Investment Proposal Draft

To: Clark Hansen, CEO of AMDP

From: Ariya Nathu, Research and Development Analyst for AMDP

Date: March 10th, 2023 

Subject: Investment Proposal of Lush Ltd. 

 

 

After considerable research and analysis, I recommend that AMDP does not invest in Lush Ltd. Lush is a cosmetics company that produces a variety of products centered around face and hair care. They continuously present themselves as a socially responsible and environmentally friendly business. However, after further investigation, they are not as dedicated to these causes as they promote. The company does not align with AMDP standards. 

 

 

I will first highlight the guidelines that AMDP holds itself to. I will then present Lush’s background, financials, claims, and the validity of these claim, supported by two expert opinions. Finally, I will present my final recommendation. 

 

 

AMDP Guidelines 

 

AMDP focuses on businesses that operate in a socially responsible, environmentally sustainable, and profitable way. These are the guidelines used to accomplish this standard. 

 

 

Triple Bottom Line 

The triple bottom line is a business concept that suggests firms should focus on their social and environmental impact in addition to their financial success. It is centered around the 3 P’s:

·      Profit: the financial performance or value generated for shareholders

·      People: the social impact or value created for all stakeholders affected by the business 

·      Planet: the positive impact made on the planet (Miller, 2020)

 

 

Corporate Social Responsibility 

Corporate social responsibility is a form of self-regulation that reflects a business’s commitment to contributing to the well-being of communities and society through different environmental and social measures. To appear genuine, the practices should be integrated into the culture and business operations of the company (Reckmann, 2023). 

 

 

Social Enterprise 

A social enterprise is a business with a mission to address a societal need. They exist to serve the common good. A social enterprise uses their profits to improve the community and planet (Annie E. Casey Foundation, 2020). 

 

 

 

Carbon Footprint

A carbon footprint is the amount of carbon dioxide emissions that are associated with a company. It is measured by looking at a company’s direct emissions (fossil-fuel combustion in manufacturing) and indirect emissions (emissions needed to produce electricity). Higher levels of greenhouse gasses are tied to climate change and pollution levels. By reducing our carbon footprint, we can protect the environment and planet for ourselves and future generations (Selin, 2020). 

 

 

Overview of Lush Ltd. 

 

 

Background 

 

 

Financials

 

 

Company Claims 

 

 

Validity of Claims 

 

 

Expert Opinions 

 

 

Recommendation

 

 

 

Works Cited 

Miller, K. (2020, December 8). The triple bottom line: What it is & why it's important. Business Insights Blog. Retrieved February 26, 2023, from https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line 

Reckmann, N. (2023, February 21). Corporate Social Responsibility. Business News Daily. Retrieved February 26, 2023, from https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html 

Selin, N. E. (2020, December 6). Carbon footprint. Encyclopædia Britannica. Retrieved February 26, 2023, from https://www.britannica.com/science/carbon-footprint 

The Annie E. Casey Foundation. (2020, December 10). What is a social enterprise? The Annie E. Casey Foundation. Retrieved February 26, 2023, from https://www.aecf.org/blog/what-is-a-social-enterprise 

 

 

 

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