Estee Lauder Companies : Ethical Strategy Analysis

9260 WordsDec 6, 201038 Pages
------------------------------------------------- Estee Lauder Companies ------------------------------------------------- Ethical Strategy Analysis Jennifer Isikwe Analysis of the Ethical Strategy of the Estee Lauder Companies I. Background Information A. Brief History B. Other Relevant Information (Industry, environment, etc) II. Analysis of the Ethical Strategy A. Stated Ethical Strategy 1. Philosophy section of the mission statement 2. Explicit statements about ethics and social responsibility 3. Codes of ethics 4. Other information B. Corporation and its Major Stakeholders 1. Employees 2. Customers 3. Shareholders 4. Community C. Institutionalization of Ethics 1. Explicit…show more content…
Credit markets have recently experienced significant disruptions and certain lending institutions have either declared bankruptcy or have shown significant deterioration in their financial stability.1 If financial institutions that are parties to several cosmetic companies’ undrawn revolving credit lines, commercial paper programs, interest rate or foreign exchange rate hedging instruments were to declare bankruptcy or become insolvent, several cosmetic companies will be left with reduced borrowing capacities. Decreased Demand for Luxury Items The Estee Lauder Companies sells prestige products principally through limited distribution channels to compliment the image associated with its brands. These channels consist primarily of upscale department stores, specialty retailers, upscale perfumeries, prestige salons and spas, and pharmacies.2 The Estee Lauder Companies is characteristically considered to be a company who produces luxury items by choosing to operate through such channels. Recessions often lead to declines in consumer confidence and disposable income. During recessionary periods, when disposable income is lower, customer purchases of luxury items tend to decline. The cosmetics industry is experiencing a decline in consumer confidence that has resulted in decreased consumer traffic and the average value per transaction. Cosmetic companies have customers that range from select retailers to consumers. Cosmetic companies extend

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