Coffee Shop
The case regarding Hermes fund management supports a much larger and contentious theme regarding investment management. Are managers responsible for the social initiatives of their shareholders? More important is it a fund manager's duty to uphold the social and political aspirations of their shareholders. As the case illustrates, the duty to both shareholders and society is indeed a fine line.
In regards to the case Hermes is correct in its activist stance towards investing so long as it benefits the shareholders in which they represent. As the case illustrates, Hermes has many risks that it must properly navigate in order to provide capital preservation for its shareholders. One such is risk is reputational in nature. As Total continues to conduct business in controversial countries, Hermes is subject to various risks to its reputation, which could ultimately cause redemptions in its funds.
However in regards to many of the more subjective risks, Hermes should not interrupt the business operations of the firms in which they invest. The primary purpose of business is to generate profits for its owners. Milton Friedman, himself taught this concept extensively throughout his prestigious career. As such many of the more socially or morally correct governance practices should not be pursued by Hermes fund managers. For one, the fund undoubtedly has numerous shareholders. As one of the better known firms in the industry, the firm is responsible for management activities for individual investors, endowments, and pension funds. As such, the firm does not have the right to promote social issues that it deems necessary. By doing so, the firm alienates one section of investors in favor of another. This is not the firm's duty. Instead, if the firm is doing its job in regards...
Coffee Crisis is a case study that represents the dilemmas inherent in the production of coffee by many developing nations. The coffee market fluctuates with changes in supply and demand. When supply exceeds demand the price or if the demand for coffee weakens in international markets then this can have vast implications on the price of coffee. In 2001, coffee markets were at a forty year low for a variety
45). Threats Some times on my workdays, I encounter challenges and obstacles that I need to be ready to face. Some customers are not happy with the coffee rooms and demand a refund. Besides, other guests become extremely angry and may want to inform the senior management. Our competition is other coffee houses, which is right next to us. The hotel is closed for now, but a lot of work is
The article discusses the rise of government intervention in markets by means of industrial policy. Several examples are cited, including a French toymaker, the U.S. government's intervention with automobile and bank bailouts and European involvement in knowledge industries. It is noted that while poorer countries often use industrial policy to help protect nascent industries and to foster growth in certain target sectors, this is not always the case in the
Today, the company makes it clear that it is a baker of bread. Founder Ron Shaich has served at Panera's Chief Executive Officer for more than 25 years. Panera currently has 1,264 bakery-cafes in 40 states and Canada, delivering what the company refers to as fresh, authentic artisan bread and cafe foods. The company's mission, "a loaf of bread in every arm" sounds more like a tagline. However, the company
Coffee Industry According to legend the origins of the coffee industry began when an Arabian goatherd named Kaldi found that his goats reacted strangely around a certain green-leafed bush with red cherries. He ascertained that the excitement exhibited by the goats was due to the effects from eating these cherries. He also consumed some of the fruit and felt "invigorated"; later monks were said to have benefited from the plants qualities
One still cannot live with a clear conscience and drink a cup of coffee without paying the price of knowing that somewhere in the world there are people who are switching to growing coca instead of coffee trees because coffee, the only alternative to becoming a villain, failed to provide the necessary means for a decent living. Coffee continues to be a product that brings economic advantages for latifundia
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