MT460 – Lennar Corporation’s Joint Venture Investments Case Study Analysis

Company name: Lennar Corporation’s Joint Venture Investments

Topic of the week: Corporate Social Responsibility and Business Ethics

Synopsis of the Situation

Lennar Corporation is a company in the United States that offers homebuilding services as well as financial and other auxiliary services to customers. The company formed joint ventures with other homebuilders and financial partners in 2008, which enabled it to make new acquisitions and increase sales within short period of time. In the recent past, Lennar Corporation has not been abiding by the corporate social responsibility requirements in quite a number of its operations. For instance, the company has just attempted to conceal the Forest Lawn Mortuary, uses false promises to lure partners into forming joint ventures, acquires loans secretly, and produces false financial statements. Additionally, Lennar Corporation made the California Public Retirement Fund to lose more than 1 billion United States dollars when it used fake materials to construct homes (Pearce and Robinson, 2013).

Alternative solutions

            Lennar Corporation can improve on corporate social responsibility and business ethics practices by putting a strong financial positioning in place, assess its home building services to determine whether they operate in accordance with corporate and social responsibility requirements, and analyze its financial segment to rectify issues that lead to wrong financial statements (Hamilton, Church and Dornbach-Bender, 2009).

Selected solution to the problem

            Lennar Corporation will be able to reduce the number of claims related to corporate social responsibility and business ethics by analyzing its homebuilding and financial segments to rectify sources of error (Hamilton, Church and Dornbach-Bender, 2009).

Implementation

            Lennar Corporation needs to employ an experienced auditor to assist it in making necessary corrections in its financial statements. The appointed person will also provide guidance to the company on how it should apply ethics in its business practices (Hamilton, Church and Dornbach-Bender, 2009).

Recommendation and conclusion

Lennar Corporation should stop making expansions during economic recession, but strive to adjust its financial activities and cut on costs so as to regain a strong cash base. This will prevent the company from shutting down even during tough economic times. Additionally, Lennar Corporation should abide by the requirements of corporate social responsibility in all its business activities (Hamilton, Church and Dornbach-Bender, 2009).

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