A US-based private equity house is sing an investing of US $ 100 million ( a 35 % interest ) in a privately-owned lumber shocking company in China. The Chinese company’s major assets include: I ) seven mills in China that produce timber flooring ; and two ) three ample lumber plantations – two in China and one in Guatemala. The company beginnings 50 % of its lumber demands from providers globally. It is presently one of the top five lumber flooring companies in China ( 90 % of gross revenues are domestic ) . and has started to sharply come in new markets ; exports are presently 10 % of gross revenues and turning. It has targeted North America. Europe. Australia. Japan and other high-income states for rapid enlargement. Its merchandise is high quality and cost competitory. The lumber shocking company has grown rapidly ( it is less than 15 old ages old ) . has a little squad of local directors ( around 30 in entire. largely in sourcing lumber. production. R & A ; D and gross revenues and selling ) . and has focussed on turning gross revenues.
Although directors understand how to sell shocking in new markets. they have small to no apprehension of issues outside of production. selling. and gross revenues. CSR is non understood at all. The PE house has a timeline of 3-4 old ages to take the lumber shocking company to market. with a mark IPO in Hong Kong. Required: Measure the cardinal CSR issues that may originate in this investing and supply an executive sum-up of those issues for the private equity house involved. You should pay peculiar attending to societal and environmental issues that may present a hazard to the investor. The PE house has confirmed that the growing mentality is good ; but are at that place any strategic issues beyond fiscal concerns that it should be cognizant of? Your executive sum-up should supply the PE house with a clear and concise reappraisal of all possible CSR issues it may necessitate to see or research farther before it makes a concluding determination and supply brief recommendations as appropriate.
Refer to the readings and in-class treatment for the Foxconn-Apple instance. Required: Should Foxconn workers be allowed to work every bit many hours as they want each hebdomad ( presuming that work is available ) ? Yes or No? Why? Your essay response to these inquiries should include designation of all parties who have a interest in this determination. brief treatment of these stakeholders’ likely concerns and how they may be affected by this determination. and a clear and well-supported decision.