PRINCIPLES OF MANAGEMENT

Case Study Report

On

A Socially responsible Issue for Bausch & Lomb?

Presented by:
MUHAMMAD OWAIS KHAN
MUHAMMAD SAAD
MUHAMMAD TALHA
MUNIZA MARVI

Course instructor:
MISS UMME-SUMAYYA

LETTER OF ACKNOWLEDGMENT

It has been a pleasure for us to be instructed by such a transformational leader Miss

UMM-E-SUMMAYA. We would like to thank her for giving us the opportunity to
study case of BAUSCH & LOMB, and take a research work on the management
practices followed there.
We are extremely grateful to Miss UMM-E-SUMMAYA, and appreciate her
efforts for providing us full support, encouragement and valuable guidance.

Sincere regards,
MUHAMMAD OWAIS KHAN
MUHAMMAD SAAD
MUHAMMAD TALHA
MUNIZA MARVI

INTRODUCTION:

Bausch & Lomb, an American company based in Rochester, New York, is one of the world's
largest suppliers of eye health products, including contact lenses, lens care products, medicines
and implants for eye diseases. The company was founded in 1853 by two John Jacob Bausch and
Henry Lomb. Its Ray-Ban brand of sunglasses was sold in 1999 to the Italian Luxottica Group.
Bausch & Lomb was a public company listed on the NYSE until it was acquired by the private
equity firm Warburg Pincus PLC in 2007. In May 2013, Valeant Pharmaceuticals agreed to buy
Bausch & Lomb from Warburg Pincus LLC for $8.57 billion in cash.

Today, the company employees about 13,000 people in 36 countries.

EXECUTIVE SUMMARY

SUMMARY
Bausch & Lomb targeted a sunglass-lens plant for closure.
Company representatives have indicated that they decided to
close the plant because it was too expensive. Is Bausch & Lomb
justified in its actions? Company officials certainly have a right to
manage the operations in the most profitable way they can.
Corporate profits fell in a two-year period, the CEO was ousted,
and moving to areas where employee pay was lower was viewed
as an effective way to reduce costs. The "bottom line" warranted
their actions. In today's global economy, hometown loyalties
rarely override economic considerations.

Employees in the Maryland plant did make more money than their
counterparts in Texas and Hong Kong, but they had given the
company something that other plants have not--high-recognition
quality products. Employees were awarded a prestigious
international designation of quality, as well as having been a
recipient of a productivity award from the U.S. government.

QUESTION & ANSWERS

Question # 1 : What social responsibility, if any, do you believe

Bausch & Lomb has to the citizens of this western Maryland area?
Answer: Bausch & Lomb does have a social responsibility
towards the citizen of western Maryland area & their employees.
They should pay redundancy payment to their employees and
should notify them before the closure of the plant. This is
particular important because this decision not only affect the
employees but their families financially and socially beside this
will affect other businesses of the town. Such as schools,
restaurants & other community. This means they might have a
higher number of labour force of the town and they should
consider their decision of closure very carefully. As this will disturb
the economy very dangerously. The Bausch & Lomb should relocate their employees in some other organizations. In order to
minimize the damages of decision.

Question # 2 : Do you believe that companies should have a

legal right to move to another area simply to cut costs, knowing it
will create an economic hardship? Would you respond differently
knowing that a company received tax incentives to relocate to the
area in the first place?
Answer 2 : Yes, the company have a legal right to migrate in
other area to cut the cost as the company responsible to
maximize share holders profit. But not on the stake of the
company but here public awareness is also important that they
should appreciate the quality of product not only the cost. Tax
incentives for a company is not a big advantage as compare to

the benefits when the company does not go for relocation. It is

the responsibility of Government that to give tax incentives to
company when it opens its branch in new place otherwise this
benefit will not be fruitful in the long run.

PROBLEMS & THEIR SOLUTIONS

1) Employees were badly affected when Bausch & Lomb Co.

was migrated & 600 jobs were lost.
Solution: Every company has a social responsibility to give job
security to its employees. Suppose if company lays off 100
employees, if on average basis each has 5 family members then
100 x 5 = 500 it means 500 people will survive badly.

2) Restaurants, schools & other town-supported organizations

were also affected and many of the people have left the area
to find jobs elsewhere.
Solution: Everything was related with Bausch & Lomb, if the
company goes down then everything goes down because they
have direct relation. Company should