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Sustainability Of Harvey Norman Holdings

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Question:

Discuss about the Sustainability Of Harvey Norman Holdings Limited.
 
 

Answer:

Harvey Norman Holdings Limited

Harvey Norman Holdings Limited is one of the largest retailer firms of Australia dealing mainly in furniture. It primarily operates in franchises in Australia but the main store is handled by Harvey Norman Holdings Limited. The company is founded by Gerry Harvey and Ian Norman and is headed by Katie Page (chief operating officer) (Baghai, Everingham and White 2000).

CVP Analysis

CVP or cost volume profit analysis refers to the analysis that revolves around the breakeven point of cost and volume of goods that is determined and provides huge help to managers in taking management decisions or any other decision related to business economics. CVP is mainly concerned with the impact that different scales of production and sales levels would have on operating profit.

In case of Harvey Norman Holdings Limited the impact different domains of operating activities would have on operating income is that, the contribution by the company towards the community sector accounts for a total of 43% compared to other companies. Now community in accounting terms refers to the national, global and local area where the company operates (CSRHub - Sustainability and Corporate Social Responsiblity (CSR) ratings on over 17,487 of the world’s largest public and private companies., 2017).

The next sectors that lead to an impact on the operating profit of the organization are the employees or the employee sector. It is concerned with the welfare of the workers or employees in terms of salaries or wages, compensation or benefits, required training related to skills and safety. The cost incurred on the expenditure related to the employee sector has an impact on operating profit for 42%.

The third and most important sector that leads to operating profit is environment. Environment refers to the surroundings in which the company works and the natural resources that the company uses. The extent by which it affects the operating income is 51%.

Ethical issues

During the period of employment in Harvey Norman Holdings Limited an employee may work you and in turn create items which must be secured by intellectual property laws, like the laws that claim to protect or protect patents, copyright and trade marks, designs. Therefore an employee of Harvey Norman all kinds of intellectual properties rights made inside the boundary of work will very naturally be possessed by Harvey the organizational entity. Other ethical standards of the company lie in the policies and regulations of the company like anti-discrimination and anti-harassment policies.  Harvey Norman Holdings Limited has high ethical standards to resolve any kind of ethical issues like equal employment policy, equal treatment of all employee policy (Van Der Laan and Dean 2010).

Sustainability issues

Sustainability issues in general refer to the issues that are faced by a particular organization in achieving or maintaining its sustainability goals.

Harvey Norman Holdings Limited deals in furniture, consumer products in the domain of electrical goods and computers. The company uses a lot of cardboard which if not recycled will affect the environment and also have an impact on the operating profit of the organization. Similarly the company takes enough initiatives to solve these kinds of sustainability issues like it reduces the use of plastic bags, recycles the white goods and reuse the wooden pallet (CSRHub - Sustainability and Corporate Social Responsiblity (CSR) ratings on over 17,487 of the world’s largest public and private companies., 2017).          

 

Referenes

Baghai, M.A., Everingham, B. and White, D., 2000. Growth down under. The Mckinsey Quarterly, pp.12-12.

CSRHub - Sustainability and Corporate Social Responsiblity (CSR) ratings on over 17,487 of the world’s largest public and private companies. (2017). CSR information for Harvey Norman Holdings. [online] Available at: https://www.csrhub.com/CSR_and_sustainability_information/Harvey-Norman-Holdings [Accessed 11 Sep. 2017].

CSRHub - Sustainability and Corporate Social Responsiblity (CSR) ratings on over 17,487 of the world’s largest public and private companies. (2017). CSR information for Harvey Norman Holdings. [online] Available at: https://www.csrhub.com/CSR_and_sustainability_information/Harvey-Norman-Holdings [Accessed 11 Sep. 2017].

Van Der Laan, S. and Dean, G., 2010. Corporate groups in Australia: State of play. Australian Accounting Review, 20(2), pp.121-133.          

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