...When Corporate Values do not Align with Personal Values When an individual accepts a position at a company, it is important that they should first check that their values match the companies’ values. Often, the companies’ values are readily available and should be researched before the position is accepted, but in some cases, an employee will find out too late that they feel a conflict between their own values and their employer’s values. Every person has certain ‘Benchmark Goals’ that dictate what is important to them in life (Pace, 6). Some people value family, money, and some value having a career in a certain field. Employees in positions where there are conflicting values can be unhappy in their position, and it can carry over into their personal life. When values align, it can give an employee a sense of purpose and connection with their position and coworkers. Sometimes though, if the values do not match up, it can cause internal conflict for the employee, or even conflict between employees. There are two main ways that an employee can have conflicts with the values, between them and their supervisors or coworkers, and between them and their company. Someone who has very strong values centered on faith will struggle with a company who requires weekend work which might cause them to miss a weekly service. Katherine Dean reminisces about a position she once held where her supervisor pushed them too hard, because he overly valued sales and financial gain, even above...
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...Corporate Governance Quality and Firm Value in Brazil Dr. Alexandre Di Miceli da Silveira, University of Sao Paulo, Sao Paulo, Brazil Dr. Lucas Ayres B. de C. Barros, Mackenzie Presbiterian University, Sao Paulo, Brazil Alexandre Di Miceli da Silveiraa School of Economics, Management and Accounting of University of São Paulo (FEA/USP) Lucas Ayres B. de C. Barrosb Mackenzie Presbiterian University July, 2006 a Professor of Finance and Accounting at School of Economics, Management and Accounting of University of São Paulo (FEA/USP). Tel: (+55) 11 5054-1888. e-mail: alexfea@usp.br (contact author). b Professor of Finance at Mackenzie Presbiterian University. Tel: (+55) 11 3871-2689. e-mail: lucasayres2002@gmail.com. Corporate Governance Quality and Firm Value in Brazil Abstract This paper investigates the influence of corporate governance quality on market value of 154 Brazilian listed companies in 2002. In order to obtain a proxy for corporate governance quality, a broad governance index was built. The investigation was carried out through different econometric approaches in increasing order of complexity, including multiple regressions by Ordinary Least Squares (OLS), instrumental variables approach and systems of simultaneous equations. The results obtained in all econometric approaches show a positive and significant influence of corporate governance quality on firm’s market value. OLS results with market value variables Tobin’s Q and PBV multiple...
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...Péter HARBULA CORPORATE GOVERNANCE, SHAREHOLDER STRUCTURES AND VALUE CREATION Summary : This paper analyzes the interaction between shareholder structures and the quality of the corporate governance structure in France using the value creation criterion. Using shareholder structures allows analyzing the performance of French firms and to measure an underperformance of “hard core” and diffuse ownership firms. This paper, updating results from Harbula (2004), also investigates the relationship between performance and shareholder stakes. Keywords: Corporate governance, value creation (EVA, CFROI), enterprise performance, shareholder structures. Classification JEL: G32, G34 Electronic copy available at: http://ssrn.com/abstract=1925045 Péter HARBULA: Corporate governance, shareholder structures and value creation 1. INTRODUCTION The objective of this working paper is to determine whether “hard core” governed firms truly underperform their peers. The main cornerstone of the analysis will be again to introduce the concept of shareholder structures. During the analysis, the common tools developed by corporate finance practitioners were used including, among others, value creation and return to shareholders. By performing this analysis, even if it is not the central point, the underlying question of ownership structure and efficiency will also be considered. I will also include in the analysis, beside the performance measurement tools, an analysis if the evolution...
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...Outline and critically evaluate the corporate culture and values that the Starbucks Corporation has developed as an international company. Corporate culture is the shared values, traditions, customs, philosophy, and policies of a corporation. This influences the professional atmosphere that grows from this and affects employee behaviour and performance, it determines how employees think, act and feel. Every organisation has a different concept about the kind of culture that it should have, Howard Shultz CEO of Starbucks worked to instil key values and guiding principles into the Starbucks culture. The fundamental value was “to build a company with a soul,” to achieve this Shultz came up with a philosophy for Starbucks to “never stop pursuing the perfect cup of coffee.” This meant Starbucks had to control the quality of its products across all stores with Shultz strongly opposed to franchising in order to achieve this. Using high quality beans with no chemicals or additives was also central to the core values; this is even true in today’s Starbucks coffee. Following on from Shultz’s keystone value and it is the staff who are central to the soul of the company. The employee’s were selected for their character, personality and skills “to deliver consistent pleasing customer service.” Employee’s adopted Shultz’s core values to provide not just a perfect coffee but to provide an experience to Starbucks customers which led to the success of Starbucks and making...
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...Corporate Ethics And Values - Pranav Chheda Corporate Ethics What is a Code of Ethics? A code of ethics outlines a set of certain principles established by the corporation. These principles can be used both as the basis for requirements and limitations. Typically, a code of ethics is founded on a set of core principles or values and is not designed for expedience. These principles are illustrated with behavioral examples. Those subject to the code are expected to understand and apply the examples in situations the code does not specifically address. Organizations expect that the principles, once communicated and illustrated, will apply in every case, and that failure to apply the principles can be a cause for disciplinary action. How is a Code of Ethics Created? To create a code of ethics, an organization must define its most important guiding values, formulate behavioral standards to show the application of those values to the roles and responsibilities of the persons affected, review the existing procedures for guidance and direction as to how those values and standards are typically applied, and establish the systems and processes to ensure that the code is introduced and effective. Codes of ethics require lots of time to establish. Ideally, the development of a code will be a process in which Boards and senior management actively debate and decide core values...
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...that would allow them to advance and climb the corporate ladder. Each and every profession has a standard code of ethics and professional values. Likewise, each has their own set of codes within the corporation or company. A person choosing their profession should really consider their own values and ethics before pursuing a professional career in an area that would later be conflicting with ones self-conscience. Professional values are usually framed from our own personal values. The customs, beliefs, and ideas we hold dear are our values. Ethics are the things we think of as right and wrong. A person who has high values and ethic should reconsider the job offer if they feel the corporation is dishonest Professional Values and Ethics Sexual Harassment “Professional values are the principles that guide your decisions and actions in your career.” According to Chrissy Scivicque, there are some universal values that should be and usually are held and practiced in all of them and they are: “first, do no harm; keep it simple; honesty is the best policy; we’re all in this together and stay balanced.” Professional ethics concerns the moral issues that arise because of the specialist knowledge that professionals attain, and how the use of this knowledge should be governed when providing a service to the public. Professional values and ethics are usually a standard in many corporations. As time changes professional values and ethics also change with new State and Federal...
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...Is Growth Always an Inherent Corporate Value? Growth Definition: Growth can be defined as a company that produces substantial profitable earnings and these profits increase at high rates than the existing economy. A company with growth inclines to have earnings which can be used for reinvestment for growth to obtain more earnings. This growth in the company ensures the stockholders their share and the fame of the company in corporate world. Growth is an inherent corporate value, because of the following reasons a) Value of the company: With profitable growth, the value of the company increases and attracts more investors for investing and thus development of company. b) Shareholders Value: Through profitable growth, companies generate or increase shareholders value. With growth the price of the stock increases and the company’s value on the equity market is more. c) Success of Company: Through the concepts of growth, everyone in the company are focused on achieving targets and thereby contribute to the attainment of objectives of the organization also called as Success of the company. d) Employee’s responsibility: Growth actions in a company create a positive energy within the employees to perform better. When there is growth, there are more opportunities, which results in more responsibilities. The employees tend to perform more for the available opportunities. If there is no growth, the employees sense their less possibilities of advancement and...
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...Introduction A paradigm shift currently indicates the global challenges that industries are facing and more companies are pressured to embrace sustainability as business conditions change. However, only recently corporations started integrating sustainability as the part of their business strategy as they came to recognize that it is an essential part in growing and establishing themselves as the leader in the competing environment. A well-executed sustainability strategy can enhance the company’s value and reinforce competitive advantage in the market while protecting the capital base. The balance of power has shifted between corporations and it is important to balance economic prosperity along with environmental and social dimensions. Sustainable business strategy represents a marked shift in traditional business practices and companies who do not adapt to the changes in these practices in order to achieve sustainable profitability will be more likely to face the brand value decline or even extinction in the future. For instance, the change represents the need to understand how all three dimensions affect each other and companies ought to consciously create new consumer preferences. However, a lot of companies still are missing guidelines to implementing a marketing strategy of sustainability as an essential part, which is at the core of ensuring organizational, social, economic and environment growth while managing overconsumption issues (White, 2011). Current researches...
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...M B E R 4 | FALL 2005 Journal of APPLIED COR PORATE FINANCE A MO RG A N S TA N L E Y P U B L I C AT I O N In This Issue: Executive Pay and Corporate Governance Pay Without Performance: Overview of the Issues A Remedy for the Executive Pay Problem: The Case for “Compensation Discussion and Analysis” Developments in Remuneration Policy Corporate Culture and the Problem of Executive Compensation Taking Shareholder Protection Seriously? Corporate Governance in the U.S. and Germany University of Rochester Roundtable on Corporate M&A and Shareholder Value 8 Lucian A. Bebchuk, Harvard Law School, and Jesse M. Fried, University of California at Berkeley 24 Jeffrey N. Gordon, Columbia University 36 Alastair Ross Goobey, International Corporate Governance Network and Morgan Stanley Europe 41 44 Arthur Levitt, Jr., The Carlyle Group Theodor Baums, University of Frankfurt, and Kenneth E. Scott, Stanford Law School and Hoover Institution 64 Panelists: Robert Bruner, University of Virginia; Cliff Smith and Gregg Jarrell, University of Rochester; James Owen, The Bank Street Group; Marla Sincavage, Ernst & Young; and Matt Ostrower, Morgan Stanley. Moderated by Mark Zupan, University of Rochester. Takeover Defenses and Bargaining Power Is U.S. CEO Compensation Broken? Top Management Incentives and Corporate Performance Letting Go of Norm: How Executive Compensation Can Do Better Than “Best Practices” Finance, Politics, and the Accounting for Stock Options ...
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...Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects VI. Management of the Corporate Capital Structure 29. Structuring Corporate Financial Policy 31. Polaroid Corporation...
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...How Global, Corporate, and Community Values Servant Leadership Cathy R. Palmer Charleston Southern University Introduction Leadership is all about harnessing people power for the attainment of a desired goal and thus the concept of leadership cannot be restricted to the Organizational context. It pervades through all realms of society, whether it be in politics, religion or the corporate world. I am conducting a case study on the Values of Servant Leadership globally, corporate, and community. I will be taking into consideration the state of global affairs, the state of U.S. corporate affairs, small businesses, and the society around us, what is true value of servant leadership, both to corporate world and to the community at large? Global Affairs Management is no longer constrained by national borders. There is significant importance from globalization, and the world has definitely become the global village. Managers in organization of all sizes and types around the world have to confront the challenges of operating in the global market. Managers face challenges due to an array of environmental factor while doing business. He must effectively plan, organize, lead, control and manage cultural difference to be globally successfully. Creativity is the first step on the road to innovation, and has become vital for an organization to survive given the complexity of global change. Creativity is the ability to produce new ideas through imagination and...
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... there is no real balance because “Every leader wants workers who are like warriors -- passionate, committed, focused, and go the extra mile to get superior results.” (Bell, 2012) Those who telecommute are still expected to produce at or above the standard they would be if they went into the office. This constant level of work related stress and overload, the job is usually brought home. Corporate Culture “The often unspoken beliefs and values that determine the way an organization does things, the atmosphere that exists within it and the way people who work for it behave.” (2006) It is well stated in the Dictionary of Business that “The culture of an organization is often summed up as “the way we do things around here”. “Once established, organizational cultures often perpetuate themselves in a number of ways.” (Kotter, p3). Issues within organizations must be properly managed and developed to ensure the ideals of the organization are legal, ethical and moral. Social Justice “The primary ethical value that is served by sustainability is social justice, in particular, the value of avoiding unjust exploitation.” Social justice is defined as a standard of fairness in the society. The ideals and foundations of social justice and its supplemental theories are seeded from the “Marxist emphasis upon class and economic relationships with the inclusion of multiple axes of social differentiation.” (2009) Works Cited Bell, C. R. (2012). Work-life balance. Leadership Excellence...
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...includes the beliefs, values, attitudes, and expectations for behavior that the society believes to be good, effective, desirable and beneficial. Organizations have unique culture even though they belong to the same industry. In this case, 5 Star Electronics and Amtech Electronics have different cultures even though both of these organizations belong to Electronics Industry and are in same state, Ohio. The leadership style of the organization decides the culture. Culture is the environment that surrounds you at work. Culture is also shapes your work environment along with your work relationships. The organizational culture can be identified by using the four variables which are Flexibility, Internal Focus, External Focus and Stability. The four variables are used to state the culture of a given organization. The basic types of corporate cultures are along with the dimensions are listed in the below table: Type of Corporate Culture Dimensions Clan Culture Flexibility, Internal Focus Bureaucratic Culture Internal Focus, Stability Adaptability Culture Flexibility, External Focus Achievement Culture Stability, External Focus The present discussion is to understand the corporate culture of 5 Star Electronics and Amtech Electronics using the above dimensions. Corporate Culture of 5 Star and Amtech Questions 1Q. Using the competing values model, what type of culture would you say dominant as 5 Star? At Ametech? What is your evidence? A: The competing value model is used to identify...
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...Principles of Corporate Finance How To Calculate Present Values Richard A. Brealey Stewart C. Myers Franklin Allen Slides by Matthew Will & A. Gledson de Carvalho McGraw Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 3- 2 Topics Covered Valuing Long-Lived Assets PV Calculation Short Cuts Compound Interest Nominal and Real Rates of Interest (inflation) Examples McGraw Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 3- 3 Present Value Present Value Value today of a future cash flow. Discount Rate Interest rate used to compute present values of future cash flows. Discount Factor Present value of a $1 future payment. McGraw Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 3- 4 Present Value Present Value = PV PV = C1 (1 + r ) 1 = × C1 1+ r PV = discount factor × C 1 McGraw Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 3- 5 Valuing an Office Building Step 1: Forecast cash flows Cost of building = C0 = 350 Sale price in Year 1 = C1 = 400 Step 2: Estimate opportunity cost of capital If equally risky investments offer a return of 7%, then Cost of capital = r = 7% McGraw Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 3- 6 Valuing an Office Building Step 3: Discount future cash flows PV = (1C1 ) = (1400 ) = 374 +r +...
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...|Culture Analysis | Analysis Objective |According to Eric, Van den Steen (1990), a corporate culture is the sense of shared beliefs and values, through screening, self sorting and manager-directed | |joint learning. In order to understand the organization culture of KMB, we will identify the values and assumptions share among member of KMB. The culture | |artefact and shared value demonstrated the belief of former and top management toward to the organizational goals and it gave a guideline to the employees’ | |belief, behavior and shared assumption. We will analyze the culture of KMB with the following steps: | |Identify the artefacts of KMB, and then conclude the core value of KMB with iceberg model. | |Examine KMB’s culture value with the contingencies of organizational Culture. | Culture Artefact Stories & Legends-Caring Customer, Continuously Innovating |[pic][pic][pic][pic] | |[pic][pic] |80 Years Contribution ...
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