LEVI STRAUSS & COMPANY CASE STUDY
Master of Science in Organizational Leadership Program
1- Knowing that its managers are willing to trade off some economic efficiency in order to operate according to their collective view of what is “ethical”, would you buy shares of stock in this company? Why or why not?
First of all, I think we are experiencing a paradox in this situation. Because, the company is trading off economic efficiency in order to operate, but it’s a well known fact that economic efficiency is one of the factors which affects the price of stocks. On the other hand, let’s say the company did set economic efficiency as a priority and decided to close some of its plants. This will mean laying off several employees. Thus, the current condition really makes is tough to judge. However, I would still buy shares of stock in this company. Because, company reputation, image and responsibility are also effective factors. Furthermore, I believe that Levi Strauss & Company’s ethical view will help them to win in the long-run. They may experience losses and they may not make profits in a short period, but I think that company’s ethical view will also affect their stock price, profitability and brand in the long run. For example, Margery Kraus, President and CEO of APCO Worldwide also justify my opinions with her words “Play by your own rules and ethics. In the long run it will pay off”. As a result, because of all these reasons, I would buy shares of stock in Levi Strauss & Company.
2- Managers of Levi Strauss believe that they run an ethical company, but some critics view their liberal employment and benefits policies as immoral. These critics object to the policies because they’re inconsistent with the critics’ religious views. Analyze the pros and cons of an organizational culture that includes socially liberal employment policies that are viewed by some members of society (including potential employees and potential...
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