AMDP Draft

To: Professor Clark Hansen, CEO, AMDP

From: Lola Mendez, member of the Research and Development Department

DATE: February 28, 2023

SUBJECT: Investment Recommendation Memo


As a member of the Research and Development Department at AMDP, it is my responsibility to identify possible investment opportunities for the company. While conducting extensive research, we have found the company North Face as a potential candidate. North face is a popular brand known for its activewear and outdoor gear. They excel in crafting their products to withstand harsh weather while being stylish. Recently, they have been creating their products by using recycled, responsibly-sourced materials while decreasing their carbon footprint. Investing in North Face will help a company with similar core values to AMDP and achieve financial growth.

I will go in-depth about our standards to show the similarities between ADMP and North Face. Second, I will provide information about North Face's sustainability practices and social responsibility in a profitable manner. Lastly, I will present two experts' opinions that will provide information to help ADMP decide if this investment is worth consideration.

ADMP Standards

As a member of ADMDP, we aim to strive for social responsibility, environmentally sustainable, and financial success. However, to achieve this, we must clearly understand these values.

Triple bottom line-

The idea behind the triple bottom line is that businesses should measure their social and environmental effect in addition to their financial success rather than concentrating only on making money or the traditional "bottom line." To achieve this, this concept involves “ The Three P”

• Profit: An organization’s financial performance, or the profit it makes for shareholders, is the primary factor in determining its success.
• People: Companies focus on their societal impact and reorient their efforts to add value for all parties affected by their decisions, including clients, staff, and community members.
• The Planet: Businesses striving to positively impact the planet using environmental metrics.

Corporate Social Responsibility

"Corporate social responsibility" encourages businesses to incorporate environmental and social concerns into their daily operations and stakeholder interactions. Also, it is the method through which a company's goal is to balance its commitments to economic, environmental, and social goals while meeting stakeholder and shareholder expectations. (UNIDO, 2022)

Social Enterprise

"Social enterprises" are when companies generate profit while addressing soci­etal needs and applying their skills and business practices to benefit society.(The Annie E. Casey Foundation, 2020)

Carbon footprint

"Carbon footprint" is the total amount of greenhouse gasses produced by human actions that cause the climate to become warmer. Greenhouse gas emissions can be emitted when carrying out a process, creating a good, or carrying out an activity. Reducing carbon footprint takes time, but we can start by making minor adjustments to our behavior, such as eating less meat, booking fewer connecting flights, and line-drying our clothes. ( The Nature Conservancy, 2023)

Overview of The Northface

Background

Financial history

Sustainability practices

Expert opinions

Recommendation

Work Cited

The Annie E. Casey Foundation. “What Is a Social Enterprise?” The Annie E. Casey Foundation, 10 Dec. 2020, https://www.aecf.org/blog/what-is-a-social-enterprise.

Miller, Kelly. “The Triple Bottom Line: What It Is & Why It's Important.” Business Insights Blog, 8 Dec. 2020, https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line.

“What Is CSR?” UNIDO, Apr. 2022, https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr#:~:text=Corporate%20Social%20Responsibility%20is%20a,and%20interactions%20with%20their%20stakeholders.

“What Is Your Carbon Footprint?” The Nature Conservancy, Jan. 2023, https://www.nature.org/en-us/get-involved/how-to-help/carbon-footprint-calculator/.