Positive Accounting Theory Essay Example

Positive Accounting Theory Essay We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [emailprotected] org. American Accounting Association is collaborating with JSTOR to digitize, preserve and extend access to The Accounting Review. http://www. jstor. org THE ACCOUNTING REVIEW Vol. 65, No. 1 January 1990 pp. 131-156 Positive A Accounting Year Theory: Ten Perspective Ross L. Watts and Jerold L. Zimmerman University of Rochester ABSTRACT: This paper reviews and critiques the positive accounting literature following publication of Watts and Zimmerman (1978, 1979). The 1978 paper helped generate the positive accounting literature which offers an explanation of accounting practice, suggests the importance of contracting costs, and has led to the discovery of some previously unknown empirical regularities. The 1979 paper produced a methodological debate that has not been very productive. This paper attempts to remove some common misconceptions about methodology that surfaced in the debate. It also suggests ways to improve positive research in accounting choice. The most important of these improvements is tighter links between the theory and the empirical tests. A second suggested improvement is the development of models that recognize the endogeneity among the variables in the regressions. A third improvement is reduction in measurement errors in both the dependent and independent variables in the regressions. T is more than a decade since our two papers, Towards a Positive Theory of the Determination of Accounting Standards and The Demand for and Supply of Accounting Theories: The Market for Excuses were published in The Accounting Review. We will write a custom essay sample on Positive Accounting Theory specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Positive Accounting Theory specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Positive Accounting Theory specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The intervening time allows us to look back on these papers and the ensuing literature with some perspective. The two papers were controversial ten years ago and remain so today. The papers (primarily Watts and Zimmerman 1978) contributed to a literature that has uncovered empirical regularities in accounting practice (Christie forthcom ing; Holthausen and Leftwich 1983; Leftwich forthcoming; Watts and Zimmer man 1986). The empirical regularities have been replicated in different settings I Financial support was provided by the John M. Olin Foundation and the Bradley Policy Research Center at the University of Rochester. The comments of Ray Ball, James Brickley, Andrew Christie, Linda DeAngelo, Robert Hagerman, S. P. Kothari, Richard Leftwich, Tom Lys, Clifford Smith, Jerold Warner, and Greg Whittred are gratefully acknowledged. We thank William Kinney for encouraging us to pursue this project. An earlier version of this paper was presented at the Accounting Association of Australia and New Zealand, July 4, 1989, Melbourne, Australia. Manuscript received May 1989. Revision received September 1989. Accepted September 1989. 131 132 The Accounting Review, January 1990 (Christie forthcoming) and it is clear there is a relation between firms accounting choice and other firm variables, such as leverage and size and the signs of the relations are mostly consistent across studies. Positive accounting research guided the search for the empirical regularities and provided explanations for them. To date, there are no systematic alternative sets of explanations for those regularities articulated and tested in the literature. Further, the literature has moved beyond the first simple exposition of the theory in the 1978 paper. The explanation for accounting choice is now richer and more sophisticated. Our first objective in this paper is to convey our perspective on the evolution and current state of positive accounting theory and to summarize the evidence on systematic empirical regularities in accounting (Section I). The second objective is to evaluate the research methods and the methodology used to document the empirical regularities. We discuss criticisms of the original papers and of the subsequent positive accounting literature in Section II. While the positive accounting literature has explained some accounting practice, much remains unexplained. Our third objective is to provide our views about future directions for positive accounting literature (Section III). I. Evolution and State of Positive Evolution Accounting Theory Modern positive accounting research began flourishing in the 1960s when Ball and Brown (1968), Beaver (1968), and others introduced empirical finance methods to financial accounting. The subsequent literature adopted the assumption that accounting numbers supply information for security market investment decisions and used this information perspective to investigate the relation between accounting numbers and stock prices. The information perspective has taught us much about the markets use of accounting numbers. But, except for the choice of inventory methods, the information perspective has not provided hypotheses to predict and explain accounting choices. The information perspective has not provided hypotheses to explain why entire industries switch from accelerated to straight-line depreciation without changing their tax depreciation methods. An important reason that the information perspective failed to generate hypotheses explaining and predicting accounting choice is that in the finance theory underlying the empirical studies, accounting choice per se could not affect firm value. Information is costless and there are no transaction costs in the Modigliani and Miller (1958) and capital asset pricing model frameworks. Hence, The information perspective views accounting data (usually earnings, dividends, and cash flows) as providing information on inputs to valuation models (e. g. , discounted cash flows) and tests for associations between accounting disclosures and stock prices or returns. In the contracting approach adopted in the literature and discussed in this paper, accounting methods are primarily determined by the use of accounting numbers in contracts between parties to the firm. Under this approach accounting disclosures directly affect parties (including stockholders) contractual claims and, hence, the values of those claims (including stock prices). To the extent accounting disclosures are correlated with attributes investors use in valuing securities, these disclosures contain information and affect stock prices. Thus, under both an information perspective and a contracting perspective, accounting disclosures have the potential to alter securities prices (Holthausen forthcoming). Watts and Zimmerman-Positive Accounting Theory 33 if accounting methods do not affect taxes they do not affect firm value. In that situation there is no basis for predicting and explaining accounting choice. Accounting is irrelevant. To predict and explain accounting choice accounting researchers had to introduce information and/or transactions costs. The initial empirical studies in conaccounting choice used positive agency costs of debt and compensation tracts and positive info rmation and lobbying costs in the political process to generate value effects for and, hence, hypotheses about accounting choice. Finance researchers had introduced costs of debt that increase with the debt/equity ratio (Jensen and Meckling 1976) to explain (in combination with differential taxes) how optimal capital structures could vary across industries. The debt costs first introduced were bankruptcy and agency costs. The agency costs were of particular interest to accountants because accounting appeared to play a role in minimizing them. Debt contracts apparently aimed at reducing dysfunctional behavior use accounting numbers (Smith and Warner 1979; Leftwich 1983). Accounting researchers recognized the implications for accounting choice and began using the accounting numbers in debt contracts to generate hypotheses about accounting choice (Watts 1977). 2 contracts Accounting numbers also are used in managers compensation and it is hypothesized that such use again minimizes agency costs (Smith and Watts 1982). This use of accounting numbers in bonus plans suggested the possibility that accounting choice could affect wealth and so accounting researchers began employing that use to explain accounting choice. Watts and Zimmerman (1978) is an early example of this approach. Borrowing from the industrial organization literature in economics (Stigler 1971; Peltzman 1976) which assumes positive information costs and lobbying costs, accounting researchers postulated that the political process generated costs for firms. These political costs are a function of reported profits. Thus, incentives are created to manage reported accounting numbers. Information and lobbying costs are part of the costs of contracting in the political process. The extent and form of the wealth transfers created by the political process (such as the tax code) are affected by these contracting costs. While the early literature concentrated on using debt and compensation contracts and the political process to explain and predict accounting choice, the theory underlying the empirical work was more general and had its foundation in an economic literature on the theory of the firm. Since the 1970s, economists have strived to develop a theory of the firm by attempting to explain the organizational structure of the firm (e. g. , choice of corporate form, structure of The centralization-decentralization). ompensation, contracts, management underlying notion (Alchian 1950) is that competition among different forms of institutions leads to the survival of those forms most cost-effective in supplying goods and services. Productive activity can occur via the marketplace or by the inclusion of several activities within a firm (Coase 1937; Alchian and Demsetz 1972). In the marketplace, direction of productive activity and cooperation is by 2 Prior to that time other studies investigate accoun ting choice without explicit recognition of contracting effects (e. g. , Gordon 1964; Gordon et al. 1966; Sorter et al. 1966; Gagnon 1967). 34 The AccountingReview,January 1990 market prices; within the firm alternative mechanisms such as standard costs are used (Ball 1989). Which productive activities are carried out by markets and which by firms depends on which arrangement is cost effective. 3 In competition among firms, those that organize themselves to minimize contracting costs are more likely to survive (Fama and Jensen 1983a, 1983b). It was a short step to suggest that accounting methods affect the firms organizational costs and so the accounting methods that survive are the result of a similar economic equilibrium (Watts 1974, 1977). Accounting researchers have recently returned to using that notion of an efficient set of accounting methods to explain accounting choice (Zimmer 1986). As noted above, the agency costs associated with debt and management contracts and the agen cy, information, and other contracting compensation costs associated with the political process provided the hypotheses tested in the early empirical accounting choice studies (bonus plan, debt/equity, and political cost hypotheses). However, the more general approach suggested agency and other costs associated with other contracts (e. g. , sales contracts) could lso affect accounting choice. 5 This potential for many contracts to play a role in explaining organizational choice (including accounting choice) and the fact that agency costs used to explain the contracts often arise in contractual scenarios that differ from those of the standard agency problem led researchers to start to use the term contracting costs instead of agency costs (Klein 1983; Smith 1980). The concept of contracting costs and the notion of accounting methods as part of efficient organizational technology play key roles in contemporaneous positive accounting theory. Contemporaneous Positive Accounting Theory Contracting costs arise in (1) market transactions (e. g. , selling new debt or equity requires legal fees and underwriting costs), (2) transactions internal to the firm (e. g. , a cost-based transfer price scheme is costly to maintain and can produce dysfunctional decisions), and (3) transactions in the political process (e. g. , securing government contracts or avoiding government regulation requires lobbying costs). Contracting costs consist of transaction costs (e. g. , brokerage I Coase (1937) suggests that economies of scale in long-term contracting are what cause activity to be organized in firms. Alchian and Demsetz (1972) point out that those economies are not sufficient since market arrangements could achieve the same economies (e. g. , contracting consultants). What is necessary is some unique advantage of firm organization over market arrangements. Alchian and Demsetz suggest it is the advantage firms have in metering inputs to team production that generates firms. Monitors meter individual inputs and the monitors incentive problem is solved by giving them the residual claim to the firm (hence, the firm structure). Klein et al. (1978) suggest firms emerge to solve post contractual opportunism associated with specialized assets. Meckling and Jensen (1986) suggest that firms have an advantage in generating information by aggregating data and using that information. Difficulties in capturing the informations benefits in the market result in the firm being the optimal form of organization. 4Watts adopted such a view in Accounting Objectives which he presented to the Annual Congress of the N. S. W. branch of the Institute of Chartered Accountants in Australia in 1974. The paper was later substantially revised given Jensen and Meckling (1 976) andjoint work with Zimmerman and published in Watts (1977). The influence of sales contracts on accounting choice is considered by Watts and Zimmerman (1986, 207) and by Zimmer (1986) and joint venture contracts by Zimmer (1986). Further, Ball (1989) suggests intrafirm transactions affect internal accounting choice (e. g. , the basis for transfer prices). Watts and Zimmerman-Positive Accounting Theory 135 fees), agency costs (e. g. , monitoring costs, bonding costs, and the residual loss from dysfunctional decisions), information costs (e. g. , the costs of becoming informed), renegotiation costs (e. g. the costs of rewriting existing contracts because the extant contract is made obsolete by some unforeseen event), and bankruptcy costs (e. g. , the legal costs of bankruptcy and the costs of dysfunctional decisions). Throughout this paper, we use the term contracting costs to incorporate this wide variety of costs. The term contracting parties is meant to include all parties to the firm including internal employees and managers and external parties, such as suppliers, claim holders, and customers. 6 The existence of contracting costs is crucial to models of both the organization of the firm and accounting choice. Meckling and Jensen (1986) suggest that within the firm the lack of a market price is replaced by systems for allocating decisions among managers, and measuring, rewarding, and punishing managerial performance. Accounting plays a role in these systems and so appears to be part of the firms efficient contracting technology. Trying to predict and explain the organization of the firm with zero contracting costs is pointless (Coase 1937; Ball 1989). How the firm is organized, its financial policy, and its accounting methods, are as much a part of the technology used to produce the firms product as are its production methods. Hence, modelling accounting choice while assuming zero contracting costs is not productive. The extent to which accounting choice affects the contracting parties wealth depends on the relative magnitudes of the contracting costs. For example, assume accounting-based debt agreements have higher renegotiation costs than bonus plans. Then, mandatory changes in accounting proceaccounting-based dures by the FASB impose greater relative costs on firms with debt agreements than on firms with bonus plans, ceteris paribus. And, firms with debt agreements will conduct more lobbying and undertake more (costly) accounting, financing, and production changes to undo the effects of the mandatory change than firms with only bonus plans. Thus, developing a positive theory of accounting choice requires an understanding of the relative magnitudes of the various types of contracting costs. Contracts that use accounting numbers are not effective in aligning managers and contracting parties interests if managers have complete discretion over the reported accounting numbers. If managers know (or can determine) which accounting methods best motivate subordinates, then the contracting parties want managers to have some discretion over the accounting numbers. Hence, we expect some restrictions on managers discretion over accounting numbers, but some discretion will remain. When managers exercise this discretion it can be because (1) the exercised discretion increases the wealth of all contracting parties, or (2) the exercised discretion makes the manager better off at the expense of some other contracting party or parties. If managers elect to exercise discretion to their advantage ex post, and the discretion has wealth redistributive effects among the contracting parties, then we say the managers acted opportunistically. 6 See Watts (1974) for an earlier and Ball (1989) for a later discussion than capital suppliers and managers. of contracting parties other 136 The Accounting Review, January 1990 Ex ante, the set of accounting choices restricted by the contracting parties is determined by efficiency reasons (to maximize firm value). One cost of allowing managers more rather than less discretion is the ncreased likelihood of some ex post managerial opportunism (i. e. , wealth transfers to managers) via accounting procedures. However, ex ante the contracting parties expect some redistributive effects and reduce the price they pay for their claims. Ex post, wealth is redistributed by managerial opportunism, but ex ante some redistribution was expected and the parties price protected themselves. Price pr otection does not eliminate the incentive to act opportunistically nor does price protection eliminate the dead weight costs of managers taking opportunistic actions. The extent to which contracts can be written ex ante to preclude such ex post behavior that causes dead weight costs increases the chance the firm will survive in a competitive environment (Klein 1983, fn. 2). The set of accounting procedures within which managers have discretion is called the accepted set. It is voluntarily determined by the contracting parties. Managerial discretion over accounting method choice (i. e. , the accepted set ) is predicted to vary across firms with the variation in the costs and benefits of restrictions. These restrictions produce the best or accepted accounting principles even without mandated accounting standards by government. The restrictions are enforced by external auditors. Reacting to the incentive of managers to the accepted set includes discretion opportunistically, exercise accounting conservative (e. g. , lower of cost or market) and objective (e. g. , verifiable) accounting procedures (Watts and Zimmerman 1986, 205-206). Figure 1 represents the concept of the accepted set of accounting methods as a Venn diagram. A l denotes the accepted set of methods for firm 1. Ex ante, the accepted set is determined jointly by the contracting parties to maximize the value of the firm (e. g. , set A 1 vs. A 2 in Fig. 1). Managers have discretion to choose any method within the accepted set (e. g. , Xl). Also, managers in firm 2 are constrained ex ante to the set A2 and choose X2 ex post. For example, within the accepted set of procedures used for bonus plans managers might select the method that maximizes their utility, even if it comes at another contracting partys expense. Managers ex post choice can either increase the wealth of all contracting parties or redistribute wealth among the parties. Empirically, it is difficult to separate ex ante from ex post. Contracts are continually being written. , rewritten, and revised. Variations across sets of accepted accounting procedures (e. g. , Al and A2 in Fig. 1) explain some cross-sectional variation in accounting choice (e. g. , managers in firm 2 cannot choose method Xl). For example, Zimmer (1986) argues Australian real estate development firms are restricted by accepted practice from capitalizing interest except for cost plus contracts that allow interest as a cost. His evidence is consistent with that hypothesis. choice studies assume managers choose accounting Most accounting methods to transfer wealth to themselves at the expense of another party to the firm because they can take the firms observed contracts as given and then determine managers incentives for accounting choice. Some research studies assume accounting methods are chosen for efficiency reasons (i. e. , they increase the pie available being shared among all parties to the firm (Watts 1974, 1977; Leftwich Watts and Zimmerman-Positive Accounting Theory 137 Figure 1 Relation Between the Accepted Set of Accounting Methods and the Choice of Method from within the Accepted Set All Feasible Accounting Methods Al X2~~~~ Al A2 X1 X2 denotes denotes denotes denotes the the the the set of accepted methods for firm l set of accepted methods for firm 2 choice of method from within the accepted set by firm 1 choice of method from within the accepted set by firm 2 et al. 1981; Zimmer 1986; Whittred 1987; Ball 1989; Malmquist forthcoming; Mian and Smith forthcoming). However, no study to date has explained both the ex ante choice of the accepted set and the ex post choice of accounting method from within the accepted set. Most studies that assume opportunistic choice of accounting methods do not control for the fact that managers in different firms likely are choosing accounting methods from different constrained accepted sets. The accepted set of accounting methods is one part of the firms implicit and explicit contracts including the firms capital structure, compensation plans, and ownership structure. All the contracting provisions (including the accounting policies) are endogenous. Capital structure choice is related to compensation policy and to accounting policy. But, the relation is not necessarily causal. Capital structure changes do not cause changes in the accepted set of accounting methods. Rather, some exogenous event, such as a new invention or government deregulation occurs and this causes changes in the contracting variables including accounting methods (Ball 1972; Smith and Watts 1986). 138 Evidence on the Theory The AccountingReview,January 1990 Two types of tests of the theory have been conducted: stock price tests and accounting choice tests. The stock price tests have been reviewed extensively elsewhere (Foster 1980; Ricks 1982; Holthausen and Leftwich 1983; Lev and Ohlson 1982; Watts and Zimmerman 1986; Bernard 1989). Stock price tests of the theory reveal some price reactions to mandatory accounting changes, especially involving oil and gas accounting (Lys 1984). 7 Stock price studies are probably relatively weak tests of the theory (Watts and Zimmerman 1986). The more promising ones are accounting choice studies. Most accounting choice studies attempt to explain the choice of a single accounting method (e. g. the choice of depreciation) instead of the choice of combinations of accounting methods. Focusing on a single accounting method reduces the power of the tests since managers are concerned with how the combination of methods affects earnings instead of the effect on just one particular accounting method (Zmijewski and Hagerman 1981). Some studies seek to explain accounting accruals (the difference between operatin g cash flows and earnings). Accounting accruals aggregate into a single measure the net effect of all accounting choices (Healy 1985; DeAngelo 1986, 1988a; Liberty and Zimmerman 1986). But use of accruals as a summary measure of accounting choice suffers from a lack of control of what accruals would be without managerial accounting discretion. Most accounting choice studies use combinations of three sets of variables: variables representing the managers incentives to choose accounting methods under bonus plans, debt contracts, and the political process. Bonus plan and debt contract variables are used because theyre observable. The three particular hypotheses most frequently tested are the bonus plan hypothesis, the debt/ equity hypothesis, and the political cost hypothesis. The literature has tended to The state each of these hypotheses as managers behaving opportunistically. are more likely bonus plan hypothesis is that managers of firms with bonus plans to use accounting methods that increase current period reported income. Such selection will presumably increase the present value of bonuses if the compensation committee of the board of directors does not adjust for the method chosen. The choice studies to date find results generally consistent with the bonus plan hypothesis (Watts and Zimmerman 1986, chap. 11; Christie forthcoming). Using Lys own calculations, Frost and Bernard (1989, 20) and Bernard (1989, 14) conclude Lys evidence is inconsistent with a link between stock price reactions to mandated oil and gas accounting and the violation of debt covenants. However, that conclusion is unwarranted. Lys estimates the average cost of violations as 2. 5 percent of the stock value, the same order of magnitude as the stock price reactions observed. Fros t and Bernard argue that given an average cost of violation of 2. 5 percent, the average stock price reaction should be much less since according to Foster (1980) very few firms have a debt covenant violation as result of the mandated accounting change. There are at least three problems with the Frost and Bernard argument. First, the Lys point estimates are likely to have large standard errors. Second, to obtain an estimate of the stock price reaction, the estimated cost of a violation has to be weighted not by the relative frequency of violation but by the change in the likelihood of violation. While few firms violated covenants, many firms probability of violation likely increased substantially. Third, Malmquist (forthcoming) suggests Fosters description of oil and gas firms covenants is incorrect. Frost and Bernard (1989) also use their own empirical studys results to argue that there is no link between the stock price reaction and debt covenants. Because of selection biases, however, their study provides little evidence on the issue (Begley forthcoming). Watts and Zimmerman-Positive Accounting Theory 139 The early tests of the bonus hypothesis are not very powerful tests of the theory because they rely on simplifications of the theory that are not appropriate in many cases. For example, a bonus plan does not always give managers incentives to increase earnings. If, in the absence of accounting changes, earnings are below the minimum level required for payment of a bonus, managers have incentive to reduce earnings this year because no bonuses are likely paid. Taking such an earnings bath increases expected profits and bonuses in future years. By using bonus plan details to identify situations where managers are expected to reduce earnings, Healys (1985) tests encompass more kinds of manipulation. His results are consistent with managers manipulating net accruals to affect their bonuses. The debt/equity hypothesis predicts the higher the firms debt/equity ratio, the more likely managers use accounting methods that increase income. The higher the debt/equity ratio, the closer (i. e. , tighter) the firm is to the constraints in the debt covenants (Kalay 1982). The tighter the covenant constraint, the greater the probability of a covenant violation and of incurring costs from technical default. Managers exercising discretion by choosing income increasing accounting methods relax debt constraints and reduce the costs of technical default. The evidence is generally consistent with the debt/equity hypothesis. The higher firms debt/equity ratios, the more likely managers choose income increasing methods. Press and Weintrop (forthcoming) and Duke and Hunt (forthcoming) find that debt/equity ratios are correlated with closeness to bond covenants as assumed in the debt/equity hypothesis. 9 Some studies, however, have avoided using the debt/equity ratio as a proxy variable for closeness to the covenant constraint by using more direct tests. For example, Bowen et al. (1981) examine whether accounting choice varies with tightness of the dividend constraint as specified in the debt covenant and measured by unrestricted retained earnings. The association between leverage and accounting method choice is an empirical regularity unknown prior to the positive accounting studies. The political cost hypothesis predicts that large firms rather than small firms are more likely to use accounting choices that reduce reported profits. Size is a proxy variable for political attention. Underlying this hypothesis is the assumption that it is costly for individuals to become informed about whether accounting profits really represent monopoly profits and to contract with others in the political process to enact laws and regulations that enhance their welfare. Thus, rational individuals are less than fully informed. The political process is no different from the market process in that respect. Given the cost of information and monitoring, managers have incentive to exercise discretion over accounting profits and the parties in the political process settle for a rational amount of ex post opportunism. of no association between 8 Holthausen (1981) and Healy (1985) fail to reject the null hypothesis leverage and accounting method choice (see Christie forthcoming, table 1). etween how close the firm is to a given covenant con9 Researchers are beginning to distinguish straint versus the existence of the covenant. For example, Press and Weintrop (forthcoming) find the existence of a covenant has additional explanatory power in a model predicting accounting choice after including a leverage variable. 140 The Accounting Review, January 1990 The evidence is consistent with the political cost hypothesis. However, the result only appears to hold for the largest firms (Zmijewski and Hagerman 1981) and is driven by the oil and gas industry (Zimmerman 1983). Difficulties with using firm size to proxy for political costs, including the likelihood that it can proxy for many other effects, such as industry membership, are discussed in Ball and Foster (1982). The interesting finding is the consistency of the sign of the relation between size and accounting choice across a variety of studies. The largest firms tend to use income decreasing accounting methods. Presently, there is no alternative theory for the empirical regularity between firm size and accounting choice other than the political cost hypothesis. Bonus plan, debt contract, and political process variables other than bonus plan existence, leverage, and size have also been found to be associated with accounting choice. Christie (forthcoming) aggregates test statistics across the various studies and concludes . . . six variables common to more than one study have explanatory power. These variables are managerial compensation, leverage, size, risk, and interest coverage and dividend constraints. Another conclusion is that the posterior probability that the theory taken as a whole has explanatory power is close to one. While bonus, debt, and political process variables tend to be statistically significant (p-values smaller than . 10), in many studies the explanatory power (RI ) of the models is low. In Zmijewski and Hagerman (1981), the model of crosssectional choice of accounting methods is not significantly better than picking although Press and Weintrop (forthcoming) the most common combination, achieve slightly improved explana tory power. The alternative predictive model is that each firm uses the most common combination of accounting methods, a model with little explanatory appeal. The alternative model begs the question of what determines the majority accounting choice. Many accounting teachers would be uncomfortable with the explanation that managers choose their accounting procedures based on what most other firms are doing. The real issue is the lack of an alternative model with grea

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The Situation of Palestinian Refugees - Research Paper Example The state of the Palestinian refugees has been extremely politically charged with no nation ever giving them citizenship and has therefore resulted in a second generation of refugees. As seen below the solution to this fifty-year problem is not a simple one. The history of Palestinian refugees can be traced back to 1948 during the period of the Israel–Arab war. The nation of Israel had been approved by the United Nation through a vote but was strongly voted against by the Arab community. This resulted in the Arab Israeli war which Israel won and thus expelled the majority Arab community that had lived in the area resulting in the original refugees. The Israel government has however never accepted that they expelled any Arabs insisting instead that they voluntarily fled the areas. This discrepancy in the origin story of the refugees is one of the problems that they face as no government has accepted responsibility over their plight (Morris 20). There is however documented proof that Muslims were expelled from the area however they were allowed to take their property as they left. Villagers in areas such as Samara and Nuqeib were pushed to move out of their villages through marginalization by the police and were also encouraged through economic incentives to move to Syria (Morris 513). The United Nation Relief and Works Agency (UNRWA) began to focus on the plight of the Palestine refugees from 1950 estimating the refugees to be seven hundred thousand when they were expelled from Israel. Their attempts in the beginning were towards a possible reintegration of the refugees in other parts of the Arab world including Lebanon and Egypt. This however failed as the governments and the locals did not support the move. UNRWA thus focused on improving the living standards of refugees in Palestine and offered basic education and sanitation services. The UN was the only body that did put effort in improving the refugee situation with middle eastern nations stating tha t the refugees should go back to reintegrate with modern Israel (Milagny 80). The nation of Egypt was a prosperous nation in the 1940s – 1950s the nation had opened the Suez Canal and benefitted from the cotton trade to become one of the more prosperous nations in Africa. The wealthy Palestinians who arrived first were able to get themselves good housing in the more serene areas of Egypt through both legal and illegal means but the poor Palestines had to contend with living in the camps. Egypt was itself struggling with its overpopulation problem and so decided it would be better if a portion of the population would remain in Gaza which Egypt controlled and with themselves financing its upkeep (Oroub 40). The Egyptian government did not however respond positively to the new immigrants and enacted policies that prevented them from getting jobs and also prevented them from working altogether. The prevention from sources of income meant that even the wealthy Palestinians were so on unable to have a source of income and lost whatever savings they had. Egypt ensured that the Gaza strip was constantly under strict military rule while Jordan did the same with West Bank where it assisted with security. It wasn’t until in 1967 when Israel took control of the Gaza strip that the situation in it improved considerably (Oroub 41). These policies led to increased crime committed in Egypt by Palestinians for economic reasons and just as many were jailed for these atrocities. The hostility shown by the Syrian government towards the refugees and the hostility that the Arab world has shown to the Jewish

Elements of Design in the film 300 Essay Example | Topics and Well Written Essays - 750 words

Elements of Design in the film 300 - Essay Example This paper is a literature review of the film is called 300. This is an American fantasy action film that was released in the year 2006. The film is based on a 1998 comic series also named 300 by an author called Frank Miller. The film is revolves around the story of the battle of Thermopyle. There were many artists who were involved in the film’s production. These artists include the director, the production designer and also the art director.The director of the film was Zack Synder. Zack Synder was hired to direct the film especially so because earlier before, he had attempted to produce a film that was based on Miller’s novel. His main role was the planning and directing of the film ensuring that the shooting went smoothly. At some point in the production of the film, he photocopied panels from the original comic book then used this to plan the preceding and succeeding shots. The production designers of the film included; Gianni Nunnari, Frank Miller, Mark Canton and Jeffrey Silver. Their main role in the film was to acquire the film rights of the movie then proceeds to produce it. Frank miller acted as the consultant and the executive producer in the film production since the whole idea of the film revolved around his novel. Hence his output and opinions were highly sorted. Michael Gordon is the one whose task was to write the film script. The art directors of the film were Shaun Smith and Mark Rappaport. Their main task was the designing of the different look of every individual character in the set. They also designed and produced the prosthetics, the props, the weapons and also the dummy bodies needed for the production. The film was shot indoors against a blue screen. The cinematographer was Larry Fong and he devised an efficient and effective method of integrating overhead and key lighting which made it easy to do faster and more efficient shooting. This method made it easy for the perspective to change by simply turning and reversing the lighting. This was made easier because all the lights were pre-mounted hence all one had to do was just to flip a switch. The film producers choose the blue screen over the green screen because the film has a lot of red. The problem with the green screen was that there is bound to be production of a yellow edge when one has saturated red on the green screen. The amount of light bouncing back off the blue screen is different from that of the green screen. More light bounces off the green screen than the blue screen. This results in the production of a screens that are brighter and not suitable for the shooting of the film (Hanson, 2007). The setting of the film is ancient Sparta and the battle site of Thermopylae where the Greeks, the Spartans and their allies were able to hold a large mass of invading Persian army led by their king, Xerxes who was deemed as a god king. The Persians invaded in 480 BC and the 300 Spartans and their allies met the invading Persian armies at the narrow mountain pass of Thermopylae. The pass was wide enough for only one chariot and a few number of warriors at a time, hence the Spartans choose it to hold their ground. The small Spartan army and its allies was led by King Leonidas of Sparta. The Spartan culture was primarily military. the Spartans were completely dedicated to a military life. This was their entire way of life. The Spartans started their training from birth where only the only physically strong babies were allowed to live. The boys were then taught reading and writing which was necessary for their basic needs. Then after that all their time and knowledge was dedicated to training for fighting (Hanson, 2007). The costumes were designed to suit every individual character in the film. The flowing red cape worn by the Spartans was preferred because of ease of movement over the common leather strapped skirts worn by the ancient Spartans. The weapons used were also carefully chosen to fully present the actual weapons used by the ancient Sp

Leadership And Corporate Social Responsibility The Indian Way

Leadership And Corporate Social Responsibility The Indian Way Abstract Indian society has come a long way. Ancient Culture of India is if full of spiritual and ethical values. In those times, Kings and rulers used to refer Upnishads and Vedas to take guidelines for ideal practices and decision making. Today such kingdoms have converted into business empires where business leaders make decisions that impact the business and the society as a whole. As Business organizations play a vital role in the management of demand and supply in the society at one side and provide employment opportunities on the other to allow the people to possess purchasing power, it is therefore, important for them to follow ethical codes and understand their true social responsibilities other than their financial obligations towards shareholders and financers. With this view, this paper explores the changing phases of leadership and social responsibility from kings to current Indian business leaders. May be, it not a fresh thought on this topic but the authors have tried to showcase the current practices followed by various companies to discharge their social responsibilities towards the society. Key Words: Spiritual Leadership; Corporate Social Responsibility; Indian Ethos, Values and Ethics; Leaders in world business are the first true planetary citizens. They have worldwide capability and responsibility; their domains transcend national boundaries. Their decisions affect not just economies, but societies; and not just direct concerns of business, but world problems of poverty, environment, and security. World business will be a key actor in the ultimate resolution of the macro-problem. It crosses national boundaries with much more ease than do political institutions and the business corporation is far more flexible and adaptive organization than the bureaucratic structures of government.  [1]   Willis Harman, author of Global Mind Change The Above statement reflects the growing importance and changing role of business leaders in the society. Business organizations are the essential components of the social system and therefore, with such an influential role there comes a sense of great responsibilities for these business leaders. In the ancient Indian culture, ethics and moral responsibilities defined by the Vedas and scriptures were the guidelines for behavior of leaders and kings who had to play such roles in the management of social and economic systems. Historical Background: From Raj Dharma to Corporate Social Responsibility The ancient Indian folklore and sacred Hindu texts have embodied rules and regulations pertinent to preservation of environment and ecology. They have repeatedly espoused the notion of Dharma (balancing act between own duties and others rights) and Satkarma (good deeds) through various scriptures and texts. Be socially conscientious, dont mischief the nature by your actions, attain the riches through fairer means and compassion for all creatures is the philosophy of the primordial books. Unlike the present day piecemeal and ad hoc approach towards the issue, ancient Indian environment consciousness was holistic in its approach and it sprang from the Upanishadic gospel Vasudhaiva kutumbakam (all the beings of the whole universe belong to the same family). This is echoed in several verses in the Vedas, especially in Upanishads. Some excerpts are- One shall follow the path of righteousness. (Dharmam kara Taittiriya Upanishad i-11) One shall not sin against his neighbor or a foreigner. (Rig Veda Samhita v-85-7) Wealth has to be won by deeds of glory. (Rig Veda Samhita vi-19-10) One shall be led by the fair path to riches. (Vajasaneya Samhita v-36) A man shall strive to win wealth by the righteous path. (Rig Veda Samhita x-31-2) Help others to win wealth. (Rig Veda Samhita iv-50-9) One shall not be selfish and consume all by itself. (Rig Veda Sam x-117-6) Wealth accumulated through 100 hands should be distributed to 1000 hands. (Atharva Veda Samhita iii-24-5) The leader is the distributor of wondrous wealth. (Vajasaneya Samhita xxx-4) Let the rich satisfy the poor with a broader vision. (Rig Veda Samhita x-117-5) One shall produce fair wealth for today and tomorrow. (Rig Veda Samhita vi-71-6) Earth, atmosphere, sky, sun, moon, stars, waters, plants, trees, moving creatures, swimming creatures, creeping creatures all are hailed and offered oblations. (Taittiriya Samhita i-8-13) One should protect the habitation. (Rig Veda Samhita vi-71-3) Air is God (vayu devta) and it shold be free from pollution. (Atharva Veda) Yajna should be performed by everyone to purify the air. (Atharva Veda) One should not destroy the trees. (Rig Veda Samhita vi-48-17) Plants are mothers and Goddesses. (Rig Veda Samhita x-97-4) Trees are homes and mansions. (Rig Veda Samhita x-97-5) Nature has to be protected from mans exploitation (Rig Veda Samhita vii-75-8) Plants and waters are treasures for generations. (Rig Veda Samhita vii-70-4) Waters bear off all defilements and cleanse people. (Vajasaneya Samhita iv-2) Whoever injures the forests and mountains is a robber who sinks both itself and its offspring into destruction. (Rig Veda Samhita vii-104-10) Offerings should be dedicated to waters of wells, pools, clefts, holes, lakes, morasses, ponds, tanks, marshes, rains, rime, streams, rivers and ocean. (Taittiriya Samhita vii-4-13) Waters and herbs should have no poison. (Rig Veda Samhita vi-39-5) Waters are to be freed from defilement. (Atharva Veda Samhita x-5-24) Besides Vedic Samhitas and Upanishadas; 18 Puranas, Shrimad Bhagwat Geeta, the Ramayana, the Mahabharata, Dharmasastras, Arthasastras etc. have also enchanted a lot not only about concern for environment but they have specifically emphasized on Raj Dharma (duties of a king) which pertains to modern days Corporate Social Responsibility. Corporate Social Responsibility is therefore defined as a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. The notion of corporate social responsibility was untainted in terms of philanthropy or charity up till the 1990s. Welfare programs or initiatives were introduced not as a duty or a responsibility but as a form of charity that was supposed to connote the virtues of the big organisations. However the post-liberalization phase has seen a primary shift from this patronage-based model of corporate social responsibility to a stakeholder-participation based model. In the stakeholder model the community in which the corporation is present is seen as a stakeholder in the company and therefore, the company has certain obligation and duties towards it like it has towards its other stakeholders (customers, employees, shareholders). It is a recognition of the fact that companies have to perform in non-financial arenas too, such as human rights, business ethics, environmental policies, corporate contributions, community development, corporate governance, and workplace issues and company should be held accountable for its triple bottom line that includes social and environmental facet and not just the financial performance. The question that arises at this juncture is what the reasons for the shift are in the basic paradigm of corporate social responsibility. Rationale for Corporate Social Responsibility Successful corporations need a healthy society. This is widely divergent from the perspective of corporate social responsibility in Western economies as well. Reflected in the observation by Arthur Page, vice president of public relations at ATT for around 20 years and former advisor to the US President:à ¢Ã¢â€š ¬Ã‚ ¦ all business in a democratic country begins with public permission and exists by public approval à ¢Ã¢â€š ¬Ã‚ ¦ Priority of business is getting widened from 4 P to 7 Ps by inclusion of People and Planet with Profit. Short-term, charity-based welfare interventions are being replaced by long-term, empowerment-based Corporate Social Responsibility (CSR). Based on the realization, Business cannot succeed in a society that fails, CSR is being considered as an imperative for carrying on business in the society rather than as a charity. Broadly speaking, advocates of CSR have used four arguments to make their case: moral obligation, sustainability, license to operate, and reputation. Business is the element of society, which is operating with the societal resources (land, labour, material) and is providing the output to the society. Therefore society is vital for survival of business enterprise. CSR is an essential starting point in understanding why a new approach is needed to integrating social considerations more effectively into core business operations and strategy. Recognition of the importance of reputation capital for capturing and sustaining markets. Therefore corporate social responsibility is basically a new business strategy to reduce investment risks and maximize profits by taking all the key stakeholders into confidence. The significance of eco-social stability i.e. social and environmental stability and sustainability is necessary for the survival of an enterprise in the long run. The importance being attached to accountability and transparency as the key aspects of corporate governance. Education, health care, and equal opportunity are vital to a prolific workforce which is the very foundation of business unit. Safe products and good working conditions lower the internal costs of accidents and increase the efficiency of employees. Efficient utilization of land, water, energy, and other natural resources makes business more productive. Good governance and property rights are indispensable for competence and innovation which is inevitable for extensive survival. Strong regulatory standards protect both consumers and competitive companies from exploitation. Healthy society creates expanding demand for business, as more human needs are met the aspirations grow. It is used as a tool in building blocks between communities and companies. Frugal financial management and good performance increases the shareholder value thereby increasing the dimensions for surplus funds. Concern for customers increases the market share of the company leading to economies of scale and greater profitability. CSR awards and positive CSR ratings amplify the popularity of company between media, public and state. The mutual reliance of corporations and society denotes that both business decisions and social policies must follow the theory of shared value. That is, choices must benefit both sides. If either a business or a society pursues policies that benefit its interests at the expense of the other, it will find itself on a dangerous path. A temporary gain to one will undermine the long-term prosperity of both. CSR interventions therefore- based on commitment, mobilization of employees-voluntarism, innovative approaches, appropriate technology and continuing partnership -can make lasting differences in the life of the disadvantaged. Further, synergy of corporate action with the government can make the CSR interventions more effective and facilitating the corporate carrying on business in the society. Key Areas of Corporate Social Responsibility From philanthropic concept, social welfare activities have taken the shape of a full-fledged discipline. Corporate governance has also become the part of corporate social responsibility in todays times. Government is giving various awards to the socially responsible companies. In recent years business organisations are proving themselves as good corporate citizens in the following areas: Shareholders and Government Customers and Marketplace Employees and Workplace Community and Health Environment and Ecology Growth and appreciation of capital Constant focus on innovation Nurturing and developing human capital Promoting local employment Ecological diversity Transparency in financial statements Reasonable and affordable prices Following labour laws Infrastructural support (roads, electricity, telecom, water supply) Biological habitat Strong future prospects After sales services Ensuring employee health and welfare Promoting education through schools, scholarships, sponsorship of education programmes Plantation of trees in the locality Consultancy to government in various policy matters and Use of lobbying Avoid misleading through wrong publicity and advertisements Consistency between work and remuneration Maintaining ecological balance of the local community Sustenance of natural resources Constant efforts for value maximisation Providing information with dangerous products Better career prospects Disease awareness programmes (AIDS, Hepatitis, Dengu, Cancer etc) and family planning Recycling of waste and obsolete material No such practices like insider trading Avoiding unfair trade practices like high sales commission and heavy discounts Job security, provident fund, group insurance, pension, retirement benefits etc. Protecting, supporting and respecting social values, local culture and human rights Greenhouse gas emissions Accountability towards all operations Quality consciousness Promoting conducive environment Ethical research practices (e.g., animal testing, Genetically Modified Organisms) Conservation of wildlife Compliance with laws, regulations and conventions Product and consumer safety Good working conditions Upliftment of weaker and backward sections of the community Non pollution of rivers and water bodies to save water life and poisoning of water Corporate governance Regular supply of goods Promoting safety from accidents Modernisation and development Packaging use and disposal Payment of taxes to government Under weighing and adulteration must be avoided Housing, eating joints and transportation facilities Rehabilitating the population displaced Transportation impacts (congestion, logging roads) Not to indulge in corruption Dealing with customer grievances Crà ¨che facility for women employees Relationships with universities Energy water usage Thus business has to execute number of social tasks, as it is a part of the society. It should be bothered of those who are instrumental in securing its subsistence and survival. However, while doing so two things need to be distinguished to view it as social responsibility of business. First, any such activity is not charity. It means that if any business bestows some amount of money to any hospital or temple or school and college etc., it is not to be considered as discharge of social responsibility. Secondly, any such activity should not be that it is noble for some sections and dire for others. Social responsibility implies that a corporation should not do anything detrimental to the society in course of its business activities. Therefore, the concept of corporate social responsibility dampens businessmen from adopting unfair means. Instead, it persuades them to make yield through judicious administration of the business, by providing healthier working and living conditions to its personnel, providing superior products, after sales-service, etc. to its customers and concurrently to control pollution and conserve natural resources. Corporate Social Responsibility Initiatives by Indian Companies Even much before the issue became a global concern, India was aware of corporate social responsibility, due to its deep religious roots and the efforts of organisations like the Tata and Birla Group. The corporations have moved away from the charity and are focussing on initiatives that are people-centric that would make a real difference in the target communities. Following are the niceties of CSR activities undertaken by topmost Indian companies. Corporate Social Responsibility programmes at the Tata group of companies extend across a wide spectrum including rural development, community development and social welfare, family initiatives, tribal development and water management. About 7000 villages around Jamshedpur and Orissa benefit from development programmes run by the Tata Steel Rural Development Society (TSRDS). Programmes of TSRDS cover issues like education, irrigation, afforestation, adult literacy, vocational training, handicrafts and rehabilitation of the handicapped persons. The Community Development and Social Welfare Department (CDSW) at Tata steel carries out medical and health programmes, blood donation drives, mass screening of Tuberculosis patients immunization camps and drug de-addiction. In 1999, Tata Steel embarked on an AIDS awareness programme, which has now become an integral part of all training programmes. Tata Steels Centre for Family Initiatives (CFI) was successful in influencing 59 per cent of Jam shedpurs eligible couples practicing family planning, compared to the national figure of 35 per cent. To build upon this heritage the Tata Council for Community Initiatives (TCCI) has created the Tata Guidelines on Community Development, an effort of over three years from the field evolved into a framework of best practices. Infosys is actively involved in various community development programs. Infosys promoted, in 1996, the Infosys Foundation as a not-for-profit trust to which it contributes up to 1%PAT every year. Additionally, the Education and Research Department (ER) at Infosys also works with employee volunteers on community development projects. They have taken initiatives to work in the areas of research and education, community service, rural reach programme, employment, welfare activities undertaken by the Infosys Foundation, healthcare for the poor, education and arts culture. Their CSR team has been distributing books and stationery to underprivileged children across Karnataka since 2001. Infosys also manages a dedicated intranet portal to help employees support education of the children of our housekeeping and security staff. In 2009, 1,500 members contributed approximately Rs. 14, 00,000 to support more than 370 students. Also meritorious students were awarded for their performance. The Birla group of companies is also among the pioneers in the field of corporate social responsibility in India. As part of the Aditya Vikram Birla Groups Social Reach, the Birla group runs as many as 15 hospitals in India; includes adult education and schools conducting as many as 78 schools all over India; rehabilitates handicapped persons having touched more than 5000 physically challenged individuals. More than 1,00,000 patients have been examined under the Groups medical programmes. Over 15,000 children along with 2000 pregnant women have been immunized, over 500 cataract patients operated, 2000 TB patients provided medical care, 100 leprosy-afflicted attended to, free of cost. It also provides Vocational Training, having provided training to over 3000 women and having distributed over 1400 tool kits in a variety of areas like electrical, auto repair, electronic equipment maintenance and repair and tailoring. It has adopted several villages under its Village Infrastructure Deve lopment programme and has provided extensive training to over 10,000 villagers in its Carpet Weaving Center. Lupin India Ltd, Indias third largest manufacturer of pharmaceuticals has started a project for providing sustainable development in 154 villages across Rajasthan. The scheme instead of providing for piece-meal assistance that does not lead to effective alleviation of poverty or adequate development is designed as a holistic action plan that includes an Agricultural Income Generation Scheme, land cultivation and fruit plantation programs, fodder preservation schemes, sericulture and water-recycling programs, establishment of medical and educational centres, adult literacy programs and credit schemes. ITCs initiatives are not only praiseworthy but innovative in this regard. ITC partnered the Indian farmers for close to a century. It is now engaged in elevating this partnership to a new paradigm by leveraging information technology through its trailblazing e-Choupal initiative. ITC is significantly widening its farmer partnerships to embrace a host of value-adding activities: creating livelihoods by helping poor tribals make their wastelands productive; investing in rainwater harvesting to bring much-needed irrigation to parched drylands; empowering rural women by helping them evolve into entrepreneurs; and providing infrastructural support to make schools exciting for village children. Through these rural partnerships, ITC touches the lives of nearly 3 million villagers across India. Cipla, another Indian pharma major has found a novel approach to fulfil its corporate social responsibility obligations by offering to sell a cocktail of three anti-HIV drugs, Stavudine, Lamivudine and Nevirapine, to the Nobel Prize-winning voluntary agency Medicine Sans Frontieres (MSF) at a rate of $350, and at $600 per patient per year to other NGOs over the world. This offer has to lead to an significant decrease in the prices of these drugs worldwide increasing the accessibility of these drugs especially in the developing countries. Cipla also donates several million rupees every year to the Cipla Cancer and AIDS Foundation for the cancer and AIDS patients. Mahindra and Mahindra dedicates 1% of its profit (after tax), on a continuous basis towards Corporate Social Responsibility. A unique kind of ESOPs Employee Social Options was launched to enable Mahindra employees to involve themselves in socially responsible activities of their choice. The Group also announced a special gift: to provide free cochlear (hearing loss solutions) implants to 60 profoundly hearing-impaired, under-privileged children. In addition to giving impetus to the Nanhi Kali project for the girl child and the Mahindra All India Talent Scholarship for the economically disadvantaged, the Mahindra Group has also set up Mahindra Pride Schools. These schools are offering a variety of courses, with an emphasis on employability, including training for information technology, retail, automotive engineering etc. They are supposed to provide new skills and capabilities to the weaker sections of society, particularly the scheduled castes and scheduled tribe youth. Similar commitment to CSR has been displayed by other corporates in India. The list, which at best can be far from complete, includes Arvind Mills, Escorts, Dabur, Bajaj, Godrej, Hero Honda, DCM Sriram, Ashok Leyland, Ballarpur Industries, Eicher, Kinetic Group, Kirloskar, Reliance, Ranbaxy, Wipro, each of these has been deeply committed to their communities engaging in programmes encompassing education, health, education, integrated rural development. Beyond the private sector, corporate players in Indias public sector too have been actively involved in corporate social responsibility initiatives. The Indian public sector has had a long tradition of corporate social responsibility and the initiatives of corporations like the Oil and Natural Gas Corporation (ONGC), Steel Authority of India Ltd. (SAIL) and Gas Authority of India Ltd. (GAIL) have been remarkable in the development of several backward regions of the country. Indian Airlines and Bharat Heavy Electronics Ltd. (BHEL) have been widely acclaimed for their disaster management efforts. Most public sector units in the heavy engineering industry have not only set up townships around the plant, but also established schools, hospitals and several other civic facilities for their employees and those that live in that area. Several organizations have introduced benchmarking exercises for their CSR activities and industry bodies like Confederation of Indian Industries (CII) and Fed eration of Indian Chambers of Commerce and Industry (FICCI) have introduced cross-sectoral programs in CSR related areas. Future Outlook: Strategic Corporate Social Responsibility The new economic era embarked the total renovation in CSR related practices in the country. The change was two fold: makeover of the conceptual understanding of corporate social responsibility and innovations at the implementation level. At the abstract level, there is a fundamental transformation from the charity-oriented approach to the stakeholder-oriented approach where stakeholders are seen as target group whose well-being is integral to the long term success of the corporation. The real revolution is experienced at the implementation stages where companies have started committing other resources in addition to financial ones so as to provide a host of services, programs and schemes catering to the needs of the intended community. The CSR initiatives have also seen greater participation and rigid accountability standards. The issue of norms for corporate social responsibility seems to have been adequately dealt with by industry practices like benchmarking, CSR ratings and certif ication by different agencies. While the performance of the honchos seems satisfactory, there is fierce debate on the social role of the MNCs and small companies. The social concern in these companies is too little and whatever miniscule they are performing it is only for fulfilling obligation and keeping records. MNCs are rather found to be engaged in unethical and unfair business practices as well. Corporations escape from CSR by counting on the hurdles like: Lack of interest of the local community in participating and contributing to CSR activities of companies. No awareness and confidence in the local communities about CSR initiatives. Dearth of trained and efficient organisations that can effectively contribute to the ongoing CSR activities initiated by companies. Lack of transparency on the part of the local implementing agencies. Non-availability of statutory CSR guidelines, the scale of CSR initiatives of companies should depend upon their business size and profile; bigger the company, larger its CSR programme. Narrow outlook towards the CSR initiatives. CSR initiatives are viewed as donor-driven than local in approach Strategic approach to Corporate Social Responsibility is the pathway to all these hurdles and lack of interest in CSR activities. Strategic CSR is all about integrating the societal issues into the core business strategies to gain competitive advantage. While practising Strategic CSR corporates have to identify the on-going social setbacks and have to invest in them so as to strengthen their competitiveness. The success of the company and the success of the community become mutually reinforcing therefore. Characteristically, the more closely tied a social issue is to the companys business, the greater is opportunity to utilise the firms resources and capabilities, and benefit society. For any company, strategy must go beyond best practices. It is about choosing a unique position-doing things differently from competitors in a way that lowers costs or better serves a particular set of customer needs. These principles apply to a companys relationship to society as readily as to its relationship to its customers and rivals. Strategic CSR moves beyond good corporate citizenship and mitigating harmful value chain impacts to mount a small number of initiatives whose social and business benefits are large and distinctive. Strategic CSR involves both inside-out and outside-in dimensions working in tandem. Many opportunities to pioneer innovations to benefit both society and a companys own competitiveness can arise in the product offering. Citing the examples from west. Toyotas early response to public concern about auto emissions gave rise to the offering Prius. Toyotas Prius, the hybrid electric/gasoline vehicle, is the first in a series of innovative car models that have produced competitive advantage and environmental benefits. Hybrid engines emit as little as 10% of the harmful pollutants as compared to conventional vehicles. The Prius has not only significantly reduced pollutants; it has given Toyota an enviable front over rivals in hybrid technology. Toyota has created a unique position with customers and is well on its way to establishing its technology as the world standard. Urbi, a Mexican construction company, has prospered by building housing for disadvantaged buyers using novel financing vehicles such as flexible mortgage payments made through payroll deductions. It engages in purchasing land, and designing, building, marketing, and selling housing developments for the low- and middle-income and residential markets in Mexico. Crà ©dit Agricole, Frances largest bank has differentiated itself by offering specialized financial products related to the environment, such as financing packages for energy-saving home improvements,  energy-saving loans, support to organic farming, financing for renewable energy etc. conducting audits to quantify their carbon emissions   and to certify farms as organic. They also sponsor projects to restore and conserve the treasures of Frances regions, projects to renovate historic sites, buildings and religious edifices in France. To penetrate Indian market, Nestle required establishing local supply of milk from a large, diversified base of small farmers. It obtained government permission to erect a dairy in Moga (Punjab). But there, farmers were impoverished, death rate in calves were high, and lack of refrigeration vetoed farmers from distributing milk and keeping it fresh. Nestle erected refrigerated dairies as milk assortment points and sent its trucks to the dairies to collect the milk. With the trucks went veterinarians, nutritionists, agronomists, and quality assurance experts. Farmers learned that milk quality centred on adequate feed crop irrigation. With financing and technical assistance from Nestle, farmers dug deep-bore wells. The ensuing improved irrigation reduced calves fatality rate 75%, amplified milk production 50-fold, and allowed Nestle to compensate higher prices to farmers than those set by the government. With steady revenues, farmers could now obtain credit. Mogas standard of living im proved with supply of electricity and telephones; primary, secondary, and high schools; and adequate medical facilities. Meanwhile, Nestle gained a stable supply of high quality commodities-without having to pay middlemen-and saw demand for its products increase in India. Above are few illustrations to reckon but their approach and practices are commendable and well known. Hence, by identifying crossroads between own company and society, selecting social problems to address and endowing small number of initiatives can generate large and distinctive benefits for society and business unit. If approached strategically, CSR can be much more than just a

A seperate piece :: Essays Papers

A seperate piece A Separate Peace by John Knowls Is a classic struggle of man vs. himself and man vs. society. Taking place as a flashback, the narrator Gene Forrester tells of his struggles as a prep school student in the years of his life between age 16, and 17 during the period of WWII. Although Gene Forester the narrator and Finny an athletic roommate are best friends, they have to contrasting struggles. Like the garden of Eden the first few chapters express the peacefulness of the summer at the Private school in New England and the land beneath the forbidden tree. Like the Book Billy Budd by Herman Melville, A Separate Peace identifies some of the characters as innocent to the world. Gene expresses what peace is like by saying "sixteen, careless and wild" and "Phineas was the essence of this careless peace." Gene Forrester returns to visit the school and a tree in the book and represent him returning to some of the traumatic events in his life. Gene had always conformed to rules and followed rules and regulations with obedience. Throughout time this changes, as the influence of Finny lowers Genes obedience to such things. The wars within Gene are disputed as well as the wars outside and the novel expresses the acceptance and rejecting of these aspects. The struggles to create a better more Ideal life for himself occurs, and his belief that Finny is the ideal does not diminish until Finny no longer can stand on his own. The complete contrast of Finny and Gene is a boy named Leper. Leper was not interested in much and is the first of the boys mentioned to go to war. Leper introduces the boys into the adult world before entering the army. His freedom is ended by the strict rules and behaviors of the army and he then changes severely. Throughout the novel arises the symbol of the tree which has it’s part in the many conflicts each character faces. The sequence of events involving the tree are the challenge of climbing the tree, victory over fear and the betrayal of a friend. This book shows the struggles conflicts and changes of a growing boy in society.

Kurt Vonnegut’s Slaughterhouse Five

Kurt Vonnegut has written something that has captured the imagination of generations. His novel is entitled â€Å"Slaughterhouse Five.† This novel has put into use what the literary world call as dark comedy, also known as black comedy. Dark comedy is basically a sub-genre of comedy that has satirical elements. This sub-genre typically tackles serious topics like death, war, rape, and the likes with wit and humor. I have selected three scenes of which Kurt Vonnegut displayed his talent in using dark comedy to hook his readers. The first scene that I’ve picked is that where the arguable protagonists Billy Pilgrim and the unlovable fat soldier Roland Weary were captured by enemy troops. Those enemy troops who had captured them were not regulars. They were merely using equipment collected from dead soldiers. When the novel was first read by the public, they could have just thought that this was fiction. Maybe they weren’t aware that this is a reality in war. Equipment from the dead is considered free rations since there will always be shortages in wars. What the author had done here is that with all the dark comedy packed into this novel, he had squeezed in bits of reality. The dark comedy there is that as readers we were caught off guard that we were already laughing at something that is brutally happening in reality. It could also be that the author is in favor of stripping the dead off their possessions since those things would only be beneficial to those who are still alive. The next dark scene that I’ve picked is where the Valencia, the overweight wife of the arguable protagonist Billy Pilgrim, died because of carbon monoxide poisoning. She was already on her way to see his husband. Then the unfortunate happened, or Kurt Vonnegut’s dark comedy made it happen, she died of carbon monoxide poisoning inside her car. The author had constructed the scene as if the death of Valencia didn’t invoke sad emotion at all. Again, I believe that the function of this is to show what is happening in reality. We don’t need statistics to prove that there are countless wives out there who are left by their unfaithful husbands. But then, this dark humor could also be targeted to those who have eating and weight issues. The author may have wanted to show that most overweight bring the problem upon themselves because just like Valencia, they can’t stop eating. This could be the author’s answer to why are there such a number of miserable people in this planet. It is because we cause our own problems. The last dark scene that I have chosen is when the prisoners of war were assigned to the dreadful task of digging up the graves for a lot of dead bodies after the town of Dresden was bombed. It was such an awful sight that one of those who were digging the graves threw up from the bad smell. He threw up so bad that he died. Again, there is no word that can perfectly describe the scene than dark comedy. The author had beautifully used the elements of dark humor, wit and irony. It is such an irony that the ‘dead’ is in a sense free from the toils of being alive and stuck in a war. That scene also shows that people can be pushed to do even the things that they won’t imagine themselves doing. Anyone will succumb when there is a gun pointed to you and your loved one’s. All in all, the author had used dark comedy as a hook that has kept his readers turning the pages. Dark comedy also evokes a certain weird combination of the effects of entertainment and disgust. Work Cited Vonnegut, K. Jr. Vonnegut, J. Slaughterhouse Five. NY: Tandem Classic Books. 1999.

HRM in a Changing Environment: The Challenges Essay

Today’s organizations are facing challenges upon following levels: i. Environmental Challenges ii. Organizational Challenges iii. Individual Challenges i. Environmental Challenges Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. They include: rapid change, the internet revolution, workforce diversity, globalization, legislation, evolving work and family roles, and skill shortages and the rise of the service sector. Six important environmental challenges today are: a) Rapid change, b) Work force diversity, c) Globalization, d) Legislation, e) Technology f) Evolving work and family roles, g) Skill shortages and the rise of the service sector a) Rapid Change Many organizations face a volatile environment in which change is nearly constant. If they are to survive and prosper, they need to adapt to change quickly and effectively. Human resources are almost always at the heart of an effective response system. Here are a few examples of how HR policies can help or hinder a firm grappling with external change: b) Work Force Diversity. All these trends present both a significant challenge and a real opportunity for managers. Firms that formulate and implement HR strategies that capitalize on employee diversity are more likely to survive and prosper. c) Globalization. One of the most dramatic challenges facing as they enter the twenty-first century is how to compete against foreign firms, both domestically and abroad. Many companies are already being compelled to think globally, something that doesn’t come easily to firms long accustomed to doing business in a large and expanding domestic market with minimal foreign competition. Weak response to international competition may be resulting in upwards layoffs in every year. Human resources can play a critical role in a business’s ability to compete head-to-head with foreign producers. The implications of a global economy on human resource management are many. Here are a few examples: Worldwide company culture Some firms try to develop a global company identity to smooth over cultural differences between domestic employees and those in international operations. Minimizing these differences increases cooperation and can have a strong impact on the bottom line. For instance, the head of human resources at the European division of Colgate Palmolive notes, â€Å"We try to build a common corporate culture. We want them all to be Colgaters.† Global alliances† Some firms actively engage in international alliances with foreign firms or acquire companies overseas to take advantage of global markets. Making such alliances work requires a highly trained and devoted staff. For instance, Phillips (a Netherlands lighting and electronics firm) became the largest lighting manufacturer in the world by establishing a joint venture with AT&T and making several key acquisitions. These illustrations show how firms can use HR strategies to gain a worldwide competitive advantage. d) Legislation Much of the growth in the HR function over the past three decades may be attributed to its crucial role in keeping the company out of trouble with the law. Most firms are deeply concerned with potential liability resulting from personnel decisions that may violate laws enacted by the state legislatures, and/or local governments. These laws are constantly interpreted in thousands of cases brought before government agencies, federal courts, state courts, and t Supreme Court. How successfully a firm manages its human resources depends to a large extent on its ability to deal effectively with government regulations. Operating within the legal framework requires keeping track of the external legal environment and developing internal systems (for example, supervisory training and grievance procedures) to ensure compliance and minimize complaints. Many firms are now developing formal policies on sexual harassment and establishing internal administrative channels to deal with alleged incidents before employees feel the need to file a lawsuit. Legislation often has a differential impact on public- and private sector organizations. (Public sector is another term for governmental agencies; private sector refers to all other types of organizations.) Some legislation applies only to public-sector organizations. For instance, affirmative action requirements are typically limited to public organizations and to organizations that do contract work for them. However, much legislation applies to both public- and private sector organizations. In fact, it’s difficult to think of any HR practices that are not influenced by government regulations. e) Technology The world has never before seen such rapid technological changes as are presently occurring in the computer and telecommunications industries. One estimate is that technological change is occurring so rapidly that individuals may have to change their entire skills three or four times in their career. The advances being made, affect every area of a business including human resource management. f) Evolving Work and Family Roles The proportion of dual-career families, in which both wife and husband (or both members of a couple) work, is increasing every year. Unfortunately, women face the double burden of working at home and on the job, devoting 42 hours per week on average to the office and an additional 30 hours at home to children. This compares to 43 hours spent working in the office and only 12 hours at home for men. More and more companies are introducing â€Å"family-friendly† programs that give them a competitive advantage in the labor market. These programs are HR tactics that companies use to hire and retain the best-qualified employees, male or female, and they are very likely to payoff. For instance, among the well known organizations / firms, half of all recruits are women, but only 5% of partners are women. Major talent is being wasted as many women drop out after lengthy training because they have decided that the demanding 10- to 12-year partner track requires a total sacrifice of family life. These firms have started to change their policies and are already seeing gains as a result. Different companies have recently begun offering child-care and eldercare referral services as well to facilitate women workers as well as are introducing alternative scheduling to allow employees some flexibility in their work hours. g) Skill Shortages and the Rise of the Service Sector. Expansion of service-sector employment is linked to a number of factors, including changes in consumer tastes and preferences, legal and regulatory changes, advances in science and technology that have eliminated many manufacturing jobs, and changes in the way businesses are organized and managed. Service, technical, and managerial positions that require college degrees will make up half of all manufacturing and service jobs by 2000. Unfortunately, most available workers will be too unskilled to fill those jobs. Even now, many companies complain that the supply of skilled labor is dwindling and that they must provide their employees with basic training to make up for the shortcomings of the public education system. To rectify these shortcomings, companies currently spend large amount year on a wide variety of training programs. HRM in changing environment With the evolution of the study of HRM, it is no more mere an academic discipline rather an important factor of organizational success in the practical field. Today HRM needs to sense, respond and deal with all the issues of the organization at different levels and prove its worth. HRM has to deal with all the challenges that organization faces and these are at the following levels: †¢ Environmental Challenges (Seven) 1. Rapid Change 2. Work Force Diversity 3. Globalization 4. Legislation 5. Technology 6. Evolving Work and Family Roles 7. Skill Shortages and the Rise of the Service Sector †¢ Organizational Challenges (Four) 1. Controlling Costs 2. Improving Quality 3. Creating Distinctive Capabilities 4. Restructuring †¢ Individual Challenges 1. Productivity 2. Empowerment 3. Brain Drain 4. Ethics and Social Responsibility 5. Job Insecurity 6. Matching People and Organizations Research

Free Essays on The Bridle

The Bridle Throughout the story Holits’ character builds and as the story progresses you realize his life revolved around manly one thing, his horse. His horse meant a lot to him even though it was the main reason for his deteriorating life. After Holits lost his horse and farm the one thing he kept in his journey to Arizona was his horses bridle. This bridle symbolized Holits’ love for his horse and the farm life. In the beginning of the story Holits carries the bridle into his new home in Arizona. This shows Holits’ attachment to the bridle and the horse because there are no farms or horses around his new home. â€Å"There’s not much to farm around here . . .† (193). Later in the story you realize that Holits put all his effort and money into that horse, which shows how much that horse meant to him because the horse never won a race. â€Å"The fact is, whenever it ran, it lost. . . But Holits is stubborn if he’s anything. He wouldn’t give up† (199). No matter what the odds Holits would bet on his horse. Holits dedicated his life to that horse and sadly nothing came back to him in return. After Holits had lost almost everything including the horse, he was forced to start a new life in Arizona. Even after the horse made him lose everything, he still kept the memory of the horse close by, with keeping the bridle. However, Holits luck had run o ut again and he was injured forcing him and his family to move a second time and live off his wife’s sister. In the end of the story Marge finds the bridle, it had been left behind by Holits. â€Å"Back in the corner of the drawer I see the bridle he was carrying in when he first came† (208). â€Å"Maybe the man left it on purpose† Marge realizes that Holits maybe wants to start a new life free from the horse and all the troubles it has caused him (208). In conclusion the bridle symbolized Holits’ determination and love for his horse, however in the end he finally ... Free Essays on The Bridle Free Essays on The Bridle The Bridle Throughout the story Holits’ character builds and as the story progresses you realize his life revolved around manly one thing, his horse. His horse meant a lot to him even though it was the main reason for his deteriorating life. After Holits lost his horse and farm the one thing he kept in his journey to Arizona was his horses bridle. This bridle symbolized Holits’ love for his horse and the farm life. In the beginning of the story Holits carries the bridle into his new home in Arizona. This shows Holits’ attachment to the bridle and the horse because there are no farms or horses around his new home. â€Å"There’s not much to farm around here . . .† (193). Later in the story you realize that Holits put all his effort and money into that horse, which shows how much that horse meant to him because the horse never won a race. â€Å"The fact is, whenever it ran, it lost. . . But Holits is stubborn if he’s anything. He wouldn’t give up† (199). No matter what the odds Holits would bet on his horse. Holits dedicated his life to that horse and sadly nothing came back to him in return. After Holits had lost almost everything including the horse, he was forced to start a new life in Arizona. Even after the horse made him lose everything, he still kept the memory of the horse close by, with keeping the bridle. However, Holits luck had run o ut again and he was injured forcing him and his family to move a second time and live off his wife’s sister. In the end of the story Marge finds the bridle, it had been left behind by Holits. â€Å"Back in the corner of the drawer I see the bridle he was carrying in when he first came† (208). â€Å"Maybe the man left it on purpose† Marge realizes that Holits maybe wants to start a new life free from the horse and all the troubles it has caused him (208). In conclusion the bridle symbolized Holits’ determination and love for his horse, however in the end he finally ...

The Development Of Children's Thinking Related To Mathematics Research Paper

The Development Of Children's Thinking Related To Mathematics - Research Paper Example Specifically addressing the cultural disparities, rather than focusing on elements of irrelevant ethnicity or dismissing merely because of socio-economic issues will help to find solutions for the problem as it is restructured for the reasons that these disparities occur, rather than unrelated assumptions (Bodovski & Farkas, 2007). When specifically researched, the disparities due to ethnic diversities, especially between Caucasians and African Americans, the differences can be measured because of the experiences that African American students have in classrooms where they are treated as if they will not learn the information, leaving them in a position where they are not encouraged, are not given adequate attention, nor expected to achieve. The disparities that are observed among children when demographic information is used in regard to ethnicity shows a wide achievement gap between Caucasians and Asians when compared to children who are African American and Latino. Culture, on the other hand, is far more influential than any other aspect of a child's life on how they will approach their education. Research, it appears, has been focused on the wrong criteria for interpreting the data. New information that has been observed for the reasons why children of different ethnicities have different levels of achievement relies on the experiences that children have within their own cultures in regard to learning in combination with the experiences that they have with learning opportunities within the school systems.

Explain Gandhi's contention that external independence (swaraj) Essay

Explain Gandhi's contention that external independence (swaraj) depends upon internal swaraj. Do you think his reasoning is correct why or why not - Essay Example All citizens should enjoy the fruits of their labor and enjoy their human rights and freedoms (Singh 14). Gandhi’s thinking contention that external independence will depend on internal swaraj is correct. First and foremost, self-government ability should depend on internal strengths and ability to resist all odds. Political self-government which is not sustainable is not worth its name and thus external swaraj will be attained by attaining internal swaraj. According to Gandhi, internal swaraj forms the basis of civilization and internal strengths can only be maintained when the masses remain patriotic in achieving the national goals and good which are above any personal considerations such as personal profit. Gandhi is correct to assert that swaraj is an inclusive government but the majority should refrain from selfish and immoral acts since this can only spell anarchy. Internal swaraj is not based on any race or religious affiliations, or controlled by the moneyed men thus all citizens are able to unity and resist external pressures of colonization and achieve external independ ence (Parel 77). Gandhi’s thinking is correct since he clearly asserts that Indian swaraj is not based on any major community such as Hindus but rule of all people thus ensuring justice to all the citizens. Gandhi is correct since civilization should ensure public resources are safeguarded by ensuring morality in all public affairs, private undertaking and public undertakings. Internal swaraj will eliminate all violent acts and unify all the citizens in resisting the heaviest external odds and external control of their nation’s affairs. According to Gandhi, all citizens are entitled to amenities that are enjoyed by moneyed men but they are not necessary for happiness thus self-government should guarantee this amenities to all citizens. Through internal swaraj, Gandhi demonstrates that Indians can attain a healthy and dignified independence and nationalism spirit