hewlett-Packard in 1939 by producing different technological products and services to major organizations and individual customers. HP produced revenues over $115 million in...
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