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Cummins Inc is a leading company in designing, manufacturing, sales, and servicing of diesel engines and similar technology across the globe. The company serves its customers through its 500 distributors and company owned facilities in the world. The company conducts these activities through the 5,200 dealer locations in more than 190 countries. The company headquarters are in Columbus, Indiana, and it uses the CMI symbol to trade in the New York Stock Exchange. The company’s establishment dates back to 1919. In the year 2011, the company’s revenues reached $18 billion with a net income of about $1.75 billion. In addition, the company has a total of 40,000 employees across the world (Cummins Inc, 2011).

The company operates in four distinct and complementary business units. These are Cummins Engine Business, which manufactures and markets Cummins diesel and natural gas-power engines. The markets for this line of business include buses, light-duty automotives, recreational vehicles, and heavy and medium trucks. It also operates in agricultural, marine mining and construction industries. The other line is the Cummins Power Generation Business that focuses on the provision of power generation systems, components, and servicing. The component of business operates in four segments including Cummins Turbo Technologies, Cummins Filtration, Cummins Fuel Systems, and Cummins Emission Solutions. The last business line is the Cummins Distribution Business that focuses on providing comprehensive global distribution strategies for the company (Cummins Inc, 2011).

Public Expectations

Natives at Columbus view the company as one that provides the most reliable architectural solutions. The positive public reputation dates back to 1991 when the shareholders chose to keep the native workers on their payroll even if it meant making loses. The investors focused on the long-term profitability and enabled the Cummins enhance and maintain healthy relationships with the public (Webber, 2012). The company has maintained a longstanding reputation in corporate social responsibility, thereby, ensuring its long-term success. In addition, the company also aims at satisfying the shareholders because this marks the foundation for Cummins’ long-term profitability and development.

Long-Term Profits

Cummins remains focused on the path to long-term growth and sustainability (Cummins Inc., 2011). In 2011, the company’s sales of $18 billion had increased by 36 percent compared to 2010. The earnings before interest and taxes (EBIT) rose by 54 percent from the previous year. This is $2.56 billion constituting Cummins’ 14.2 percent of sales. The net income attributable to Cummins excluded special items was reported at $1.75 billion compared to $1 billion in 2010. In addition, the revenues from operations totaled $2.1 billion and almost doubled from 2010 levels (Cummins Inc., 2011). This is a clear indication of positive and high long-term profits for the company.

Ethical Obligation

The company remains committed to corporate social responsibility, and it operates in a manner that exceeds their standards on ethics, legal policy, commercial interests, and public expectations. For the company, the stakeholders are not only the shareholders, but also the communities, Cummins employees, and customers. Thus, ethical obligations at the company go beyond meeting the objectives set under marketing gimmicks and public relation benefits (Webber, 2012).

In addition, the ethical obligations at the company imply that it meets the needs and takes care of the communities, shareholders, and the employees once it gets tax breaks. These principles at Cummins of paying workers at better wages emanate from those Henry Ford upheld at Ford Motors. Thus, satisfying the employees and the shareholders ensures Cummins’ long-term sustainability. This is based on the premise that charity begins at home (Webber, 2012). In addition, the company also agreed to the 1992 Diesel Workers’ wage concessions. The company initiated a cut of the pay of above 7.5 to 10 percent for its vice presidents. This is a clear indication of the efforts initiated to ensure employee satisfaction.

Cummins' ethical obligations emphasize the value of sustaining good relationships with suppliers. The company believes that ethics are not situational nor acts of convenience, but doing the right thing every time. This enables the company to maintain the long established ethical standards of conducting business. Moreover, it implies that the supplies ought to abide by supplier code of conduct and the code of business conduct (Cummins Supplier Portal: Corporate Responsibility, 2010).

Code: Sample20

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