Disturbance of Corporate Personality and Law - Coursework Example

? DISTURBANCE OF CORPORATE PERSONALITY AND LAW DISTURBANCE OF CORPORATE PERSONALITY AND LAW One of the moral issues in the co-operate scene today is the act of bribing company officials in order to get tenders and other orders in the business world. This is a situation where the company officials are given bribes in order to hand over a certain order to a particular supplier. Bribing other officials to hand over information regarding a competing company falls in the same category as unethical business behavior. These offences are legally punishable by the law in the United States of America. It is documented that most of these companies are oblivious of this as an offence that is punishable by international law. However, officials should not accept bribes under any circumstances. This makes the competition in the market to be unfair. The market share then is more likely to shift from a competitive market to a monopoly. Monopolization of the market makes it worlds harder to ensure the rights of the consumer are well adhered to. This kind of moral situation should not exist in an ideal society let alone a business situation. Eradicating such vices hides a bigger picture of ensuring that each of the people’s interests is better protected. This can only be done by the effective education of people both of their rights and of the wrongs they may commit if they stay ignorant. Thesis: “If the court is to pierce the veil it is necessary to show both control of the company by the wrongdoer(s) and impropriety, that is, (mis)use of the company by them as a device or facade to conceal their wrongdoing.” Company law cases A recent example is the publication in a global corruption report made by transparency international. This report showed that companies are still in the habit of offering bribes to officials of other states in order to get their products into those states faster. Also bribes offered to political heavyweights for smoother navigation of the product within the political climate of the state. Problems brought about by corporations investing in countries with populations that have low returns differ from the main concerns of the companies in more mature markets. Diamond also initially focused on an e-conference he attended. According to Diamond, “the consequences of all that deforestation include loss of timber and other forest building materials, soil erosion, loss of soil fertility, sediment loads in the rivers, loss of watershed protection and hence of potential hydroelectric power, and decreased rainfall.1” The conference was gathered on basis of the role that governments ought to take enabling a suitable environment that. CSR is one of the groups that cover a wide variety of ecological problems connected to trade conduct. Through the conference attended, I have not observed any guiltless references made by the writer with regards to negligence of ecological responsibility. I also have come across companies that the writer appears to be referring to successful funding and repairing of harm caused to the environment. An example used by Diamond is the EPA superfund program that righteous ecologists have supported to the extent of clearly deserving their fortune. Such programs have been reported to support the public from the actual damage that has been inflicted on the environment. The writer talks about the level or state of the compensation that EPA imposed on the environment as a result of the activities carried out certain companies2. Diamond opens up the occasional useful programs and policies huge corporations put into effect to inform companies that taking care of the environment is not the sole task of the people. During the aftermath of the oil spill, Chevron claimed to be in control of the situation. The writer simply reveals the programs initiated in the name of saving out environment, and does not let the companies off the hook. Some of the areas that signify that the writer does not the company off the hook for its environmental damaging operations include the health damage inflicted on surrounding wildlife in Angola. In the course of this inspection, the author claims to have received comfort notices and information from Chevron claiming that “this was a hazard not only to himself but to the environment.3” Diamond also discovered that Chevron oil company facilities were distant from the region where inspected birds were covered with oil. According to an intercession between the executive of Chevron and the media, the local people off the coast of Guinea would not be comfortable with their lives if it weren’t for the company’s settlement in the region. This way, the author is able to support and encourage such programs from corporations around the world. In comparison with the oil spill off the Gulf of Mexico, I observed that damage explained in the book increases a firm’s rate of resolving such an issue. Chevron uses this aspect of public relations to challenge companies and governments to take stand and became environmentally responsible, like the examples given in the book4. Another perspective in the book involves the writer and the World Wildlife Fund sharing one perspective that appears to reflect a public relations takeover5. In collaboration with other conventional environmentalist associations, Diamond exploits the opportunity to support the “Greenwashing” policy. The Greenwashing policy was adopted by Chevron in 1992 in the name of reporting on the ecological pollutions that the company was causing. In my observation, Chevron stated that the Greenwashing policy was dedicated to manufacturing an optimism that can reflect other similar institutions and organizations. Diamond greatly supports this program because of the way the company operates it. The program serves as a scapegoat of addressing the issue at hand. Diamond believes that the executives of Chevron intended to make the world observe and experience the situation being contained6. In the book Collapse, I did not come across the Worldwide Wildlife fund having a conflict of interest in accepting funds from Chevron. Thus, the author describes the situation as a stepping stone to gaining ground for what they stand for. Even though chevron was associated with violating environmental regulations, the author believes that, “our world society is presently on a non-sustainable course.7” If Chevron was the only company influencing the image of the oil industry, exposing the manipulative works of WWF and Chevron would not have been simple for Diamond. This measure is another situation I see the public recognizing and pushing governments and organizations to account for, within their fields of expertise. Corporate social performance (CSP) refers to the performance of a company in the social dimension, for the purpose of this report, it is measured by the strength of relationship between a company and different charities. Generally, the more interrelated relationship, the better the CSP of a company. The Court of Appeal constructed the cross-sector collaboration continuum which is a framework to assess the CSP of different companies. Adapting The Court of Appeal’s (2000) framework, four criteria were selected to assess the relationships between each airline and its collaborating charities: 1) the intended length of relationship, 2) strategic fit of the relationship,3) the scope of resources sharing and 4) the overall engagement within the company. The Court of Appeal (2000) states that the longer the intent length of relationship with a charity, the more desirable and the better the CSP. The three airlines all engaged in a number of projects with different charities, some of which are one-off donations and others are long term sponsorship. For the purpose of this project, only the best cases are considered. Therefore, the three airlines performed equally well on this dimension. In terms of the strategic fit of the relationship, it refers to which whether the nature of the charity fits with the values of the company. On this criterion, Ben Hashem scores higher than the two other airlines as it provides a long term sponsorship to the environment conservation group (Ben Hashem 2010). The CR report of Ben Hashem shows that Ben Hashem aims to position itself as the environmentally conscious leader in the airline industry. For example, it even changed the name of the CR report as environmental report. On this notion, the sponsorship of the environmental conservation group is in line with the value of Ben Hashem. The Court of Appeal suggests that due to the shared values, the company is more likely to be more committed in the relationship with the charity, and thus bringing more positive impact to the society. On the other hand, although Ali Shayif and Ali Shayif are partners of children welfare charities, it is unclear how the charity works fit with airlines’ values. As a result, Ali Shayif and Ali Shayif have lower score than Adams v Cape Industries on this criterion. In terms of resources shared with the charity partner, The Court of Appeal states that the most desirable form would be “boundary-less resource sharing” which means besides financial support, the company also shares its business knowledge with the collaborated charities. Unfortunately, according to the CR reports of each airline, none of the three airlines seem to share any other forms of resources with its charity partner except monetary donation or at most arranging employees to volunteer in charity works. In terms of engagement within the firm, The Court of Appeal (2000) states that companies which have high CSP also tend to have multiple levels of contact with its charity partner, for example beside collaborating with the CR department, the charity may collaborate with the financial department to build the financial competence of the charity. Unfortunately, the CR reports of the three companies did not provide information in regard to this criterion. UAE refers to United Arab Ben Hashem and is a country situated in the southeastern part of the Arabian Peninsula. Some of the companies in the UAE include the Abu Dhabi, Air Arabia, Agthia, Al-Ain Ahlia Insurance and many more. These companies can be best corporate socially responsible to the environment by; making price and quality to be equal. This is because about three-quarters of customers claim that they would switch brands to trade with a country with an ethical and lawful stand8. Liberal companies realize that honesty and trust are essential elements for sustaining profitable and rewarding business relationships with an ever more connected network of employees, customers, suppliers, and associates. Managers of various organizations in the UAE should help organizations to be clean and socially responsible by practicing principled leadership and using mechanisms such as training programs, procedures to protect whistle blowers, use of codes of ethics, use of leading ethics officers 9. Companies’ managers should identify a variety of pressure groups. These groups should serve to affect companies to behave in socially responsible ways within the legal-political structure. Companies can afford to be socially responsible even when their main objective is profit. Socially responsible organizations consider the effects of all their actions on all stakeholder groups. This helps them to be socially responsible when it comes to the environment. Cost and social attitudes are factors that are more influential for UAE companies when it comes to implementing conventional business practices than a yearning for saving the environment. More than half of all corporate firms in the UAE are being aggravated to engage performance that is more conventional by an aspiration to save the environment. This is in comparison with the 65% being aggravated by cost control and 57 per cent by public opinion10. They are able to understand and respond to it without causing any calamities. The current social and economic climate found in the UAE has made competitive, sustainable and mature businesses become the main agenda. Even as, Corporate Social Responsibility (CSR) practices to be controversially associated with improving product certification and enhancing a firm’s position, this has ignored CSR’s latent of improving efficiency, yield and business position. Relatively, having a CSR strategy surrounded within a business model does not only assist in gaining an advantage competitively or by increasing reputation appeal; but responds to making new stakeholder demands in an evolving environment11. Socially Responsible Investments Division is a leading company in investments specialization conceiving, development, and management projects that should specifically be set up to benefit the environment. Firms should generate funds and manage specific schemes that are to be modified to make a positive contribution to the manmade and the natural world. This will in turn increase unique value to a project in areas as varied as promoting cross-cultural awareness through promoting of organic farming and education in the UAE. Socially responsible organizations should focus on protecting and improving the community and the resources it uses rather than on only making profits. C.S.R is usually required since businesses are usually based on trust and vision. Creating and ensuring that organizations have kept trust with customers, communities, and regulators is not usually straightforward and thus can be most likely damaged or lost. To experience success in the long-term, companies need to be aware of what is affecting them in the present to what is going to happen in the future. This is not just about addressing changes to the technology or the needs of customers, but also by taking into account changes in social, environmental and governance issues12. Companies in the UAE should increase resources. This is because many customers from the wealthy class can afford to purchase premium branded products. However, the middle and lower classes might not be able to afford branded items. Instead, they prefer spending their money on investments and items that can improve their businesses. These companies should also change social expectations. This is because customers’ demands and expectations from a company are shaped and modified by the description and personality it keeps and not only by its product. Companies should be aware of globalization and free flow of information since it is particularly valuable for an organization to maintain a decent profile to its customers13. The rising development of the media, alongside simple access to information through internet and television, has made every move a company makes is highlighted. A small mistake could therefore cause many problems. In emerging economies, Corporate Social Responsibility is of considerable importance to service providers and governments as they promise to tackle social issues within changing security environments. A company must not be seen violating any moral laws in any of the areas like marketing policies, market behavior, sourcing of raw materials, employment relations, human rights, and even environmental laws. Hence, incorporating CSR puts social and social pressure on companies to give away at least a sector to society in return for what they have gained from it. Social responsibility can be seen to include quite a number of issues, many of which would be seen to be ambiguous with respect to right or wrong. If a bank deposits a certain amount of money from a trust fund into a common interest earning account for several days, the bank makes a significant percentage of profit. Diamond’s guarantees that companies have learned the painful lesson of being environmentally responsible, there is proof that companies have reduced the risk of repeating environmental hazards. Diamond’s difference between social and biological continued existence is an important one. The contemporary society has too often confused the two, or presumed biological existence is dependent on the strength and contributions of the public and civilization principles. Through the book, I have become aware of the fact that even though we can be an obedient society, we can conduct ourselves in ways that are ecologically suicidal. The level at which an organization can be trustworthy in securing the surrounding when conducting business determines the intensity of corporate responsibility. Vinson and Cooper endured a public lawsuit of fraud against WorldCom from the SEC on June 26. Criminal investigations were conducted by lawyers in the United States justice unit. The investigations involved looking into the operations of their fellow colleagues in the workplace. Following a hearing in court, Vinson was condemned to a period of five months in confinement and five months of residential detention. Cooper did not receive many penalties from the court as compared to Vinson. Cooper remained at WorldCom as a senior auditor executive until July 2004. She was resented by the company because several of them, thought her accounting indiscretions cost the firm most of its capital. Morally, her new occupation as an independent and ethical specialist could not compensate for the bankruptcy caused in the firm14. The cause for actions of Cooper and Vinson can be traced in their history of learning accounting and relations with their relatives and tutors. Cooper, for instance, needed to enlarge the inner audit by carrying out a monetary audit. To carry out such the operation successfully, she had to evade the awareness of Sullivan unilaterally. Cooper was not familiar with computer accounting programs, hence the involvement of Morse, a computer expert. Cooper was able to access the paper entries of the firm and made the fiscal audit. Vinson needed an account number to enable Myers to make a financial entry. Vinson had to use a subordinate analyst from Schenebeger’s department to get the account number and make the transaction entry15. Vinson was unable to be provided with the account number from a superior employee in a different department. The financial audit was necessary and Vinson needed to make an audit to account for payrolls and expenditure of the firm. The relationship implies that my moral development behaves in accordance with joint values. The conformity strategies are able to be counterproductive since they stress the evasion of penalties rather than independence16. Vinson should have taken his time to share the main issues discussed in WorldCom’s mission statement17. The initial reputation that Vinson had created at WorldCom could be revived. Vinson should also have regarded the accounting concerns of the findings of the third quarter of the financial year. Following the court proceedings, a script on my accountability regarding the situation could have changed the atmosphere that the judges held regarding the financial losses that were incurred and ignored. Commodities and services are supposed to be transacted through the channel of a contract. 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