A CEO is someone associated with being the pillar and foundation that oversees a company and its operations. However, in situations where companies require to take drastic action to do what is in the best interest of the corporation, CEOs may leave their positions and receive payouts. In the case with Nokia, a pioneer in the wireless industry, it was recently discovered that their ex-CEO, Stephen Elop, would gain US$25.5 million upon the buyout of Nokia to tech giant, Microsoft.

Many question whether such an outrageous payout is justified. Before becoming Nokia’s CEO, Elop was the chief of Microsoft’s business division. Furthermore, he is to return to Microsoft as an executive who will manage the fusion of Nokia technology into Microsoft products.

Although CEOs deserve huge forms of monetary compensation since they do play critical roles in organizations, it is difficult to place a value on their contributions, especially if complicated business connections are involved. To prevent criticism, ex-CEOs should reduce their payouts voluntarily or governments should place taxes on such payouts. Ultimately, business and leadership is more than what is deposited into an account– it is the impact and the foresight that drives a corporation into a new direction.

Source:

• http://www.cbc.ca/news/business/stephen-elop-to-get-25-5m-for-selling-nokia-to-microsoft-1.1867972
• http://icdn5.digitaltrends.com/image/nokia-microsoft-acquisition-1253×776.jpg

Days before Apple unveiled the much anticipated iPhone 5C & 5S, Xiaomi’s CEO, Lei Jun, released the Mi-3. Both the iPhone 5C/S and Mi-3 are renowned for their sleek designs and consumer usability, making Xiaomi appear to be China’s version of its American counterpart, Apple.

However, contrary to popular belief, Xiaomi and Apple have very different business models. First and foremost, there is a large difference in the prices of the iPhone 5C ($860) and Mi-3 ($330) and ultimately, the target customer. Even though the 5C is supposedly more affordable, it pales in comparison to the Mi-3 which takes affordability and accessibility seriously. It will appeal to the majority of mid-high income customers. Separately, the customer outreach of both companies are dissimilar. Apple has developed a somewhat distant relationship with their customers; building the products based on what the company views as required. Xiaomi has established close relationships with their consumers by requesting for feedback and conducting votes and ultimately basing the product on what consumers want.

Xiaomi (5%) deserves credit for beating Apple (4.8%) in terms of market share; it is unfairly labelled as Apple’s Chinese copy-cat. At the end of the day, perhaps there are some lessons that Goliath should learn from David.

Source: http://www.economist.com/news/business/21586344-xiaomi-often-described-chinas-answer-apple-actually-quite-different-taking-bite-out

Imagine yourself at a Hollister store; as you enter, the stacks of denim, the myriad of shirts and a chic crew staff overwhelm you. However, beyond the storefront, Abercrombie & Fitch (A&F) is embroiled in unethical workplace discrimination.

Hani Khan won the lawsuit against Abercrombie & Fitch for unlawful dismissal
(http://ww2.hdnux.com/photos/07/14/72/1887929/15/628×471.jpg)

Umme-Hani Khan, an ex-impact associate at Hollister, recently won a lawsuit against A&F for unlawful dismissal. Prior to her termination, Khan engaged in stockroom work and was allowed to wear religious headscarves that were in Hollister colours. However, she was fired after she refused to remove her hijab months after she was told that it did not comply with the ideal staff ‘look’.

Workplace equality is part and parcel of business ethics. It is imperative for employers to be transparent and unbiased when interacting with staff; at the workplace, a respectful environment allows employees to develop an attachment to the company, motivating and consequently, improving productivity. Furthermore, it is fundamentally wrong to force individuals to compromise on their beliefs for their jobs. It is immoral for a company to disregard an employee’s right to equality and their needs. Ultimately, if employees are to make a difference at their workplaces, business ethics are the keys to empower these agents of change.

Bibliography:

1. Hafalia, Liz. Hani Khan at the News Conference. 27 June. 2011. Abercrombie & Fitch sued over hijab firing. The Chronicle. Web. 11 Sep. 2013
2. Ballhaus, Rebecca. “Muslim Fired by Abercrombie Wins Bias Suit.” http://online.wsj.com/. The Wall Street Journal, 9 Sept. 2013. Web. 10 Sept. 2013.