MBA 500 Project Two Milestone Guidelines and Rubric
Overview
As you get ready to review and analyze the financial performance of the company you work for in Project Two, it would be helpful to analyze another company and learn from their business model, especially related to corporate social responsibility (CSR), sustainability, and activism.
Therefore, you will review Patagonia’s activism and corporate social responsibility initiatives and identify potential key financial performance indicators (KPIs).
Because Patagonia is a privately held company, its financial records are not available in the public domain. So, you are required to analyze the mission, vision, values, CSR initiatives, and financial records of the health and beauty company as well as the company you chose in Module One. You will then deduce which financial key performance indicators likely align with a company’s mission, vision, values, and CSR initiatives.
Prompt
To complete this assignment:
Review the resources you will be using in Project Two: Assessing Financial Performance.
Marketing and sales executive summary

Vision, mission, and values of your company

Consolidated balance sheet of your company

Consolidated cash flow statement of your company

Consolidated income statement of your company
Balance sheet of your chosen company

Cash flow statement of your chosen company

Income statement of your chosen company
Review information related to Patagonia’s corporate social responsibility and activism, as well as their mission, vision, and values. Use the following resources to help guide your research:

WileyPlus: Patagonia Case Analysis

Patagonia’s Corporate Social Responsibility and Activism
Patagonia—Our Footprint

Patagonia—Mission, Vision, Values

Based on your review of the financial records of the health and beauty company as well as the company you chose in Module One, identify common financial KPIs and explain how these could also align with Patagonia’s CSR initiatives and its mission, vision, and values.
Based on your review of Patagonia’s information, describe how CSR activism can lead to a better brand image and financial results.

Explain what the health and beauty company could do to incorporate CSR activism strategies to meet its own KPIs.
######
Consolidated Balance Sheet
$ thousand
$ thousand
$ thousand
31-Dec-18
31-Dec-17
31-Dec-16
Assets
Current assets
Cash and cash equivalents
Inventories
Accounts and other receivables
Prepaid expenses
6,121
8,164
14,178
1397
4,272
4,301
10,482
472
3,317
3,962
9,219
488
29,860
19,527
16,986
17,062
7,962
8,000
3,427
11,088
7,152
8,000
1072
10,270
6,520
8,000
1016
36,451
27,312
25,806
66,311
46,839
42,792
Accounts and other payables
7,768
7,457
6,426
Short-term debt
3,691
2,613
7,378
Deferred revenue
898
1,445
1,088
Non-current assets
Property, buildings and equipment
Intangible assets
Goodwill (See notation below)
Long-term Financial assets
Total assets
Questions to consider
– Is the building LEED Certified (planet)?
– Is the equipment new and energy efficient (planet)?
– Is the plant minimizing waste (planet)?
– Is the property focused on preserving natural resources (planet)?
– Is the equipment effectively producing more and safer products (people, profit)?
Questions to consider
– Is the company using its financial assets to support communities (people)?
– Is the company increasing its financial assets by decreasing waste (planet, profit)?
– Is the company focused on investing in funds of TBL companies (planet, profit)?
– Is the company’s stock portfolio diversified (people, planet, profit)?
Liabilities
Current liabilities
Other current liabilities
620
624
525
12,977
12,139
15,417
5,499
5,784
8,158
Question to consider
– Is the company managing liabilities to limit short -term interest
payments (profit)?
Non-current liabilities
Long-term debt
Other non-current liabilities
Total liabilities
339
346
1200
5,838
6,130
9,358
18,815
18,269
24,775
Equity
Shareholders’ equity
Common Stock
134
120
110
Additional Paid-in-Capital
3,574
2,227
2,107
Retained earnings
43,788
26,223
15,800
Total equity
47,496
28,570
18,017
Total liabilities and equity
66,311
46,839
42,792
Question to consider
– Is the company reinvesting its retained profit into TBL initiatives
Notation: Goodwill is defined as “an intangible asset that is created when one company acquires another company for a price greater than its net asset value.”
It has nothing to do with charitable or philanthropic efforts.
Consolidated Cash Flow Statement
for the year ended 31 December
$ thousand
2018
Cash Flow from Operating Activities:
Net Income
Adjustments to Reconcile Net Income to
Net Cash Flow from Operating Activities
Change in Accounts receivable
Change in Inventory
$ thousand
2016
18,565 $
11,423
10,784
Change in Prepaid expense
(3,696)
(3,863)
(925)
(1,263)
(339)
16
(2,750)
(1,335)
(2,250)
Depreciation and amortization
1,000
890
800
Change in Accounts Payable
311
1,031
(1,525)
Change in Short term debt
1,078
(4,765)
240
Change in Deferred revenue
(547)
357
432
(4)
99
33
11,919
7,449
4,429
(6,974)
(1,708)
(200)
(810)
(632)
–
Cost of new Other current assets
(2,355)
(56)
(25)
Net Cash Flow: Investing Activities
(10,139)
(2,396)
(225)
(285)
(2,374)
(1,150)
Change in Other noncurrent liabilities
(7)
(854)
(24)
Issuance of Common Stock
14
10
–
Change in Other current liabilities
Net Cash Flow from Operating Activities
$
$ thousand
2017
Cash Flow from Investing Activities:
Cost of new Property, buildings, and equipment
purchased
Cost of new Intangible assets
Cash Flow from Financing Activities:
Payments of Long-term debt
Change in Additional paid-in-capital
1,347
120
–
Payment of Dividends
(1,000)
(1,000)
(1,000)
Net Cash Flow: Financing Activities
69
(4,098)
(2,174)
Total Cash Flow increase/(decrease)
1,849
955
2,030
4,272
Cash Balance, Beginning
Cash Balance, Ending December 31
$
6,121
$
3,317
1,287
4,272
3,317
Questions to consider:
– Is the company experiencing positive cash flows from operating activities (profit)?
– How is the company generating cash flow from sustainable/environmentally friendly
operations (planet/profit)?
Question to consider:
– How is the company investing in other companies and their efforts to support TBL?
Question to consider:
– Is the company experiencing positive cash flows from financing activities (profit)?
Consolidated Income Statement
for the year ended 31 December
$ thousand
2018
Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses:
Selling expenses
Salary expense
Advertising expense
Administration expense
Depreciation and amortization expense
Salary expense
Other Operating Expenses
Total Operating Expenses
Operating Income
Other Revenue and (Expenses)
Charitable donations
Total Other Revenues and Expenses
Income Before Income Tax
Income Tax Expense
Net Income
$
174,090
93,000
81,090
35,000
8,000
1,000
10,800
2,200
57,000
24,090
$
500
500
23,590
5,025
18,565
tatement
cember
$ thousand
2017
$
$
$ thousand
2016
150,000 $
88,000
62,000
130,000
75,000
55,000
29,000
7,500
24,500
6,800
890
8,700
1,900
47,990
14,010
750
7,500
1,400
40,950
14,050
450
450
13,560
2,137
11,423 $
400
400
13,650
2,867
10,784
Questions to consider – Are we seeing year-over-year growth in revenues?
– Is this growth attributable to our CSR and TBL efforts?
Question to consider – Are we hiring to support TTL efforts and objectives?
Question to consider – Are we hiring to support TTL efforts and objectives?
Question to consider Our TBL strategies include giving back to the low-income
neighborhoods we are targeting. Does our charitable giving reflect
that increased support to those neighborhoods?
MBA 500 List of Companies
Note: The following websites have been used alongside official company websites as references for
confirming information and reports.
•
•
•
Mission Statement Academy
Comparably
AnnualReports.com
Apple Inc.
Items
Vision Statement
“We believe that we are on
the face of the earth to make
great products and that’s not
changing.”
Mission Statement
“To [bring] the best user
experience to its customers
through its innovative
hardware, software, and
services.”
Values
Corporate Social
Responsibility (CSR)
Annual Report
Links
A vision statement is not available on Apple’s official website nor on
any other official platform.
In the official discussion forum of Apple, there is a mention of a
vision statement, but it can’t be claimed as the authentic vision
statement of the company.
Communities: Vision and Mission of Apple, Inc.
A mission statement is not available on Apple’s official website.
However, in the 2018 Annual Report, in the Business Strategy
section, this statement is mentioned in the beginning, and the same
is found in multiple places as a mission statement of the company.
Apple Mission and Vision Statement Analysis
United States Securities and Exchange Commission: Apple Inc.
Annual Report
Today in Apple History: Apple Lays Out Its Core Company Values
The report available on Apple’s website in the Environment section
is entitled “Environmental Progress Report.”
For a focused look at how Apple is addressing environmental issues,
see Apple: Environmental Progress Report (Fiscal Year 2019).
Apple’s Annual Report for the year 2019 is available on the website,
in the Investor Relations section.
United States Securities and Exchange Commission: Apple Inc.
Annual Report
Amazon
Items
Vision Statement
Links
A vision statement is not available on Amazon’s official website; in
some places, the mission statement is referred to as a vision
statement.
Items
Mission Statement
“To be Earth’s most customercentric company, where
customers can find and discover
anything they might want to
buy online, and endeavors [sic]
to offer its customers the
lowest possible prices.”
Values
Corporate Social Responsibility
(CSR)
Links
Amazon Mission, Vision, and Values
The mission statement of Amazon is available on its website.
Amazon: Come Build the Future With Us
Amazon’s Mission Statement and Core Values
Amazon’s CSR report is available on its website.
Sustainability: All In (September 2020)
Annual Report
Sustainability: Thinking Big (September 2019)
Amazon’s annual report is available on multiple aggregator
platforms, but the most authentic source is the Amazon website
itself, in the subdomain dedicated to Amazon reports.
Investor Relations: Annual Reports, Proxies and Shareholder
Letters
2019 Amazon Annual Report
Toyota
Items
Vision Statement
Toyota’s global vision is
depicted using a picture of a
tree. Other websites and
Toyota’s annual report contain
a textual explanation of the
vision statement image.
Mission Statement “Toyota will
lead the future mobility society,
enriching lives around the world
with the safest and most
responsible ways of moving
people.”
Values
Corporate Social Responsibility
(CSR)
Links
Toyota Global Vision
Toyota’s website has three mission statements on it. However,
they read more like the philosophy of the company than as a
mission statement.
Toyota Global Vision
Toyota Mission and Vision Statement Analysis
Toyota’s CSR report is available on its website.
Toyota: Environmental Report 2020
Toyota: North American Environmental Sustainability Report 2022
Items
Annual Report
Links
Toyota: Annual Report 2019
Walmart
Items
Vision Statement
“Be the destination for
customers to save money, no
matter how they want to shop.”
Mission Statement
“To save people money so they
can live better.”
Values
Corporate Social Responsibility
(CSR)
Annual Report
Links
Walmart’s vision statement is not available on its official website.
Walmart Mission and Vision Statement Analysis
Walmart website doesn’t contain the mission statement, but on
their website, Sam Walton’s mission is quoted as the mission they
strive to advance.
The Walmart Digital Museum: A Global Company
Walmart Mission and Vision Statement Analysis
The Walmart CSR report is available on its website.
Walmart Environmental, Social and Governance Report Archive
Walmart’s annual report is available on its website in the Investors
section.
Walmart: Financial Information
Walt Disney
Items
Vision Statement
“To be one of the world’s
leading producers and providers
of entertainment and
information.”
Mission Statement
“The mission of The Walt Disney
Company is to entertain, inform
and inspire people around the
globe through the power of
unparalleled storytelling,
reflecting the iconic brands,
creative minds and innovative
technologies that make ours the
world’s premier entertainment
company.”
Values
Corporate Social Responsibility
(CSR)
Links
There is no mention of a vision statement on the company’s
website; however, on other websites the vision statement is
inferred from the company’s philosophy.
Disney Mission and Vision Statement Analysis
The mission statement of Walt Disney is available in the website’s
About Us section.
About the Walt Disney Company: Our Mission
Disney Mission and Vision Statement Analysis
Disney’s CSR report is available on its website.
The Walt Disney Company: 2019 Corporate Social Responsibility
Update
Items
Annual Report
Links
Walt Disney’s annual report is available on its website in the section
on Investor Relations.
The Walt Disney Company: Investor Relations
The Walt Disney Company: Fiscal Year 2019 Annual Financial Report.