Introduction
The case of A.P. Smith Manufacturing Company v. Barlow has been used to cite an important rule of law i.e. state legislation can be applied to pre-existing corporations under reserve power. The company A. P.Smith Mfg. was incorporated in 1896 and is engaged in the manufacture of sale of valves, fire hydrants for water and gas industry.
Issue
In the case A.P. Smith Mfg. Co. v. Barlow case, the issue was: can state legislation adopted in the public interest be constitutionally applied to pre-existing corporations under the reserved power i.e. whether A.P. Smith Manufacturing Company could donate money to a charity without authorization from stockholders or through the certificate of incorporation.
Ruling
The New Jersey court
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Today’s stakeholders want more accountability. The debate over Corporate Social Responsibility (CSR) has shifted from whether companies should engage in CSR to how to make substantial commitment to CSR?
The added pressure from stake holders has increased as accountability plays a key role for the demand for favourite brands grow. Consumers are more demanding than ever. Safeguarding the brand image and corporate reputation has become important as markets all over the world have become very competitive and image has become more vulnerable.
The reputational risk in consumer markets has also made the companies shift their role as only profit maker for shareholder. Today’s consumers know that if they boycott the brands they use, it works. Product boycotts are associated with negative stock market reactions for the company and hence affect the image of the company both directly and indirectly. An example: Nike in the late 80s and early 90’s faced considerable negative publicity for slave wages, forced overtime and arbitrary abuse. In 1997, the company made significant changes by employing 90 people in CSR positions and did independent third party audits of its suppliers in Asia. The risk of losing bulk share of footwear and apparel consumer market forced Nike to commit to
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The court stated: that “encouragement be given to the creation and maintenance of institutions engaged in community fund, hospital, charitable, philanthropic, educational, scientific or benevolent activities or patriotic or civic activities conducive to the betterment of social and economic conditions;
“That the contribution shall not be permissible if the donee institution owns more than 10% of the voting stock of the donor and provided, further, that the contribution shall not exceed 1% of capital and surplus unless the excess is authorized by the stockholders at a regular or special meeting”.
Term ultra vires and intra vires
The term ultra vires means acts done by a company which are not authorised by its constitution as set out in its memorandum of association. The term intra vires means acts which are authorised by the memorandum of association of a company.
The CSR activities can be described as intra vires. It is due to the reason that an intra vires organisation can undertake those activities for which specifically it has pledged in its CSR guidelines to do. All charitable work done by a company are established as intra vires so that the charitable purpose for the company is clearly defined.
Responsibilities corporations have towards
The reached decision of the Supreme Court for the Federal Trade Commission v. Phoebe Putney Health System, Inc. will have a long term effect on the FTC’s procedural process. This decision reached will now require the FTC to determine a standard verifying whether acquiring deals fall within the state-action exemption clause if or when pertaining to antitrust laws. The conclusion of this case has therefore placed undue strain on how the state 's legislature may now assign authority to organizations of local government. This pressure makes the Federal Trade Commission’s job that much more difficult to accomplish because in some instances there procedures must be adjusted on a situational basis only. In addition, the ruling has affected the process
The TVA had been involved in arrangements with privately owned utility companies and other municipalities to supply wholesale power for distribution, in which, the TVA was the biggest supplier. The reason for this is stated in the Britanica, “The TVA power system, which includes more than 50 dams, as well as coal-fired thermal plants and operable nuclear plants, possesses a huge generating capacity” (Britanica). Brandies argued with the Ashwander rules which state that situations having to do with shareholders should not be held up to the constitution as a literal reference. Another perspective which supports Brandies perspective was found on a website called Justia which includes the syllabus of the end decision of the court case, “Courts may not interfere with the management of the corporation unless there is bad faith, disregard of the relative rights of its members, or other action seriously threatening their property rights” (United Copper Securities Co. v. Amalgamated Copper Co, Justia). Since this cooperation helped America with the great depression and impacted society in such a positive way.
1. Name of Case Everson v. Board of Education of Ewing Township 330 U.S. I, 67 S.CT. 504 (1947) 2. Facts of Case Arch Everson when to court to challenge the constitutionality of a check given to children who paid to bus their children to private schools.
“The Hepburn Act makes it unlawful for any railroad company
Issue 6- Does the Act violate the Procedural Due Process? Conclusion 1.
Walking into any sports store, the shelves will be filled with Nike brand and it’s basketball subsidiary Air Jordan sneakers and products. For decades, the Air Jordan brand has came out on top in sales against competitors. But, during its early years, Nike was struggling because their sales were slowly dying. At the time Michael Jordan was a rookie and was introduced to the brand in the hopes of him signing a deal to join Nike and put them back on top. Michael Jordan himself, was already gaining media attention for his act on and off the court.
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .
The strength of high price product strategy is that Nike can earn more on each single item. Also, it can ensure the quality of the products. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. The weakness of selling premium is that only high-end buyers could afford to buy it.
This is due to Nike gets its merchandise generally from foreign manufacturers. To operate profitably, Nike need to get good value on products and supplies and, in turn, offer good value to its customers with accessible solutions. Publics: Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups
Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing
When an economy falls into recession, this will give Nike take risk of declining demand, as a consumer they will choose lower discretionary
A new competitor whose sell the footwear of leisure and fashion . 0.05 2 0.1 Total Score 1 2.25 Justification of Nike key external factors. Opportunities 1st
In addition, Nike products can also be sold cheaply and with its mass production benefits, Nike positioned The Promise and Perils of Globalization: the case of Nike 3 itself strategically enough to meet global demand. As stated by Hill, (2007) “Nike enhanced the productive capacity to meet the rising demand, hence; satisfying the customers’ needs.” The positive and negative impacts of this