Hyundai Motors Essay Example for Free

Hyundai Motors Essay Hyundai Motor Company (hereafter, HMC) formed in 1967, was a part of the South Korean Chaebol the Hyundai Group. In the last four decades, HMC managed to establish itself as a most prominent automaker producing reliable, technically sound and stylish automobiles and commercial vehicles. Headquartered in Seoul, South Korea, HMC opened a new chapter in the history of the Korean automotive industry by exporting its first proprietary model, the Pony, to Ecuador in 1976. In the 1980’s, HMC exported the Excel to the U. S. In 1991, HMC achieved technological independence by developing the first propriety engines and transmissions. Currently HMC has 78,539 employees around the world working in eight manufacturing plants, 12 RD centers, 5,300 dealerships and sales companies, and CKD plants. As of 2010, HMC established as a global automaker that produces more than three million high-quality passenger and commercial vehicles for sale in 190 countries each year. By enhancing Brand image through high quality products and unique marketing initiatives, once again, HMC is the first and the only Korean automaker to be listed in the Top 100 Global Brands in 2010 by Business Week and Inter-brand since it first entered the Top 100 Global Brands in 2005. Revenue and Profit: In spite of the persistent uncertainties in recent business conditions, HMC achieved some significant milestones in automaker markets in the past few years. In 2009, HMC succeeded in selling 2.4 million vehicles overseas, a meaningful accomplishment considering the global economic crisis. In particular, Elantra, Genesis, Genesis Coupe, Santa Fe, and Veracruz were recognized as the best sales and safest cars in their categories by leading agencies and the media in the US, also, HMC achieved cumulative export sales of 1 million cars in Africa. HMC pledges continuous growth by maximizing brand value in developed markets and expanding its sales capacity in emerging markets. In 2009, HMC posted 31,859 billion KRW in sales. Operating profits increased by 19% to 2,235 billion KRW. The operating profit margin increased by 1.19% to 7.02%. Net profit surged by 104.5% to 2,962 billion KRW and HMC’s total assets increased by 12% to 22,029 billion KRW. Despite increased sales and profits, tax payments to the central and regional government decreased due to corporate tax cuts and increased tax exemptions associated with increased RD investments. (Source: 2010 Sustainability Report, Based HMC operation result only, * EBITDA =EBIDTA : Earnings before interest, taxes, depreciation and amortization) In 2009, HMC jumped to third on the list of Fortune Korea Top 20 Korean companies and generated 91.46 trillion won in revenue, up 14.7 percent from the year 2008 and 2.97 trillion won in net profit, up 246.7 percent (Source: www. koreatimes.co.kr). In 2010, HMC announced global sales of 3,612,487 units (domestic plants: 1,730,682, overseas plants: 1,881,805). Sales revenue rose 15.4 percent to 36.8 trillion won from a year earlier as the company sold more cars and improved its product mix, while operating profit also rose 44.4% to 3.2 trillion won. Net profit increased 77.8 percent to 5.3 trillion won. Hyundai aims to increase sales and enhance brand image in 2011 by introducing new models specifically designed for local customers. In the next decade, HMC will continue in its endeavor to become a leading global automaker company through driving growth the development of world-class eco-friendly vehicles. HMC is striving to develop environmentally friendly vehicles including hybrid electric vehicles; fuel cell electric vehicle and pursuing two-prolonged â€Å"Blue Drive† initiatives which focus on fuel efficiency and the development of alternative fuel vehicles as a fundamental solution for climate change energy security. In the future, HMC focus on vehicles that run on various bio fuels. For the U.S. and Brazil markets, HMC develops flex-fuel vehicles that run on a mixture of ethanol and gasoline. In Europe, where diesel cars are sold in great proportion, the EU has a set of technical standards for diesel fuels with biodiesel content made of palm, rapeseed, soybean and other plant resources, and all HMC’s models are capable of running on diesel fuel mixed with biodiesel. Remarkable success since 2007: In 2007, HMC received National Environmental Management Awards President’s Prize and sales in US exceed 5 million units; its products i30 selected as Car of the Year in Australia; Accent (Verna) selected as Best Car of the Year by the Indian automobile magazine Overdrive; Azera (Grandeur) ranks first in J.D. Power and Associates’ consumer satisfaction survey. In 2008, HMC received Global Green Management Excellence Award, Global Reporting Initiative Award; it ranked first in National Customer Service Index (NCSI) for eighth year in a row, Avante (Elantra) exceeds 5 million units in accumulated sales; In 2009, HMC was selected as Best Company in terms of customer satisfaction in the automaker category by a consumer research group in China; it ranked Top 60 in Global Brand Value by Business Week and selected as Best Marketer of the Year in the US; Its product i30 and Grand Starex awarded as Best Cars in Australia for the second consecutive year; TAU engine selected as winner of US Ward’s AutoWorld 2009 10 Best Engines for the second consecutive year; received Presidential Prize at the 2009 Korea New Technologies Award. In 2010, HMC placed in the Top 100 Global Brands in 2010 based on a joint study conducted by Business Week and Interbrand and was named Carmaker of the Year by AM, UK’s leading auto trade magazine, in the AM Awards 2010. The TAU 4.6 engine was selected as a winner of the 2010 10 Best Engines of the US automotive media Ward’s AutoWorld for the second consecutive year. Corporate Responsibility Corporate Social Responsibility (CSR) was the key issue in company society relations. CSR has taken a core position of Hyundai Motor included three areas: trust-based management, environmental management, and social contribution. For trust-based management, HMC focused on labor relations enhancement, mutually beneficial cooperation with suppliers, ethics management and transparent management. As for environmental management, HMC proactively responded to global trends and environment regulations. For social contribution, HMC enlarged its capacity and obtained expertise to effectively carry out global social contribution projects and participated in volunteering programs, contributed to development of local communities. In 2007, HMC established the Hyundai Motor Global CSR Network with primary production and sales subsidiaries around the world and also laid foundations by promoting global CSR activities and by developing and opening the Global CSR Web site for information exchange. Challenge of sustainability: â€Å"Sustainable development satisfies the needs of the present generation without compromising the chance for future generations to satisfy theirs† Brudtland Report (1987). Enhancement of stakeholder value through achieving economic profits, environmental soundness, and the fulfillment of social responsibilities in corporate activities with a long-term perspective is the goal of sustainable management. To social and political sustainability, HMC has increase value to stakeholders through engagement and collaboration. To economic sustainability, HMC has responded to fast-changing demands of global customers by fully utilizing strategically placed production and RD facilities and fulfilled fundamental responsibility as a corporation by sharing economic value with various stakeholders including shareholders, investors, employees and suppliers. To environmental sustainability, HMC has tackled the twin challenges of climate change and energy security by developing green technology. HMC develops environmentally-friendly vehicles and the establishment of low carbon value chains to achieving reductions in greenhouse gas emissions. In addition, HMC has established a comprehensive hazardous materials management system and making effort to minimize impact on air quality. Climate change: Climate change is the most important issue to be tackled among five core Environmental Management Areas including Recycling and reuse, Air pollution, Hazardous materials, Environment Management System, Climate change. Since increased consumers’ preferences for low carbon products, therefore, HMC has invested a large amount of resources into the vehicle energy efficiency improvement technologies. HMC has established and implemented a comprehensive environmental strategy throughout the entire lifecycle of products. Its ‘Blue Drive’ is a strategy that focuses on fuel efficiency improvement of vehicles power by internal combustion engine and the supply of zero emission vehicles in the future. Facing to multiplied challenges of climate change, HMC has striving to develop vehicle that run on various bio-fuels and hybrid electric vehicles, fuel cell electric vehicle, environmentally –friendly vehicles and the establishment of low carbon value chains to achieve reduction in green house gas emission. As a first achievement, HMC is the world’s first LPG – Hybrid vehicle using proprietary technologies in July 2009 and release in the North American market and the domestic market in 2010. Engages with external stakeholders: HMC conducts business in an open transparent manner to earn and maintain the trust of all relevant stakeholders including shareholders and investors, customers, suppliers, government and communities. HMC have been sharing relevant information with all stakeholders via its sustainability report since 2003. HMC also tries to promote fair trade, mutually beneficial transaction with business its partners. With customers, HMC has been operating a customer service center that handles customer complaints and inquiries for improving customer satisfaction, reflect customer opinions about product and service by means of including regularly scheduled customer satisfaction surveys, customer services hotlines. The success of a surprisingly bold campaign with a new assurance program, which guaranteed customers to be able to return newly bought cars with no credit damage in the case they lose their income amid the still prevailing financial crisis. For suppliers, HMC created the Mutually Beneficial Cooperation Fund and a number of win-win supplier support programs designed to ensure shared growth with suppliers. In 2008, HMC signed a fair trade agreement with approximately 2,400 suppliers to further increase fairness and transparency collaboration with parts suppliers its essential in achieving high product quality in automobiles. HMC has made a sustainable effort to maximize shareholders and investors value through the increasing value of HMC by cash dividends – most important means of sharing company profits. In 2009, HMC declared cash dividends of 1,150 billion KRW per each common share. HMC also paid taxes to central regional government, local community and social distribution expense and launched tailored social contribution activities, organized an active employee volunteer service program which serves as the driving force for ‘Moving the world together’ social contribution campaign. In 2009, 25,851domestic employees participated in volunteer community service. In conclusion, HMC is more likely to achieve success in the long term by taking responsibility for the economic, social, ethical and environmental impact of its activities. Crisis Management In 2007, the antitrust agency of Korea fined HMC an amount of $ 25 million for violations in businesses. At the same time, Hyundai chairman Chung Mong-koo came before the court for corrupting from funds $ 96 million and damage more than $ 224 million from 2000 to 2006 to bribe officials for Hyundai facilitate urban expansion in southern of Seoul. This incident influenced a lot to the company, especially in long-term strategy, reputation and revenue. The global automotive markets which expanded rapidly over the past five years from 2002 to 2007 had sharply declines from the fall of 2008 in consequence of the financial crisis. Under extremely severe conditions, automakers run a race for survival in the global market. To respond to the crisis, HMC and other automotive manufacturers must solve liquidity problems urgently and reduction in production cost. And they also have implemented creative marketing strategies to entice reluctant consumers. The global financial downturn in 2008–9 affected European and Asian automotive manufacturers. The automotive industry was weakened by a substantial increase in the prices of automotive fuels linked to the 2003-2008 energy crisis which discouraged purchases of sport utility vehicles (SUVs) and pickup trucks which have low fuel economy. With fewer fuel-efficient models to offer to consumers, sales began to slide. By 2008, the situation had turned critical as the credit crunch placed pressure on the prices of raw materials. The result of the 2008-9 international financial crisis impact almost economic sectors and left a number of banks and other financial institution in severe difficulties, forcing some to collapse. As a result, inter-bank, corporate and personal lending was drastically reduces, share price fell, and all the companies found themselves in financial difficulty. The world economic downturn led to falling sale and profit, exchange rate and share prices and a shortage of credit finance for business and consumers, unemployment and social hardship. As a result, automotive industry is one of the first industries to suffer from the 2008-9 world recession. Clearly, consumers incomes were falling, business were cutting down on their purchases, credit was in short supply, thus consumers exercised caution and either bought a used car instead a new one. It is not therefore surprising that there was a significant fall in the demand for new cars. In some country, Government responded to the situation by offering financial incentives to persuade consumers to buy new cars. So HMC focused on making effort to make economizing fuel vehicles with minimize cost to respect customers need and have implemented creative marketing strategies to entice reluctant consumers as most experienced double-digit percentage declines in sales. Although the world’s automotive market remains sluggish, and some of the world’s largest carmakers have been sorely tested on how to survive, HMC has weathered the global crisis relatively well. In the midst of the global crisis, Hyundai planned a standalone strategy, because their product line up is not expected to synergistic effects through MA. Despite difficult market conditions, in 2010, HMC succeeded in increasing its sales and strengthening its internal capacity. Strategy over the past few years HMC developed five mid–and long–term strategies: global management, higher brand values, business innovation, environmental management, and strengthening product competitiveness. Especially, HMC selected environmental management as to meet the needs of markets and to fulfill stakeholder expectations and the society. HMC also intends to promote sustainability development and preservation of the environment. Blue Drive is HMC’s low carbon green technology strategy designed to reduce CO2 emissions by boosting fuel efficiency. Blue Drive also stands for HMC’s technology development strategy focus on improving fuel efficiency of internal combustion engine-based cars, and with an ultimate goal of developing vehicles with zero CO2 emissions. HMC has focus on three technology areas for improving energy efficiency of the power-train energy efficiency improvement, minimizing energy loss, and creating renewable energy in order to lower CO2 emissions from vehicles. In Europe, HMC succeeded in low CO2 emissions products including the Blue Drive variant of the i30 diesel model, Blue Drive variants, the i10, the i20, the i30, and the Tucson ix blue. In the US, HMC is the most fuel efficient brand with an average combined (passenger vehicle-light truck) fuel efficiency. In the domestic market, a great number of vehicle models including the Click(Getz), the Verna(Accent), the i30, the Avante (Elantra), the Tucson(Diesel model), and the Santa Fe(diesel model) earned a first class energy efficiency. HMC has expanded its vehicle lineup by including more luxury sedans and eco-friendly cars in order to keep up its strong performance in the U.S. market. HMC sold more than 500,000 vehicles in the USA in 2010 and it is the highest number of cars it has ever sold in a single year since tapping into the U.S. market in 1986. HMC have been aggressively pushing into China as the country has become the world’s largest automobile market. As its first achievement, HMC launched the world’s first LPG-Hybrid vehicles, the Elantra LPi Hybrid, which is developed using proprietary technologies in 2009 and released the Sonata Hybrid in the North American market in 2010 and in the domestic market in 2011. HMC’s high product quality innovation was proven in engine technology—the heart of an automobile. Its technical capabilities and the development of high fuel efficiency-related technologies become a true global environmental leader. Under the philosophy of putting quality first, over 5% of its revenues are invested into RD to secure world-leading quality, marketability and technology. HMC has already taken environmentally-friendly investments and research that have resulted in a range of innovative breakthroughs from fuel-saving technology to new materials and responsible treatment of end-of-life vehicles. By adding blast furnaces to its operations, HMC was able to complete what it calls â€Å"resource circulating business structure† that goes from molten iron to automobiles, and from scrap back to unprocessed steel. Since its first concept model â€Å"Blue Will† in 2009 with light-weight bodies made of carbon-fiber, a panoramic sunroof with solar cells minimizing power loss, HMC will launch plug-in hybrid (PHEV) and electric vehicle (NEV) are optimized for in-city use, especially well-fitted for commutes and short trips. Innovative vehicles that pioneer changed in the auto industry through continuous investment in RD and advanced dealer network programs and highly recognized for its sharp sales increase, first-rate dealership programs, and growth in brand awareness. HMC beat other candidates including Ford, Jaguar, and Landrover to be selected as the winner of the coveted title. Vision, Mission, Goals Hyundai Motor Company has grown rapidly to become one of the largest automobile companies with global top five production capability and superior quality, reaching a tipping point the qualitative approach, bringing bigger ideas and relevant solutions to its customers. At this opportunity to move ahead, HMC have developed a new brand slogan that encapsulates the willingness to take the next big step up. Led by new slogan and the thinking behind, HMC will become a company that keep challenging ourselves to open up new possibilities for people and the planet. HMC established a long-term vision of â€Å"Innovation Humanity† and selected five core strategies directions including a global orientation, respect for human values, customer satisfaction, technology innovation and cultural creation. HMC desires to create an automobile culture of putting customer first via developing human–centered and environment–friendly technological innovation. HMC vision is to secure world-best innovations and raise its profile as a premium automaker. Its quest also includes making this world a better place for all by popularizing next generation eco-friendly technologies and creating a new auto-culture through people-centered technologies that move customers hearts. HMC goal is to become a respected global company that contributed the creation of an automobile consumer culture that respects customers need and innovation in environmental technology that minimize the environmental impact of automobile. HMCs success, watched closely worldwide, is a result of continuous and aggressive innovations that have been implemented on behalf of our customers. HMC considers its most important mission to bring the enjoyment of elegance and confidence to its customers, rather than just selling products. Hyundai strives to bring its customers luxury and style. Therefore, Hyundai will continue to stabilize its global management by establishing an effective cooperation system among production bases around the world. HMCs management goal is customer–oriented management and continuous execution of global management. Motivation employees HMC has human resource management policy with fairness and reasonableness as the guiding principle, ensuring protection of human right and maximizing employees’ satisfaction at the work place. HMC does not discriminate against its employees or job applicant on the basis of race, age, religion, sea, nationality, physical characteristic or any other facture for all personal decisions including recruitment, placement, evaluation, compensation, training, rank or promotion. HMC respect the Universal Declaration of Human Rights and fully comply with related laws and international labor practice norm including the UN Global Compact principles and ILO guidelines. HMC provide fair compensation for all work at our business sites according to the work guidelines, compensation policy and relevant laws. Also, HMC have created an ethics charter that calls for respect of the right of all workers. HMC focus in increasing health service for workers in the older age group, implementation of policies to recruit and support female employees and provision of more employment opportunity to non-Korean nationals and people with disability improve working conditions for female workers, HMC offer benefits including monthly days off and 90 day maternity leave. Some operation sites offer childcare centers for working mother as well. HMC ensures employees safety pre-assessment, accident prevention activities, increased investment in safety-related facilities and safety training. Therefore, HMC pursue a long-term relationship that is mutually beneficial to both employees and management. Desirability as an employee I would like to work for HMC because HMC is a leading global automaker with competitive edge in product quality, innovation, appealing to the ever-growing emerging markets, as well as the rapidly changing global market. Moreover, it contributes to society, as part of our global corporate responsibility, as well as to secure leadership for future growth through environmental management, forging the way for green growth and the development of world-class eco-friendly vehicles. Actually HMC is an ideal work place, safe and healthy working environment because of its human resource management policy with fairness and reasonableness to ensure human right protection and maximizing employees’ satisfaction. HMC regards employees as important assets for corporate growth so it has established the HMC ethics charter, the employee code of conduct, and the Guideline on Ethical Business Practices to help employees make the correct decision in the business conduct. It endeavors to provide all employees with environment training program. HMC is stepping up efforts to ensure fairness in HR decisions, to introduce a rational compensation system, to collaborate with the UN Global Compact for human rights protection, talent development, welfare improvement, and health and safety enhancement. References: Main sources: Hyundai Motor Company. Available from http://worldwide.hyundai.com [Accessed 4th March 2011] The road to Sustainability-Hyundai. Available from www.worldwide.hyundai.com/Web/C_Sustainability_down/2010_reports.pdf [Accessed 8th March 2011] The road to sustainability Hyundai. Available from worldwide.hyundai.com/Web/C_Sustainability_down/2010_reports.pdf [Accessed 8th March 2011] Global Crisis Enables Hyundai to Grow Bigger, 04-21-2010 19:37, Available from http://www.koreatimes.co.kr/www/news/biz/2010/11/294_64620.html [Accessed 9th March 2011] Hyundai Motor joins top 3, in Fortune Korea 500; 10-24-2010 18:54. Available from http://www.koreatimes.co.kr/www/news/biz/2011/02/123_75131.html [Accessed 9th March 2011] PART 2: Critically discuss the contention that â€Å"Leaders are born not made† â€Å"Leadership is the process of influencing people towards achievement of organization goals† (Naylor J. (2004) 2nd ed. Management, Harlow. Prentice-Hall)

Egypt Essay :: essays research papers

Throughout the ages religion has been an important part of man’s life. Even today many peoples lives are influenced by the teachings of their religious backgrounds. In ancient Egypt however, religion was the single most important influence on the civilization. It touched virtually every aspect of Egyptian life.   Ã‚  Ã‚  Ã‚  Ã‚  One of the most obvious examples of this is in Egyptian burial. Burial and the preservation of the body was a very important aspect of the culture. It was due to the fact that they believed that the better your body was preserved the happier you were in the afterlife. Even the embalmers had to shave all their body hairs so they would not contaminate the dead person. The person had their major organs removed and preserved in canopic jars, which were watched by the designated gods. Also, the casket the person was buried in always had a likeness of the person on the front. This was for the Ka to recognize when it came back to the body at night. Also, the person was buried with perfume jars and food to take with them to the afterlife. Obviously death, burial and the afterlife, was a major part of Egyptian life that was touched a great deal by religion.   Ã‚  Ã‚  Ã‚  Ã‚  Another major aspect of Egyptian life that was heavily influenced by religion was art. Almost all paintings and other forms of art were either done for the gods or representing the gods or pharaohs. Artists were even considered some of the highest members of society because they did work for the deities. An interesting fact about Egyptian art was the awkward position the bodies were in. All people depicted in the artwork were standing sideways with every body part visible. No one knows for certain why the people were depicted that way, but it is common belief that it was necessary to show all body parts so the gods wouldn’t get angry for being misrepresented. Another interesting observation about Egyptian art is that it stayed, virtually, the same from the Old Kingdom into the New Kingdom. This was because they thought what they did was perfect and to change it would change their perfect life and afterlife. This proves that Egyptian art is another aspect of the culture that was greatly influenced by religion.   Ã‚  Ã‚  Ã‚  Ã‚  Finally the last and most important aspect of the culture that was affected by religion, was everyday life.

Ethics and Social Responsibility Essay

Ethical issues are constantly around us be it in school or at work. These issues represent one of the most fundamental aspects in the working environment in relationships or interactions between different stakeholders. The relationships between employers and employees or clients are a vital factor which drives the company’s objectives and goals. An organization’s social responsibility to the surrounding community is also, a vital factor through creating a favorable climate, for the smooth running of the company within the society. Social responsibility recognizes the values and traditions encompassed by the community. Moreover, ethical issues may surround an institution in its daily operations, and consequently require professional consultation, regarding options which are appropriate in tackling a specific issue, on the basis of ethics and professional standards. Introduction Business ethics and social responsibility are found in many of the organizations that are adopted, by the management which enable the company or firm, to conduct its business operations upholding the welfare and wellbeing of its employees and the clients it serves. By embracing ethics, codes of conduct and social responsibility in the businesses processes, an organization becomes transparent to its stakeholders and shareholders, thereby creating an image of competence and accountability in the actions it undertakes. Moreover, there has been an increase in the competitive nature of business in the modern society, where various and diverse businesses have flooded the market. This competitive environment requires businesses, to redefine their objectives and goals in respect to ethics and corporate responsibility, in order to have a competitive advantage over rivals. Many organizations have failed in business ventures because of not embracing appropriate ethical behaviors, towards employees, clients and the society. Ethics are primarily dictated by individual or corporate beliefs encompassing social concepts in the day to day running of an organization. In addition, ethical issues vary among businesses, individuals, cultures or in particular circumstances. The aim of this study is analyze the importance of ethics and social responsibility, in business operations with companies such as the Wal-Mart Store, and how ethical issues are handled so as to remain competitive in their market segment. Ethics and Social Responsibility Business ethics are vital to the operation processes in a company in relation to both internal and external factors, which influence the success of the business. A cohesive interaction between customers and a business is vital, for the optimal performance of the company. This would comprise of customer satisfaction, employee motivation and positive business attitudes that would enable a company to successfully deliver its services or products. Formulation of code of conducts and ethics enable an organization to run its business operations, without overlooking the needs of stakeholders (Lisa, 2005 p. 24). Employees in any given business or industry, play a major role in working towards the accomplishment of goals and objectives set by the organization’s management. The relationship between management at all levels with the employees, influences the overall output of the organization, and consequently affecting its relations with customers and performance in the competitive market environment. Ethics and codes of conduct can be defined as principles or standards set by the organization’s management, which illustrate the expected behavior of employees and the management while conducting business, on behalf of the company. They also encompass the beliefs of the organization influenced by their goals and objectives. These conducts may entail principles such as treating customers as a priority, by serving them with a positive attitude while upholding integrity, respecting other employees, striving for excellence, and optimum service to customers. Customer satisfaction is put as the key in the overall corporate responsibility for the optimal performance of the business (Velasqez, 2005 p. 35). A company can also create a code of ethics, where both the management and the employees should follow the set guidelines, while deviation would call for actions against the individual. They help employees to recognize situations where certain actions are deemed as a violation to the company’s ethics. In addition, business ethics influences the organizational culture of a company, where employees undertake behaviors that foster the success and growth of the company. However, even with set code of conducts, ethical behaviors and social responsibility of an organization, the bottom line dictates that trusting in an individual’s good judgment of what is wrong or right, will affect the image and performance of the organization. Therefore, management and employees’ behaviors, culture and attitudes are crucial as they depict the ethics of the company which would ultimately, influence the perception and attitude of clients towards the organization. Effective organizational ethics entail that, firms lead with integrity at the workplace, marketplace and in the community. Social responsibility encompasses business ethics and company practices that govern how, the company runs and its role to the community. Corporate social responsibility has become a key initiative a crucial tool for growth in a company or industry. Multinational corporations and successful businesses have adopted this powerful tool in various countries across the globe. With rapid globalization and advancement in technology, organizational ethics and social responsibility must be flexible to encompass new aspects, to the changing customer needs while still maintaining integrity and accountability, in the competitive market environment (Hartley, 2004 p. 55). Social responsibility definition varies across businesses and groups, depending on the perception towards their situations or circumstances, but generally social responsibility illustrates the role of companies to conduct their business operations, in a way that promotes human welfare and respects individuals’ rights, whether at the work environment or within the society. Additionally, the two concepts of social responsibility and ethics work hand in hand in order to provide, benefits for all stakeholders. Moreover, difficulties or challenges that impede successful implementation of social responsibility or business ethics, by an organization should be mitigated before effective changes can be realized. The Wal-Mart Company Wal-Mart has grown to be one of the largest retailers in the world, when it started out as a single discount store more than five decades ago. It has dominated the retailing business with its numerous stores and clubs that are associated with the organization. Moreover, even through the transformations over the years, Wal-Mart has been able to uphold its integrity and culture of ethics constantly (Entine, 2008 p. 22). Ethics and social responsibility as put by the Wal-Mart’s management, has been able to define the company from its inception, and consequently influences how the organization associates with its employees, customers, suppliers and the general community. Wal-Mart has been using statement of ethics in their entire business processes, which define the types of conduct and attitudes that it upholds for its stakeholders. The business conducts create an atmosphere of fairness, honesty and the aspect of legality in the work environment. Codes of conducts influence the overall organizational culture to adopt behaviors and working processes that enhance the performance output of an organization. Wal-Mart being in the service industry, customer relations has been its priority without overlooking the interests of employees, shareholders and the surrounding community needs. The retailing business has been striving to make considerable changes, through reviewing its business process in order to attain sustainability and commitment towards an ethical and social responsible culture (Nicholas, 2009). This been attributed to the rapid changing external environment in ethics and business operations, constantly requiring organizations to redefine their ethical standards and principles, that put to test their sense of responsibility, integrity, fairness and honesty. Consequently, ethics at the workplace become a vital factor that influences the overall performance of the company, coupled by responsibility and accountability. The level of ethical issues has grown in significance over the years, where unethical behaviors such as those observed in the Enron Company, resulting to loss of jobs and consumer confidence. This is detrimental to any organization as it losses its market credibility, leading to its downfall. Moreover, stakeholders in an organization who include customers, shareholders and employees are always being observant of internal decisions made, and how they impact on them. In addition, governmental agencies are constantly becoming involved and monitoring ethical issues in various organizations, with pressure directed for enactment of laws from citizens and shareholders that protect them, which may follow unethical practices in an organization. Social responsibility at Wal-Mart has enabled it to realize significant savings, amid criticisms of not being accountable towards its employees. The company adopted a program, scorecard, to enable it review how products are manufactured, merchandised and the availability of recyclability in its goal towards green sustainability. In such cases, the company has been able to cut costs in operation and conserving energy, but it is yet to reach total sustainability and social responsibility in its operations. Observers have appreciated the organization’s intentions, but the company has many challenges to overcome, to become a business entity that is fully environmental sustainable, coupled with the influence it has had upon suppliers, consumers and employees. The success of the giant retailing store has not been smooth sailing, as it has rubbed many of its employees and clients in the wrong way. Wal-Mart has been at the center of criticism, regarding its unethical business behaviors at one time or another. Some of the policies adopted by the retailing business have, had a negative impact and image in the corporate scene (Zimmerman, 2005). Example, their strategy of outsourcing for manufacturers have led to loss of jobs in United States. In addition, the organization’s policy towards suppliers based on Wal-Mart’s prices, puts pressure the suppliers that results to closures of plants in the US and job layoffs. These aspects have consequently raised the question, whether the organization is an ethical company in the society. Wal-Mart’s problems can be attributed to the focus of management, towards the company’s growth and therefore neglecting important issues as brand image, social responsibility, and ethics in business operations. Additionally, communities in the US have been debating whether to allow the Wal-Mart retailing business, to operate in their towns or cities. This comes amidst the perception of the organization and how its influences the community, customers and employees through its business operations. Protests from these communities culminate from the fact that, Wal-Mart buys its goods from Third World countries that it deems cheaper, instead from American suppliers causing those businesses to close down. Issues stem from sustainability and ethics adopted by the retailing giant, which are perceived by the communities to be wrong. More so, the company has had its fair share of bad business practices observed in discriminatory promotion and hiring, and forced overtime among other issues. A recent incident where an announcement that was made in a New Jersey Wal-Mart store, that all black people should leave the shopping store over the public-address system, rubbed the shoppers with a negative perspective infuriating most who were shopping at the time. Some of the workers threatened to quit until the matter was resolved, which caught them by total surprise. The management to its defense, stating they were doing everything to determine the person responsible, but the damage had already been done. Moral evaluations from the communities and critics have put the organization into the limelight, for its unethical business practices. However, Wal-Mart has positive attributes towards the community, by being a retailer that focuses on price as their business model (Cris, 2006). Consumers are sensitive to price and Wal-Mart ensures that it caters to all levels of consumers. The organization has also been good at delivering products, which are decent at varying prices. Conclusion Wal-Mart has a potential future, but it has to address some of their business ethics, corporate citizenship, and corporate social responsibility in order to stay ahead of its major competitors, compounded by the intense public scrutiny of the organization’s business practices. Moreover, it has all the components and ingredients in resources both organizational and financial that will propel it to success. There is no doubt concerning the potential rewards and risks that are attached, to a company’s ethical considerations in the context of business practices and operations. Integrity, accountability and responsibility do matter to stakeholders in a company, encompassing the society on the conducts and decisions made by such a company. Organizations need to strive towards the balance of sustainability and corporate decision making, which affects them in the short and long term consequences. References 1. Cris, M. (2006). The Business Ethics: Saying Nice Things About Wal-Mart. The business ethics blog. 2. Entine, J. (2008). Wal-Mart: Ethical Retailing. The question of Wal-Mart’s Social Responsibility. 22-24. 3. Hartley, R. (2004). Business ethics: Mistakes and successes. John Wiley & Sons. 54-65. 4. Lisa, R. (2005). Corporate responsibility and public relations. Ethical Corporation. 24. 5. Nicholas, S. (2009). Wal-Mart lawyer shares experiences and perspectives. Law Weekly. Georgetown University Law Center. 6. Velasqez, M. (2005). Business ethics, a teaching and learning classroom edition: Concepts and cases. Prentice Hall. 35-36. 7. Zimmerman, A. & Bandler, J. (2005). Federal officials asked to probe Wal-Mart firing. Wall Street Journal.

Legal and institutional obstacles - Free Essay Example

Sample details Pages: 7 Words: 2160 Downloads: 8 Date added: 2017/06/26 Category Law Essay Type Review Did you like this example? Research Proposal EFG Ajayi Abstract It is settled that of all the modes of transportation, viz., air, land and sea, carriage of goods by sea is the most economical way to take sizeable quantities of cargo over long distances. The development of special vessels of immense sizes and propulsion to carry various cargoes has continued to make transportation by sea more attractive. The economic principle of comparative advantage and globalization has given impetus to international trade and commerce and carriage of goods by sea is the means towards the actualization of international trade which of course, is indispensable to mankind; despite the advantages attributable to sea carriage, there are international concerns regarding the multiplicity of legal and institutional hurdles faced by cargo interests with respect cargo loss or damage; the myriad of rules that are impediments to equitable cargo claims is the issue which this study shall critically examine as well as proffer recommendations to frontally reverse the extant inequality between cargo interests, carriers and other stake holders in the global contract of ocean carriage. 1. Title: Legal and institutional obstacles to marine cargo claims against shippers, consignees and parties claiming under their title. 2. Background and outline of the research problem: The fact that the exchange of goods and services is an important aspect of human life is beyond controversy; that activity dates back to history as attested by à ¢Ã¢â€š ¬Ã…“trade by barterà ¢Ã¢â€š ¬Ã‚  during the stone ages; in modern times, countries of the world are not equally endowed with human and natural resources, more importantly, the economic principle espoused by comparative advantage on one hand, the free market economy and globalization on the other, has made international trade and inter-governmental commercial transactions, an indispensable aspect of human life. The maritime industry could apt ly be described as the à ¢Ã¢â€š ¬Ã…“gate-way to the global economyà ¢Ã¢â€š ¬Ã‚  due to volume of goods carried by sea which accounts for the bulk of trade and commerce between nations of the world. To lend credence to the above assertion, it is necessary to emphasize the fact that Trade and Commerce have become internationalized which of course makes carriage of goods by sea, indispensable. The sea transport industry plays a major role in world economy; the industry is an engine for growth and a generator of quality human life, a fundamental element to maintain the vitality of sea transportation in order to reap the immense benefits thereof, is to ensure equitable and a balanced terms of contract to the parties and stake holders involved in the global transaction. The extant inequality amongst the parties in ocean transportation transaction is the principal issue which this research sets out to critically examine. 3. Literature review and reasons for choosing the topic As highlighted above to the effect that comparative advantage and globalization has internationalized trade and commerce, carriage of goods by sea is the veritable vehicle or conduit pipe towards the actualization of international trade, however, there are concerns across the globe regarding the almost insurmountable legal and institutional hurdles faced by cargo interests when cargo loss or damage arises; the multiplicity of the rules militating against successful cargo claims either by litigation or through Alternative Dispute Resolution methods are diverse, nay, various jurisdictions apply various rules embodied in the contract of ocean carriage. More importantly, though it is an unassailable fact that international trade is facilitated through shipping but there is no uniform rule regulating the global contract of sea carriage, in effect, rather than have one rule applicable internationally, three carriage regimes namely the Hague, Hague-Visby and Hamburg are in operation de pending on whichever of the rule a cargo carrier chooses; cargo interests thus have no choice than abide with the carriersà ¢Ã¢â€š ¬Ã¢â€ž ¢ choice, be that as it may, the practical application of the three rules concurrently had fettered and continue to do incalculable damages to free trade, it engenders uncertainty and prompts avoidable litigations worldwide. It is on this note that this research intends to embark on a beneath-the-surface analysis of marine cargo claims so as to bring to the fore the anomalous state of affairs, ipso facto, fill the knowledge interstitial and proceed to make recommendations which hopefully, would redress the shortcomings of the current global maritime law and practice. It is necessary to earmark at this juncture that the à ¢Ã¢â€š ¬Ã…“Rotterdam ruleà ¢Ã¢â€š ¬Ã‚  which is the latest international effort targeted at uniformity and in consonance with modernity and which to a large extent, addresses some of the apparent shortcomings of the outda ted but extant international carriage regimes, that is the Hague, Hague-Visby and Hamburg rules is underway, but not yet in force. 4. Research questions In order to gain insight into the lopsided state of international carriage laws, the following questions shall be investigated in the course of this research: What is marine cargo claims, what warrants them, what is their nature, source, scope and complexities; why is the onerous burden of proof placed on cargo owners when most often, cargo is not in their custody but in the custody of carrier or port authorities; what is à ¢Ã¢â€š ¬Ã…“documentationà ¢Ã¢â€š ¬Ã‚  à ¢Ã¢â€š ¬Ã…“long roomà ¢Ã¢â€š ¬Ã‚  à ¢Ã¢â€š ¬Ã…“port congestionà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“port surchargeà ¢Ã¢â€š ¬Ã‚  in maritime transactions, does the foregoing concepts delay cargo shipping and delivery and do they add to the cost of shipping which are ultimately on-passed to hapless consumers and end users of shipped goods, what is à ¢Ã ¢â€š ¬Ã…“nautical fault defenseà ¢Ã¢â€š ¬Ã‚  is it in the interest of cargo or the carrier, what is à ¢Ã¢â€š ¬Ã…“physicalà ¢Ã¢â€š ¬Ã‚  à ¢Ã¢â€š ¬Ã…“fortuitousà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“externalà ¢Ã¢â€š ¬Ã‚  loss or damage in marine policies, does the application of à ¢Ã¢â€š ¬Ã…“utmost good faithà ¢Ã¢â€š ¬Ã‚  principle in marine insurance contracts engender a balanced relationship between the insurer and insured; it is settled law, that where there is a loss there is a claim, but does the practical application of restitio in integrum concept in marine insurance really effective and in the best interest of cargo owners? What are obstacles to marine cargo claims, does obstacles to marine cargo claims inhibits trade between persons, organizations and nation-states and if the answer is in the affirmative, what efforts are being made internationally to achieve a uniform rule with respect to mitigating the negative effect of obstacles to marine cargo claims o n international trade and commerce, what is à ¢Ã¢â€š ¬Ã…“carriersà ¢Ã¢â€š ¬Ã¢â€ž ¢ limitation of liabilityà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“package limitationà ¢Ã¢â€š ¬Ã‚  in whose interest were they inserted into contract of sea carriage and what is their effect on cargo interest, why is it that the carriers and insurers are not held liable for leakage and breakage or for any loss caused by rats or vermin and what is forum non convenience? What is the length of time allowed to initiate cargo claims; is there uniformity in the time frame allowed internationally, is the said time length equitable or justified in all circumstances warranting their continued imposition, and have they improved or worsen the economic and socio well-being of cargo interests; what is the meaning of pre-action notice, what is their purpose or utility in maritime transactions, do they frustrate genuine cargo claims and do they deny litigants of their constitutional right of access to courts, why i s the economic loss occasioned by delay of ocean going vessels foreclosed to claims, is this the law or custom and practice and for whose benefit is this clause inserted into ocean carriage contracts? Are there other dispute resolution mechanisms aside from litigation to resolve marine cargo claims; if so, are the said mechanisms equitable and justifiable in all circumstances, are there situations where judgment debtors default in complying with court judgments and outcomes of arbitral awards especially when the offending party is out of jurisdiction, what is the meaning of à ¢Ã¢â€š ¬Ã…“exclusive jurisdiction clauseà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“choice of location for Arbitration sole determination by the carrier,à ¢Ã¢â€š ¬Ã‚  does the right of access to court of choice by cargo interest or Arbitration hampered by à ¢Ã¢â€š ¬Ã…“exclusive jurisdiction clauseà ¢Ã¢â€š ¬Ã‚  and à ¢Ã¢â€š ¬Ã…“unilateral choice of location for Arbitration by the carrierà ¢Ã¢â€š ¬Ã‚ , does enforcement of arbitration clauses in support of bill of lading go against third parties claiming under the title of shippers and consignees especially where there are sub-bailment to which the concerned shipper or consignee is not a party ab initio, and does the time tested doctrine of law: verba fortius acci piuntur contra proferentem apply to maritime cases? 5. Research design The research is non-empirical; it shall be based on conceptual analysis and the review of relevant literature; and maritime trade by its nature being a cross jurisdictional transaction, the study shall majorly be premised on comparative and critical analysis of established legal principles, rules and doctrines. 6. Research methodology Qualitative research approach shall be used the research being a non-empirical one; for the requisite data and information, Conventions, Treaties, Case Law Reports, Journals, Internet, Articles, Historical records, and Textbooks on Maritime Law and global trad e shall be used. The contents of the above materials shall be subjected to critical analysis. 7. Structure of Thesis Chapters Chapter 1 : Introduction Chapter 2 : Obstacles arising from carriersà ¢Ã¢â€š ¬Ã¢â€ž ¢ acts Chapter 3 : Obstacles attributable to port authorities, warehouses, cargo custodians etc Chapter 4 : Obstacles posed by insurance companies for shippersà ¢Ã¢â€š ¬Ã¢â€ž ¢ and consigneesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Chapter 5 : Obstacles for third parties claiming under shippers and consignees titles Chapter 6 : International trade and Maritime Law Chapter 7 : Steps towards unification of International Maritime Law Chapter 8 : Conclusion Delineations and limitations This research shall only consider cargo claims carried via the sea in containers and covered by the carrierà ¢Ã¢â€š ¬Ã¢â€ž ¢s Bill of Lading, in other words, the contribution will not consider cargoes carried in bulk or in any other form(s) even if such cargoes are covered by Bill o f Lading. 8. References 8.1: Legislation Admiralty Jurisdiction Procedure Act, 1991 Laws of the Federation of Nigeria Admiralty Jurisdiction Procedure Rules, 1993 Laws of the Federation of Nigeria Athens Convention on the carriage of passengers and their luggage by sea 1974 and 1976 Protocol Convention on Limitation of Liability for Maritime Claims, 1976 Instituteà ¢Ã¢â€š ¬Ã¢â€ž ¢s Cargo Clause (All Risks) International Convention for Safe Containers, 1972, as amended International Convention on Limitation of Liability 1957 Marine Insurance Act, 1906 Laws of United Kingdom Merchant Shipping (Liability of Ship-ownersà ¢Ã¢â€š ¬Ã¢â€ž ¢ and others) Act 1958, Laws of UK New York Convention Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976 The Carriage of Goods by Sea Act Cap 44 of the 1990 Laws of the Federation of Nigeria The Nigeria Ports Act, 1999 The Hague Rules (1924) The Hague-Visby Rul es (1968) The Hamburg Rules (1978) The Rotterdam Rules (2009) 8.2: Case Law Air-cool Metal Industries (Nig.) Ltd V. Nigerian Ports Authority (1974) NSC Vol. 1. Alluvials Mining Machinery V SStowe (1922) 10 L Rep. 265 Asia Trading Co. Ltd V Nigeria Ports Authority (1983) NSC Vol. II Bandrett V Hentigg (1816) Holt N. P. 149 British South Africa V. Compagnia De Mozambique (1893) A. C. 602- p. 17 Broadline Enterprises Ltd. V. Monterey Maritime Corp. (1995) 9 NWLR 1 Castellain V. Preston (1883) 11 Q B D 380 Commercial Union V. Lister (1874) 9 Cg. App 483 Container Trans Intl V. Oceanus Mutual Underwriting (CTI) (1984) I Lloyds Rep. 476 Demetraides Co. V. Northern Assurance Co. (1926) 21 LL.L Rep. 265 Firemanà ¢Ã¢â€š ¬Ã¢â€ž ¢s Fund Insurance V Tropical Shipping (2001) CA Gulfstream Cargo Ltd. V. Reliance Insurance Co., The Papoose (1997) I Lloyds Rep.178 Mareva Compania Naveria S. A, International Bulk Carriers Ltd (1975) 2 Lloydà ¢Ã¢â€š ¬Ã¢â€ž ¢s Rep. 509 Midland Railway Company V Local Board District of Withington (1882) Q.B.D.788 at 794 Nigeria Cement Ltd V. Nigeria Railway Corporation Anor (1992) 1 NWLR Pt. 220) 747 Nigeria Ports Authority V Construzioni (1974) 12 SC 81 Pan Atlantic Insurance Co. Ltd. V. Pine Top Insurance Co. Ltd (1994) 3 All ER Provincial Ins. Co. V Morgan (1933) AC 240, contra proferentem per Lord Russel at p. 250 Sonnar (Nig) Ltd. Anor. V. Patemereederi M.S. Norwind Ors (1987) 9 11 S.C. 121 Spliethoffà ¢Ã¢â€š ¬Ã¢â€ž ¢s Bevrachtingskantoor B. V. V A.G of the Federation and Ors (1988) FHC Thames and Mersey Marine Ins. V. Gunford Ship Ltd (1911) A. C. 529 The Bold Buccleugh (1851) 13 ER 884 P. 890 The Fehman (1958) 1 W. L. R. 159 The River Rima (1988) 2 Lloydà ¢Ã¢â€š ¬Ã¢â€ž ¢s Rep 193 The Tolten (1964) 2 All E. R. 370 West minister Bank Ltd. V. Edwards(1942) A. C. 529 Yorkshire Insurance Co. Ltd V Nisbet Shipping Co. Ltd. (1961) 2 All ER 408 8.3 : Literature Books Brown, Robert H.: Marine Insurance Volume 2. Cargo Practice 5th Ed. ISBN 13: 978-1-85609-132-9 January 1996 Bernstein (1977): Handbook of Arbitration Dispute Resolution Practice, 4th Edition, Sweet Maxwell, 2003 Christopher Hill: Maritime Law, 4th Ed. Lloydà ¢Ã¢â€š ¬Ã¢â€ž ¢s of London Press, 1995 E. R. Hardy Ivamy: General Principles of Insurance Law, 5th Ed. London: Butterworth Co 1986 Halsburyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law of England 4th 5th Edition, edited by Rt. Hon Lord Mackay, LexisNexis Butterworth, UK, 1991 Hare, J: Shipping Law and Admiralty Jurisdiction in South Africa. 2nd Edition 2009 ISBN 9780702179464 B. Harnett, The Doctrine of Concealment: A Remnant in the Law of Insurance, 15 Law Contemporary Problems. 391-414 (1950) Prof C. M. Schmitthoff: The Export Trade 7th Edition, The Law and Practice of International Trade, London, 1980 Prof. Oyerokun: Insurance Law in Nigeria, IQRA Books, Nigeria 2001 Roberty Matthews Paul Ol iver: Marine and Aviation Insurance London, 1988 Shipping Law: Robert Grime Sweet Maxwell (1995) William Tetley, Maritime Liens Claims, 2nd Edition 1998 William Tetley: International Maritime Admiralty Law January 2003 Editions Yvon Blais ISBN 9782894516126 Journals Admiralty and Maritime Law Guide: Circuit Court Admiralty Cases All English Report Australian and New Zealand Maritime Law Journal International Journal of Insurance Law Journal of Maritime Law and Commerce Lloyds Law Report Internet www.imo.org 1 Don’t waste time! Our writers will create an original "Legal and institutional obstacles" essay for you Create order