Whirlpool Corporation Board Of Directors example essay topic

Whirlpool Corporation - A Lawful, Ethical, and CSR Minded Business Whirlpool Corporation - A Lawful, Ethical, and CSR Minded Business During the past several years global companies, like Whirlpool Corporation, have gained global awareness of the complex and evolving legal, ethical, and social expectations of their stakeholders. While many companies have started to tackle these new set of requirements by modifying their mission statements, business policies, and workplace practices, leadership companies continue to wrestle with the challenge of integrating these three vital topics into their overall business operation. Companies that successfully integrate plans to incorporate the legal, ethical and corporate social responsibility concerns within all areas of their business stand to gain financial and social benefits through the identification of new business opportunities, the strengthening of their brands and corporate reputation, the attraction and retention of top employees, and the recognition as a trusted partner (Integrating CSR: New Risks, New Rewards, 2004). In this particular paper, the author will attempt to describe how legal issues, ethics, and corporate social responsibility (CSR) impacts the management planning of Whirlpool Corporation.

Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of over $13 billion. They employ 68,000 people, and have nearly 50 manufacturing and technology research centers around the globe. The company markets Whirlpool, Kitchen Aid, Bras temp, Bau knecht, Consul and other major brand names to consumers in more than 170 countries. Whirlpool Corporation is also the principal supplier to Sears, Roebuck and Co., of many major home appliances marketed under the Kenmore brand name (Fast Facts, 2005).

Embedded in Whirlpool Corporation and their Board of Directors is the deeply held value that continues to guide them: 'There is no right way to do a wrong thing' (Continuing Legacy, 2005). This basic code of conduct underlies the company's long tradition of strong and independent corporate governance. Whirlpool's Board of Directors is currently comprised of eleven directors, nine of whom are independent directors who are highly regarded individuals with broad and deep business experience and with significant and relevant management experience. The Whirlpool board's principles and processes - which include internal annual reviews of board practices, the board selection process and the company's Code of Ethics - have been in place for many years. It is through this Board of Directors that Whirlpool Corporation implements the needed procedures and projects that governmental laws require. The Whirlpool Board of Directors has established some Corporate Governance Guidelines that will ensure that Whirlpool Corporation follows the governmental laws applicable to them.

Some of these guidelines include Board Involvement in Corporate Governance Issues. The Corporate Governance leads the Board in an annual discussion of major corporate governance issues and makes recommendations regarding how to implement governmental laws. In addition, the Board of Directors periodically assess the Corporation's Code of Ethics to assure it addresses appropriate topics, contains compliance standards and procedures, and complies with relevant NYSE listing rules or law. The Board alone can approve any waiver of the code for management or directors, and any such waiver must be promptly disclosed to shareholders in accordance with relevant NYSE listing rules and law.

Furthermore, Whirlpool Corporation has come to realize that the operation of a Board of Directors is a dynamic and evolving process. Therefore, these Guiding Principles need also to be periodically reviewed and revised. While no guidelines can cover each and every issue that may surface, Whirlpool Corporation believes these principles set the proper tone for the operation of the Whirlpool Board and will assist them in fulfilling their obligations to the diverse group of Whirlpool owners and other stakeholders (Corporate Governance Guidelines, 2005). An example of how Whirlpool Corporation's Corporate Governance Guidelines work within the laws of India was seen back in 1999 when the company was shown to support false advertising concerning their Quick Chill refrigerator.

Whirlpool stated in an advertisement that their Quick Chill model's harmful gases used in normal refrigerators has been replaced by environment friendly ones. However, the Advertising Standards Council of India (ASCI) had all documents to establish that the new gas, which Whirlpool was using, was not environment friendly. After a panel discussion, Whirlpool Corporation was forced to withdraw their advertisement. As a result of this incident, Whirlpool Corporation Board of Directors added to their Corporate Guidelines the following section on Advertising: "All Whirlpool Corporation's advertising must be truthful, not deceptive, and comply with the applicable laws, regulations, and Company advertising policies. Any claims about the performance or qualities of our products in advertising, sales-training material, and point-of-purchase displays or literature must be substantiated before being made.

Whirlpool Corporation will hold ourselves and our competitors to the same high standard when making comparative claims about competing products" (Appliance magazine. com, April 2003). As one can see, implementing procedures and guidelines to keep one's business in line with governmental laws is vitally important. Another topic that is equally significant to proper business management is ethical integrity. This is an area where Whirlpool Corporation leads the way. The aim of Whirlpool Corporation and its worldwide subsidiaries is to be known, trusted, and respected as one of the top enterprises in the world. To do that requires strong financial and ethical performance.

In support of their High Performance Culture and customer focus, Whirlpool's code of business ethics requires each of its employees to act responsibly and maintain the highest levels of personal, business, and legal conduct. That means walking away from a business agreement rather than violating the law or compromising their standards. It also means showing respect for those whose lives they affect and treating others as they would want to be treated, whether that person is a supervisor, colleague, or subordinate. This policy is provided to help employees make the right business conduct choices.

It highlights what the shareholders, customers, suppliers, colleagues, and the communities in which Whirlpool Corporation does business expect of them, and the minimum that each employees should expect of themselves. Ethical conduct has no boundaries - it applies to Whirlpool and subsidiary employees worldwide. Whirlpool's long-standing reputation for quality, excellence, and integrity demands that they make the correct choice in all cases (Corporate Code of Ethics, 2005, para. 1).

Furthermore, Whirlpool Corporation's Code of Ethics clearly states that management is responsible for making sure that proper attention is given to, and that controls are in place for, promoting compliance with their code of conduct and the specific Company policies addressing each area. Employees who fail to abide by these Company policies will face corrective action, up to and including termination from Whirlpool or its subsidiaries. This code briefly summarizes the conduct required by key policies and guidelines in effect in the U.S. and in many overseas locations and is intended to remind employees of the need to act ethically in all that they do (Corporate Code of Ethics, 2005, para. 3).

This need to act ethically is not seen any clearer than in Whirlpool Corporation's stand against money laundering. According to the Corporate Code of Ethics, all Company financial, accounting, research, test, sales, manufacturing and expense records or reports, time sheets, and other documents must accurately and clearly represent the facts of the underlying matter. Whirlpool has established accounting and other control standards and procedures to ensure that all Company assets are protected and properly used and that financial records are accurate and reliable. In addition, Whirlpool has in place policies governing the receipt of money and processing of payments to ensure compliance with money-laundering prevention laws.

Employees share the responsibility for maintaining and complying with required internal controls and ensuring that Company assets are not misused (Corporate Code of Ethics, 2005, para. 5). Furthermore, Whirlpool Corporation has made certain that they will be a business that sets the standard for ethics in the workplace. With this as a major aim for Whirlpool Corporation, it is not surprising that on April 2005, Business Ethics Magazine named Whirlpool one of 100 best corporate citizens. Furthermore, to add to their excellent reputation, Whirlpool Corporation was named one of 25 noteworthy companies on diversity by Diversity Inc.

Magazine (Yahoo Finance, 2005). Whirlpool is committed to encouraging and enhancing diversity throughout their organization. As the world's largest manufacturer of home appliances, two-thirds of Whirlpool's employees today are located outside of the United States. In North America as well they have a rich multicultural employee mix. Whirlpool is committed to fostering diversity because it's the right thing to do for their employees and for the success of their business (Whitman, 2003, para. 1).

To assist diverse employees with career development, Whirlpool has created several diversity networks. Diversity networks are voluntary employee groups that meet regularly to focus on related busi ness issues, stimulate two-way discussions about diversity issues and company progress, and to support Whirlpool Corporation's vision and values. One of these diversity networks is focused on the betterment of women employees. The Women's Network facilitates the integration of women's voices into the business... Diversity of thought. Whirlpool's broadest customer base is women.

The Women's Network serves as a vehicle for Whirlpool women to deepen consumer insights. Additionally, Whirlpool is a proud sponsor of many diverse organizations like Hispanic MBA Fellowship at the University of Notre Dame and the American National Red Cross employee diversity training program (Whitman, 2003, para. 5). Within the context of its business, Whirlpool not only aims to be lawful and ethical, but it also actively pursues a commitment to corporate social responsibility (CSR).

At Whirlpool they strongly believe in the principles of CSR - of achieving success in ways that honor ethical values and respect people, communities and the natural environment. Equal to protecting the health and safety of their employees, Whirlpool considers environmental stewardship among their most important business responsibilities. This belief is only reinforced as their operations extend to virtually every corner of the globe. Actions to protect their employees and preserve the environment for those who follow are based on more than a moral impulse; initiatives such as these help ensure the short-and long-term viability of their company. Working in harmony with the environment and supporting those in the communities that need support provides their stakeholders with a real sense of Whirlpool's values. Whirlpool operates globally in ways that honor their values and respect the people, communities, and natural environment in which they work and live.

With over 90 years of operating businesses in community settings, Whirlpool knows the importance of backing words with responsible actions that support their stakeholders. Within this section, the reader will find examples of Whirlpool's constantly-evolving initiatives taking place around the world in areas of energy conservation, employee and environmental protection, and corporate citizenship. Whirlpool firmly believes the socially responsible actions that they take today will produce bottom-line benefits tomorrow. And they know that their customers will benefit, not only from the use of their energy efficient products, but from the satisfaction of knowing that they (the customer) are doing the right things for their global community today, and for future generations (Social Responsibility, 2005, para. 1). Whirlpool Corporation continues to play a leading role in the development of innovative technology and high efficiency home appliance products that save energy and water resources for consumers in markets worldwide.

Whirlpool took its leadership to a new level in 2003 by being the first major appliance company to announce a global greenhouse gas reduction target that will be achieved in substantial part through the indirect emission reduction effect of producing resource efficient appliances. In the United States, Whirlpool has been an active partner of the ENERGY STAR (R) Program since August 1998, and has been honored with the ENERGY STAR (R) Partner of the Year Award six times (1999-2002, 2004, 2005). During this time, Whirlpool has designed and produced a number of appliance models across seven product categories specifically for the ENERGY STAR program (Social Responsibility and the Environment, 2005, para. 3). The company offers consumers a full range of energy-efficient products that reduce home energy costs. Whirlpool's ENERGY STAR qualified appliances provide exceptional levels of energy efficiency that meet or exceed government guidelines.

Currently, Whirlpool manufacturers over 300 ENERGY STAR qualified products under the Kitchen Aid, Whirlpool and other brand and trade partner names. Besides producing energy-efficient products, Whirlpool has taken steps to eliminate hazardous waste. At the Whirlpool's facility in Oxford, Mississippi, the employees have taken some drastic steps to reduce the environmental impact. 'Protecting the environment is an ongoing project for us.

We " ve taken the initiative to remove hazardous waste materials", says Sammy Carothers, Environmental, Finishing and Assembly Supervisor at the facility (Social Responsibility and the Environment, 2005, para. 8). According to Carothers, the Oxford Division has taken their generator status from the large quantity hazardous level to the non-hazardous generator status-which is the best there is. They did that by exploring different processes. Working with their chemical vendors, they were able to supply certain chemicals for their processes that eliminated the use of hazardous environmental materials. In addition to pursuing an environmentally friendly operation, Whirlpool has also demonstrated its commitment to community and society through its partnership with Habitat for Humanity.

Whirlpool Corporation is the largest Cornerstone Partner of Habitat for Humanity. Far from being just a participant or partner, the company leads the effort to build 100,000 homes between 2001 and 2005. Whirlpool Corporation's $25 million commitment consists of donating an ENERGY STAR (R) model refrigerator and freestanding range to every Habitat home built in North America through 2005 (Whirlpool and Habitat for Humanity, 2005). On a global scale, Whirlpool has opened up its "hands" to help out. For example, Whirlpool Mexico provides appliances and service support to disaster relief efforts. Whirlpool Mexico, working with the Federal Attorney for Consumer Protection, came to the rescue of inhabitants of the states of Hidalgo, Pueblo, Vera Cruz, Oaxaca and Tabasco.

"Whirlpool Mexico gave support to the population affected by storms, rains, floods and tremors and help them in repairing appliances without cost as well as donating products", says Hector Mun guia, Whirlpool Government Relations Representative for Whirlpool Mexico (Social Responsibility and Mexico, 2005). Also, Whirlpool Corporation is committed to organizations, programs and causes that improve the quality of life for the customers they serve in communities in Central Europe. In Slovakia, for example, there is a joint initiative between Whirlpool Slovakia and the Faculty of Economics of the University of Bansk'a Bistrica, enabling students who cannot afford to travel long distances to a university to study for a bachelor's degree in Economics and Company Management. The course lasts three years and is held every Saturday on the company premises in Pop rad (Social Responsibility and Education, 2005). As shown, the success of any company, especially Whirlpool Corporation, is in properly balancing management planning with legal issues, ethics, and corporate social responsibility. Whirlpool Corporation has shown that through its leadership - the men and women responsible for guiding the day-to-day activities of the business as well as identifying future opportunities for growth - it is possible to balance all these issues and still make a profit.

The key to their success is held in the fact that Whirlpool Corporation's management team believes in the company's values-based strategy. These executives put the customer at the center of everything they do, encourage lawful thinking, promote ethical behaviors and decisions, and value corporate social responsibility. Whirlpool's leadership team works daily to realize the vision of every home, everywhere. It is their pride in the company, passion about their consumers, and strong performance that will help them reach their goal of giving back to the very communities that have helped to make the company successful.

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