Investment Memo Draft

 

To: Professor Clark Hansen, CEO, AMDP

From: Kristin Thompson, Research and Development, AMDP

Date: October 14, 2024

Subject: Recommendation to invest in ForDays

 

As a member of the Research and Development team at AMDP, I have been tasked with researching companies that contribute to the greater good. In researching these companies, I search specifically for profitable companies that do good for the community or environment. If a company is up to my, and AMDP’s, standards, I recommend that we invest in it. A company I have been familiarized with recently is ForDays. ForDays looks to combat clothing waste and overconsumption, and the company is a large participant in the circular fashion industry, where clothes are repurposed to be re-worn.

 

In this proposal, I will define the standards that we adhere to at AMDP. I will then detail how ForDays operates according to these standards. We will dive into the profitability of this company, and look at some reviews and expert opinions on ForDays and their operations.

 

AMDP Standards

 

Triple Bottom Line – The Triple Bottom Line represents a company motivation shift. The shift is from strict profit to a more rounded focus including the environment and people (and of course profit). There are three P’s that make up the Triple Bottom Line:

 

-              Profit

-              People

-              The Planet

 

With these guidelines, a company can focus on its impact on the community around it and look to incorporate sustainability practices into normal operations (Miller).

 

Corporate Social Responsibility – Corporate Social Responsibility is a company’s voluntary implementation of environmentally friendly and socially uplifting practices in their business operations. While both are not enforced by law, Corporate Social Responsibility differs from philanthropy because it is ingrained in the company’s values and operations (“What Is Corporate Social Responsability (CSR)?”).

 

Social Enterprise – A social enterprise is a company that focuses on targeting a specific social or environmental issue within a market. Social enterprises:

 

-              are not funded by grants or donations

-              raise money through goods or services

-              commonly combine non-profit and for-profit elements in their business practices

-              focus on one or more societal need

 

These enterprises are made to serve people and the world (The Annie E. Casey Foundation).

 

Carbon Footprint – Carbon Footprint is the amount of greenhouse gases generated by the actions of a person or group/company. The rise of greenhouse gases contributes to global warming, so it is important to focus on lowering carbon footprint. You can check yours here, and look for great ways to lower your impact on the environment (“What Is Your Carbon Footprint?”).


 

Works Cited

 

Miller, Kelsey. “The Triple Bottom Line: What It Is & Why It’s Important.” Business Insights Blog, 8 Dec. 2020, online.hbs.edu/blog/post/what-is-the-triple-bottom-line.

 

The Annie E. Casey Foundation. “What Is a Social Enterprise?” The Annie E. Casey Foundation, 10 Dec. 2020, www.aecf.org/blog/what-is-a-social-enterprise.

 

“What Is Corporate Social Responsability (CSR)?” HEC Paris, www.hec.edu/en/faculty-research/centers/sustainability-organizations-institute/think/so-institute-executive-factsheets/what-corporate-social-responsability-csr. Accessed 15 Oct. 2024.

 

“What Is Your Carbon Footprint?” The Nature Conservancy, www.nature.org/en-us/get-involved/how-to-help/carbon-footprint-calculator/. Accessed 15 Oct. 2024.

 

 

 

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