Manpower Inc.

is an employment services agency established in 1948 and

headquartered in Milwaukee, Wisconsin. The company provides human resource services
in the fields of: employee training, recruiting staff for permanent, contract, or temporary
employment, consulting, employee assessment and selection; along with outsourcing and
outplacement. Manpower positions itself as a bridge to permanent employment for those
who desire it. In addition to the services they provide, they also operate a number
subsidiaries under the brands of; Jefferson Wells, Manpower Professional, Elan Group,
Right Management Consultants and in 2007 the acquisition of Clarendon Parker in the
Middle East.
After years of consistent expansion and revenue growth, during the 2009 fiscal
year, Manpower has experienced an unprecedented drop in revenue and was not immune
to the recession. However with reduced revenues going into 2010, the company is
confident with their strategy of expanding globally and reducing personnel expenses in
order to remain viable. Given the difficult nature of forecasting needs for staffing and
consulting, the company remains optimistic of the future improvement in economic
conditions based on anticipated trends in economic indicators.
Subsequent to September 2008, Manpower has taken austerity measures and
reviewed their direct costs for selling and administrative expenses to reflect the decline of
staffing demands. In response to the downturn, they have reduced their staffing by 20%,
closed over 12% of their branches, switched to variable workforce pay and transitioned
the majority of Jefferson Wells employees to more project-based roles in order to cut
salary costs. A three year period of decreases in revenue in their markets was due to the
decreased demand for services and a 4.6% decline was attributed to currency exchange
fluctuations;
Although with the reduction in personnel and branches, Manpower strives to
preserve a balance of their network branches and investing in their strategy of expansion
in key markets and thus are confident with their preparation to rebound quickly in an
economic recovery. Recent financial highlights to illustrate this position include a 24%
increase in revenue for the Right Management subsidiary as the demand for outplacement
services grew during the recession. A profit from Selling and Administrative expenses
increased less than a percent in 2009 compared to 2008; even in response to lower
business volume due to rebalancing of costs. The reduction of debt with payments of
$227.4 million in 2009 compared to borrowing of $79 billion and $4.9 billion in 2008
and 2007 respectively. The use of excess cash to reduce liability will put Manpower in a
more feasible position for future investment. Pressure on downward pricing in the
current economic climate is also a factor in reduced gross profit margins.
Ethics and Social Responsibility
Manpower has a social and ethical responsibility program and provides a plethora
of information on their website which focuses on three key areas that include the
company, the community, and the environment. Their mission for ethics and social

responsibility is to provide employment opportunities for all, dignity of work, ethical and
effective business practices, sustainable and successful local communities.
Manpower strives to be socially responsible in business by following their Code
of Business Conduct and Ethics which include: conflicts of interests with any covered
person which include individuals and business that conduct business with Manpower;
confidentiality on information pertaining to the companies suppliers, customers, and
employees; fair dealings where the company will not engage in unfair or illegal trade
practices nor obtain unfair advantage of anyone through manipulation, concealment,
abuse of information or misrepresentation of facts. The company tries to ensure
compliance with their codes of conduct by requiring compliance reports from the
directors, executive officers, officers located in the United States and covered persons.
They also have a hotline to report anonymously any unethical conduct within the
company.
Within the community, Manpowers unique business in human resources provides
employment opportunities and complimentary training to the unemployed and recent
immigrants. As a global company, it is positioned and connected with various businesses
and individuals providing a bridge that is mutually beneficial to both parties. In addition
to providing opportunities for employment, their website mentions their stance against
human trafficking, slavery, and forced servitude. They have signed a pledge called the
Athens Ethical Principles, for zero-tolerance in conducting business with businesses and
individuals that contribute to human trafficking.
Manpower is committed to investing in building sustainable communities after
disasters. They have disaster recovery initiatives in place where no employment is
available due to loss of property, loss of primary wage earners, or when former places of
employment no longer exist. They mitigate this by assisting with short-term employment
or providing training and skill assessment for new career paths.
Along with community contributions, Manpower also has respect for the
environment. In 2007, they relocated headquarters in Milwaukee in a building that has
been LEED certified. As a service business with a smaller footprint of waste, they still
believe in reducing, recycling, and conservation to further reduce their impact on the
environment. Their French headquarters has also been certified High Environmental
Quality by French standards of a green building.
After reading through Manpowers ethics and social responsibility page, I do feel
that the company is doing its best for its concern towards others, the environment, and its
business. Their outlined practices and contributions to the community has garnered them
numerous awards such as being named in Newsweeks 2009 Greenest Companies in
America along with being recognized in Dow Jones Sustainability Index after evaluation
of their performance in areas such as corporate governance, environmental performance,
human rights policies and other social criteria. Although winning numerous awards,
Manpower still strives to continue working towards improving their social and ethical
responsibility.

Business in a Borderless World

Manpower consists of 4,000 offices located in 82 different countries according to
their website. Headquartered in the United States, with 68% of its total revenue from
Europe and its largest market in France, international business plays a significant role in
the company strategy. With any global business, there are issues regarding fluctuations in
currency exchanges, social and cultural differences, along with distribution and
international trade that effects this company.
Approximately 87% of Manpowers revenue is generated outside of the United
States. As a result, fluctuations in the currency exchange rate may have significant
impact on reported results and shareholders equity. Manpower keeps its cross-border
transfers of funds to a minimum except to the U.S. for payment of license fees and
interest expense on intercompany loans, working capital loans and dividends between
foreign subsidies, and payments between certain countries for services provided. To
reduce the currency risk related to these transactions, Manpower may borrow funds in the
relevant currency under a revolving credit agreement or hedge with a futures contract for
the transfer.
When operating in a global environment, there will differences in culture which
certain actions may be normal under one country operations but frowned upon in another.
In November 2007, Manpower received a Statement of Objections from the French
Competition Counsel alleging illegal information sharing. The Counsel levied a fine of
$55.9 billion U.S. dollars for damaged to the economy for the alleged misconduct and for
mitigating the effects of such actions. Litigation due to
As a service related company, international trade is at a minimum but Manpower
does acquire and invest in companies throughout the world including franchises. The
future plans for growth is highly dependent on the level of economic growth. Manpower
expects to return to growth when the underlying economies improve.
Technology, e-Business and the Web
Technology plays an important role in shaping Manpowers operations. Their
report mentions their Digital Strategy and their focus on social networking, mobile
platforms, and Web 2.0. With an advent of social networking, they have recently
launched a website, MyPath.com, dedicated to improving individual skills and the
advancement of careers of IT, engineering, and finance. After the launch, the site has
gradually seen an increase volume of visitors.
Marketing
- Word of mouth only for MyPath.com