...BUSINESS ETHICS GROUP ASSIGNMENT WHAT LIES BENEATH THE BEAUTY Adityo Prasidi (1340000582) Cinthya Natalia (1340001244) Jeannie Purnamasari (1340001175) Karina Rizki (1340001130) Niltha Mathias (1340000462) Oktavius Ivoni (1340000771) Regvred Reinaldo (1340000784) Talita Anggreni (1340001023) TABLE OF CONTENT WHAT LIES BENEATH THE BEAUTY 1 CHAPTER 1 BACKGROUND: UNILEVER 2 1.1 Company Background: Unilever 2 1.2 Overview of Unilever Indonesia 3 1.3 Unilever Indonesia Foundation 3 1.4 Overview of Dove Products 4 1.5 Environmental Record 5 CHAPTER 2 CASE STUDY: UNILEVER VS GREENPEACE 7 2.1 Indonesia Palm Oil Plantation 7 2.2 Unilever Palm Oil Suppliers 11 2.3 Environment Destruction Caused by Palm Oil Plantations 14 2.3.1 Deforestation 15 2.3.2 Destruction of Orang Utan Habitat 17 2.4 The Impact to Unilever 18 CHAPTER 3 CASE ANALYSIS 19 3.1 Ethical Theory 19 3.1.1 The Stockholder Theory 19 3.1.2 The Stakeholder Theory 20 3.1.3 The Social Contract Theory 20 3.2 Triple Bottom Line 21 3.2.1 People 21 3.2.2 Planet 22 3.2.3 Profit 22 3.3 Environmental Issues of Business Ethics 22 3.3.1 Business and Ecology 23 3.3.2 The Ethics of Environmental Protection 24 3.3.3 Who Should Pay the Cost of Environmental Damage 24 3.3.4 Regulation 24 3.3.5 The Value of Nature 24 3.4 Ethical Issues 25 3.4.1 Environment Destruction 26 3.4.2 Violating the RSPOs Principles 28 3.4.3 Unilever Failure of Screening its Suppliers’ Code of Conduct 30 3.4.4 Government...
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...PEST AND DISEASES OF PLANTATION CROPS PLP 5003 TITLE: SUSTAINABLE DEVELOPMENT OF OIL PALM AS THE MAJOR PLANTATION CROP IN MALAYSIA GROUP 7: MOHD HARLIZAN BIN MOHAMAD DARUS GS32853 ADIBAH NOOR BINTI KHAIRUDDIN GS36223 SHAHFAHZIELAH BINTI SHAMRAN GS36066 SITI NOR ANIZAM BINTI ZAMRI GS38320 1.0 INTRODUCTION The oil palm, Elaeis guineensis was brought over to the Bogor Botanic Garden in the Island of Jawa, Indonesia from West Africa in 1848 (Polunin, 2004). It has been planted in almost 43 countries in tropical regions of Southeast Asia, Africa and South America. It was planted in Malaysia in 1896 much later after Indonesia (Yacob, 2005). Now, this crop has become major plantation crop in Malaysia contribute to palm oil industry. Palm oil industry is one of the most traded agriculture commodities in the world. In Malaysia, this industry has been an important agriculture in the economy for the past three decades. Malaysia is one of the major producer of palm oil in the world which contribute17.6 million tonnes respectively in 2009. Recently, concern over the environment impact people around the world keeps on talking about global warming, greenhouses effect, deforestation and other environment impact caused by human activities or improper development. Government and private sectors are being urged to commence all agriculture activities include oil palm within the concept of sustainable development. Therefore, sustainability becomes the main word uses...
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...MATRIXINTERNAL EXTERNAL MATRIXQUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)GRAND STRATEGY MATRIXEPS/EBIT ANALYSIS BALANCE SCORECARD | | 21212223252629323435394041 | 9 | CONCLUSION | | 42 | INTRODUCTION Kuala Lumpur Kepong Berhad (KLK) is a Malaysian multinational company involved in plantation, manufacturing, retailing and property development. While plantation remains KLK's core business, it has expanded downstream into resource-based manufacturing, in particular oleochemicals, cocoa processing and rubber processing and employs more than 35,000 employees worldwide. As at 30 September 2011, KLK is listed on the Main Market of Bursa Malaysia Securities Berhad and has a market capitalization of approximately RM22.5 billion. From a humble plantation company established more than 100 years ago in Malaysia and through strategic acquisition and sound management, the Group’s oil palm and rubber plantations today stand at approximately 250,000 hectares in Malaysia and Indonesia. Plantations remain KLK’s core business activity and with replanting in Sabah and vast new plantings in Indonesia progressively brought...
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...Oil palm plantation business models As of early 2011, oil palm plantations covered 7.8 million ha in Indonesia, out of which 6.1 million ha were productive plantations under harvest (Slette and Wiyono 2011). In 2010, these plantations produced 22 million tons of CPO and the production increased further to 23.6 million tons by the end of 2011. Most plantations, as well as CPO production, are located in Sumatra and Kalimantan (Indonesian part of Borneo). Between 1997 and 2006, 400,000 ha of oil palm plantations were established annually. Between 2007 and 2010, the size of annual establishment of oil palm plantations declined to 350,000 ha (Slette and Wiyono 2011). As new land available for plantations becomes more limited, annual development of plantation is expected to continue its gradual decline. However, over the next few years, land concessions already allocated for oil palm and not yet developed are sufficiently large to allow plantation estates to continue growing. There are three main types of business models for oil palm cultivation in Indonesia: private large-scale plantations and two types of smallholder models, i.e., nucleus estate smallholders, or NES, and independent smallholders. Smallholders manage nearly half of the overall plantation area; unfortunately government statistics do not distinguish between different types of smallholders. It is believed that smallholder operations have contributed significantly to the expansion of oil palm estates in recent...
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...and beverage industry. NATURE OF CRISIS: THE CRISIS: Nestle, the world’s largest food conglomerate, has undergone a turbulent period since 2010. On March 14 2010, the Independent, a UK-based newspaper, stated that Nestle’s Kit Kat contained palm oil that results in deforestation and threatens the livelihood of the endangered Orang-utans. Environmental Group Greenpeace immediately requested Nestle to “give the rainforest a break” by ending its business partnership with Sinar Mas, its palm oil supplier in Indonesia, as soon as possible. The report spurred Nestle to cancel its contract with Sinar Mas—months after Sinar Mas was shown to be involved in illegal deforestation—but the corporation continues to purchase oil palm from Cargill, which is supplied in part by Sinar Mas. For its part, Cargill says it is investigating Greenpeace's allegations and if Sinar Mas is found to be committing illegal deforestation they will drop them. Nestle has said in a statement: "we share the deep concern about the serious environmental threat to rain forests and peat fields in South East Asia caused by the planting of palm oil plantations." Thousands of hectares of rainforests in Malaysia and Indonesia have been cleared to make way for palm oil plantations, depriving tribes of ancestral lands, increasing climate change emissions...
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...11 March 2011 Food Producers Palm Oil – Extracting Value Rachel Galvez +44 20 7444 0679 rachel.galvez@religarecm.com Palm Tree Nursery Palm Oil Sector – Extracting Value We launch coverage on the London listed Palm Oil sector with a positive view as we believe the industry will continue to grow and current production will struggle to meet global demand. In our view, companies (such as the ones under our coverage) that have; agricultural land rights in equatorial regions (where oil palms thrive), industry expertise, experienced management teams, and access to capital, have defensible competitive advantages and are likely to experience earnings growth and margin expansion going forward. New Britain Palm Oil (NBPO LN, BUY, 1,197p price target, 23% upside) NBPO produces sustainable and traceable Palm Oil in Papua New Guinea (PNG), which it sells to European markets. We believe the company’s competitive advantages, (the traceability and sustainability of its oil, above industry average yields, land and other assets, management team and industry relationships) will enable it to increase sales, expand margins and maintain a market leading position going forward. Asian Plantations (PALM LN, BUY, 345p price target, 29% upside) Source: MP Evans Palm Tree Plantation Asian Plantations is involved in the acquisition and development of Palm Oil plantation land in Sarawak, Malaysia. We believe the company will be able to execute on its strategy (acquiring undeveloped land...
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...ASSIGNMENT 1 Introduction : Recent years ,Malaysia is keeping on priming of economy,their aim is to determine the Malaysia into a high-income developed nation.so they has been proposed the economic transformation programme ,the programme is a comprehensive effort that will transform Malaysia into a high-income nation ,and change the country's main productivity from the agricultural to the Industrialization by 2020. The Economy transformation programme is follow a quite different way from the past to develop the economy . This programme planning to focus on the core development area : the 12 national key economic areas(NKEAs) ,including oil gas and energy ,palm oil and rubber, financial services,tourism,business service,electrical and electronic,wholesale and retail ,education,healthcare , Communications Content and Infrastructure; Agriculture; and Greater Kuala Lumpur/Klang Valley.which are choose from the Malaysia' s advantage industry and the future potential industry.those key economic areas will bring a huge amount of profit contribute to Malaysia 's economy ,and those areas will be acquired the public investment and government support in prior。Besides,those Key economic area will be get policy reforms such as the remove the economic competition barriers and market liberalization .This program will involve the deliberate choices and trade-offs. Prioritize investment in key economic sectors means less investment in other areas. To bring about meaningful change for...
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...Algae biofuel in Indonesia: Challenges and Future Prospects Andre Budinarta A0113820W Ang Ee Meng, Samuel A0113625N Pham Trong Binh A0091176A National University of Singapore Introduction Objective This paper will look into the possibility of using algae for energy security in Indonesia. The prospects of algae being advantageous for the economy to undertake will be discussed. This paper will also focus on the development of such energy facilities in Indonesia. Background The consumption for electricity has been increasing in Indonesia (CIA World Factbook, 2013). This was due to the positive growth the economy has been experiencing in recent years (Trading Economics, 2013). In addition, the population is expected to increase from its current 239.9 million to 278.5 million by 2030 (The World Bank Group, 2011). This will lead to a surge in the demand for energy and electricity in the future. In light of today’s depleting fossil sources, there is a need to search for energy alternatives, for energy security. The government has actually implemented policies involving other forms of energy, such as solar, wind and biodiesel. As of 2012, renewable energy accounted for 11.5% of total energy production (Global Energy Statistical Yearbook, 2013). Algae, a 3rd generation biofuel, have not been brought forward by the government due to the lack of research and development capabilities in the country (Winston, 2013). Despite this, there...
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...General Business Environment (Monetary and Fiscal Policies) THE INFLUENCES OF BI RATES AND EXPORT TAXES ON INDONESIAN PALM OIL INDUSTRY Prof. Wihana Kirana Jaya, M.Soc.Sc., Ph.D. by: Nanang Suko Sadono 13/361118/PEK/19272 Batch 63 International MAGISTER OF MANAGEMENT UNIVERSITAS GADJAH MADA YOGYAKARTA 2014 THE INFLUENCES OF BI RATES AND EXPORT TAXES ON INDONESIAN PALM OIL INDUSTRY 1. INTRODUCTION Indonesia is the biggest producer of Crude Palm Oil (CPO) in the world which produced more than 25 million tons in 2012 and more than 200 trillion rupiahs in foreign exchange. The development of this industry, therefore, is important for the development of economy in Indonesia, as one tool to deal with problems faced such as poverty. This industry is also crucial in supporting the government in anticipating crisis of energy in the future due to the decreasing number of gas and oil over time. The increasing needs of renewable energy as the substitute of petroleum has also driven the demand of pam oil in international market. This high demand has led the price of palm oil in international market become higher. The high international price then persuade domestic producers to market their products to other countries, and this is a logic consequence since the companies as business entities always want to maximize their profit. The problem arise when all companies are forgetting the domestic market. Cooking oil, which is the end product of CPO, can be said...
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...DMS Business Finance CA Group Project Date of Report: April 23, 2014 Part A Golden Agri-Resources Ltd (“GAR”), which is located in Indonesia, is the world’s second largest palm oil plantation company as at 31 December 2013. GAR is established in 1996 and was listed on the Singapore Exchange since 1999 with a market capitalisation of US$5.5 billion. Owning 471,000 hectares (ha) of oil palm estates across Indonesia, GAR produces more than 2.7 million tonnes of palm products per annual. The land size the company own benefit itself from economies of scale and develop best expertise in some professional areas that turned it to be one of the most efficient palm oil plantation companies in the world, in terms of productivity and operating costs. Flambo International Ltd, an Investment Company, is GAR’s largest shareholder. It holds 49.95% stake of GAR. Besides, GAR also has several subsidiaries, including PT SMART Tbk which is listed on the Indonesia Stock Exchange since 1992. In 15 January 2012, GAR and its subsidiaries have launched a Yield Improvement Policy (YIP). The policy will leverage on technology and innovation to improve Company’s CPO yield/ha. By carry out this policy, it will not enable HAR to produce more palm oil from less land but also reduce the impact of the palm oil industry developed that cost a lot. In 19 January 2012, GAR has received Roundtable on Sustainable Palm Oil (RSPO) certification that it is one of the important part to help the GAR for producing...
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...EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT 2011-2025 R EPUBLIC OF I ND ON ES IA Doc. Wijaya Karya Masterplan for Acceleration and Expansion of Indonesia Economic Development © Copyright Coordinating Ministry For Economic Affairs, Republic of Indonesia Published by Editor Design by : Coordinating Ministry For Economic Affairs : Deputy Minister for Coordinating Infrastructure and Regional Development, Coordinating Ministry For Economic Affairs : IndoPacific Edelman First Published 2011 All Rights Reserved Coordinating Ministry For Economic Affairs, Republic of Indonesia Masterplan for Acceleration and Expansion of Indonesia Economic Development Jakarta: Coordinating Ministry For Economic Affairs, 2011 212 pages; 28 x 30 cm ISBN 978-979-3754-14-7 Masterplan aCCeleratIOn anD eXpansIOn OF InDOnesIa eCOnOMIC DeVelOpMent 2011-2025 Coordinating Ministry For Economic Affairs Republic of Indonesia 6 Masterplan P3EI Abstract Doc. Astra Otoparts Doc. Wijaya Karya Doc. Wijaya Karya Table of Contents Preface from The President of Republic of Indonesia Abstract Historical Breakthrough in the Making of MP3EI 1. The Self-Sufficient, Advanced, Just, and Prosperous Indonesia A. Preface B. Acceleration and Expansion of Indonesia Economic Development C. Indonesia’s Position Within The Regional and Global Dynamics D. Indonesia’s Potential and Challenges E. Acceleration of Economic Transformation - A New Way of Working (Not Business as Usual) F...
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...and conscious of social performance undertaken by large corporations on how they conduct their business activities. As we all know, social performance of a corporation is heavily stressed upon and people in general have high expectations on of a company’s corporate social performance (CSR) (Golob, Lah and Janccaroniccaron 2008). Every company that wishes to have a successful and sustainable business is expected to conduct its business that contributes positively to the society as well as the environment through its business process. The focus should not only be on profit maximisation for its shareholders but also take into account the interest of its stakeholders. Let’s not forget that whenever a business operates, it will somehow bring both positive and negative impact towards society. Unilever is an Anglo-Dutch multinational corporation that owns many of the world’s consumer products brands in foods, beverages, cleaning agents and personal care products also faces consequences for their business operation while portraying social performance in the society. This assignment will talk about the Corporate Social Responsibilities of Unilever towards the environment. Corporate social Responsibilities are the responsibilities of an organization toward the society to meet the standard of ethics towards investors, customers, employees, business partners, local communities, the environment and society at large. (Berkhout 2005) Unilever is first global FMCG Company to commit to sourcing...
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...Hershey Company Weaknesses in the Product Life Cycle There are a couple of weaknesses in the product life cycle of Hershey. To begin with, candy sales are being lowered by health and wellness trends, which are not only a weakness for Hershey, but the entire chocolate and candy industries as a whole. In addition to that, Hershey has had price inflation for their products. There has been an increase in consumer consciousness when it comes to the health risks related to foods with high sugar and salt products as well as high-fat and cholesterol foods. Consumers are giving more attention to the product labels of the items they purchase and are choosing to purchase the healthiest products available. When it comes to price inflation, rising costs have been a principally tough challenge for the company. The raw material costs having to do with producing a basic milk chocolate bar weighing 3.5 ounces or 100 grams, has soared 28 percent. Hershey’s has been susceptible to market price increases of key ingredients like cocoa, milk, sugar and peanuts, which all have seen increasing prices. The price of cocoa butter, which makes up about a fourth of each chocolate bar, has risen 63 percent in the last 2 years, reaching a four-year high. Whole milk powder, which is another major part, has risen above 20 percent (Tidy, 2013). In order for the company to fight the rising costs, they would need to both raise domestic wholesale prices and lower product weight. The rising price of...
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...today craves for a higher consumption of biodiesel, vegetable oil, health supplements, cosmetics and other food and non – food products that people cannot live without. One main source of these products is African Oil Palm. According to Escobar et al. (2008) the African Oil Palm is the most productive species among oleaginous plants. It is a traditional native crop for the West and Central African communities, occurring between Angola and Gambia. This plays a major part of the culture of Africans and they use it both in the household and in the market. The quest for renewable energy has intensified since the escalating price of crude petroleum in the recent years. Renewable energy such as biodiesel has the potential to replace petroleum – derived transportation fuel in the future. Biodiesel is a renewable and biodegradable diesel fuel extracted from plant oil. It is a natural hydrocarbon with negligible sulfur content which will substantially help in reducing emissions from diesel – fed engines. According to the study conducted in Malaysia, the African Oil Palm has properties and potential for making biodiesel. Due to this discovery, African Palm Oil became the base of a highly profitable agro – industry that attracts the attention of many potential investors nowadays. African oil palm industry is the second largest industry in the country of Honduras. African Oil Palms produce palm oil, a type of vegetable oil whose main use is for cooking. Honduras is exporting it to the...
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...MFI 442 International Finance-Individual Assignments I Name Institution MFI 442 International Finance-Individual Assignments I Most corporations expand beyond their local boundaries to become multinationals. There are myriad reasons behind this (Wells & Wint, 2000). The biggest of all these reasons is to gain access to international markets and perhaps invest in economic zones that have high investment returns as compared to home countries (Fu, 2000). The trend of globalization has made most firms become multinational corporations. The most common method for MNCs is through franchises (Jones, 2005). In line with this, economists have put up theories explaining why businesses expand beyond their national boundaries (Hicks, 2000). My primary objective in this paper, therefore, is to discuss international finance and other macroeconomics policies. To foresee this goal, I will delve into foreign exchange market and operations of multinational corporations (MNCs). Theories Explaining Why Corporations Expand to become Multinationals a). Financial economists have brought forward three key arguments that enumerate why companies expand their operations to global markets. These theories are; the imperfect markets theory, the comparative advantage theory and the product cycle theory (Levi, 2004). i).The Comparative Advantage Theory This theory is among the most important concepts in international trade. It states that economic welfare increases when countries specialize...
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