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Case Study: DC Surf Co. Download Video: https://smoovivideov1.s3.amazonaws.com/11fce144-8af0-e234_7452.mp4 Background: De and Claire studied a business course together 5 years ago. De majored in Marketing and Claire majored in International Business. They met through the University Surfing Club. De works full-time as a marketing assistant for a major retailer. On the weekends he shapes surfboards in his shed. It started out as a hobby but he has now started selling his boards in a few local surf shops. Claire works part-time for a graphic design firm. She also designs her own t-shirts and sells them online. She currently ships her t-shirts to 7 different countries throughout South East Asia as well as the US. De and Claire surf together a couple of times a month and often talk about starting a business together. Finally, they decided to take the plunge and have set up ‘DC Surf Co’ with the vision of supplying high quality surfing equipment and apparel. They have decided to start small but have plans to grow quickly. For now, they are operating from a small home office in De’s lounge room. Additional Information: De and Claire decided to set up their business as a partnership. They employed De’s neighbour Johnny on a part-time basis to assist with setting up the website and other administrative tasks so that De and Claire can focus on growing the business. De already had a relationship with a few of the local surf shops and they have agreed to stock the full range of DC Surf Co boards and apparel. They have also started selling counting in Organisations and Society their goods online through their website. They have made a few bulk purchases of materials (fibreglass, cotton, fabric) and are storing these in De’s lounge room. They realise that they are quickly running out of space and expect to either rent or purchase commercial premises within the next 6 months.

Activity 1: De and Claire understand that in order to discharge corporate responsibility it is important to understand who their stakeholders are and what their needs are. (a) List 5 potential stakeholders of DC Surf Co. (b) For each stakeholder identified in (a), identify their potential needs and discuss how these stakeholder needs might impact on the actions and reporting of DC Surf Co.

5 potentinal stakeholders: - De and Claire (Owners) - Johnny (Employees) - Suppliers - Customers - Warehouse (Creditors)

Answer:

Stakeholders

Specific Examples

Potential Needs

Owners

De and Claire

e.g. profitability, financial sustainability

Employees

Johnny

Health and safety compliance, salary payment

Retailers

Local surf shops

Continue supply products Ecologically sound products

Consumers

Surfers

Ecologically sound products Safe work practices

Suppliers

Fibreglass, cotton, fabric suppliers

Sustainability of the business Credit payment

Landlord

Looking to rent premises in next 6 months

Continue to rent the premises

Government

They will be required to pay taxes and comply with other regulation

Tax liabilities (e.g. income tax, gst)

Banks

They have plans to grow quickly and may require a loan to do so

Grant the loan

Community

They operate within a local and global community

Employment Noise level

Environmentalists

All businesses have an impact on the environment

Pollution Carbon footprint

Activity 2: De and Claire are trying to decide which accounts they should provide to their external stakeholders. Discuss the various types of accounts and include examples of what information DC Surf Co may be able to provide within each type?

Answer: Accounts Financial Environmental Social

Examples Profit, cash position, assests (e.g. inventory) Carbon footprint, recycling policy, use of water Safe work, practices, supplier screening processes...