Name: Kashima WrightCandidate #:Centre #:Teacher: Ms. MorrisonTerritory: Jamaica

TITLE

“AN INVESTIGATION OF THE SOCIAL AND ETHICAL ISSUES IN FINANCIAL

REPORTING OF HILO PORTMORE”

ACKNOWLEDGEMENT

Firstly I would like to thank the lord for giving me the health and strength to assemble

this internal assessment together. Secondly, I would like to thank the Hilo Company

located at Portmore Pines Plaza, for accommodating my research for the past two weeks.

This company was very supportive in helping me with the completion of this internal

assessment. Last but not least I would like to thank Mrs. Morrison for her constant drive

to help me in completion this research which as taught me a lot about the social and

ethical issues in financial reporting.

*size 12 font please

INTRODUCTION

This internal assessment was done to mainly to obtain additional information on the

social and ethical issues in financial reporting in which the Hilo company as practice. The

context of this internal assessment involves the following:

1. What are social and ethical issues?

2. How the company practices this?

3. What is financial reporting?

In addition to this the researcher hopes to share with its readers the information which

was attained.

TABLE OF CONTENTS

CONTENTS PAGE

Title

Acknowledgement

Introduction

Report

Aims and Objectives

Methodology

Literature Review

Statement of Limitation

Data Analysis

Evaluation

Recommendation

Reference

Appendices

AIMS AND OBJECTIVES

AIMS

1. To develop an understanding of what the social and ethical issues of Hilo are and

what are some of the measures being put in place to achieve this.

2. To develop an awareness of how social and ethical issues has impacted on the

development of Hilo.

3. To develop an appreciation of the need for organizations to act as responsible

citizens.

4. To provide basic information about how the organization has made a contribution

to the community.

5. To evaluate the impact of social, ethical and environmental issues on the

community.

6. To understand the roles and functions of establishing the organization as a fair,

honest and truthful company in terms of the quality of goods and services.

OBJECTIVES

1. To identify social and ethical issues in financial reporting.

2. To assess the operating effectiveness of the company and structure.

3. To comply with the company’s regulations and government laws.

4. To provide assurance that the company goals and objectives are being

achieved.

5. To develop skills to analyze cases related to problems in finance meaning

discourage the arrance of errors and irregulations.

METHODOLOGY

In the data collected for the completion of this internal assessment both primary and

secondary sources were used. Questionnaires are a form of primary source which was

used by the researcher. The researcher feels that questionnaires would be less time

consuming to complete not only this but so that it guarantees confidentiality since

respondents are not required to attach their names. In addition to this the researcher

thinks that the questionnaires would be much easier to distribute and would be received

quickly.

Secondary source which was used was the internet. This enables the researcher to

assess more information about the company and what activities they may engage in. This

form of collecting data was very convenient for the researcher since internet connection

was readily available and could be access at any time.

The study group for this research project was a group of worker, managers and

supervisors at Hilo Portmore located at Portmore Pines Plaza. The reason for which this

area was selected is the workers would be better able to answer the questions since they

would be aware of the activities in which the company engages in. A total of sixteen

questionnaires were issued, it was expected that sixteen (16) would be returned. These

questionnaires were distributed to members of the company. This questionnaire targeted

the following age groups16-20, 21-30, 31-40 and 41-over. The selection of this sample was

done through the process of random selection.

LITERATURE REVIEW

As sited by www.google.com Social Issues are matters which directly or indirectly affect

a person or many members of a society and are considered to be problems, controversies

related to moral values, or both. Under certain models of political issues, they are seen as

distinct from economic issues. With further investigation of this site a definition was also

found for Ethical Issues the site states that an ethical issues is a Problem or situation

which requires a person or organization to choose between alternatives that must be

evaluated as right (ethical) or wrong (unethical). Another site www.wikipedia.com gave a

definition for financial reporting and it says that financial reporting or A financial

statement is a formal record of the financial activities of a business, person, or other

entity. In British English—including United Kingdom company law—a financial

statement is often referred to as an account, although the term financial statement is also

used, particularly by accountants.

For a business enterprise, all the relevant financial information, presented in a structured

manner and in a form easy to understand, are called the financial statements. They

typically include four basic financial statements, accompanied by a management

discussion and analysis:

Balance sheet: also referred to as statement of financial position or

condition, reports on a company's assets, liabilities, and Ownership

equity at a given point in time.

Income statement: also referred to as Profit and Loss statement (or a

"P&L"), reports on a company's income, expenses, and profits over a

period of time. Profit & Loss account provide information on the operation

of the enterprise. These include sale and the various expenses incurred

during the processing state.

Statement of retained earnings: explains the changes in a company's

retained earnings over the reporting period.

Statement of cash flows: reports on a company's cash flow activities,

particularly its operating, investing and financing activities.

For large corporations, these statements are often complex and may include an extensive

set of notes to the financial statements and management discussion and analysis. The

notes typically describe each item on the balance sheet, income statement and cash flow

statement in further detail. Notes to financial statements are considered an integral part of

the financial statements.

Kashima, there is a lot of unnecessary information in this Literature Review, just

focus on what others have said about social and ethical issues and nothing else.

Delete all of this page plus the last paragraph on the above page. Once you have done so your word limit will be more reasonable because before I

typed all this it was over 3500 words.

STATEMENT OF LIMITATION

During the researchers investigation a number of problems were encountered. The main

problems in which the researcher face were it was very difficult and time consuming

meaning that the time when the researcher visited was not always convenient to the

company which resulted in the researcher having to travel back and forth to the company

on a regular basis which was very expensive. Although all these problems were faced it

gave me the motivation in completing this internal assessment more.

54%

46%

DOES THE COMPANY HAVE ANY INVOLVEMENT IN THE COMMU-

NITY IN WHICH ITS SURROUNDED BY?

YESNO

Figure 1 shows that out of the 16 persons who were given questionnaires,

majority (91%) responded that the company is involved in its surrounded community.

On the other hand 9% of the respondents stated that the company was not involved in

the community.

HOW THE COMPANY PARTICIPATES

NUMBERS OF RESPONDENTS

OUTREACH PROGRAMMES 3

FUN DAYS 3

CUSTOMER’S APPRECIATION DAY 5

NONE OF THE ABOVE 2 Figure 2 is a table which was outlined to show how the company participates

in the surrounding community. Respondents were asked to state if the company was

involved in the community the respondents who stated yes were asked to state the ways

in which the company does this. Five persons stated that customer’s appreciation day was

one of the major ways in which the company participates in the community. Three

persons also stated that outreach programmes and fun days were other ways in which the

company shows its involvement in the company. The other two persons state that none of

these methods was a way in which the company shows its involvement in the community.

NUMBER OF HOURS WORKED

NUMBERS OF RESPONDENTS

10 HOURS 2

9 HOURS 11

OTHER(8 HOURS) 3

Figure 3, suggests that out of the 16 workers of the company in which

questionnaires given to eleven (11) people stated that they spent 9 working hours a day at

the company. With further analysis of the data three person tastes that they worked 8

hours while on the other hand two (2) persons said that the worked 10 hours

*Label all tables, Table 1, Table 2 and all other charts Figure 1 etc.

N.I.SHEALTH

BENEFITSNONE

01234567

WHAT HEALTH SERVICES DOES THE COMPANY OFFER TO IT'S

EMPLOYEES?

Figure 4 shows the various ways in which the company provided health

services for its employees. 47% (7) of persons who were given questionnaires stated that

the company provides health benefits for the employees working at the company.

Another 40 %( 6) of persons stated that the company provides N.I.S (National Insurance

Scheme) for the employees of the company. The remaining 13 %( 2) stated that the

company doesn’t provide any health services for members working at this company.

IN WHAT FORMS DOES THE COMPANY TRY TO OULINE

THEIR RESPONSIBILITIES AS CORPORATE CITIZENS?

CONDUCT THEIR BUSINESS IN A MORALLY WAY

CONFORM TO THE LAWS OUTLINE BY GOVERNMENT

Figure 5 from the figure above we can accumulate that seven of the questionnaire

respondents stated that a way in which the company outline their responsibilities as

corporate citizens is by conducting their business in a morally way. Conversely the other

respondents stated that conforming to the laws outline by government is another way in

which the company can outline their responsibilities as corporate citizens.

*spell check for outline in the question that is in the Figure.

IMPROVING THE SAFETY AWARNESS IMPROVING WORK

CONDITIONS AND TREATMENT OF

WORKERS

ADJUSTING THE HEALTH SERVICES FOR

WORKERS

02468

WHAT ARE SOME MEASURES THE COMPANY SHOULD INTRODUCE TO IMPROVE THE HEALTH & SAFETY

LEVELOF THE COMPANY?

Figure 6 of 16 the persons who were given questionnaires 8 stated that improving

the safety awareness was one of the measures which the company should improve.

Conversely 5 persons stated that improving work conditions and treatment of workers

was another way in which the company would improve the health and safety level of the

company. In addition to this 3 persons suggests that adjusting the health services for

workers was other way in which the company could improve the health and safety level

of the company.

012345678

WHAT ARE SOME OF THE POSSI-BLE WAYS THE COMPANY CAN

PROMOTE THEMSELVES AS GOOD CITIZENS?

Figure 7 the diagram above ways the possible ways in which the company can

promote themselves as good citizens. Of the 16 questionnaires that were given to each

workers of the store, 7 persons stated that contributing to the community is a way in

which the company can do this. Conversely 5 persons suggested that treating consumers

fairly was a way in which the company could promote themselves as good citizens. The

remaining 4 persons stated that showing loyalty towards consumers in difficult economic

conditions is another way of doing this.

BEING RECOMMENDED BY OTHERS CONSUMERS & INVESTORS

CONTINUE WITH THEIR SERVICES IN THE COMPANY

0 2 4 6 8 10 12

WHAT ARE SOME RESULTS THE COMPANY WOULD EXPERIENCE

DUE TO THE GOOD RELATIONSHIP THAY HAVE WITH CONSUMER &

INVESTORS?

Figure 8 shows that 11(69%) of respondents stated that due to the good relationship

in which the company as with its consumers and investors it may lead to being

recommended by other consumers and investors. The other 5(39%) of these persons

suggested that this may result in the consumers and investor continuing their services in

the company

IMPROVE THEIR PRO-DUCTIVE TECHNIQUES

ACCESS THE QUALITY OF GOODS AT LOWER

PRICES

Series1 6 10

2.5

7.5

WHAT ARE SOME METHODS THE COMPANY COULD USE IN IM-PROVING THEIR QUALITY OF

GOODS & SERVICES?

Figure 9 the diagram above shows that out of the 16 person who were given

questionnaires, 10 responded that the company needs to access the quality of goods at

lower prices in order to improve their quality of goods. The other 6 persons stated that

improving their productive techniques was another way in which the company can

improve their quality of goods and services.

CARS

SHIPS

TRUCKS

0 1 2 3 4 5 6 7 8

WHAT FORMS OF TRANS-PORTATION DOES THE

COMPANY USES?

Figure 10 shows that majority of respondents stated the use of trucks was a way

in which the company transports its goods to the necessary branches. 5 others persons

who were given questionnaire states that car was another way in which the company

transports its goods. The least popular measure by ship in which 3 persons stated was also

used by the company.

38%

19%

44%

WHAT ARE SOME RECOMMENDA-TIONS YOU WOULD MAKE TO IM-PROVE THE SOCIAL,ETHICAL &

ENVIRONMENTAL ISSUES OF THE COMPANY? MORE INVOLVEMENT IN

THE COMMUNITYIMPROVING THEIR SOCIAL RESPONSIBIL-ITYMARKET NEW PRO-MOTIONAL CAMPAIGN TO ATTRACT CON-SUMERS

Figure 11 as shown above 37% of respondents thought that in order for the

company to improve its social, ethical and environment issues they need to be more

involved in the community. Another 19% stated that the company should improve its

social responsibility. Conversely 44% of the persons suggested that the company should

market new promotional campaigns to attract consumers.

EVALUATIONUpon investigation at Hilo Portmore it has been proven that the company practices social,

ethical and environment issues in financial reporting. A further investigation was done on

the company website http://www.gracekennedy.com/companies/hilo-food-stores-ja-ltd

Hi-Lo has evolved as one of the leading supermarkets in Jamaica; admired by both its

customers and competitors. With its competent and dedicated group of employees, Hi-Lo

is focused on creating long lasting relationships with our customers through our FS5

commitment to Fresh Stores, Fast Service, Frequent Savings, Full Shelves, and Friendly

Smiles. This philosophy is facilitated through our locations island wide. The company’s

website also mentioned that the operations have been supported by several customer

service initiatives through the passage of time in an effort to serve its customers better.

These initiatives commenced with the annual Farm and Flower Fair and later the

Manor Park Tea Room, the Senior Citizen’s programme, Sunday opening, private label,

and a designated customer service line. In 2007, Hi-Lo Food Stores received the

Divisional CEO’s award for the most improved company in Grace Kennedy’s GK Foods

division, having made profit consistently for the year, and in 2008 received the Company

of the Year award. Today, Hi-Lo remains profitable and is poised for expansion. Hi-lo

food stores opened at the end of November in the Portmore Pines Shopping Centre in

Portmore, St Catherine in which Approximately 50 persons were employed. On their

website it was also stated that the company has a good management team and a dedicated

staff who have been doing an excellent job. It was also mentioned that the company is

very focused on customer satisfaction and operational efficiency.

With further investigation of the data that was collected from members of staff at hi-

lo*Capitalize the company’s name) Portmore it was discovered that majority of the

workers were aware of the company’s involvement in the community. From the sixteen

(16) questionnaires that were issued to these members only six (6) respondents disagreed

with this, as is shown in Figure 1.this shows that either the members of this company

were not made aware of the company’s involvement in the community. This may mean

that the company needs to circulate messages with the other employees of the company

so that there would be no misinterpretation in the company. Based on the information

presented it shows(pasts tense please) that majority of the members who were given

questionnaires were aware of the ways in which the company participates in the

community. As clearly shown on Figure 2 that the main way in which the hi-lo company

participates in the community in which it is surrounded by on the other hand outreach

programmes and fun days was another way in which the members suggested was used by

the company however, 2(type out the 2) persons stated that the company is not involved

in the community. This may mean that the company needs to do more in the community

so that these persons would be more aware of the ways in which the company participates

in the community. Of the 17 members who were given questionnaires 56% strongly

agreed that the company try to outline their responsibilities as corporate citizens by

conforming to the laws in which are outlined by government these laws maybe include: if

the company has the necessary licenses to operate the business as well as if the members

have the necessary permits where needed for example food handlers permit. The other

remaining 44% stated that the company conducts the business in a morally way which

means if the company is following the social, ethical and environmental issues. This

information can be further outlined in Figure 5. During the analysis of the data my

attention was drawn to a particular question, “what health services does the company

offer to its employees?” To my astonishment some members stated that no health

services are offered at this company this is very hard to believe since a company has to

have these health services in place in order for it to pass certain laws of operating a

business. (This is of major concern if this is so then the company needs to put more

measures in place to protect its employees from any unwanted or harmful incidents.)The

information in the bracket is a recommendation, therefore put it under the

recommendation section) In conclusion another to this upon visiting the company it was

clear that the customers service at Hi-lo was very good since they see customers as their

first priority. The business was well kept at all times and its exterior was very attractive

to consumers. On the questionnaire that were issued a question was asked “to state some

recommendations in which could help the social, ethical and environmental issues of the

company?” Majority of these persons (44%) stated that the company should market new

promotional campaigns to attract new or old consumers. 37% of these person stated that

the company should show more involvement in the community which may result in these

community members supporting the company. The remaining 19% responded that

improving the company’s social responsibility ways the least popular way in which the

company can do this. This means that the company should do more to help the

community in which they are located in or just carry themselves as lawful citizens.

RECOMMENDATION

Upon investigation there were a number of recommendations which could be made these

include: better working works(works right here doesn’t make sense, please fix could be

introduced. The company could introduce the flexi-hours which are often used by

companies whose workers may have to pursue further studies and or have other

obligations.(Was this point brought out in the Discussions of the Findings? If not please

include) The company could also offer more health services for workers. During my

investigation I saw the need where more health services needs to be offered to workers

who are working both in the dangerous sectors of the job but not only this but also to

workers who are in the much safer fields since the company may never know when a

situation would arise so it’s best to do this. In addition to these the company may have

more involvement in the community in which they are located in this may result in

consumers and or investors feeling encouraged to continue their services with the

company.

I also saw the need for more activities to be introduce to help the surrounding community

this may include: helping members of the community who are facing difficult situation

the company may also help the community by beautifying the community, setting up

youth centre’s or libraries to help the youths in the community.

REFERENCE

1. www.wikipedia.com

2. http://www.gracekennedy.com/companies/hilo-food-stores-ja-ltd

3. http://m.jamaicaobserver.com/business/Hi-Lo-Portmore

4. www.goggle.com

*Please do this properly

Please make necessary corrections and print. Please use the new Headings that are on the Mark Scheme.

I am not seeing any paragraphs in your report. If you are typing in double space and you want to distinguish the different paragraphs you need to Triple space to do so since you are typing in the Block Style.

QuestionnairePlease place a tick in the box provided.

1. Sex Male [ ] Female [ ]

2. Age 16-20[ ] 21-30 [ ] 31-40[ ] 41-over [ ]

3. How long have you been working at this company?

One-Five years [ ]

Six-Ten years [ ]

Sixteen-Twenty years [ ]

4. Does the company have any involvement in the community in which it’s surrounded by?

Yes [ ]

No [ ]

5. If yes for the question above, state the way in which the company participates in the

community.

Outreach Programmes [ ]

Fun Days [ ]

Customer’s Appreciation Day [ ]

Other [ ]

None of the Above [ ]

6. How important do you think it is to have effective communication within the company?

Very [ ]

Not needed [ ]

Not sure [ ]

7. Has the company been complying with the regulation outlined by the government?

Yes [ ]

No [ ]

8. How many working hours do your employees work?

10 hours [ ]

9 hours [ ]

5 hours [ ]

Other ________________________________________

9. Do the employees agree to the working hours they are given?

Yes [ ]

No [ ]

10. What health services does this company offer to its employees?

N.I.S. (National Insurance Scheme) [ ]

Health benefits [ ]

11. In what form does the company try to outline their responsibilities as corporate citizens.

Conduct their business in a morally way [ ]

Conform to the laws outline by government [ ]

12. What are some measures you think should be introduced to improve the health and safety

level of the company?

Improving the safety awareness [ ]

Improving workers conditions and treatment of workers [ ]

Adjusting the health services for workers [ ]

13. What do you think are some of the possible ways the company can promote themselves as

good citizens?

Contribute to the community [ ]

Treating consumers fairly [ ]

Show loyalty towards consumers in difficult economic conditions [ ]

14. Do you think it’s necessary that the company has a good relationship with its employees as

well as its investors?

Yes [ ]

No [ ]

Not sure [ ]

15. If yes for the question above, what are some of the results the company would experience

due to the good relationship they have

Being recommended by other consumers and investors [ ]

Continue with their services in the company [ ]

16. Are these laws affecting health and safety in the work force?

Yes [ ]

No [ ]

Not sure [ ]

17. Discuss some of the methods the company could use in improving their quality of goods and

services.

Improve their productive techniques [ ]

Access the quality goods at lower prices [ ]

18. What forms of transportation does the company use to distribute its goods?

Cars [ ]

Ships [ ]

Trucks [ ]

19. Do you feel that the company is practicing the necessary disposal of their wastage?

Yes [ ]

No [ ]

Not sure [ ]

20. Due to the rapid increase of pollution of air, land and water, do you believe the company can

withstand all these and stil remain as the corporate citizen they are?

Yes [ ]

No [ ]

Not sure [ ]

21. What are some of the recommendations which would help to improve the social, ethical and

environment issues of the company?

More improvement in the community [ ]

Improving their social responsibility [ ]

Market new promotional campaigns to attract consumers [ ]