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The corporation holds an enhanced asset policy that helps in reducing the risk and optimizes opportunity (BHP Billiton, 2010).
The corporate governance program of BHP resulted in the financial growth, with increase in sales volume. EBIT (Earnings Before Interest and Taxes) increases with higher margin with a positive increase in the cash flow, thus making the corporate more competitive along with maintaining the shareholders interest in the corporation in different ways especially through enhanced dividend policy (BHP Billiton, 2010).
As stated by Timothy M. Devinney in one of his article, BHP Billiton had routinely placed itself soaring in social responsibility surveys (such as Global Reporting Initiative) for the corporations’ response to the environmental procedures and safety (Devinney, 2009).
Due to the consequence of highly exposed measures such as the James Hardie asbestos scandal and the collapse of Enron in Australia, it had increased the level of corporate governance. BHP shareholders have formed ‘BHP shareholders for social responsibility’ concerning about the social, economical and environmental issues and the BHP management have actively participated in corporate governance (Thomas & Nowak, 2006).
BHP Billiton have committed to the UN Universal Declaration of Human Rights and the UN Global Compact. It has committed to the Global Reporting Initiative towards the social responsibility (Jones & Et. Al., 2007).
BHP Billiton has failed in their commitment towards collective bargaining for its employees which was compatible with its CSR line. During previous years the report relating to the collective bargaining and issues related to labor management was not emphasized. During the year 2005, the corporation had listed unions as the key stakeholders but still it did not align to the corporate social responsibilities. The potential for ethical business behavior is judged when the corporations reinforce
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12). The said stakeholders are similar to those of the first definition, as they include shareholders, management, and members of the board of directors, employees, customers, suppliers, creditors, and other interested parties. The definition given by the World Bank differs from the above two in that it includes the role of regulations and laws, as it defines corporate governance as a blend of law, regulation and appropriate voluntary, private sector practices enabling a corporation to attract financial and human capital, increase efficiency and fulfil its goals by generating long-term economic value for shareholders and respecting the interests of stakeholders and society (Maassen, 2002, p.
Ethics & Fraud 1.0 Ethical Values & its Effectiveness It is observed that an organization with diverse workforce witnesses various ethical dilemmas and issues that arise out of ethical values. This happens because the interest of organizational and personal ethics is different from each other giving rise to potential conflict among employees and managers (Pollock, 2011).
It provided the researcher with enough evidence on ethical lapses present within an organization particularly in the pharmaceutical sector. The report has been divided into two tasks. Task 1 is based on the case study, “GlaxoSmithKline experiences high cost of product quality issues” which identifies the ethical lapses that may have affected the product quality at GSK.
It produces a number of pharmaceutical products ranging from biologics, vaccines and drugs targeting neglected diseases in the sub-Saharan Africa. The multinational was formed following merger with other pharmaceutical and related companies like smith Kline Bicham, Glaxo welcome plc in the United Kingdom and smith Beckman Corporation all based in the United Kingdom.
It is now a public limited company, with shares traded on the stock market.
Despite being such a successful and competitive retail store, it has nevertheless faced continuous criticism from several sources such as labour unions, community groups and some other groups on issues such as lower tendency towards the employees' welfare and extensive foreign product outsourcing.
They have generally been seen as more aggressive and results-oriented.
U.K. corporations placed more emphasis on relationships rather than formal controls, and appeared "amateurish" compared to their U.S. counterparts. Recent years have seen a considerable convergence of U.K.
They have four different store formats in the UK: Extra, Superstore, Metro and Express. Further, they Tesco does not rest on just building these types of store but also strives to maintain and expand it. In 2002, Tesco have invested over 150m into the Refresh programme to help serve customers better and improve availability, operations and store environment.