Corporate Social Responsibility is a fundamental element for organizations and stakeholders that ensures meticulous responsibility of businesses towards the environment and society. The CSR has almost become a point of parity in the business world due to the transparency of corporate decisions and activities conducted by various corporations. CSR is essential for businesses as it enhances the brand image and creates social and environmental responsibilities. With CSR, the primary goal of the firms is still to maximize their profits, but with added value.

Despite its significance in today’s world, many companies still breach the CSR to abate their expenses. For instance, Canada’s junior hockey team violated the minimum wage laws and disrupted its social responsibility towards its employees. The Canadian hockey league countered these charges by alleging that their athletes, by contract, are not considered employees; hence, they do not even have to be paid. Even with the legal contract, the hockey league is inconsiderate about its CSR: the players, who vigorously compete for the team, train hard for the league, and help the team earn profits, are not being compensated for their services.

The hockey league’s attempt to minimize its wage expense has violated the CSR and has gained public cognizance. In addition, the league faces serious threats from the pending lawsuits. Conclusively, violating the CSR now poses a serious threat to the brand image and corporate value of the Canadian junior hockey team.

Work Cited

News, CBC. “Canada’s Junior Hockey Teams Violate Minimum Wage Laws: Lawsuit.” CBCnews. CBC/Radio Canada, 20 Oct. 2014. Web. 28 Oct. 2014.

“CSR Matrix – Transfer of Innovation Project.” CSR Matrix – Transfer of Innovation Project. N.p., n.d. Web. 28 Oct. 2014.

The Northern Gateway Pipeline is an essential project for economic development and opportunities in Canada. The Northern Gateway Project team, Enbridge, firmly believes that this project will promote social interest: it will create a plethora of jobs, generate billions of dollars of revenue for taxpayers, and will support skills training programs. However, opposing threats from the First Nations have become a rigid barrier for the success of this venture.

Although 26 out of the 40 First Nations along the route have signed equity with Enbridge, some other north-central and coastal B.C First Nations, like Nak’azdli, have sworn to stop the construction of the pipeline. This is primarily due to the threatening effects of oil spill on sockeye salmon and the Nechako sturgeon.

Enbridge is facing legal and political factors that barricade the success of the Northern Gateway Pipeline. Despite the significance of this pipeline, Enbridge plans to gain Nak’azdli’s consent before initiating the construction.

The construction of the pipeline is vital; however, constructing it without the consent of First Nations would be unethical. The court could overrule Nak’azdli’s concerns and permit the project if it is vital for national interest. However, Enbridge should negotiate and gain Nak’azdli’s consensus since this project directly affects their culture and traditions.

Citations

“B.C. First Nation along Pipeline Route Officially Rejects Northern Gateway Plan.” Warrior Publications. N.p., 11 Apr. 2014. Web. 06 Oct. 2014.

Hoekstra, Gordon. “‘There Will Be No Pipeline’.” Www.vancouversun.com. N.p., 16 Aug. 2014. Web. 05 Oct. 2014.

“Northern Gateway.” Northern Gateway. N.p., n.d. Web. 04 Oct. 2014.

One of the worst forms of corporate frauds that exist is the financial statement frauds. Financial statement frauds present manipulated and distorted financial information to interested external users and stakeholders. However, once unveiled, these scams can devastate an enterprise’s reputation and abate its value.

For instance, Tesco’s distortion of financial records has received cognizance among the public and has become widespread news. Tesco had published its financial statement that displayed inaccurate profits of £250 million. To investigate the matter, the Financial Conduct Authority has initiated serious inspections of Tesco’s records.

As the investigation proceeds, Tesco faces a downfall in the value of its share. Furthermore, such negative headings can darken Tesco’s future and harm its long term value. But then, why would companies even consider committing such fraudulent activities?

Oftentimes, despite knowing the possible consequences, business leaders falsify their financial statements to portray themselves in a stronger position than they actually are. This deceit could occur for numerous reasons, such as economic pressure, overwhelming competition, or simply a need to fulfill the creditors’ requirements.

However, despite any reason, financial statement frauds can cause significant harms to the investors, stakeholders, and even the members of the organization.

Citations

“Forensics Accounting Education.” N.p., 1 Oct. 2013. Web. 4 Oct. 2014.

Polack, Richard A. “Detecting Financial Statement Fraud by Richard Pollack – Berkowitz Pollack Brant Advisors and Accountants.” Berkowitz Pollack Brant Advisors and Accountants. N.p., 21 Dec. 2012. Web. 05 Oct. 2014.

Ahmed, Kamal. “Tesco, Sainsbury’s – the Bad News Just Keeps Coming.” BBC News. N.p., 1 Oct. 2014. Web. 05 Oct. 2014.