I)

1.

2.

3.

4.

5.

6.

7.

Analyze
the
given
report
(focus
only
on
the
mini
topics/components that your groups are interested in).
WORKS ARE AHEAD OF ACTIONS
The gap between policies and performance exists in almost every area.
While 72% of companies have incorporated human rights into their
corporate codes, complaint mechanisms are put in place at only half the
rate (37%).
WALKING THE WALK REQUIRES TIME, MONEY AND PEOPLE.
In terms of communication, less than one-third communicate on their
human rights and anti-corruption work, with labor and environmental
disclosure slightly more common - at 40% and 49% respectively.
One clear example is in the area of environment: 66% of companies have
installed environmental management systems (implement) and 54%
monitor their environmental performance (measure), but only 38% report
their emission data (communicate).
COMPANIES ARE SKIPPING THE ASSESS STEP AND MISSING THE RETURNON-INVESTMENT DATA NEEDED TO MOVE FORWARD.
As regards the environment, there is a more positive picture. More than
half of all companies are performing environmental risk and impact
assessments and an increasing number are conducting technology and
life-cycle assessments.
LABOR AND ENVIRONMENT EFFORTS LEAD THE WAY.
When it comes to labor rights and environment, plentiful corporations
have been dealing with governmental regulations around workers' rights
and environmental impacts. These external forces have led to an
increased focus on building internal systems and staffing to improve
working conditions and environmental performance.
SMALLER COMPANIES ARE CATCHING UP.
Small and medium sized enterprises (SMEs) showed strong increase
regarding human rights codes, mechanisms to verify employee age,
setting environmental targets and indicators and enacting zero-tolerance
policies towards corruption.
COMPANIES OF ALL SIZES SHARE PRIORITIES AND STRUGGLES.
For various companies of all sizes, action around environment and labor
right are being enacted ate higher levels than human rights and anticorruption a consistent finding since the survey launched. The majority
of all companies have environmental management systems, employ 3R
(reduce, reuse, recycle) policies and conduct training and awareness
programmers.
LARGE COMPANIES MORE LIKELY TO INFLUENCE THE ACTIONS OF
SUPPLIERS.
There is a rapidly growing realization that the supply chain poses social,
environmental and governance risks and challenges. Several firms can
protect against robust management systems covering human rights, labor
environment and anti-corruption.

II)

Find 2 or 3 companies that have corporate sustainability policy

implemented in their organizations and then compare and
contract with the mini topics/components of the given report.
1. In accordance with the studied content, a business must combine and
maintain 4 elements to achieve sustainability:
Sustainable development.
Corporation social responsibility (CSR).
Stakeholders.
Corporate Accountability.
2. Sustainability policies with regard to 2 corporations, namely COCACOLA & UNILEVER VIET NAM (UVN).
a) COCA-COLA
Active healthy living.
Packaging.
Product and ingredient healthy.
Human rights.
Water stewardship.
b) UNILEVER VIET NAM (UVN)
Sustainable living plan.
Enhancing likelihood.
Fairness in the workplace.
Advancing human rights with supplier.
Assist employees improve their health (physical and metal), nutrition
and well-being.
Reduce workplace injuries and accidents.
3. Combination amongst elements to attain sustainability.
a) COCA-COLA pays attention to protecting the environment.
Water stewardship: working to protect watersheds, reduce risks to
water supplies and moving towards balancing our water use.
Sustainable packaging: our efforts to reduce our materials use,
source recycled and renewable materials and build a restorative
packaging systems.
Climate protection: working to reduce our impact and partnering to
take action against climate change.
Sustainable agriculture: helping to ensure a sustainable supply of
ingredients, while supporting famers and agriculture communities.
b) UNILEVER pays attention to human rights.
All workers are treated equally and with respect.
All workers are of an appropriate age.
All workers are paid fair wages.
All workers working hour is reasonable.

III)

All workers health and safety are protected at work.

All workers have access to fair procedures and remedies.
Work is conducted on a voluntary basis.

Is it right to say that it is a growing trend that nowadays

governments around the world are paying more attention to
corporate sustainability policy implementation within profit
orientedcompanies?

1. Definition

Profitable companies: a business or other organizations whose

primary goal is making a profit, and is concerned with money only
as much as necessary to keep the organization operating. Most
companies considered to be businesses are for profit organizations;
this includes anything from retail stores to restaurants to
insurance companies to real estate companies.

Non-Profitable Companies: is a group that raises money or

performs deeds for a specific cause or set of causes. For
instance, an organization that uses its revenues to feed the homeless
or educate children is a non-profit.

MNC: an enterprise operating in several countries but managed from

(home) country. Generally, any company or group that derives a
quarter of its revenue from operations outside of its home
country is considered a MMC.

NGO: is any non-profit, voluntary citizens group which is

organized on a local, national or international level. Some are
organized around specific issues such as Human Rights,
environment and health.

2. Analyze
NGO impact on the government

Benefit

They generally enjoy a great degree of legitimacy in the eyes

of
the
public.
They are well attuned to public concerns, and to the needs of
specific
groups
that
might not be represented by the market or defended by the
government.
Their dense, extensive networks are different from those of
the
typical
MNE
or
government.

 They are often more cost-effective than their private or public

partner.

Drawback
NGOs also suffer from some drawbacks chief among them their
relative immunity from transparency and accountability and
their dependence on donors for funds, which are often scarce
(Kapstein, 2000) -- their strengths have led governments and
multilateral institutions to direct more and more funding
through them. Although precise figures are difficult to obtain, the
OECD noted that the funds that industrialized economies channelled
through NGOs rose from 0.2% of their total bilateral official development
aid (ODA) in 1970 to 17% in 1996 (Wood, 2003). In Africa, by 1994
already 12% of foreign ODA was being funnelled to the region through
NGOs, and the number has continued to rise (Chege, 1999). Transfers of
official developed-country aid to NGOs in 2006 totalled more than $2bn
of total ODA, about 123% more than in 2002 (OECD.Stat and Epstein
and Gang, 2006).

Multinational company impact on the government

Advantages

Improving the balance of payments - inward investment will usually

help a country's balance of payments situation. The investment itself will
be a direct flow of capital into the country and the investment is also likely
to result in import substitution and export promotion. Export promotion
comes due to the multinational using their production facility as a basis
for exporting, while import substitution means that products previously
imported may now be bought domestically.

Providing employment - FDI will usually result in employment benefits

for the host country as most employees will be locally recruited. These
benefits may be relatively greater given that governments will usually try
to attract firms to areas where there is relatively high unemployment or a
good labor supply.

Source of tax revenue - profits of multinationals will be subject to local

taxes in most cases, which will provide a valuable source of revenue for
the domestic government.

Technology transfer - multinationals will bring with them technology

and production methods that are probably new to the host country and a
lot can therefore be learnt from these techniques. Workers will be trained
to use the new technology and production techniques and domestic firms
will see the benefits of the new technology.

Increasing choice - if the multinational manufactures for domestic

markets as well as for export, then the local population will gain form a
wider choice of goods and services and at a price possibly lower than
imported substitutes.

National reputation - the presence of one multinational may improve

the reputation of the host country and other large corporations may follow
suite and locate as well.

Disadvantages

Environmental impact - multinationals will want to produce in ways that

are as efficient and as cheap as possible and this may not always be the
best environmental practice. They will often lobby governments hard to
try to ensure that they can benefit from regulations being as lax as
possible and given their economic importance to the host country, this
lobbying will often be quite effective.

Access to natural resources - multinationals will sometimes invest in

countries just to get access to a plentiful supply of raw materials and host
nations are often more concerned about the short-term economic benefits
than the long-term costs to their country in terms of the depletion of
natural resources.

Uncertainty - multinational firms are increasingly 'footloose'. This means

that they can move and change at very short notice and often will. This
creates uncertainty for the host country.

Increased competition - the impact the local industries can be severe,

because the presence of newly arrived multinationals increases the
competition in the economy and because multinationals should be able to
produce at a lower cost.

Crowding out - if overseas firms borrow in the domestic economy this

may reduce access to funds and increase interest rates.

Influence and political pressure - multinational investment can be

very important to a country and this will often give them a
disproportionate influence over government and other organisations in the
host country. Given their economic importance, governments will often
agree to changes that may not be beneficial for the long-term welfare of
their people.

Transfer pricing - multinationals will always aim to reduce their tax

liability to a minimum. The aim of this is to reduce their tax liability in
countries with high tax rates and increase them in the countries with low
tax rates. They can do this by transferring components and part-finished
goods between their operations in different countries at differing prices.
Where the tax liability is high, they transfer the goods at a relatively high
price to make the costs appear higher. This is then recouped in the lower
tax country by transferring the goods at a relatively lower price.

Low-skilled employment - the jobs created in the local environment

may be low-skilled with the multinational employing expatriate workers
for the more senior and skilled roles.

Health and safety - multinationals have been accused of cutting corners

on health and safety in countries where regulation and laws are not as
rigorous.

Export of Profits - large multinational are likely to repatriate profits back

to their 'home country', leaving little financial benefits for the host
country.

Cultural and social impact - large numbers of foreign businesses can

dilute local customs and traditional cultures. For example, the sociologist
George Ritzer coined the term McDonaldization to describe the process
by which more and more sectors of American society as well as of the rest
of the world take on the characteristics of a fast-food restaurant, such as
increasing standardization and the movement away from traditional
business approaches.

Non-profitable company impact on the government

Main Advantages
-

Corporation does not pay income taxes on money it receives

for a charitable purpose.
Donors that give for a charitable purpose may deduct their
donations from income taxes.
Some benefits may be deducted as business expenses.

Main Disadvantages
-

The full tax benefits can only be utilized by businesses that

have been incorporated for a charitable, educational,
scientific, religious or literary purpose.
If property is transferred to non-profit corporation, the
property must stay with the corporation. Even if the
corporation ends, the property must to go another non-profit.

Profitable company impact on the government

In a capitalist economy, the pioneers and cowboys of the land are the
entrepreneurs willing to take the risk and start a for-profit company. The
establishment of a for-profit business has some clear advantages: selfemployment and financial rewards proportional to success. It is not
without disadvantages, however, such as financial liability and obligation
to investors and creditors. It pays to examine both sides of the coin before
you make the jump.

Money
-

The most obvious advantage of a for-profit company is the

possibility of making money. Revenue generated above and beyond
expenses is for the owner to do with what he will. That can include
personal enjoyment or reinvestment in the company. The more
successful the company, the greater the financial reward. The
caveat is that the reward goes to the owner, i.e., not necessarily the
company founder if it was started with loan debt or with money provided
by investors.

Ownership and Liability

-

Besides financial rewards, the owners of a for-profit company are

their own bosses. Again, the advantages and disadvantages of
that depend on the ownership model. A sole proprietorship gives one
person the ability to make unilateral decisions for the company, but his

finances and those of his business are one and the same. He's entirely
liable if the business goes under. On the other hand, a corporation is its
own entity, absolving owners of liability beyond the price of their
shares, provided they are not party to tax fraud. However, shareholders
must manage the company by vote on major issues, and votes per person
are based on who has the most shares.

Regulation
-

Non-profit organizations have to go under the Internal Revenue Service's

microscope to ensure they work toward their stated purpose. While
individual industries may be subject to government regulation, for-profit
companies taken as a whole are allowed to conduct business as they see
fit, so long as they abide the law. However, non-profits are funded by
donations. A non-profit could fall short of expectations and not be liable to
donors as long as it tries in earnest. For-profit companies rarely receive
money with any strings attached. The very essence of commerce is
the expectation of mutual benefit in financial transactions. In that
sense, a for-profit company is regulated by its obligations to
investors and creditors.

Liquidity of assets
-

If business really goes south, the final advantage for a for-profit company
is that its assets are highly liquid. After the business goes under, the
owner can still sell the company assets such as buildings, office
equipment or industrial equipment to settle debts or for personal profit.
A company doesn't even need to be performing poorly to be
considered liquid. The owner of a sole proprietorship may come
across an attractive offer from an interested buyer and sell the
whole organization. Corporate shareholders may buy and sell shares in
companies at any time. The downside is that an item for sale is only worth
what customers are willing to pay for it. It's possible that sellers will not
turn a profit on their part of a company or even recoup their
investment.
Yes, it is. In a profit-oriented-company, the convenience of the function and
the employees come first. If such a company realizes that it cannot easily
produce what customers want or that it cannot easily serve them the way
they want to be served, they choose to ignore such customers.
Furthermore, a profit-oriented company is not interested in new markets
because it is happy doing what it does. And often, such a company is
incapable of doing anything other than what it does because it has always
believed that it will never have to do anything else, as the world will remain
the same.