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CEO of Concord: Recommendations

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As the CEO of a manufacturing company, I completely understand that I am serving at the leisure of the Board of Directors. As such, I believe the recommendations I have put forth will move our company in the right direction, while maintaining our responsibility to our hardworking employees, our local community of Concord, and our country. These recommendations are not easy, as I am under intensifying pressure to maximize share values. My final recommendation is to reduce costs by automating 30 percent of the workforce and cutting the remaining employee’s wages by 25 percent over the next 3 years.
Our company can benefit greatly from adopting a Corporate Social Responsibility platform. Corporate Social Responsibility is defined as, “practices that improve the workplace and benefit society in ways that go above and beyond what companies are legally required to do.” As the CEO, I make 200 times the average workers salary based on 2012 income. That’s an 875 percent increase from a CEO in 1965. I firmly believe that working to close the widening gap is a responsible action that must be exhausted before we ask our employees to take a pay cut. When a company treats its employees well, the employees are more loyal and committed to that company. The CEO of Costco pays its lowest earning employees a minimum of $11.50 per hour. The CEO rationalizes this decision by suggesting that a higher wage leads to a better work experience, improved productivity, and less of a chance of turnover. Ultimately, this has broader community benefits. Henry Ford made the argument for higher wages for employees because employees who are paid decently recycle and reinvest part of that income back into the economy, and even into the product that they manufa...

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...e to this trend. Corporate Social Responsibility has a place in the market economy, and it can attract investors. There is also a place in the market for less responsible corporations. Our company is presented with an opportunity to innovate, and explore new avenues. America is the heart of innovation. Even though Apple’s iPhone is made in various different countries across the globe, it is designed in America. Apple is pursuing CSR by expanding its efforts to employ more Americans. Through our business practices we can harness financial goals and social purposes. Ultimately, as the head of this company, I must make difficult decisions. These pay cuts will hurt our workers, but the alternative will hurt them more. I am hopeful that over the course of the next three years we can find innovative ways to improve our efficiency, our product, and find our niche in CSR.