General Electric Company (GE) is one of the largest firms in United States of America, currently rated as the fourteenth most profitable company. By the year 2011, the company operated in more than 100 countries and employed more than 290,000 persons worldwide.
With its headquarters based in Fairfield, the company majors in four sectors, which include energy, technology, industrial, and capital finance (Rothschild, 2007). Currently, the company’s products and services range from power generation, aircraft engines, medical machines, household appliances, and consumer financing.
From the year 2001, Jeffrey Immelt has been General Electrical Chairman and CEO. The company’s board directors comprise of several members, among which are Douglas Warner III, Rochelle Lazarus, Ralph Larsen, Samuel Nunn, W. Beattie, Ann Fudge and Andrea Jung. The CEO with the help of the company’s executive leaders and the board of directors has transformed the company to be one of the world’s most diverse companies.
History
In the year 1876, Thomas Alva Edison opened a laboratory in New Jersey with the aim of producing dynamo and other electric devices (Eckes, 2001). With the development of luminescent electric lamb, the laboratory became the greatest invention center during the 19th century.
In the year 1890, Edison developed Edison electrical company bringing together several business owned by him. During the same era, Thomson – Houston electric company was formed and emerged as one of the best electrical companies of that time. With the expansion of these companies, the companies realized that they could produce better electrical devices if they merged their patents and technologies (Boyle, 1998). As a result, the two companies combined in the year 1892 under the name General Electrical Company.
Effects of the company
Overtime, GE has earned unmatched reputation in the public domain. The company is famous for its rigorous techniques of analyzing and monitoring its progress (Gitlin, 2010). With the changes in the business trends in the modern markets, the company remains dedicated to responsible public spirit and robust business governance. To achieve this, the company has upheld its values of integrity, ethics, and transparency.
The company’s positive change can also be exhibited through the company’s philanthropy programs. Over the last two years, the company has released $38 million aimed at improving its employee’s welfare (Gitlin, 2010). Similarly, the company has heavily invested in clean energy and healthcare technologies.
This has been made possible by the company’s partnership with the best world class researchers aimed at bringing positive effects in the society. Likewise, the company is reputable for its quick responds to multifaceted global issues such as global warming and healthcare. Through all these programs, the company aims at improving its citizenship efforts to benefit global communities and the company at large.
Despite its success, currently the company has attracted several controversies. In the year 2011, the Fukushima I nuclear power plants catastrophe painted a negative image at the company, since the company designed the reactors. In March 2011, the media accused it for evading taxes, though it had earned $14.2 billion profits. In the year 2000, the company was listed to be among the largest contributors of air pollution (Eckes, 2001). Researchers have implicated the company for the ever-increasing superfund toxic waste sites.
Earnings
On April 2012, the company’s first quarter earnings surprisingly exceeded the Wall Street expectations (Timmons, 2012). It was noted that the company’s industrial revenue increased by 14 per cent. Despite the exclusion of NBC revenues, the company’s revenue increased by 4 per cent surpassing the ordinary analyst guesstimate of $34.8 billion.
References
Boyle, T. F. (1998). At any cost: Jack Welch, General Electric, and the pursuit of profit. New York: Alfred A. Knopf.
Eckes, G. (2001). The six sigma revolution how General Electric and others turned process into profits. New York: John Wiley.
Gitlin, M. (2010). GE Citizenship » Monitoring Our Actions. GE Citizenship » GE Citizenship | Corporate Social Responsibility | CSR | GE. Web.
Rothschild, W. E. (2007). The secret to GE’s success. New York: McGraw-Hill.
TIMMONS, H. (2012). General Electric Company (GE) News – The New York Times.Times Topics – The New York Times.