Ethical Decision Making at Black Diamond

Task: Read the “Black Diamond Equipment” case below and then answer the following questions.

>> The way that Black Diamond is run, I don't really consider this the American way, I consider Black Diamond an extension of the attitude, the culture, the ethos, and the values of the life defining mountain sports that we were founded to serve. Hi, my name is Peter Metcalf. I'm the CEO and lead founder of Black Diamond. Very early on in the beginning of the company the sports of climbing, mountaineering, alpinism and alpine skiing were relatively small at that time. They've grown dramatically. However, if you aggregated the global demand for that product then you could have a fairly meaningful business. So from that recognition and understanding the amount of money that goes into research and development, commercializing a product, and recognize it to be competitive, to do what we really wanted to do we had to think globally. It was going to be about finding these global markets through finding other people who shared our passion, who were young embryonic business people in many cases who wanted to get into the business because they shared that passion, they knew the markets, they knew the space, and could develop a business as a distributor for us. And as time went on we did begin to recognize that nobody really cares about Black Diamond as much as Black Diamond people do, and for that reason we would have to take charge ultimately of the businesses that we were, the business we were conducting overseas through independent distributors. And there was also a recognition that to be the same brand in Europe or in Asia as we were in North America, we would have to be something slightly different because of cultural values, cultural interpretations.

>> In Salt Lake, like every two to three months stay here for one week to two weeks and but we work together on a daily basis. My name's Thomas Hodel, I'm from Switzerland. Born in Lucerne. Doing outdoor sports were, was always a big part of my life so a big passion of me and that's why I'm here working at Black Diamond sharing that passion and I have two roles at the moment. On a global view I'm responsible for all the ski categories, so together with the team here we define strategies and directions for all the categories which belong to the ski side. And then in Europe I'm the European Category Director so the role there is to make sure whatever we do here works also in Europe and the European needs are covered. And it takes a long time to really figure out the differences in Europe and it's every country has a different culture, mentality. Having that European perspective, I think that's a, that's definitely asset I can bring into this glob- into this company and help this company to become more global and to address those needs better.

>> What is most important to the success of Black Diamond is our unique culture and in all of the, in all of our locations the people that we've put in place there to lead those businesses, they all have a real passion for these activities. They have spent substantial time here. They've been immersed in this culture. They see how we operate. At our Asian facility that we built as a Greenfield project eight or nine years ago, what we did right in the process of hiring, right when we started, was we got people, anybody like you have to learn to repel, repel off the roof. We'd do weekend events where we'd take them hiking. So we're instilling in folks in a myriad of ways what the BD attitude and philosophy is towards life, towards work, collegiality, cooperation. You're only as strong as your weakest member. You have to have implicit trust and confidence in the competency of your partners.

>> So yeah having been in Asia for almost seven years it's a very dynamic culture, especially in China. There's a strong sense of change. There's a strong sense of growth. My name is Vindi Agher [assumed spelling]. Actually you pronounce it as Vindi Agher, but that's difficult so Vindi Agher, I go with Vindi Agher. I'm the VP of Manufacturing here at Black Diamond. Our business is really global. Our customers are global. And our manufacturing is definitely global as well. So yeah we own our own factory in Zhuhai. The products that we assemble and produce in the factory in Zhuhai are also part of this protective products that we use, that will be used in climbing and mountaineering so the quality needs to be good. But also we want to ensure that it's been done in a good way. So we control it from start to finish which means how we treat the people, how we manufacture, and how we run the organization that we ensure that everything is done in the right way.

>> Then another part of our business when it comes down to the soft goods, that is made what we call in the trade OEMs, original equipment manufacturers. Our people, our engineers-- in this case also my daughter, she's a developer of the apparel line-- she is spending weeks at a time at these factory partners in a place like Vietnam or China or Bangladesh and I would not send a 26 year old, my 26 year old daughter to spend time and be in these factories if I weren't comfortable with them. But more importantly, we have a certification and compliance process. We have auditors that go into these factories. We have a very strict guideline of ethical sourcing requirements. So we check these factories. We're not at some sweatshop. The factories that we're in, I think of the apparel factory in Bangladesh, the people get three meals a day, there's healthcare, there's English language, there's money for additional education, it's well ventilated, well lit. It's clean. It's safe. Because that's very important to us and what our values are. Being a global operation brings with it incredible opportunities for growth, for unique insights, for innovation, for just thinking differently than you would otherwise think. It also is taxing, time consuming. It demands that you are constantly questioning your, we're Americans so our American sort of perspective on things. It requires us, if we want to be true to being global, to not just nod at being global but create a true global management team, make sure that that team is part of the leadership team and part of the decision making process. Because being global is about more than just selling globally. If you really want to be a global brand, you have to think globally. And that's easy to say and harder to do.

Questions:

1. How does Black Diamond integrate social responsibility into its culture? (1 mark)

2. How does the global nature of the company and its markets influence how it thinks about employee diversity? (1 mark)

3. (a) How would you describe Black Diamond’s ethics in terms of how it treats its employees at the company’s factory partners in Vietnam, China, and Bangladesh? (1 mark)

     (b) Do you think that it is appropriate for firms like Black Diamond to scrutinize its partner factories like this? (1 mark)

     (c) Why or why not? (1 mark)

Compute and Interpret Liquidity, Solvency and Coverage Ratios
Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows.

(a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.)
2006 current ratio = Answer
2004 current ratio = Answer

2006 quick ratio = Answer
2004 quick ratio = Answer

2006 liabilities-to-equity = Answer
2004 liabilities-to-equity = Answer

2006 total debt-to-equity = Answer
2004 total debt-to-equity = Answer

2006 times interest earned = Answer
2004 times interest earned = Answer

2006 cash from operations to total debt = Answer
2004 cash from operations to total debt = Answer

2006 free operating cash flow to total debt = Answer
2004 free operating cash flow to total debt = Answer

(b) Which of the following best describes the company's credit risk?

Both the quick ratio and current ratio for 2006 are lower than 1.0 and have increased in the past two years. Along with interest coverage ratios that are exceedingly high, the probability that the company will face default has significantly increased.

Both the quick ratio and current ratio for 2006 are lower than 1.0 and have decreased in the past two years. Along with interest coverage ratios that are exceedingly low, the probability that the company will face default has significantly increased.

Both the quick ratio and current ratio for 2006 are above 1.0 and have decreased in the past two years. Along with interest coverage ratios that are exceedingly low, the probability that the company will face default has significantly decreased.

Both the quick ratio and current ratio for 2006 are above 1.0 and have increased in the past two years. Along with interest coverage ratios that are exceedingly high, the probability that the company will face default has significantly decreased.

Stellar Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2017.

Greg Forda is an accounting clerk in the accounting department of Stellar Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant.

A)Calculate the lower-of-cost-or-market using the individual-item approach.

Researchers now believe that most medical errors cannot be prevented by perfecting the technical work of individual doctors, nurses, or pharmacists. Improving patient safety often involves the coordinated efforts of multiple members of the health care team, who may adopt strategies from outside health care.”

“The report reviews several practices whose evidence came from the domains of commercial aviation, nuclear safety, and aerospace, and the disciplines of human factors, engineering and organizational theory. Such practices include root cause analysis, computerized physician order entry and decision support, auto-mated medication dispensing systems, bar coding technology, aviation-style preoperative checklists, promoting a ‘culture of safety,’ crew resource management, the use of simulators in training, and integrating human factors theory into the design of medical devices and alarms.

” Discuss this concept of utilizing standard business quality initiatives and the logic of adopting them to use in healthcare. Using the practice of Root cause analysis, research, summarize, and include how you might apply this concept in your healthcare facility

It is one thing to intellectually learn all of these theories and concepts. It is another to actually put those concepts into practice. It is when we apply what we have learned to our lives that we will experience real change. I want to challenge you to apply the techniques for active, empathetic and responsive listening. This exercise will take intentionality and planning for it to be worthwhile.

Begin by choosing someone with whom you will be having this conversation. Is there someone whom you have been neglecting in the listening department? Is there someone who is typically unheard? Or do you have an unresolved conflict that would benefit from some active listening?

After you have chosen, be sure to set the stage properly for listening. Review key concepts from this week and think through how you will apply them. Next, challenge yourself by implementing these concepts in a real conversation. Feel free to ask the individual afterward, how you did and if they felt heard. Take notes soon after the conversation is over, so it is fresh in your mind. Write a response describing your experience and applying each of the concepts used

A client earned in first year of business, in 2015 $50,000 in cash however was told that the money earned did not have to be claimed however you learned that the client actually earned $190,000 in 2015 in cash.

Is it correct that if you earned all cash it does not have to be reported?

Is the cash that the client made taxable? If so how much?

.What will you tell the client?

What laws govern this situation? (Source)

What penalties are possible? (source for the information)

a. are tax-deductible, i.e., reduce the taxable income of the corporation b. to an individual become non-taxable income to that individual c. to another corporation receive preferential tax treatment (70% tax exclusion) d. to an individual become taxable income of that individual and receive 30% tax exclusion

You are comparing two annuities which offer monthly payments of $700 for five years and pay 0.6 percent interest per month. Annuity A will pay you on the last day of each month (ordinary annuity) while annuity B will pay you on the first day of each month (annuity due). Which one of the following statements is correct concerning these two annuities? a. Annuity B has a higher future value than annuity A b. Both annuities have the same future value as of ten years from today c. Annuity A has a higher future value than annuity B d. Both annuities will have zero value at the end of five years

Nora has some questions for you regarding her individual tax return and C-C Bakery. Her business has been doing extremely well, and she has decided to give back to her community. She would like to contribute $70,000 in December of 2016 to the charitable and nonprofit Boys and Girls Club. She would like to know if she should contribute this from her business account or her individual account. She would also like to know if there are any tax advantages or limitations. Her bakery has been profitable, as her taxable income is projected to be around $500,000 on her 2016 tax return. Her adjusted gross income on her individual return will be around $350,000. She has made no further charitable contributions throughout the year. In a short memo, advise how she can take advantage of the deduction for the charitable contributions to her community via her individual return and/or corporate return.

1. How does the IFRS evaluation and recording of goodwill compare with the US GAAP?
2. One of your colleagues says that intangible assets should always be amortized over their legal lives. Is he/her correct?
3. Your company needs to raise cash to market a new product it developed. One of your colleagues says “Our Company has an awful lot of goodwill. Why do not we recommend that we sell some of it to raise cash?” How should you respond to him?
4. Contrast the following types of bonds: (a) secured and unsecured, (b) term and serial, (c) registered and bearer. Write a brief memo to one of your investors recommending which option(s) is preferable? And Why?
5. The market price of bonds is solely a function of the amount of the principle payment at the end of the term of the bonds. Do you agree? And why?
6. Your company is considering issuing a convertible bond. Evaluate the advantages and disadvantages of a convertible bond from the stand point of (a) your company and (b) bond holders.

a. Using

α=0.025​,

perform a​ chi-square test to determine if the type of medal and the country that earned it are independent of one another.

Identify the null and alternative hypotheses for a​ chi-square test of independence based on the information in the table. Choose the correct answer below.

A.

H0​:

Type of medal and country that earned it are not independent of one another.

H1​:

Type of medal and country that earned it are independent of one another.

B.

H0​:

Type of medal and country that earned it are independent of one another.

H1​:

The country that earns the medal affects the type of medal.

C.

H0​:

Type of medal and country that earned it are independent of one another.

H1​:

Type of medal and country that earned it are not independent of one another.Your answer is correct.

D.

H0​:

Type of medal and country that earned it are independent of one another.

H1​:

The type of medal affects the country that earned it.

Find the​ chi-square test statistic.

χ2=nothing

​(Round to two decimal places as​ needed.)