文章作者 100test 发表时间 2007:09:06 11:52:40
来源 100Test.Com百考试题网
Can a company be socially responsible and successful?
Levi Strauss &. Company chairman and chief executive officer Bob Hass had some problems on his hands. After taking over leadership of the world-famous blue-jeans maker in 1984, Haas had worked hard to revitalize the company s long-standing commitment to ethical and socially responsible behavior. However, changes in consumer tastes and stiff competition from rival clothing manufacturers were hitting the company hard on all sides. In order to remain competitive, Hass would have to make some tough decisions that could threaten the company s principles.
The original Mr. Levi Strauss had a simple business mission—make and sell quality work pants for San Francisco s gold-rush miners. However, Strauss also demonstrated a strong social conscience and commitment to employees early on. During the Great Depression , workers were paid to lay a new floor in the factory until business picked up. By the 1960s, the company had become a vocal advocate for racial integration and a leader in corporate diversity programs.
However, by the time Bob Haas (great-great-grand-nephew of Levi Strauss) took over in 1984, the company seemed to have lost its social conscience. Levi s had expanded aggressively into product lines that were ultimately unprofitable. The company was bloated , profits were falling, and management was more concerned with numbers than with values. Haas believed that public shareholders and stock analysts had blurred the company s vision by demanding short-term profit gains over long-term goals. So with the help of friends and family, Haas bought up the remaining public stock and set out to turn the company around.
Haas began to streamline the company, which meant taking the painful step of cutting the work force by a third. To reward and motivate those who remained, he developed an aspirations statement with companywide goals based on ethics, diversity, environmental stewardship , teamwork, trust, and openness. He backed up his statement by training employees in leadership, diversity, and ethical decision making and also by linking employee compensation to performance in these areas. “A company s values —what it stands for, what its people believe in—are crucial to its competitive success,” Haas exhorted . “Indeed, values drive the business.” Levi s also spent large sums to reduce the impact of its operations on the environment. At the same time, the company shed unprofitable clothing styles and refocused on traditional jeans and the new casual “Dockers” products. With revitalized company values, soaring staff morale, and revamped product lines, Levi Strauss enjoyed double-digit gains in sales revenues and profits.
However, the 1990s brought new crises. First, reports of widespread human rights abuses in some Asian countries led the company to question the ethics of its operations there. Second, Levi s discovered that some of its suppliers in Asia were making Levi s products with child labor. And third, Levi s own failure to spot new clothing trends, modernize its production facilities, and keep retailers happy resulted in declining jeans sales. The situation worsened as new competitors undercut Levi’s pricing by manufacturing the majority of their products overseas. (Levi s still made half of its products in the United States)。 With demand shrinking, Levi s again found it had too many plants and employees in the United States. But large-scale layoffs could undermine the social values that had once again become synonymous with the Levi s name. Haas had to find a way to ensure the company’s long-term profitability while standing by Levi s principles.
If you were Bob Haas, how would you balance your company s economic needs with its goals for ethics and social responsibility? How would you deal with suppliers who don t adhere to your company s values? Would you take a stand against human rights abuses? How would you handle the problem of excess capacity and employees?
Meeting Business Challenges at Levi Strauss
Bob Haas knew that Levi Strauss &. Company faced an uphill battle . The company had uncovered violations of its ethical standards among its Asian suppliers. Meanwhile, consumer tastes had shifted while Levi s looked the other way , and competitors were beating Levi s on price and service. But Haas determined to tackle these problems by refocusing on the original company strengths: strong commercial instincts and a commitment to social values and to the work force.
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