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Essay / Research Paper Abstract
An 8 page paper elaborating on the problem statement, hypotheses, sampling and statistical method used in the companion paper, KSmgmtDowTBL.rtf. The proposed method is that of applying regression analysis to Dow’s stock price performance after April 1994, the date that the company announced it would halt production of 1,1,1 trichloroethane by December 1995, years in advance of the cessation required either by international treaty by 2005 or by the US 1990 Clean Air Act by 2002. The goal is to determine whether Dow’s commitment to social responsibility and sustainability correlates with financial performance (i.e., the triple bottom line). Bibliography lists 8 sources. Includes an appendix containing expenditures 1993-2002 for environmental restoration and prevention, and another containing stock price data for the sample period.
Page Count:
8 pages (~225 words per page)
File: CC6_KSmgmtDowTBLmeth.rtf
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Unformatted sample text from the term paper:
not intended to be a part of the paper in bold italic. Problem Statement and Hypotheses Dow Chemicals senior management believes that
operating ethically and with attention to the triple bottom line (TBL) is more cost effective than the more traditional approach to business that focuses solely on the financial bottom line.
The triple bottom line includes attention to financial results of course, but it also addresses the issues of whether the organization is socially responsible and engages in activities that
are sustainable over time. This idea flies in the face of most corporate financial wisdom in todays business environment. When the bottom
line encompasses only financial results, senior management is expected to post positive gains on a quarterly basis regardless of what the company is involved in that can build for the
future. Environmentalism is all well and good, just as long as it does not detract from financial results. The problem with this
view is that it does not allow organizations to build for the future in terms that truly are sustainable over time. It generally requires that organizations continue to maintain
the status quo so that they can continue to gain positive financial results from the activities that have given them positive financial results in the past. This is a
limiting view that severely restricts the organizations ability to change with changing customer needs and certainly with changing regulatory requirements. The question is
whether this intense attention only to the financial bottom line is valid. Also, there is a common belief that straying from historical modes of operation is costly and does
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