AMDP Memo (Draft)

 February 28, 2023

MEMORANDUM

TO: Professor Clark Hansen, CEO, AMDP

FROM: Ava Moralejo, R&D Associate

DATE: February 28, 2023

SUBJECT: Investment Recommendation Memo

Dear Professor Hansen,

The purpose of this memo is to present to you my findings on the potential investment in Aesop. This investigation will analyze Aesop as a profitable business and whether it aligns with AMDP in terms of being socially responsible and environmentally sustainable. First, I will define the terms Triple Bottom Line, Corporate Social Responsibility, Social Enterprise, and Carbon Footprint. I will then follow with a description of Aesop and its business practices related to the environment, society, and governance. Next, I will next discuss my opinions and examine the company’s efforts in these statements. I will then conclude with my final recommendation on whether Aesop is an equitable investment. 

AMDP Investment Standards

Below I will outline our standards for potential investment opportunities:

Triple Bottom Line

The triple bottom line is a business concept that measures performance beyond economic value. It takes into consideration not only monetary gain but also indicators of social and environmental to fully evaluate a business’s impact (Kenton 2022). 

The triple bottom line is as follows:

  • People – a measure of social responsibility a company feels towards its employees, customers, and communities.
  • Planet – an estimate of a business’s environmental and sustainable footprint.
  • Profit – the traditional bottom line of a corporation; solely a financial evaluation of value.

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the initiatives taken by a company to address social, economic, and environmental issues regulated under their business model. CSR is the enterprise of taking accountability for the brand’s impact on itself, its stakeholders, and the public in regard to its ethical, philanthropic, financial, and environmental involvement (Fernando 2022).

Social Enterprise

A social enterprise is a business or organization that focuses on social and/or environmental objectives as the center of its business practices. Although simultaneously striving to maximize profits, social enterprises typically reinvest these profits to fund their social/environmental missions (Barone 2022).

Carbon Footprint

A carbon footprint is the amount of carbon dioxide (CO2) emissions associated with the actions of an individual or entity (Selin). The footprint estimates the total emission volume of greenhouse gases, which are gases in Earth’s atmosphere that “trap and release heat, contributing to climate change" and the deteriorating health of our planet (Conservation International 2023).

Overview of Aesop

Background

Growth


Business Operations

Business Practices

Reputation and Financials

Commitment to Sustainability


Industry Opinion Analysis

Opinion #1

Opinion #2


Recommendation


Works Cited

https://www.investopedia.com/terms/t/triple-bottom-line.asp

https://www.investopedia.com/terms/c/corp-social-responsibility.asp

https://www.conservation.org/stories/what-is-a-carbon-footprint

https://www.nature.org/en-us/get-involved/how-to-help/carbon-footprint-calculator/

https://www.britannica.com/science/carbon-footprint


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