Need help with a case study. Thanks!

Need help with a case study. Thanks!

International Accounting International Corporate Social Reporting Case 15-1 The Case of Modco Inc. There is no clear definition of corporate social reporting (CSR), The European Commission defines CSR as \"the responsibility of enterprises for their impacts on society.\" In the United States, there is no governmental regulation regarding CSR. Companies tend to develop their own codes of conduct which their members as a whole should aspire to follow. Early notions of CSR can be traced back to the 1960s. Currently, CSR generally includes the economic, legal, ethical, and philanthropic responsibilities of companies. The economic responsibilities of companies refer to the provision of goods and services to the public and making a profit; the legal responsibilities refer to the need to act within the law; the ethical responsibilities relate to the recognition of doing what is right and fair, when this has not been codified into the law; and philanthropic responsibilities refer to the acceptance of the need to be good corporate citizens and improve the quality of life. Since the beginning of this century, multinationals and their operations have slowly begun to be scrutinized by different segments of society, using social responsibility as a criterion. Consequently, CSR has evolved into a complex concept that is now a key component of corporate decision making. However, campaigns and public scandals involving issues ranging from environmental pollution to child labor and racial discrimination resulted in increased media attention to the activities of multinationals. Nowadays, many leading multinationals seem to prepare sustainability reports voluntarily based on the Global Reporting Initiative (GRI) Guidelines, which are a set of guidelines for businesses, created to stimulate socially responsible corporate behavior. The GRI has developed reporting guidelines for companies to assist them in disclosing nonfinancial information about the way they pursue their activities. The guidelines address, among other things, the environmental and social conduct of companies. Company Profile Modco was founded in 1960, with the opening of the first Modco discount store, and was incorporated as Modco Stores Inc. in January 1970. The company's shares were listed on the NYSE in 1975. Modco has a full range of groceries and general merchandise in a single store. Modco is proud of the fact that it offers its customers a one-stop shopping experience and is one of the largest private employers in the United States and one of the world's largest retailers. It has more than 8,000 retail units under several banners in 15 countries. The all share a common goal of promoting the idea \"better life for people by helping them save money.\" Modco has 2 million employees worldwide, and generated net sales of $200 billion during fiscal year 2012. Since 2005, Modco has published its annual report on its Web site. According to its CEO, Modco's annual report reflects the social and environmental dimensions of its activities, and its constant and progressive work toward social responsibility issues. Modco's 2012 annual report states how its emphasis on sustainability has helped the company to be the retail leader in the market. According to the report Modco has investments in education, health, commitments to fight hunger, support for local farmers, and access to healthier and affordable food. Such reports portray an image of the company as a role model of CSR. Company Conflicts There has been a national class action against Modco which started nearly a decade ago. Plaintiffs allege that female employees in Modco retail stores were discriminated against based on their gender, regarding pay and promotion to top management positions. In 2006, the relevant U.S. District Court issued a judgment in favor of the class action. Modco unsuccessfully appealed to the U.S. Court of Appeals. Later Modco appealed to the U.S. Supreme Court, which reversed the Appeals Court's decision in May 2012, concluding that the millions of plaintiffs and their claims did not have enough in common. In September 2012, the plaintiffs' lawyers filed an amended lawsuit limiting the class to female Modco employees in the district where the company head office was located. The new lawsuit alleges discriminatory practices against approximately 100,000 women regarding pay and job promotion, as well as requiring nondiscriminatory pay and promotion criteria. At the end of 2011, it was announced in the local radio that Modco was using child labor at two factories in Bangladesh. Children aged 10-14 years old were found to be working in the factories for less than $50 a month, making products of the Modco brand for export to the United States. Modco's annual report, called Global Responsibility Report,\" covers the three dimensions of \"People, Planet, Profit.\" This report emphasizes gender equality and a diverse workforce. In 2010, Modco took the commitment on step further with the incorporation of the Advisory Board on Gender Equality and Diversity, with the specific function of providing equal and enhanced opportunities for all in top leadership roles. Modco has also committed itself to selling products that sustain people and the environment. Required Assuming that you are part of a research team examining the CSR policies of large companies, evaluate the CSR policy of Modco