Organizational Performance Analysis and Recommendations
Organizational Performance Analysis and Recommendations- Part 3 and Executive Summary
For this final Assignment, you will continue in your role as consultant to the executive team of a midsize copper smelting company in northern Canada. As a reminder, here is a summary of the team’s current situation and need:
Due to some recent changes to the local environmental air quality laws, the company’s large coal-fueled smelting furnace is now operating out of compliance due to high levels of pollutants in the exhaust gases. The regulatory agency has given the company 12 months to demonstrate compliance, after which it will be fined $1,000 per day until the operations meet the regulation. The company has two alternatives. The first alternative is to install air scrubbers to reduce the output pollutant levels. The second alternative is to convert the smelting furnace from coal to natural gas. Both alternatives will meet the current regulatory requirements, but there is a slight concern that the air scrubber solution may not meet future regulatory restrictions. The executive team wants you to perform a financial performance analysis on both alternatives using several different capital budgeting methodologies. The team also is seeking guidance on non-financial considerations regarding the company’s ethical and social responsibilities related to this decision.
Last week, for Part 2 of your report, you provided company leadership with guidance related to the company’s ethical responsibilities related to this decision. This week, you will conclude the report with Part 3, which addresses the company’s social change responsibilities related to the decision. You will also prepare an executive summary in which you will synthesize your findings and recommendations for the company leaders.
As a reminder, you will continue adding on to the report you have been developing during the last 2 weeks. In addition to the requirements that follow, be sure to incorporate references to appropriate academic sources, such as those found in this week’s Learning Resources or those in the Walden Library.
To prepare for this Assignment:
- Return to the Module 3 Assignment Template you utilized in Week 8 and Week 9. With the research and readings from Week 8 through Week 10 in mind, incorporate any feedback, as needed, into your report as you complete Part 3 and the executive summary.
Submit your completed business report to the executive team. For this final submission, incorporate Part 3 (approximately 3–4 pages in length, excluding title page and references) and the executive summary (page 1 of your report) as follows:
Part 3: The Tripple Bottom Line and Positive Social Change
For this part of your report, you will explore aspects of the triple bottom line and positive social change that the company should consider when choosing an investment. In addition to the financial information provided, your client wants to be sure that the investment is working toward the greater good for its stakeholders. You will provide that information by showing them, through the triple bottom line, that the company can capture profits and demonstrate protection to people and the planet. You also will show the executive team how this concept can lead to having its decision promote the good of all people through positive social change. To complete this part, address the following:
- Define the triple bottom line and analyze its importance within an organization. Give examples of how the organization might address each of the three Ps.
- Illustrate how the triple bottom line can lead an organization to have an influence on positive social change. Provide at least two examples of how this can be accomplished.
- As part of your discussion with the executive team on the triple bottom line and its potential impact on positive social change, you believe it is important to emphasize the need for the leaders to ask the right questions to ensure effective implementation of the triple bottom line. To help demonstrate the effectiveness of questioning as a means of leading change, propose three to five questions that the executive team members should ask their staff to prompt both a learning mindset and lead to improved collaboration within their organization. Be sure to provide your reasons for choosing these questions and substantiate your position.
Executive Summary
Provide the leadership team with an executive summary of your findings and recommendations. This will serve as the first page of your report. Be sure to address the following in your executive summary:
- Clearly identify the purpose of the report.
- Concisely summarize your analysis and recommendations for the organization’s leaders related to the financial and nonfinancial considerations that could impact their stakeholders, their bottom line, and their ability to effect positive social change.
Module 3 Assignment: Organizational Performance Analysis and Recommendations
Prepared by: Replace this text with your name.
Date: Replace this text with the submission date.
Walden University
MBAX 6050: Accounting for Management Decisions
Executive Summary
Replace this text with your executive summary.
Part 1: The Financial Performance Analysis
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Insert your calculations of the NPV, payback, IRR, and ARR from Excel. Add or remove headings as necessary. For information on inserting data from Excel into Word, refer to the following: Microsoft. (n.d.). Insert a chart from an Excel spreadsheet into Word. https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1
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Part 2: Ethical Responsibility
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[Heading]
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[Sub-Heading]
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Part 3: The Triple Bottom Line and Positive Social Change
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[Heading]
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[Sub-Heading]
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References
[Please delete this note before submitting your Assignment. For more information about formatting your reference list, please visit the following site: https://academicguides.waldenu.edu/writingcenter/apa/references .]
Include appropriately formatted references to support your Assignment. Refer to the Assignment guidelines for further information on the requirements.
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Account for Management Decision Making
Week 10 Learning Resources
Triple Bottom Line
In the language of accounting, the bottom line used to refer to the last line on the income statement. It shows either a profit or a loss. That was the concern of all managers. As companies began to understand that they needed to also be concerned about our planet and the people who work for them as well as those that live in the surrounding communities, the triple bottom line was developed.
· Byars, S. M., & Stanberry, K. (2018). 3.4 corporate social responsibility (CSR)Links to an external site. . In Business ethics . OpenStax. https://openstax.org/books/business-ethics/pages/3-4-corporate-social-responsibility-csr
· Elkington, J. (2018, June 25). 25 years ago, I coined the phrase “triple bottom line.” Here’s why it’s time to rethink it . Harvard Business Review Digital Articles , 2–5. http://hbr.org
· Franklin, M., Graybeal, P., & Cooper, D. (2019). Why it mattersLinks to an external site. . In Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/13-why-it-matters
· Franklin, M., Graybeal, P., & Cooper, D. (2019). 13.1 describe sustainability and the way it creates business valueLinks to an external site. . In Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/13-1-describe-sustainability-and-the-way-it-creates-business-value
· Franklin, M., Graybeal, P., & Cooper, D. (2019). 13.2 identify user needs for informationLinks to an external site. . In Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/13-2-identify-user-needs-for-information
· Franklin, M., Graybeal, P., & Cooper, D. (2019). 13.3 discuss examples of major sustainability initiativesLinks to an external site. . In Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/13-3-discuss-examples-of-major-sustainability-initiatives
· Murphy, S. (2017, April 3). How business can catalyze social change; A triple, bottom-line focus on people, planet and profit will serve progressive companies as they serve humanityLinks to an external site. . The Globe and Mail.
· Walden University, LLC. (2024). The triple bottom line Download The triple bottom line [PDF]. Walden University Canvas. https://waldenu.instructure.com
Questioning
Have you ever asked what to you seems a reasonable question and the response you get is a blank stare, a dismissive answer that shuts down further conversation, or an answer that doesn’t really give you the information you were seeking? Perhaps you were asking the wrong question, or perhaps you were asking the question in a way that put the other person on the defensive. In these resources, you will consider how asking questions appropriately and effectively can create opportunities for open, honest discussion and help you get the answers you need.
· Marquardt, M. J. (2014). Asking the right questionsLinks to an external site. . In Leading with questions: How leaders find the right solutions by knowing what to ask (pp. 83–102). John Wiley & Sons.
· Marquardt, M. J. (2014). The art of asking questionsLinks to an external site. . In Leading with questions: How leaders find the right solutions by knowing what to ask (pp. 103–127). John Wiley & Sons.
· Walden University, LLC. (2024). The art of asking questions Download The art of asking questions [PDF]. Walden University Canvas. https://waldenu.instructure.com
· Wood Brooks, A., & John, L. K. (2018, May 1). The surprising power of questions . Harvard Business Review , 96 (3), 60–67.
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Lakenya Campbell
Walden University
Account for Management Decision Making
Dr. Schmidt
October 19th, 2025
Organizational Performance Analysis and Recommendations—Part 1
This report analyzes two capital investment proposals; the Air Scrubbers and the Furnace Fuel Change in order to get the copper smelting enterprise in line with the new environmental laws. The Net Present Value (NPV), Internal Rate of Return (IRR), Accounting Rate of Return (ARR), and Payback Period methodologies were used in evaluating the financial performance for each proposal (Walden University, LLC, 2024c). The calculations were used to decide the most economical option.
Capital Budgeting Results Summary
The comparison made between the calculated metrics shows that the Furnace Fuel Change project is more financially viable, as it produces greater returns in all the discounted cash flow measures.
|
Metric |
Air Scrubbers |
Furnace Fuel Change |
|
Net Present Value (NPV) |
$835,256 |
$1,674,358 |
|
Internal Rate of Return (1RR) |
14% |
21% |
|
Accounting Rate of Return (ARR) |
20.00% |
21.66% |
|
Payback Period (Years) |
6.00 |
4.40 |
Financial Performance Analysis and Recommendation
The analysis contributes greatly to the choice of the Furnace Fuel Change project. The main technique used to maximize the shareholder wealth is the NPV, and it yielded a positive value of $1,674,358, approximately twice that of the Air Scrubbers project (Walden University, LLC, 2024a). Moreover, the Furnace Fuel Change had an IRR of 21%, greater than the 6% capital cost, which means that the rate of return on the investment is great. Conversely, the Air Scrubbers proposal returned a lower IRR of 14%.
Besides profitability, it is important to evaluate how much time a project would take to recover the initial capital (Walden University, LLC, 2024b). The Payback Period of the Furnace Fuel Change is about 4.40 years and much lower than the 6.00 years of the Air Scrubbers. As a result, the fast recovery decreases the exposure of the company to risk and makes capital available for reinvestment at an earlier point. Although the Accounting Rate of Return is not based on the time value of money, it also prefers the Furnace fuel change at 21.66% (Franklin et al., 2019). With the dominance in all financial indicators, the Furnace Fuel Change project shall provide the maximum return, thus the best option.
References
Franklin, M., Graybeal, P., & Cooper, D. (2019). 11.5 Compare and contrast non-time value-based methods and time value-based methods in capital investment decisions. In Principles of accounting, volume 2: Managerial accounting. OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/11-5-compare-and-contrast-non-time-value-based-methods-and-time-value-based-methods-in-capital-investment-decisions
Walden University, LLC. (2024a). How to calculate NPV and IRR [PDF]. Walden University Canvas. https://waldenu.instructure.com
Walden University, LLC. (2024b). ARR/ROI [PDF]. Walden University Canvas. https://waldenu.instructure.com
Walden University, LLC. (2024c). Net present value, accounting rate of return, internal rate of return, and payback to make investment decisions [PDF]. Walden University Canvas. https://waldenu.instructure.com
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Organizational Performance Analysis and Recommendations – Part 2
Lakenya Campbell Walden University
MBAX-6050 Dr. Schmidt October 26th, 2025
Ethical Responsibilities
Upon evaluating both investment options, the Copper Company should maintain ethical requirements of compliance and integrity of data. As the regulatory inspection and possible punishment become stricter, there is the need to maintain ethical management in a bid to have sustainable operations. Managerial accounting results in ethical conduct, obedience, continuity of the company while maintaining trust of the stakeholders, and long-run economic profitability.
Importance of Ethics in Managerial Accounting
Ethical behavior holds the basis of managerial accounting that establishes organizational credibility and financial transparency as its base. It incorporates such standards as integrity, objectivity, and professional competence that contribute to providing employees with the opportunity to make good and legal financial choices (Franklin et al., 2019). The Institute of Management Accountants (IMA) reiterates these values to call on the accounting professionals to be upright and precise in relation to the financial reporting.
Abiding by the ethical standards assists in sustaining the trust of the stakeholders in that they ensure they have the relevant knowledge to formulate reasonable objectives. Similarly, clear records allow proper cost prediction, investment rating, and compliance with the regulations. On the other hand, unethical practices, such as data manipulation and misconduct of noncompliance, negatively affect management decisions and threaten their financial stability. False declarations of emissions can escape the process of scrutiny in the short term; however, this may lead to punishment, tarnished reputation, and loss of organizational credibility in the long run.
On the same note, ethics fill in the profitability as well as the responsibility gap. The ethical companies are more likely to win the loyal investors and customers who appreciate transparency, which, consequently, facilitates profitability and competitive edge (Byars and Stanberry, 2018b). Hence, effective sound managerial accounting practices based on ethical considerations can be the root of credible corporate governance.
Organizational Impact of Ethical and Unethical Behavior
Business ethics are not only restricted to legal and ethical compliance, but also, they affect all the areas of organizational performance. Ethical practices also develop a culture of accountability, which encourages the employees to be responsible and work in line with the corporate values. Unethical behavior, on the other hand, kills internal morale and outside relations. Workers who are subjected to fraud or falsification of data tend to lose their motivation, and this could lead to turnover and a decline in productivity.
Financially, the lack of proper ethics in business may cause short-term and long-term losses. The risk of the regulatory penalty of up to 1000 dollars/day shows how the lack of honesty or timely response to the reports on compliance can be used to directly compromise profits. Moreover, stakeholders are likely to avoid investing if a reputational loss may occur once an organization is regarded as unreliable, and this may ruin the relationship with suppliers. As Gottschalk (2019) points out, the reputation of Fuji Xerox was destroyed due to unethical accounting, and the lack of investor confidence and the rise of oversight costs followed. Hence, unethical behaviors have both actual and non-actual consequences, which go beyond financial records.
Ethical behavior, however, leads to the realization of high achievements of goals in the company. By being honest, the management inspires employees to report discrepancies, audit, and get committed to objectives. The organization is perceived as credible by customers and the regulators, and it creates goodwill and long-term stability. Additionally, ethical decisions create sustainable profitability by decreasing the legal risks and gaining the trust of people. Therefore, robust ethics enhance efficiency, stakeholder relationships, and buoyancy during reputational crises.
Recommendations to Strengthen Ethical Responsibility
The following measures should be implemented in order to instil ethical responsibility throughout the organization.
1. Formal Ethics and Compliance Program.
Implement a written Code of Ethical Conduct that is consistent with IMA standards, make ethics training mandatory at least periodically for all employees and supervisors, and publish disciplinary procedures. Environmental reporting needs to be highlighted in training and the legal implications of falsifying (Walden University, LLC, 2024). Besides this, incorporate scenario-based modules that show rationalization of misconduct and how to resist.
2. Independent Oversight and Dual Authorization.
Form an Ethics and Compliance Committee comprising executive finance board, operation, and environmental representatives. Demand bilateral approval of each regulatory filing and periodic external audits by an independent company of emissions and other financial statements. This multi-layered measure improves the degree of control and responsibility and corporate relations with authorities.
3. Whistleblower Protections and Confidential Reporting.
Combine non-punitive, confidential, and non-retaliatory reporting systems. These avenues must be deployed in the regular discourse of communication to ensure that the employees are aware of how to frame their issues correctly. On the same note, credited reports must be timely and autonomously investigated, and correct resolutions checked and taken.
4. Ethical Performance Metrics and Incentives.
Use ethical standards on performance appraisal and remunerating the executive. As an illustration, internal reporting and rates of audit errors are evaluated through timely and correct reporting of regulators. The incentives are channelled towards ethical performance and, in the process, discourage the urge to give false reports, thus creating an environment of rewarding honesty.
Moreover, the management is expected to model ethical behavior; it should serve as a good example to employees and remind them that honesty and integrity are more important than immediate gains. Hayes and Broughton (2014) confirm that ethical organizations are built bottom-up, and therefore, managerial commitment supports the initiative.
References
Byars, S. M., & Stanberry, K. (2018a). Introduction. In Business ethics. OpenStax. https://openstax.org/books/business-ethics/pages/1-introduction
Byars, S. M., & Stanberry, K. (2018b). 1.1 Being a professional of integrity. In Business ethics. OpenStax. https://openstax.org/books/business-ethics/pages/1-1-being-a-professional-of-integrity
Byars, S. M., & Stanberry, K. (2018c). 1.2 Ethics and profitability. In Business ethics. OpenStax. https://openstax.org/books/business-ethics/pages/1-2-ethics-and-profitability
Franklin, M., Graybeal, P., & Cooper, D. (2019). 1.4 Describe the role of the institute of management accountants and the use of ethical standards. In Principles of accounting, volume 2: Managerial accounting. OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/1-4-describe-the-role-of-the-institute-of-management-accountants-and-the-use-of-ethical-standards
Gottschalk, P. (2019). Evaluation of fraud examinations: The case of inappropriate accounting practices at Fuji Xerox. Deviant Behavior, 40(11), 1421–1427. https://doi.org/10.1080/01639625.2018.1559640
Hess, M. F., & Broughton, E. (2014). Fostering an ethical organization from the bottom up and the outside in. Business Horizons, 57(4), 541–549. https://doi.org/10.1016/j.bushor.2014.02.004
Walden University, LLC. (2024). Unethical accounting practices [PDF]. Walden University Canvas. https://waldenu.instructure.com
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