Internal Control and Home Improvement

1928 WordsJan 30, 20138 Pages
Ethics in Corporations Lowe’s Home Improvement is a chain of retail home improvement based in the United States. It was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s Home Improvement has expanded internationally into Mexico, Canada, and joint venture with Woolworths Limited in Australia. Lowe’s Home Improvement ranked 54 in Fortune 500 for 2012, decreasing four spots in 2011 ("Cnn money," 2012). Lowe’s Home Improvement is the second largest retail home improvement chain, behind The Home Depot. There are 1,724 Lowe’s stores throughout United States, Canada, Mexico operating with more than 234,000 employees ("Lowe 's home improvement, 2012”). Stakeholders are individuals, groups, or organizations that have a stake in the…show more content…
Anything over $25,000 is distributed among the rest of the district. To make up $2500 in pure profit is to sell roughly $6,000 when you calculate employee salary, utilities, and facility cost. Marketing (Deceptive Advertising) The Federal Trade Commission (FTC) oversees any deceptive claims of products or services. Recently, the FTC won a $40 million settlement against Sketchers’ toning shoes and apparel. Sketchers falsely represented clinic studies claiming their Shape-Ups, Toners, Tone-Ups, and Resistance Runners would help people lose weight, and tone and strengthen their butts, legs, and abdominal muscles. The most deceptive ad was used during Super Bowl featuring Kim Kardashian firing her personal training for a pair of Shape-Ups. Sketchers truly believed they would win the multiple lawsuits in different states, but choose to settle out for the ease of the company and individuals (Bachman, 2012). Deceptive advertisement can negatively affect internal and external stakeholders. Customer service is the most important aspect of any business. Deceptive advertising can create a negative experience for customers, which directly affect employees. A bad customer service experience can dramatically cost any business thousands of dollars. The internet is the playground for anyone. This can create a bad reputation when individuals post on their Facebook, Twitter, or other social media sites. If a business loses its customers base, it cannot
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