Case Analysis - Allied Electronics

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Case Study Analysis: Allied Electronics Corporation Ltd: Linking Compensation to Sustainability Metrics Dr. Venter and Venter Junior Robert Venter, second-generation Chief Executive (CE) of family-owned Allied Electronics Corporation Ltd, considered the pros and cons of more clearly linking the firm's compensation system to sustainability performance. In June 2011, Altron, a multinational headquartered in Johannesburg, South Africa, controlled more than 200 companies in Africa, Europe, the US, the UK, Australia, and the Far East. More than 14,000 employees designed, developed, manufactured, and marketed a range of telecommunications, electronics, power electronics, and information technology systems and products. Having made a clear…show more content…
King III and the How Altron embraced change With the new legal requirement, known as King III, in South Africa required organizations to publish their integrated reports, Altron had an edge on its competition since it had already started publishing its report a year before the legal requirement. As mentioned in the case, Venter, chief executive of Altron, find this to be satisfying since it put the company in a proactive position. Altron was able to adapt with the new legal requirement faster than the other companies. This adaptation to the evolving reporting environment led Altron to come up with a new, better and a more integrated corporate strategy. There was an increase in the strategic themes from 8 before the new reporting system to 11 with the implementation of the new reporting system. Even though most of the strategic themes of the company were the same, they were now looked upon with a broader perspective. Along with the 8 existing themes revitalized and broadened, three important themes were added which were essential for the growth and sustainability of the company. These themes include: * Human capital * Environment * Corporate governance Venter believed these new themes were critical for future
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