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General Electric Company’s Impacting Policies

Primary Recommendation

General Electric Company Should Enhance Its Labor-Management Programs as They Are Much Poorer than in Other Companies

This is the most significant recommendation as the company’s labor-management methods are not satisfactory, which leads to poor employee engagement and causes a negative atmosphere within the company.

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  • Several labor unions filed a lawsuit against GE due to the company’s annulment of Medicare programs and medicine benefits impacting nearly 130,000 retired people and their spouses (“General Electric Company: ESG controversies,” 2017).
  • Nearly 2,500 employees from European branches initiated a protest against its layoff plans (“General Electric Company: ESG controversies,” 2017).
  • A transgender former worker filed a lawsuit concerning discrimination at work (“General Electric Company: ESG controversies,” 2017).

This recommendation is the most important because the company’s success depends greatly on employee satisfaction. Compared with Siemens, GE’s labor-management is rather poor (“Siemens Aktiengesellschaft: ESG rating,” 2017). Company specialization statements eliminate employee possibilities and benefits (MSCI, 2016c). Another problem causing such a situation is connected with crucial organizational adjustments (“General Electric Company: intangible value assessment,” 2016).

General Electric Company Needs to Replace the Current Board of Directors to Eliminate the Probability of Bribery and Corruption

The problem of corruption presents a huge risk to the company’s reputation.

  • GE has a moderately high risk of being involved in the corrupt business (“General Electric Company: ESG rating,” 2017). The company receives a considerable profit from industries exposed to unethical enterprise practices.
  • China, one of the company’s biggest markets, is reported to have very high corruption risks (MSCI, 2016b).
  • The lack of gender board diversity increases corruption risks (MSCI, 2016a). The major business place greatly impacts corporate management methods.

Eradicating the possibility of bribery and corruption in the company is another crucial point in its activity. Even if only one board member is prone to corruption, it will lead to the whole organization’s deterioration. Therefore, the board of directors’ replacement is a positive step in ensuring transparency within the company.

General Electric Company Should Pay Efforts to Eliminate the Environmental Controversies

Settling the environmental controversies is no less crucial than dealing with labor-management issues, as it also undermines the company’s status and endangers its reputation.

  • GE’s core environmental issue is concerned with toxic emissions and waste (“General Electric Company: ESG controversies,” 2017).
  • GE’s environment indicator should aim at equaling a rate of ten as in SFA Engineering Corp (2016) and Bloomberry Resorts Corp (2016).
  • To eliminate the adverse environmental impact, GE could take The Southern Company’s (2016) example and work upon improving compliance with waste emission limits.

Environmental issues are among the core problems of modern businesses. GE should eradicate any cases of environmental controversies to gain the most advantageous rating.

Next Action Steps for Primary Recommendation

Further steps for improving the labor-management in GE involve enhancing Medicare programs, designing company policy against redundancy, and creating and implementing an anti-discrimination program. These steps will ensure better employee satisfaction and will lead to the company’s enhancement. The enumerated tasks should be the responsibility of a CEO who can appoint managers from various departments to assist him.

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Bloomberry Resorts Corp: ESG controversies. (2016). Web.

General Electric Company: ESG controversies. (2017). Web.

General Electric Company: ESG rating. (2017). Web.

General Electric Company: Intangible value assessment. (2016). Web.

MSCI. (2016a). Electronics equipment, instruments and components. Web.

MSCI. (2016b). Industry report – Healthcare equipment and supplies. Web.

MSCI. (2016c). Industry report – Industrial conglomerates. Web.

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SFA Engineering Corp: ESG controversies. (2016). Web.

Siemens Aktiengesellschaft: ESG rating. (2017). Web.

The Southern Company: ESG controversies. (2016). Web.

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